Almost bought a vehicle - don't like financing - other options?
11-12-2008, 10:42 PM
#1
Almost bought a vehicle - don't like financing - other options?
Hey folks,
I've kinda found the car i've been looking for for a while. It's $19,995 after my trade (not much 94 grand cherokee worth maybe $1000-1500).
It's a 2005 Chrylser 300c for anyone interested.
The dealership is offering 8.9% financing by default with a lil movement depending on credit. I've got pretty solid credit, other than a 30k consolidation loan. that i'm paying off. The shitty thing is they'll only offer that over a 60mo term cause the car is so old.
Anywho, that made it 450/month or 207 biweekly. Which is alright, but after lookin at my finances, being around 360/month or like 180 bi-weekly would be fantastic.
I might be able to get them to move a tad on the price but i think overall, financing over 72mo or something might be the bestter option.
I've heard rumors that cibc is pretty much not lending money - but has anyone had to go in for money lately? any experiences on that or thoughts?
I've kinda found the car i've been looking for for a while. It's $19,995 after my trade (not much 94 grand cherokee worth maybe $1000-1500).
It's a 2005 Chrylser 300c for anyone interested.
The dealership is offering 8.9% financing by default with a lil movement depending on credit. I've got pretty solid credit, other than a 30k consolidation loan. that i'm paying off. The shitty thing is they'll only offer that over a 60mo term cause the car is so old.
Anywho, that made it 450/month or 207 biweekly. Which is alright, but after lookin at my finances, being around 360/month or like 180 bi-weekly would be fantastic.
I might be able to get them to move a tad on the price but i think overall, financing over 72mo or something might be the bestter option.
I've heard rumors that cibc is pretty much not lending money - but has anyone had to go in for money lately? any experiences on that or thoughts?
11-13-2008, 10:00 AM
#2
2000 Watt CAFz'r
Join Date: Jan 2001
Posts: 2,026
8.9% is pretty steep especially when you consider that a lot of places offer crazy rates like 0.9% if you buy a new car. Over a 6 year period, you would be surprised to discover that can make a difference of several thousand dollars to the over-all cost. Have you considered getting a new car?
11-13-2008, 12:33 PM
#3
So, nothing down then except your trade in? 30k consolodation loan as well you mentioned. A 7% or 8% rate is not the end of the world and is not all that bad with more or less no money down. Whatever they give you for the 94 is a gift anyway and surely tacked on to the new price.
You arent in the strongest of bargaining positions. Loan rates are risk based, and it is what it is.
These 0.9 financing rates are good IF you meet the criteria, such as a big chunk down usually, high+ credit score, fully secured loan, blah, blah.
To be honest, I would look for something much cheaper than the 300M. Do not get roped in to this 60 or 72 month crap. At 60 months you are paying 27k for the car and loan.
How many clicks on the car? If an 05 I would shoot for 70k or less, lots of lease returns in 08 for 05 cars (3yr lease).
Did you own the Jeep outright? If you did, then you may not have had collision on it (being so old) but you will certainly have to have it on the new one (more money per month).
LOOK AT THE PRICE OF THE CAR, not the payments. Go to different dealerships.
Big cars, and trucks are not moving too well these days (fuel). Big signs on new F150 trucks, alsmost 14k off sticker for example.
Dont let them get away with the "we are doing you a favor" attitude. YOU are the consumer and you are the one doing them a favor.
The sales guy will blow smoke up your *** all day long to get the sale, get everything in writing. negotiate on a warranty if an 05 car. You wont be able to afford to replace an A/C compressor otherwise. or a tranny.
Take a hot shower after you get out of the dealership.
If I seem a bit harsh, its because I know very well how the business works. Its pathetic, immoral, and disgusting. How some of these clowns sleep at night is beyond my understanding.
John
You arent in the strongest of bargaining positions. Loan rates are risk based, and it is what it is.
These 0.9 financing rates are good IF you meet the criteria, such as a big chunk down usually, high+ credit score, fully secured loan, blah, blah.
To be honest, I would look for something much cheaper than the 300M. Do not get roped in to this 60 or 72 month crap. At 60 months you are paying 27k for the car and loan.
