Buying a new car.

A place to discuss anything... except credit cards!
54 posts
User avatar
djrez4
Centurion Member
Centurion Member
 
Posts: 1468
Joined: Tue Jul 31, 2012 12:20 pm
Location: United States

Postby djrez4 » Thu Oct 25, 2012 7:12 am

paparoach429 wrote:Also what interest percentage should I plan on paying with about a 700 credit score. My friends mom has a credit score of 598 and at the end of the day shes paying $28,800 for her base chevy hhr!


It can be all over the board, depending on the lender. I [I]almost[/I managed to get PenFed's 1.49% loan, but ended up with 2.89% through Chase. I had offers up to 12% from Wells Fargo. That's why you have to shop around.

If you have a clean Equifax report, PenFed and DCU have some of the lowest rates around.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]


paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Postby paparoach429 » Thu Oct 25, 2012 11:43 pm

AHhh! Only been to one car dealer so far and am already frustrated as high hell. First off the dealer basically told me he cant sell me the car I was interested in because it was an 04' and I wouldnt get financed for it without like 4k down (car is listed at 13k). He tried pursuading me into a new car but I didnt like what they had in my budget.. Is the whole thing true about it being hard to finance a used car because if I didnt pay on it and they repoed it they wouldnt make their money back? I had a dealer tell my friends mom the same exact thing yesturday. Also, its frustrating because the cars I want are rare at dealers. I dont want to go to a private sellers house and waste their time without a bank loan approved yet seeing as I dont have 10-13k dollars cash. I still have to do some research as far as insurance for the 5 cars im interested in and the bank loan situation.

trumpet-205
Centurion Member
Centurion Member
 
Posts: 221
Joined: Sat Oct 23, 2010 1:51 pm
Location: CA, USA

Postby trumpet-205 » Thu Oct 25, 2012 11:58 pm

It is true that used cars are hard to finance. Older the car is, the harder it is to find a loan. The reason behind this is because by the time they repossess the car its value will be already so low that they lose a lot of money.

Generally speaking, you will have trouble getting finance if the car is older than six years.

To get a loan for older car, you need to visit local banks or credit union. Even then most lenders will either turn away or impose harsh term on the loan.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Postby paparoach429 » Fri Oct 26, 2012 1:16 am

So my only hopes of getting that car would be to put like half down?

kcarter609
Centurion Member
Centurion Member
 
Posts: 423
Joined: Thu Aug 09, 2012 7:54 am
Location: VA

Postby kcarter609 » Fri Oct 26, 2012 8:23 am

Don't always believe that. Sometimes they want to push you to a new car because they make more off of it. I'm not saying that's the only reason, but it is part of it. Used cars are harder to finance. Talk to your bank or CU and see what they can offer.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

trumpet-205
Centurion Member
Centurion Member
 
Posts: 221
Joined: Sat Oct 23, 2010 1:51 pm
Location: CA, USA

Postby trumpet-205 » Fri Oct 26, 2012 11:43 am

kcarter609 wrote:Don't always believe that. Sometimes they want to push you to a new car because they make more off of it. I'm not saying that's the only reason, but it is part of it. Used cars are harder to finance. Talk to your bank or CU and see what they can offer.


Actually they usually make more money off used car, unless you are one of those people who walk into the dealership unannounced shopping for a new car.

Generally sales persons are more willingly to slash the price if you request a quote online/phone, even better when you know the invioce price.

But for those people who walk into dealership unannoucned, sales person will negotiate price based on MSRP instead.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)

User avatar
djrez4
Centurion Member
Centurion Member
 
Posts: 1468
Joined: Tue Jul 31, 2012 12:20 pm
Location: United States

Postby djrez4 » Fri Oct 26, 2012 12:30 pm

Also - look up the wholesale price of the car before you look at it. It should give you an idea of what the dealer paid for the car - sort of like the invoice price - and can give you a basis for negotiations. You can estimate the wholesale price by checking the trade-in price of the vehicle on KBB, NADA, or Edmunds.

