Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Look around for something like "good, cheap beater cars - how to find one", that's your best bet.
Forget Honda and Toyota for $2. Unless you get reaaaally lucky, they'll be junk by the time they hit that price point.
For cars in this price range, the make/model matters less than the maintenance history and how the car was treated. Just stay away from older Kia/Hyunday/Daewoos.
-Mathias
The real questions your boyfriend needs to ask is this...
1) How much space will I need to suit 90% of the needs of my business.
Literally he should figure out what exactly he should expect in some of his most 'packed' situations and find out how much space it would take up.
2) What driving environment would you like to have?
Some people prefer the comfort and space of a minivan. Others like to have a high seating position and either go for a cargo van or a truck. If you're going to do some serious daily towing (2,000+) you're better off with the later option. If most of your work is mostly light duty then an Astro (which is also pretty good for most industrial worka), a Windstar (cheap and nice, but you have to change the shocks to heavy duty or even a station wagon (ditto and keep in mind roof racks can be very beneficial) would do the trick. A small pickup is also a worthy option and at that price range there are a ton to choose from. However, he should keep in mind that if he's going to spend a lot of time inside the vehicle... compacts aren't usually the best choice.
3) Maintenance
In the long run, gas consumption is not going to be nearly as important as upkeep. I've seen vehicles used for industrial purposes with over 300K that actually still look pretty good. I've also seen 60K light duty vehicles that look worse than Gary Busey on smack. Seriously, get that vehicle looked at by an independent ASE certified mechanic. I know that many dealer mechanics are very good. But, the fellow who has his own shop and has a lot of cars in front of his garage is usually a bit better. When you have your own successful shop that is the very source of your sole livelihood, you perform these inspections a lot more diligently. Trust me. I liquidate over 10,000 vehicles a year for a major bank and there is a world of difference between the cursory glances and a truly intense and detailed inspection process. Get it done, don't negotiate the fee. Just find the right guy.
IMO, you should figure out wha tthe car is worth, and hammer out a price based on this first. ONce you have the price set, deal with financing.
I'm no expert, so I don't know how much the DP will change the rate, but it should certainly help. If nothing else, it practically guarantees you will get financed. The (supposed) reason someone with bad credit pays a higher rate is the additional exposure the lendor has that you won't pay off the loan. But, with such a high DP, there isn't much chance that they will get stuck. Even if they have to repo, there would be plenty of equity in the car to cover the balance.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Only caveat I can think of is that the Capital One loan application does involve a full credit review so it will show up as an inquiry on your credit report.
I'm looking at a 1993 911 carrera 2 Cabriolet for sale with 70,000 miles. It has an automatic transmission and it appears to be pretty well cared for. Assuming it is mechanically sound after a pre purchase inspection, what do you think a fair price for this vehicle is?
I have been test driving new 2005 Mazda3s and saw this car on autotrader. It’s a 2005 Mazda3s wagon, 1800 miles. I called and she said that she bought it 2 weeks ago. It has the ABS/Side airbag package, and the moonroof, cd changer package, automanual.
The first thing that made me feel like something was amiss was that the VIN does not show up on CarFAX. Another thing that didn’t add up to me was that the car didn’t have a front plate, but it had a “real” rear license plate (not a temp). Isn’t that too soon? And why would she only put one plate on the car?
This is what she says is the story: Her job went from full time to part time so she can no longer afford the car. She is going to school for Massage therapy. She works at a major insurance company as an associate management consultant and she also mentioned working two jobs and mentioned that she would have to pick up more hours at the restaurant. All of this was “matter of fact” and she didn’t have much emotion when talking about all this.
She has made a big deal about her financial situation: she was $2000 upside down on her previous trade and will be $3000 upside down on this car. She needs to roll this $5000 into the next loan that she gets on her next car. She tells me that she's got a couple of leads on a used car, but no deposit on anything. I've told her that she should call me back when she finds something.
She is asking $17,5 firm. When I did the research a month ago, TMV was telling me $18,0 on this vehicle, so I thought I was getting a good deal and gave her a verbal OK to go forward. When I looked again later that evening, the TMV was $16.5.
