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New. On new car number number number seven; never put more than 40K on any of them. I subscribe to the Christine theory of automobiles-"ain't nothin' finer than the smell of a new car, 'cept maybe for *****."
I blame this on being relegated to driving parents' neglected beaters that were in the shop or stranding you on a regular basis in my formative driving years.
I think you've gotten taken so many times, you think you know how shop for cars. If you think so...maybe the five years spent in the car sales business was just a weird dream.
BS. It's a manufacturer incentive. You can always negotiate.
What does it being a manufacturer incentive have to do with anything? Are you gullible enough to believe that when the manufacturer says to the dealer, "You must not charge interest on this car" that it's just that at face value? LOL! The dealer can attach any gotchas to this gimmick they want, and often do. The manufacture is not going to penalizing them for not honoring a 0% gimmick. If they sell the car at or above MSRP (which they probably do with you each and every time) and are able to charge even the slightest amount of interest on the loan, the manufacturer isn't going to care. In fact, they'll gladly award hold back to that dealership no matter what. They just want to make sure the dealership is selling the cars. And most people don't qualify for the 0% and have to negotiate. Which by gauging the mentality of the general public, most don't want to have to negotiate more than what they need to and either don't get 0%, or have to accept one or more gotchas.
So I'm going to again say you don't know how to buy a car. The simple answer is "no" to all of the above. I've never paid sticker for a car in my entire life (or even close to it), and if a dealership tries crap like that, then you just...walk out. You don't have to accept anything. You are the consumer and there is no shortage of dealers. If you've accepted one of those "gotchas," then you have no one but yourself to blame. The sales prices and the financing are two separate and distinct things. If the dealership refuses to negotiate them separately, walk out. This isn't a hard concept.
Like what?. I thought I posted the like whats, but maybe I didn't. There are many things, such as agreeing to have all of your maintenance done at their dealership, or agreeing to an extended warranty, or accidental death insurance, or agreeing to a specific term when it doesn't suit you the best, or agreeing to pay no less than MSRP for the vehicle. You really think the dealership is going to make it that easy for everyone with decent credit to get this?
Yeah, I do. Why would you accept any of that? There's tons of dealerships waiting for your business. I've never had a dealership try to pull anything like that, and if they did, why would you do any business with them? There isn't any magic secret to this. Just leave.
That's absurd and incorrect. You can usually get a better deal by financing than by paying cash.
That's absurd and incorrect. If I buy a car, with cash, for $29,000, and you buy the same car, same price, but finance it for even a tenth or a percent of interest, it's still costing you more for that car than it's costing me. It's simple mathematics. As matter of fact, I think it was you in another thread that said you've gotten .9% interest rate on a vehicle before, but never really said you got 0% interest rate. So, you're still paying extra on that car.
First, I was referring to the misconception that you get a better deal by paying cash. My previous car was 0%" my wife's current car is 0%, and my current car is .9%. Now, simple mathematics - if I the money that I could have sunk into my car and instead invest at an average return of somewhere between 6% and 9%, I'm better off than the idiot who sunk all of his cash into a depreciating asset.
Or don't tie up tens of thousands of dollars in a car and simply make the bare minimum payments for as long as you want the car, and keep the rest invested.
Yeah, if you're an idiot. Invest the rest in something that is not easily liquid or high risk, lose your behind in the investment, and then wind up in a situation where you either dump the car quickly, need to pay it off, or have it repossessed. Paying the car in full not only gives you much more equity in the car, almost full equity in the beginning, but gives you an asset that has a much higher resale or trade value, while freeing up that monthly payment that could still be invested.
See above. But if you're tying your car payment to your investment performance, you're doing it wrong.
In short, nothing you've said is in way correct or good advice.
How do you figure? What kind of cars are you looking at where this is the case? For example, here are a few vehicles I've priced:
2006 Chevy Cobalt with 55,000 miles - $9500
2011 Chevy Cruze with 39,000 miles - $13,200
2015 Chevy Cruze (new) - $16,000
The new Cruze is not even twice as much as the 10 year old Cobalt, let alone 5x as much.
Did you pick the most expensive used Cobalt in the USA? I see 2006 Cobalts in Houston and NYC for ~$3000
0% interest rates from a dealership almost always come with strings attached. Such as no room for negotiating the actual price of the vehicle, the terms of the loan, or other qualifiers that the dealership can stick you with. More times than not, you're paying more for that vehicle at 0% than if you had just purchased it straight out or secured a 4% interest loan from your credit union prior to stepping foot on the dealership. If you're talking about keeping your money and investing it, you can still do that. Just take the money that would have been the car payment and invest that money on a monthly basis. That way you're still investing money that would have been tied up in a car payment, and you own a new car free and clear. that makes a lot more sense.
