New Car and payments question

[pedroh 21]

so I went to this dealership to get info on a new car.. u know, salesman pushy, didn't wanna let me go without takin the freakin car home etc etc..

the weird thing, is that.. i let the run my credit, and i told them I could afford a downpayment of 1500, so they told me we can give you x months for $y amount.. not bad, but then, I wanted to go home and discuss it with my wife and parents who are gonna help me with the d-payment... so he went 'with the manager and got me this deal'... he can give me the same time period for the same $y amount, but only 500 bucks downpayment!..

Of course I still didn't get it, but now, how did they pull it? My only answer is that they gave me a lower APR% on the lower downpayment, but then, if my credit is that good, couldn't I pay 1500 instead of 500 and get a lesser monthly payment or a lesser time period?

btw this was at a Honda dealership, the new Fit, which I love btw..

[Jamie76 0]

How much is the vehicle? New or used? Loan length you were looking at? The difference between a $500 and a $1500 down payment on a $20K + vehicle as far as monthly payments and loan length will be negligible.

[Mr. Big Dog 10,747]

Sounds to me as if, at the end of the day, they took 1K out of the sale price.

You just didn't bargain hard enough before.

[pedroh 21]

Sounds to me as if, at the end of the day, they took 1K out of the sale price.

You just didn't bargain hard enough before.

well i was just browsing lol.. didn't wanna deal hard enough.. but tomorrow I'll check it out

btw its a new 2008 honda fit...

and.. yea that makes sense, 1k off the sales price, rather than my crazy APR% explanation lol

[Mr. Big Dog 10,747]

Sounds to me as if, at the end of the day, they took 1K out of the sale price.

You just didn't bargain hard enough before.

well i was just browsing lol.. didn't wanna deal hard enough.. but tomorrow I'll check it out

That #######'s upon me too. I hate car shopping. But my ol' Nissan isn't quite what it used to be.

The close to 150K miles I put on it over the past 7 years have taken a noticeable toll.

[pedroh 21]

Sounds to me as if, at the end of the day, they took 1K out of the sale price.

You just didn't bargain hard enough before.

well i was just browsing lol.. didn't wanna deal hard enough.. but tomorrow I'll check it out

That #######'s upon me too. I hate car shopping. But my ol' Nissan isn't quite what it used to be.

The close to 150K miles I put on it over the past 7 years have taken a noticeable toll.

well my inlaws dodge caravan that i used to drive, just died 2 days ago, after 175k miles.. engine needs replacing and I won't invest anymore in it, I probly had to spend 400 bucks every 6 months in it.. and in my experience, and my folks, american brand cars, dodge, chrysler and chevy, haven't been very reliable.. on the other hand... I love Honda

[Scott & Lai 12]

Hondas are definitely good. I like the Fit, too; I think it's better than the Toyota Yaris, more roomy, more features, bit better price. At least I found those to be the case when we were car shopping last year...we ended up getting a Honda Element.

[Marilyn. 340]

hondas rock

we have a 1997 Honda Accord and it has served us well and is great on gas

[russ 1]

Of course I still didn't get it, but now, how did they pull it? My only answer is that they gave me a lower APR% on the lower downpayment, but then, if my credit is that good, couldn't I pay 1500 instead of 500 and get a lesser monthly payment or a lesser time period?

Car dealers make money in four ways. Financing, sale price, options, and trade in. When they run their numbers, they look at all four areas.

So for instance, they may lose $1,000 on the sale price, but make $2,000 as a kickback from the bank because you are paying more interest on the loan than you should. Or, you added a lot of options to the car that have a high margin for the dealer.

Leaving without buying is good, you will usually get a better price the next time (your negotiation is starting with a lower number)

Since your credit is fine, you are most often better off getting the loan someplace else (like a credit union, or your bank)

Dealers like to talk about monthly payments, instead of the price of the car. It is easier for them to screw you this way. Have the financing first, and take the dealer's if it is better.

[one...two...tree 2,762]

Pedroh,

Before you go back to any dealership, if you are locked in on what car you want to purchase, then I'd highly recommend getting a car report from Consumer Reports. Back in 2001, I bought a Toyota Echo and was able to drive it off the lot for about $2,500 less than the sticker price, because I brought with me the printout that showed the actual dealer cost for the car. I also got pre-approved for a loan through my CU, so I brought that with me. I said, "This is the amount I've been approved for, if you can get me into an Echo at the price, with tax and invoice, I'll buy it here." I think I ended up giving them a $300 check, plus a trade in, so they still turned a profit, just less than what they would hope for.

You really have to do your window shopping for cars, before going to the dealership because everyone that walks onto the lot is considered shark meat. They're gonna waist your time and vice versa so it's best to look online for as much info on a make and model and then go to the dealership once you know exactly what you want and how much you are willing to pay. Otherwise, they'll tear you to pieces like chub.

(Just one other thing...be prepared to walk away from the sales person and walk off the lot. It's deal or no deal - if you don't then you are at their mercy. I had to do that with the Echo and the salesman followed me to my car along with his manager and said they'd make a deal with me that I'll be happy with, so I turned around.)

https://ec.consumerreports.org/ec/aps/order.htm

Pricing

$14 for a new car price report ($12 for each additional new car report) $12 for a used car price report

Here's What You Get: (it's soooo worth it)

Consumer Reports Bottom Line — the price where you should start negotiating (including current national rebates, unadvertised dealer incentives, and holdbacks).

Dealer Invoice Price (provided by the manufacturer to the dealer).

Manufacturers Suggested Retail Price (MSRP) — what the dealer wants you to pay.

Invoice and MSRP Prices for all factory-installed options & packages.

Different Trimlines for your selected models.

