ProZach626

I'm going to test drive this Z tonight or tomorrow, most likely. Would 22k OTD be a reasonable price to offer? 22k would include tax, title, and license. Basically everything but loan interest.

2008 enthusiast with 6k miles.

http://www.autotrader.com/fyc/vdp.js...standard=false

Highway Riding

iTrader: (6)

what year, specific model?

Ronin82

iTrader: (4)

year, specific model, milage, car fax title???

TJGILROY

iTrader: (6)

worthless

ProZach626

^^ totally.

Sorry, I was in a hurry and forgot to paste the link. It's fixed now.

:bump:

Entaille

iTrader: (16)

I think 22k OTD is reasonable and a pretty decent deal.

you need to start lower if you want them to meet you there, though.

you could always tell them you are ready to buy at their asking price if they will cover all the taxes, title fees and other misc fees inclusive.

TJGILROY

iTrader: (6)

yeah, you have to swindel a little...start at 19k and you'll do it...then go from there...nice color by the way!

ProZach626

That's pretty much what I plan on doing. That way it will just be their asking prices multiplied by whatever my interest rate is (probably 5-6%), and that will be my payment. I pay 400 a month for my slow civic Si and don't really want to pay anything over that.

Brrcats

iTrader: (10)

offer $20k then walk

Entaille

iTrader: (16)

do NOT shop by monthly payment. I guarantee you they can get your payment under 400$ a month. how does a 7 year loan sound? there are other numbers they can play with. don't give them that help.. shop by final price. figure 200$ a month for every 10 thousand loaned on a decent interest rate / 5 year loan.

MOB

iTrader: (3)

20k....(tax and licensing will make the car 22k)

say i will buy it today if you give it for 20k...u will get it...its a 08, econ sucks, 20k is alot to pass up on....u got it

MOB

iTrader: (3)

Wait a min you pay 400 for a civic si?? they had a deal over here where I live its 3 down 328 a month for a 370z. If your max is 400 a month, why don't you think about getting a 370z? its a lease though. After the lease is done you will still be looking at payments of around 330 to 350. I have a G35 and a 350z so I'm not able to put 500 on one car. I put 500 a month on both, not to mention my dad and mom's car that I'm paying for. If I had 500 to use up on 1 car I would think about a 370z for sure man.

let me know, do you not like to lease cars? or is it that you didn't think about it?

duro78

iTrader: (6)

Where are you getting your figures from. First off you cant gaurantee anything you dont know his credit history,you dont know the rates the banks are gonna give him, the details on the vehicle etc etc and a 84 month loan especially on a used car not happening.. bmw is pretty much the only ones that do that. yes there is an average of $20-$30 per 1000 loaned but by the time you get to 5k and all the way to 10k that figure is no where near accurate due to the fact there are way too many variables involved.If he was paying that for a civic im assuming he young with no history so his rate will be high so why drag out a payment to 72months the compounded interest will be wayyy up there. The bank probably wont approve him without a strong down payment especially since the car is used plus given the z residual value.At some point one must say they cant afford it or its just a dumb financial decision. Kill me with the inaccurate advise

duro78

iTrader: (6)

What kind of advise is that...thats with A++ credit plus you still have to take care of the taxes. Buying a car of after your lease is done is a horrible idea and i wont even touch what you said at the bottom. Your not getting 5-6% on a used car plus your formula for figuring your payment is incorrect. ballpark keep in mind i dont know your credit you will be paying around 30k after the interest is compounded. Thats figuring your not upside down in your current loan

duro78

iTrader: (6)

Where are you getting your figures from. First off you cant gaurantee anything you dont know his credit history,you dont know the rates the banks are gonna give him, the details on the vehicle etc etc and a 84 month loan especially on a used car not happening.. bmw is pretty much the only ones that do that. yes there is an average of $20-$30 per 1000 loaned but by the time you get to 5k and all the way to 10k that figure is no where near accurate due to the fact there are way too many variables involved.If he was paying that for a civic im assuming he young with no history so his rate will be high so why drag out a payment to 72months the compounded interest will be wayyy up there. The bank probably wont approve him without a strong down payment especially since the car is used plus given the z residual value.At some point one must say they cant afford it or its just a dumb financial decision. Kill me with the inaccurate advise

ProZach626

Unfortunately, someone else had already put a deposit on the car. The guy said he would call me today if the buyer backed out. I'm not incredibly young. I'm 24 years old. I was just incredibly stupid in all aspects of my last vehicle purchase. (2009 honda civic si coupe, purchased 0ct. 08) I jumped into the car way too quickly and paid way too much. It essentially was my first time buying a car, since my father helped me out on my 03 spec v when I was 19. Since I was dumb enough not to examine the paperwork thoroughly, I'm fairly certain I got hit with a load of hitten fees and charges. The car started out at 23,450, I put 1000 down, and had a 2400 dollar trade in, and somehow I still got stuck with paying 400 a month on a 63 month loan. I know I made a mistake. Because of this, I've utterly confused about what kinds of charges and interest go into a car loan. After the fact of my purchase, I broke down the numbers, and it was as if I paid taxes twice. When it was all said and done I took the bottom line for what I paid on the car, which was about 20-21 grand, and had to multiply it by 1.2 for my 400/month payments to come out right!!! Where did I get screwed? I have no idea how to accurately calculate what my payments will be.

My credit is decent. With my civic I got a 5.9% rate through my bank with no co signer, during a time when getting a loan was nearly at it's worst. I owe 16,225 on my civic. I see them being sold at other dealerships which are older and with more mileage for 18-19 grand, so there would be no deal unless they paid off the civic.

The guy tried to talk me into buying a new z. He told me they were going to be having a sale next week where they would be selling them at invoice pricing. I told him I couldn't justify spending 28 grand on a car. I make decent money, and in reality I could easily afford a 600 dollar car payment, but I like to live below my means. Most of my savings go to paying off student loans, and I'm about to be credit card debt free in a month, since I only have 1500 left.

I suppose I'll just wait until another low mileage Z comes along. I'm looking for any 07-08 with under 15-20k miles on it. It's a toss up between that or a new 2010 WRX. I'd rather have the RWD 2 seater while I'm young and without kids, since I can afford to do so now.

duro78

iTrader: (6)

Ok listen after you gave me more info you can forget about a new car. You havent been in your current car long enough to even put a dent in it, your not even paying the principle yet. Dealerships dont use kellys when figuring trade in value most use galves which is lower. Your gonna be severely upside down in your current loan meaning you owe a lot more than its worth thats mostly because you havent been in the car long enough plus you got screwed. That means the remainder is gonna have to be put on top of the new car loan nooo dealership just pays your car off like that. You cant figure a payment by just adding say 5.9 interest the interest has to be compounded over the term of the loan. Dealers will tell you whatever you want to hear to get u in the door but crunching #s is something totally different. You say you can afford 600 but why should you yes you want a new car but at what cost. You made a bad decision with the civic and your about to make another Paying 600 a month for 72 months for a car that was originally 15k is just ridiculous you'd be paying more than double what the car cost then once you do that your always gonna be behind adding old car loans to new ones. Yes you made a mistake but learn from it and dont make another. Up to this point no one in this thread knows wth there talking about i was a F&I mgr for 5 years the guy you sit down with and do all the finances with. Think about your future just bite the bullet ad stay in the civic for awhile longer you will thank me when your 30 trust me. Now is the time to fix your last mistake not make it worse and dont think you wouldnt mind paying more as long as you get the car you really want that wont last but a couple months then you will regret it. Lmk if you have any ?s

Entaille

iTrader: (16)

duro, I think you are misinterpreting what I said. I didn't calculate ANYTHING out. I asked how did a 7 year loan sound? simply to show him that they can get his car payment anywhere he wants it.. they just have to tweak the loan rules to accommodate that. I was offered a 7 year loan on my Z as an option and it was used. it's getting more common then you think.

the other part I stated that you seemed to misinterpret, figure 200 a month for every 10,000 loaned on a decent interest rate. it's a good rule of thumb, and yes, it's assuming your credit is 'good'. it's not entirely accurate, it's just an easy way to estimate a monthly payment.

reading way too much into what I said, there is no calculation being done, just general advice as to why you should avoid shopping via monthly payment, as well as what to expect payment wise.

ProZach626

^^ You're probably right. I just really hate this car though... I'll see how much longer I can stand it.

I don't intend on paying 600 for a car. There is no way I would ever do that.

How is compounding interest figured anyway?

Thanks for the help.

dhays

iTrader: (10)

Zach, don't take this the wrong way, but you are lucky the Z already had a buyer. You are not ready to make another car purchase. You may, or may not, have educated yourself on the Z as a car, but now you need to educate yourself financially.

It sounds like to this day you don't know all the terms of your car loan, only your monthly payment. You don't understand the concept of how interest is calculated in a loan. I'm not sure you really understand the effects of depreciation. My suggestion would be to learn about those things before you make any other major financial decisions. At 24 you aren't a kid anymore, barely, but you still are very young. It isn't unusual for young people to not have a good foundation in basic finances. I didn't begin to figure that stuff out until I was in my early 20's either.

Now there are a lot of resources where you can learn about that stuff. Try using Wikipedia to check out:
- loan calculations
- depreciation
- opportunity cost
- time value of money
- amortization

By doing just a bit of research you will be better prepared to make good financial decisions.

FWIW, I would suggest that in almost every case, your best decision at this point is to hang on to your Honda and pay off that car loan. Then save up your money to pay cash for your next car. Car loans are a fools game that are rarely unavoidable.