no. that's not right.
27,144 price of the car / 9500 downpayment/trade-in =
$17,644 loan financed amount. Your monthly should be around the low 300's for 72 mo., and mid 300's for 60mo. I would do 60mo considering the interest charge for an extra year.

 

Thats not right either. You cant just take 377 x 72. If you do that you are adding all the interest in too. So that wouldnt be right.

 

well to take a loan for 18300 (which is what you are going to borrow) with an APR of 7.99% for 72 months your payment should be 320.77 and you will pay over the life of the loan a total of 4795.36 in interest.

Now if you did 60 months the payment would be 370.97. In that case you would pay a total of 3958.23 in interest.

Not sure where his math went wrong, but thats the totals i came up with. Perhaps he thought you wanted a 60 month loan? Those numbers are pretty close if he added doc fees and the like to his figures.

 

You are missing two key numbers:

Principle
and interest rate.

Without those numbers its just a guess.

 

is this your first time buying a car?

you got to get exact amount to be financed and APR.
before that, how much are you paying for the vehicle?

 

You are missing TTL and any dealer fees. Otherwise your numbers look good.

 

Yes, first time car buyer, probably why my interest is so high, credit score approx. high 600's. My interest is from Nissan and it's at 7.99%. The car value is at $27.8, is what they offered me on the car, which is an enthusiast model. MSRP around 30xxx.

 

Without TTL you are financing at $17644. For 72 months at 7.99% your monthly payment will be $309.27/mon. If you are financing TTL then add about $1200 dollars to the financing and it should put you around $330/mon. You need to find out where the extra $50 bucks is coming from. High 600 credit scores you are still not tier 1. Your rates will be from 7-9%. BTW never pay any of their fees.

 

Yea, the math didn't seem correct to me at first. In the beginning I think they gave me a 8.99% apr, around 478/mo 60 month, or 435/mo for 72 month <---rough estimate. So i kept saying I needed payments under 400 so they worked it out, dropped my apr and stuff... So the $50 I'm not sure where it comes from either, hopefully not ripping me off Going to try for $5000 cash down, no trade in. I think they might be ripping me off on the trade-in , in KBB it's going for 8-10k, I might as well privately sell it or something

 

This is a primary example of Why OTD price is useless! Taxes, downpayments, tradeins all change OTD prices.

 

actually what is important is the amount your trade was apraised, the total sales price of the car you are buying, and down payment. TTL and you can not avoid. You do however must treat your trade and the new car as two separate car deals. Everytime I sit down with the salesman, I take the new car out of the equation and tell him look, there are 2 deals here. You are buying my car and I am buying yours. We will work the value of the trade first before we move on. If we cant agree on my trade value then there's no point of looking at the new car.

 

Not exactly. What they did was quote you a 6 year loan.

 

Wow, nice answer, I'm going to another dealership today and going to work with that! Ok so this is the jist of it. The car on KBB is 8-10k... The trade-in value they gave was only 5300. I don't want to deal with the headache of selling etc, only if it's worth it, which it is since they gave me only 5300. What's a good target to aim for in the trade-in value of my car?

 

Asking for a car deal based on monthly payments is the worst thing you can do. If you get the numbers right the math will work out by itself. You need to have them spell it out by listing each item out:

1) Cost of the car they are selling you at
2) Total value of your trade they are giving you
3) Loan term
4) Loan rate
5) TTL cost
6) Any extra fees
7) Total amount being financed.

 

Need year, make, model, trim, condition, market zone, mileage, and how much you still owe on it to answer that question.

 

I think you are doing well, and buying smart. The sale (of your car) and purchase (350Z) are separate negotiations. Dealers will try to roll them into one to confuse.

 

Could not agree more.

If the value of the trade in is unrealistic, there is no point in continuing. Salespeople like to work from monthly payments backwards. The exact opposite of what a buyer should be doing.

 

I would agree with this unless you already know what you want to pay for their car and what you want for yours.

Lets say you have a 350Z MSRP of 32500. You want at least 10K for your car. You know that after everything is all said and done your target number is 20K. Since you know thats your target number, it really doesnt matter what they give you for your trade or they sell their car to you for. So if they give you 12k for yours and you get their car for 32K, or they give you 10K for yours and you get their car for 30K doesnt make any difference.

The final number is all that matters, so how would seperating the 2 deals be any better or different ?

 

If you live in Walnut and in the market for a brand new 07, you have plenty of dealers around, so shopping around a bit more can't hurt. I'm sure you've heard of the praises that W. Covina Nissan gets around here. There's also Superior Nissan in City of Industry and there's another one in El Monte area also, forgot the exact name. Shouldn't be too hard to find a white one out of 3 dealers in the area.
If you're not thinking about doing a lot of major mods to the car, maybe you can consider leasing the car?

 

The dealership is looking at overall profit margin. You are right about that but if you separate the two you will avoid them hidding numbers by upping the trade value and tacking the difference on the car. You also have to remember MSRP of the new car vs. the trade value of the new car the wiggle room value +/- is different. But at the end your example is flawed in the sense that what if you could have gotten 12k for the trade and 30k for theirs? You would have never known that if you let them ball it all together. The entire point of pushing your max on both ends is so that you'll get an idea of how low off that profit margin they are willing to come off of to sell you a car. You also have to remember hold backs on 350Z for the dealership is $1000. It's the highest in the Nissan line. I dont know about you but I fight for every penny.