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Coming Up On a Deal. Is it a Good One?

misscrfmisscrf Posts: 3
edited May 2016 in Kia
I test drove a 2017 Kia Sportage, but the price was a bit higher than I wanted. The dealership was able to secure a 2016 LX with convenience package, and it looks like it will be around a $320 payment. I'm going to look at Jeep Renegade and Ford Escape tonight, just to make sure I've tested more than one car. I've been researching online, but really nervous about this new purchase. Below are the details of what I'm looking for and the deal I'm looking at.

Looking for:
Crossover SUV
good gas mileage (as close to 30 MPH as possible)
tow capacity for a small camper
really want a remote start, but can get after market
payments around $300/mo

deal pending:
2016 kia sportage lx
convenience package
3000 trade-in value
1000 deposit
works out to about $320 payments
66 mo @ 0% interest (I have excellent credit)

What do you all think? Should I jump???

Comments

  • steverstever Posts: 52,462
    edited May 2016
    I have, er, certain biases, so take this with the usual lumpy salt grains. :)

    No one should be a payment buyer. Focus on the selling price of the car with all the fees and add-ins. If the "out the door" number works then the payments should fall into place.

    I don't like remote starts - my thinking is that it's better for the car just to get in and go (and I've lived from Anchorage to Las Cruces - comfort is a fleeting thing and doesn't take long to achieve. Why idle?). Plus I don't like putting aftermarket accessories in new cars - there's a lot of computers tied into the wiring these days and a flaky install can cause a lot of expensive problems down the road (even dealer installed factory options can cause havoc, like my old Subaru's factory alarm going off at 2 am after a few years).

    We have an appraisal link here so that you can tell if the offer on your trade-in is decent or not. And the folks over in the Real World Trade-in Values discussion have great numbers too. If there's a CarMax near you, they may be interested in your trade and may give you a quote. If so, you can use that quote to get more for your trade in or just sell it to CarMax.

    And you can use the Make | Model dropdown menu above to price out the Sportage or other SUVs. You'll plug in your zip code and options, etc. and wind up with invoice, MSRP and True Market Value.

    Your goal is to beat the TMV average, not pay too much in fees and get an okay deal on the trade-in. Note that the negotiation for the trade-in really is a separate transaction and should be treated as such, as much as possible. Oh, and remember that you are really buying a one year old car, so your depreciation driving off the lot will be a bit more than driving a 2017 off the lot.

    About deposits - unless it's a really unique, one-off car or a special order, any deposit with a dealer should be refundable. Dealers love deposits since they take shoppers out of the market, but you should shop your quote around to make sure you are getting the best deal. (That's the ideal anyway, not a lot of people have time to do a lot of that).

    Okay, rant over. :)

    Have fun shopping and holler with any questions.
  • thebeanthebean Parts UnknownPosts: 1,124
    @stever, lots of good advice here. 
    2015 Honda Accord EX, 2017 Honda Civic EX-T
  • steverstever Posts: 52,462
    Thanks - I absorbed it all hanging out with guys like you in the forums here for umpteen years.

    Next we can talk about the buying calculators, holdback, why invoice doesn't mean squat, and who knows what other tricks of the trade there are. :)

    What's really funny is after all the games and padded fees, dealers really don't make all that much money selling new cars. The profit is in used cars and service.
  • misscrfmisscrf Posts: 3
    Thanks for all the advice. You make good points. I ended up getting an even better deal on a Jeep Cherokee. I'm nervous but happy. I focus on payments, because I could care less about the total cost. I pay more than the payment to beat the interest, and I have great credit, so I am in a good position to get low or no interest. Here's to the buyer's remorse going away when I pick up my new ride tomorrow! I've never had a car this nice before, so I'm happy that I found one I will hopefully be glad I made the decision I did.
  • misscrfmisscrf Posts: 3
    Just to add, the reason I went with the deal I did, is even using your appraisal link, they offered me $1,300 over what I should expect to get for my trade-in. That helped me get to where I want and the car I am getting has a bunch of upgrades I wanted (heated seats, mirrors, steering wheel, and remote start). I'm getting more and more excited!!! I also priced out the car I am getting. It was a small bit above TV, but with the huge bump in the trade-in, they balanced getting me a good deal, which makes it all come out in the wash. I can't believe I'm getting a new car!!!! B)
  • steverstever Posts: 52,462
    edited May 2016
    Congrats!

    And you just killed the dealer's profit margin when they flip your trade-in. B)
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