New To Buying Cars...Have Some Questions From Experienced Buyers

[ScoobySnax]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Why was that a dumb decision?

(Sorry if I'm asking too much. I appreciate you responding.)

Like p_rushing said, you can get a way better rate going through your bank. You live and you learn though. On my next car purchase, I will be in control! (repeat 20X to self)

[legendkiller5]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Yep. Carfax gives you the full history if you're buying used.

False.


http://g35driver.com/forums/buying-s...eo-inside.html

http://www.cbc.ca/marketplace/2009/vehicle_history_reports/main.html

[ScoobySnax]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

False.


http://g35driver.com/forums/buying-s...eo-inside.html

http://www.cbc.ca/marketplace/2009/v...orts/main.html

I stand corrected. I never used Carfax, but that is the way it's being marketed.

[legendkiller5]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

I stand corrected. I never used Carfax, but that is the way it's being marketed.

That **** is so sad, man. I get p***** off everytime I see one of those Carfax commercials, because I know the customer is more than likely getting ripped off.

[sb24]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Why was that a dumb decision?

(Sorry if I'm asking too much. I appreciate you responding.)

Look at this way. The dealership is basiclly getting a loan from the bank for you. So if the bank was going to charge you 5% the dealership will charge 6-7% so they make money off helping you out. Not exactly how it works but close enough to get an idea.

As for carfax...... if i hit a tree, dont tell anyone, and then fix everything myself (assuming im a good mechanic) how does carfax know? While it can be an effective tool, its no where near perfect.

[TMagic]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Thanks for the input fellas.

Now this may be another dumb question, but I don't give a damn.

Is it possible to buy a new, but older version of a car?

Like could I buy a brand new 2007 Altima or something like that? Or do dealerships only have the 2010 (or 2011?) available?

I ask, because I figure that would save me some money if it's an older model. I don't neccessarily want the newest version of a car. Just a brand new car.

[sb24]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Thanks for the input fellas.

Now this may be another dumb question, but I don't give a damn.

Is it possible to buy a new, but older version of a car?

Like could I buy a brand new 2007 Altima or something like that? Or do dealerships only have the 2010 (or 2011?) available?

I ask, because I figure that would save me some money if it's an older model. I don't neccessarily want the newest version of a car. Just a brand new car.

Ask away, we would rather you make an informed decision.

Its very easy to do if your buying last years cars. If 2010 are the new ones you can still usually get a 2009 brand new one.

If you can find a 2007 brand new it may not be a good idea. If the car has been sitting to long that can cause some problems(If they move it enough and take care of it it shouldnt be a problem tho).

[rspencer86]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

I'm 23, graduated college last May, and just bought a new car, so maybe my experience can help you out.

My 1995 Toyota Avalon (only car I've had since I was 16) had 165,000 miles on it, AC didn't work and the front axle sounds like it is about to snap in half at any moment. So I decided it was time to look at getting a different vehicle.

Just to give you a background on my financial situation, right now I make $35,300 a year at my job. My current debt includes $2,000 in student loans, $1,000 for some dental work, and a couple hundred bucks for the iMac I bought in October. I have about $8,000 in savings.

I decided to buy new instead of used. You get more value buying used, but I plan on driving this car for 8-10 years so I decided buying new made sense for me. I did a lot of research, test drove several cars, and decided on a 2010 Mazda3. My sales price after recent grad discounts, dealer cash, etc. was $17,350. I ended up financing about $19,000 after fees and an extended warranty at 0% for 60 months. My parents had to cosign to get that rate, because although my credit was good, I only have my student loan and my credit card, and banks are requiring five lines of credit these days.

I'll be paying $320 a month for the next five years, which I'm okay with. I still have to pay sales tax on the car when I pick up my license, which will probably be another $1,500.

In the end I'm very happy with my purchase, got a great car at a good price that works within my budget.

Let me know if you have any questions and I'll try to help you out.

[TMagic]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

What kind of down payment did you make? And I'm guessing you went through the Dealer instead of the bank for financing?

[rspencer86]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

What kind of down payment did you make? And I'm guessing you went through the Dealer instead of the bank for financing?

Nothing down, didn't really see a point since I was able to get 0% financing through the dealer.

I saw that Toyota is now offering 0% on a bunch of their vehicles as well.

[TMagic]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Nothing down, didn't really see a point since I was able to get 0% financing through the dealer.

I saw that Toyota is now offering 0% on a bunch of their vehicles as well.

So that basically means that you don't have to pay any interest on the car for those 60 months I'm guessing? Just paying the amount the car costs? Is there any downside to that?

[justamush]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Nothing down, didn't really see a point since I was able to get 0% financing through the dealer.

I saw that Toyota is now offering 0% on a bunch of their vehicles as well.

I'm sure Toyota right now is doing everything they can to sell cars after the recent bad press. Toyota were always considered good cars before this recent incident, and I still would have no problem with buying one.

To the OP, I would say look around; a lot of dealership are now offering low finance rates to move cars. If you have good credit you might qualify for them.

