Need Help Buying New Car

[EnFoRcEr_uPu]

To try and keep a long story short, our car pretty much died yesterday and we're going to need a new one by Monday. I've already figured to ask for $500 over invoice and get a quote from the dealership. Then I'll get the loan from somewhere else to avoid huge interest rates from the dealer. My question is, what is a good interest rate? I see 6.9% - 9% but I don't know if that's good or bad. Any help would be greatly appreciated.

Thanks!

[HOF44]

Our credit union right now is doing 5.24% with direct deposit, 5.74% without it. This is for 36/48/60 month loan 100% financed.

[EnFoRcEr_uPu]

I'm assuming that's a good rate? From what I understand, there is interest on the loan and APR, or are they the same thing?

[riggins44]

The interest rate depends on your credit score. Higher the score, lower the rate.
If shopping new compare any special interest rates ( i.e. 0%) from the mfg. to
using rebates and bank financing.

[ashburnskinsfan]

Negotiate to get the lowest price from the dealer, and bring your own financing.

APR and interest rate are the same concept, but may be quoted differently. HOF's numbers are reasonable. Work out how much you want to pay monthly, pick a term for the loan and your credit union will tell you how much you can finance.

[zoony]

Actually, a lot of times you'll find the best APR's are at the dealer.

Find your lowest quote before you go into buy the car. Say it's 5.5% or something similar.

Tell the dealer that you got 5% thru another institution, and can they beat it?

If they come back with 4.5%... take it.
If they come back with 5.0%... take it. (just tell them it's easier)
If they come back with 5.5%... tell them no thanks (and go thru the bank.)


That's what I did... my CU offered 5.5%. I got 4.5% from the dealer after I told them that the bank had offered 4.9% :)

....

[EnFoRcEr_uPu]

Actually, a lot of times you'll find the best APR's are at the dealer.

Find your lowest quote before you go into buy the car. Say it's 5.5% or something similar.

Tell the dealer that you got 5% thru another institution, and can they beat it?

If they come back with 4.5%... take it.
If they come back with 5.0%... take it. (just tell them it's easier)
If they come back with 5.5%... tell them no thanks (and go thru the bank.)


That's what I did... my CU offered 5.5%. I got 4.5% from the dealer after I told them that the bank had offered 4.9% :)

....

Did you need to show them any paperwork or was it just simply you telling them?

As for figuring out financing first. Could I simply call my bank, tell them the payments I'm looking for, get the rate and they can tell me how much I could take out? Then I could just add the down payment to that, and I would have the number for my maximum cost for a car...correct?

Sorry to sound so stupid here, I'm just trying to learn this as I go as I've kind of been thrown into this. And thanks for everything so far guys, you've been a huge help!

[SkinsFanMania]

To try and keep a long story short, our car pretty much died yesterday and we're going to need a new one by Monday. I've already figured to ask for $500 over invoice and get a quote from the dealership. Then I'll get the loan from somewhere else to avoid huge interest rates from the dealer. My question is, what is a good interest rate? I see 6.9% - 9% but I don't know if that's good or bad. Any help would be greatly appreciated.

Thanks!

You'll save a hell of a lot of money if you use edmonds.com or cars.com. You can still check the cars out at the dealership, but using the internet will give you the best price at all of the dealerships and the rates are 2 to 3k less when purchased this way. I purchased my new car using edmonds.com and also was working with costco.com and cars.com to help me narrow down my search.

Good luck!

[ashburnskinsfan]

If you're looking at Toyota, Carmax Toyota in Laurel, MD was very aggressive in their pricing when we bought a new Sienna there a few years ago. I've heard their high volume allows them to do this. I was happy to give the business to our local dealership as they had given us a few test drives, but they said they couldn't even get into the same ballpark as the price Carmax quoted us.

[Duncan]

To try and keep a long story short, our car pretty much died yesterday and we're going to need a new one by Monday. I've already figured to ask for $500 over invoice and get a quote from the dealership. Then I'll get the loan from somewhere else to avoid huge interest rates from the dealer. My question is, what is a good interest rate? I see 6.9% - 9% but I don't know if that's good or bad. Any help would be greatly appreciated.

Thanks!

But a used car and pay cash, that's my advice. If you have to borrow still buy used. The first couple years of depreciation on a new car is brutal.

A good rule of thumb is to borrow money for assets that appreciate and pay cash for those that depreciate.

[gray]

What kind of car are you looking for? I am the ISM (internet sales manager) for 5 stores and would be glad to help you if I can.

