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Comments
this gives me good insights into the price points. I hope the incentives should have gotten better by November
njguy
Price: $37,700.76
Sales Tax: $2,335,36
Tag/Registration: $507.25
Dealer Fee: $699.95
Total Price: $41,243.32
For a 36 mo lease with 12k, 0 down, payment quoted was $564
Seems to me like my payments should be around $511.....what am I missing?
Is this a good deal? Thanks for any help....I am a single mom trying to do this on my own for the first time and just want to make sure I’m getting a fair deal.
Thanks for input/advice!
The MSRP is $43,925 minus $3,000 = $40,925
That is only $318 less than the $41,243 I was quoted. Seems pretty close to me. Am I missing something? I apologize if it's obvious, I've never been through this before.
(I forgot to mention the residual value is $22,841).
Still think it's not a good deal? Anyone else have any thoughts?
Thank you!
In addition to the $3,000 incentive Acura is giving the dealer there is also a $1,000 hold.
Here is the numbers that I have got.
0$ drive of (DMV title first month payment include) and then 35 payments for 600$ include tax.
10k year mile and 24100$ residual value after lease.
residual was 51% and money factor 0.00065
I think I`m overpaid a little on car price but its already to late.
Thanks.
anyone have experience what is the fair purchase price I should agree too?
I was going to buy Honda CRV....but am leaning to Acura...?
thanks
mitch
I currently have a 2010 MDX with 5 payments left. I am currently paying $596 per month for and MDX with no tech package and 12K per year mileage. I paid first month payment...all taxes and fees rolled in. I leased during the financial crisis so my options were limited at that time.
Today, I was offered a 2012 MDX... same exact truck for $576...same deal and they will take back my truck early. 12K mileage p/y (plus they will throw in the 2500 miles i have left on my turn in vehicle) with all fees rolled in. I asked for running boards which increased the price $20 per month.
Good deal? Bad deal?
Note that I live on Long Island where thousands of people just lost their cars in Hurricane Sandy so I suspect there is a car shortage. Thanks in advance.
Thanks.
Currently have a 2010 MDX base with 5 payments left paying $596 per month, 12K per year. Paid first month payment...all taxes and fees rolled in.
I was offered a new 2012 MDX base for $576 with early turn in. Same deal (12K mileage p/y). $596 with running boards.
Here are the details:
MSRP of new vehicle: $43,925.00
Capitalized cost/Sale Price: $40,000.00
Residual Value: $23,935.50
Money Factor: 0.0009
Purchase Price for the 2010 I'm returning: $27,548.00
Think this is worth pressing the button on?
thanks,
Eddie.
I need to purchase a car in the next 2 weeks, so would appreciate any guidance.
I'd like to know the out of door price and any financing options (e.g. 0% APR or 0.9% APR)
Thanks,
Figure a couple hundred bucks for fees then add tax which will vary for you to get 'out the door' price. I believe you can do 0.9% for up to 60 months through Acura.
$40K is the magic number for me. Maybe I need downsize to an RDX.
Got my MDX with Advanced and Entertainment packages this weekend. $49,500. 0% financing for 36 months. I'm in NJ.
Happy car buying!
New 2012 w/ Tech package, 40,828 OTD (no sales tax applies, I live in excise tax state where those taxes get collected with tag). Local dealer in Tulsa would not match price
Audi has 0.9% financing through the end of December (I think).
Where did you end up buying?
42510.00 out the door (47850 List) Dealer had all season mats in vehicle
but said they were throwing them in @ that price. I guess
MDX is now standard with the rear cargo mat, anyways, it had it.
We pay no sales tax here.
Doc fee was 199.00
Traded my 2009 Acura MDX base with 18K miles. Got 25,000.00 trade in.
I think I could have gotten high 26's for it myself, but just didn't want to
mess with it this time.......
I find it amazing that when we bought our 09, no Acura dealer within 100
miles had a single MDX on the lot and now many dealers have nearly 100
of them.
Oh well, my life loved the 09. We had it nearly 4 years and spent
no more than a few hundred total on maintenance etc. Never had an issue
with the car but the extra features of the tech package will be nice to have
Acura financial is now offering .9 percent for 60 months. Despite Edmunds
saying it is for College Grad program, it's for everyone.
I instead opted for 3.25 percent from my credit union for 72 months.
Purchased at Bob Howard Honda, Oklahoma City
Everyone there was friendly, helpful. I recommend them highly.
saying it is for College Grad program, it's for everyone.
I instead opted for 3.25 percent from my credit union for 72 months.
