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Time for a new car... [Update! + Picture]
rfalias
Registered User regular
Registered User regular
So, I drive a '95 Chevy blazer full size. It's got like over 200k miles, A/C is broken, its a gas guzzler. I'm sure its on its way out.
Now seems like an amazing time to get a new car. They are basically blowing you to buy a car, and I'm sure the deals are great. Not only that, getting a compact would save me a lot in gas.
I have never bought a new car, I've had my current (and my first ever) vehicle since I was 16. (I'll be 23 in a few weeks)
My questions are:
Seeing as I know nothing about buying a new car, especially this day and age, what should I look for?
What companies have amazing deals now?
Which ones are going to keep faithful to warranties if they go under?
What are a typical month's payments like? (Cost wise)
I figured Honda/Toyota are always good options. They seem like reliable cars that would last me a while and they also seem to have decent mileage.
I have a CD that will roll over in May, and I will likely pull that out to help cover costs and what not.
Anything that can help me out would be awesome!
Also, Was looking at honda "estimate payments" deal...
I assume term is month of payments?
APR I have no idea how to find out "APR you believe you can obtain"
Now seems like an amazing time to get a new car. They are basically blowing you to buy a car, and I'm sure the deals are great. Not only that, getting a compact would save me a lot in gas.
I have never bought a new car, I've had my current (and my first ever) vehicle since I was 16. (I'll be 23 in a few weeks)
My questions are:
Seeing as I know nothing about buying a new car, especially this day and age, what should I look for?
What companies have amazing deals now?
Which ones are going to keep faithful to warranties if they go under?
What are a typical month's payments like? (Cost wise)
I figured Honda/Toyota are always good options. They seem like reliable cars that would last me a while and they also seem to have decent mileage.
I have a CD that will roll over in May, and I will likely pull that out to help cover costs and what not.
Anything that can help me out would be awesome!
Also, Was looking at honda "estimate payments" deal...
I assume term is month of payments?
APR I have no idea how to find out "APR you believe you can obtain"
rfalias on
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I'm a little tired of Honda's personally, but that is just me.
I drive a Lexus IS300 (gussied up toyota) that has been bulletproof. You can't go wrong with either one.
You said:
Seeing as I know nothing about buying a new car, especially this day and age, what should I look for?
Just plan out your needs, 2 door or 4 door? Gas mileage or performance? (or with the accord v6 a little bit of both). Truck or car. Standard or auto?
Narrow down what you are looking for. And then go from there.
What companies have amazing deals now?
I personally would never buy a new car. I am comfortable with mechanical work, and have a good trusted shop for the big things. I always buy used.
a) I save some money, and don't take the big depreciation hit of a new car.
b) It is easier to me to deal w/ individuals versus a dealership. I hate car delearships so much. Stealerships.
Which ones are going to keep faithful to warranties if they go under?
good question, I don't know.
What are a typical month's payments like?
Really depends. On how much financed, interest rate, term, etc...
I financed a little over 10k, for 4 years, @ 5.4% and my payment is $260
Remember that if your carry a note, you will have to have full coverage on the car. Run the numbers on that too. the main thing to avoid is getting "upside down" where you owe more than the car is worth.
So you got that at least.
Let's play Mario Kart or something...
I don't follow what that means... 0_o
One thing you didn't mention is safety. IIHS has some info worth reading on most vehicles.
Interest rates are pretty low right now.
Also, go test drive a compact from each company.
Don't buy the first car you test drive.
Also, never give them your keys when you first arrive. They may say something like they'll wash the car for free or something, but often times they will hold your car to pressure you into signing a deal. It happens at the more shady dealers, and if they do that when you first arrive get right back in your car and drive away.
And you want to buy a new car right now, the prices are the lowest they have been and used car prices are getting as high as they have ever been (because people are paying cash for used cars to avoid getting credit)
Look at the Hyundai Elantra Touring, the Honda Fit, or the Ford Focus. All very good cars. The fit is the smallest but noisiest. Elantra touring is the best overall, the Focus being a good middle road. And of course you have the Corolla or Civic.