I always here this non sense and it's completely wrong. You never discuss financing until you decide on a price. I bought my last vehicle for 1500 under invoice with 0%.
If I can buy it with cash, then I can afford it. If you have to take out a loan, you cannot afford it.
Do not ever buy a new car unless you like flushing down your money down the toilet.
Why is this even a discussion? Are there that many stupid people out there who are so terrible with money (oh yeah, there are).
Completely disagree. Considering interest rates are so low, I see nothing wrong with financing a car. Considering a reliable car is required to get most people to work and back, one can easily look at it as an investment.
The way credit is working these days, if someone has good credit and they get a loan with low interest rates, the bank at least thinks they can afford the car.
Also, the more I think about it, if I had X dollars in my bank to buy a car, I could take X dollars, invest it into a mutual fund making 5 percent, finance teh car at 2 percent, and still be ahead.
If I can buy it with cash, then I can afford it. If you have to take out a loan, you cannot afford it.
Do not ever buy a new car unless you like flushing down your money down the toilet.
Why is this even a discussion? Are there that many stupid people out there who are so terrible with money (oh yeah, there are).
Says who? I could have easily afforded to pay cash for my 2014 Honda Civic EX, but why? I have excellent credit and was approved for an extremely low interest rate. Why hand over $21k cash when I can use that $21k for my business and use my money to make me more money? Given the nature of my business which thrives off me having excess cash on hand, I would have been a fool to dump that much money in one shot into a depreciating asset.
I buy used. Depending on the make, that depends on how many years old I'll buy. For Jeeps, we've had 3, all were around 2 years old when purchased. For Hyundai, 1 year (pretty cheap to begin with, depreciation didn't bother me much.) Porsche, 4-5 years (They lose almost half their value over that period, and the owners don't usually have them as daily drivers, so you can find low mileage ones easily.)
Acura... 2-3 years old. Best to still be under warranty until you figure out if you bought one with issues or not.
For BMW or Mercedes... It won't be brand spanking new, but it'll definitely still have the factory warranty or an aftermarket one if I buy it!
I always here this non sense and it's completely wrong. You never discuss financing until you decide on a price. I bought my last vehicle for 1500 under invoice with 0%.
Where at any point did you read in any of my posts to negotiate financing during or before agreeing on a sale price? At no time did I ever say such.
No other negotiation should take place until the sale price has been agreed upon. Period. Let me ask you, did you research the dealer cost before buying the car? You do know dealer cost does not equal dealer invoice? How do you know $1500 below invoice was a good enough deal? I mean, if you're happy with the deal, that's great. But if dealer cost was say, $6000 below the MSRP, you agreed to $1500 below - hopefully you're talking out the door price, they made $4500 profit, plus whatever hold back reward, let's say that's $1000, so about $5500 they made in the deal. Just that alone, they'd be happy to give you 0% financing. Technically, they could probably have sold the vehicle to you at dealer cost and still make money off of the hold back.
0% interest rates from a dealership almost always come with strings attached. Such as no room for negotiating the actual price of the vehicle, the terms of the loan, or other qualifiers that the dealership can stick you with. More times than not, you're paying more for that vehicle at 0% than if you had just purchased it straight out or secured a 4% interest loan from your credit union prior to stepping foot on the dealership. If you're talking about keeping your money and investing it, you can still do that. Just take the money that would have been the car payment and invest that money on a monthly basis. That way you're still investing money that would have been tied up in a car payment, and you own a new car free and clear. that makes a lot more sense.
Quote:
Originally Posted by skinsguy37
Where at any point did you read in any of my posts to negotiate financing during or before agreeing on a sale price? At no time did I ever say such.
No other negotiation should take place until the sale price has been agreed upon. Period. Let me ask you, did you research the dealer cost before buying the car? You do know dealer cost does not equal dealer invoice? How do you know $1500 below invoice was a good enough deal? I mean, if you're happy with the deal, that's great. But if dealer cost was say, $6000 below the MSRP, you agreed to $1500 below - hopefully you're talking out the door price, they made $4500 profit, plus whatever hold back reward, let's say that's $1000, so about $5500 they made in the deal. Just that alone, they'd be happy to give you 0% financing. Technically, they could probably have sold the vehicle to you at dealer cost and still make money off of the hold back.
Literally none of what you say is true. I know how car buying works. Your belief that low financing rates come with strings attached is 100% wrong.
You change your story so many times I can't keep track of what your point is.
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