Are Car Notes for Suckas? School me on financing a car please

[joe camel smooth]

Originally Posted by 2LipsLegit

Originally Posted by Dirtylicious

Originally Posted by JOE CAMEL SMOOTH

i don't care if i'm in the market for a ferrari, i'll buy it a year old and save $30K.

depending on the model -- Ferrari is one of the few cars that I know of that appreciate in value.

Yeah but nothing youll actually be driving. Only the classics are gonna appreciate, hes obviously talking bout something like a 360, 430, 599 etc.
  

yeah the majority of their lineup depreciates like any other make. the only exception is for those who get some of the first deliveries of a new model, they often flip them for a $30K + profit. but if ferrari finds out there goes their ability to get that early in line for another model.

 

[joe camel smooth]

Originally Posted by 2LipsLegit

Originally Posted by Dirtylicious

Originally Posted by JOE CAMEL SMOOTH

i don't care if i'm in the market for a ferrari, i'll buy it a year old and save $30K.

depending on the model -- Ferrari is one of the few cars that I know of that appreciate in value.

Yeah but nothing youll actually be driving. Only the classics are gonna appreciate, hes obviously talking bout something like a 360, 430, 599 etc.
  

yeah the majority of their lineup depreciates like any other make. the only exception is for those who get some of the first deliveries of a new model, they often flip them for a $30K + profit. but if ferrari finds out there goes their ability to get that early in line for another model.

 

[2lipslegit]

Originally Posted by johngotty

Originally Posted by GSDOUBLEU

Originally Posted by Mr718

Originally Posted by KiiidThrash

Originally Posted by Mr718

Originally Posted by Hugo

Originally Posted by ATLien Seeko

I like when people come in and say "DONT DO IT!" with no reason or insight as to why not... If you need a car, you want a certain model, and you can afford it, go for it. It's as simple as that. If I could afford it, I definitely wouldnt mind having a car note on a Nissan GT-R. Why not pay for a car that you really want/need and will use? It's good logic.

ummmmm i use to be a salesman..everyone gets dicd when financing, buddy.

Nope, all depends on how you go about it.  I went thru my credit union, got the loan, walked into the dealership with a check, haggled the price down $9k, and been happy ever since.

im in the process of doing this,
care to elaborate???

Biggest problem when you finance thru the dealer is that you never get to speak to the bank/lender.  The dealership is the middleman and they usually don't have your best interest in mind.  If you shop yourself around to your bank or credit unions you can negotiate for a bigger loan and/or lower interest rate.

Once you got that in the bag, you can travel to any dealership of your choice or even a private seller to find the car of your liking.  Once you select the car, you can negotiate the price directly with the seller.  Dealerships usually give you a "deal" on the price but jerk you on your trade-in or interest rate so they don't lose much money, or sometime, make extra money.  After you got your financing in place you basically have a blank check, not to exceed $XX,XXX.xx (the amount your bank is willing to loan you). 

Your in the driver's seat at this point.  Once you neg. the price of the car down, THEN, and only then, you bring up to them that your interested in trading in your old car.  Now you neg. the value of your trade upwards.  Follow these steps and you won't get jerked.

good advice here

^

Yeah this is the four-square model I was talking about earlier. Dealerships will try to counter your request on one of them with a change in another, limiting the amount of negotiating you can do. Stick with this plan and it should work out for you.

 

[2lipslegit]

Originally Posted by johngotty

Originally Posted by GSDOUBLEU

Originally Posted by Mr718

Originally Posted by KiiidThrash

Originally Posted by Mr718

Originally Posted by Hugo

Originally Posted by ATLien Seeko

I like when people come in and say "DONT DO IT!" with no reason or insight as to why not... If you need a car, you want a certain model, and you can afford it, go for it. It's as simple as that. If I could afford it, I definitely wouldnt mind having a car note on a Nissan GT-R. Why not pay for a car that you really want/need and will use? It's good logic.

ummmmm i use to be a salesman..everyone gets dicd when financing, buddy.

Nope, all depends on how you go about it.  I went thru my credit union, got the loan, walked into the dealership with a check, haggled the price down $9k, and been happy ever since.

im in the process of doing this,
care to elaborate???

Biggest problem when you finance thru the dealer is that you never get to speak to the bank/lender.  The dealership is the middleman and they usually don't have your best interest in mind.  If you shop yourself around to your bank or credit unions you can negotiate for a bigger loan and/or lower interest rate.