For my purchase, I wanted to pay about 10% over wholesale. Edmunds, NADA, and KBB gave me wholesale estimates of $21,644, $23,200, and $20,926 respectively, for an average of $21,923. I then looked up the retail prices on each website, which gave me an average of $26,360. That averaged out to a 20.24% markup from wholesale to retail. I took that percentage and estimated the actual wholesale price of the car at the dealer, based on a $26,477 original asking price - $22,020.64. That gave me a base - my "invoice" price.

With all of our negotiations, I ended up at 12.72% over my estimate of wholesale and around $2000 under the NADA estimate. I wouldn't have had the ammo if not for the number crunching.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]

[/RIGHT]

Rory
Centurion Member
Centurion Member
 
Posts: 274
Joined: Sat Aug 04, 2012 10:21 pm
Location: MA

Postby Rory » Fri Oct 26, 2012 3:46 pm

have you thought about leasing? It can be actually advantageous if you dont drive that much and you can buy it at the end of the lease for a pre-approved upon price given your estimated mileage. It has happened that what you pay to buy it out from lease is actually less than what it is worth, so you can resell it at a profit.
I would only consider it if you have enough money to cover the increase in insurance and dont live/work in high incident areas. I prefer leasing when possible, just so you can drive a car and really break it in without someone else having spoiled it for you. Also gives you a much better range of possibilities. You can get a variety of decent cars for 99$ a month with good to great credit. Keep it in mind and good luck dealing!
Amex Zync - NPSL (Cleared up to 25k)
Amex BCE - 12000 limit
Amex BCP - 4200 limit
FIA Rewards Amex- 3500 limit
Chase Freedom - 2000 limit
Chase Slate - 2000 Limit
BoA Cash Rewards Privileges- 3000 limit
Barclaycard Rewards MC - 3000 limit
Discover IT- 3500 limit
Marriott PR- 5000 limit
21 years old with alot of life to spend ;)
Its not about the ending, its about the journey,
just as long as the ending is just as good :cool:

paparoach429
Centurion Member
Centurion Member
 
Posts: 331
Joined: Tue Sep 11, 2012 12:21 am
Location: chicago

Postby paparoach429 » Wed Nov 14, 2012 12:15 am

I dont think leasing is for me. I live in Chicago and taking the risks of scratches, dents, stolen etc would worry me. Also the increase in insurance. I just got a quote for the Dodge Srt4 I like and its like 210.00 a month, also the Honda Civic Si for 250.00 a month. I figured I wouldnt feel comfortable getting myself into anything over $500 a month (car payment and insurance). The car right now is still stickered at 13k so for a 4 year loan its $270.00 a month plus the $210.00 a month for insurance leaves me at a total of $480.00 a month. Now I just dont know if 1.) I can get the car price lower. 2.) The car is worth that much. 3.) If I can get one of the other cars that I like for roughly the same price.
Also what really sucks is that I can afford the monthly payments on all these cars its just the insurance thats going to rape me. How does insurance work? For example The quote i recieved was for a 2004 Dodge srt4 with 58,000 miles. Would the insurance be roughly the same for a 2005 with the same mileage. Would it be less for a 2003 with the same or higher milage. All these little tips are going to help me so I dont have to keep going back to them and keep getting different quotes for different years and different miles.

trumpet-205
Centurion Member
Centurion Member
 
Posts: 221
Joined: Sat Oct 23, 2010 1:51 pm
Location: CA, USA

Postby trumpet-205 » Wed Nov 14, 2012 1:34 am

I don't recommend leasing because you don't build equity on it. You are essentially spending money on thing that is not yours. Plus there are various restrictions with leasing (don't drive more than xxxx miles, pay maintenance cost, etc).

Insurance rate depends on a lot of things. Your driving record, the car in question, your credit reports, etc.

You really have to do some insurance shopping. Dodge and Chevy can be expensive due to being prone to break down (let's face it, Japanese made car are more reliable). Honda Civic can be expensive due to its popularity (Civic is popular among car thieves). Subaru can be expensive due to its limited supply (law of supply and demand dictates higher value for Subaru).

And if you are interested sports car, they can be expensive since driver are likely to drive fast and have an accident. Car is very old? That can be expensive insurance since it lacks some of modern safety features like stability control.
In My Wallet:
Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)



Return to “The Lounge”

Who is online

Users browsing this forum: No registered users and 2 guests