Car Buying Process

[BCClone]

Some of the statements in here made me think about a couple things.

When you trade vehicles in or sell them, do you mention the issues you have with vehicles? Not saying the obvious dent in the quarterpanel, Im saying, you know the A/C condensor is out and the A/C doesn't work but its winter type of stuff. I always have. Just wondering about others.

 

[CloneFan4]

Didn't have time to read the entire thread, but if CF is known for anything it's giving very sound financial and investment advice.

The dealers used to "steal the trade" and make money that way. With car value info so easily available now it seems like they've changed tactics.

Last car we financed the dealer tried to bump up the rate a few times. Finally had to tell the kid that if he moves me off of 1.9% again that he will have an unhappy customer.

(They also dropped the rate a full point when I showed up. I'm SURE that wasnt because a man came into the picture)

Was the car you financed through the dealer a new or used car? Do they give better rates if you buy new over used?

 

[dmclone]

Was the car you financed through the dealer a new or used car? Do they give better rates if you buy new over used?

I wouldn't let financing alone decide on whether to buy a new or used car. If you get a 3 year loan for $20k the difference between 0 and 4% interest rate is about $1,400 during the life of the loan. A $20k car will lose that in value within 2 seconds of driving off the lot.

 

[CloneFan4]

I wouldn't let financing alone decide on whether to buy a new or used car. If you get a 3 year loan for $20k the difference between 0 and 4% interest rate is about $1,400 during the life of the loan. A $20k car will lose that in value within 2 seconds of driving off the lot.

No of course not. My ears just perked up when I saw that 1.9% rate. Wondering if there is any chance that I will be able to get that rate with my cosigner?

 

[Cyclone.TV]

No of course not. My ears just perked up when I saw that 1.9% rate. Wondering if there is any chance that I will be able to get that rate with my cosigner?

Depends on the dealer. Some makes/models have different incentives right now. But if they are offering it, chances are you’ll qualify for it with a co-signer.

 

[dmclone]

No of course not. My ears just perked up when I saw that 1.9% rate. Wondering if there is any chance that I will be able to get that rate with my cosigner?

Assuming your cosigner has good credit, I don;t see why not. I know Honda is running 0.9% on a few lower priced models for 36 months.

 

[KnappShack]

Was the car you financed through the dealer a new or used car? Do they give better rates if you buy new over used?

It was used. Financed through the dealer. The new and used rates were in line, but I'm not sure if that's always the case.

I do find the certified used cars have a much better warranty. So we always go that route.

I am a guy who doesn't believe in car payments. I've almost always paid in cash. Today's cars are built to last 200,000 miles. So a higher mileage vehicle at a lower price doesn't scare me.

My California wife believes a car payment is mandatory and has been upside down for about a decade because she trades in so quickly

 

[BoxsterCy]

My car I got a great deal on because it was a Honda Accord at a Chevy/Buick dealer in rural Iowa. They took it on a trade and sat on it for six months before I came along. Made the negotiating easy because they could not go lower. Based off of the research I did I got it barely above if at all what they gave for it on trade. That leads to my next point.

Reminds me of my first car. January 1971, below zero in Manchester at the Buick dealership. They had a 1968 MGB on the lot that some guy had actually brought back from Germany when he returned from the army. Got married and traded it for some big Buick. It was winter in rural Iowa and these guys sold Buicks and John Deeres. Nobody within a hundred miles other then me wanted that car. They practically gave us the car. It had 9000 miles on it. I drove it for a while at ISU, then my sister had it at Wartburg for a year and then my dad drove it some. Think when he sold it, maybe three years later, he got more than we paid for it.

 

[BoxsterCy]

I am a guy who doesn't believe in car payments. I've almost always paid in cash. Today's cars are built to last 200,000 miles. So a higher mileage vehicle at a lower price doesn't scare me.

Using your statement (that I generally agree with) to see what people think about that for the current generation of cars. I traded in my 2004 A4 spring of 2016 for a 2015 A5 (managers car with 4k on it). The A4 was still running great (so many of today's motors are bullet proof if maintained properly) and looked great (galvanized body panels without a speck of rust). Was starting to get worried more about all of the electronic gadgetry. Each year things get more and more complex. The current wheels can be like a combination of a rolling entertainment center with ton of computer ****. One of the reasons I opted for something under warranty. Think I might try to stay with stuff under warranty rather than driving cars for 10 years or so like I have.

 

[NickTheGreat]

It was used. Financed through the dealer. The new and used rates were in line, but I'm not sure if that's always the case.

I do find the certified used cars have a much better warranty. So we always go that route.

I am a guy who doesn't believe in car payments. I've almost always paid in cash. Today's cars are built to last 200,000 miles. So a higher mileage vehicle at a lower price doesn't scare me.

My California wife believes a car payment is mandatory and has been upside down for about a decade because she trades in so quickly

I don't really like car loans either. When was bought my wife's previous car in 2008, I went in all proud of ourselves to pay CASH for the car. The dealer did not care, almost seemed less interested in the sale. Perhaps they didn't get any incentives for a loan . . .

So for her last car and my last one we went in and financed. The most surprising thing to me was that putting $10k down on a vehicle gardered a better interest rate than putting $15k down. We paid them off within a short period afterwards, so the interest rate wasn't terribly relevant, but I found that odd. The finance lady at the dealer said it was pretty common, and didn't quite know why either.

