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Makes lots of sense and didnt think about it that way since i have never bought a car. I have only seen the process where my parents go into a dealer ship, find a car, work out a monthly payment based on rates they give, then drive away :blush:

Well, lets say i have a $7000 down payment, how does that factor into pricing or getting a loan? The reason I ask is because some dealerships will lower the car's base price to accommodate or decrease their interest rates. Making it difficult to gauge final pricing, which is why im trying to decide on a car first then work out the payments. I rather it be cheaper than expected, rather than trying to stretch the dollar.
$7k is a ton of money to work with on a D.P. Keep that in your pocket.

Now, the only thing you'll need the dealership for is the car. They won't need to pull your credit or anything else of that nature.

Get your pre-approval and work out the numbers with the loan officer outside of a fast paced car dealership. Then, talk to the loan person about dealerships they deal with on a regular basis. This benefits you in two ways. The relationship between the two are already established so that's less B.S. for you on the back end and they'll know who to fax the information to once you've settle on a price for the car. Also, let the loan officer know what car you're looking at so they can pull all the numbers for that car in that area. Also let him know that you have a D.P., if necessary, to augment the loan to get the desired car.

Once you know what car you want and have a dealership in mind, go and talk price. TELL THEM what car you want and at what price. If you took care of the stuff I mentioned earlier, you may even be able to skip this step and just go and sign for the car. Don't play the price game and don't be afraid to walk away from the dealership. Houston has a ton of 'em and you have money (or loan information) in your pocket.

I think that's about it.
 

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Certified/Preowed/Used/Lease are not options for me personally
But didn't you post just above that you've never bought a car before?

Why not let somebody else take the depreciation hit? You're obviously doing your research, I'm a little shocked you're not finding that a well maintained, low-mileage example of a "higher end" sedan (BMW, Benz, Lexus, Infiniti) will be just about equal to the price of a new econobox, only a much nicer vehicle.
 

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Discussion Starter #65
Thanks for the advice bassfromspace :) Any advice for lenders to go to? Banks, interent companies, or my insurance (state farm), etc?

I still dont know what car to get though :(
 

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Basically the co-signer/parents but demos are ok :rolleyes: I dont understand but something i cant argue with either
I don't want to seem rude, but in my experience with Asian parents, they tend to stay involved in their children's lives and influence their decisions much longer and more often compared to their Western counterparts. I don't want this to come off racist in any way, it's just something I've noticed, and hope you could consider moving beyond. I completely understand how important family is, it is to me too, I just don't want to see you get trapped into a less-than-ideal situation unnecessarily :)

For instance, there's a dude at work who's trading in his Scion tC for a bigger and more practical SUV because it will serve his parents better. It sounds to me like they're basically making the decision for him with no regard to his feelings - something I fundamentally disagree with, and what sounds like is going on here albeit less extreme.

What I'm trying to say is that you can find a hell of a deal at $20k for a certified or used vehicle. A much better deal than anything brand new at that price. There's really no reason to buy new, unless you're incredibly picky about being the first person to own a car and want to do your part to support the economy of the nation who built the car specifically.

Hopefully you can keep your options open. With a budget of $20k I'd never buy brand new, and believe it's an unrealistic and superfluous requirement beset on you by your parents.
 

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Discussion Starter #68 (Edited)
I dont take offense at all and i totally i agree with you :). Well the situation is like this: car in my name and parents co-sign, down payment from totalled car, first six payments by parents, then the rest by me. Either that or I dont get a car at all. Thats the situation im in and they have to approve, yea i guess somethings arent understood...

One thing about used cars that im not sure about, is how the person before be maintained or drove the car. Right now it checks out fine and works great, then down the road, earlier abuse begins to show such as the clutch, engine, transmission, etc. Tell me something that will ease my mind please

Edit: Damn, looking at used cars is making me feel real stupid buying used :( Any recommendations? LOL the list is basically endless
 

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I dont take offense at all and i totally i agree with you :). Well the situation is like this: car in my name and parents co-sign, down payment from totalled car, first six payments by parents, then the rest by me. Either that or I dont get a car at all. Thats the situation im in and they have to approve, yea i guess somethings arent understood...

One thing about used cars that im not sure about, is how the person before be maintained or drove the car. Right now it checks out fine and works great, then down the road, earlier abuse begins to show such as the clutch, engine, transmission, etc. Tell me something that will ease my mind please
It all comes down to what kind of car it is. When you're buying performance oriented cars, especially 'tuners' like the M3, Impreza WRX or STi, Lancer Evo, whatever, it's more likely to have been abused by the kind of person who would buy those kinds of cars in the first place. Some cars take abuse better than others, and differing kinds of abuse show up in different places.

Things like the clutch and tires are the things most affected by hard driving and susceptible to abuse anyway, and those are easily and often replaced. Engines are rated with a redline that they can handle every day, brakes can't really go wrong unless you don't change the pads or are an incredible idiot.

Common problems with cars are easily identifiable through research.

