I just paid $21,049 (includes destination charges) for a LX V6. It's $110 under the invoice price and I'm pretty happy with that. I lucked out that one was scheduled for delivery at the end of this week.
Quick question to those of you who bought thier care outside of the state they reside in and would register their car in... In addition to the sales tax of the state in which you bought the vehicle in, did you have to pay your own state's sales tax in addition?
Doesn't matter now (about the car price I was referring to) - we bought a Camry V6. I think I am of the opinion that the Accord seats were better but it's the wife's car and she chose. Thanks for replying.
The one looking at the dealer demo for 26+. That's a rotten deal! I got my EX-V6 Navi new with mud flaps, wheel well protection, wheel locks (which are really almost standard) for 25,569, before tax. While yours would have a spoiler and hood protection (worth $5-600 together at most - to me), it sounds like you'd be paying basically the price of a new car equipted with such features for a car with thousands of miles.
I would think you should pay around 22,500. Anyone else? Really, beside the spoiler and hood protectant, you aren't getting much more than I got and it's used, for more money. While those accessories are nice, the dealer put them on, not you, and probably had some overhead or advertising account to charge them to. Don't feel you have to pay for them. Take the price that most seem to be getting for a new V6-Navi, and subtrack whatever the appropriate rate is for that much use.
I looked at buying in CA and registering in WA. If you take delivery of the car in CA you pay CA sales tax. However, when you register an "out of state" car in WA, you pay "use tax," not sales tax. The use tax rate happens to be the same as the sales tax rate. The good news is that you are credited use tax for the sales tax already paid in CA, so you only pay any difference between the WA use tax and the CA sales tax (i.e. you don't pay twice).
I'm in the Boston area and I'm about to see a major dealer to negotiate on an EX V6 sedan. Is anyone experiencing a limited availability for this car? I read a post which stated an over supply on these cars but I just want to get a general consensus to see if anyone has had to wait for this model in the last several weeks in case the salesman uses that "this car is hard to get" sales pitch on me. Thanks!
New, this car should be negotiable for $26k at the most (Edmunds TMV is $26.2k).
As a high-mile demo (it's essentially a hard-driven used car considering how salespersons show it off during test drives), it should be at least 15% off the new price: $22.1k (near umyaya's price).
The most expensive add-on is the wing spoiler, obtainable online for less than $200. Mudflaps are $65 and the redundant paint protection - that's probably $15 max.
I bought a white v6 manual trans yesterday here in southern california... $24,800 before tax etc... this unit had dealer add-ons of the MP3 player and a factory spoiler.
Just for common knowledge a demo car is not retailed as a wholesale car. Is not considered a used car for the fact that it has never been titled under anyone's name. if you are talking about depreciation (#2113) a Honda depreciates rule of thumb 15 cents per mile going by (Honda facts book). This forum is suppose to be informative and helpful.$22,500 inclusive of all fees would not happen, just as well that you could not find a car with the same miles in the used market for the same price. Current TMV on a new is $26,229 inclusive of freight. based on the research I have done on this car, is a hard to find vehicle specially if you are specific about colors. My recommendation for the person buying this car is to take invoice which is $25,472inclusive of freight, take 1 to 2% and deducted from invoice. An informative offer would make your buying decision a more enjoyable one. As for the spoiler 561.40 installed, splushguards installed 135, paint protection package 150-200. I hope that helps a bit to show you facts.
1) Experience (mine and others on this forum) shows that Below-Invoice Prices for new, not demo, Accords are fact. With 16 miles on the odometer, my Accord EX V6 coupe went for $900+ below invoice. Others have achieved similar prices on cars with less than 10 miles.
A NAVI model might be rarer, but its buyers aren't plentiful either. Honda did not plan this to be a limited-edition model to boost collectible value; the Accord is a mainstream car whose supply & demand balance is biased towards volume sales. If NAVI demand is high, Honda will simply make more of them available.
Given the right purchase strategy, it's not impossible for this model to be had for invoice or even below it.
2) A car's ownership title might (and that's a big might) only be relevant when selling it later as a "1-owner car." However used-car assessment methods by Edmunds, Kelly et al do not factor in the number of a vehicle's owners but rather its condition & MILEAGE at the time of sale.
That said, the car not having been "titled" is essentially just a dealer's panacea for the fact that it has significant driven mileage. A car with 6k miles has obviously been used (abused ?) whether it's been titled or not.