Also, the insurance on the cars above are very cheap for the average driver who has no tickets or accidents.
And I recommend looking at the Kia Soul just because it has one of the best commercials made in the past 5 years. I'd buy the econobox on that alone.
Good gas mileage, IIHS rates it "Good" and from all of the people I know that have them and take care of them, honda's seem to last quite a while.
Being single, 2 door is quite alright.
I know some people are anti-new car, but after all of the hassle with my current car, I'll pass on used. I lost a lot of money going to the shop for various things.
Of course I'd go test drive any that interest me. I'd also end up dragging my parents along to the dealerships so they can spot some shisters or what ever, seeing as they have bought plenty of new cars in their lifetime.
I'm wondering how low they can get from list price on the honda website.
Yeah, in my driving time I've had a single speeding ticket when I was like 17. No accidents or anything.
Lower insurance cost would be nice. I'll be 23 by then too so hopefully its a tad lower too.
With Honda and Toyota, they won't move much on price. The Astra is cheap because it's a Saturn (Opel) and GM and they need to sell, sell, sell. A top of the line Saturn Astra coupe comes out to 18k after rebates and deals. That's with leather, premium sound, and better tires/wheels with 0% APR. Great deal.
The Honda Civic Coupe EX is around 20k. You could probably get down to 18,500k. Anything more would be hard to do, or they won't go low on APR.
I apologize, carry a note means you have a loan on the car.
If you are borrowing to pay for the car, you have to have full-coverage insurance on it. at least here. (I think its everywhere)
It is really hard to go wrong with a civic. Luckily the re-design is a couple of years behind us so they should have most of the bugs worked out. If you are able to drive a standard, I would get the 5-speed, it's more fun to drive IMHO. Great Gas mileage, good little car.
Also, look at the Scion TC, I like those alot, and in 5-speed mode they are pretty quick and fun to drive.
I know you are anti-used, but think about the CPO (certified pre-owned) option as well. It's the best of both, less money, but they have been checked out by a dealership. Honestly, Hondas and Toyotas aren't even high miles until 120K+
Ninja Edit: also, have your financing worked out ahead of time if you can. That gives you the power, and you know that the money issue is taken care of. Shop your rates, and get pre-approval for XX amount of pesos.
I've already started thinking on money and I do have good credit. I own my house and am always ontime with mortgage payments so that will help a lot I'd imagine.
All of this has been helpful.
I've been checking out all of the suggestions as well. The Civic still appeals to me a lot.
It doesn't have quite as good fuel economy as a civic, but it has superior handling and power, so for me it is the perfect balance between power and fuel economy.
There is also the Hyundai Genesis Coupe that just came out, it has serious power, and is also RWD. If you want to have a ton of fun driving, this could be a good car, and is incredibly cheap for the features and power it has.
I have a Civic and would recommend it to anyone. However, you probably won't get as good of a deal on a Honda or Toyota because they are not hurting for business like the Big 3. They don't have to play with their prices to compete because they have a better reputation, I think. Again, I could be mistaken.
The VERY first thing you need to do is check your credit.
You get to check it every year, for free. Here's the site:
https://www.annualcreditreport.com/cra/index.jsp
This site is mandated by the gov to provide you with a yearly free report. Use it.
It's not free credit report.com - that site is bullshit.
Which takes you to your next step: Credit report in hand, you need to shop around for the best loan. I'll tell you this right now - if you show up on a dealer lot, they will finance you there. And by finance, I mean stick you with a shitty interest rate, and probably jack the cost of the car. Dealerships get kickbacks from banks on financing - so before you go there, you lock that shit in at your local bank, or a credit union, or fucking whatever. You probably hear all those commericals, 0% interest APR for well qualified buyers. That's for folks with an 850 credit rating, which odds are great, aren't you. So don't believe that bullshit.
As for what you buy man, dealerships are hurting hard for buisness these days. Car sales are way fucking down, and with that knowledge in hand, you could probably get a good deal on a ride. Just make sure you use dealerships against each other. Visit two Honda dealerships, and make them haggle on price, and you'll come out pretty goddamn well I think.
I bought a 2007 Civic back in October after my trusty 98 Sentra was rearended really damn hard by a triple stereotype in a Yaris*. I do enjoy my Civic quite a bit, so I would say definitely do research(consumer reports and Edmunds tend to be good), but there's a reason why so many Civics are on the road.
*Asian women not watching the road because she was yelling at the kids in the backseat.
Currently painting: Slowly [flickr]
definitely see if you get in on a credit union. Often you can open a savings account with like $100 and you can reap the benefits. i bought my car in november, and it's a 7 year loan, my credit union says they'll give me lower payments each month, and 5 years. Just have to give them a $2500 down payment. Unless you get the special financing, (0% financing, no payments for a year, whatever) don't even bother with the dealership. I wish i hadn't.
Get a Mazda Miata/MX-5 sports car. I love every moment in my 1999 model. Used ones are normally in very good condition as people really care for the car so even an older one is a pretty safe bet plus they hold their value very well. Look at www.miata.net to get a feel for how people love it.
Only downside is that mileage is not great but it is not bad either.
Also, you're looking for a new car which means that you probably have multiple places to buy from within a given city (i.e. multiple Toyota, Honda, etc. dealerships). This means several things:
1) You can make the dealerships compete for your business: get online price quotes from them and ask them if they are willing to beat or match the price.
2) If you sense that a dealership is being shady with you, leave - you can get the same car elsewhere without feeling uncomfortable.
You might consider checking the tax rates in the counties around you. When I bought my car a few months ago, the city/county I bought it from had lower taxes than the one I lived in, saving me a little more.
This is really good advice right here.
If you show up on the lot with a loan ready to go, give the financing guy 1-shot to give you a better deal. Best case, you get a better rate from the dealership; worst case, you save 2 hours haggling and get a good rate from the bank. Also, check if the bank that holds your mortgage does auto loans. Sometimes, they're willing to cut you a good deal if you have multiple loans through them.
You guys don't really do diesel do you?
Cause dad has the 2 litre TDI A3 and it is a beautiful car.
I didn't see any diesel options when I was shopping around, all gasoline engines or I might have chosen that. Diesel is usually more expensive than gasoline, enough so that the additional mileage it grants isn't worth it and often smells worse. But hey, they can run on vegetable oil!
Once upon a time diesel cars cost more, but the fuel was cheaper (less tax) and the mileage was better. Now they bumped the fuel tax right up and it makes little point.
I believe the chip-fat audi won the last Le-mans? They make verrrry good diesels.
I just bought a Corolla '09 (automatic) for 18,800CDN (15.4k pre-tax), 3 yrs 0% interest. Great gas mileage and especially, great resale value. 4 yrs from now, it will be fullly paid and still worth 11-12k.
At 6'2" it is easier for me to get in the Elantra Touring or Astra than the Malibu, midsize sedan.
Also, apparently my dad did some work (self owned landscaping business) for a local honda dealership. Looks like a good opportunity.
Also, it will end up being at the end of the month as well, just based on the CD rollover date.
I wasn't aware you could loan from outside a dealership or what ever... that sounds like an interesting avenue to peruse.
NB. Most car dealers and even some companies would not make a profit without finance commision.
You can even just extend your mortgage if your history/equity is good. Up the payments a bit and you'll often be better off.
Some places will do you a better deal on the car if you are financing through them, do not be fooled. If this allows them to make more profit out of your custom, it cannot be to your advantage.
I honestly wasn't aware that was even an option... Learn something new every day huh?
You either have it, or borrow it. The dealer does not need to know whether you had it anyway, or borrowed it from a bank. Just write them a cheque
'Never' is a long time. Talk to them, see what they offer. DO THE MATHEMATICS AT LEAST 3 TIMES AND READ THE WHOLE DAMNED CONTRACT. If it makes sense, then buy from them. But as they, and the loan company, both make money from you in that scenario - as opposed to just a bank. It seems implausible they would be cheaper.
