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Frequent Contributor
Kratos-TM
Posts: 426
Registered: ‎05-23-2013

Re: I'm 22 and want some help estimating leases for a f150

141S4.....For purchasing, not leasing.....after we lock in the interest rate we know we qualify for and not allow the dealer to hike the rate, what other ways can they try to screw us outside of the extended warranty sham? Or are we in the clear at that point...?

Myfico scores.....
EX08... 800 (11-10-13)
EQ04... 790 (12-02-13)
TU08... 810 (12-02-13)
New Contributor
14IS4
Posts: 70
Registered: ‎01-08-2014

Re: I'm 22 and want some help estimating leases for a f150

@B335is - Congrats on the purchase! Yes I'm coming from a 2010 GTI and a 2013 Golf R so the next step for me was an Audi S4. I'm just patiently waiting for it get here I ordered it on December 3rd.

 

 

@Kratos-TM - The only way to really lock in your interest rate is to come in there with financing already in place. Sometimes even as nice as you are they won't tell you how many points of rate they're up over the buy rate. It's almost impossible to get them not to mark up the interest rate and they are not required to show you but you can tell them you are going to take your business else where if they don't. They will typically try and beat the rate you have from the credit union or wherever you found your financing from.

 

You need to make sure that you are calculating everything during the process to make sure their numbers match up. There have been lots of times where they will blatantly make "mistakes" when doing calculations that could end up costing you a lot in the end. The main reason it is so crucial to negotiate the price of the car and nothing else is so that you can constantly see how all of the other numbers match up.

 

You need to make sure to read through everything on the contract before going back to the F&I office they will undoubtedly add in dealer fees. I've seen so many fees that are completely ridiculous such as a Tire Disposal Fee on a brand new car without a trade in. Pretty much any fees that you see on there besides Sales Tax, Registration, and Doc Fees are pure dealer profit. Doc Fees can be on the high side and you might have to negotiate the vehicle price down because they usually don't budge on those fees, anything over $100 is excessive. Dealer installed options, window tint and other things that you don't see until you start signing paperwork are there to make them money. You can get window tint done at a reputable shop for $100-150 with a lifetime warranty and you will usually see the dealership charging $350-500 for the cheap tint.

 

If you are going to trade in a car then it is best to go and get a couple of other quotes for trade in value. What I typically try and tell people is to go to Carmax because they are the easiest and then go to competing dealerships. So if you're going to purchase an Audi I would recommend getting written trade in offers from BMW and Mercedes. It lets them know that you are looking at their competition especially sales managers and they will push to get you a better deal just to beat their competition. Don't trust Kelly Blue Book for valuing your trade, rely on other dealerships and Edmunds True Market Value. Dealerships use Black Book values to value your trade in and that is based off of prices that the cars are going for at auction.

 

Once you get into the F&I office which is also called the back end anything they try to push on you is going to be pure profit from their standpoint. It is typically not recommend to agree to buy anything in there even if it seems like a good deal. Around 50% of dealership's profits from single vehicle sales come from the F&I office.

Frequent Contributor
Kratos-TM
Posts: 426
Registered: ‎05-23-2013

Re: I'm 22 and want some help estimating leases for a f150


14IS4 wrote:

@B335is - Congrats on the purchase! Yes I'm coming from a 2010 GTI and a 2013 Golf R so the next step for me was an Audi S4. I'm just patiently waiting for it get here I ordered it on December 3rd.

 

 

@Kratos-TM - The only way to really lock in your interest rate is to come in there with financing already in place. Sometimes even as nice as you are they won't tell you how many points of rate they're up over the buy rate. It's almost impossible to get them not to mark up the interest rate and they are not required to show you but you can tell them you are going to take your business else where if they don't. They will typically try and beat the rate you have from the credit union or wherever you found your financing from.

 

You need to make sure that you are calculating everything during the process to make sure their numbers match up. There have been lots of times where they will blatantly make "mistakes" when doing calculations that could end up costing you a lot in the end. The main reason it is so crucial to negotiate the price of the car and nothing else is so that you can constantly see how all of the other numbers match up.

 

You need to make sure to read through everything on the contract before going back to the F&I office they will undoubtedly add in dealer fees. I've seen so many fees that are completely ridiculous such as a Tire Disposal Fee on a brand new car without a trade in. Pretty much any fees that you see on there besides Sales Tax, Registration, and Doc Fees are pure dealer profit. Doc Fees can be on the high side and you might have to negotiate the vehicle price down because they usually don't budge on those fees, anything over $100 is excessive. Dealer installed options, window tint and other things that you don't see until you start signing paperwork are there to make them money. You can get window tint done at a reputable shop for $100-150 with a lifetime warranty and you will usually see the dealership charging $350-500 for the cheap tint.

