topic Re: Before You Ever Buy A Car Read This Post in Auto Loans

Before You Ever Buy A Car Read This Post

Anonymous — Wed, 23 Jul 2008 03:33:01 GMT

As promised I will give me expertise in this forum. I've been a car salesman for 20 years and I'm very successful in my field. I've done everything from finance to sales management but found out I can help more people from the beginning as a salesman. I'm also very happy also because I make the same money with less hours and can help from the beginning because I'm the first person people meet when they visit my dealership with better knowledge than both the manager and finance department. My utltimate goal is to give back the knowledge that was given to me in the credit card forums here and to hopefully become a moderator and truely help everyone that want to purchase an automobile. Most of the posts here seem to be about interest rates but remember that's only a part of the buying process. One must also consider their trade value and the actual price of the car they're considering all of which can be negotiated. Though the interest rate is important other facors can influence the total price you pay over the life of the loan. Three important factors must be taken into consideration when negotiating a deal and could save you thousands of dollars. Most people don't even know that the dealer can charge up to 3 points above the rate that the bank would normally offer you through the dealer and the difference is profit given to the dealer from the bank over the course of the loan. Second, your appraisal on your trade may be used as profit for a dealer. Your car may have been appraised by a used car manager for $10,000 and the salesman says it's worth $8,000. Do you know that this is profit for the dealer because he can sell this car for 10k even though they offered you 8k? That's a $2000 profit for the dealer!!! Finally Most dealers both new and used increase the price of their cars thousands of dollars. If it's a new car they may have additional dealer markups and if used no one really knows the true price of a car because most used car dealers don't put a true price sticker on their cars and if they do it's an inflated price thousands of dollars above values you can get by searching online. The best remedy for this is to seach Kelly Blue Book values or NADA values and even then the dealer may have paid well below these. The best way to seach for cars new and used is to use online services such as cars.com or autotrader.com because dealers will post their best prices because the sites are so competitive for both new and used cars.

The best advice I can give any car shopper is to remember there are 3 ways a dealership can make money and they are interest rate, your trade value, and the price of the car. Negotiating these three things can save you thousands of dollars over the course of your loan. There were many situations I've seen where people have paid $15,000 or more than they should have because they didn't research and that translates into $250 or more a month over a 5 year loan.

I'm here to help and I hope this post makes you more aware of the different ways dealerships profit of the unsuspecting consumer. If you need help with anything relating to an automobile purchase I'm here to help.

Message Edited by RichRaven on 07-22-2008 11:33 PM

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Thu, 24 Jul 2008 01:14:55 GMT

Some good information, Raven....i was just approved for 12k for a used 05 Nissan Pathfinder SE the car only has 35k miles...i thought the deal was to good to be true but its legit!

going to get it friday!

Re: Before You Ever Buy A Car Read This Post

Anonymous — Thu, 24 Jul 2008 02:48:15 GMT

You got a great deal schoolbuskid but remember to compare their interest rates with what your bank or cu offers and remember that you can negotiate rates with the dealer. Also remember that you don't have to buy an extended warrany right away no matter what they say and if you do the price is negotiable too. You got a great deal but remember to negotiate everything offered that appeals to you. Great job and enjoy the truck.

Re: Before You Ever Buy A Car Read This Post

Anonymous — Thu, 24 Jul 2008 04:22:05 GMT

We bought an extended warranty from our CU when we bought our '99 Sable about 5 years ago and I am SO glad we did!! About a month after the dealer's warranty expired, our car went into the shop with serious engine problems (that car was taken apart, bit by bit, six ways to Sunday!). At the end lay a $2500 bill (engine durn nigh had to be replaced). Our X-warranty covered all but $250 of that.

But then, our car might have been the exception. :/

You want to hear a car horror story? About 3 months after we bought our car, our niece's BF came by and remarked that he thought the car had been in an accident -- a rather substantial accident. He pointed out that the entire front end was a matte color as opposed to the glossy paint everywhere else. I shrugged and told him I didn't know.

About a month after that, my son spilled a bottle of water in the backseat. So I pulled out my trusty Green Machine and started "deep cleaning" the water out (in FL, mold starts QUICK!!). All this red stuff kept oozing out of the backseat. LOTS of red stuff. Finally, I gave up and was REALLY ooged out, so I took it to be detailed. Know what they told me?

"Ma'am, I hope you realize that someone was REALLY hurt in your backseat. We pulled out about 8 quarts of diluted blood from the left side of the rear passenger backseat alone." I kid you guys NOT.

Soooo, the moral of this story is: It's called CarFax. Use it. I wish I had have!! o_O

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Thu, 24 Jul 2008 13:34:06 GMT

RichRaven wrote:
You got a great deal schoolbuskid but remember to compare their interest rates with what your bank or cu offers and remember that you can negotiate rates with the dealer. Also remember that you don't have to buy an extended warrany right away no matter what they say and if you do the price is negotiable too. You got a great deal but remember to negotiate everything offered that appeals to you. Great job and enjoy the truck.

I am buying out of state, so the dealer told me that i would have to secure my own financing...which i did and i got a rate of 7.35%. I dont think they add on anything...the salesman told me what the OTD price would be and thats what i agreed on!

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Thu, 24 Jul 2008 13:36:23 GMT

Wow Wonderin thats some kind of story...a bit gross!

Re: Before You Ever Buy A Car Read This Post

Anonymous — Thu, 24 Jul 2008 14:02:27 GMT

Yep. If you think it's gross to hear it, think about what it's like to LIVE it. :/

Now, you can see why I"m asking about financing?')