[Chump Bailey]

To try and keep a long story short, our car pretty much died yesterday and we're going to need a new one by Monday. I've already figured to ask for $500 over invoice and get a quote from the dealership. Then I'll get the loan from somewhere else to avoid huge interest rates from the dealer. My question is, what is a good interest rate? I see 6.9% - 9% but I don't know if that's good or bad. Any help would be greatly appreciated.

Thanks!


Get the invoice price from Edmunds.com - start at 4% below that price. The dealers are reimbursed for it - forgot the technical term they use. Just got a 2007 Civic for less than $500 over the invoice price. If possible - go on a rainy day or around closing - helps get the wheels greased a little in your favor. Depends on how the dealership is run too - some are just total @ssholes with very poor tact and customer service skills.

[Leonard Washington]

But a used car and pay cash, that's my advice. If you have to borrow still buy used. The first couple years of depreciation on a new car is brutal.

A good rule of thumb is to borrow money for assets that appreciate and pay cash for those that depreciate.

i like that idea, but sometimes is difficult to be sure that your car wasn't mistreated. i heard some horror stories about cert preowned and 100k warranties on used cars that made me nervous.

i always wanted to get out of model year new cars. (new cars that didn't sell.) i heard they ultimately get shipped to other countries or used for parts but there was a used car place in tuscan arizona that had low mileage (usually less than 1/200 miles) new cars for great prices with original (first owner) warranties.

[APBT]

If you get a car I recommend the Dodge Charger R/T with the Hemi. I love mine. Its fast beatiful and roomy. It does need a more beefier sound, but it's an awesome car believe me.

[Blondie]

Talk to TK.

He might be able to get you a good deal.

[PleaseBlitz]

I'm assuming that's a good rate? From what I understand, there is interest on the loan and APR, or are they the same thing?


Interest rate and APR are very similar. APR includes any fees they charge you up front in association with the loan and is the best "true" indicator of the amount of money the loan is going to cost you total.

[Mark The Homer]

But a used car and pay cash, that's my advice. If you have to borrow still buy used. The first couple years of depreciation on a new car is brutal.

A good rule of thumb is to borrow money for assets that appreciate and pay cash for those that depreciate.

This is true. The car I bought was used. Nowadays, used cars last a long time. The only problem is, the interest rate will be a bit higher on a used car.

[rtbasye]

If you're looking at Toyota, Carmax Toyota in Laurel, MD was very aggressive in their pricing when we bought a new Sienna there a few years ago. I've heard their high volume allows them to do this. I was happy to give the business to our local dealership as they had given us a few test drives, but they said they couldn't even get into the same ballpark as the price Carmax quoted us.

minivan huh? that sucks- too bad you couldnt get a big ballsy 4x4 for tailgating and stuff (I too own a minivan :doh: altough its my wifes car :( )

[Duncan]

i like that idea, but sometimes is difficult to be sure that your car wasn't mistreated. i heard some horror stories about cert preowned and 100k warranties on used cars that made me nervous.

i always wanted to get out of model year new cars. (new cars that didn't sell.) i heard they ultimately get shipped to other countries or used for parts but there was a used car place in tuscan arizona that had low mileage (usually less than 1/200 miles) new cars for great prices with original (first owner) warranties.

Yeah, there is always that risk with a used car, but if you do your homework you can avoid a lot of problems. You can buy a great car with 40K miles that is like new if you take the time to search. I drive my cars into the ground and stroke a check for the next one when the time comes.

I'd rather put my money in stocks and real estate.

[Duncan]

This is true. The car I bought was used. Nowadays, used cars last a long time. The only problem is, the interest rate will be a bit higher on a used car.

The key Mark is to start saving now for your next car so when the time comes you can pay cash. Trust me put a pencil to it and tell me what you ultimately pay for a depreciating asset when you finance a car. If you haven't you will be shocked.

[EnFoRcEr_uPu]

Unfortunately a charger is out of the question(ONE DAY THOUGH!). With a wife, son, and another on the way, we need something roomy. I think we're leaning towards a 4-door sedan. But I won't be able to spend more than 15k total. =\

[PleaseBlitz]

Unfortunately a charger is out of the question(ONE DAY THOUGH!). With a wife, son, and another on the way, we need something roomy. I think we're leaning towards a 4-door sedan. But I won't be able to spend more than 15k total. =\

E_u, FWIW, i have an 2003 Nissan Maxima (4 door sedan). Its got a ton of room, is pretty darn quick, and you could probably find one around your $$$$ range.