 

If you are going to trade in a car then it is best to go and get a couple of other quotes for trade in value. What I typically try and tell people is to go to Carmax because they are the easiest and then go to competing dealerships. So if you're going to purchase an Audi I would recommend getting written trade in offers from BMW and Mercedes. It lets them know that you are looking at their competition especially sales managers and they will push to get you a better deal just to beat their competition. Don't trust Kelly Blue Book for valuing your trade, rely on other dealerships and Edmunds True Market Value. Dealerships use Black Book values to value your trade in and that is based off of prices that the cars are going for at auction.

 

Once you get into the F&I office which is also called the back end anything they try to push on you is going to be pure profit from their standpoint. It is typically not recommend to agree to buy anything in there even if it seems like a good deal. Around 50% of dealership's profits from single vehicle sales come from the F&I office.


Thanks alot. I know exactly what rates I qualify for and will tell them what my CU will do. And I'll be sure not to buy anything in the F&I office. Thanks a lot for the feeback.

Myfico scores.....
EX08... 800 (11-10-13)
EQ04... 790 (12-02-13)
TU08... 810 (12-02-13)
New Visitor
Carpenterj1990
Posts: 2
Registered: ‎01-16-2014

Re: I'm 22 and want some help estimating leases for a f150

Sorry to post on your post, but I have about the same question just my is financing.

I am 23, single, never married, I rent. I have recently brought my credit score to 708, all three scores are the same? (not a question, just weird)

I am in the military and have been for about 4 years

annual income about 36000

I am upside down about 2k on my car

I am deployed and when I get back I plan to buy a new Ram sport 1500

I will prob end up with a price of around 38000 for it

My length of credit history is weak at best, my oldest card is 3.4 years

No negative info on my credit report

I will put 1500 down

Should I even try it?

 

Established Member
hilarybanks
Posts: 74
Registered: ‎07-05-2008

Re: I'm 22 and want some help estimating leases for a f150

You have gotten some really good information, so I won't rehash it. I will just say that I am currently leasing a Benz and I wouldn't wish a car lease on my worst enemy. 

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Last App: 3/16/2014 (Current FICO 740 per 4/07/14 Barclay FICO)
Established Member
hilarybanks
Posts: 74
Registered: ‎07-05-2008

Re: I'm 22 and want some help estimating leases for a f150


Carpenterj1990 wrote:

Sorry to post on your post, but I have about the same question just my is financing.

I am 23, single, never married, I rent. I have recently brought my credit score to 708, all three scores are the same? (not a question, just weird)

I am in the military and have been for about 4 years

annual income about 36000

I am upside down about 2k on my car

I am deployed and when I get back I plan to buy a new Ram sport 1500

I will prob end up with a price of around 38000 for it

My length of credit history is weak at best, my oldest card is 3.4 years

No negative info on my credit report

I will put 1500 down

Should I even try it?

 



I don't think you should buy (or lease) a $38,000 car on a $36,000 income. The car will be more than your annual salary....

Barclay Visa Fin $1500 | Wal-Mart Discover $2000 | AmEx BCE $3000 | Target $3000 | Slate Visa $4800 | Hyatt Visa $5000

Last App: 3/16/2014 (Current FICO 740 per 4/07/14 Barclay FICO)
New Visitor
Carpenterj1990
Posts: 2
Registered: ‎01-16-2014

Re: I'm 22 and want some help estimating leases for a f150

I understand what you are saying and in any other situation I would agree, how ever I and set to make rank by at most next year. I will them be making around 40000

New Contributor
14IS4
Posts: 70
Registered: ‎01-08-2014

Re: I'm 22 and want some help estimating leases for a f150

@Carpenterj1990 - I would never suggest buying anything in with the hopes of getting a promotion even if it is guaranteed. Wait until you have that promotion for a couple months before purchasing. That being said a $38k car on a $40k salary isn't that great of an idea.

What is the auto tax rate in your state and what is the actual price of the vehicle? At $36k with a tax rate of 6.25% you're looking at a little over $2k for taxes. Say you're only $2k upside down on your current vehicle after trade in that puts you $4k in the hole without factoring in financing and with a down payment of $1500 you're not even getting out of the hole on your previous vehicle so you'll most definitely be in the hole on the new one.

Say you end up financing $38,500 after taxes and down payment you end up with a 60 month 5% loan you're looking at a $680/month car payment. With insurance and gas it's probably going to be close to $1000/month just for your car. Your take home pay after taxes is probably around $2500? That would result in 40% of your income being designated just towards your vehicle. I don't know what all your other monthly expenses are but that's a lot of money you're going to be taking on when you're starting out upside down on the vehicle.

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