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Car buying experience

Girlzilla88
Valued Contributor

Re: Car buying experience

@Save-n-Invest     Yes thank you so much I am because growing up I was never taught any of this and I learned later in my life (after I hit 30) how my mother grew up she was not taught this either as she stayed home and her husband at the time did the work/finances etc so when it was time for her to learn (After she was 30 plus too) she is still learning as I currently am too so I try to help with all I have learned as well!       I honestly wish people were more open and wanting to help which is why I love this community it has taught me a LOT and everyone here honestly seems like they are trying to help/look out for each other/cheer each other on so I rather enjoy it and I honestly never thought I would say I enjoy going to a Credit Forum LMAO.         Used cars although they do not have Incentives per-say they are eligible for some discounts (depending how long they have had the vehilce) and some may be VIN specific or if say for instance someone is Military and that dealership offers Military Discounts then that would apply for that person but not for you (who may not be) so it's still a smidge trickier but some places (if there is no discount involved or offered) will tell you it's X and if you bring X it's all yours.   Smiley Very Happy       It's easier to calculate Tax, Tag, Title when there is nothing else involved but that is why it's important when asking for pricing what the Out the Door Figures would be for you even if you go into the store so they can find that out with you (If you are looking to finance through them etc) Sometimes they will ask you to come in so they can work out an Out the Door pricing to take to your Bank but depending on the situation and dealership some can work out that number for you to take if you live Far away (out of state) etc so again it boils down to that specific dealership and what they can do/offer.      But there is a different in a Price Quote (more general range) and Out the Door Pricing which tends to be more specific/exact.   ^^










Message 11 of 42
sccredit
Valued Contributor

Re: Car buying experience


@Save-n-Invest wrote:

@Girlzilla88 , I think OP was shopping a used car. Please correct me if I'm wrong. If it was a used car the seller would know what is on the car prior to pricing and advertizing. 

 

Your comment about car classes is interesting. I've read so many suggestions as to what our schools should teach. Many posts on the site suggest money management/credit classes. As it is now our school system is transportation, nutriton and babysitting with incidental learning. 

 

Thanks for your input. I enjoy your contributions. You seem to be a person who is interested in ethical business practices. 


Correct, this was a used car. No incentives, no financing, just a straight forward purchase. Dealers wouldn't change the price of the car itself, they would just add thing slike GPA tracking, door guards and window tint on top of the price of the car. Even on "out the door" quotes they would leave them off until we arrived and spring them when we sit down to go over numbers.

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 12 of 42
Save-n-Invest
Frequent Contributor

Re: Car buying experience


@Girlzilla88 wrote:

@Save-n-Invest     Yes thank you so much I am because growing up I was never taught any of this and I learned later in my life (after I hit 30) how my mother grew up she was not taught this either as she stayed home and her husband at the time did the work/finances etc so when it was time for her to learn (After she was 30 plus too) she is still learning as I currently am too so I try to help with all I have learned as well!       I honestly wish people were more open and wanting to help which is why I love this community it has taught me a LOT and everyone here honestly seems like they are trying to help/look out for each other/cheer each other on so I rather enjoy it and I honestly never thought I would say I enjoy going to a Credit Forum LMAO.         Used cars although they do not have Incentives per-say they are eligible for some discounts (depending how long they have had the vehilce) and some may be VIN specific or if say for instance someone is Military and that dealership offers Military Discounts then that would apply for that person but not for you (who may not be) so it's still a smidge trickier but some places (if there is no discount involved or offered) will tell you it's X and if you bring X it's all yours.   Smiley Very Happy       It's easier to calculate Tax, Tag, Title when there is nothing else involved but that is why it's important when asking for pricing what the Out the Door Figures would be for you even if you go into the store so they can find that out with you (If you are looking to finance through them etc) Sometimes they will ask you to come in so they can work out an Out the Door pricing to take to your Bank but depending on the situation and dealership some can work out that number for you to take if you live Far away (out of state) etc so again it boils down to that specific dealership and what they can do/offer.      But there is a different in a Price Quote (more general range) and Out the Door Pricing which tends to be more specific/exact.   ^^


Thank you for the additional information. I had no idea there are incentives on used cars. To date I've only purchased new. I tried one used car deal but it crashed and burned because I didn't need their financing. I would have had a more favorable impression of the dealership if I was informed that their financing was a requirement for purchase. I would not have involved myself in the contract. Live and learn. 

 

That situation was on three of the hottest days of summer. I would have made better plans. 

