Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
Options

Buying Tips - How Do I Get the Best Deal?

14142444647102

Comments

  • Kirstie_HKirstie_H Administrator Posts: 11,242
    Perhaps a person with this much financial sense already HAS a high-yield account.

    MODERATOR /ADMINISTRATOR
    Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name.
    2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
    Review your vehicle

  • bobstbobst Member Posts: 1,776
    "This of course is assuming I can get 6% in 2 years"

    Which is about 4% after taxes.
  • jmonroejmonroe Member Posts: 8,989
    Capital One pays 5.00% APY on their money market with no fees and no minimum balance.

    I don't consider 5.00% high yeild.

    When I think HIGH, I'm thinking at least 7.5% so this would put you into an investment type of an account.

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • jmonroejmonroe Member Posts: 8,989
    Perhaps a person with this much financial sense already HAS a high-yield account.

    That's what I meant when I said "piggy back". :)

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • drewbadrewba Member Posts: 154
    7.5% is definitely high; I wasn't aware that savings/money market accounts paid anywhere near that high in today's market.

    I guess that's a sure sign I can't pay the price of entry. :-)
  • jmonroejmonroe Member Posts: 8,989
    7.5% is definitely high; I wasn't aware that savings/money market accounts paid anywhere near that high in today's market.

    Note that I said INVESTMENT type of an account to give you at least 7.5%.

    I don't think you can get as high as 7.5% for savings/money market accounts today. I have some liquid money in these and you're right, they ain't this high. :(

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • joel0622joel0622 Member Posts: 3,299
    I am drawing 6.25% APY on my checking account right now and an additional .75% on anything over $50K. I am a long way from getting the extra .75% :D
  • drewbadrewba Member Posts: 154
    Sure an investment account can get you 7.5% or better, but at the cost of higher risk.

    If you're putting together a rainy day fund, you're looking for something guaranteed, hence a money market account.
  • jmonroejmonroe Member Posts: 8,989
    Sure an investment account can get you 7.5% or better, but at the cost of higher risk.

    I won't argue with that but to get something you have to give something. There ain't nothin free. There are several mutual funds that have averaged over 7.5% for the last 3 years if not more (don't ask which ones these are because you know we can't do that here). I don't consider this much of a risk.

    Now, if you want 10% or more you're going to have even more risk, maybe even a few months with sleepless nights. :(

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • plektoplekto Member Posts: 3,738
    Just invest in energy companies. Oil and Uranium seem to always do well, since it's a finite resource. At least, the easy to obtain stuff is. And as it gets harder to get out of the ground, yep - prices go up and so do stock prices.
  • madmanmoomadmanmoo Member Posts: 2,039
    You have a checking account with 6.25%??? What bank is this?

    -Moo
  • joel0622joel0622 Member Posts: 3,299
    You have a checking account with 6.25%??? What bank is this?

    link title

    The restrictions are that you have to get online statements, have at least 10 debit card transactions a month, have at least one direct deposit, and access your account on line once a month. Along with the rate you get free ATM usage Nation Wide, and free bill pay on there site.

    Also it is an additional 1.26% APY on balances over $50K not .75% like I said before. So the account can actually draw you up to 7.51% APY on balances over $50K
  • mattgg1mattgg1 Member Posts: 191
    jmonroe -

    I think you should have read this person's post more carefully.

    They mentioned putting money into a "high yield savings account." They didn't say anything about investment accouts/mutual funds/ect.

    For a savings account, I think 5% could certainly be considered "high yield."
  • brickfrenzybrickfrenzy Member Posts: 38
    For a savings account, I think 5% could certainly be considered "high yield."

    That's exactly right. I'm not talking about throwing this money into a mutual fund or something like that, I want it to be liquid and easily accessable. Thus, the savings account route.

    On a completely different topic, the dealer with whom I'm working has quoted me a price that's $395 over invoice for my S-Plan price (which should be invoice). It's such a non-random number, that it seems to me to be a dealer added fee. Another thread over on the CX-9 boards stated a "dealer prep and handling fee" of about that much. That sounds spurious to me. Is this a common fee? Should I try to negotiate it away?
  • mattgg1mattgg1 Member Posts: 191
    joel0622 -

    Thanks for the info. I checked into that account, and while you can earn 6.25% on balances up to $50K, your rates goes DOWN to 1.26% on anything over $50K.
  • madmanmoomadmanmoo Member Posts: 2,039
    This is WAY off topic, but I use ING direct for one of my savings accounts. I'm returning 4.5% currently and that is no minimum, no fees, no penalties for withdrawal. And it's all online. It seemed like a great deal to me.