Once you got that in the bag, you can travel to any dealership of your choice or even a private seller to find the car of your liking.  Once you select the car, you can negotiate the price directly with the seller.  Dealerships usually give you a "deal" on the price but jerk you on your trade-in or interest rate so they don't lose much money, or sometime, make extra money.  After you got your financing in place you basically have a blank check, not to exceed $XX,XXX.xx (the amount your bank is willing to loan you). 

Your in the driver's seat at this point.  Once you neg. the price of the car down, THEN, and only then, you bring up to them that your interested in trading in your old car.  Now you neg. the value of your trade upwards.  Follow these steps and you won't get jerked.

good advice here

^

Yeah this is the four-square model I was talking about earlier. Dealerships will try to counter your request on one of them with a change in another, limiting the amount of negotiating you can do. Stick with this plan and it should work out for you.

 

[crcballer55]

Originally Posted by DB WEST

I would never pay cash on a brand new car. You can invest that $30k + and get part of your note paid for. If it's like a $10,000 car or something I may pay cash for it if I already had good credit.

LOL

I see people everyday who are losing their houses because they had the same logic.  Besides, car notes are routinely around 10%.  That is the market average and if you take into account taxes (around 15% on capital gains) and the depreciation value of your new car, you've actually gone backwards by almost 50% if you invest the cash instead of use it to buy a vehicle that is slightly older.

 

[crcballer55]

Originally Posted by DB WEST

I would never pay cash on a brand new car. You can invest that $30k + and get part of your note paid for. If it's like a $10,000 car or something I may pay cash for it if I already had good credit.

LOL

I see people everyday who are losing their houses because they had the same logic.  Besides, car notes are routinely around 10%.  That is the market average and if you take into account taxes (around 15% on capital gains) and the depreciation value of your new car, you've actually gone backwards by almost 50% if you invest the cash instead of use it to buy a vehicle that is slightly older.

 

[supermanblue79]

Originally Posted by Dirtylicious

Originally Posted by SoleWoman

Originally Posted by Dirtylicious

I'll never buy a new car again.

qft. and next car i do buy im putting at least half down

...for me...next car, I'm putting 100% down.

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

 

[supermanblue79]

Originally Posted by Dirtylicious

Originally Posted by SoleWoman

Originally Posted by Dirtylicious

I'll never buy a new car again.

qft. and next car i do buy im putting at least half down

...for me...next car, I'm putting 100% down.

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

 

[north dade represent]

Originally Posted by Supermanblue79

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

That's unlikely. A brand new Camry four years from now is going to be more than likely more expensive than a brand new Camry right now.
  

 

[north dade represent]

Originally Posted by Supermanblue79

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

That's unlikely. A brand new Camry four years from now is going to be more than likely more expensive than a brand new Camry right now.
  

 

[ninjahood]

Originally Posted by smallBALL5

You will take a huge depreciation hit when buying a new car. your car value depreciates, newer better models coming out, and the new car euphoria wears off but the loan is still there.The only positive I see from new cars is free maintenance plans like bmw offers. If youre willing to do research i.e. carfax, look for a car with maintenance records, and have a mechanic check out the car, you can save thousands buying from a private seller. If youre not willing to do the work you can go certified pre-owned with warranty. this way someone else takes the depreciation hit and after the first few years depreciation levels off.

As far as financing goes it depends on the rate. If say you can get a 3% car loan but getting a 5% return on your cash, then you should finance. If the loan apy is 7% and you are only getting 1% on your savings then you should pay cash. this is a very simplified example of course but you get the idea.

usually credit unions give better rates than major banks because they are not for profit organizations and usually have more flexibility in working with you if you are having trouble paying back your loan. Also asking family for loans is an option as well, assuming they trust you.

also if youre looking for a used luxury car, remember even though the price is low, the maintenance and replacement parts are still high.

 best advice so far in this thread.

 

[ninjahood]

Originally Posted by smallBALL5

You will take a huge depreciation hit when buying a new car. your car value depreciates, newer better models coming out, and the new car euphoria wears off but the loan is still there.The only positive I see from new cars is free maintenance plans like bmw offers. If youre willing to do research i.e. carfax, look for a car with maintenance records, and have a mechanic check out the car, you can save thousands buying from a private seller. If youre not willing to do the work you can go certified pre-owned with warranty. this way someone else takes the depreciation hit and after the first few years depreciation levels off.

As far as financing goes it depends on the rate. If say you can get a 3% car loan but getting a 5% return on your cash, then you should finance. If the loan apy is 7% and you are only getting 1% on your savings then you should pay cash. this is a very simplified example of course but you get the idea.

usually credit unions give better rates than major banks because they are not for profit organizations and usually have more flexibility in working with you if you are having trouble paying back your loan. Also asking family for loans is an option as well, assuming they trust you.

also if youre looking for a used luxury car, remember even though the price is low, the maintenance and replacement parts are still high.

 best advice so far in this thread.

