Help me buy a car for the first time!

[IlliniKrush]

That is correct. But once you figure out the price, they'll figure out the monthly payment, and then they'll try to lower it for you (how generous). They sell it like they're doing you a favor, but it's always for a longer term and a higher interest rate, thus you end up paying more for the car.

This car can be had for the low payment of 100 dollars a month, just for the next 30 years.

[StrangeSox]

Oh, those payments are too much? Let me show you our leasing options...

[RockRaines]

14 Chevy Cruze with 15k miles for 14.5. I'm pleased.

 

I even got up to walk out and suddenly they met my number.\

 

My wife and I have ridiculous credit scores. It's annoying that they fight you on everything. Yeah, idiots, I'm going to take 2.99% when the wife and I have 850 and 828 credit scores respectively. GMAFB.

They tried to pull that on me the other day and my credit score is next to perfect, the guy came back with concerns on my credit report of which I brought up on my phone and laughed. Guess my business is going to another dealership idiots.

[iamshack]

They tried to pull that on me the other day and my credit score is next to perfect, the guy came back with concerns on my credit report of which I brought up on my phone and laughed. Guess my business is going to another dealership idiots.

The worst trick of all is when they get you to agree to a higher rate than you actually qualified for. Then they pocket the difference. How this is legal, I am not even sure.

[Chisoxfn]

That is correct. But once you figure out the price, they'll figure out the monthly payment, and then they'll try to lower it for you (how generous). They sell it like they're doing you a favor, but it's always for a longer term and a higher interest rate, thus you end up paying more for the car.

The monthly payment is purely math. Negotiate the price. You need to get comfortable on what you can afford and what terms you want before you go into the dealership. If you start talking about payments, you'll be screwed. You'll get a great monthly payment and pay lots of interest over 6 or 7 years. Figure out what you want term wise and what you are able to afford and then figure out what you want to pay for the car. Then know what rate you can get from credit unions, etc, and pretty much see what they can beat (but only after everything is negotiated). Car negotiations do not need credit checks. Do not get a credit check until you have everything else in line. Always maintain the position of power.

[Steve9347]

I haven't done it, but I've always heard you just negotiate the overall price, never on a monthly payment. Then figure out the financing later.

Exactly. I had my number and raped everything else they had down. In fact, my first offer, which they rejected, was better for them than when I finally got my number. Because their bulls*** to get me to take all this other s*** (higher trade-in value, lower percentage rate, free certification, extended warranty) couldn't be taken off the table. So then I got all that and my number.

 

I'm very pleased today.

[Steve9347]

The worst trick of all is when they get you to agree to a higher rate than you actually qualified for. Then they pocket the difference. How this is legal, I am not even sure.

Yeah, I don't really get why that would even be legal.

 

The worst part is, they came back at first and said "no one is doing better than 2.99%" so I had to pull up bankrate.com and show them the percentages being offered. Then they came back in much lower.

 

Then, when the sales manager was finally conceding to the deal, he said "yeah, you have great credit, you qualify for anything" it's infuriating that they tried to bulls*** that one.

[Steve9347]

The monthly payment is purely math. Negotiate the price. You need to get comfortable on what you can afford and what terms you want before you go into the dealership. If you start talking about payments, you'll be screwed. You'll get a great monthly payment and pay lots of interest over 6 or 7 years. Figure out what you want term wise and what you are able to afford and then figure out what you want to pay for the car. Then know what rate you can get from credit unions, etc, and pretty much see what they can beat (but only after everything is negotiated). Car negotiations do not need credit checks. Do not get a credit check until you have everything else in line. Always maintain the position of power.

In my case, the credit check was more of a "position of power" I think, but that's a good tip regardless.

 

It was all about power. It's crazy. I gave them nothing. I wouldn't put my initials down on my number, I refused. "My word is my bond, dude." I'm so happy with how I worked these pricks.

[RockRaines]

In my case, the credit check was more of a "position of power" I think, but that's a good tip regardless.

 

It was all about power. It's crazy. I gave them nothing. I wouldn't put my initials down on my number, I refused. "My word is my bond, dude." I'm so happy with how I worked these pricks.

Not all are bad, but you can sniff out the bad ones. Walking in with a piece of paper with four squares on it is going to make me laugh. Shaking your head at a fake credit report will make me leave.