A lot of people do not really realise how bad dealers screw customers most the time. Nor are they aware how freely they can go elsewhere for the finance, and yet still get the car there.
Treat this like you are making a $10,000 outlay, and spend your time on due diligence appropriately
Yeah, so far it sounds like buying a house was easier o_O
I'll definitely bring my parents along for the ride for a second (third) set of eyes so I don't get the big screw over.
Loan through the bank sounds fairly appetizing. So essentially you get the loan and buy the car fully from the dealership. So instead of a "car payment" its just a loan payment?
Do you get a loan for the exact amount? or is it just ballpark and I'd make up the difference (or have extra)?
I know these are prolly dumb questions, but I'm not well versed in the ways of the monies. I just go to work and pay bills
But do you have the skills?
Yeah, you're just paying the bank instead of the dealership. As others have said, some people refi their mortgage or get a equity loan or whatever; really depends on your credit, etc.
You usually get an approval letter from the bank, just like buying a house - ballpark of what you're looking to spend/what they'll loan you. Once you're set at the dealership, you get the exact loan from the bank.
Car buying can be worse, because with a home it's a lot harder to take off into the sunset with their property.
1 as above. Get a credit agreement from your bank manager, with APR/boundries/dates t&c then take it to the dealer. Agree a price and a car - then phone your bank or go in and complete with an actual amount to be transferred and get it given to said dealer.
2 Get a loan for 10,000 dollars - if the car is not needed as collateral. Then you shop around, you actually have a concrete upper limit to your budget (makes bargaining easier, and forces more self control), and you buy a car with the money you have in your bank account. There is an argument that says this is less efficient for 2 reasons: 1 interest payments whilst the money sits in your account, 2: you end up with too much money which you then spend or pay a penalty to pay off early.
Tip: Try not to inform the dealer of your financial circumstance beyond budget. If he thinks you'll be using his finance the offers he makes to charm you may well be better. It is unlikely he would then change his offer (and if he does you should walk away for the day at least).
P.S. Check all loans for early repayment penalties. You are better off paying more of the loan that is charging 10% than saving in a 5% account....
Checking your own credit does not lower - this is a 'soft pull', and has no impact on your rating. A hard pull is someone checking you for an actual loan. Here's the scoop - if you start submitting for credit checks, you can take a 5 point hit on your credit rating - BUT, if you do it all within a 2 week span, it only counts as one hit on your credit rating.
I think you will find that most dealerships cannot possibly compete with a local bank for APR - it's rare that it happens, so pursue it, but be prepared to laugh and say "My bank has a better APR, no thank you."
Also - might I suggest Carmax? That have a dandy website, www.carmax.com
I bought my MkV VW GTI there, and got a respectable price for it. It really is no haggle - pay their price or GTFO. It was refreshing honestly.
In your case, you are buying a new car, so even if you are able to bargain them down, you still know the price of the car that you are buying. This means you should be able to take out a loan for the full amount if you want to start off with once you identify your make and model. If you're trading in your truck, that's fine and you can just pay back the loan faster (make sure you get a loan that has no penalties for early payment).
Oh I plan on putting a lot down on it. I have a decent bit in that CD.
But they will be knocking less off the car to get a decent profit ^_^
Good luck!
I second this.
My wife and I just bought a 2008 Kia Spectra from them w/ under $9k miles for $11k ($12.1k including all taxes etc.)
While we didn't use their financing, they also do that step right in front of you so you can see exactly what you have/haven't been approved for.
Audi has won Le Mans the last three times with a diesel powered and they also won Sebring 12 hr just 2 weeks ago. With Peugeot as runners-up just like at Le Mans the last two years. The Le Mans cars DO NOT use chip fat and in fact they run a perry exotic Diesel mix so it is not like what we get a the pump. Also putting chip-fat in a modern Diesel engine is not a good idea but an old one will run on it just fine.
Still Audi makes good diesel cars for the road and in fact so does a lot of manufacturers. Especially since common-rail diesel engines was invented diesel is a lot more interesting for personal transport. BTW. It was Fiat that invented common-rail and they also make good diesel engines.