Service histories are important.

Buying a used aftermarket performance modified car is a definite no-no in my book, unless you're buying it from someone who used it and so you can use it as a track car.

Buying a used car from a dealership is a tad more risky as well - because you don't know who had it before the dealership did. Sales managers, at least where I work, do a very good job at pricing cars however, because they have to. They're playing with the owners' money, so they have to run Carfaxes and know what abuse looks, sounds and feels like in order to minimize risk when investing in cars through a trade in. Every car, even those outside of the certification program, that is for sale by us is thoroughly inspected by our service department beforehand - it's that sort of thing, in addition to sending the car to a detail shop, that you pay a premium for over buying private party.

On the other hand if it's a nice car, you don't know what the employees of said dealership have done to it at night when noone's looking. There are 4 guys here, including me, who take out all the nice cars that have been traded in and put them through their paces in local abandoned parking lots at night. Recently I've taken out an IS350, 350Z, G35 coupe, an S4, and most recently an S2000. I've even powerslid a Jaguar XJ6 - unintentionally at first ;)

Unless of course, the car was bought new from that dealership and all of the warranty servicing had been done through there. When you buy something 'boring' - which seems like what you're looking for, you're usually fine as long as it's from a reliable manufacturer and wasn't owned by a complete idiot.

The chance of getting a lemon is just that - a chance, and it happens. Sometimes I don't understand why people are so paranoid about 'used' cars.

Oh, and one last thing - if all else fails and you've found the perfect car for you, take it to an independent mechanic or shop who specializes in the make of your car. They could charge anywhere from $50 to $100 up, but the added peace of mind could be worth it. Dealerships will always let you take a car out for a few hours if you convince them you're serious about buying and just want to be with it for a little longer than a test drive. And if you're a complete audio nerd like me and some of us, you'd use that time to take a car home and take the door panels off to see how much room there is for a speaker in there ;)

Hope this helps - even though you won't be buying used anyway :rolleyes: :D
 

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Time to change your signature... The project ends?

I understand the situation your under, but imagine a house instead of a car.

Could be worse, they could be picking your bride for you.

Juan


I dont take offense at all and i totally i agree with you :). Well the situation is like this: car in my name and parents co-sign, down payment from totalled car, first six payments by parents, then the rest by me. Either that or I dont get a car at all. Thats the situation im in and they have to approve, yea i guess somethings arent understood...

One thing about used cars that im not sure about, is how the person before be maintained or drove the car. Right now it checks out fine and works great, then down the road, earlier abuse begins to show such as the clutch, engine, transmission, etc. Tell me something that will ease my mind please

Edit: Damn, looking at used cars is making me feel real stupid buying used :( Any recommendations? LOL the list is basically endless
 

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Discussion Starter #71
LOL thanks for the input guys....im going to try to see if i can get used. I will have to wait and see in the next few days to see if the car is really totalled out and how much i will be getting if thats the case. Then i will have a definite budget to work out. Im looking into Infinity G35, Audi A4, BMW 3 series, Acura TL, and whatever falls around $25K but used haha....but new would be Accord, Altima, and Camry. Thanks again and i will be back for more opinions
 

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I am glad you decided to buy used. That is the best route unless your filthy rich. For me personaly I would buy two used cars for for $10k each. One would be a cruiser type civilized car or truck. The second car would be pretty much a suped up track car. Wich I can take it the track 3-4 times a month. I feel it's a waste to buy a high performance and lugg it around in traffic and the speed limit only such and such.
 

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Mark....glad you decided to get a used and not take a beating on the depreciation...

do what the other poster said and go to your bank or any local bank if you dont like your bank and try to get pre-qualified so you know what you can buy and you will be better equiped to find the car...

you can try Capital One auto finance online..and get pre-qualified easy....blank check type of deal...

then you go to dealer and you have the power...

I know how that crap works..I also sell cars but I treat my people like I want to be treated..I work at small independent lot and I make my own rules...therefore I dont run scams on people......

I know how it is to car shop and I also hate car salesmen.....I am not a car salesman although...I sell them
 

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You should first figure out how much you can afford per month.
That is exactly what you should not do!!!!! That is what has gotten American in so damn much debt, and any half-ass financial advisor would say it an awful way to go about buying a depreciating asset like a car.

Look at only the bottom line: total price of the car, and in my mind look at the total cost of ownership if you're going to be smart. It took me a long time to truly get to that point.

Edit: I should that obviously if you're going to have a payment, you have to be able to afford it, but when you start looking at monthly amounts only it's easy to fall into the trap of financing a car for 72 or even 84 months at too high of an interest rate.

In addition, when y'all are talking used, many of the cars y'all have Mark looking at are going to need to be 3-4 years old to get a good deal as they all retain value very, very well. A 1 year old TL isn't exactly a deal, plus you're going to pay a higher interest rate on the used car. And it's possible the manufacturer may be offering some sort of special rate, and overall that can help make the new car a better deal than most would expect.