    I want one of these savings accounts to be very liquid and this did the trick for me.

    -Moo
  • tidestertidester Member Posts: 10,059
    off topic, but I use ING direct for my savings account

    No doubt you're saving all that money preparing to buy a new car while you pick up great tips here on how to get a great deal when you collect all that interest! :)

    tidester, host
    SUVs and Smart Shopper
  • joel0622joel0622 Member Posts: 3,299
    You are correct Matt, I just re-read it. I am so far from the $50K plateau that I really did not give that part a lot of attention :D
  • madmanmoomadmanmoo Member Posts: 2,039
    Oh yes, I forgot to mention that. Thanks! :surprise:

    -Moo
  • dtownfbdtownfb Member Posts: 2,918
    Sorry for assuming brickfrenzy. From your original post and how you were "squeezing" each piece of the transaction, I figured the payment was out of your reach.

    Waht type of lease are you looking at? I saw your post on the Real Value forum. those guys are normally pretty accurate.

    Good luck.
  • brickfrenzybrickfrenzy Member Posts: 38
    Hey, no problem.

    Basically, I'm looking at a Mazda CX-9 GT AWD, which, when optioned my way, MSRP's at around $38,500. With S-Plan pricing, and Mazda's current incentive rates on leases, and depending on how much my VW is going to be worth, I should be in the lease for $400-450/month for 24 months @15k miles. If I buy, I'm in for over $700. I'd rather squirrel that $300 away and spend it in 2 years to buy the CX-9 offlease than hand it over in interest payments now.
  • lislislislis Member Posts: 3
    -wait till the last of the month. THIS IS IT!
    -be ready to buy that day.
    -offer ridiculous amounts, they will try to get as close as they can as quickly as possible so that they can move on and sell another car to the next customer. They work hard and fast at the end of the month.
    -sit there and keep saying 100 less here a 100 less there.
    -if buying a luxury car it is usually better to lease.
  • dtownfbdtownfb Member Posts: 2,918
    Not a bad lease deal. As long as you can stay under the miles, enjoy.

    Good Luck
  • jaatjaat Member Posts: 14
    My apologies if I am using the wrong forum for my questions.

    This weekend I got a deal from one the dealer for Highlander and wanted to take some opinions from the experts out here in this forum.

    It is a 2006 2 WD, White Color 3.3-liter Highlander with almost 32K miles on it. It have leather seats, third row seat, Moon Roof and JBL sound system.

    Dealer bought it from some Rental Car Company. KBB Retail Price for the above vehicle is $26500 and dealer is asking for $19995 + 10% fee (Tax, Title and document etc.). He said till last week, ticket price for the vehicle was $26995 and they reduced it as it is in their lot from last 40 days.

    I was surfing the net and talked to some people and I was advised to negotiate for almost 25% of what is the ticket price for a used vehicle from a dealer.

    Now how much should I negotiate on $19995? What can be the closest value for this highlander?

    Thanks in Advance !!!
  • boomchekboomchek Member Posts: 5,516
    Let me get this straight.

    He's selling it to you for $19995, or $26995?

    If his price was $26995 and you can have it for $19995, that's nearly 25% off.

    If that's the case, I can't see them discounting the car more especially as you saw for yourself KBB value is in the $26k range.

    When we put used cars on sale and dscount $3k, there isn't much more room to move on the price, we're pretty much selling them at cost.

    Please clear up so we can help.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • jaatjaat Member Posts: 14
    He is selling for $19995.
  • boomchekboomchek Member Posts: 5,516
    So if the regular price was $26995 (about right with the KBB), $19995 seems like an awesome deal. I very highly doubt that you will get another 25% off ($5000).

    If they're desperate to get rid of it you migth be able to get another few hundred bucks.

    Like I said when we mark our cars down that much, there's rarely any room left to move on the cars, and eventually someone recognizes that it's an awesome deal and buys it.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • boomchekboomchek Member Posts: 5,516
    So if the regular price was $26995 (about right with the KBB), $19995 seems like an awesome deal. I very highly doubt that you will get another 25% off ($5000).

    If they're desperate to get rid of it you migth be able to get another few hundred bucks.

    Like I said when we mark our cars down that much, there's rarely any room left to move on the cars, and eventually someone recognizes that it's an awesome deal and buys it.

    2016 Audi A7 3.0T S Line, 2021 Subaru WRX

  • jaatjaat Member Posts: 14
    Thanks Boomchek. I appreciate your comments.

