Purchasing a car! Help! (sales, apartment, car insurance)
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I just moved to the Hyde Park area. I am in need of a car ASAP with a budget. I am looking into new compact cars with a maximum budget of $20,000. Based on this budget and some reviews, I have basically settled between a 2012 Hyundai Elantra vs. 2012 Ford Focus. I mainly need this for my daily commute to school on Lake Shore Drive.
DOes anyone have any tips between the two models?? Any particular Hyundai or Ford dealers you would recommend??
In fact, I am a first time car buyer, so all of this is new to me... any tips you can share will be very appreciated!! In CHicago, how much additional fees beyond the bare price of the car should I anticipate?
ONce you meet with a dealer, negotiate the price, fill out the paperwork right there... do you make the payment and literally take the car home? Or does it need a few days before I can actually take it home with me? I intend on paying the whole sum upfront.
How about car insurance - do you get a quote before you purchase a car, and have it set up to start around the date of your purchase? Or can you take care of this at the dealer's??
Thank you so much in advance to whoever can help me out!
...
In fact, I am a first time car buyer, so all of this is new to me... any tips you can share will be very appreciated!! In CHicago, how much additional fees beyond the bare price of the car should I anticipate?
ONce you meet with a dealer, negotiate the price, fill out the paperwork right there... do you make the payment and literally take the car home? Or does it need a few days before I can actually take it home with me? I intend on paying the whole sum upfront.
You take it home that day. If you are financing with the dealer, there is a chance, if your credit is bad or you misrepresented something, that they will ask you to bring it back or even repossess it if you don't return it, but assuming you have reasonable credit and income, you'll be fine.
There will be sales tax and title fees and registration fees. You can usually include that in the financing.
Quote:
Originally Posted by luckyducky87
How about car insurance - do you get a quote before you purchase a car, and have it set up to start around the date of your purchase? Or can you take care of this at the dealer's??
If you get quotes ahead of time for the models you're considering, you can establish a relationship with your preferred insurance company ahead of time and then just call them with the VIN number while you're at the dealer. I know with State Farm they'll email you a temporary proof of insurance card, and imagine any major company can do that. When I went with a friend to buy a car, he just called State Farm from the dealer, gave them the car info, paid the premium, got an email instantly, and drove home.
For a lot less than $20,000 you can get a used Japanese luxury car. Unlike the German luxury cars, they're reasonable for repair costs and tend to be reliable for a lot longer. Even if it's out of warranty, buy one with less than 80,000 miles, check Carfax for major accidents, and put a budget of around $8,000 and you'll have a lot of room for repairs before you'd have spent $20,000. You'll also save in interest assuming you're not paying cash, and your insurance will be (much) lower, especially if you're able to pay cash. The friend who did State Farm got a 2001 Infiniti for about $7,000, put about $900 in it to fix the oxygen sensors, get new tires and brakes, and he's been fine for the past year. He could probably sell it for the same price he paid, so he's essentially gotten to use it for the cost of gas and the minor repairs/maintenance he's put into it. It has heated seats, power everything, great acceleration and handles well on streets and highways. All for 60% less than the purchase price you've set for yourself.
You take it home that day. If you are financing with the dealer, there is a chance, if your credit is bad or you misrepresented something, that they will ask you to bring it back or even repossess it if you don't return it, but assuming you have reasonable credit and income, you'll be fine.
There will be sales tax and title fees and registration fees. You can usually include that in the financing.
If you get quotes ahead of time for the models you're considering, you can establish a relationship with your preferred insurance company ahead of time and then just call them with the VIN number while you're at the dealer. I know with State Farm they'll email you a temporary proof of insurance card, and imagine any major company can do that. When I went with a friend to buy a car, he just called State Farm from the dealer, gave them the car info, paid the premium, got an email instantly, and drove home.
For a lot less than $20,000 you can get a used Japanese luxury car. Unlike the German luxury cars, they're reasonable for repair costs and tend to be reliable for a lot longer. Even if it's out of warranty, buy one with less than 80,000 miles, check Carfax for major accidents, and put a budget of around $8,000 and you'll have a lot of room for repairs before you'd have spent $20,000. You'll also save in interest assuming you're not paying cash, and your insurance will be (much) lower, especially if you're able to pay cash. The friend who did State Farm got a 2001 Infiniti for about $7,000, put about $900 in it to fix the oxygen sensors, get new tires and brakes, and he's been fine for the past year. He could probably sell it for the same price he paid, so he's essentially gotten to use it for the cost of gas and the minor repairs/maintenance he's put into it. It has heated seats, power everything, great acceleration and handles well on streets and highways. All for 60% less than the purchase price you've set for yourself.
I second this. I bought a 2004 Honda Accord a few years ago for a great price. It has leather, heated sets, sunroof, etc. I am thinking of selling it and will sell it for close to what I paid.
If you're still in school, why go $20K in debt? Are you planning on student loans as well? Don't go so far into debt at a young age.
A $7K car will take you to school as well and be as safe as a $20K car
If you get quotes ahead of time for the models you're considering, you can establish a relationship with your preferred insurance company ahead of time and then just call them with the VIN number while you're at the dealer. I know with State Farm they'll email you a temporary proof of insurance card, and imagine any major company can do that. When I went with a friend to buy a car, he just called State Farm from the dealer, gave them the car info, paid the premium, got an email instantly, and drove home.
I had a very similar experience with State Farm.
Spoke to them about what I thought I was going to buy and got some quotes on it. They gave me fax/contact info for the dealer to send over the final info after we agreed on a price. State Farm sent back some temporary insurance stuff so I was street legal and I drove out that day. It was a smoother process than I expected.
This chicken or egg situation of getting a first car and insurance was what drove me to use an insurance company with real humans that I could meet and talk to and call directly.
Buy a cheaper car.
20 k!
Are your parents buying it for you?
My thoughts exactly! I don't think the parents are financing, since they mentioned making payments.
It is thinking like this that causes a lot of young people to get out of school with a lot of debt (auto, school, etc).
Get a cheaper car, and put the extra money you would have spent towards your school. You don't want a lot of loans when you get out of school, trust me.
I would check with more than one insurance provider, too. Get online and get instant quotes from companies like Geico and Progressive. You might be surprised how much they differ. Insurance companies use complex formulas to balance their risks across various categories (location, type of car, type of coverage, demographics and history of driver, etc.), which means your rate can vary vary a lot (up to hundreds of dollars) from company to company for the exact same coverage, depending on whether that company is seeking or avoiding customers who fit your profile at that particular time.
My thoughts exactly! I don't think the parents are financing, since they mentioned making payments.
Actually, the OP said very clearly that they're paying cash up front.
Also, you'll notice that nowhere did the OP ask for advice on how much to spend on a car or what type of car to buy (other than opinions on two specific models). I'm not sure why so many people are answering questions that the OP didn't ask, when there are many good questions that were actually asked.
It's also funny to me that many think $20K for a new car is expensive on a forum where people seem to think that $1800 is a perfectly reasonable amount to pay per month for a 1br apartment.
It's also funny to me that many think $20K for a new car is expensive on a forum where people seem to think that $1800 is a perfectly reasonable amount to pay per month for a 1br apartment.
Guilty as charged
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