 

Like you I enjoy this site. People are generous with their information. I've learned a lot here in my dotage. Smiley Happy

Message 13 of 42
Girlzilla88
Valued Contributor

Re: Car buying experience

@Save-n-Invest      It's not really incentives but more like some discounts that may be applied.     Incentives usually do come to only new and a lot are issued by the Make for example but some Dealerships can offer their own discounts/incentives for their store so that is why sometimes when you are calling around one may have an SUV for 32k NEW while another store may offer that same trim for 40K NEW because maybe that second store is not having specials at time on SUVs but rather Trucks that month....It's always good to ask especially when you are interested in a specific special if you have to go through a specific lender to get it (that will help save you on inquiries too!)     Some will note it on their site but some expect you to know what to ask about qualifying which isn't fair for a lot of cases.     Especially those that are used to paying Cash for a car but keep in mind too sometimes Financing you still end up paying less (even if you have the Cash) and I know I know that may sound REALLY backwards but for example say if they are offering 0% or 2.9% apr or whatever special and the Total amount ends up being 29K with all the discounts added in for Financing since you qualify then if you try to pay Cash you are opting out of the Discounts you could qualify for which would make you end up paying 35K or more on that same vehilce when you could do the Financing and use the Cash (let's say you had 35k) to pay towards the financing (pay it off in 3-6 months unless you want to stretch it out to a year that would work too) but then you can save that 6k doing it Financing vs. Cash.       But a lot of people don't take that into consideration or think Cash is King so you will automatically get a better deal better cash which isn't the case.       New is always better for Discount/Incentives and Warranty Reason but keep in mind another side story if they put you in a higher apr to start because New is easier to be approved and likely with a lower Apr but if they put you in a New that has we will say 11% or so apr (just throwing random number) and you end up liking the vehicle a lot of people don't know or think to refinance it at the 13th month so that could drop them below 5% depending on if they make their payments on time etc and that will also help lower their payment.      If they do NOT end up liking the vehicle then the best time to Trade/Upgrade your vehicle is the 1-2 year mark (13 plus months so a full year is reporting) for best results and also so your vehicle doesn't depreciate more the more you drive it.       That's why sometimes people that pay on it 4 years or so and still have a lot left end up upside down on the next vehicle because at this point the Value has went down so much compared to what they started and especially how many miles they put.      There is the rare case that the person kept in the garage and only put 5k miles on it in 4 or 5 years lol so of course their value will hold a lot better but ......For the rest of us LOL.        And now I'm off track and lost where I was going with this conversation lol.....but yes there is so much involved.   XD










Message 14 of 42
Girlzilla88
Valued Contributor

Re: Car buying experience

@Save-n-Invest     Another side note I thought I put in there that I didn't is if you do Finance vs. Cash then it is reported you made perfect payments (if you keep up with them) and will help your score and also history for when you may need Financing in the Future vs when you pay cash a lot of the time they do not Report that information so it looks like you never paid on a vehicle and can put you in bad spot possibly in the future.    ^^










Message 15 of 42
sccredit
Valued Contributor

Re: Car buying experience

@Girlzilla88 I hear ya on cash vs finance and getting the best deal. We already have 2 car loans (one will be paid off tomorrow and the other is a lease), will need to finance the lease replacement and are looking to buy a house next year. In this case buying cash made the most sense for us as we weren't looking high dollar (we paid $12k even out the door). We didn't want another loan on our credit. We even got creative with how we paid for it so that they wouldn't even pull credit. $3k cash, $3k on credit card and $6k on debit card. All they did was the OFAC report so there was no hard credit pull.

 

Overall I do agree that most people would benefit from financial and "life" education. It was not something I learned from my parents (my folks have always been a hot mess of finances), my wife didn't learn it from her parents (even though they are great with money) and after we got married we figured it out on our own. We are pretty open with our kids and they get lessons from us all the time about credit, money, savings, finances, etc.

Ch 7 Discharge 3/12/2018
Cap One VentureOne $3,500, CapOne Savor $5,300, Kohls $3,000, BBVA $2,500
Infiniti Financial Lease
Goal: New Mortgage 3/2022
Message 16 of 42
Girlzilla88
Valued Contributor

Re: Car buying experience

@sccredit     Yes it is always what works best for the Situation.      If it doesn't end up saving there is no point.    And if you are looking at Home Buying etc you always want to be sure that comes first and you are careful with what you do like you stated.      I agree it's funny that it has gotten this long but hopefully I will get a grip so that way like you moving forward my son will know EARLY so he is sitting in the best position possible going forward for his future!         One step forward from everyone will help make the world a better place.   Smiley Happy










Message 17 of 42
Save-n-Invest
Frequent Contributor

Re: Car buying experience


@Girlzilla88 wrote:

@Save-n-Invest     Another side note I thought I put in there that I didn't is if you do Finance vs. Cash then it is reported you made perfect payments (if you keep up with them) and will help your score and also history for when you may need Financing in the Future vs when you pay cash a lot of the time they do not Report that information so it looks like you never paid on a vehicle and can put you in bad spot possibly in the future.    ^^


Thank you again for additional info. I was aware of that one. I have never financed a car. I suppose that could be tricky in the future if I needed to finance. Hopefully a good beacon score would be helpful. If not there is always a hooptie.  lol

Message 18 of 42
Save-n-Invest
Frequent Contributor

Re: Car buying experience


@sccredit wrote:

@Girlzilla88 I hear ya on cash vs finance and getting the best deal. We already have 2 car loans (one will be paid off tomorrow and the other is a lease), will need to finance the lease replacement and are looking to buy a house next year. In this case buying cash made the most sense for us as we weren't looking high dollar (we paid $12k even out the door). We didn't want another loan on our credit. We even got creative with how we paid for it so that they wouldn't even pull credit. $3k cash, $3k on credit card and $6k on debit card. All they did was the OFAC report so there was no hard credit pull.

 

Overall I do agree that most people would benefit from financial and "life" education. It was not something I learned from my parents (my folks have always been a hot mess of finances), my wife didn't learn it from her parents (even though they are great with money) and after we got married we figured it out on our own. We are pretty open with our kids and they get lessons from us all the time about credit, money, savings, finances, etc.


My parents were always in the open about funds. I didn't get the details of minutae but was aware of things. I was in the first year of high school when they bought a car. My mom told me to write the check and she will sign it. I Never wrote a check before. I guess the lesson was that cars were costly. Having me write that check was her way of teaching. Two years later I backed that car into a tree. That was another really good story but not on topic. 

 

I grew up in a home where saving was a religious experience, debt was the devil and cash was king. Things don't always work that way now. It did serve me well over the years. I've never had a written budget. I know it's recommended. I seem to have an internal limiter that alerts me when to stop spending. 

 

It's interesting how each family deals differently with money. 

Message 19 of 42
Save-n-Invest
Frequent Contributor

Re: Car buying experience


@Girlzilla88 wrote:

@Save-n-Invest      It's not really incentives but more like some discounts that may be applied.     Incentives usually do come to only new and a lot are issued by the Make for example but some Dealerships can offer their own discounts/incentives for their store so that is why sometimes when you are calling around one may have an SUV for 32k NEW while another store may offer that same trim for 40K NEW because maybe that second store is not having specials at time on SUVs but rather Trucks that month....It's always good to ask especially when you are interested in a specific special if you have to go through a specific lender to get it (that will help save you on inquiries too!)     Some will note it on their site but some expect you to know what to ask about qualifying which isn't fair for a lot of cases.     Especially those that are used to paying Cash for a car but keep in mind too sometimes Financing you still end up paying less (even if you have the Cash) and I know I know that may sound REALLY backwards but for example say if they are offering 0% or 2.9% apr or whatever special and the Total amount ends up being 29K with all the discounts added in for Financing since you qualify then if you try to pay Cash you are opting out of the Discounts you could qualify for which would make you end up paying 35K or more on that same vehilce when you could do the Financing and use the Cash (let's say you had 35k) to pay towards the financing (pay it off in 3-6 months unless you want to stretch it out to a year that would work too) but then you can save that 6k doing it Financing vs. Cash.       But a lot of people don't take that into consideration or think Cash is King so you will automatically get a better deal better cash which isn't the case.       New is always better for Discount/Incentives and Warranty Reason but keep in mind another side story if they put you in a higher apr to start because New is easier to be approved and likely with a lower Apr but if they put you in a New that has we will say 11% or so apr (just throwing random number) and you end up liking the vehicle a lot of people don't know or think to refinance it at the 13th month so that could drop them below 5% depending on if they make their payments on time etc and that will also help lower their payment.      If they do NOT end up liking the vehicle then the best time to Trade/Upgrade your vehicle is the 1-2 year mark (13 plus months so a full year is reporting) for best results and also so your vehicle doesn't depreciate more the more you drive it.       That's why sometimes people that pay on it 4 years or so and still have a lot left end up upside down on the next vehicle because at this point the Value has went down so much compared to what they started and especially how many miles they put.      There is the rare case that the person kept in the garage and only put 5k miles on it in 4 or 5 years lol so of course their value will hold a lot better but ......For the rest of us LOL.        And now I'm off track and lost where I was going with this conversation lol.....but yes there is so much involved.   XD


I was able to follow. You're not off track. I've read that dealer financing can save on the overall purchase in some cases. I've just never done it. When I buy a car I keep it and drive the wheels off. The cars are well maintained and to date have held up well. Hope I didn't just jinx myself. 

Message 20 of 42
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