    However there are some things which is bothering me -
    1. If this deal so good why they could not sell that on the weekend itself (they publish this deal in local newspaper car's ads, same place where I notice this). There should be a rush in their showroom for such a fantastic deal and vehicle should go away very fast.
    2. Salesman is saying that till last week ticket price was $26995 (nobody knows whether that is true or not). Then why did they reduce the price by $7000? Salesman's explanations is that vehicle is in their lot for 40 days so that's why they reduce the price. Is that a valid explanation?
    3. It was a rented vehicle and driven a lot in 1 year (32K), how much this factor contribute into the price of the vehicle and its negotiation?
  • metro123metro123 Member Posts: 100
    I would NOT buy a former rental car no matter how good the deal is. Go to youtube.com and do a search for rental car abuse. There are dozens of videos of people doing crazy, abusive things to their rentals.. spinning tires, off roading, doughnuts in parking lots ect... buyer beware!!
  • snakeweaselsnakeweasel Member Posts: 19,592
    1. If this deal so good why they could not sell that on the weekend itself (they publish this deal in local newspaper car's ads, same place where I notice this). There should be a rush in their showroom for such a fantastic deal and vehicle should go away very fast.

    You did say it was a two wheel drive right? If so that could be the reason why it didn't go away very fast. Most people want 4WD or AWD in a SUV.

    Salesman's explanations is that vehicle is in their lot for 40 days so that's why they reduce the price. Is that a valid explanation?

    yes it is if true. As inventory sits its carrying costs increase. Also if its been sitting there for some time then its more likely will be there longer unless its discounted.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • snakeweaselsnakeweasel Member Posts: 19,592
    1. If this deal so good why they could not sell that on the weekend itself (they publish this deal in local newspaper car's ads, same place where I notice this). There should be a rush in their showroom for such a fantastic deal and vehicle should go away very fast.

    You did say it was a two wheel drive right? If so that could be the reason why it didn't go away very fast. Most people want 4WD or AWD in a SUV.

    Salesman's explanations is that vehicle is in their lot for 40 days so that's why they reduce the price. Is that a valid explanation?

    yes it is if true. As inventory sits its carrying costs increase. Also if its been sitting there for some time then its more likely will be there longer unless its discounted.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • snakeweaselsnakeweasel Member Posts: 19,592
    1. If this deal so good why they could not sell that on the weekend itself (they publish this deal in local newspaper car's ads, same place where I notice this). There should be a rush in their showroom for such a fantastic deal and vehicle should go away very fast.

    You did say it was a two wheel drive right? If so that could be the reason why it didn't go away very fast. Most people want 4WD or AWD in a SUV.

    Salesman's explanations is that vehicle is in their lot for 40 days so that's why they reduce the price. Is that a valid explanation?

    yes it is if true. As inventory sits its carrying costs increase. Also if its been sitting there for some time then its more likely will be there longer unless its discounted.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • jmonroejmonroe Member Posts: 8,989
    …dealer is asking for $19995 + 10% fee (Tax, Title and document etc.).

    It looks like there are some catches to the $19,995 that is being advertised. The first is the 10% fee which I’ve never heard of in my neck of the woods but if they are charging it, that’s another $2,000. Second is what appears to be the ever popular “documentation fee “, until this is defined you have no idea what it is. So, with the 10% fee and a doc fee of lets say $305 the cost of this car is now $23,000 not the $19,995 that it first appeared to be.

    If I were you I’d double check the real value of this car and if it is the $27,000 that you say it is, I’d offer $20,000 plus Tax, Title and Registration fees and see if they will take that. Then decide how much more you’re willing to allow yourself to be bumped up.

    Let us know how it goes.

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • snakeweaselsnakeweasel Member Posts: 19,592
    It appeared to me that the 10% included tax, title and doc fees. So depending on the state sales tax rate doc fees could be very low.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • blufz1blufz1 Member Posts: 2,045
    You can get a new one for 25k!!!!!!! What r u thinking?
  • snakeweaselsnakeweasel Member Posts: 19,592
    Don't ask me, I am not thinking of buying it.

    However its a bit more for the third row, leather seats, moon roof and sound system.

    So it comes to be about 7-8 grand cheaper than a new one.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • blufz1blufz1 Member Posts: 2,045
    Sorry. I just wanted the buyer 2 think twice. Were I to pay 20 to 25k it would only be 4 a new car.
  • jmonroejmonroe Member Posts: 8,989
    It appeared to me that the 10% included tax, title and doc fees. So depending on the state sales tax rate doc fees could be very low.

    I see what you’re saying and at first I thought the same thing because tax, title and doc fee were in parentheses. It’s just that I’ve never seen plus 10% after a price before and thought this 10% was an additional fee.

    In my state of PA the sales tax is 6% and if you live in the county I live in you have the privilege of paying an additional 1% sales tax (someone has to pay for the new baseball park and football stadium!!). So, with a sales tax of 7% and lets say $100 for title, plates etc. the doc fee is $500 assuming a $20,000 car. This $500 doc fee is very high compared to the $55 we pay in PA and the higher the cost of the car as long as you have this 10% fee the higher the doc fee becomes.

    Unless they advertise a lower fee for a $40K car the doc fee would be a whopping $1100 (at the same 10% fee, which would include 7% sales tax and $100 title, plates etc.) which is a lot higher than anything I’ve heard of. It’s for this reason I said what I did. If the 10% fee is like you said and there is a good chance that you are right, this is a very creative way to advertise a car.

    jmonroe

    '15 Genesis V8 with Ultimate Package and '18 Legacy Limited 6 cyl

  • snakeweaselsnakeweasel Member Posts: 19,592
    Here in IL we have about the same tax rate but counties and cities add on to that so its not unusual to have 7-8% sales tax rates (in Chicago IIRC its over 9%). So it is very possible (again depending on location) that tax, Title and license can be about 10%. They could be using 10% as an estiment.

    2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D

  • plektoplekto Member Posts: 3,738
    Another thing is that they wanted to move it asap because the auction was coming up and they needed the space for something they think they hit gold with. If it's a small/cramped lot, slow movers are quick to go when a hot toy comes in.
  • sriversriver Member Posts: 1
    The guy you're talking about is actually in Dallas. He used to be a big-time dealer but now he does a radio show in Dallas and in Houston. He's good. www.carguyshow.com
  • 210delray210delray Member Posts: 4,721
    When my wife and I picked up our Pontiac G6 from Alamo in Vegas last month, it had ZERO oil life left on the monitor and 12,000+ miles on the odometer. We drove it another 1600 miles. Do you suppose the original oil was still in the car? (The oil was black, but not sludgy.) Oh, and the windshield washer fluid reservoir was almost empty -- we refilled it with plain old water from the motel faucet.
  • kyfdxkyfdx Moderator Posts: 265,441
    Did you rent at the airport, or elsewhere?

    I've rented from Alamo on our last two trips (from airport locations), and have been really happy with the condition of the cars.

    Given a choice, I picked the Fusion over the G6, though...

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 210delray210delray Member Posts: 4,721
    Airport. We didn't have a choice on the car -- there was NOTHING in the full-size down to economy class when we arrived. We were wondering what to do when a lone G6 was driven in. So we jumped on it.
  • kyfdxkyfdx Moderator Posts: 265,441
    One car? :surprise:

    I had the choice of about 30 intermediates... All freshly washed and ready to go (Saturday evening in PHX).

    Corolla, Fusion, brand-new Sentras, G6, Caliber, Outback, Mustang...

    One car at the Vegas airport??!!

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • 210delray210delray Member Posts: 4,721
    One Alamo car that was not a luxury car, minivan, or SUV. We had reserved the car online before we left home. This was at 11 PM, also on a Saturday.

    While we were loading up our G6, a second G6 was driven in. Ours was clean, but obviously vital maintenance like changing the oil and refilling the washer reservoir was neglected. Also, I found out the tires were underinflated -- great for legal 75 mph driving on the interstates. (I brought my tire gauge with me and aired up the tires the next day at a gas station.)
  • kiawahkiawah Member Posts: 3,666
    210,

    You are too much. I can just picture the discussion with airport security, as to why you find it necessary to cary a 5" tire gauge on-board.
  • imidazol97imidazol97 Member Posts: 27,671
    Can a tire gauge be a weapon?

    2014 Malibu 2LT, 2015 Cruze 2LT,

  • 210delray210delray Member Posts: 4,721
    It's plastic, made in China. No more "dangerous" than a ball-point pen, right?

    I wouldn't even think of trying to carry on my 30+ year old tire gauge made of real metal (and with a pointy tip).

    RE: security. On the way home, my wife inadvertently buried all of her tiny fluid containers in her carry-on bag. She couldn't find them at the airport, so I told her just to leave them in the bag and see what happens. Well you guessed it, they weren't detected by the X-ray machine. ;)
Sign In or Register to comment.