Sorry, but that doesn't get an "A" for financial prudence from Professor Habitat.. Not sure how much you financed, but using $35,000 just as an example:
(1) Acura 60/0.9% = $596,78/mo = $35,805 in total payments ($805 interest)
(2) Credit Union 72/3.25% = $535.70/mo = $38,571 total payments ($3,570 interest)
In this example, the credit union choice costs $2,765 more in interest over the life of the loan. Over 4 times as much interest expense as the Acura loan. If you trade the vehicle after 3-4 years, the difference will be even greater in percentage terms because the shorter term Acura loan amortizes faster than your longer term credit union loan.
Its none of my business what you do with your money. But it still pains me a bit to see someone trade a perfectly fine 4 year old MDX with only 18k miles to essentially spend another $18k on top of the trade to get a tech package and extra do-dads. And then go for a 6 year loan that will cost them close to another $3k. This looks like a bit like wheel in a hamster cage to me. But the good news is that I'm not a professor, so my grade doesn't count. And if you are happy with your new MDX and the monthly payment, I guess that's all that matters.
You might have also thought to write that the payment on the Acura
financed deal would be almost 60 bucks higher than the 3.25 percent
at my credit union. My wife pays the Acura payment and wanted
to stay at 488 a month instead of going to 545 just to have more
equity at trade in time and save a paltry 1200 or so in interest
(I use the number 1200, because we keep our vehicles 3 or 4 years,
not 5 or 6 which would have been required to realize the full impact
of your interest example.
Since I had 7700 in equity plus 3000 plus down this time plus a 5300 plus dollar discount, I really don't think I'm hurting. I have a helluva lot
of equity.
Having said all that, mind your own business........
As an alternative, you could have taken some of the money used as a down payment to offset the monthly payment. For example, taking $3,000 off the down payment, and putting it aside, would increase a sixty month payment by about $50 or so. However, a portion of the $3,000 put aside could then be added to each month's payment, over the thirty six months you keep the vehicle. You would then essentially keep the $488 payment while still enjoying the .9% rate.
Of course, if you only keep a vehicle for three years, a lease would likely lower the payment even more.
You've financed roughly $31,900 to get to payment options of $543.92 (0.9%/60) vs. $488.25 (3.25%/72). Difference of $55.67
In 42 months, your wife will saved $2,338 in payments, but....
She will have paid $2,657 in interest, vs. $666 on the Acura loan.
That's a $1,991 difference, not $1,200, and...
in 42 months, you will still owe $14,050 to your credit union vs. $9,721 on the Acura loan.
That's $4,329 in additional equity you/she WON'T have. for your next trade for a 2016 MDX with a techno do-dad double plus package.
In a forum where people try to figure out how to save a few hundred dollars by sharing information, I would submit that staying as far away from a higher rate, longer term loan on a vehicle that you are going to trade in 3-4 years is an absolute no-brainer way to save a couple of grand.
Pee away your car dollars as you wish. But please, just don't use do it with a home mortgage loan, as it appears a few million others have. And now expect prudent taxpayers to bail them out of foreclosure. At this point, it becomes everybody's business and my solution is to point in the direction of a nice homeless shelter.
Thanks.
To take it a step further, my visa card is offering 0% for 15 months, so I could have just written a check for the car from there and not paid any interest at all, but the downside would be having to pay it off in 15 months would have resulted in my wife having a payment of over 2K per month, but it certainly is a very viable option.
Ultimately it just comes down to a choice. Pay more per month to accelerate your equity but live with a higher payment. In my case keeping the payment under 500.00 was as much a psychological thing versus an actual need for my wife's peace of mind. As to setting the down payment aside in a lockbox for payment assistance, it certainly seems like a good idea, but in reality that 3K would be allocated to doctor's appointments and groceries instead.....and knowing that, I opt to put it in the car to get to the magic under 500 threshold.......
I can pay the car off any second I so choose which would REALLY accelerate equity, but for me, I can make my money grow more than 3.25 percent per year.
As to whether the advice here is warranted or welcome, I dunno.......maybe someone will benefit from your guy's number crunching, but I'm guessing anyone here could have figured all that out on their own and ultimately might have chosen what you suggest, or might choose what I did (lower payment for longer term at a higher rate).
This whole debate could have been eliminated though if Acura just decided
to do .9 for 72 months but it's not really my debate, I'll leave it to you guys to argue the finer points of. As for me, it was just a choice and I chose to give my wife the lower payment......
Great, but can you make your money grow at 38.9% per year, because that's what this choice is costing you.
That $55.66 lower monthly payment saving you $2,338 in monthly payments over 42 months, will cost you $4,329 in lower equity in month 42. You would have to take each $55.66 in monthly payment savings and invest it at a return of 2.78% per month, compounded monthly to end up with the equivalent of the equity you won't have in the MDX. That's a 38.9% annual return.
