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If you're serious about getting a car loan, you don't have to get a car loan from the car dealership. If you have your loan already pre-approved via some other lending institution, then when it's time to buy the car (should you decide to do so) then you'd just be able to write a check.
If it were me, though, I'd drive the car you have for as long as it's good. You can also sell it yourself on Craig's List, usually dealers won't give you a very good price on turning a car in. Or if they do, they jack up the price of the car you're buying to make up the difference of getting a good return value on a car. Keeping everything separate - the loan - the new car buy and the old car sell would probably net you the most value.
Personally, I don't consider new cars a good value. They depreciate way too much as soon as you drive them off the lot. Buying a one or two year old car that has been well maintained and has already depreciated is perhaps a better deal.
I don't suppose driving your existing car for a year or two and saving up enough cash to buy another car is an option? Not having monthly car payments is a good thing. Cheaper insurance, too, when you don't have to cover the asset for a lending institution.
Oh, IMHO, you are right to be leery about your salary details filtering through the sales force in the dealership and the info getting to your friend as well. Should you complain, they'd more than likely say they didn't do it and the sales person isn't likely to be fired. At least, if he's selling cars for the dealership. The other option is to just let your friend know how much you make and if he doesn't like it he can suck rocks.
I don't see the harm.
Just because you go with him does not mean you have buy.
And to start off, I would not necessarily tell the salesperson up front that you are buying 2 cars. I would throw that card at the very last point. NICE DEAL... NOW WHAT IF I BUY AS WELL AND GET TWO?????
However, I would make sure that you are in need of a new car first and that dealership provides the make/model you want. But it seems like you are not in need or uncertain. Please do not make an emotional buy... #1 reason for buyer's remorse.
Financing should be done separately.. if they shove you in the same room at the same time, just tell the dealer that you would rather have it done separately so there is no way your friend will know your income. If the salesperson blabs... as NHDave mentioned, that should be a good reason for termination.
Good ideas, thanks
The car is getting up there but I think it can last awhile longer. There are a couple minor repairs needed (a couple new tires and I've been told the struts need to be replaced soon) but that's less expensive than purchasing a new car. It has a lot of miles (over 200K) but 90% highway miles.
If I say no, I can see both of them pressuring me at that point and I don't want to be in that position with no ability to walk. I'm sure he'll want to buy my car (rather than me trade it in) so he would try to get us to ride together in his car (the one he's turning in).
Your friend sounds like he may want to take advantage of you, if he really wants to flip your car for a profit (and pressuring you at that). Heck he may even be upset if you don't purchase together, if he believes it could save him some money in a "group buy"... I would probably just back out all together.
Tell your friend to man up and handle his own damn business on his own time. Then if he buys and likes the car he can refer you to the same salesman and possibly get a birddog.
If you're serious about getting a car loan, you don't have to get a car loan from the car dealership. If you have your loan already pre-approved via some other lending institution, then when it's time to buy the car (should you decide to do so) then you'd just be able to write a check.
If it were me, though, I'd drive the car you have for as long as it's good. You can also sell it yourself on Craig's List, usually dealers won't give you a very good price on turning a car in. Or if they do, they jack up the price of the car you're buying to make up the difference of getting a good return value on a car. Keeping everything separate - the loan - the new car buy and the old car sell would probably net you the most value.
Personally, I don't consider new cars a good value. They depreciate way too much as soon as you drive them off the lot. Buying a one or two year old car that has been well maintained and has already depreciated is perhaps a better deal.
I don't suppose driving your existing car for a year or two and saving up enough cash to buy another car is an option? Not having monthly car payments is a good thing. Cheaper insurance, too, when you don't have to cover the asset for a lending institution.
Oh, IMHO, you are right to be leery about your salary details filtering through the sales force in the dealership and the info getting to your friend as well. Should you complain, they'd more than likely say they didn't do it and the sales person isn't likely to be fired. At least, if he's selling cars for the dealership. The other option is to just let your friend know how much you make and if he doesn't like it he can suck rocks.
Thanks for the tips. I did get pre-approved awhile back. If I tell the dealer the rate and he could beat it then I would get pressured into going through them. I guess it doesn't really matter tho, they are mainly concerned with making a sale.
I was debating whether to keep the car or get another but leaning toward keeping it since that would be better financially (as long as I can get another year or two out of it with minimal repairs). It has a lot of miles but only 10 years old so not super old. Then again I have a long commute and don't want to get stranded but do have roadside assistance. I did cancel full coverage and just have liability so buying a new car will require paying more for insurance too.
I wouldn't give him that info because he knows other friends and relatives and word would get around. Some people are weird about that, they'll look down on you or get jealous depending on who makes more, nothing good comes out of that.
Your friend sounds like he may want to take advantage of you, if he really wants to flip your car for a profit (and pressuring you at that). Heck he may even be upset if you don't purchase together, if he believes it could save him some money in a "group buy"... I would probably just back out all together.
Yeah I think he's looking at making some money. He would benefit by getting a better deal on his new car, buying/fixing up/selling my car so he would definitely get the best out of the deal. I had a thought...what if I sell him my car and he sells it to someone and it breaks down on them and they hassle him? He might get a little pissed off at me even though I've already told him what's wrong with it (a few minor issues)
Tell your friend to man up and handle his own damn business on his own time. Then if he buys and likes the car he can refer you to the same salesman and possibly get a birddog.
Further complicating this is that when I do buy a car, the model that I want is the same model that he has (not because I want the same car as him but did a lot of research) If I do buy it from somewhere else (or from the same place without him), that will likely **** him off. Damend if you do, damned if you don't. I've found that family and business...and friendship and business doesn't really mix too well. I should have never said I was thinking about buying.
I personally keep business separate from friendship... But like other person said, you can go along w/out the intention of buying and if you like the numbers sleep on it. Still interested in the morning give them call and see if they match it with a reasonable trade offer.
Edit: Does not sound like a good friend, to force you do something financially irresponsible at his his benefit and get pissed if you don't. I'd shop for a new friend.
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