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Comments
The bill would apply to the first $49,500 in the price of a new car purchased between last November 12 and December 31, 2009. It would allow consumers to deduct interest and taxes paid on a new vehicle purchased when filing their tax returns. Individuals with incomes of up to $125,000 and couples earning as much as $250,000 could qualify, including those who do not itemize their deductions.
The information has been forwarded to me by THE GREATER NEW YORK AUTOMOBILE DEALERS ASSOCIATION
This could save consumers more than $1500.00 on a $25,000 vehicle.
FRED
Fred: I don't know how you got those numbers. If the tax break is a deduction, as opposed to a credit, there's no way to save $1500 on a $25000 car. Assuming a crazy 10% sales tax rate, that makes the tax $2500. To get a $1500 tax break, your rate would have to be 60% (which is higher than the greatest marginal rate today). Unless the Dems have already jacked up tax rates as part of that same Porkulus bill!
Any other out there have a lower price?
MSRP: XX
Invoice: XX
Sell Price: XX - no taxes/fees included
Thanks
Don't have invoice # handy but the "out the door price" was $34150. Included all fees but not tax since they don't collect from out of state buyers. I didn't want any additional accessories just what comes on the 4WD Touring with Nav and RES. Couldn't beat the deal or the service! Would highly recommend to anyone. Again, ask for Raymond.
You may include the dealership name, city and state in your post. Please do not post names of salespeople, telephone numbers, email addresses, or other contact information.
Numbers were supplied by the greater NY auto dealers association.
http://www.vandergriffhonda.com/index.cfm?action=home
Guess they thought I fell off the turnip truck yesterday.
$30,344 (included destination and delivery fee of $670)
+ $2,124
+ $354 Motor Vehicle Fees
+ $7.50 Tire Tax
$249 Dealer Doc Fee
= $33,078.50 out the door.
We shopped 4 dealerships in New Jersey and this was the best deal we could find. I hope this helps all those who are price shopping...
The car, of course, has been wonderful.
So, a few weeks ago I got a call from Honda asking me if I have decided what to do about the final $15000 payment.
So, I'm not sure what my options now are. I would not mind trading in the car for a new one, a used one, a used CRV; even a Fit. Doesn't really matter much to me. I'm just trying to get a handle on what's going on.
RON
Where are you located and what dealer did you use? I'm in Southern NJ (Marlton area) and was quoted a 2009 Touring 4WD w/Nav no RES for $34,860 (dealer #1) $35, 371 (at dealer#2) and want to get the best deal and not get screwed over. They have the model on the lot as well. I just want to get the best price.
The key is to contact dealerships via email for price quotes first. Go to Honda.com and "build" the car you want without options. Then find the dealers with that car in stock by using the "get a quote" feature. Then get quotes from those dealers, requesting that they include all dealer fees, but exclude tax, title and license. After doing that, you may find that some dealers will beat or match the prices you get.
Don't forget, the current Honda incentive may change after March 2nd.
I believe you signed one of those "it's a purchase but really a lease deal". Some dealers no longer offer traditional leases in certain states due to vicarious liability laws.
I think you have 3 options with this deal:
1. Purchase the car and arrange financing for the $15,000. You can do this either on your own or through the dealer. I would recommend you find your best deal and then ask the dealer for theirs.
2. Walk away. I believe these deals had the same option as leasing where you can simply bring the car back to the dealer and turn it in.
3. Simultaneous Purchase and trade in. If you vehicle is worth at least $15,000 you can then trade it in for a new vehicle. This would save you some sales tax (in most states). The trade in would pay off the note and the excess could be used as a down payment for your new car.
All that being said, you should call AHFC or whoever financed this and get the record straight with them.
Keep us posted.
Again, thanks.
RON
I'll need a DVD RES for the California to Maine trip I'm planning this summer - hopefully, in my new Pilot Touring 4WD!
And best of all..since each child has their own - there is NEVER any arguing of whose turn it is to watch a movie.
Something to consider...
In 2005 I bought a Honda Pilot LX. It was one of those purchase/lease type arrangements with a balloon now due for $15000. The car has a Blue Book of about $12000.
