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Master Member #518
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Discussion Starter · #1 ·
Great topic, needing a thread of it's own, once again.

Here's a great post I found from peteypab2133:
get better deals when you finance. Dealers who have financing attached to them (GM=GMAC, Mazda=MAC etc etc.) When you finance it through them, they are willing to give you a better deal on the car, because 5 years or 6 years later, they made that loss back, plus about another 4 grand minimum based on if its a 20,000 car or maybe 10 grand if you are buying a 50,000 car.

Checks/cash are a thing of the past. They dont really make squat on a car when someone comes in with cash. Edmunds helps consumers and kills dealerships as does other cars.com sites etc etc, that put false information into consumers heads allowing them to push dealers around.

For instance, a Ford F350 4x4 has less demographic value in Arizona than it does in Michigan. And edmunds and other sites rarely take those factors into effect, just giving a basic assumption for buyers.

I used to sell cars for Mazda,GMC,Caddy,Mercury,Honda,Acura at a couple HUGE dealerships, and no kidding there is no money to be made on new cars. Used cars are where its at! sooo When it comes to buying cars, wait for incentives and end of the month deals. Most dealers make bonuses for selling X amount of cars per month, and to meet that quota will take one for the team on the last 3 days of the month. Atleast thats how it was at mazda and caddy
Here's my input:
...As for the financing, just have a open state of mind and look at ALL your options. If they offer a lower price if I finance with them, then I'll go with the lower price and then turn around and refinance it myself within a month. Factor in financing costs as well. Each time you finance there is a finance charge for getting the loan itself. When I purchased my last new car from the dealership, that's exactly what happened. Acura offered me a lower price if I finance it through them, then I refinanced it quickly after through my credit union.

Always use a credit union for car financing, they almost always have the best rates. That's what they are best at, and that's where you find the best new car financing. Join any Credit Union you can find, doesn't matter what it takes to join one, just do it, and check out the rates. Heck I helped a friend out when she had bad credit (she stop paying credit cards that were maxed), and she had just totalled her car running a stop sign, and she got 3% during a decent financial time in 2003. The only help I gave her was to lookup in the phone book, and make some phone calls for what credit union was best for her, and what rates she could get. Once I nailed one down, we headed straight over, and picked up the loan. Easy as pie.

Afterward she asked me, "should I pay it off right away or just never be late on a payment and pay every time?" I told her 3% is like inflation, so it's like you got the loan for nothing. By next year you should get a raise better than 3% so you never actually lose (10% of your paycheck this year is still 10% of your paycheck next year)... She paid it off in a year anyway, though. Smart girl... that is, after I set her straight it bit.

Set yourself straight, go to a credit union, you'll be much happier.
 

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Master Member #518
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Discussion Starter · #2 · (Edited)
I've never dealt with a credit union, so for someone like me who's in that boat but would like to finance through one, what do I do? I hear people say they join them and whatnot, but I don't actually know if you have to do that or if you can just walk in and see about getting a loan.
Just like I said:
McFly said:
The only help I gave her was to lookup in the phone book, and make some phone calls for what credit union was best for her, and what rates she could get.
So, that's all you really need to do. Open the phone book. Look up credit unions, start calling. Ask them what their requirements are to join, or if there are any at all (sometimes there aren't any). When I called around, some had requirements that you had to be an employee of a certain company on their list, some you had meet some criteria, and some had no requirements. The one I chose for my friend was a Teachers Credit Union. They actually had done away with requirements, but I called them because my friend was a day car worker, which in my mind was similar to a teacher. They turned out to be the best, anyway. Just think of it as time well spent, and paying yourself for the money you saved... like car insurance.

I have my credit union selected already, so I'm set. Next, would be to walk down to dealership and find out what kind of deal they can give me. Then, decide if I want to finance OR refinance through my credit union. It's definitely going to end up at my credit union, one way or another.