Re: Before You Ever Buy A Car Read This Post

Anonymous — Thu, 24 Jul 2008 16:20:03 GMT

They gave you the OTD pricing but any dealer add on's will be sold to you at the signing. Read all your paperwork carefully! Don't buy gap insurance from the dealer or the bank.... you can get that with your insurance policy, which won't have to be financed over the duration of your loan.You said you are buying out of state, where are you buying from? Good Luck!

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Thu, 24 Jul 2008 21:13:15 GMT

I live in NC and if i dont change my mind i will be buying from GA! Ive been thinking about whether or not i need this vehicle...My payment on my mountaineer is only 172 and the payment on the Pathfinder would be 250...which still isnt bad...but i have always wanted to actually own my own vehicle without owing anyone money...and if i pay 300 a month on my current note i could do that in a matter of months!

Then i can go shopping for my second vehicle if i feel like it! I think thats more logical! Also i can use my mountaineer for all my lil running around and things.

Message Edited by Schoolbuskid on 07-24-2008 02:13 PM

Re: Before You Ever Buy A Car Read This Post

Anonymous — Fri, 25 Jul 2008 00:51:14 GMT

Schoolbuskid wrote:

I live in NC and if i dont change my mind i will be buying from GA! Ive been thinking about whether or not i need this vehicle...My payment on my mountaineer is only 172 and the payment on the Pathfinder would be 250...which still isnt bad...but i have always wanted to actually own my own vehicle without owing anyone money...and if i pay 300 a month on my current note i could do that in a matter of months!

Then i can go shopping for my second vehicle if i feel like it! I think thats more logical! Also i can use my mountaineer for all my lil running around and things.

Message Edited by Schoolbuskid on 07-24-2008 02:13 PM

Are you factoring in the cost of insuring a 2nd vehicle?

I only ask because I keep thinking I'll go out and pay cash for a cheap, fun, fuel-efficient (ha!) convertible. Then I remind myself that I'll still have to insure it over the winter.

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Fri, 25 Jul 2008 03:37:10 GMT

Ive thought about the insurance but i havent called my agent yet to see how much extra it would be!

Right now im paying 164 for two vehicles...mine and my sisters...that pretty good!

I gotta a feeling i will end up not getting it! I really like my mountaineer but i have had to spend about 2k grand on repairs...i just dont want to repair anything else!

Re: Before You Ever Buy A Car Read This Post

Ashley1980 — Sat, 26 Jul 2008 20:50:16 GMT

You're almost in the same situation that I am in with my 2000 Jeep Cherokee. I have about 4,000 left to pay on it and I will own it. Only thing is that it's already showing signs of future costly repairs (i'm at 155,000 miles). In addition, Chrysler/Jeep vehicles are not the best . I'm looking into an 08/09 Honda Accord coupe and I refuse to roll over any negative equity. So I totally understand the feeling when you're almost paid off and vehicles start to have problems. My question is, should I trade it in when i pay it off or should I keep it as a 2nd (gas guzzling) vehicle thats paid for? How many miles do you have on your Mountaineer?

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Sun, 27 Jul 2008 14:49:15 GMT

You could probably trade it but dont expect to get much for it i went to carmax this past weekend and they valued my mountaineer at $1700, thats ridiculous. I could sell it for my payoff if i wanted to...I really like my truck alot too and just cant see myself getting rid of it when i am so close to owning it!

My mountaineer has 157k miles on it and its an 02!

Re: Before You Ever Buy A Car Read This Post

Anonymous — Thu, 31 Jul 2008 02:17:42 GMT

I was looking for advice on whether it was a good time for me to purchase a car. I have a 2003 pontiac sunfire in good condition 55000 miles, sunroof, no power windows or locks, one owner. I owe more than it is worth due to upside down from previous car and an 8 year loan. I am looking at purchasing another car but I dont want to carry over money from my current loan. Should I sale this car and try to get as much as possible to pay off the current loan. I recently checked and payoff balance is 6300. Also the car I was looking at was a 2007 Murano from Nissan used with 18000 miles, AWD, navigator system, I believe it is an SL they are asking sticker price 28900 I would like my payments to remain around 440-470 a month. How much should I try to negotiate off this price? I am also concerned about interest rate. My transunion is 644. I was thinking I should wait until I can get this up to at least 700 before purchasing. Any thoughts?

Re: Before You Ever Buy A Car Read This Post

Schoolbuskid — Thu, 31 Jul 2008 14:26:33 GMT

charllynn wrote:
I was looking for advice on whether it was a good time for me to purchase a car. I have a 2003 pontiac sunfire in good condition 55000 miles, sunroof, no power windows or locks, one owner. I owe more than it is worth due to upside down from previous car and an 8 year loan. I am looking at purchasing another car but I dont want to carry over money from my current loan. Should I sale this car and try to get as much as possible to pay off the current loan. I recently checked and payoff balance is 6300. Also the car I was looking at was a 2007 Murano from Nissan used with 18000 miles, AWD, navigator system, I believe it is an SL they are asking sticker price 28900 I would like my payments to remain around 440-470 a month. How much should I try to negotiate off this price? I am also concerned about interest rate. My transunion is 644. I was thinking I should wait until I can get this up to at least 700 before purchasing. Any thoughts?

I think you could sale your car for your payoff, i mean it has pretty low miles. If not for pay off, i would shoot for 5300 atleast, carrying over a 1000 into your new loan isnt that bad! It would better to wait til your score is higher but if you need a vehicle right now i say go for it!

Re: Before You Ever Buy A Car Read This Post

Anonymous — Tue, 05 Aug 2008 12:45:04 GMT

Doing da bump