So I have a few questions: Does this sound like it's on the up-and-up? Does the lack of a CarFAX report send up red flags? Should the fact that she is $5000 upside down worry me? Should I try and back out of the deal since I’m not getting the deal I thought I was?
I am in over my head, and I know it. Can anyone help?
"...she was $2000 upside down on her previous trade and will be $3000 upside down on this car."
Which means that she has to pay it all off to the lender before they will release title to you. So, either she pays the car off, gets the lien removed and hands you a clean title when you purchase, or you give her the $17.5 and hope that she pays the car off with your check and then a few grand of her own money because she owes way more than $17.5, right? That's what concerns me....where is she going to get the rest of the payoff? If she doesn't pay off the note, then the bank's going to repo it since they'll get their money first and you'll be left chasing her into court to get your money back.
Did I just paint a worst case scenario? Yes. And I'm not usually a doomer and gloomer!
This also leads to another question? When is the car mine? When I get the title, or registration? After I leave the bank, the car is mine (right?), but can I drive it? Isn't the registration still in her name? Will it still have plates? I feel like such a neophyte...
1) type up a Bill of Sale with details of the transaction. Names of buyer and seller, purchase price, method of payment, make/model, VIN, mileage, warranty or not, etc. I have both parties sign and date the BoS. Since you're doing the transaction at the bank, you can easily get it notarized also.
2)have her sign over the certificate of title to you being very careful to correctly complete it.
3)as soon as possible, register the car in your name with your DMV.
Usually, the plates stay with the car but may not in some cases. You can also call your DMV or local Registrar for more info on the procedures to follow when buying a car from a private party.
did you have the correct Vin# .........?
Did you look at the registration ..............?
Terry.
I repeated the VIN back to her and she said it was correct.
Look at the registration? No. I haven't seen any registration.
Thanks for everyone's help! I've tried reading these "How to-s" on the web, but they don't cover what happens with stuff like this. (or at least, not that I could find)
Mark
All of a sudden she's got the money to pay off the loan, which she will do at the bank. She's asking for a deposit to hold the car.
If she had the money, why is she selling the car? Couldn't she just refinance the loan and get a lower payment? I'm trying to see the angle here and not really coming up with anything...
Mark
and, you are also right, why the heck would anyone roll $5k into a used car rather than reduce the cost of their current new economy car?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
"Yikes I wouldn't take it if she was giving it away."
We jumped through many hoops during the week to give the bank all the information they said they needed to prove we do have the income coming in.
1st my husband has been on this job >5 months. He will be 1099 at the end of the year by his employer. Since we could not produce a 1099, NOW, the bank wanted tax information for 2004. We just relocated and informed the dealer it would take about a month to get them a copy of that information. So finally the bank agreed to let us fax over the past 6 months of bank statements for proof of what we bring in monthly.
However, as showed by our bank statements, my husband's payroll checks don't always get deposited into our bank. My husband, construction worker, has a hard time getting to the bank when he gets paid. He usually goes to the bank with his boss and cashes his check through his boss's bank then we deposit what we have to in the bank and pay cash for the rest. Example, this months rent was paid cash. That's $1400.00 that was never processed through our bank. This was explained to the dealer last week and he called the bank and explained to them. The fix was to fax over copies of the cancelled checks written by my husband's boss from his bank. We did that and they said that was fine and they had all the information they needed. Should I assume we were pre approved ... I was told so.
We drove over an hour to sign the papers. We saw the loan approval from the bank, while I was signing the contract (RISC) the dealer was telling me "... in case financing doesn't go through, but we already know, that won't happen". We took the keys and went home.
Monday I get a email saying the bank wants a detailed copy of our last month's bank statements. I sent it, he says that won't work because there are NSF items on it and the statement does not show the cancelled checks we faxed over. Duh! We went over that last week, the checks were cashed by my husband through his boss's bank. So now he is asking for 1099 again ... something we already discussed last week. My husband reiterated again he's asking for something we can't produce, we've been over this. Last week according to bank that was fine. Now it's not ... dealer says he is going to try and get the bank to just go with what we have and never mentioned having to return the van (2005 Ford Freestar).
