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.
A reporter would like to speak with you about your experience; please reach out to PR@Edmunds.com by 7/22 for details.
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Thanks!
But two of the most important points are : how long on the jobs..and income ---
A 20yr old Mcdonald's employee with a Burdines card and a 6 month old "Best Buy's" card can have a 770 beacon score -- but, with that being said,if all is OK on the other 2 I would agree with Mmbride and put you on as the Pilot and hubby on 2nd...
Good luck..
Terry.
These are great rates along with getting the rebates manufactures are offering.
Rebates are counted as Down Payments and trade ins come off before tax is figured.
http://aaacsaa.aaausafinancial.com/AutoFinancing/AutoFinancing.asp#al
A Protege LX (not 2.0), with auto, comfort group and moonroof is invoice 14875 + 480 destination charge (per Edmunds). I'm hoping to get the car for around invoice with the s-plan.
Does tax apply to the destination charge? Doc Fee? Title? License?
In Illinois cars under 15K are taxed one way, over 15K another; ie, under 15K and a new car the tax is 390; between 15-18K it is $750. While we're not talking tons 'o money here, it's helpful to know :-)
TIA for any input.
Julia
- I am not an expert either, but I have ushered 4 adult kids through their initial credit and first new cars.
The short answer to your question: sales tax only applies to the destination charge, since that is part of the vehicle's factory price. Doc fees, license, and title are fees not subject to sales tax. Your invoice price is $15,275, and the tax would be based in that figure, assuming you get the car for that price.
kcram
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Car_Man
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Car_Man
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Although I am still in process of disputing some incorrect info, I have managed to get my beacon up in the 645 range, and have not let anyone run credit on me as of yet. When I was still in the 623 range (per my own inquiries), an F&I guy I know in another state told me I should be able to get about 7.9% on a new purchase(he's a friend of a friend, but doesn't sell the line of cars I am looking at). I am interested in getting in the 7% range or better on a 48 mo term, on a $32k out the door price, with about $4-5k down.
Edmunds and other sources recommend stuff like check with your bank, credit union etc. before going to the dealer, if the dealer has a better rate go for it, if not you got something to fall back on.
My Q is, I can't seem to qualify (not afiliated) for CU membership, except one, and their rate with a 700+ beacon is still like 8%, my bank is worse at 8.9% on a 650+ beacon. I know there are some online sources, but I am trying to figure out how I can find a better rate without throwing my credit info around everywhere, and am concerned that after I finally negotiate the price of the new car I want, they may try to stick me in the F&I office.
Please, any real world advice would be appreciated. I already sold my old car, so all I have to do now is arrange finance and settle on a price of the new car. I live in NC, in case that matters. THANKS!!!!
Karz
Is that enough a big difference to you to warrant spending the time to get it?
To reiterate, it was my F&I friend that told me I SHOULD qualify for the 7.9% rate, the CU figures I used and indicated they actually required a higher beacon than I currently posses. As the whole point of my post is actually the need to have a pre-qualified rate BEFORE going to the dealer, so as not to have wasted my effort negotiating a better price on the vehicle only to throw it away in the F&I office, as well as making the F&I process easier for both parties, as I would be an informed purchaser.
But to the point of the interest rate, I actually mentioned that I am interested in a 7% or better rate. To be more detailed, I would prefer 6.5% if I could get it. Here is an example using round numbers:
On a financed amount close to 26k, interest rates for the following...
48 mo @ 8% = $4,400 interest cost over term
48 mo @ 6.5%= $3,500 interest cost over term
60 mo @ 8% = $5,500 interest over term
60 mo @ 6.5%= $4,400 interest cost over term
As you can see, with a better rate, I could finance the same amount over 60 months and pay no more in interest than a higher payment 48 mo loan
Or compare the two 48 mo options, I could save $900. Now I understand 900 is not a huge difference compared to a $30k+ purchase, but it's the little things that add up. Comparing the NEW ME trying to be a smarter shopper, let's see how much I save:
Just sold my 96 Maxima myself w/ 130k mi for $9,200 rather than trade it for 55000-7000
so at a minimum, considering seling costs, I saved/made $2,000
With no trade to haggle, I feel I will negotiate a better deal on the new car, along with the things I learned on Edmunds, I feel at a minimum, I will save an additional $1,000 off the purchase price had I not educated myself.
By fixing my credit issues, and learning how finance arrangements are made, I intend to put more money down than past purchases saving at least $500 in additional interest NOT paid on additional up front capital.
By getting an additional 1.5% rate, either directly from a lender or the dealer competing to come in below my lender's rate, I save, as illustrated above an additional $900
By doing the loan over 48 mo instead of 60, I save, as illustrated above, an additional 1100
Grand total: $5,500, over $1,000 a year over the 4 year term I pay for the car, which I will own to do with as I please.