Do the math if you don't believe me. First month's $55.66 savings turns into $171.13 in 42 months, second months turns into $166.51 in 41 months..... 41st months savings turns into $57.21 in 1 month. Add them all up and in 42 months, you have exactly $4,329 to offset the equity you don't have in the MDX.
Frankly, the reason I am belaboring this isn't really to chastise you, but to make the point that, while most people here are intelligent enough to figure out the math, I think a lot DON'T and as a result, make egregious errors in judgement based upon a lack of accurate and thorough analysis. Like on the basis of "I can make more than 3.25% on my money". That sounds simple enough. But doesn't take into account that by increasing your payment a measly $55 per month, you are saving 2.35% in interest rate (3.25 vs. 0.9 difference) on the entire $31,900 loan balance every month.
Maybe I should set up an Edmund's Auto Loan business. Given the opportunity, I would have offered to pay you $65 per month to take the Acura loan in exchange for you giving me the additional equity you would have had in 42 months. You could have saved another $10 per month/ $420 total and I would have ended up with $4,329 on an investment of $2,757 over 42 months. That's a 28% annual rate of return for me. Heck, make it $75 that I'll pay you. That's still a 19.6% annual return for me. How about next time??
Thank you for doing your analysis--it will certainly help some people who couldn't do the math themselves.
What they won't see and what you haven't told them is that EQUITY has absolutely nothing to do with RETURN ON INVESTMENT. Equity is defined as the difference between what you owe on something and what you get for it, period!
In this case, the additional equity that I would have achieved after 5 years taking the Acura loan must be offset by the ADDITIONAL PAYMENT I HAD TO MAKE DURING THAT TIME, in this case, about 60 bucks a month or 60 months, or 3600 additional dollars, and you're trying to tell me that this 3600 dollars just appeared out of nowhere in the form of 40 percent interest paid to me???? Are you smoking mushrooms? The equity is offset by the additional payments made plus the interest savings, but the interest savings based on anyone's numbers will never ever exceed 2.35 percent per year. So there you go.........I forewent accelerated equity in exchange for a lower payment which is an offset, not a loss, not a gain......not a MAGICAL 40 percent return on investment......
Also, to state that dealers LOVE payment buyers, you're correct, but in this case the dealer lost because of this payment buyer, because I financed through my credit union, not through their lender who would have given them a little fee on the backside. Dealer didn't get to sell me any add ons either, no warranties, no credit life, no accident a health, no gap protection, no undercoating or glass etching, NOTHING! payment buyers love that crap.
Payment buyers also never seem to focus on one thing a time. I do......It's price first, then trade in, then interest rate, then payment, not the other way around. I'm convinced, I got a decent discount on this car, I had lots of equity in my other car (PAID FOR OUT OF MY POCKET IT DIDN'T APPEAR MAGICALLY VERSUS SOME OTHER INTEREST RATE......the equity was created by me! ) and then I created some more equity with a downpayment on this one to arrive at my wife's magic comfortable payment amount which was 489.00 a month, the same as the payment on her last one......
a 2.35 percent premium paid in annual percentage rate will NEVER morph into the magical "I Failed simple math" numbers that you are spewing
forth.
The return on investment for opting for the other loan would have never ever exceeded 2.35 percent per year and the additional equity created
by the one year shorter term would have come out of my pocket,
and that my friend is not return.......that's called the INVESTMENT!
I owe 32000.00 on a car that listed for 48000.00 2 days ago. I THINK I DID OK!!!!! I didn't buy on payment, I SELECTED a payment for myself and
was willing to pay the price for that payment.
As I've said, if someone else wanted to do the .9 percent rate, they
could certainly do so and their payment would be in the mid 500's
and yes, the equity would accelerate faster, but it would never accelerate faster without their 60 buck a month additional investment and that is the one thing you missed in your twisted alice in wonderland assessment.
I hope my illustration of the deal I made prior to all of this financial counseling helps someone else......I won't be posting anything else
unless Habitat tells me about a new Ponzi scheme that would have
resulted in my Acura sitting in my garage right now with a free and clear
title with no investment from me at all LOL
For those of you wanting to convert a .9 percent annual percentage rate into a 39 percent annual rate of return, check with habitat.....he will send you his pamphlet entitled "Hallucinogenic money advice and what it means to me".
(1) You have a $32,000 loan.
(2) You chose 3.25% rate for 72 months = $489.75 payment (assumes end of month)
(3) Acura offered 0.9% for 60 months = $545.62 payment
(4) Difference in payment = $55.87 per month
(4) In 42 months you trade, sell or crash the MDX into a tree.
(5) Your payments were $2,346 less during that time
(6) Your loan balance at the end of 42 months = $14,094
(7) Your loan balance under Acura loan would have been = $9,751
(8) Difference in loan balance is $4,343
(9) You traded $55.87/month, $2,346 total for a $4,343 higher loan balance in 42 months.
(10) Your $2,346 "savings" would have to grow by 85% to become $4,343
(11) That would be a 19.2% annual return if you had full 42 months to invest $2,346. You don't.
(12) Each $55/month would have to be invested at 38.9% to get to $4,343 in month 42.
(13) Re-read above slowly if necessary.
If steps 10-12, an internal rate of return (IRR) analysis, is confusing that's OK. Re-read #9 a few times. And tell me how you think saving $55 per month but then owing $4,343 more in 42 is a financially prudent decision? Or tell me what step above you don't agree with??
As for "Hallucinogenic money advice and what it means to me", great idea. A couple of chapter themes:
(1) Putting $100 per month in savings in 1969-1974 when I was a kid from a paper route/grocery store job that covered the first year of MBA school in 1980.
(2) Paying off student loan to cover second year, ahead of schedule.
(3) Paying off a 30 year 8% home mortgage loan (taken in 1988) in 13 years by refinancing to a lower 15 year rate and making $300 additional principal payments every month.
(4) Never having a car loan in my life.
(5) Keeping most cars for 8-10 years and 100k+ miles so that I never even think about (4).
(6) Having a responsible daughter that's happy to drive a loan-free 2005 MDX with 116,000 miles, even though it doesn't have the latest do-dads.
(7) The fun of shopping for a Cayman S, with my checkbook in hand.
(7) The far greater personal satisfaction of of being able to fund scholarships at my high school and college to honor my modest parents who taught me financial responsibility.
Oh yeah, I could write a book. But it probably won't have a chapter about "The virtues of trading cars that haven't made it to 20k miles every 3-4 years and taking out 6 year loans at higher rates to assure that you are forever stuck in perennial auto loan debt"
Seriously, you made a choice that is 100% your prerogative. I'm simply pointing out the math that I think you should have considered doing, beforehand. Your previous post suggests you really didn't get my previous attempt. Perhaps now. Or we can try again in 42 months. Enjoy your new MDX now and I'll enjoy my Cayman S in a few months. And hopefully no hard feelings either way.
My intent was to support habitat1's assertion that it's unwise to accept a higher interest rate and a longer term in order to make the monthly payment acceptable. Generally speaking, trading a 2.35% interest premium for an extra 12 months is a bad idea. Less experienced buyers could benefit from habitat's implicit advice that if one can't afford the payment, he is probably better off doing something more constructive with his money than buying a car that is beyond his means.
The purpose of this forum is to share information and advice with potential car buyers. Many people apply the advice they pick up on these forums at the dealership and save money they might have given away. I'm willing to bet that for every person who takes offense to the advice given here, there are ten people who learned from it.
Finally, I disagree with habitat1 in one area. I love having a car payment. If somebody wants to give me nearly-free cash (low interest rate loan or a big rebate) that I can apply to my mortgage or investment portfolio, I take it every time (assuming I'm buying a car anyway). Heck, two of my cars are paid off and I'm thinking about refinancing them at 1.75% so that I can pick up cheap stocks after Obama drives us off the fiscal cliff...
and as you said you always have to choose
The best choice is always to buy a car that you can pay cash.
Next best is to minimize the total interest paid over the life of the loan and by life I mean the time you intend to keep the loan not the maturity term.
We all come here to save few hundreds in cast of the vehicle and then spend it all in interest.
Hope you do not do this with bigger ticket items like house.
We all make mistakes/overlook things the key is to learn and move on....unless the plan is (knowingly/unknowingly) put yourself in a situation to have someone come and bail you out.
Enjoy the vehicle.
Monthly payment inclusive tax=$485 Drive off=$1289(inclusive 1st payment, registration/DMV fees,etc)
Is this a good deal.... Thanks for your response
HAPPY HOLIDAYS!!!
First, it makes little financial sense to extend a loan by twelve months while accepting a significantly higher interest rate just to save a lousy $50 a month. The ultimate fact is you saved nothing and will end up paying more due to the longer finance period.
Second, anyone who is concerned over $50 a month probably should not buy a $47,000 vehicle.
Third, this deal clearly supports the adage that payment buyers rarely achieve the best deal. You did, in fact, buy on payment. You stated you took a longer loan to avoid a higher payment. That is buying based on payment.
With this being said, if you are happy with your deal nothing else counts, I suppose.