Well I also decided to start a thread that focuses on auto Financing.
The Ideal Way to Shop For A Car/SUV:
1>Decide how much you can afford. This is the most important step! Know your budget whether its a monthly investment or a 1 time investment know how much you can afford. example: If you can afford $400 per month for a vehicle(not including insurance) and you have $1,000 to put down you need to be around $20k
MSRP= $20,000.00 Tax= $ 1,650.00 Tag= $ 150.00 Rebate= $ 1,000.00 Down Pymt= $ 1,000.00 Trade $$$= $ 0.00 Trade Payoff= $ 0.00 APR(Market Value= 6.17% Finance Term(months) 60 Total Amount To Be Financed=$19,800.00 Monthly Payment= $ 384.35
Once you decide on a particular make/model. Go Look at it in person. Test drive if it. Make sure you like it. Test drive the model down.For example: I prefer the corolla over the camry. Corolla has a timing chain vs a belt, smoother transmission, pretty sporty with a 5sp too.
Then Test drive the competitor's comparison vehicle. For example: 1999 Camry CE 5sp(24k) vs 1999 Contour SVT(24k). Dollar for Dollar the the SVT out performs, looks better, and gives you more value for your money. Moonroof, 6 disc changer, leather, dual exhaust, all standard.
My point is, you might be surprised.
3> More research Once you decided on a vehicle. Research how much insurance will cost you. Dont just check with your current provider use the internet. You may lower your insurance.
4>Know You Beacon(Credit, FICO) Score Make sure to get a report that shows your score. I prefer Equifax, because you can monitor and dispute all 3 agencies from one location Example#1 On a $150,000 30-year, fixed-rate mortgage: FICO® Score Your interest rate Your monthly payment 760 - 850 5.59% $860 700 - 759 5.81% $881 680 - 699 5.99% $898 660 - 679 6.2% $919 640 - 659 6.63% $961 620 - 639 7.18% $1,016
5> Shop for a loan Its better to be preapproved than to just walk into a dealer and hope for the best financing Use the internet!!! There are many online sites that you can shop for a loan. Check your own bank or credit union. For example, my credit union, Navy Federal, goes loe as 2.9%.
I would even apply with the MFG ahead of time Ford Credit Toyota GMC http://www.capitaloneautofinance.com/Public/Home/Default.aspx https://www.eloan.com/s/show/auto?context=auto&transtype=&sid=u-bTnbeEDmFhBsNDDzLer6vVl7Y&user=lkc_AID9327565ID267874:SID&mcode= Bankrate.com
Heres my point Ford Focus Rebate= $2500 or 4.9% for 60 months
I would take the rebate and finance with my Credit union for 4.9% for 60months
6>The negotiation Never tell the dealer/Saleman that you are financing with them or another bank during the negotiation for the vehicle. After You get the price you want and you are sitting in front of the finance guy, let him make his offer. Remember you did your homework, you got your price, you know how good or bad your credit is, you know wha the average apr% is, you should already have a loan in place, You know what your payment should be. Let him make his offer. It will go something like this: He will have a sheet of paper, might even show you his screen, hell present you with three payment options; a>$429 b>$489 c>$536 All Three will have an extended warranty built into the price.
X them all out and write Your Payment($384 from the example) including the warranty He'll probably jump up and leave the cubicle and bring in a salesmanager or your salesman. If he's a former salesman he'll negotiate from there.
My advice is to never, let me repeat, NEVER, by the warranty from the dealer. You can purchase the same warranty online.
If he beats your rate then do business with him. If he quotes you a higher rate than you can get from another source tell him you are already aproved. Here's a trick. If your rate is 6.17% and he quotes you 7% tell him you are approved for 5.17% from your bank, but dont tell him what bank. Ask him can he beat your rate.
7>Warranty If you must have an extended warranty shop online: Warranty Direct Click for Warranty example based on 20k examble above: Remember your payment was $384 But he quoted you: a>$429 b>$489 c>$536
Now your financing a>$429=22K b>$489=24K c>$536=27K
The most expensive warrant I have seen when you buy direct is only $1600 I guarantee The most expensive loan he want you to buy from him becuase he is so concerned about your family's saftey, isnt any better than one you can buy direct.TRUST ME!!!
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************************************************NOTE************************************************ I KNOW ALOT OF YOU DIE HARD FINANCE FORUM GUYS HAVE LOTS OF GREAT ADVICE THATS WHY I HAD THIS THREAD MOVED TO THE FINANCE FORUM. HOWEVER IT WOULD BENEFIT THIS THREAD GREATLY IF YOU ALL TAKE THE TIME TO READ THE THREADS(PLURAL) BEFORE YOU POST. I'VE BEEN RUNNING THESE THREADS FOR OVER A YEAR AND IT BECOME REDUNDANT TO HAVE THE SAME INFORMATION REPEATED, REWORDED, AND/OR REPHRASED. THIS ISNT A NEW THREAD, EVEN THOUGH ITS NEW TO FINANCE FORUM. THANKS IN ADVANCE.....MRBLACKPCS ************************************************NOTE************************************************
Message edited by: mrblackpcs on 2005-08-15 14:33:40 CDT
Good advice. You should not use blue on black background because it's hard to read. There are some spelling mistakes so I hope FW will have a spellcheck in the future.
triggerhappy007 said:Good advice. You should not use blue on black background because it's hard to read. There are some spelling mistakes so I hope FW will have a spellcheck in the future.
Too much info for me to worry about spelling...lol
mrblackpcs2 said:triggerhappy007 said:Good advice. You should not use blue on black background because it's hard to read. There are some spelling mistakes so I hope FW will have a spellcheck in the future.
Too much info for me to worry about spelling...lol
Econometrician said:mrblackpcs2 said:triggerhappy007 said:Good advice. You should not use blue on black background because it's hard to read. There are some spelling mistakes so I hope FW will have a spellcheck in the future.
Too much info for me to worry about spelling...lol
Good advice, except for the warranty info. Using those third-party warranty companies is asking for major headache. Check out the Edmunds warranty forums for some horror stories.
If you really need a warranty (you're probably better putting the money in the bank and saving it for any repairs), go online and find a dealer of the car make you are buying who sells the factory extended warranty on line. You can buy a warranty from any dealer that is good at any other dealer of the same make. And always remember that most cars come with at least 3/36,000, so you're really only getting any warranty time above and beyond the included factory warranty.
icojones said:Good advice, except for the warranty info. Using those third-party warranty companies is asking for major headache. Check out the Edmunds warranty forums for some horror stories.
If you really need a warranty (you're probably better putting the money in the bank and saving it for any repairs), go online and find a dealer of the car make you are buying who sells the factory extended warranty on line. You can buy a warranty from any dealer that is good at any other dealer of the same make. And always remember that most cars come with at least 3/36,000, so you're really only getting any warranty time above and beyond the included factory warranty.
the warranty u get from the dealer are the same that u can get online. TRUST ME! I use to sell them And some warranties cover things the factory doesnt
Being that I'm young (22), with relatively unestablished credit, even though my credit is good for my age,
Your age has nothing to do with your credit
is there anyway I can negotiate getting financing with the dealership?
Follow the steps here
I walked into an Infiniti dealership 4 months ago and they told me there's no way I'm getting financing without a cosigner,
Well that could be more than a credit issue, Could be a debt to income ratio. You might not have the income to justify that type of car. Whats your beacon score?
but their financing would have been set up by a bank that they deal with. Now I plan on dealing with Chevy/GM, who has their own financing institution, so perhaps I may have better luck? I would be able to pay in full on the spot, however, I have determined that financing would be a better idea for several reasons (mainly as a good credit builder). What can/should I do to convince them to give me financing? Thanks in advance for your help and advice!
mrblackpcs2 said:Well I also decided to start a thread that focuses on auto Financing.
The Ideal Way to Shop For A Car/SUV:
1>Decide how much you can afford. This is the most important step! Know your budget whether its a monthly investment or a 1 time investment know how much you can afford. example: If you can afford $400 per month for a vehicle(not including insurance) and you have $1,000 to put down you need to be around $20kIn the true spirit of the finance forum, save that $400 for six months, add it to your $1,000 down payment, and go buy yourself a decent $3,400 used car.
dcwilbur said:mrblackpcs2 said:Well I also decided to start a thread that focuses on auto Financing.
The Ideal Way to Shop For A Car/SUV:
1>Decide how much you can afford. This is the most important step! Know your budget whether its a monthly investment or a 1 time investment know how much you can afford. example: If you can afford $400 per month for a vehicle(not including insurance) and you have $1,000 to put down you need to be around $20kIn the true spirit of the finance forum, save that $400 for six months, add it to your $1,000 down payment, and go buy yourself a decent $3,400 used car.
if thats the case why buy a car, why not buy an electric scooter. i see how you average 3.4 posts per day: useless posts
dcwilbur said:In the true spirit of the finance forum, save that $400 for six months, add it to your $1,000 down payment, and go buy yourself a decent $3,400 used car.exactly.
didYOUsearch said:dcwilbur said:In the true spirit of the finance forum, save that $400 for six months, add it to your $1,000 down payment, and go buy yourself a decent $3,400 used car.exactly.
and your over 7.5post per day. do you actually say anything worth while or r u just a hype man
mrblackpcs2 said:if thats the case why buy a car, why not buy an electric scooter. i see how you average 3.4 posts per day: useless postsGee thanks for the compliment, Sunshine! None of your advice above is bad, per se, but buying a new car, and financing it to boot, is one of the worst financial decisions you can make.
dcwilbur said:mrblackpcs2 said:if thats the case why buy a car, why not buy an electric scooter. i see how you average 3.4 posts per day: useless postsGee thanks for the compliment, Sunshine! None of your advice above is bad, per se, but buying a new car, and financing it to boot, is one of the worst financial decisions you can make.
however the point isnt whether its a sound decision, rather to help people make the best choices when they decide to finance a vehicle.
my question to you is why subscribe to a thread if you arent gonna make any viable input to it?
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