Now, a G35 is probably a good one to look at used since it seems to depreciate like a Nissan. It doesn't help the G35 is the luxury car of choice of the car rental companies, so if you do go to buy used, make sure you do Carfax, Mark. I'd say about 1/3 of the used G35s I did the Carfax on were rentals.
 

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I would say to get an idea of your max and then go down...

like when you buy a house...you qualify for XX amount but its stupid to buy that much house...glad I didnt...I would have had to sell it when ex divorced me..
 

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LOL thanks for the input guys....im going to try to see if i can get used. I will have to wait and see in the next few days to see if the car is really totalled out and how much i will be getting if thats the case. Then i will have a definite budget to work out. Im looking into Infinity G35, Audi A4, BMW 3 series, Acura TL, and whatever falls around $25K but used haha....but new would be Accord, Altima, and Camry. Thanks again and i will be back for more opinions
2002-2003 Nissan Maxima, manual trans. Can be had for between 12-16k depending on miles. GREAT CAR!
 

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I would disagree having owned 5 personally and had another 5 in the family. It's ALL about taking care of it.
Agree with you. Mine is a 2001 (but with only 55000 miles), owned since new, and the only thing we do is maintenance as scheduled, and change tires. I'm on my 5th full set of tires on this thing. I swear, my wife must get out and throw things in front of it to run over. I also have the VR6, so I don't know if it makes a difference.
 

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That is exactly what you should not do!!!!! That is what has gotten American in so damn much debt, and any half-ass financial advisor would say it an awful way to go about buying a depreciating asset like a car.

Look at only the bottom line: total price of the car, and in my mind look at the total cost of ownership if you're going to be smart. It took me a long time to truly get to that point.

Edit: I should that obviously if you're going to have a payment, you have to be able to afford it, but when you start looking at monthly amounts only it's easy to fall into the trap of financing a car for 72 or even 84 months at too high of an interest rate.

In addition, when y'all are talking used, many of the cars y'all have Mark looking at are going to need to be 3-4 years old to get a good deal as they all retain value very, very well. A 1 year old TL isn't exactly a deal, plus you're going to pay a higher interest rate on the used car. And it's possible the manufacturer may be offering some sort of special rate, and overall that can help make the new car a better deal than most would expect.

Now, a G35 is probably a good one to look at used since it seems to depreciate like a Nissan. It doesn't help the G35 is the luxury car of choice of the car rental companies, so if you do go to buy used, make sure you do Carfax, Mark. I'd say about 1/3 of the used G35s I did the Carfax on were rentals.
I'm definately not saying that he shouldn't worry about the total cost of the car. I'm giving him practical advice as to avoid the dealerships trap of focusing on the monthly payment while they play around with the interest and loan length to maximize their profit. Car salesmen are taught to focus on the monthly payments because it benefits there pocket.

This is another reason why I advised him to contact his local C.U. or bank before hitting the dealership. Nothing like knowing the numbers up front which cuts down on ALOT of b.s. at the dealership.

In terms of total cost of ownership, I'm assuming that would be part of the research process that he's conducting currently.

Good Info

AZ,

Contact Capital One or another independent lender, A C.U., and a bank that you or your parents do business at for loans. Don't be afraid to negotiate the terms on the loan. Money is cheap to borrow these days and they WANT to loan you money so the ball is in your court.

Another thing, get a car YOU want. Nothing like buying a car and paying a car note on a vehicle you hate.
 

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In addition, when y'all are talking used, many of the cars y'all have Mark looking at are going to need to be 3-4 years old to get a good deal as they all retain value very, very well. A 1 year old TL isn't exactly a deal, plus you're going to pay a higher interest rate on the used car. And it's possible the manufacturer may be offering some sort of special rate, and overall that can help make the new car a better deal than most would expect.

Now, a G35 is probably a good one to look at used since it seems to depreciate like a Nissan. It doesn't help the G35 is the luxury car of choice of the car rental companies, so if you do go to buy used, make sure you do Carfax, Mark. I'd say about 1/3 of the used G35s I did the Carfax on were rentals.
Cars typically don't depreciate in a linear fashion. You usually take a hit right off the lot.

Another set of cars I would look at is anything that is coming off lease. Lexus and Infiniti seem to do this quite a bit (do a search on Ebay for some of the models you are looking for... if you see a ton of them in Florida and Texas coming off lease, you can probably get a deal.

Juan
 

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That is exactly what you should not do!!!!! That is what has gotten American in so damn much debt, and any half-ass financial advisor would say it an awful way to go about buying a depreciating asset like a car.

Look at only the bottom line: total price of the car, and in my mind look at the total cost of ownership if you're going to be smart. It took me a long time to truly get to that point.

Edit: I should that obviously if you're going to have a payment, you have to be able to afford it, but when you start looking at monthly amounts only it's easy to fall into the trap of financing a car for 72 or even 84 months at too high of an interest rate.
YES. YES. YES. YES. YES.

Listen to this guy.
 
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