 

[supermanblue79]

Originally Posted by North Dade Represent

Originally Posted by Supermanblue79

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

That's unlikely. A brand new Camry four years from now is going to be more than likely more expensive than a brand new Camry right now.
  

I'm speaking in terms of choosing now, and buying the car when it's four years old.  I'll never buy new.

 

[supermanblue79]

Originally Posted by North Dade Represent

Originally Posted by Supermanblue79

This.

A thing that I started doing a year ago outside of my regular savings, is paying myself a car note.  In four years I'll buy the car that I want
with cash, hopefully at a lower price than I projected. 

That's unlikely. A brand new Camry four years from now is going to be more than likely more expensive than a brand new Camry right now.
  

I'm speaking in terms of choosing now, and buying the car when it's four years old.  I'll never buy new.

 

[kanyewestjayz4life]

Paying cash for a car is hard but its the better way. You can also choose a car under 10gs and put at least have down or more.

IMO! why finance a car for 16k and pay for all that interest? You can get a nice looking reliable car for a reasonable price. People are just following the way things are "flow"(everyone around you does it so you do it).

Depending on your age theres no reason why you need a car note higher then 200 or a car thats 16k with nothing down(oh never mind in america we like people to think we have more money then we actually do).

Financing works, but its just and image/money trap to me. People can pursue what they really want in life easier without a car note.

 

[kanyewestjayz4life]

Paying cash for a car is hard but its the better way. You can also choose a car under 10gs and put at least have down or more.

IMO! why finance a car for 16k and pay for all that interest? You can get a nice looking reliable car for a reasonable price. People are just following the way things are "flow"(everyone around you does it so you do it).

Depending on your age theres no reason why you need a car note higher then 200 or a car thats 16k with nothing down(oh never mind in america we like people to think we have more money then we actually do).

Financing works, but its just and image/money trap to me. People can pursue what they really want in life easier without a car note.

 

[peep tha sneaks]

This was how I went about buying my first car:

Went to my credit union and got preapproved for $20k
Gave me a blank check (it'll say not to exceed $20k)

Found my car with all these extras added on (window sticker display)
The salesman suggested we go inside.
I told him I'll go inside, but I'm not paying for any of those extras listed on the car).
Also told him I was paying cash.
He reluctantly agreed.

He passed me on to several people and they pulled that 4 square trick on me.

Negotiated on a price I was comfortable with (In my head I knew what my monthly would be if the car was going to be $17k, $17.5k, $18k, $18.5k, etc.)

 

[peep tha sneaks]

This was how I went about buying my first car:

Went to my credit union and got preapproved for $20k
Gave me a blank check (it'll say not to exceed $20k)

Found my car with all these extras added on (window sticker display)
The salesman suggested we go inside.
I told him I'll go inside, but I'm not paying for any of those extras listed on the car).
Also told him I was paying cash.
He reluctantly agreed.

He passed me on to several people and they pulled that 4 square trick on me.

Negotiated on a price I was comfortable with (In my head I knew what my monthly would be if the car was going to be $17k, $17.5k, $18k, $18.5k, etc.)

 

[oidreez]

Originally Posted by peep tha sneaKs

This was how I went about buying my first car:

Went to my credit union and got preapproved for $20k
Gave me a blank check (it'll say not to exceed $20k)

Found my car with all these extras added on (window sticker display)
The salesman suggested we go inside.
I told him I'll go inside, but I'm not paying for any of those extras listed on the car).
Also told him I was paying cash.
He reluctantly agreed.

He passed me on to several people and they pulled that 4 square trick on me.

Negotiated on a price I was comfortable with (In my head I knew what my monthly would be if the car was going to be $17k, $17.5k, $18k, $18.5k, etc.)

what was the price you negotiatied?

 

[oidreez]

Originally Posted by peep tha sneaKs

This was how I went about buying my first car:

Went to my credit union and got preapproved for $20k
Gave me a blank check (it'll say not to exceed $20k)

Found my car with all these extras added on (window sticker display)
The salesman suggested we go inside.
I told him I'll go inside, but I'm not paying for any of those extras listed on the car).
Also told him I was paying cash.
He reluctantly agreed.

He passed me on to several people and they pulled that 4 square trick on me.

Negotiated on a price I was comfortable with (In my head I knew what my monthly would be if the car was going to be $17k, $17.5k, $18k, $18.5k, etc.)

what was the price you negotiatied?