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0% financing for eligible customers...

Frequent Contributor

0% financing for eligible customers...

I'm interested in buying my first new car because honestly the price of a used version of this truck is about the same as new and they are offering 0% if I qualify.  Anyone know how you qualify for 0% interest?  It's for a Toyota Tacoma. 

 

Also, I've never bought a new car because I feel like you're better off buying used financially, but now I'm not so sure that's the case anymore.  Anyone have those same thoughts given the rate environment and my reality that I can't find good prices for used Tacomas. 

Equifax [Citi] Score: 742; Experian [Amex] Score: 734; Transunion [Discover] Score: 729
Creditkarma scores Equifax 792 & Transunion 781
Barclay's Aviator Red -- $8,400; Discover It -- $16,500; US Bank Cash+ -- $7,500; Huntington Bank Voice -- $8,500; American Express Gold Charge Card; Chase Freedom -- $4,000; Barclay's Arrival+ $6,000; Chase Southwest Premier -- $16,000; Citi AA -- $5,500
Authorized User: Chase Freedom -- $6,500; American Express Blue Cash -- $3,500; Sam's Club Mastercard -- $6,000; CSP -- $9,000; Barclay's CashForward -- $5,000
Goal cards: Freedom Unlimited, Chase Sapphire Reserve, Chase Ink Plus
Message 1 of 9
8 REPLIES
Frequent Contributor

Re: 0% financing for eligible customers...

Also, I don't feel like I have ever been a good haggler, but I could usually get something chopped off the purchase price of a used car.  Is it possible to haggle on a new car? 

Equifax [Citi] Score: 742; Experian [Amex] Score: 734; Transunion [Discover] Score: 729
Creditkarma scores Equifax 792 & Transunion 781
Barclay's Aviator Red -- $8,400; Discover It -- $16,500; US Bank Cash+ -- $7,500; Huntington Bank Voice -- $8,500; American Express Gold Charge Card; Chase Freedom -- $4,000; Barclay's Arrival+ $6,000; Chase Southwest Premier -- $16,000; Citi AA -- $5,500
Authorized User: Chase Freedom -- $6,500; American Express Blue Cash -- $3,500; Sam's Club Mastercard -- $6,000; CSP -- $9,000; Barclay's CashForward -- $5,000
Goal cards: Freedom Unlimited, Chase Sapphire Reserve, Chase Ink Plus
Message 2 of 9
Regular Contributor

Re: 0% financing for eligible customers...

With your scores you should qualify for 0% financing, have you pulled your CB's on here to see your auto-enhanced scores? Typically with scores 720+ you should qualify for 0% and top tier captive financing.

 

Toyota tacoma's are an exception it seems when deciding to purchase new vs used. Toyota Tacoma's have tremendous resale value and hold their value for a long time, a lot of times for a few thousand more you can purchase a brand new one versus a lightly used one. These trucks run for a very long time and have low maintnance cost's, so if you can pick up a used one thats a model year old with low miles for a few thousand cheaper than new, or pay a few thousand more for a new one is totally your preference. I have seen 2013 models with 70k miles bringing mid 20's or higher when you can buy a base model new tacoma for low 30's.

 

As far as haggling, you won't find much negotiation room in a new Tacoma, you may be lucky to negotiate a thousand off the MSRP. On a used one you may be able to negotiate a bit more than that. When buying used vehicles I always urge people to pull NADA values on the vehicle they're interested in and try to negotiate a price in between NADA clean trade in and NADA clean retail. If possible, as close to clean trade in as possible.

 

You don't have to be a good haggler to get a good price on a vehicle, just simply don't get attached to a vehicle and don't buy with emotion. If you let a dealer know you are shopping and not buying today, and that you are trying to get the best deal you can, a lot of dealer's will drop the price quite a bit to get you to buy today. Once they've given you their "best price" simply tell them you will think about it and wait until you they call you the next day and tell them you weren't happy with their deal and see if they will drop it more. You don't have to be an "expert negotatior" to get a good price, you just need patience without making an impulse buy.

 

When you are ready to buy and have agree'd on a price, let them know you are only interested in their 0% financing and if they can't get you that through their captive lender (ie: only allow them to submit you to Toyota Financial) then you are going to finance through your CU. (Don't ever talk about financing or how you are planning on paying for the vehicle until you have agree'd on a price, negotiate price first before telling them you are a cash buyer, or have a pre-approval or you are seeking 0%, telling a dealer you are a cash buyer can sometimes generate a higher sales price to make up for the loss of "back end").

AMEX BCE ($39,500) CITI AAdvantage ($18,500) Region's Platinum Card ($14,400) Discover IT ($13,000) Macy's ($7,500) Chase FU ($10,000) TU:768 EX: 767
Message 3 of 9
Frequent Contributor

Re: 0% financing for eligible customers...

Benefits of buying new.

 

1. Reliable costs.  Due to the warranty, you know what will be your monthly out of pocket expense. With a used vehicle, you might pay 50 one month and 500 the next.  While average payments will likely be lower, if you don't have the savings to absorb a high repair bill, you could actually be worse off.