I love that car. You should look into them, see if you like'em.

[mboyd784]

Actually, a lot of times you'll find the best APR's are at the dealer.

Find your lowest quote before you go into buy the car. Say it's 5.5% or something similar.

Tell the dealer that you got 5% thru another institution, and can they beat it?

If they come back with 4.5%... take it.
If they come back with 5.0%... take it. (just tell them it's easier)
If they come back with 5.5%... tell them no thanks (and go thru the bank.)


That's what I did... my CU offered 5.5%. I got 4.5% from the dealer after I told them that the bank had offered 4.9% :)

....

As the former F&I manager at many dealerships, let me make a couple of points.

1) rates have gone up somewhat since the above purchase, I know of no bank with car loans below 6% that dont require a 20-30% down payment and a lengthy, spotless credit file. As someone in their 20s, it is not likely that you will meet this criteria.

2) Credit Unions frequently offer auto rates significantly lower than that of "commercial" lending institutions. This option often requires an alternate set of criteria and presents an alternate set of potential hazards. You should research this online.

3) Factory financing can offer 0-4.9%, but almost always at the loss of any rebates and these "captive" lenders can be extremely difficult to deal with in certain circumstances.

4) Avoid leasing unless it absolutely, completely suits your situation.

5) Do your research. Walk into a local branch - BB&T is a good start or whereveryou bank - and ask what their current rates are. Go from there.

6) On a new car, 500 over might be a good deal, 500 below might be a good deal, full sticker might be a good deal. It really depends on the supply/desirability of the model in question.

7) On used, Kelley Blue Book is a good place to start your research. However, it can't replace real market knowledge so take the time to do some shopping even if it's only on ebaymotors. The best cars and the best deals are most often found on low-mileage trades. These, however, don't stick around the lot long. A little luck is always involved.

8) PM me if you have a specific question. It's always my pleasure to be able to assist a fellow member of ES.

Good Luck.

[ashburnskinsfan]

minivan huh? that sucks- too bad you couldnt get a big ballsy 4x4 for tailgating and stuff (I too own a minivan :doh: altough its my wifes car :( )

It's not my car, but I'd much rather drive it than an SUV. You can actually take corners in it. :laugh:

On vacation I often rent SUVs to remind myself why I don't want to own one. :D

[ashburnskinsfan]

duplicate - pls delete

[EnFoRcEr_uPu]

As the former F&I manager at many dealerships, let me make a couple of points.

1) rates have gone up somewhat since the above purchase, I know of no bank with car loans below 6% that dont require a 20-30% down payment and a lengthy, spotless credit file. As someone in their 20s, it is not likely that you will meet this criteria.

2) Credit Unions frequently offer auto rates significantly lower than that of "commercial" lending institutions. This option often requires an alternate set of criteria and presents an alternate set of potential hazards. You should research this online.

3) Factory financing can offer 0-4.9%, but almost always at the loss of any rebates and these "captive" lenders can be extremely difficult to deal with in certain circumstances.

4) Avoid leasing unless it absolutely, completely suits your situation.

5) Do your research. Walk into a local branch - BB&T is a good start or whereveryou bank - and ask what their current rates are. Go from there.

6) On a new car, 500 over might be a good deal, 500 below might be a good deal, full sticker might be a good deal. It really depends on the supply/desirability of the model in question.

7) On used, Kelley Blue Book is a good place to start your research. However, it can't replace real market knowledge so take the time to do some shopping even if it's only on ebaymotors. The best cars and the best deals are most often found on low-mileage trades. These, however, don't stick around the lot long. A little luck is always involved.

8) PM me if you have a specific question. It's always my pleasure to be able to assist a fellow member of ES.

Good Luck.

Thanks a lot Boyd. I'll certainly hit you up if I come across anything confusing. I really appreciate all of your help guys. LONG LIVE ES!!

[Gallntfox]

As the former F&I manager at many dealerships, let me make a couple of points.



2) Credit Unions frequently offer auto rates significantly lower than that of "commercial" lending institutions. This option often requires an alternate set of criteria and presents an alternate set of potential hazards. You should research this online.




What potential hazard is there when utilizing a credit union. Over the Summer I financed a vehicle for my wife thru Pentagon FCU and the process was painless. Also utilized Edmunds.com for invoice price and ended up walking out of the dealership with a car that was about $1000 under invoice including freight.

[gray]

As the former F&I manager at many dealerships, let me make a couple of points.