I would like to get another car, obviously. So, if I purchase, say, a used CRV for $19000, what do I do about the balloon? Without the balloon, the situation would look like this:
$19000-$12000=$7000 financed.
BUT what happens with the balloon? Would Honda just roll it over for another couple of years? Could I, say, throw in an additional couple of thousand dollars and add to the finance?
I am very confused about this (and am ashamed that I am confused as I should have figured all this out before I purchased in 2005).
ANY HELP IS GREATLY APPRECIATED!!!!!
RON
RON
http://www.carspace.com/bigdadi118/Albums/bigdadi118%27s%20Album/2009_01_Honda_s- ales.jpg/page/photo.html#pic
My 2005 Pilot LX
I purchased this from your company April 2005. As it turns out, it seems that because of the balloon due April 1, I’m going to have to get rid of the car, as far as I can tell.
Here’s my beef and understand I am not shirking my responsibility as I am an adult.
I bought the car from your company. When I brought in my Rav4 for trade in, your service people took the car and it was gone. I sat waiting to sign papers (and actually to discuss payment terms as they hadn’t been mentioned yet) from 3PM to 9PM, no food, nothing. By 9PM, hungry and thirsty, I would have confessed to crimes. I asked once about the Rav, saying that I should come back another day due to the long wait but was told that the Rav was already gone (and where? I don’t know). I was getting rather freaked out.
Had I realized that purchasing the car with a $15000 balloon at the end would mean that I would basically be under water with the car after four years, I would have never done this. Who would? But I did. Honda said of course I could pay off the balloon at about $450/month (versus $303 now) but then at the end of that I would have a worthless eight year old car. Hmm not a great scenario, right?
So, in the next few weeks, I’m going to turn the car in and pay the difference of the balloon and that will end my relationship with Honda permanently. In my view, and especially in this horrible economic environment, companies such as yours should view customers as valuable people for on-going relationships, not some cow you milk and then discard. But I don’t run your company.
1. Don't blame Honda for your finance situation, you agreed to it, it worked for you at the time. Put your anger in the drawer and figure out how you are going to get a new car. My guess is back then, like today your budget did not allow for the car payment that was needed. Honda found a way to make it work, you agreed to it rather than finding a cheaper car.
1. Only in the auto industry do people treat negative equity like some sort of financing tool. Have you ever heard someone say, My mortgage is 100K more than the value of my house, lets sell this one and get a bigger house? If you don't like the car walk away from it. I didn't think you were responsible for negative equity if you turned it in? I think you can just walk away????
2. I have a 6.5 year old Honda Minivan with 81K miles on it. It runs great and I wouldn't even consider it worthless. In fact, I am going to keep it at least 3 more years. I try to keep a car 8-10 years. Think about how much money you will save during you life using this approach rather than getting a new car every 3 years?
3. Have you checked online or with your local banks, credit union to see what terms and interest rates are available to you?
4. My advice, if your budget allows for $300 a month, then walk away from this car and start looking for an affordable used car 3-4 years old that fits your budget.
good luck-
HOWEVER, as a large consumer company Honda has, in my view, a moral obligation, not a legal one, to protect consumers, even from themselves. If the finance officer had said to me, "Ron, you know, in four years, you will owe $15000 and your car might not pay it off. At that time, you will have to make up the difference and then either go without a car or finance a new one completely on your own, with no trade-in." Had they said that, I would have not purchased the car. I'd have stayed with my Rav or settled on an older car. What the finance officer did say was that in four years I will have to pay off the difference and use the remaining money toward a down payment. As if that were even remotely possible. It was a lie, through and through, but I bought it. LIke a fish after a worm.
If you read my comments above, you will see that they (1) took my car, (2) made me wait 6 hours, to 9PM, to see the finance officer. I should have left then; the smell of the whole thing should have been obvious, but it wasn't. I was played for a fool and a fool I was.
I might have to do as you suggest. I will have to pay it off with the car and a few thousand of my money. I'm not sure what I can afford after that. $300/month for five years is about $18000 so that would mean, at best, $12000-14000 for a car. Perhaps that might work. I doubt it.