Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Yes, almost always your insurance carrier an do it for less and you can drop it later when you're no longer upside down. You say you put 25% of the total cost down, That would mean you owe around 81-82% of the price of the car (less TTL). You may not need gap insurance.
but I am considering the vin etching service. That didn't seem unreasonable for $100 and it offers a $5k insurance policy in addition to the insurance payout if the car is stolen.
I wouldn't go with the vin etching simply because it most likely would not prevent your car from being stolen. The insurance policy may make it worth it (how likely is it that the car will be stolen?) but check the fine print to see what it does and does not cover.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
You have to be VERY CLEAR. Let the family member drive the car for a couple of days. Take it to your mechanic and find out what needs to be fixed. However, once you give them the vehicle, they are on the hook.
Unless of course, it is your kid ...
They always are but since they're almost never armed I wouldn't worry about it. You did the right thing
Any opinions?
I was helping son no.2 with some home repairs otherwise I would have responded sooner but it looks like you've already gotten the advice I would have given, (from 'drewba' and 'snake'), concerning the gap insurance and Vin Etching (don't ever think about falling for this gimmick).
'jlawrence' had good advice about cleaning the windows if you're going to sell the car yourself. There is nothing that makes an otherwise clean car look dirty than dirty windows.
I'd try not to sell to family members because no matter how clear the conditions of sale are, if something happens, your going to look like the bad guy and you'd probably feel responsible if anything does happen.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
Sell it and be done with it.
As for the question about gap insurance - always. If you ever are uninsured, insure it. Even if it's $1000 or so - that's $1000 coming out of your pocket. And go through your main company because they have the lawyers and clout. Just the paperwork alone of running between two agencies is - I wouldn't do it.
THat's part of why I pay about $100 more than the cut=rate places for my insurance. State Farm are asses and are mean and the root of much evil... we've heard it all before... but darn it if they don't have good lawyers. Economy Insurance Partners or whatever company you get through Geico or your local insurance broker... Yeah, when it comes to legal matters, I tend to go for safe and secure.
That, and my seperation almost seven years ago cost $7000. And we were working together on it. I've learned to pay for the legal fees up front. Though in my case now, as a small addition to my paycheck. Something like $100 a year for 10 hours of legal service. Well worth it, like gap insurance, if I ever need it.
EDIT - speaking of insurance, my GF called me on Friday saying that there was a condo complex on fire down the street. Two blocks away. But it could have been ours. You never know. Always have insurance these days.
I'm going to my insurer tomorrow just to check and see that the policy is in effect and check the deductibles. Looks like they put in the standard $500 deductible. I keep ours at $1000, that saves a lot of money (and I have enough set aside to cover the deductible, if the worst happens). Plus, in nearly twenty years of driving, haven't filed a claim yet (knock on wood).
Very glad you guys confirmed my initial feelings on the dealer offered services. Glad I avoided all of them.
I worked in a detail shop, for a new car dealer, and did the "paint sealant" and "fabric protector" jobs. Glorified wax job and scotch guard.
I'll talk to the insurance agent and investigate the gap insurance, but you guys gave me a good boost. Sounds like I'd be safe skipping it. But, I'll check with the agent and get the specifics.
As far as selling the car... I'm going out this weekend to clean it up. Plus it has a few problems I need to rectify before selling. My dad's a mechanic and I help him out... so it usually works out that we wind up working on all the family members cars. Today we were taking the auto trans out of my nieces '01 Escape, it needs to be rebuilt. So, my dad's gonna show me how.
I don't mind giving one of the family members a hand keeping it running. I just want a fair price from them. They pretty much know the rules. If they need it fixed it gets done when it getss done. If they need it sooner, go pay $80 an hour to have somebody fix it.
Friends, that's a different story. I'd never sell friends a car I've owned.
But to be honest I've only ever sold 3 of my own cars my entire life. It's happened so few times, I'm not even sure how it happened! I always feel a tinge of guilt getting rid of a car... even the Taurus which I highly disliked driving.
I am wondering at what point do used cars take a little extra "hit" in value when that model is about to be redesigned? Does it happen when the redesign is officially announced? When the new look hits the dealers? Or only when supply of the new model starts trickling into the used car lot?
In my particular case, I have done my homework and have decided on a used Cadillac CTS. Probably an 05 or 06. The 08, on sale late this year, is a complete redesign, not a freshening.
I assume that at some point, the first generation cars (03-07) will take a little extra hit in value. Moreso than just becoming another model year older.
I obviously don't want to buy right before that drop happens.
I do realize we're probably only talking a couple %. I also realize that perhaps, each dealer will absorb this cut on his own timeline, and perhaps do it as a series of gradual cuts.
Thanks,
Brian
I suggest you do a weekly used car value on the model you want. You may also want to this exercise with another vehicle that will have have it's new model introduced sooner than the CTS. This may provide some base line information for you so you know what to look for on the CTS. It would be nice to have you post your findings.
Thanks for the advice
Loki
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
...if "Car Value IS GREATER THAN what remains on the Loan", I don't need it? So, if I get it through my car insurance, I could drop it as soon as that math balances out?
If the 25% down is the total value of the car (assuming you are not rolling over debt from another car, aka "upside down"); your math is correct.
Again, total must be total.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I feel the same way about extended warranties, pet insurance...
Now if you were a person who drives say 30K a year we would probably discuss it.
jmonroe - hehe... I own my 9 year old, 147,000 mile Sentra, so there will be no rollover
snake - I'm a good driver (1 speeding ticket more than 10 years ago), but I'm not sure there's a good way to put a number on that... unless there's math for that, too?
drewba - the actual question... so, IF my car gets totaled, insurance cuts me a check for the ?market? value of the car. Check goes to pay off the loan... and the remainder is what I go car shopping with, correct?
Thanks,
Loki (frequent driver, infrequent car buyer:)
I own my 9 year old, 147,000 mile Sentra, so there will be no rollover ...so I really am looking at just the cost of the car (BTW, need a used Sentra?
No thanks I don’t need another car. However, since you’re so appreciative of the advice you’ve gotten here, maybe you’d like to consider donating your car to “The Edmunds I Need a Car to Drive to School Fund”. This fund is for newly licensed teenagers who need a car while in high school because their school district discontinues school bus service once you obtain your license.
Oh, wait .never mind, teenagers would never want a 9 year old car with 147K miles; they only want new high end cars. So, I guess you’ll have to park it at the laundromat with an attractive "For Sale" sign and see what it will fetch there.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I would agree, if there is a gap at all, it would be small and probably only for a few months.
His other option would be the big yellow bus.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
Unfortunately, it is as much the parents as the kids who do not want the older car. I have offered several co-workers cars in the $2-3k range that were in very good shape for their teenagers. Most of them EXPECT a $3000 car to be in as good condition as their 2 year old almost new car.
Egads, when I was a teenager, the options were a Pinto, chevette or a Ford LTD with no muffler and the like.
I am sure you are but how is everyone else around you? It only takes one idiot not paying attention running a red light and your car is toast.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Put an ad in the local JC's paper.
I'm about to work a deal on a Honda Civic LX Manual in the Baltimore, MD area. I intend to do most of the work (or as much as I can) through email. From lurking on the Prices Paid forum, I think I have a good idea of what I *should* pay for it. Here's the question: when I email the dealers, would it be better to put what I think is the acceptable number in the email, or should I give them a number a few hundred below that, and plan on "negotiating" (or getting lucky;)? OR, should I just send out a request for quotes and see what I get back?
Any help would be appreciated. I hope to be driving a new Civic in a few weeks!
Loki
First thing I have to ask is do you currently drive a manual? Driving a manual in a larger metropolitan area like Baltimore can be a challenge especially during rush hour.
If you are e-mailing a number of dealerships then you just may want to just ask for a quote.
If you have a price you want to pay you may just take that price directly to a dealer and use the Bobst (TM) method where you make a take it or leave it offer.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Have a stick. Love it. Yeah, it's a little pain when I'm actually STUCK in traffic, but that rarely happens since I do not commute during peak driving hours.
Yeah, I've seen Bobst method... and it looks like it could work if I had the stomach for it... which I'm not sure I do. I think I would rather stick to email... it would be better for me.
So, emailing the number... bad idea? I guess it's easier for them to say "no" too?
No its pretty much the Bobst (TM) method electronically. Just that I am adverse to making the first offer as it sets the lower limit on the price. I prefer the dealer to set the upper limit first.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
And, if you are emailing, just ask for the quote and see what happens. You may get an offer better than what you were prepared to offer them! If not, see who responds, and you can then go back to a certain dealer with your offer.
One point though that Bobst made is important. make sure they have the right car in stock, since a manual LX isn't likely to be the most common thing on the lot.
2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
when I email the dealers, would it be better to put what I think is the acceptable number in the email, or should I give them a number a few hundred below that, and plan on "negotiating"...
The following was posted on another board and was edited to reply to your post. Note that I allow the dealer to give me his price first:
When I bought my last car (June 2006) I bought via internet followed up with a phone call. I received a pretty good price via e-mail from the internet sales manager. The price was a little higher than what I wanted to pay but since it was close, I called to see if the internet sales manager could do better otherwise I was going elsewhere. However, when I called the next day he was out having some minor surgery and wouldn’t be back for about a week, so the receptionist connected me with one of their senior salesman.
I told him the story and he went to a higher authority and called me back in 20 minutes agreeing to my price but only if I would buy that day. Since I was ready to buy I didn’t have a problem with that. The deal went smoother than any other car purchase I have ever made and I have said as much here and on other Edmunds boards.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I have already found online inventories to be woefully out of date, even for Civics. I think that might change however - national media reports Feb. Civic sales were 20% lower than last year, and (I'm not sure I believe this part) they sit on lots 1 to 2 months now sometimes. I'd bet as inventory changes more slowly, the online inventory guys may be able to keep up.
Thanks to all! Hopefully, I'll be posting on the "prices paid" forum soon!
Loki
I think it should be even easier to find an LX Civic with a manual.
tidester, host
SUVs and Smart Shopper
Your goal is obviously to get as much off as possible. His (our goal as salespeople) is to retain as much gross as possible.
If you don't want to play by his rules then I guess you'll have to move on emailing other dealers. If he doesn't want to play by your rules then he won't get your business it's as simple as that.
Did you get any other replies from other dealers? Lexus is known for little discounts, so it might be a bit tough.
If you call the dealers directly you can achieve things faster than by back and forth email. Good luck.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
You will probably do better in Chicagoland where there are at least eight Lexus dealerships **BUT** if they all quote you, I doubt if there would be more than $300 difference.
The real question is whether you really want the car bad enough to pay the price. If not you, there will be three or four people in line waiting to buy it.
Boom, that's a great statement.
Some people seem to think the whole world should operate by their rules and they spend their whole lives getting frustrated. Others think they should conform to every rule that society tries to impose on them and they always worry about where they fit in.
Most of us eventually find our place somewhere in the middle.
Two phone ups:
Guy calls for best price on a Ridgeline Navi. I give him $500 off, and "hope" to get him in with promises of more discount cause my manager asked me to do that. I found out from my friend at another Honda dealer through causal conversation that he did the deal for this same guy and gave everything away.
Another guy calls from outta town for a Odyssey. I tell my manager that we're gonna drop our pants down for this one to get the deal cause I need it, and we did, and we got the deal. Everything was done over the phone and fax, and he'll be in this week to pick up his van.
2016 Audi A7 3.0T S Line, 2021 Subaru WRX
We will ask dealers that we transfer with allot if it is the same person we are working, and we will do the same for them in return.
You might out sell us but we will do our best to not let you do it with our own merchandise.
I don't blame you for this nor do I think anyone would and if I were in the biz I'd make it tuff on the buyer too.
It sounds like what 'isell' has been harping on since I've been here. Namely, give someone a price and they'll shop it all over town and not give you the courtesy to meet or beat the deal. Being in the biz this has to get old but like I've said here before, "for every one you lose like this you must get one". I have to believe I'm right but it sure must be frustrating. :mad:
As for making a trade to satisfy this kind of customer, it would take the threat of not being able to buy groceries for me and the family to get me to go along with this. :sick:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
-mike
That's always an option but from what I've seen and heard about buyers like this, is that they are very impatient and usually when they want something they want it NOW.
By not doing a dealer trade, the buyer might even go back to where they can get it quickly if all else fails. Sometimes you just have to let them wake up; if not on their own, then with the hammer you have in your hand.
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
I'm asking too much, aren't I? I am going to either need to put more down, or pray that interest rates drop or some sort of incentive program pops up soon, right?
yes you are, there are only so many ways you can make numbers work. One thing to be aware of is that you might not get what Edmunds says the car is worth for a trade in, many people here state that those figures are on the high side.
You can try getting a little bit on each (a slightly lower cost, slightly lower interest rate and a little more on the trade in), however I don't think it will work. It looks like you will have to compromise. Either pay more monthly, buy less or keep the Passat (which you should do if its not giving you issues).
To be totally honest it appears you are buying more car than you can really afford and not take this deal. Either keep your current ride or find something much less expensive.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Why not just make them give you a blind bid? That way they are more incline to give you one of their best prices instead of just meeting or slightly beating the other guy.
Personally I don't tell one dealer what the other dealer is offering to sell me something. It doesn't matter to them, if they beat it with their best price they can, if they can't they cant. They don't need another dealerships price to give me their best price.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
A buyer could do what a guy I met at a Christmas party last year said he did.
He got an e-mail from a dealer that was on the other side of town so he took this e-mail, which he placed in a 10 in. by 13 in. manila envelope, to the dealer in his neighborhood and pulled it out just far enough so that the local salesman could see the heading of the e-mail showing that it was addressed to him and who it was from. He then said to the local guy, “if you can beat this deal I will buy from you”. The salesman said how am I supposed to beat it if I can’t see it? He said give me your best price and I’ll take it from there. Needless to say the salesman was irritated but he went to his manager with the story.
He comes back with a very good price but they were high by $75. So this guy gets up to leave saying “you missed” and I’ll show you I’m not lying and he shows him the e-mail. This guy said for that price he wasn’t going to go to the other side of town and was ready to say “write it up” but before he could get the words out of his mouth, the salesman said don’t leave, “let me talk to my boss”. The salesman comes back and says, “we’ll beat that price by another $75”. So he bought at that price.
I never met this guy before so I asked the host, who also heard the story, if this guy could be just telling a good story but I was assured that this guy would do just what he said.
When I told Mrs. jmonroe this story she gives me this weird look and says, “now you’re going to try that, huh”? I just said, who .me? :surprise:
jmonroe
'15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D