1) rates have gone up somewhat since the above purchase, I know of no bank with car loans below 6% that dont require a 20-30% down payment and a lengthy, spotless credit file. As someone in their 20s, it is not likely that you will meet this criteria.

2) Credit Unions frequently offer auto rates significantly lower than that of "commercial" lending institutions. This option often requires an alternate set of criteria and presents an alternate set of potential hazards. You should research this online.

3) Factory financing can offer 0-4.9%, but almost always at the loss of any rebates and these "captive" lenders can be extremely difficult to deal with in certain circumstances.

4) Avoid leasing unless it absolutely, completely suits your situation.

5) Do your research. Walk into a local branch - BB&T is a good start or whereveryou bank - and ask what their current rates are. Go from there.

6) On a new car, 500 over might be a good deal, 500 below might be a good deal, full sticker might be a good deal. It really depends on the supply/desirability of the model in question.

7) On used, Kelley Blue Book is a good place to start your research. However, it can't replace real market knowledge so take the time to do some shopping even if it's only on ebaymotors. The best cars and the best deals are most often found on low-mileage trades. These, however, don't stick around the lot long. A little luck is always involved.

8) PM me if you have a specific question. It's always my pleasure to be able to assist a fellow member of ES.

Good Luck.

:applause:

It's is finally good to hear someone speak intelligently about the car business. As someone who is in that business I get so tired of hearing all the crap people say about us. We are hear to make a living and not every dealership will rip you off so to speak. As I previously stated to you I will be glad to help you if I can.

[skinfan2k]

dont worry about depreciation if u plan on buying a new car.. if u know u will keep this car for 10+ years, then who cares about who much it will worth in 10 yrs+

[EnFoRcEr_uPu]

Well, right now we're still teetering on new/used. My assumption is we'll end up with a used/certified car because it fits our budget better. We've finally decided to look into a 4-door mid-sized sedan in the range of $13k-$14k tops.(need to leave room for tax, tags, etc...). We'll be putting $4k down on the car so we wanted to keep our payments at no more than $200/mo. I found a 2006 G6 and Impala for about $5k-$6k under the KBB price, but I've also got people leaning me towards cars like a Camry or Accord.

I apologize for the numerous questions here guys, I just really didn't expect to have to cram this in so fast. Chances are I'll be renting a car next week to give myself a little more time to look at things.

[skinfan2k]

i know my cousin got a accord for i think 22 but he has 5 yrs to pay and the interest was basically 0.

[mboyd784]

Well, right now we're still teetering on new/used. My assumption is we'll end up with a used/certified car because it fits our budget better. We've finally decided to look into a 4-door mid-sized sedan in the range of $13k-$14k tops.(need to leave room for tax, tags, etc...). We'll be putting $4k down on the car so we wanted to keep our payments at no more than $200/mo. I found a 2006 G6 and Impala for about $5k-$6k under the KBB price, but I've also got people leaning me towards cars like a Camry or Accord.

I apologize for the numerous questions here guys, I just really didn't expect to have to cram this in so fast. Chances are I'll be renting a car next week to give myself a little more time to look at things.

I've heard good and bad about the G6. I DO NOT recommend an Impala - unless it's a 1964! The Camry and Accord speak for themselves. You owe it to yourself to check out the Mazda 6S and the Subaru Legacy, both fine cars. Also, I've been impressed by the Ford Fusion/Mercury Milan, both are quite new so used ones will be scarce. Dealers will be quite flexible on new stock though, I promise.

[HOF44]

but I've also got people leaning me towards cars like a Camry or Accord.


Depending on how you deal with your cars, resale value can be very important. If you plan on driving it till it dies, then resale value is not that important, if however like me you trade about every 4 years retention of value is very important.

I have stuck with Toyota my last 3 cars and have done very well. Edmunds has a section that projects value retention on vehicles, you should check it out if you think future value might be important to you.

[EnFoRcEr_uPu]

Luckily, depretiation isn't something that I'll need to worry about, as I plan to have the car for a while. I too have heard that Impala's(much like the Malibu) have an extensive history of problems. As well, the G6 seems like a great car(with suprisingly good crash test ratings), but might not be as large as I'm looking for(I'll find out tonight when I go to look at it).

The downside right now is that my price bracket is making things somewhat difficult, as for about $3k-$4k more, my selection would be MUCH larger and easier to sort through(oddly enough). So a fusion really is out of the question at this time, although I have heard that are excellent cars, from Car and Driver as well.

People tend to say shopping for a car is fun, but I guess those people had enough money and time to really look around! :laugh: