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Contributor
brainysmurf
Posts: 89
Registered: ‎03-19-2011

Do I trust them?

[ Edited ]

I have a 2008 Mazda 3 Grand Touring with 28k miles on it. Current payoff is $12,700. It has been in an accident, with all damage repaired, but this shows up on CarFax.

 

Went to haggle with Mazda dealership, since I already took some INQ hits with trying to Refi out of 11.25%

They want to essentially take the 2008 and leave no equity, positive or negative.

They're offering cash price on a 2011 version of my car of $25,825.

 

The amazing thing here is how many strings were pulled. The finance guy was able to call and haggle with Mazda financing and get me 6.9%

I know the price is high, but I don't know how much haggle room I have with that, after he went to bat for me on financing.

(EQ beacon 622.)

 

Should I take this, giving myself more debt? I managed to get out of there today, just so I could hop on here and ask all of you.

The deal is leaving a bit of a sour taste in my mouth, I think it's more or less because there's nothing wrong with the car I have now, and doing this would be kind of stupid.

EX / EQ / TU FICO
Start: ? / 633 / 621 March 2011
Current: 751 / 760 / 750 (PSECU, SW, QM)
My Wallet: Fidelity Amex 5k, NFCU CashRewards 10k,
SD: Barclays Apple 1.2k, Amex Zync NPSL, HomeDepot 1.2k
New Contributor
favre_2_free
Posts: 91
Registered: ‎01-12-2009

Re: Do I trust them?

With new cars, and the knowlege we have available (Edmonds, Kelley Blue Book, Nada), its very difficult for the dealer to be slithery in a new car deal.  I just traded a 2006 Pontiac G6 in, and got what I was looking for out of it, and I also bought my new Explorer for a price I was happy with.  In my case, I knew what a new Explorer would sell for, so I would have known if the dealer was raising the price of the new car for compensating giving me more money for the old car. 

In the end, it comes down to A- do you want a new car.  B - do you need a new car.  C- Can you afford it?  Then there are other questions like, If you can break even on your car today, will you be able to break even on it a year from now if you want a new car then?  In my case, I traded it in now, because in 10,000 miles, my extend warranty was up, which would have taken me through October.  In October, my car would have been worth $1,500 less because I would've added another 10,000 miles, and it'd be another model year older.  So I took my deal which left me with no rollover into the new car, at what I think was the perfectly right time for me.

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697
Contributor
brainysmurf
Posts: 89
Registered: ‎03-19-2011

Re: Do I trust them?

It is much harder for them to put one over on the customer these days. I do want to go ahead and get out of this car, as it's going to depreciate much more rapidly in the coming years. I can definitely afford the new car, as monthly payments would be about $40 more than I'm paying now.

 

The question that comes into play though, is can I haggle on the selling price, when they just got me 6.99 with a 622 Auto Enhanced FICO?

 

Reason being, I checked the USAA price. This dealership isn't on the list of those that participate, but one about 20 miles away is.

 

Local dealership is trying to hard sell me at ~26k. They did get a good rate for me.

USAA price, from the other dealership is $22,596

 

Would it be evil of me to go to the other guys, after these guys called in a favor to corporate financing?

Maybe they're using price difference to cover some spread.

EX / EQ / TU FICO
Start: ? / 633 / 621 March 2011
Current: 751 / 760 / 750 (PSECU, SW, QM)
My Wallet: Fidelity Amex 5k, NFCU CashRewards 10k,
SD: Barclays Apple 1.2k, Amex Zync NPSL, HomeDepot 1.2k
New Contributor
favre_2_free
Posts: 91
Registered: ‎01-12-2009

Re: Do I trust them?

I would be straight with the guys you've been dealing with.  Tell them you can get the same car at another dealership for X price, and tell them you want that price or you're going to walk.  That's where they're putting money from your existing car.......they're giving you more for your car, and trying to charge you more for the new one.

If they want to sell a car bad enough, they'll come down some.  What's the worst case?  You have to stay in a car that theres nothing wrong with.....even though it was in an accident.  Starting to deal with the other dealer will at least let you know where you really stand in this deal.

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697
Contributor
brainysmurf
Posts: 89
Registered: ‎03-19-2011

Re: Do I trust them?

Sounds like a plan. I'm going in tomorrow with the USAA price. They let you print out the price that a dealer has agreed upon. I'll just tell them that I want everything up front.

 

"Don't tell me you're not rolling negative equity if you are." etc...

 

I'll see what the other dealership offers me as well, a guy is going to call tomorrow. Like you said, worst case scenario I keep driving a car that's depriciating rapidly (all cars do), but (hopefully) still has many many miles left in it.

 

 

 

EX / EQ / TU FICO
Start: ? / 633 / 621 March 2011
Current: 751 / 760 / 750 (PSECU, SW, QM)
My Wallet: Fidelity Amex 5k, NFCU CashRewards 10k,
SD: Barclays Apple 1.2k, Amex Zync NPSL, HomeDepot 1.2k
New Contributor
favre_2_free
Posts: 91
Registered: ‎01-12-2009

Re: Do I trust them?

Good luck!  Remember, don't be afraid to walk away!  Theres always somebody else that would love to sell you a car!

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697
Contributor
brainysmurf
Posts: 89
Registered: ‎03-19-2011

Re: Do I trust them?

I just wanted to update this thread with the deal I got. I'll post in the approvals thread as well.

 

Trading 2008 Mazda 3 Grand Touring / 28k Miles / $12,650 Pay Off / Repaired Collision Damage*

        NADA rough trade ~$13, but collision brings down...

 

Purchased 2011 Mazda 3 Grand Touring / MSRP $23,010

 

Dealer worked with me on trade, managed $2k positive equity if purchasing @ MSRP

   (I know they're just moving numbers around here, but that's fine)

 

The amazing, and most relevant part for myFICO, I got 5% through dealer financing.

Considering I was @ 11.25% on previous car, I will be making the same monthly payment!

 

They tried to get me with add-ons there at the end. I took the GAP just to throw them a bone and "CMA."

 

EQ - 622, TU -663

EX / EQ / TU FICO
Start: ? / 633 / 621 March 2011
Current: 751 / 760 / 750 (PSECU, SW, QM)
My Wallet: Fidelity Amex 5k, NFCU CashRewards 10k,
SD: Barclays Apple 1.2k, Amex Zync NPSL, HomeDepot 1.2k
New Contributor
favre_2_free
Posts: 91
Registered: ‎01-12-2009

Re: Do I trust them?

Awesome!  Congrats!  Enjoy your New Car Smell! 

Amex Gold, Capital One VentureOne & Platium Cards, AAA BoA Signature Visa, Barclays Airtran & Frontier Airlines Cards, Paypal MC, Best Buy RewardZone Mastercard and Chase Speedway Mastercard....and I FINALLY Welcome to Discover...thank you and have a great day!!!!
EX: 667 (8/6 Amex App) - EQ 700 - TU 697

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