I want to know ... why, after the bank said all the information they had was sufficient is no longer sufficient? How much information are they entitled to. At one point they said they needed proof of where the money going into our account was coming from ... in case we are drug dealers or laundering money. My husband replied ... "dude if I were a drug dealer would I be jumping through all these hoops to get this loan?". Did I mention we're getting hosed on the interest rate? 21.5%, 60 mo., $474.00/mo car payment, selling price $17500 aprox., $1500.00 down payment made by us.
Thank you for any wisdom you can give me.
Shelly
You need to find another car to buy, IMHO. This one smells really bad to me. Let me ask you this - why are you so invested in this particular car?
That's what I've been thinking all along is that the car might not even been hers. When I was talking to her, I always got the impression that everything was on the level, but then when I'd think about it afterwords some things just didn't add up.
The car is exactly what I wanted, right down to the color. It's 1.5 miles from my house, and I gave her a verbal okay that I would take the car. That's why I'm hooked.
I got more information today. I think that she's not dishonest, she's just not all that finacially savvy. Turns out she talked her bank into giving her an unsecured loan for $5k and that's where she got the money. she did it because it would uncomplicate the transaction somewhat. From my perspective, an unsecured loan is a really bad financial decision and should only be used as a last resort, but that's JMO. After this information she looks more inept than criminal.
Anyway, I backed out. I hated breaking my word and it makes me sick to my stomach thinking about it, but I think it's for the best. I don't know if I'm cut out for buying a used car from a private party. I can't bear to watch people making financial mistake after mistake like this person is doing.
Thanks for everyone's help.
Mark
I agree with the others .... if she's $5,000 flipped, plus the profit on the new car and the taxes .. then she's basically $7,500 in the bucket and she's paying "around" another $140ish more a month -- where's the savings and what's the point ..? ........ none of this deal makes any sense, move on ......
Terry.
You went over what..? ... you have current NFS checks showing on your account - and your best explanation is: "your husband uses his bosses bank".?? .. no wonder they want more information, this is 2005 - not 1945 ..l.o.l....
**So now he is asking for 1099 again ... something we already discussed last week. My husband reiterated again he's asking for something we can't produce, we've been over this. Last week according to bank that was fine. Now it's not**
What discussion.? .. your husband can "reiterate" anything he likes, but you need to prove your income ~ or do you think the lender should "just" take your word for it ..?
... **dealer says he is going to try and get the bank to just go with what we have and never mentioned having to return the van (2005 Ford Freestar) ..... **
Sounds like the dealer is busting his tail to get this deal done and I'll bet it gets "conditioned" so much he won't make a dime off the deal, "-if-" it even gets done ------- lets see, no history, no 1099's, NFS hittin' the banks and your husband cashes his checks at Billy Bobs Barbeque and check cashin' store ............ I dunno, if I was the dealer in this deal I probably would have dropped ya like a bad habit --- Oh my gawd ..... where's the co-operation .....??
Terry :surprise:
Unfortunately, I think they chose the wrong customer to try this with (bad FICO, no proof of income ... what was that other detail? bankruptcy?). I'm thinking this just isn't going to pan out in the end and the vehicle will have to be returned.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I understand they need the information to avoid fraud ... the information was provided and we were yessed right into the dealer and told pre approved, otherwise I would have never signed. I just wanted some advise from some one who knows more than me. I've never done this before. Thanks a lot.
--Unfortunately, I think they chose the wrong customer to try this with (bad FICO, no proof of income ... what was that other detail? bankruptcy?).
then I wish they had been straight forward with me to begin with.
We are trying to get ourselves out from under horrible credit and I think it's just too soon. My husband just wants me and our 3 year old who is autistic, in a good reliable vehicle. One good thing is that we have zero credit card debt, ours are medical bills and student loans and after working on it not as much as there use to be.
Thanks again,
Shell
My advice (since you are not concerned about having to return the vehicle) is to call them up and tell them so. Just say since they can't make the deal happen, they can take the car back and "unwind the deal."
Then go out and find yourself a USED car with low miles for like $7,995 or some such price. Pay 21% or whatever over 3 years. By the time you are done, you'll have gotten your use out of the car and THEN maybe you'll be ready for a new vehicle.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Oh, and for god's sake, if you're going to put yourself in crazy debt over a car, a Ford Freestar is the LAST thing you want to be holding a high-interest note on, you'll be $10k upside down the minute you walk out the door (and probably for the next four years). If someone loses their income, your stuck with a $500 car note you can't sell your way out of. At least get something that has decent resale, Ford minivans are among the worst in that regard. You can find a very similar used Ford Windstar on any used car lot in the USA for $4-9k and not be in debt the rest of your life. In other words, be thankful you didn't get the financing! That vehicle with the ~$17,5k price tag would have cost you almost $30k ($474x60=28440+1500 down=$29940).
I'd say, if you must have this car, keep your guard up and have an accountant with you any time you have any contact with the seller; oh yeah, have you even seen the car yet? If not, check other dealers, order a new one, hell, check other states, but move on.
We're all intrigued, though, so please update as often as possible.
Terry.
So, what you're saying is .... the dealer came to your home and knocked on your door and canvassed you for your business, then drove you back to the dealership and tied you and your husband up, then dripped water on your foreheads until you signed and took delivery - right...? ...l.o.l....
Sincerely and all due respect .. I applaud you for thinking of waiting 6/8 months until things get straightened out, I think it's a great idea - the best idea .... but the dealer was only doing "his job" based on what information that was given at the time ...
See, I hear and see this stuff everyday .. some folks make $1,500 a month and some make $15,000 month - but still broke .. but they are living and breathing for that next vehicle, so it becomes hard for a dealer, any dealer, "not" to put the wheels in motion ...
Here's a better example -- last weekend I had a young couple in one of my stores and my salesman wanted them "spotted", so lets put the deal together with the other 60 deals, etc etc etc .. now I overheard maybe 40% of their story, but looked at their credit report and I knew from Jump Street this wasn't going anywhere .. they had $800 down, she had a BK that wasn't yet "charged-off" (at age 25.?) a 550 Fico, hubby has been a landscaper and shows $1,000 a month, she does part-time baby sittin' and they've only been in the state 9 months ... where do we go with this.? -- "I'm thinkin' Nowhere.!" ....
Soooo, silly ol' me sat down with them and went over their credit history and recommended that they get their credit handled, wait for the discharge, save some $$ and come back in 8/9 months and we will find them in a real nice pre-owned vehicle with low miles and looooow payments ...... yesterday, I see them at a gas station putting gas into their used Honda Pilot and they remarked: "If you would have been doing your job you could have sold us one of these" ......... little do they know that puppy will be going back to the dealer ... sometimes it doesn't pay to do the right thing ....
I wish you luck .......
Terry
I stopped posting because the responses I got pretty much told me what my GUT was telling me. I'm an engineer by trade, so I usually can't affort to trust my gut, but in this case something didn't feel right.
She wasn't going to kick in the $17.5k, I was. We were both to go to her bank, me with a $17.5k check and her with her $5k unsecured loan. At the bank, I would have been able to get the title signed to me and get the BoS notarized (not sure if you have to do this. There is so much about buying used that I have no idea about). I did test drive the car - even got to check to see if the car seats fit and it had everything I wanted. The only strangeness about the car is the plates. It was missing the front plate, but had a real plate in the back. That seemed odd for a two week old car. Either yopu have plates or you don't. And two weeks is awful fast to get real plates in CT.
The bigger problem for me was that either she was bald-faced lying or was telling the total truth. I don't see much middle ground. If she was lying, then I would have been out the deposit that she was asking me to give. If she was telling the truth, then she was entering into probably one of the worst financial decisions of her life. Either way, the deal didn't feel right.
I've since decided that I probably can't buy a used car from a private seller. Not because I'm inept, but because I care too much about the other side of the deal. Thanks to websites like Edmunds, when you buy new you (pretty much) know who is getting what. When I tried to buy from this private seller, I got too much into her problems and what she was going to do about it. I couldn't separate the person from the transaction. For whatever reason, it's not difficult for me to do in a new car.
So that's the end of this deal, anyway. The only regret I have is that I gave my word that I would buy the car and then I didn't... Still makes me sick to my stomach.
I'm in a similar field, and I go with my gut feeling a lot... I spent a lot of time educating my gut -- and enlarging it, lately, it seems... :-)
"The only regret I have is that I gave my word that I would buy the car and then I didn't..."
Well, happens all the times. When you're selling a car, that's just part of it.
As far as her bad financial decisions: So what; the dumb stuff was rolling negative into this car. We're all grownups here, and if someone wants to take it in the shorts with being upside down, hey, where do I send the check?
I'm leery of all deals involving MY money to pay off THEIR car, but if we do it at the financing bank, that's proper. I would have had no qualms about her side of this deal.
If I were in financial straits, I would prefer to be $5k in the hole + $2k to find some old beater rather than be on the hook for $23k. So I don't see this as such a bad decision on her part at all.
So if you wish to reconsider: You have my blessing. You'd probably do her a favor. How much are you saving over new, btw?
-Mathias
Mark
Must I wait for him to receive the title to get my vehicle? What can I do??
THX!!!
I'm looking at the Hurd dealerships in RI. I guess they have a Honda dealership, another that's a GMC, Cheverlot, etc..
Then they have a place called "Hurd Automotive" where they sell mixed used cars. I drove by it a few times (when I didn't want a car) and to me it always looked like they just fix up cars and resell them..
I found a couple cars that they listed on AutoTrader. The prices seem really low for 2002+ and the options they have compared to other dealerships.. Well, their prices are about the same as Edmund's TMV. Every other dealer is selling cars with much less options for a couple thousand more. A little weird too because I've been to a regular Hurd and they were a typical high pressure/haggling place. They don't even list the prices on their used cars. So I don't know what's up with this place. Their cars DO come with a warranty..
But is this generally the type of dealership to stay away from? I have better ones in mind that I've heard have a good rep.. they just haven't had anything I wanted in yet. This car has everything I wanted except not my first choice in color. It's the second choice. lol. (trying not to let that influence me, I've waited this long. I'm skeptical, it could be a too good to be true thing?)
While it is preferential to buy from a dealer with a good reputation as long as this dealer is not known for dumping re conditioned accident or flood vehicles you should be ok.
Their prices may be low because they are trying to get customers in and do not haggle much on the price.I know some used dealers mark their used vehicles up sky high and when they come down it seems like you are getting a good deal.
*I'm skeptical, it could be a too good to be true thing?*
Thanks.
The drop happens when the new year models hit the showrooms, which is usually the Sep-Oct timeframe.
Terry.
But this is silly. Legal action my foot. Learn from it, and strike the iron while it's hot. Leave a cash deposit next time, then pick the car up when the bank is open and you can get the rest. When the deal is sweet, you gots to be quick. A check from someone you don't know is of dubious value, and so many people have second thoughts after agreeing to buying a car... I don't condone what the guy did, but I understand why it happened.
The seller was being a jerk, agreed, but you're on the road to be something much worse.
Welcome to the world of buying $6,000 cars. It's not for the faint of heart. And FWIW, there are not a lot of 9-year-old cars that I would pay that kind of money for, no matter what they look like. KBB is a joke, except it's not funny.
Start over.
-Mathias
Was the seller a jerk.?: Yep.!
Was he in the "wrong" morally: Yep.!
Would this absolutely send me flying: You betcha.!
Will this fly in court: Nope.!
Let me tell ya what ya got here -- Zero (unfortunately) ....
The biggest mistake here: TIME.!
Anytime you mix time with money, you're usually going to come out a loser .... in this guys mind, you're 8/9 days away .. thats a long time for someone to wait and think, especially when the $$ is in the: "here and now" ...... whether you're buying boats, cars or homes always be locked and loaded .....
Live and learn ......
Terry :shades: