Question about buying a new car.

by MrFreeze 5 Replies latest jw friends

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  MrFreeze

  Okay, so I've been without a working car since November and it will cost thousands to get it up to snuff. Fortunately, I am able to walk to work. Getting a new car isn't really a necessity but more of a luxury. I've never bought a new car so I'm a rookie when it comes to this stuff.

  Despite that, I've been pondering it. I know that most dealerships want you to put a good-sized downpayment on a new car.

  The question I have is this: If I were to get a loan through a bank and not have it financed through the dealership, would the dealership scratch the downpayment requirement? Also, would that go towards taxes/title/other fees?

  Pretty much I'm trying to figure out if I should save some money first. If I go to save money for it, I won't be able to start saving for a few months until I get my medical bills paid off. Then it might take me several months after that to get a nice downpayment together. I would rather go through my bank instead of the dealership since I would probably get a much better interest rate.
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  JeffT

  Talk to both and see what they have to say. There's a good chance you'll get a better payment plan from the dealership. They need move cars off the lot and will offer terms that a bank can't match. A lot depends on your credit rating etc. They off all sorts of cash back deals and the like to get you take a car off their hands, these can count as down payment. If you finance through your own bank they don't care about down payment, they get paid in full by your bank.
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  MrFreeze

  Thanks! Yeah, I'm not going to go blindly into it. I'm going to talk to several dealerships as well as my bank (or maybe a local credit union) and figure out my options. Another thing I wonder is if a bank were to provide the loan then is it common for them to have early payment fees? That's something I'd have to ask them though to figure out for sure.
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  finally awake

  Whether you finance through a bank or through the dealership, most of the time you are going to need a cash downpayment or a trade in worth roughly 10% to 15% of the cash price of the deal (including tax & license). The reason for that is the car depreciates the minute you drive it off the lot, and the financing entity doesn't want you to owe more on the car than it is worth. You may find a car that has a rebate offer that will cover your downpayment, or if your credit is really good you may not have to have as much of a downpayment. Good luck car hunting!
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  prologos

  there are better places than this forum here for your buying question. Buying a new car is the worst financial decision you could make. who are you trying to impress?

  you might pick up a 2-3 year old with only 1/10 of its life gone for half the new price. Time is on your side, look for a good bargain buy, and save in the meantime.

  I have not bought a new car since the 50-60s, when you could buy a new volkswagen for under 2000.- drive it TWO years & 60 000 miles , give the dealer 500.- and get a new one. Have 4 vehicle now (for specific needs), great service, average age : 23 years old, average milage 100 000.

  I do not expect to have to replace them before I die. (unless I find a real gem) then I will discover the need.

  Dont spend money on stuff, spend it on living,-- long, --well. think of anti-freeze.

  as you are about to sign that new car contract: somebody is shouting: "Freeze" mr freeze.
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  GromitSK

  Why not just hire a car when u need one?