 

[kingcy]

Some of the statements in here made me think about a couple things.

When you trade vehicles in or sell them, do you mention the issues you have with vehicles? Not saying the obvious dent in the quarterpanel, Im saying, you know the A/C condensor is out and the A/C doesn't work but its winter type of stuff. I always have. Just wondering about others.

If you are selling them, you probably should. Trading not sure if it really matters. They low ball you so bad on a trade and most of the time if cars are of the age to have major issues they ship them to auction and don't pass that info along. The 2 times I traded in older cars they told me they don't care about what is wrong with it.

 

[BoxsterCy]

Monsoon Gray A4 here...sooooooo much better than regular gray.

This guy gets it!

I was pretty surprised on Wednesday. Came out of the dentist office and there was an identical A5 parked next to mine. Monsoon Gray Metallic and even had identical rims that I had bought separately for my winter slippers.

 

[kingcy]

I have not read the whole thing, but don't but buy the extra warranty they will push on you. As hard as they push it dealers must make out well with that product. The last car we bought I about walked away because of how much they were pushing this.

The other thing is don't be afraid to walk away. If you don't like the deal, you are not sure about the car, or even the salesman don't be afraid to say no. There is always something better out there.

 

[Doc]

Some of the statements in here made me think about a couple things.

When you trade vehicles in or sell them, do you mention the issues you have with vehicles? Not saying the obvious dent in the quarterpanel, Im saying, you know the A/C condensor is out and the A/C doesn't work but its winter type of stuff. I always have. Just wondering about others.

I've only traded in one vehicle, and it didn't really anything wrong with it other than a bad tires and alignment, but I've wondered about this. If I was a car dealer and someone was talking about minor issues with their trade-in, I'd be concerned they were doing it to build trust so they could cover up major issues. It's a good thing to do for your own conscience, though. I despise the whole process. My dad hates dealing with car dealers as well, so he just gets cars on craigslist.

 

[jsb]

I have not read the whole thing, but don't but buy the extra warranty they will push on you. As hard as they push it dealers must make out well with that product. The last car we bought I about walked away because of how much they were pushing this.

The other thing is don't be afraid to walk away. If you don't like the deal, you are not sure about the car, or even the salesman don't be afraid to say no. There is always something better out there.

When I bought my last car, the warranty guy came in and noted that I keep my cars forever (true) and said with all of the new electronics an extended warranty might be nice. I said no and he dropped it right away. I almost changed my mind because I figured he might know something. .

 

[dmclone]

https://jalopnik.com/a-third-of-car-trade-ins-are-now-utterly-worthless-on-p-1822443820

A Third Of Car Trade-Ins Are Now Utterly Worthless On Paper

 

[Bobber]

Have a Dodge with 156,000, Toyota with 160,000, and Honda with 120,000. All run great and no plans to get rid of any time soon. With my kids starting to hit their teen driving years will probably switch to straight liability insurance and if one gets banged up, fix out of pocket or buy another old beater.

Plan to buy a nice Lexus for my wife when the youngest graduates!

 

[Sousaclone]

Lots of good reasonable advice in this thread. Couple of other things I've seen or remember from buying my jeep a couple of year ago:

1) If you are getting a loan, make sure that there is no prepayment penalty. I got a loan for a portion of mine (partially to help build my credit), but paid it off extremely agressively (I think I paid it off in 18 months). I did put about half down so that helped.
2) Take your time and read all the paperwork. Get a copy of all the paperwork. I read an article a couple of weeks ago about some shady dealerships going to electronic signing on documents and people getting absolutely hosed on stuff.
3) Like lots of people have mentioned, you have the power to walk away. If you think they are playing games with you, or if they get pushy, or just make you uncomfortable, you can leave at any time. Don't get attached to a car.
4) You may have to dig for it, but find out what the dealer invoice price is for your car. the difference between list and invoice on mine was about $5k.
5) I think the thing about selling at the end of the month is at least partly true. I bought my jeep on black friday and there wasn't much to do in terms of negotiations. I came in, offered $~1.5k less than what I expected and was prepared to pay (which was still 2k under sticker), they counteroffered $500 above my offer and I took that deal.

One thing to remember is that a lot of times people are looking at the same car at the same time. Happened with the aforementioned jeep. I looked at it on Wednesday (made my decision on Thursday) and came back Friday morning to make the deal. They actually sold it that Friday AM (they did actually sell it, I saw someone taking possession). Dealer found an identical model about 45 minutes away at a sister dealership and got that one up to me that afternoon.

 

[CloneFan4]

Just got back home after test driving the vehicle. Drove beautifully and asking price is reasonable. Front tires are a little worn.

Guy was surprised that they hadn't knocked the price down since it was the end of the month, then proceeded to tell me that they couldn't go any lower than what they were asking. Kept asking what it would take to buy it today and I walked and said I'm going to sleep on it. Told me he'd follow up next week.

 

[jkclone]

2) Take your time and read all the paperwork. Get a copy of all the paperwork. I read an article a couple of weeks ago about some shady dealerships going to electronic signing on documents and people getting absolutely hosed on stuff.

This part is important. Happened with mine because I hadn’t ever bought one and I thought that was just normal and my Dad hadn’t bought with a loan in over 10 years. Ended up working out but watch that.