[Steve9347]

Not all are bad, but you can sniff out the bad ones. Walking in with a piece of paper with four squares on it is going to make me laugh. Shaking your head at a fake credit report will make me leave.

Yeah, I was dying for the four squares. Didn't show.

 

They did come up with a print out of their "cost of cars" which was funny. Ah, this dot matrix printout MUST be honest.

[Iwritecode]

New heater core + new tie rod end.

 

Ouch.

 

I’m going to stand by my statement that going to the dealership for repairs should be a last resort. I blew an engine a couple of years ago and had the entire thing replaced for about that much.

 

Whatever money you saved on buying the new car will go back to them via the service department.

 

[IlliniKrush]

Yeah, I was dying for the four squares. Didn't show.

 

They did come up with a print out of their "cost of cars" which was funny. Ah, this dot matrix printout MUST be honest.

So I hadn't heard of this four square thing, just looked it up. Sounds terrible.

[RockRaines]

So I hadn't heard of this four square thing, just looked it up. Sounds terrible.

It's damn hilarious. I took the paper from him at one point and started crossing things out. So angry.

[kev211]

14 Chevy Cruze with 15k miles for 14.5. I'm pleased.

 

I even got up to walk out and suddenly they met my number.\

 

My wife and I have ridiculous credit scores. It's annoying that they fight you on everything. Yeah, idiots, I'm going to take 2.99% when the wife and I have 850 and 828 credit scores respectively. GMAFB.

Enjoy that gas mileage. I bought a brand new 14 cruze in February for 18k.

[IlliniKrush]

I'd you can, I'd wait for year end sales. The car I have now will be paid off in Dec this year after just 3 years. 0% interest.

When do they start those, only late December? Earlier?

[iamshack]

When do they start those, only late December? Earlier?

They have a few...right now you should be seeing some year-end model sales where you can get '14's for pretty cheap.

[StrangeSox]

There's not really a good financial incentive to paying the loan off early if they're lending you the money for free.

[Iwritecode]

There's not really a good financial incentive to paying the loan off early if they're lending you the money for free.

 

It’s nice to have one less payment to worry about every month.

[southsider2k5]

It’s nice to have one less payment to worry about every month.

 

The fiscally smart thing to do is to pay things off with the highest interest rates first. Also keep in mind that mortgage interest is tax deductible.

[RockRaines]

When do they start those, only late December? Earlier?

14's are dropping in price like crazy.

[RockRaines]

The fiscally smart thing to do is to pay things off with the highest interest rates first. Also keep in mind that mortgage interest is tax deductible.

Yep, also making those payments helps your credit

[Iwritecode]

Sure that makes sense but it can also depend on how long you have left to pay on the loans as well.

 

If I have a higher interest loan that won't be paid off for another 4 years and a lower interest loan that will be payed off within a year, I'm going to pay off the lower interest one first. Then I can take the money I was using for that loan and add it on the higher interest one until it's gone. Then if there's a month where I need that extra money for something else, it's there.

 

I paid off a car loan in less than a year simply because I was sick of the bank screwing up my payments. Now I have "extra" money to pay for other things.

 

[StrangeSox]

there's definitely a mental benefit to having one less payment to worry about

[Jenksismyhero]

Sure that makes sense but it can also depend on how long you have left to pay on the loans as well.

 

If I have a higher interest loan that won't be paid off for another 4 years and a lower interest loan that will be payed off within a year, I'm going to pay off the lower interest one first. Then I can take the money I was using for that loan and add it on the higher interest one until it's gone. Then if there's a month where I need that extra money for something else, it's there.

 

I paid off a car loan in less than a year simply because I was sick of the bank screwing up my payments. Now I have "extra" money to pay for other things.

 

You should check the math on that. You might be right. You might also be costing yourself more interest concentrating on a lower interest rate, shorter term loan.

 

The general rule is you always attack the highest interest rate, shortest term loan first.

[southsider2k5]

You should check the math on that. You might be right. You might also be costing yourself more interest concentrating on a lower interest rate, shorter term loan.

 

The general rule is you always attack the highest interest rate, shortest term loan first.

 

I am sure that it is costing interest money, but sometimes the flexibility is nice too.