Car Buying Advice - Help negotiating deal with dealership - think they are trying to get over

beholdhonda

Hi –

I am new here and need some help please. I go back to the dealership this evening. I want to buy a Honda Civix LX or EX but the dealership says I don’t qualify for a Honda Civic. I only qualify for $17K through the bank for a used car… but they can get me in a 2017 Honda Fit LX.

This quote seems way off to me.

Credit score 574 experian.
2017 honda fit lx sales price: $16,767 ( The dealer claims he is taking a $534 loss)
Interest rate: 18.99%
Down payment: 1K
Payments: $471 per month w/gap. -$8 without gap.
Term: 72 month
State taxes: 6%

These numbers don’t add up to me. Why would my payment be so high, even with subprime credit? Something just does not seem right.

They have used vehicle for less than 13K that I was looking at and think one of those will be a better deal. Please let me know your opinions. I should probably work on my credit and wait.

They are really trying to push me into this Honda Fit, instead of one of the used cars like the Accord or Civic. I prefer something bigger and more solid if I am going to spend my money.

ohiohondaguy

Invoice on a Fit is 17317 so he is taking a (minimal) hit on the up front price of the car. That interest rate is where Honda will make some of its money back. It wouldn't make sense for you to get that new Fit because in the end you would be paying almost 35k for it.... Which is why they want you to. Have they provided any financing numbers for the used car?

beholdhonda

Thank you for responding Ohiohondaguy . They haven't provided any information on a used vehicle and as a matter of fact they seemed upset that I even brought up a used vehicle. The used car division is a separate department and the current salesman I am working with is in new car sales

They have a 2008 Honda Civic $9500, 1 owner, 60K miles, I am interested in. They also have a 2013 Honda Civic coupe, 30,975K miles, $13,750.00 that is certified pre-owned,

The quote seems shady because it does not appear anything is being taken off of the car, even with a small down payment. I used car loan calculator and my payments came close to $350.00 and under. I just don't get how my payments for the fit would be so much at 72 months.

PF_Flyer

There have to be charges they are including in the financing because even with the 18.99% rate, financing $15,800 (approximate price minus down payment) you come up about $100 less that what you quoted, Have to run the loan amount up to about $20K to get near $471. Over $3k for the gap??

beholdhonda

PF_Flyer said:

There have to be charges they are including in the financing because even with the 18.99% rate, financing $15,800 (approximate price minus down payment) you come up about $100 less that what you quoted, Have to run the loan amount up to about $20K to get near $471. Over $3k for the gap??

Thank you for the reply. He sent me a text message stating I am only paying $597.00 for Gap which is $8.29 a month. I told him I do not need gap coverage..... that I can purchase from my insurance agent and asked how much would the payment once gap is removed. He stated my payment would go down $8.

I wanted the Honda Civic which is $18+K, but they said I did not qualify for it and the bank only approved me for $17K. I go to the dealership tonight and need to have a response for him and high price.

beholdhonda

Are the vehicle sales tax; tags and title fees included in the financed amount?

isellhondas

You are not in a position of strength here with your credit score.

I would be very surprised if Honda is doing the financing. I never knew them to accept sub prime customers but I've been gone awhile so this could have changed.

I would buy the most sensible and best 10,000 car you can for the time being and work to improve your credit score. that's the sensible approach anyway.

beholdhonda

isellhondas said:

You are not in a position of strength here with your credit score.

I would be very surprised if Honda is doing the financing. I never knew them to accept sub prime customers but I've been gone awhile so this could have changed.

I would buy the most sensible and best 10,000 car you can for the time being and work to improve your credit score. that's the sensible approach anyway.

Thank you for responding.

I agree with you. They have a 2008 Honda Civic, one owner, 60K miles for $9500.00 and a 2007 Honda accord 3.0 SE. 90K miles for $8500.00 located at their used car division. I inquired about the used cars but the new car sales manager started saying my interest rate would be so high....

I contacted the used/Certified pre-owned sales division on my own today and have an appointment,

I know I am not in a position of strength with regards to my credit score, but I won't allow businesses to take advantage and be unfair with me because of it.

I am taking your advice and if I can't find a car for less than 10K then I will buy a Hooptie and continue building my credit.

isellhondas

Good luck to you! Soon, you should be in a better position!

beholdhonda

thank you ISELLHONDAS. I went to the dealership and every car close to 10K or less than 14k they kept saying the bank wouldn't finance me for. They want to put me in a 2015 honda civic coupe lx, 25k miles, that cost $14500 with a 72 month term, $400 a month and 20% rate. I know they are hiking the rate up because they asked me what rate was I at in the new cars department, 17%? and I said no, they had me at 18.00%.

It is disheartening how they attempt to be greedy and increase the rates. I asked him how was my payments and term so high with my down-payment and cost of the car. I asked the amount that was being financed and he danced around the question.

tbirdmarco

would try an nother dealer not go back to this one seams very shady the whole dealer ship. are you oppend to any other makes or just want to stick with Honda. hope this helps an bit.

beholdhonda

I wanted a vehicle that wit good reliability ratings and longevity, which is why I'm looking at Honda. I may check out Kia or Hyundai.