How many clicks on the car? If an 05 I would shoot for 70k or less, lots of lease returns in 08 for 05 cars (3yr lease).
Did you own the Jeep outright? If you did, then you may not have had collision on it (being so old) but you will certainly have to have it on the new one (more money per month).
LOOK AT THE PRICE OF THE CAR, not the payments. Go to different dealerships.
Big cars, and trucks are not moving too well these days (fuel). Big signs on new F150 trucks, alsmost 14k off sticker for example.
Dont let them get away with the "we are doing you a favor" attitude. YOU are the consumer and you are the one doing them a favor.
The sales guy will blow smoke up your *** all day long to get the sale, get everything in writing. negotiate on a warranty if an 05 car. You wont be able to afford to replace an A/C compressor otherwise. or a tranny.
Take a hot shower after you get out of the dealership.
If I seem a bit harsh, its because I know very well how the business works. Its pathetic, immoral, and disgusting. How some of these clowns sleep at night is beyond my understanding.
John
11-13-2008, 01:12 PM
#4
Mr. Taylor is 100% right. Get warranty and shop around. Don't agree to or shake any hands with any sales man.
And get all their promisses in writing. And if you are looking for 300C, tell the sales guy "wtf kinda price is this? the Chevy dealer has 2006 Impala SS for $3 grand less" or something like that.
And get all their promisses in writing. And if you are looking for 300C, tell the sales guy "wtf kinda price is this? the Chevy dealer has 2006 Impala SS for $3 grand less" or something like that.
11-13-2008, 01:13 PM
#5
Hah, I hear ya John and appreciate the comments. It's not harsh just real world.
I'm not unhappy with the trade on the jeep as it really isn't worth much more than 1000, i might get 2000 if i sold it during the winter as it runs well.
The car has 50,000km
I did own the jeep, it didn't have collision, but I've accounted for that, though I forgot about it at first. Insurance is going up, but pretty well inline with most of the newer vehicles.
I'm not very good at the whole dealing/bargaining thing, which is why i'm generally grabbing feedback online or taking someone with me.
I totally hear you on the price of the vehicle rather than the payments, and I hate how thats always the first things they talk about is what kinda payments are you looking for. They've basically skipped over the price and just give longer contracts to make you happy.
Needless to say, all comments are appreciated.
I'm not unhappy with the trade on the jeep as it really isn't worth much more than 1000, i might get 2000 if i sold it during the winter as it runs well.
The car has 50,000km
I did own the jeep, it didn't have collision, but I've accounted for that, though I forgot about it at first. Insurance is going up, but pretty well inline with most of the newer vehicles.
I'm not very good at the whole dealing/bargaining thing, which is why i'm generally grabbing feedback online or taking someone with me.
I totally hear you on the price of the vehicle rather than the payments, and I hate how thats always the first things they talk about is what kinda payments are you looking for. They've basically skipped over the price and just give longer contracts to make you happy.
Needless to say, all comments are appreciated.
11-13-2008, 02:18 PM
#6
8.9% is pretty steep especially when you consider that a lot of places offer crazy rates like 0.9% if you buy a new car. Over a 6 year period, you would be surprised to discover that can make a difference of several thousand dollars to the over-all cost. Have you considered getting a new car?
NExt time you see a 0% financing add you will see that it's also cheeper to buy it cash then to buy it at 0%. Basically they build in the 6-10% interest into the price for the car.
The difference is if you get your own financing and get the cheeper price, you can end up paying less over all if you choose to payoff that loan faster.
11-13-2008, 02:37 PM
#7
Administrator
Join Date: Feb 2006
Posts: 16,855
The dealer talks monthly payment instead of total price because most people don't have the total amount in their pocket but know how much they can afford per month. For sure, one has to keep an eye on the total price, especially if the "Well for $XX permonth you can get THIS car.." business starts but, really, for 99% of the people out there it boils down to what you can pay a month. Reality.
Do you need that Hemi? really? Try driving a 3.5L model and see if it won't keep you happy. You can probably buy a new 08 3.5l 300 for the same $$ per month at 0 to 0.9% than that used 300C at 8.9%. You don't need to fork for a warranty then either.