Consumer Reports' predicted reliability ratings (based on feedback from over 800,000 car owners).

Consumer Reports' Recommendations on how to equip your car or truck.

Current Safety Ratings based on our analysis.

Alternative Vehicle Choices — so you have genuine options to choose from.

"Best Deal" Negotiation Advice.

Online Buying Advice.

Edited November 24, 2007 by Mister Fancypants

[Jasman0717 9]

Of course I still didn't get it, but now, how did they pull it? My only answer is that they gave me a lower APR% on the lower downpayment, but then, if my credit is that good, couldn't I pay 1500 instead of 500 and get a lesser monthly payment or a lesser time period?

Car dealers make money in four ways. Financing, sale price, options, and trade in. When they run their numbers, they look at all four areas.

So for instance, they may lose $1,000 on the sale price, but make $2,000 as a kickback from the bank because you are paying more interest on the loan than you should. Or, you added a lot of options to the car that have a high margin for the dealer.

Leaving without buying is good, you will usually get a better price the next time (your negotiation is starting with a lower number)

Since your credit is fine, you are most often better off getting the loan someplace else (like a credit union, or your bank)

Dealers like to talk about monthly payments, instead of the price of the car. It is easier for them to screw you this way. Have the financing first, and take the dealer's if it is better.

Talk about the price of the car first. Don't even tell the dealer you have a trade-in until you can settle on the price of the car.

[Flames9_RN 358]

lots of good advice from above. Yep, dont talk what u want ur monthly payments to be, talk about the lowest price possible. Are u in a bigger city that has another Honda dealership? Goto other dealerships and negotiate with them as well. Car dealerships really play on ur mind. They know you want the vehicle, and play to that "want" Forgot what the terms are, but was covered in my psychology class,lol So you have to know what ur wants are, ur price u want to pay and WALK away if ur not happy. Do ur research prior to walking into the dealership, thats gives u a bit more control of the situation. Salesmen love clueless buyers. As much as the salesmen say they want to give u the lowest price, they dont!!! Their job is to make as much $$$ for the company. So take some time and do some research, ie consumers reports, search google, kelly blue book, etc etc

[caybee 21]

Pedroh,

Before you go back to any dealership, if you are locked in on what car you want to purchase, then I'd highly recommend getting a car report from Consumer Reports. Back in 2001, I bought a Toyota Echo and was able to drive it off the lot for about $2,500 less than the sticker price, because I brought with me the printout that showed the actual dealer cost for the car. I also got pre-approved for a loan through my CU, so I brought that with me. I said, "This is the amount I've been approved for, if you can get me into an Echo at the price, with tax and invoice, I'll buy it here." I think I ended up giving them a $300 check, plus a trade in, so they still turned a profit, just less than what they would hope for.

You really have to do your window shopping for cars, before going to the dealership because everyone that walks onto the lot is considered shark meat. They're gonna waist your time and vice versa so it's best to look online for as much info on a make and model and then go to the dealership once you know exactly what you want and how much you are willing to pay. Otherwise, they'll tear you to pieces like chub.

(Just one other thing...be prepared to walk away from the sales person and walk off the lot. It's deal or no deal - if you don't then you are at their mercy. I had to do that with the Echo and the salesman followed me to my car along with his manager and said they'd make a deal with me that I'll be happy with, so I turned around.)

https://ec.consumerreports.org/ec/aps/order.htm

Pricing

$14 for a new car price report ($12 for each additional new car report) $12 for a used car price report

Here's What You Get: (it's soooo worth it)

Consumer Reports Bottom Line — the price where you should start negotiating (including current national rebates, unadvertised dealer incentives, and holdbacks).

Dealer Invoice Price (provided by the manufacturer to the dealer).

Manufacturers Suggested Retail Price (MSRP) — what the dealer wants you to pay.

Invoice and MSRP Prices for all factory-installed options & packages.

Different Trimlines for your selected models.

Consumer Reports' predicted reliability ratings (based on feedback from over 800,000 car owners).

Consumer Reports' Recommendations on how to equip your car or truck.

Current Safety Ratings based on our analysis.

Alternative Vehicle Choices — so you have genuine options to choose from.

"Best Deal" Negotiation Advice.

Online Buying Advice.

My sister did exactly this. She had the loan offer from her credit union in hand when she went in, and she held her ground. When the salesman left "to talk to his manager," she could see him through a crack in the cubicle as he chilled out -- alone -- with a cup of coffee for a few minutes. When he returned and told her what his manager had said, she called him out for lying. Then she did meet the manager. She ended up with what she wanted.

Next time I go car shopping, I'm taking all of the above, plus my sis!

[eric&gen 0]

At the end of 2009 my suv will be paid in full no more car payments for me ever lol.

[Ephesia 0]

Yay !!!!!! Another Honda Fit lover!!!! I'm aiming to get one in 2009, pedroh. It's been my dream car for 3 years now. I fell in love with it when my brother in Singapore bought one. I want the sport model in blue.

so I went to this dealership to get info on a new car.. u know, salesman pushy, didn't wanna let me go without takin the freakin car home etc etc..

the weird thing, is that.. i let the run my credit, and i told them I could afford a downpayment of 1500, so they told me we can give you x months for $y amount.. not bad, but then, I wanted to go home and discuss it with my wife and parents who are gonna help me with the d-payment... so he went 'with the manager and got me this deal'... he can give me the same time period for the same $y amount, but only 500 bucks downpayment!..

Of course I still didn't get it, but now, how did they pull it? My only answer is that they gave me a lower APR% on the lower downpayment, but then, if my credit is that good, couldn't I pay 1500 instead of 500 and get a lesser monthly payment or a lesser time period?

btw this was at a Honda dealership, the new Fit, which I love btw..