More important, if the car had been driven hard as a demo - and unfortunately in the case of Accord V6 automatics - it becomes a high risk proposition (tranny replacements are not known to last).
3) On accessory prices, an OEM spoiler is $371 and is $160 (ebay) for an aftermarket brand. OEM mudflaps are $59. Labor shouldn't be more than $100 to install these parts. In all, $530 for all-OEM parts, installed. Paint protection - what chemical compound is there that will cost $150-$200 to apply ?
Why $22.5k OTD is reasonable: the car was a promotional tool whose cost of $4k ($25.4k invoice - $21.4k before sales tax for proposed price bid) is spread out over the test drives.
If one test drive is 10 miles, there have been 600 test drives on this car. $4k / 600 is $7/test drive as cost of promo (VERY CHEAP way to promote a car, right ?). Assuming 10% resulted in a sale, the promotional test drive would have amounted to $4k/60 customers or just a $70 profit hit per subsequent car sold. Not bad. So, why shouldn't wisaacson bid $22.5k ? Dealer wants to have his cake and eat it too !
Does anyone know how much Honda Finance is charging for the leasing bank fee? Its usually $450-$550 but I would like to know exactly how much before negotiations begin. Thanks!
You do pay the state tax for the state in which you purchase the car. BTW, does anyone know if Honda is having incentives of cars other than the Civic Si? I noticed in today's paper (NYC) a Honda Dealer's add that mentioned $2000 in incentives and 1.9% financing.
Please keep in mind that my experience is limited to just 4 or 5 states, but here goes with one example. If you buy a car in Ohio, and you are not a resident, they provide you with a non-resident title, which usually costs under $30 in total, and you take that plus the window sticker and bill of sale to your state to register the car, and you pay the sales tax in the state in which you reside and register the car. I'm pretty sure this is the normal practice in the majority of states, although now I'm sure we are about to hear of all the exceptions.
I live within three miles of a state line, and have never bought a car in the state in which I reside, so, I have a little experience.
Dude, you seem way out there on this one. You seem almost personally offended by the #'s we have suggested, and you definately sound like a dealer to me. Hey, being a dealer is fine. But don't kid us that that demo is worth anything over 23,ooo on a good day. Sorry to you, and all, if this sounds like a personal attack, but your post sounded a bit defensive, and a bit pricey.
Atlantabenny has hit it pretty good. Please explain why anyone should pay much of anything for options installed on a dealer demo. The car is a used car. Ask anyone on the street if they'd want a car that had 6,000 test drive miles on it. Most are rightly afraid of 30+ test drive miles.
I paid less than 100 over invoice on that car (EX-V6 Navi) after it had only been out 2 weeks. Don't tell me it's an easy sale for every dealer. That car, while cleaner than most, has be "riden hard and put away wet."
TMVEXL in Graphite Pearl. I have to wait 10 days to get it as there are none in the state (and there are 5 dealers in town to play against each other). MSRP was $26,600, paid $22,249. Only extras were door guards, mud flaps and wheel well trim. TMV pricing for this in my area was 22,900 ($22,550 plus the dealer add ons). Not a bad deal for a car that wasn't on the lot...
It's a hot color. I have been tracking for 5 months. The price dropped $800 two days ago so I bought. Any other color and I would not have paid close to this. I had the blue one offered to me at $700 less - but wasn't interested in negotiating for something I didn't want.
And for a similar equipped Camry XLE, with new $750 rebate, I still would have paid over $1,000 more...made an easy decision for me.
When do I pay these? The dealer said I would get something in the mail within a few days and it's been 3 weeks and I still haven't gotten a notice of what I owe.
I think they are definitely worth it.. I put them on my last three Accords.. but, doesn't the '03 Accord already look strange? I don't think thats the mudguards fault! LOL
The title, it took around 3 weeks, sometimes I have heard of it taking more then a month. Dont worry , it will all work out, give it two weeks, if not call DMV. Good luck
Do you guys know how it works when paying with cash? I'm ready to buy on the 30th of this month and am not sure how the cash payment would work.
Since I would not know how much the final amount would be, how do I deal with paying in cash, if I want to take delivery of the car the same day.
Do I take a cashiers check for an amount close to what I'm expecting, or would they give me a final $ amount and then I go to the bank and get the check? Getting a cashier's check the same day after negotiation might not work, since it will be after 6 PM.
Or would they just take a regular check. Thanks in advance for your help.