This is as opposed to, the old me, not putting hardly any money down (due to a personal challenge at the time of a lease ending) and financing $17k at 17% interst 3 yrs ago, ($500 mo) due to lack of knowledge of F&I, desperate need for a car, and a rapidly declining beacon through not fault of my own. Sorry if I sound short, just trying to clarify my need for information, and illustrate the devil's in the details. Unless you look at a car purchase from all angles you leave money on the table, maybe A LOT of money. Maybe not a big deal to some, but as I said, if I can do it half way right this time, maybe next time, it will take less effort. Thanks again
Karz
The salesman told me upon leaving that he would call me in a couple days, once he got the final approval at the bank, for me to return for the owner's manual. I'm told that the final approval can affect my interest rate.
It's been two weeks and the Finance guy called me this evening to say that the bank didn't lend as much [as we asked for] and requested that I come up with $1500 cash. I told him I'll have to return the car, since it's impossible for me come up with a down payment. He then went on to say that the dealer could help me out with the price if I could come up with SOME of the $1500. He even went on to say that I could have a few weeks to come up with the money if needed. I still maintained that I was flat broke and he offered to talk to his boss and told me to call the salesman tomorrow and see what we can do.
Can they make me give the car back?
Where's my trade by now?
Surely it's already been auctioned off since it's poor condition rendered it ineligible to display on their lot.
Am I being had?!
Please help...
But, based on what your saying, you have some "limited" credit or even perhaps some negative credit --- So the lending institution has "Conditioned" the sale to X amount of bucks ... I'm not defending the dealer, but it seems like they have done what all they can do -- If your feel you have been treated unjustly, call the lender, and see what they say .... If you like what they have told you .. and the vehicle .. keep it, I'm sure the dealer will work with you on the $$ down ---
Going from dealer to dealer will harm you ... not help you, because of more inquires on your credit report ---- Soooo, it's your call.
I hope this helps...
Terry.
Good luck,
Terry.
Thanks again for your insight, It really helps!
Brgds
Car_Man
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Terry.
Car_Man
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Chrysler as well as Ford, to a huge amount of business with a lot of different products. And their financial arms are smart to go after everything from the "A" paper to the "D" paper ...
It's just good business, if you purchase a Ford now there is a good chance you will buy another 28 months down the road (national average) , and of course that doesn't include your neighbor who loved your new SES Taurus, or the guy at work that ran out and bought a new Durango after you bought yours etc, etc...
Terry.
When the finance company called me a few days after my purchase to get more information, I asked about the requirement to purchase an extended warranty to get financing through them. They told me their company doesn’t require an extended warranty and doesn’t condone a dealership telling the customer there is a requirement!
I went straight to the dealer told them what the finance company told me, demanded this warranty be removed, and informed the sales manager and salesman I did not appreciated being lied to! The loan had already been funded, so they will send the finance company a check to be applied to the principle of the loan.
The problem I have with this is I will be paying interest on $1350, for five years; also, I paid sales tax on the $1350. I want to know who I report unethical practices such as this, and if I should demand a meeting with the owner of the dealership himself. Or am I just wasting my time with the owner, who may or may not know these kinds of practices are taking place?
Thanks in advance!
I lease all my cars. I put $0 down and get a new car every 3 years because I want to and I can afford it.
Don't start down the slippery slope of "the best way to do things is...". Because the 'best' thing is to never go out to dinner. The 'best' way to pay for everything is cash. The 'best' way to save money is to never take vacations or buy jewelry. The 'best' way to buy a car is to buy a 3 year-old one and drive it into the ground - you should never buy new.
It's all about how people choose to spend their discretionary income (yes, cars fall under that umbrella, too).
Car_Man
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It's a unfortunate thing ..the bankruptcy, but I feel if you would have stuck with your original program and used your primary financial deal .. you wouldn't be in this --- all do respect, but you kinda did this to yourself, what where you thinkin' ..?
But I do agree.. Better Businees Bureau, Attorney generals office..etc... it's a shame, guys like this give the Auto Industry a black eye ---
Terry.
Terry.
Part of the problem was the leasing boom of the last few years. Manufacturers really pushed low cost leasing on the market, and heavily subsidized the payments and residuals. Now all these 2-3 year old cars are sitting on dealer and auction lots collecting dust, because the subsidies came back and bit the manufacturers.
Some of these vehicles, SUVs especially, lost thousands of dollars on the lease contract. There's no way a manufacturer, bank, or dealer will further discount a vehicle, whether it's the price or the financing, that they already took a major beating. The higher the loss, the less likely you will see low-rate financing.
kcram
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Do dealers look at blanket FICO scores or consider income and full credit report as well?
Thanks for any tips?