Car dealer will not budge on “online price”

[Anonymous]

Tips: Separate out the price from the financing.

You tell the financing what the length of the loan is - they do not tell you.

Let's pretend all in cost is $16,000 [taxes, registration, fees etc]

You are putting down $4k so you need a loan of $12K.
You need an app on your phone so you can be smart and understand the trade-offs that are being proposed to you real time.

For example - is it more important monthly payment? Number of payments? Rate? all of these things work together.

If you can get a 5% loan on a used car - for a $12K loan over 5 years (60 payment), your monthly payment is $226

If you can afford the $278, at 5%, that is a 48 month loan.

Today - call banks / credit unions to see what they can help you with for financing.

Also - I ran the #s that you shared and they were screwing you for financing. Make sure you are clear in how much you are financing - what the rate is - how many years. If you need help with this - come back to DCUM and post - people will help you with the math.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much will you have paid for the car after making payments for 72 mo at 9.5% interest???

OP was asked to put $4,380 down, and told the payment would be $278 for 72 months.

$4,380+($278x72)= $24,396

Ouch, OP. Go to your bank and see what you get offered for a car loan.

What's DH's credit like?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:What’s the mileage? That’s a decent price for a 2016 with low miles.

OP here- 68,000 miles

That’s a ton of miles on a car two years old.

I’d walk for this reason alone! Way out of the norm.

[Anonymous]

Anonymous wrote:Tips: Separate out the price from the financing.

You tell the financing what the length of the loan is - they do not tell you.

Let's pretend all in cost is $16,000 [taxes, registration, fees etc]

You are putting down $4k so you need a loan of $12K.
You need an app on your phone so you can be smart and understand the trade-offs that are being proposed to you real time.

For example - is it more important monthly payment? Number of payments? Rate? all of these things work together.

If you can get a 5% loan on a used car - for a $12K loan over 5 years (60 payment), your monthly payment is $226

If you can afford the $278, at 5%, that is a 48 month loan.

Today - call banks / credit unions to see what they can help you with for financing.

Also - I ran the #s that you shared and they were screwing you for financing. Make sure you are clear in how much you are financing - what the rate is - how many years. If you need help with this - come back to DCUM and post - people will help you with the math.

Great Advice.

[Anonymous]

I believe CarMax is no haggle and they have a huge selection.

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much will you have paid for the car after making payments for 72 mo at 9.5% interest???

OP was asked to put $4,380 down, and told the payment would be $278 for 72 months.

$4,380+($278x72)= $24,396

Except if she puts $4,380 down on a car that is $14,927 -- even if you assume another $1,000 in tax/tag/fees, a payment on a $11,547 loan at 9.75% for 72 months would only be $212, not close to $278. If it were for 60 months, it would still only be $243. They must be rolling thousands of dollars into that loan (like thousands of dollars in extended warranties) or doing something else to rip you off, in addition to the crazy interest rate. You need to check every line to see what the bottom line price is that the financing is based on.

[Anonymous]

Stop and take a day to educate yourself on car buying and financing. Easy to get robbed blind if you don't know what you are doing.

As others mentioned, the price of the car and the terms of the loan are separate. You can negotiate whatever price you want and that price is the price regardless of what kind of loan you get into.

One easy way to keep things separate is to get your own financing separately from the car dealer. Most banks and credit unions will do this and many will do so online; doesn't even need to be a bank you have an acct with in many cases. Essentially they run your credit and approve you for a loan in advance. This way you know exactly the rate, duration of the loan, payment etc and you can ensure that you have financing you are comfortable with before you even set foot at a car dealer.

The bank provides you a a blank check cashable up to xx,xxx amount and once you have settled on a price with the dealer you just write the check. Done. No games, no scams , no nonsense.

If the dealer beats the terms you got from your bank, you can CHOOSE to go with the dealer's financing instead of your bank's.

Best of luck

[Anonymous]

Anonymous wrote:

Anonymous wrote:How much will you have paid for the car after making payments for 72 mo at 9.5% interest???

OP was asked to put $4,380 down, and told the payment would be $278 for 72 months.

$4,380+($278x72)= $24,396

That is totally nuts. But so is anything over a couple of years for a used car. Good luck finding something OP. Used car shopping is no fun. As an aside, we bought a great car on Facebook Market.

[Anonymous]

Anonymous wrote:You cannot buy a used car with a 72 mo term and 9% interest rate! Omg.

x100. OP, this is a bad deal.

[Anonymous]

No matter where you buy the car, take it to a mechanic for inspection before you buy.

Also, use cargurus.com. The site will show you all used cars by model within a certain geographical radius and compare the listed price to the blue book .price.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How much will you have paid for the car after making payments for 72 mo at 9.5% interest???

OP was asked to put $4,380 down, and told the payment would be $278 for 72 months.

$4,380+($278x72)= $24,396

Except if she puts $4,380 down on a car that is $14,927 -- even if you assume another $1,000 in tax/tag/fees, a payment on a $11,547 loan at 9.75% for 72 months would only be $212, not close to $278. If it were for 60 months, it would still only be $243. They must be rolling thousands of dollars into that loan (like thousands of dollars in extended warranties) or doing something else to rip you off, in addition to the crazy interest rate. You need to check every line to see what the bottom line price is that the financing is based on.

Yeah, I ran the numbers both ways. I assume OP is rolling in tax/tag/fees into the loan, and she probably bought all the additional “warranties” and service plans.

OP, say no those warranties and service plans. Fords aren’t that expensive or difficult to maintain.

[Anonymous]

1) best of luck with fertility treatments. We went through it twice.

2) those miles are nothing. I bought a used Honda with 136K miles on it in 2011 and it’s still running great with 220K Miles.

3) that is not a bad price but I would try to refinance later for a better interest rate.

[Anonymous]

Instead of pretending, let's use the real numbers.

$14,987 for the car
$300 doc fee (if Maryland)
$918 tax (if Maryland)
$350 tags (if Maryland)
$16,555 total.

$12,555 financed if you put $4,000 down.

9% at 72 is $226. My guess is they have an extended warranty added and maybe GAP, that brings it up to @$270

As far as the rate goes, with that credit score, it is not that bad. The days of low rates are over unless you have great credit. A quick search and used car rates with great credit are right at 5%, so everyone saying get a 5% loan with bad credit are delusional.

[Anonymous]

Anonymous wrote:Instead of pretending, let's use the real numbers.

$14,987 for the car
$300 doc fee (if Maryland)
$918 tax (if Maryland)
$350 tags (if Maryland)
$16,555 total.

$12,555 financed if you put $4,000 down.

9% at 72 is $226. My guess is they have an extended warranty added and maybe GAP, that brings it up to @$270

As far as the rate goes, with that credit score, it is not that bad. The days of low rates are over unless you have great credit. A quick search and used car rates with great credit are right at 5%, so everyone saying get a 5% loan with bad credit are delusional.

My husband has great credit and just got a used car loan of 3.1 percent over 48 months. This was through the dealer, bank was offering a similar rate.

[Anonymous]

^^ When you have great credit, you have more bargaining power, the OP has bad credit. Your husband also did a 4 year loan, not a 6 year loan, rates change on term.