Hell, when we bought our first minivan I figured out after we bought it that for about $100 a month more I could have bought NEW rather than 55,000km used... That was a bummer. So when I needed a car for myself I found that I could get ~$9000 at bank rates for the same $$/mo as a $17000 new car at 0%. That's why I bought my SX2.0 new.
Do you need that Hemi? really? Try driving a 3.5L model and see if it won't keep you happy. You can probably buy a new 08 3.5l 300 for the same $$ per month at 0 to 0.9% than that used 300C at 8.9%. You don't need to fork for a warranty then either.
Hell, when we bought our first minivan I figured out after we bought it that for about $100 a month more I could have bought NEW rather than 55,000km used... That was a bummer. So when I needed a car for myself I found that I could get ~$9000 at bank rates for the same $$/mo as a $17000 new car at 0%. That's why I bought my SX2.0 new.
11-13-2008, 03:59 PM
#8
2000 Watt CAFz'r
Join Date: Jan 2001
Posts: 2,026
Just FYI, thse 0% interest rate are not saving you anything. If anything, they are garanteing more money to the financil institution.
NExt time you see a 0% financing add you will see that it's also cheeper to buy it cash then to buy it at 0%. Basically they build in the 6-10% interest into the price for the car.
The difference is if you get your own financing and get the cheeper price, you can end up paying less over all if you choose to payoff that loan faster.
NExt time you see a 0% financing add you will see that it's also cheeper to buy it cash then to buy it at 0%. Basically they build in the 6-10% interest into the price for the car.
The difference is if you get your own financing and get the cheeper price, you can end up paying less over all if you choose to payoff that loan faster.
So my inlaws financed it, and invested the money where they are getting roughly 6% back on it.
Perhaps they got taken for a ride, I'm not sure.
I personally try and own my vehicles right off the bat. The only thing that I owe money on right now is my house . . . mortgages are some of those loans that you have to live with. On a side note, right now I love my mortgage - I've been locked in at 4.45% for the last 3 years . . . I'm not looking forward to how my rate will change at renewal time next year
11-13-2008, 10:32 PM
#9
The dealer talks monthly payment instead of total price because most people don't have the total amount in their pocket but know how much they can afford per month. For sure, one has to keep an eye on the total price, especially if the "Well for $XX permonth you can get THIS car.." business starts but, really, for 99% of the people out there it boils down to what you can pay a month. Reality.
Do you need that Hemi? really? Try driving a 3.5L model and see if it won't keep you happy. You can probably buy a new 08 3.5l 300 for the same $$ per month at 0 to 0.9% than that used 300C at 8.9%. You don't need to fork for a warranty then either.
Hell, when we bought our first minivan I figured out after we bought it that for about $100 a month more I could have bought NEW rather than 55,000km used... That was a bummer. So when I needed a car for myself I found that I could get ~$9000 at bank rates for the same $$/mo as a $17000 new car at 0%. That's why I bought my SX2.0 new.
Do you need that Hemi? really? Try driving a 3.5L model and see if it won't keep you happy. You can probably buy a new 08 3.5l 300 for the same $$ per month at 0 to 0.9% than that used 300C at 8.9%. You don't need to fork for a warranty then either.
Hell, when we bought our first minivan I figured out after we bought it that for about $100 a month more I could have bought NEW rather than 55,000km used... That was a bummer. So when I needed a car for myself I found that I could get ~$9000 at bank rates for the same $$/mo as a $17000 new car at 0%. That's why I bought my SX2.0 new.
11-14-2008, 01:09 PM
#10
50 Watt CAFz'r
Join Date: Feb 2008
Posts: 163
The difference is if you get your own financing and get the cheeper price, you can end up paying less over all if you choose to payoff that loan faster.
You are more likely to get a better deal if you use THEIR finance dept. They get a kick back just like a new home builder. Coming in with cash makes the finance dept groan.
Take a look in autotrader.com and see what other 300C's are going for. Bring these ads with you.
7-8% on a used car is so-so. But if you don't have great credit and a ton of money down, thats about as good as it gets. Too many people just walk away from homes and cars these days and the banks don't want to take the risk any more.