 

2.   Equity over time.   While new cars do lose quite a bit of their value in the first year, this doesn't matter much if you  do not plan on selling the vehicle.  If you buy a vehicle and ride it into the junkyard.  Buying new and having the vehicle last 3-5 years longer than buying a 3-5 year old vehicle will negate this negative. Similarly, if you are a responsible owner who does all of the correct services on time, you might have a car that last 5-10 years longer than the 3-5 year old vehicle you purchased.

 

3. Safety.  In the last 5 years safety requirements have gone through the roof.  A vehicle manufactured 10 years ago might not even pass today's standards. Also next year new features such as mandatory backup cameras, will be introduced.   If thats important to you, buying new is the right choice as the option might be slim pickings from the used market.

 

4. Financing. Depending upon your credit, you can usually get lower APR for a new vehicle than for a used one.  So over the course of 5 years(assuming you aren't buying cash), that used vehicle discount might be less than anticipated because of the power of compound interest.

 

5. Insurance.  With gap coverage during the first year or two of your vehicles life, if you happen to get into a vehicle destroying accident, you are more likely to recieve a brand new car as replacement, instead of X% which buys you a slightly worse used vehicle than you had before.

Message 4 of 9
Frequent Contributor

Re: 0% financing for eligible customers...


graath wrote:

Also, I don't feel like I have ever been a good haggler, but I could usually get something chopped off the purchase price of a used car.  Is it possible to haggle on a new car? 


If you are eligible for USAA, their car buying tool gives you the best possible price without Haggling.  I once got a 16700 car for 12800, that had a resell value above my purchase price for over a year.

Message 5 of 9
Frequent Contributor

Re: 0% financing for eligible customers...

That's an awesome story, but no I am not a member of USAA. 

Equifax [Citi] Score: 742; Experian [Amex] Score: 734; Transunion [Discover] Score: 729
Creditkarma scores Equifax 792 & Transunion 781
Barclay's Aviator Red -- $8,400; Discover It -- $16,500; US Bank Cash+ -- $7,500; Huntington Bank Voice -- $8,500; American Express Gold Charge Card; Chase Freedom -- $4,000; Barclay's Arrival+ $6,000; Chase Southwest Premier -- $16,000; Citi AA -- $5,500
Authorized User: Chase Freedom -- $6,500; American Express Blue Cash -- $3,500; Sam's Club Mastercard -- $6,000; CSP -- $9,000; Barclay's CashForward -- $5,000
Goal cards: Freedom Unlimited, Chase Sapphire Reserve, Chase Ink Plus
Message 6 of 9
Regular Contributor

Re: 0% financing for eligible customers...

I don't know where you live, but where I live (Houston), whenever I have someone looking for a lightly used truck, I tell them they may as well by new.....literally right now, a used half ton truck with 30k miles is about $3,000 less than a brand new 2018 model. The Tacoma has an amazing resale value, so I'd assume a new one makes more sense for you as well. 

 

As for 0%, with the scores you have, you will qualify for 0%. Go find that new Tacoma you want! Research at Toyotas web site to see what current rebates are (probably none since they're offering 0%). If there are no rebates, then I would guess something around 6% off would be a skinny deal for the dealer. 

Starting Score:Low 500s in 2013
Current Score 1-13-18: TU: 787 EX: 799 EQ: 781
Goal Score: 800 Across the Board
In My Wallet: Cap1 QS1 - Cap1 BuyPower - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Gold - AmEx Green - DISCO - NFCU Cash Rewards

Message 7 of 9
Regular Contributor

Re: 0% financing for eligible customers...

I'd add one thing, and this is in response to what SEMO said regarding not mentioning to the dealer how you're paying for it or 0% etc.  I would personally tell you if the 0% is your motivating factor you should make that known up front because if there are rebates on the truck, you likely give those up to take 0%. This is where people always think the dealer is screwing them. For example, let's say Toyota has $1,000 rebate or 0%. Msrp of truck is $30,000. Dealer discount is lets just say $1,200 and that's the best they can do. If you take the rebate, your "best" price is $27,800. If you take 0%, your "best price" is $28,200. In both scenarios the dealer has discounted the vehicle the same amount - but the rebate makes the first option look like the cheaper option (of course 0% for 60 months is most likely the cheaper option in the long run). Just my two cents, with 10 years and counting at a dealership. 

Starting Score:Low 500s in 2013
Current Score 1-13-18: TU: 787 EX: 799 EQ: 781
Goal Score: 800 Across the Board
In My Wallet: Cap1 QS1 - Cap1 BuyPower - PenFed Power Cash Rewards - PenFed Promise - AmEx Delta Gold - AmEx Green - DISCO - NFCU Cash Rewards

Message 8 of 9
Member

Re: 0% financing for eligible customers...

I’m not a huge fan of buying new due to depreciation. I would rather buy something 2 or 3 years old. Just another thought 

Message 9 of 9