Get a certified check that's slightly lower than the lowest OTD prices (including taxes, tag, license, documentation, etc.) for your desired model. This thread has quite a few OTD posts.
For one, I got my 03 EX-V6 coupe, no navi, for $24.5 OTD. Price included 6% sales tax, doc fee, delivery, roof visor, mudflaps, wheel locks and trunk cargo net.
If no OTD price info is available, calculate invoice price for your car to include applicable tax, delivery, doc fee ($250 max) tag & license.
Deduct $1000 from result for the certified check amount. Cover difference, if any, with personal check during negotiation. Dealer should be willing to accept a $500 personal check with a $15,000 certified check, right ?
If the car is bare of accessories, an educated guess based on this thread is that you shouldn't add more than $500. If the car has accessories, add the following: $75 for roof visor, $60 for mudflaps, $20 for pinstripes, $30 for wheel locks, $30 for "paint protection," $15 for glass etching. These numbers are at cost. At most, add 20% if you need to.
Buying end of month will matter a lot. Hope this helps.
Thanks for your replies. It really helps. Will do that. Planning to buy an 03 V6 EX in Dallas.
I have a couple of questions though. (1) Can I buy the car on April 30th and pick it up on May 1st, and maybe pay on May 1st? Would it still count towards their April sales, so I'll get a better deal? (2) Is it advisible to pay cash, since I get only 2% interest from the bank? My wife thinks we should not pay the whole amount.
In New york City may be a problem.. but Texas have a lot of land... Current economy is not strong.. car sale is slow... dealer will treat you like a king.
Therefore. I think... dealer won't have problem if you do all the paper work on April 30.. and pick up & pay full for the car later... Of course, they will ask you for a deposit...
When you pick up be carefull.. to check the car all over again...
I read someone on this board said before.. he bought an Accord LX.. but didn't pick up... after a weekend... he pick up the car.. and later he realize that the car had 150+ miles on it... Too late..
About finance: With 2% interest from bank... after tax.. real earn is just 1.35% (assume your tax rate is about 1/3)
If finance rate is not lower than 1.35%... and if you have $$...then I think .. => you should pay full... => you will save a lot of time.. and won't have to worry about payments, stamps, late payment... etc...
If $25k or so for the car is absolute discretionary income (you're not borrowing or using credit cards for other purchases after paying cash for the car), it makes sense to pay cash unless Honda's APR is lower than 1.35% (per daytona01's comment) - which we probably won't see in the foreseeable future.
However, if after paying cash for the car you'll be using 20% APR cards and such for other needs, you're better off 1) having the Accord financed at the going rate of between 4-6%, and 2) using your cash for subsequent purchases where credit cards would otherwise be used.
You'd enjoy a net opportunity saving of 16.35% this way (20% credit card APR - 5% Honda APR + 1.35% bank savings interest).
I'm betting if ilovehonda has $25K sitting around, that he's never paid credit card interest. There is no downside to paying cash, unless you just can't keep from trading for a better car, once yours is paid off.
I'm fortunate I know but I always pay cash (25 yrs now) and it's interesting. Paying over say $40k, they take personal check with a smile. Pay under $20k (last one was a Prizm @ $15k)and they call the bank, your mother, the priest, etc. In between those limits, treatment varies.
If one has an "alternative use of funds" like an investment that yields 7% (as in a moderately aggressive mutual fund), one would be financially ahead to put available cash on this investment option, then purchase a car on a low APR promo (3.9-4.9% for Honda, 0% for others).
The potential gain of doing this at a 3.9 APR car note is something like $500-$700 annually. Over a 5-year car note, the earning would be in the neighborhood of $1500 (earnings diminish over time because one draws monthly from the fund to pay the car note).
Today's APR promos on cars constitute cheap money one can take advantage of even if one had disposable funds.
Do you have any of these from the last three years? I wish I'd paid cash for the two cars I've bought in the last three years. I'd be about $15K ahead right now, with that money out of the mutual funds.
I have been offered $99.00 over invoice for a 03 Accord EX V6 navi. I have seen people posting about LESS than invoice. Should I wait until the end of the month..
I'm guessing not during last 3 years but my financial adviser (State Farm) tells me that moving forward, they're seeing 3%, 5%, 7% and 9% yields following an ascending order or risk.
I have been checking prices in central Mass for a 03 EX-V6, but the best price I've gotten was from Boch Honda in Norwood, which should be a little closer to you. Over the phone, they said that they have been letting them go at invoice, but the salesman also said that they might be able to cut it a little lower if once I come to the showroom. They did have the highest paperwork fee I've seen so far at $200. My other best price (So Far) was Peter's in Nashua, NH at $23,874 + $100 paperwork fee. This has all been preliminary price checking since I am not going to by for a month or two. Good luck.
I bought my EX-V6 Sedan on Saturday 4/5. Gave them a personal check for the whole amount and asked if they could hold it until I moved money around. My salesperson said they could hold it until Wednesday. When I went in to see the Finance guy, he said he will hold it until Friday which is what he did. He even had both of us sign a form stating that the dealership would not cash the check until 4/11. Worked out great.
Car loan is not like mortgage.. which is tax deductable for the interest... (if you pay 4.5% for mortgage... for 33% tax rate.. at the end of year you will get 1.5% back.. => cost you just 3%...)
7% yeild.. you must be the lucky guy... Assume 7% yield is real... unless it is tax free... otherwise if your tax rate is 33%... your real earn after tax 4.8%
If finance rate for car loand is really lower that than rate.. otherwise.. After bad experience recently with the market...I think majority people (who have lost so much with the investment) would rather pay full... instead of keeping money in risky investment and always have to cross fingers with market... and pray they not cooking the book...
Dealer will love to have you finance... (assume not 0% apr) b/c the house will gain little % commission...
Can't argue that when one is cash-endowed and totally risk-averse, cash for cars simplifies life.
Otherwise, for those looking to grow their assets incrementally, it won't hurt to consider using cheap cash alternatives for purchases while investing funds where the risks are acceptable to the individual.
As to the 7% yield, this is a "moderately aggressive" investment posture suggested by a Fortune 25 financial services group as of 4/22/03 considering the stock/bond/CD horizon for the coming 12 or so months.
So we situate this post properly, please note that it responds to ilovehonda's original query on, essentially, the pros and cons of car-buying in cash. That he has alternatives with attendant risks was important to know, and that's the whole point of the "hold your cash purchase" posts.
I consider myself a diligent shopper when it comes to cars because I hate paying too much. I have owned 3 Honda's previously, so I knew I wanted to stick with Honda.
I shopped for a Accord EX V6 w/NAV for about 3 months while I was getting ready to sell my current car. I contacted or visited 7 dealers in the LA/Orange County area.
The absolute BEST price I got was $200 over invoice at Rock Honda in Fontana. One dealer (not to remain nameless - Fladeboe in Lake Forest) had the guts to counter the Rock Honda price with one $1000 HIGHER and then hung up on me when they wanted to argue that I would not get that price. Dealers are unreal sometimes...
So, I picked up my new car yesterday. It is a beautiful vehicle. I think the SoCal market is unusual because we are so car-oriented here that demand is high for new vehicles and the higher trim lines are sought after as well.
I have seen some posts about $30 over invoice, and my experience was that there was no way to find that out here. Maybe in Barstow on the hottest day of the year 10 minutes before closing, but not under normal circumstances.
I've been watching this board for a few months now and appreciate everyone's honest input. Now its my turn.
I've read about all the folks who have gotten invoice and frankly, I have no problem giving a hard working salesperson some kind of profit so that they can eat. I had planned to pay about $200 over invoice for a EX V6 sedan and when I contacted the dealer, he gave me a price a little below that as his best price before I could open my mouth. If he had not treated me with respect in the process, I may have tried to go lower but I was and the deal was completed within an hour. In my opinion, thats the way the car buying process should be, great service and price = great buying experience. Thanks to Herb Chambers of Boston.
I HAVE A 2002 HONDA ACCORD EX V-4 AUTO BLK WITH 21K AND OWE $18,900 ON IT. I LIKE TO TRADE IT FOR THE 2003 HONDA ACCORD EX-L V-6 AUTO. RECEIVED AN INTERNET QUOTE FOR $23,674 + TAX&LICENSE.
IS THIS A GOOD PRICE? WHAT IS THE MAXIMUM TRADE-IN ALLOWANCE? DOES THIS DEPENDS ON DEALER, MODEL, YEAR, ETC?
NEEDS SOME ANSWERS?????
BTW, I'M IN ORANGE COUNTY CALIFORNIA. ANYONE KNOW ANY HONDA DEALER WITH BETTER PRICING ON THIS ACCORD, LET ME KNOW. THANKS GUYS AND GALS!!!!!!
I paid less than invoice and my dealer still profited. Consumer Reports gives a wholesale price for most new cars, which is the invoice price minus any dealer incentives, rebates, etc.
For the model I bought, Consumer Reports indicated that, due to a holdback the dealer receives from the manufacturer at the end of the year, the dealer would make about $700 even if I paid invoice. I paid about $200 under invoice, so the dealer made $500, which I think is fair.
It really depends on the offers, incentives, rebates, etc. for a particular car, but I'd bet that in many cases the invoice price (or even less than that) still gives the dealer a profit.
Ok. I've lurked and studied and am now *almost* ready to take that big leap into the blood-tinged waters of new car purchasing. I've pretty much decided upon the 2003 Accord EX Sedan w/leather - I chose the Sedan because although I'd prefer the sportier looking coupe, I felt it drove like a Tank compared to the Sedan. For $12 Consumer Reports sent me their report on the Accord and its lower than TMV. What is your experience with Consumer Reports versus TMV? Any advice when approaching the dealership? I'm in the Northern Chicago area - shopping in Gurnee. Thanks!
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kyfdx
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I would think you should pay around 22,500. Anyone else? Really, beside the spoiler and hood protectant, you aren't getting much more than I got and it's used, for more money. While those accessories are nice, the dealer put them on, not you, and probably had some overhead or advertising account to charge them to. Don't feel you have to pay for them. Take the price that most seem to be getting for a new V6-Navi, and subtrack whatever the appropriate rate is for that much use.
I read a post which stated an over supply on these cars but I just want to get a general consensus to see if anyone has had to wait for this model in the last several weeks in case the salesman uses that "this car is hard to get" sales pitch on me.
Thanks!
As a high-mile demo (it's essentially a hard-driven used car considering how salespersons show it off during test drives), it should be at least 15% off the new price: $22.1k (near umyaya's price).
The most expensive add-on is the wing spoiler, obtainable online for less than $200. Mudflaps are $65 and the redundant paint protection - that's probably $15 max.
I'd negotiate $22.5k out-the-door for this car.
if you are talking about depreciation (#2113) a Honda depreciates rule of thumb 15 cents per mile going by (Honda facts book). This forum is suppose to be informative and helpful.$22,500 inclusive of all fees would not happen, just as well that you could not find a car with the same miles in the used market for the same price. Current TMV on a new is $26,229 inclusive of freight. based on the research I have done on this car, is a hard to find vehicle specially if you are specific about colors. My recommendation for the person buying this car is to take invoice which is $25,472inclusive of freight, take 1 to 2% and deducted from invoice. An informative offer would make your buying decision a more enjoyable one. As for the spoiler 561.40 installed, splushguards installed 135, paint protection package 150-200. I hope that helps a bit to show you facts.
1) Experience (mine and others on this forum) shows that Below-Invoice Prices for new, not demo, Accords are fact. With 16 miles on the odometer, my Accord EX V6 coupe went for $900+ below invoice. Others have achieved similar prices on cars with less than 10 miles.
A NAVI model might be rarer, but its buyers aren't plentiful either. Honda did not plan this to be a limited-edition model to boost collectible value; the Accord is a mainstream car whose supply & demand balance is biased towards volume sales. If NAVI demand is high, Honda will simply make more of them available.
Given the right purchase strategy, it's not impossible for this model to be had for invoice or even below it.
2) A car's ownership title might (and that's a big might) only be relevant when selling it later as a "1-owner car." However used-car assessment methods by Edmunds, Kelly et al do not factor in the number of a vehicle's owners but rather its condition & MILEAGE at the time of sale.
That said, the car not having been "titled" is essentially just a dealer's panacea for the fact that it has significant driven mileage. A car with 6k miles has obviously been used (abused ?) whether it's been titled or not.
More important, if the car had been driven hard as a demo - and unfortunately in the case of Accord V6 automatics - it becomes a high risk proposition (tranny replacements are not known to last).
3) On accessory prices, an OEM spoiler is $371 and is $160 (ebay) for an aftermarket brand. OEM mudflaps are $59. Labor shouldn't be more than $100 to install these parts. In all, $530 for all-OEM parts, installed. Paint protection - what chemical compound is there that will cost $150-$200 to apply ?
Reference:
http://partscheap.com/accordexterior03.htm#spoiler
http://partscheap.com/accordexterior03.htm#splash
http://cgi.ebay.com/ebaymotors/ws/eBayISAPI.dll?ViewItem&item- - =2411427987&category=33638
If one test drive is 10 miles, there have been 600 test drives on this car. $4k / 600 is $7/test drive as cost of promo (VERY CHEAP way to promote a car, right ?). Assuming 10% resulted in a sale, the promotional test drive would have amounted to $4k/60 customers or just a $70 profit hit per subsequent car sold. Not bad. So, why shouldn't wisaacson bid $22.5k ? Dealer wants to have his cake and eat it too !
Thanks!
I live within three miles of a state line, and have never bought a car in the state in which I reside, so, I have a little experience.
hope this helps,
kyfdx
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Atlantabenny has hit it pretty good. Please explain why anyone should pay much of anything for options installed on a dealer demo. The car is a used car. Ask anyone on the street if they'd want a car that had 6,000 test drive miles on it. Most are rightly afraid of 30+ test drive miles.
I paid less than 100 over invoice on that car (EX-V6 Navi) after it had only been out 2 weeks. Don't tell me it's an easy sale for every dealer. That car, while cleaner than most, has be "riden hard and put away wet."
It's a hot color. I have been tracking for 5 months. The price dropped $800 two days ago so I bought. Any other color and I would not have paid close to this. I had the blue one offered to me at $700 less - but wasn't interested in negotiating for something I didn't want.
And for a similar equipped Camry XLE, with new $750 rebate, I still would have paid over $1,000 more...made an easy decision for me.
kyfdx
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Anyone getting deals in the Boston area?
Thanks in advance!
Since I would not know how much the final amount would be, how do I deal with paying in cash, if I want to take delivery of the car the same day.
Do I take a cashiers check for an amount close to what I'm expecting, or would they give me a final $ amount and then I go to the bank and get the check? Getting a cashier's check the same day after negotiation might not work, since it will be after 6 PM.
Or would they just take a regular check.
Thanks in advance for your help.
Estimate the total:
Invoice price + tax + about $200 for paper fee.. I think it will be close to final number
After you are done the deal and get the final amount... give them your certified check...
If your check is more: they will write for you a check back for the different.
If your check is short: I think they will accept personal check or credit card for the small different.
Good luck with your purchase
For one, I got my 03 EX-V6 coupe, no navi, for $24.5 OTD. Price included 6% sales tax, doc fee, delivery, roof visor, mudflaps, wheel locks and trunk cargo net.
If no OTD price info is available, calculate invoice price for your car to include applicable tax, delivery, doc fee ($250 max) tag & license.
Deduct $1000 from result for the certified check amount. Cover difference, if any, with personal check during negotiation. Dealer should be willing to accept a $500 personal check with a $15,000 certified check, right ?
If the car is bare of accessories, an educated guess based on this thread is that you shouldn't add more than $500. If the car has accessories, add the following: $75 for roof visor, $60 for mudflaps, $20 for pinstripes, $30 for wheel locks, $30 for "paint protection," $15 for glass etching. These numbers are at cost. At most, add 20% if you need to.
Buying end of month will matter a lot. Hope this helps.
I have a couple of questions though.
(1) Can I buy the car on April 30th and pick it up on May 1st, and maybe pay on May 1st? Would it still count towards their April sales, so I'll get a better deal?
(2) Is it advisible to pay cash, since I get only 2% interest from the bank? My wife thinks we should not pay the whole amount.
Thanks for your help.
Current economy is not strong.. car sale is slow... dealer will treat you like a king.
Therefore. I think... dealer won't have problem if you do all the paper work on April 30.. and pick up & pay full for the car later... Of course, they will ask you for a deposit...
When you pick up be carefull.. to check the car all over again...
I read someone on this board said before.. he bought an Accord LX.. but didn't pick up... after a weekend... he pick up the car.. and later he realize that the car had 150+ miles on it... Too late..
About finance:
With 2% interest from bank... after tax.. real earn is just 1.35% (assume your tax rate is about 1/3)
If finance rate is not lower than 1.35%...
and if you have $$...then I think ..
=> you should pay full...
=> you will save a lot of time.. and won't have to worry about payments, stamps, late payment... etc...
However, if after paying cash for the car you'll be using 20% APR cards and such for other needs, you're better off 1) having the Accord financed at the going rate of between 4-6%, and 2) using your cash for subsequent purchases where credit cards would otherwise be used.
You'd enjoy a net opportunity saving of 16.35% this way (20% credit card APR - 5% Honda APR + 1.35% bank savings interest).
regards,
kyfdx
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The potential gain of doing this at a 3.9 APR car note is something like $500-$700 annually. Over a 5-year car note, the earning would be in the neighborhood of $1500 (earnings diminish over time because one draws monthly from the fund to pay the car note).
Today's APR promos on cars constitute cheap money one can take advantage of even if one had disposable funds.
kyfdx
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Edmunds Moderator
Thanks
I have been checking prices in central Mass for a 03 EX-V6, but the best price I've gotten was from Boch Honda in Norwood, which should be a little closer to you. Over the phone, they said that they have been letting them go at invoice, but the salesman also said that they might be able to cut it a little lower if once I come to the showroom. They did have the highest paperwork fee I've seen so far at $200. My other best price (So Far) was Peter's in Nashua, NH at $23,874 + $100 paperwork fee. This has all been preliminary price checking since I am not going to by for a month or two. Good luck.
-J
7% yeild.. you must be the lucky guy...
Assume 7% yield is real... unless it is tax free... otherwise if your tax rate is 33%...
your real earn after tax 4.8%
If finance rate for car loand is really lower that than rate.. otherwise.. After bad experience recently with the market...I think majority people (who have lost so much with the investment) would rather pay full... instead of keeping money in risky investment and always have to cross fingers with market... and pray they not cooking the book...
Dealer will love to have you finance... (assume not 0% apr) b/c the house will gain little % commission...
Honda new car in cash
If you have questions/comments, I can arrange for that discussion to be re-opened.
Otherwise, for those looking to grow their assets incrementally, it won't hurt to consider using cheap cash alternatives for purchases while investing funds where the risks are acceptable to the individual.
As to the 7% yield, this is a "moderately aggressive" investment posture suggested by a Fortune 25 financial services group as of 4/22/03 considering the stock/bond/CD horizon for the coming 12 or so months.
So we situate this post properly, please note that it responds to ilovehonda's original query on, essentially, the pros and cons of car-buying in cash. That he has alternatives with attendant risks was important to know, and that's the whole point of the "hold your cash purchase" posts.
I shopped for a Accord EX V6 w/NAV for about 3 months while I was getting ready to sell my current car. I contacted or visited 7 dealers in the LA/Orange County area.
The absolute BEST price I got was $200 over invoice at Rock Honda in Fontana. One dealer (not to remain nameless - Fladeboe in Lake Forest) had the guts to counter the Rock Honda price with one $1000 HIGHER and then hung up on me when they wanted to argue that I would not get that price. Dealers are unreal sometimes...
So, I picked up my new car yesterday. It is a beautiful vehicle. I think the SoCal market is unusual because we are so car-oriented here that demand is high for new vehicles and the higher trim lines are sought after as well.
I have seen some posts about $30 over invoice, and my experience was that there was no way to find that out here. Maybe in Barstow on the hottest day of the year 10 minutes before closing, but not under normal circumstances.
I've read about all the folks who have gotten invoice and frankly, I have no problem giving a hard working salesperson some kind of profit so that they can eat. I had planned to pay about $200 over invoice for a EX V6 sedan and when I contacted the dealer, he gave me a price a little below that as his best price before I could open my mouth. If he had not treated me with respect in the process, I may have tried to go lower but I was and the deal was completed within an hour. In my opinion, thats the way the car buying process should be, great service and price = great buying experience.
Thanks to Herb Chambers of Boston.
I think I did pretty good.
IS THIS A GOOD PRICE?
WHAT IS THE MAXIMUM TRADE-IN ALLOWANCE? DOES THIS DEPENDS ON DEALER, MODEL, YEAR, ETC?
NEEDS SOME ANSWERS?????
BTW, I'M IN ORANGE COUNTY CALIFORNIA. ANYONE KNOW ANY HONDA DEALER WITH BETTER PRICING ON THIS ACCORD, LET ME KNOW. THANKS GUYS AND GALS!!!!!!
For the model I bought, Consumer Reports indicated that, due to a holdback the dealer receives from the manufacturer at the end of the year, the dealer would make about $700 even if I paid invoice. I paid about $200 under invoice, so the dealer made $500, which I think is fair.
It really depends on the offers, incentives, rebates, etc. for a particular car, but I'd bet that in many cases the invoice price (or even less than that) still gives the dealer a profit.