Edit: I had a bad experience with a dealership service dept once, that tried to scam me for work they never did, and then they threatened to repo my car if I didn't pay the bill. I told them, "it's called grand theft auto since I'm not financed through Honda anymore, have a nice day." They left me alone.
 

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Awesome. The info is much appreciated!
 

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you can make dealers sweat a little bit too if you don't get the deal you want. you don't have to buy the car. you drove in and you can drive away. hang around for a while, but don't be afraid to pick up and go somewhere else. always keep the last quote in case you want to come back or get the car somewhere else. but yeah don't let them know it's a done deal unless you're gonna be firm on what you are willing to pay. in my case i will not pay over invoice, and i've made that clear to two dealers in the area. so they know what i'm looking for. of course they are going to try to sell it higher but that's where the bargaining comes in. always bargain selling price before financing price. what you can afford each month and what you want to pay for the car are two totally different things. alot of ppl end up in 5-8 year loans paying way more than they wanted to because the monthly was affordable. just be calm. it's your money, you don't have to give it away.
 

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If you want the best prices first you get quote prefinancing with discounts like family, frequent buyer, and returning customer next you get finance offers and prices. Now you go back and forth asking who can do better. Now take that number and finance with the dealer who has the lowest apr and buy the better priced car. Now you just walked away with an amazing apr and a much cheaper car because the dealer gave you that finance deal because it's not there car.

For the best deals buy in the winter.
 

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FUNCTION OVER FORM
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Great info guys & McFly thanks for startng a new thread, this is definately worthy of it's own thread.
 

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MagnumPSI
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Ohh and i forgot to add something... Your negotiating skills may be useless on a car like the gen coupe when it comes out if it is as popular as it is being made out to be..

If you dont wanna pay the price for it, the next guy in line will. Keep that in mind when you are playing the game.

Just thought i would add that little tid bit.
 

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yeah it will be hard to negotiate on the coupe when it comes out. thats why im waiting for a second or third year model. i tried to negotiate a deal on the mitsu RA and all i could get was my military discount and they were a little apprehensive on that. sheesh.
 

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MagnumPSI
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348 Posts
yeah it will be hard to negotiate on the coupe when it comes out. thats why im waiting for a second or third year model. i tried to negotiate a deal on the mitsu RA and all i could get was my military discount and they were a little apprehensive on that. sheesh.
count your blessings you did not buy that heap of junk.

They dissapointed SOO many with that car. Supposed to be baby evo. Its a lancer with evo motor. thats it..

Poopy suspension, poopy brakes, poopy interior, poopy turbo/cams

They cheaped out on sooo many details on that car. Its worth about $24,000 MAX. They go up to $30,000+
 

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GenCoupe Addict
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Thanks for the information guys :) this will be my first time buying a new car (whenever I do decide to purchase it). My credit is not great what so ever, so I will have to go to my credit union and see what's up in regards to loans and what not.
 

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Poopy suspension, poopy brakes, poopy interior, poopy turbo/cams
That car sure must smell bad :eek:

ive been with my credit union for 10 years and they just called me and said i have up to 75,000.00 available to buy a car with 3% interest. Cant beat that.
That's a badass rate!!
 

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Master Member #518
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Discussion Starter · #13 ·
ive been with my credit union for 10 years and they just called me and said i have up to 75,000.00 available to buy a car with 3% interest. Cant beat that.
Now, that's what I'm talking about. 3% interest! No real need to worry about having a car payment if it's going with inflation anyway. That's like your mom loaned you the money and only wants the amount she'd get back with inflation. Like she could buy 100 loafs of bread today, and next year she'd hope to still buy that 100 loafs of bread that went up from $1 to $1.03 (or 5000 loafs at $4 that went to $4.12, whatever a $20K loan comes out to). So, she needs that 3 extra cents per year, is all she's asking.
 

