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crashprime
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Registered: ‎05-10-2012
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Countdown to purchase -- 6 months .. advice please!

I am planning on purchasing a vehicle soon, and I need some advice to help guide me through my process. I know that buying a non-budget sporty car is never financially sound, but I also know that there isn't much point in saving money on things that don't matter to me, if I'm not spending some money on the things that do matter to me. In other words, please save the Camry/Prius/Civic speech.

 

I am looking to purchase a Subaru BRZ with MSRP of right around $26,000. I was looking at a WRX in the last few months and was seeking some advice around these parts. Ultimately, this will be a lot less expensive.

 

It is currently in high demand and in a limited production phase.

 

I'm looking at putting down a $500 refundable deposit to secure one from my dealership, but the car will not likely be built until October putting delivery at around November of this year.

 

That leaves me with a lot of time between order placement, and delivery, and some options on what to do with my current vehicle that I still owe on.

I have equity in my current car, and if I traded it in today, I would have around $3000 to include in my down payment.

 

If I spent the next 6 months putting aside $400/mo (this is what I've been doing to save for a down payment), that would net me $2400 extra to put down on the car.

Or I could take that $2400 and make extra payments towards the loan value of the vehicle I am planning on trading in (It's financed at 8% APR).

 

What's the better move? Save the 8% in interest by putting extra money into something that is depreciating in value, or save the cash and guarantee the full value of it?

 

Also, when is it smart to secure financing for the vehicle? I have reasonably decent credit scores right in the 720's. I am attempting to have the one and only derogatory (30 day late) removed as a gesture of goodwill. It's 2 years old, so I doubt my score would jump more than a couple of points.

The credit union I am a member of offers a very competitive rate of 3.24%, but they do run promotions from time to time as low as 1.9%. Is it common to agree to the terms of an auto loan months before actually needing it?

Any other general money saving advice here?

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HoldingOntoHope
Posts: 1,057
Registered: ‎09-29-2009
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Re: Countdown to purchase -- 6 months .. advice please!

Personally I would save the money in cash rather than putting it towards the vehicle you are going to trade. It won't make a large difference in the interest paid or your equity position in the vehicle in such a short time frame. And if the loan on the trade is higher it gives you a reason to say that you need a little more for the trade in value as a part of the deal.

 

As far as securing financing I believe that most CU's when they approve a loan have a time limit on how long the approval is good for. Usually like 30 - 45 days. You may want to check with yours for the particulars. But with your scores and auto history securing the loan will not be a problem anyway. When you have a definite delivery date from the dealer I would get a preapproval from your CU and then if you want ask the dealer to shop it and beat it. If you are satisfied with your CU's rate then just pick up your car and enjoy.

 

I have the same basic mindset as you when it comes to my toys / luxury purchases. If I want it and I can afford it then it's nobody else's business. I'm just not going to call Suze Orman and ask her "Can I afford it?" She'll say "Oh you are so denied" no matter what I think.:smileyvery-happy: :smileytongue:

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AZHeather
Posts: 304
Registered: ‎04-26-2012
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Re: Countdown to purchase -- 6 months .. advice please!

I have the same basic mindset as you when it comes to my toys / luxury purchases. If I want it and I can afford it then it's nobody else's business. 


+1,000

 

What is the point of working hard to make good money if I cannot get something "fun" for myself every once in a while.  If I can afford it and I am taking care of my financial business, then I agree 200% - it's nobody else's concern.


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ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Countdown to purchase -- 6 months .. advice please!

No advice here, just want to commend you on the possible purchase of the BRZ.  I think it is going to be this generation's Mazda Miata.  Looks like a sound platform to build upon.  I just hope the engine and tranny are more sound than that of a WRX.  Enjoy!


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thrasher865
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Re: Countdown to purchase -- 6 months .. advice please!


ccubedzx3 wrote:

No advice here, just want to commend you on the possible purchase of the BRZ.  I think it is going to be this generation's Mazda Miata.



:smileyfrustrated:  Let's hope not!


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thrasher865
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Registered: ‎05-21-2008
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Re: Countdown to purchase -- 6 months .. advice please!

I really knew nothing about this car, but looked it up, and it looks like a fun little sporty car, OP.  Good luck.

 

I don't think you can compare it to the Miata, as the appeal of the Miata is it weighs ~2400lbs and has nearly 50/50 weight distribution.  Other than that, it is underpowered, and is FWD.  The platforms really aren't that similar.

 

There's gonna be a big power drop-off from what you've experienced in the WRX, but it still looks like a fun car.


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marty56
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Re: Countdown to purchase -- 6 months .. advice please!

I would love to see a STI (turbo) version of the BRZ.  The WRX STI is on my short list as my next car but it is ugly looking.

 

I agree the BRZ will be a hot seller.

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thrasher865
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Re: Countdown to purchase -- 6 months .. advice please!

Whaaaat?  Are you talking about the wagon version of the STi?  I absolutely love it!  :smileysurprised:

 

 


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crashprime
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Re: Countdown to purchase -- 6 months .. advice please!

[ Edited ]

To continue off-topic car chat :smileyhappy:

 

I think comparing the BRZ to a Miata MX-5 is pretty fair. 

 

2013 BRZ -- curb weight: 2620 weight distribution 53:47

2013 MX-5 -- curb weight: 2447 weight distribution 50:50

 

Both are pretty light. Both are RWD. Both are almost perfectly balanced.

 

You can almost think of the BRZ as the coupe version of the Miata cabriolet just because they are so damn similar.

 

I think I will notice the power drop off from the WRX as well, but I will hopefully make up for it with the driveability.

 

I can't wait, but because of the slow production start-up for this brand new model, I am going to have to.

 

Oh, and about the STi BRZ... it's coming either next year or the following, but as of right now it's not Turbo. They just juiced out another ~50hp from the engine, and did some weight saving tricks.

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ccubedzx3
Posts: 171
Registered: ‎04-30-2012
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Re: Countdown to purchase -- 6 months .. advice please!


crashprime wrote:

To continue off-topic car chat :smileyhappy:

 

I think comparing the BRZ to a Miata MX-5 is pretty fair. 

 

2013 BRZ -- curb weight: 2620 weight distribution 53:47

2013 MX-5 -- curb weight: 2447 weight distribution 50:50

 

Both are pretty light. Both are RWD. Both are almost perfectly balanced.

 

You can almost think of the BRZ as the coupe version of the Miata cabriolet just because they are so damn similar.

 

I think I will notice the power drop off from the WRX as well, but I will hopefully make up for it with the driveability.

 

I can't wait, but because of the slow production start-up for this brand new model, I am going to have to.

 

Oh, and about the STi BRZ... it's coming either next year or the following, but as of right now it's not Turbo. They just juiced out another ~50hp from the engine, and did some weight saving tricks.


Thank you Crashprime for backing me up......I'm not comparing a convertible to a coupe, I'm comparing the specs and capabilities. The Miata is iconic in translating the car from street to track, and the BRZ will translate the same. It is going to be a fun car to whip around for sure! Enjoy OP if you do get one, I'd love one as a 2nd car!

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