desperately need help

[2011beginnings]

My 1996 Honda Accord LX with 230,000 miles just got diagnosed with a slow leak head gasket.  Instead of spending almost $1300 to get it repaired and still risk having issues, I have decided to get a new Honda Accord.

I am 24 years old (25 next month) and am trying to decide where to start with the entire car buying situation.  I make around $30,000 a year and have about $3000 saved up for a car.  My credit score is in the high 770's so I know I am good in that location but where should I start.

I have a few credit cards (7) with about a $500 balance across a total available of around $33,000 so my utilization is really low and I always pay in full.  The only expenses I have are the regular phone bill, insurance, food, etc.

I do not want my payments to be anymore than $300 a month.  I feel that is the most I can afford and still live comfortably.  

Where should I go for financing?  Should I start at a bank and then go to the dealership and see what they can offer me or what?  I graduated college May of 2010, do I still qualify for any student financing?  Any suggestions or help you guys can offer will be really appreciated.

[bahbahd]

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@2011beginnings wrote:

My 1996 Honda Accord LX with 230,000 miles just got diagnosed with a slow leak head gasket.  Instead of spending almost $1300 to get it repaired and still risk having issues, I have decided to get a new Honda Accord.

I am 24 years old (25 next month) and am trying to decide where to start with the entire car buying situation.  I make around $30,000 a year and have about $3000 saved up for a car.  My credit score is in the high 770's so I know I am good in that location but where should I start.

I have a few credit cards (7) with about a $500 balance across a total available of around $33,000 so my utilization is really low and I always pay in full.  The only expenses I have are the regular phone bill, insurance, food, etc.

I do not want my payments to be anymore than $300 a month.  I feel that is the most I can afford and still live comfortably.  

Where should I go for financing?  Should I start at a bank and then go to the dealership and see what they can offer me or what?  I graduated college May of 2010, do I still qualify for any student financing?  Any suggestions or help you guys can offer will be really appreciated.

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Credit Unions. Don't forget to factor in cost of insurance while still paying gas, etc.  I'd shoot for a ~$15k, 2010 Accord w/ $3k down. Financing around $12,500 with a 60 month term at just over $200 a month payment.  With your scores and history I would negotiating for a 4-5% APR with the CU. That is, unless you have a previous auto loan paid without any derogatory remarks, then maybe a lower APR even.  Best bet for rates is a credit union for sure. I based my figures off of a modified 20-4-10 equation, that is closer to a 20-5-7.5 rule.  Google the 20-4-10 rule.   Heck I make six figures and I don't want a $300 a month car payment.

[2011beginnings]

Thanks for the advice.

With the current issues and lack of luck I have had with cars in the past, I brand new to have a peace of mind because I travel a lot for work and being a female I cannot deal with car issues anymore or having to pay out of pocket expenses for repairs like I have with my current vehicle.

The Honda Accord I want is $25000 and I feel that I can talk them down and with my added down payment get it to right around $20000.

I will check with a credit union in my area and see what they can offer me.

[bahbahd]

Never talk down in price.  You start low and work your way up. You should be negotiating from dealer invoice or below.  You'd be surprised what dealers can sell a car for and still make money. Honda may have certified preowned vehicles. You may want to look at warranties included with those. New is nice. Nearly new, just as reliable and several grand cheaper is nice too.

[2011beginnings]

Is a website like truecar.com going to give me the dealer invoice price? I fell in love with the body style of the 2013's so unless I can find one used, that's really really what I want.

[bahbahd]

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@2011beginnings wrote:
Is a website like truecar.com going to give me the dealer invoice price? I fell in love with the body style of the 2013's so unless I can find one used, that's really really what I want.

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There are several places you can find invoice prices with a little web searching.  You should even be able to ask the deal for their actual invoice for the car and they should show you. 

http://usnews.rankingsandreviews.com/cars-trucks/Honda_Accord/prices/

This site is kinda hokey also, but it has a generally good apporach on how to negotiate auto prices. http://beatthecarsalesman.com/school/how-to-negotiate-price-of-new-car.html

[Boo1234]

Try Toyota.  I just bought a new prius 4 from them on saturday and they gave me $3000 off sticker price PLUS 0% financing for 60 months.  Usually, it's one or the other, not both when it comes to rebates and 0% financing, so I jumped on it.  I put down 10000 and my paymens are less than $300 per month.  My credit score at the time when they ran it was 797, so yours should get you the same rates I would imagine. 

[SamsungHDTV]

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@2011beginnings wrote:
Is a website like truecar.com going to give me the dealer invoice price? I fell in love with the body style of the 2013's so unless I can find one used, that's really really what I want.

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I bought a new 2013 accord sedan and i love it. I bought the EX trim. You may be able to find a used one with very low miles on it, but you need to check with your local dealers. I bought mine brand new. 

The way to negotiate down is just email all the dealerships and have them give you a quote. When they do, just say you have a better offer at the dealership that gave you the best offer. Repeat this until they all give out and your best offer is the last one standing. This is what I did. 

[Creditaddict]

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@SamsungHDTV wrote:

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@2011beginnings wrote:
Is a website like truecar.com going to give me the dealer invoice price? I fell in love with the body style of the 2013's so unless I can find one used, that's really really what I want.

---

I bought a new 2013 accord sedan and i love it. I bought the EX trim. You may be able to find a used one with very low miles on it, but you need to check with your local dealers. I bought mine brand new. 

The way to negotiate down is just email all the dealerships and have them give you a quote. When they do, just say you have a better offer at the dealership that gave you the best offer. Repeat this until they all give out and your best offer is the last one standing. This is what I did. 

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This is what I recommend too... by e-mail... most will send 1 and push for you to come in... the ones that will work with you over phone and e-mail without stopping if you won't book appointment to come in "usually" are not the shady ones trying to trick you.  also your in a great position to get the special financing and we are at year end clearance so now is a great time to try to get a 13' left on the lot.

[2011beginnings]

I think a 2013 is out of my budget.

After much deliberation with two dealerships in talks about the almost same identical vehicle, the best price I worked was $19,500 but my loan was approved for $18,000 so I called PenFed to up it to $20,000.  This switched the status from conditionally approved for the purchase order to conditionally approved after sending two pay stubs so now I am backtracking.  

Hopefully, this process goes smooth because I just faxed the paystubs to them.  I really like the car and at $19,500 I am basically getting the car for $18,500 before TTT.

It is a 2011 EX black exterior, black interior, sunroof and woodgrain with only 34,000 miles.