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ive been with my credit union for 10 years and they just called me and said i have up to 75,000.00 available to buy a car with 3% interest. Cant beat that.
the only thing to watch out for there is that the lowest rates come with the shortest term. not knowing the details i would guess that's a 36 month loan... i've been quoted 4.55 for a 48 or 60 which isn't bad either. but even at 3 over 36 months i would struggle to make that payment. that's upwards of $700 if the car is around 26k
 

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I think the most important thing when buying a new car is to know exactly what you're buying. I try to know the car as much as I can before even stepping into the showroom and checking the car out in person. Salesmen often don't know what they're talking about so it's good to know their product more than them.
 

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Discussion Starter · #17 ·
Here's a good article I was reading:
Confessions of an Auto Finance Manager - Edmunds.com

Here's some highlights that I liked:
10 Things Not To Do in F&I [Finance and Insurance office of the dealership]
Over the years I put together advice for my friends and family when they were going to buy a car. In most cases, my advice was simply what not to do! Here is my Top 10 list that should get you in and out of the F&I room unscathed.


1. Don't agree to be a monthly payment buyer [Ex: I am looking to pay $400 a month]. If you do, you'll quickly lose control of negotiations as they pack payments and hide the real cost of the car.

2. Don't buy a car without first checking pricing guides such as Edmunds.com's TMV. Print out this information and take it with you to the dealership.

3. Don't buy the extended warranty. The bumper-to-bumper warranty will last for at least three years/36,000 miles [In our case, 100K mile standard Hyundai warranty]. The powertrain warranty will then cover all the things that make the car go down the road, often for up to 75,000 miles.

4. Don't buy the extended warranty(if you really want it) for the first price they offer. Mark-up is about 100 percent, so there is plenty of room for negotiating.

5. Don't enter the F&I room unless you have independent financing or you have recently checked your credit report and investigated what your bank or credit union will offer for a rate. Otherwise, how will you know what interest rate you deserve?

6. Don't buy paint protection (it's just a glorified wax job) or fabric protection or VIN etching or LoJack (unless you have an irreplaceable collector's car). These are high-profit items for the dealership and can always be purchased somewhere else if you decide you really want them.

7. Don't pass up gap insurance if you're leasing (unless it's already in the contract).

8. Don't forget to run your monthly payment numbers using an online computer to get a rough idea of what your car payment will be.

9. Don't believe that the F&I guy is really your friend, even though he acts like it.

10. Don't believe the F&I guy if he tells you that you have to buy the extended warranty to qualify for low or no-interest financing. I've used this line a few times before. And it's not true.



What is the average consumer to do to prepare for an encounter with a "heavy hitter" or even just a silver-tongued salesperson with a carefully crafted sales pitch?

Metrey [NADA's director of regulatory affairs] wrote a response to this question: "We strongly encourage consumers to educate themselves about the financing process just as they do with the vehicle purchasing process." NADA has created AWARE to provide consumers with car financing tips and information in English and Spanish through an interactive Web site. Dealers have also stepped up training for their employees to enhance transparency in the auto finance department.

While the official message from the top is that consumer education is encouraged, Nick James said during our interviews that the informed customer was the one most hated by F&I officers. And every car salesman in the world has at one time or another scolded his customers by saying, "Just trust me."
 

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I prefer the eric cartman method in negotiations. Awww 23,500 thats the best you can offer me Bob?? Your breaking my balls Bob your breaking my balls, I got Jim at the other dealership willing to do 21,000 can you do 20,500?? Gotta remember there is always another dealer willing to sell you a car if your willing to look and drive. It also helps to have a concealed hand gun license so when they ask for your dl show that as well that way they dont screw with you too much.
 

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I think the most important thing when buying a new car is to know exactly what you're buying. I try to know the car as much as I can before even stepping into the showroom and checking the car out in person. Salesmen often don't know what they're talking about so it's good to know their product more than them.
Thats so true. I was looking at a solstice gxp and the sales man tried to tell me it was twin turbo then it was a v6 turbo then a v6 :confused: i just walked away
 
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