[rspencer86]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

So that basically means that you don't have to pay any interest on the car for those 60 months I'm guessing? Just paying the amount the car costs? Is there any downside to that?

Yes, no interest for the length of the loan. The only downside I guess would be that my parents had to co-sign, but that hopefully shouldn't matter much as I don't plan on putting myself in a situation where I couldn't make a $320 payment every month.

I'm sure Toyota right now is doing everything they can to sell cars after the recent bad press. Toyota were always considered good cars before this recent incident, and I still would have no problem with buying one.

Definitely, they let down their guard on this accelerator issue but I'm sure they will get that corrected. My family has owned several Toyotas and they just keep on going, other than the typical stuff that starts wearing down after 10+ years of driving we haven't had any issues at all with them.

[Lieutenant Dan]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Ahh...buying your first new car...

Here's a few tips for while you're at the dealerships.

--Work with someone you like...trust your instincts. If the guys feels smarmy to you or fake, move on. If he's high-pressure and says 'buddy' all the time, move on. His job is to HELP you. Feel good about your salesperson and the dealership in general.

--Once it's time to start paperwork after things have been going well, they sometimes sit you down with a different person to handle finances. If this person makes you uncomfortable at any step in the process, leave. Even if it's the final signing your name...leave. I speak from experience by being badgered by the financial person at a dealership, he was a piece of work.

--I did finance thru the dealer, but then a year later I got a home equity loan for a MUCH better rate than the car note, so rolled the car loan into the bank loan. Payment went down over $140 a month with less interest besides. I agree with others here that if you can work a loan thru your bank (you can get a pre-approval before you go to dealership) then that is USUALLY to your advantage, with the exception of 0% loans at teh dealer if you qualify.

--If you go at the end of the month, the dealerships are more eager to deal to make their 'numbers' for the month.

--If the dealership still has some new 09's on the lot, you should be able to score a pretty good deal as compared to a '10 of the same vehicle. Ask about it.

--If everything's great but you just can't meet on the price (be reasonable in what you ask for..if you're trying to buy below cost, it ain't happenin), thank them for their time and tell them you're going to go check out another dealer (be friendly but firm about it).

--Ask some friends who have bought in your area where they got their cars from and how the dealers were. It's a good way to find a 'straight' dealer. Some dealers are great and fair, some are out to screw you...and it can be hard to tell when you're new at it which is which.

--Finally, whenever possible, take a friend with you...or a family member. For one, it's nice to have the support and two, salespeople will generally be better behaved.

Good luck. Enjoy your search! Don't buy more car than you can afford!

[Trevytrev11]

Re: New To Buying Cars...Have Some Questions From Experienced Buyers

Some thoughts:

1) Try and get pre-qualified from your bank (even better if its a credit union as they usually have lower rates). Even if you finance through the dealership, you sometimes can use this as leverage to get a lower rate through them. We were originally offered like 7% through the dealership, but were qualified at 4.9% from our c.u....all of a sudden the dealership was able to give us 4.79%...Amazing!

2) Never negotiate the payment. Only negotiate the price. If you tell them you don't want to pay more than x a month. They will find the worst ways to make it work (high interest loans with longer than normal terms).

3) When you get pre-qualified from your bank, compare those terms vs. cash back options from the dealer. If you have great credit and can get qualified at a low rate from your bank, then the cash back option is probably best. The low interest offers tend to be best for those that typically qualify for 9-10% loans.

4) If you have to use the dealerships lender to take advantage of cash back rebates, ask if there is a pre-payment penalty. If not, often you can wait a month and then refinance (usually at no or very little cost) the loan with your bank and have the best of both worlds.

5) When you buy a new car, they will offer you all sorts of other crap (wind shield, dent, rust, interior protections...say no to all that crap...it's way over priced).

6) Also I wouldn't recommend signing up for their maintenance plans. They often are non-transferable if you sell the car and typically are only valid with that dealership, so if you move, you are s.o.l.

7) If you are trading in your car:
a) negotiate the new car and the trade in separately....and both are negotiable.
b) you'll almost always get more selling your car on your own to another private party, but it will likely take more time. Plus you don't have to pay sales tax on the difference between the price of the car and the price of the car less trade in (If you buy a new car for $20K and trade in a car for $5K, you only pay sales tax on the $15K (could be several hundred dollars).

8) MOST IMPORTANT (IMO) - if you know what car you want, go through the dealerships internet department. You will almost always get a better deal, with absolutely no hassle. Unless you love the game of buying a car, which I loathe, you will save both time and money going this route. Typically, in my experience, you should be able to get it from $100-$500 above invoice.

To do this, just go to the website, click on the car you want and then there should be something that says click to get a quote. They'll contact you with an offer.

9) If you get something slightly used, you're going to save money. You let some one else take the initial depreciation hit. Obviously you may lose some warranty life and you may have a scratch or a stain, but it may save you several thousand.

Anyway, I've bought two cars (one brand new, one slightly used) in the last three years, so I'm somewhat familiar with the game.