Teach me about buying a car (UPDATE: Why is this '04 Hybrid Inexpensive?)

Reckless

Hey all,

I'm in need of a new ride. My '91 Accord is starting to die and it's getting to the point where it's time for an upgrade. I got this car from my uncle for my 17th birthday, so I've never had to go through the car buying process.

So far, I really like the '09 Honda Fit. It's got the mileage I need, the price is nice and low, and if it lasts half as long as the old Accord did, I'll be driving it into my 30s.

As a bonus, my parents are offering to pick up the monthly payments as a 21st birthday gift if I can come up with the costs due at signing. Naturally I'm extremely grateful and excited at this prospect. However, I've got no clue at what kind of money I'd be looking at for those fees. Some Google-fu puts my estimate at around $2500-3k. On average, is this figure about right?

Thanks to all for any help.

Lail

When I bought my 04' Civic (brand new), I only had to put down $2,000. The sticker price was $18,800ish and after taxes and freight and etc I think worked out to about $22,500, which I financed at 1.8% for 60 months through the dealership. (All in Canadian dollars)

I think your best bet would be to go to the dealership, tell them what you're looking for and they can crunch the numbers for you and give you an idea of what the monthly payments and down payment will be.

One thing to keep in mind too, is that your insurance rates are probably going to go up. How much? I have no idea.

YodaTuna

So you're only paying the money due at signing? Your parents are paying for the rest of the car? I would imagine your parents are going to put it in their names then.

Doesn't sound like you'll do a lot of the buying or negotiating, but I read this the other day and it might be helpful to your or your parents. There is a lot of reader tips in the comments as well. For instance, go in late in the day, near the end of the month or quarter, during that time salesmen are trying to meet their quota.

http://lifehacker.com/5301118/car-dealer-tricks-to-avoid

Figgy

Keep in mind that the insurance difference between a 91 Accord and an 09 Fit is going to be staggering.

How old are you? Forget about car payments, your insurance premium might be just as much. Consider asking your parents to buy you a slightly older car if payments are going to be a problem.

If not, and you're going for a new car, just walk into a few dealerships and take some cars for a drive and get some numbers. Salesman will send you away with full write-ups including fees, monthly payments, etc. Now is the time to haggle as well.

You'll need to pay a down payment, which will vary depending on the lender the dealership works with. You can go with your own lender if you like, but I get the impression since your parents are buying this car, you aren't too concerned with that.

Your down payment will affect the monthly payments, since it reduces the purchase price of the car. When my girlfriend bought a new car a few months ago, she only put down $1000. Administration fees aren't leg breaking--maybe $100 or so.

Again, go in with the mindset that you can haggle. It's no secret that the dealerships are hurting, so see what they can do for you.

Reckless

Thanks for the help so far, everybody. Because of the increased insurance costs as well as other financial issues, I'm now looking for an '04-'06 Pre-Owned Honda. I found this '04 Hybrid Civic nearby, and it's very inexpensive. As I've always associated Hybrids with $texas, this seems strange to me. Any word on why this Civic would only be about $10k?

http://automobiles.honda.com/certified-used/inventory-vehicle-details.aspx?Zip=11741&vin=JHMES96614S013137

And my other option was this very nice '05 Civic:

http://automobiles.honda.com/certified-used/inventory-vehicle-details.aspx?Zip=11741&VIN=2HGES16605H605951

Six

I wouldn't bother with a used hybrid. They have batteries which will kick off after 5 years or so and will cost more than the value of the car to replace. That's why their resale value is so low. If you're going to buy a hybrid, buy a new one.

Reckless

Six wrote: »

I wouldn't bother with a used hybrid. They have batteries which will kick off after 5 years or so and will cost more than the value of the car to replace. That's why their resale value is so low. If you're going to buy a hybrid, buy a new one.

Ahh, gotcha. Thanks for the heads-up. I'm really liking that '05 anyway.

Monolithic_Dome

Here's the best "negotiating tactic" that anyone ever told me about. It doesn't require "tricking" anyone.

-Go to dealer A. Test drive the car. Act interested. Settle on a price (don't talk about payments, negotiate the price of the car and the price of your trade in). Tell him that that's a good offer, and you are going to go to lunch and think it over.

-Go to lunch. Have a burrito. After your burrito, call dealer B in the area. Ask for sales. Tell the salesman "Hey, I'm looking at '09 Whatsamahoosits, Dealer A offered one to me at 23,265. Any chance you could beat that?" If he can, go to dealer B and buy the car.


For dealer B, your phonecall is like a free visit from blowjob santa claus. He gets a motivated buyer with none of the legwork. If he's not a dummy he'll offer you 1k-2k less and bingo, easy sale.

Dog

The most important thing to remember has always been that you are not obligated to buy anything. If you aren't getting the numbers you are looking for, walk out. If the dealer is making you feel uncomfortable, walk out. Any situation that doesn't make you feel right, or makes you feel like you might be getting bamboozled, just walk out. If the dealer really wants your business, they will do what needs to get done to keep you in there (and even then, if you don't like it just walk out).

I also highly recommend bringing "the folder" (check the link at the end of this post) and also bringing a friend who disagrees with everything you say.

I'm not normally one to plug a website, but http://www.carbuyingtips.com/ is awesome for everything you would need when it comes to buying a car. Hell, it even has things you might not even think of.

Ganluan

Whatever you do, don't buy the dealer's extended warranty and don't let them tack on bullshit add-ons like mudflaps.

I had a very good experience buying a car from CarMax recently - no added fees, and they are very transparent about the vehicle's history. If you like to haggle though, don't bother, as they will never lower the sticker price.

Dog

Not all dealers are scam artists though. My dad/stepmom/grandfather/uncle all have cars from one of our local Audi/Saab (yeah it's a wierd combo, don't ask) dealership and the dudes who work there are great. They won't drop the prices as low as some of the other dealerships, but the service is beyond fantastic whenever there are problems or anything else, and they've never tried to sell us on that extra BS either.

Sometimes it's worth it to pay a little more just for that.