buying a car...

[Saggy Aggie]

Gonna be buying my first car soon, what do all you old timers have to say as far as advice goes?


Keep in mind that while I do have good credit, I dont have any previous auto loan history and so my interest rate isn't going to be THAT great. I do qualify for a lot of the 'new graduate programs' that help you get a better rate and discounted price and whatnot, so its not all bad. I'm looking for a used (preferably certified pre-owned) 4 door car with <50K miles... I'd prefer around 30-35K miles and a 2010-2011ish vehicle if i cant get it, but those are really hard to find for what i want to spend. I'm buying used mainly so I'm not the one who has to take the hit on the depreciation right out of the lot.

I feel that I can afford 25K or so, but I'd prefer to stay closer to 22K if possible. Some type of luxury sedan is what i prefer, i.e bmw 3 series, audi a4 etc. I also prefer a manual, but thats not a deal breaker. Current interest rates I've been quoted for around 3.5-4.8% depending on where I go. Also, I've already quoted insurance to be around 150-170/month for full coverage and have considered this in my budget. The budgeting i've done is extensive and im comfortable with the price range. Also, I guess itd be helpful to know that I'm looking at putting 3K down and a 5 year payment. I'm not in any hurry to buy and I'll wait on a deal that i feel like I cant pass up before I buy. I've already turned down about a half dozen offers.

You guys have any thoughts? Previous experience you might wanna share?

[MUSTANG69]

I work for a Ford dealership and we see this situation quite often. With no car credit you may not beat the 3.5-4.8 % rate. One option you may have is a cosigner. Ask if this will help your rate. We have parents co-sign quite often for a first time buyer. Also, if you are willing to settle for less car you might consider NEW instead of Pre-Owned. Better rate sometimes. Please don't settle for a term longer than 5 years. You will be upside down the rest of your life. In my opinion anything over 3 years hurts you. I hope this is of some help.

[Saggy Aggie]

I work for a Ford dealership and we see this situation quite often. With no car credit you may not beat the 3.5-4.8 % rate. One option you may have is a cosigner. Ask if this will help your rate. We have parents co-sign quite often for a first time buyer. Also, if you are willing to settle for less car you might consider NEW instead of Pre-Owned. Better rate sometimes. Please don't settle for a term longer than 5 years. You will be upside down the rest of your life. In my opinion anything over 3 years hurts you. I hope this is of some help.

Don't really want a cosigner, because if for some reason down the line i cant make my payment, i dont wanna screw up someone else's credit, though I will ask about it.

And thanks for the advice on the 3 year option versus 5 year. It obviously increases the price per month significantly, but does stretching it out to 5 years really cause you to be upside down? I think I take pretty good care of my vehicles and dont put too many miles on them (~10K/year). Its my understanding that the best way to keep from being upside down is to not buy new, right???

Also, would you recommend gap insurance?

[regaleagle]

SAGGiE.....find yourself a good credit union and make a deposit to open an account with them. Tell them what you want to do, make an application with them for preapproval for a dollar amount, THEN you can search for that vehicle that fits the loan amount. When dealing on terms, ask for payment quotes at 42, 48, and 60 mos. and at what interest rates for each term length. Automatic debit payment method using your deposit account is highly recommended for repayment to safeguard your good credit and to give the credit institution something else to sink their teeth into. You may secure a better interest rate this way.

Go online and do your due diligence in searching out reputable established credit unions that actively advertise their services. You want to look at years in business, number of members, and locations in Texas. Locally or Texas-based is preferable.

[Saggy Aggie]

SAGGiE.....find yourself a good credit union and make a deposit to open an account with them. Tell them what you want to do, make an application with them for preapproval for a dollar amount, THEN you can search for that vehicle that fits the loan amount. When dealing on terms, ask for payment quotes at 42, 48, and 60 mos. and at what interest rates for each term length. Automatic debit payment method using your deposit account is highly recommended for repayment to safeguard your good credit and to give the credit institution something else to sink their teeth into. You may secure a better interest rate this way.

Go online and do your due diligence in searching out reputable established credit unions that actively advertise their services. You want to look at years in business, number of members, and locations in Texas. Locally or Texas-based is preferable.

All good things to think about. thanks for your input regal.

I have been looking into independent financing and i'll go that route if i can secure a better rate.

[bwdlionfan]

All good things to think about. thanks for your input regal.

I have been looking into independent financing and i'll go that route if i can secure a better rate.

I bought my first car in summer 2012 (actually bought it for my wife but neither of us had bought a car before). I actually got qualified for used car financing at 2.99% through First Financial Bank in Abilene (I live 2 1/2 hours away from Abilene though but that doesn't matter). I wound up getting a certified pre-owned Mercury, and at the time of the purchase, Ford was offering 1.99% on pre-owned certifieds.

But anyway, I had no car credit (though I do have very high credit scores from paying off college loans and overpaying my house every month).... but I had a great rate on the table through First Financial Bank. You might give them a try. I know rates have gone up a bit but I wouldn't have thought they'd be that much higher.

[MUSTANG69]

All good things to think about. thanks for your input regal.

I have been looking into independent financing and i'll go that route if i can secure a better rate.

Sometimes you can get a better rate doing the indirect lending route thru your dealer. Ask them their rate and compare to the direct lending rate.

[MUSTANG69]

Don't really want a cosigner, because if for some reason down the line i cant make my payment, i dont wanna screw up someone else's credit, though I will ask about it.

And thanks for the advice on the 3 year option versus 5 year. It obviously increases the price per month significantly, but does stretching it out to 5 years really cause you to be upside down? I think I take pretty good care of my vehicles and dont put too many miles on them (~10K/year). Its my understanding that the best way to keep from being upside down is to not buy new, right???

Also, would you recommend gap insurance?

Taking care of your vehicle definitely helps but sometimes certain vehicles just don't hold their value. If 3 year payments are to steep consider 4 years. 27 years in the car business, I seen to may deals go south because someone was upside down on the trade.

I would always recommend Gap insurance. You never know when your car is going to get totaled and believe me, the insurance companies are only going to pay what they have to. You can always negotiate with them but it is not always enough.

[44INAROW]

sounds like you're buying a car the right way and not rushing into it! Congrats on that!!!! I have a few suggestions.
1) When you are getting insurance quotes - ask if they offer the "new car replacement" endorsement - ie - they guarantee a year model 1 year ahead of your current car. (you total a 2012 - they'll put you in a 2013);

2) ask the insurance agent if you can get OEM for replacement parts - meaning the insurance company has to (is supposed to anyway) approve NEW parts, not used

3) foreign cars are usually higher rated due to availability of replacement parts (I don't think it is as bad now as it was a few years back)

4) if you live in a rural area and are buying a BMW, Lexus, Mercedes Benz, Audi - make sure you can get it serviced locally (Unless you are able to take a day off easily to drive to a certified dealer)

5) be sure and get "rental reimbursement insurance" in case of a loss - it doesn't cost much and you'll be glad you did in the unfortunate chance you have to file a claim

6) I suggest you carry a high deductible for collision - minimum of $500 - and some might disagree but I insist on Uninsured Motorist coverage.. You'd be surprised how many 'parking lot' claims we do a week.. ie some jackass hits your car and leaves the scene, you come out and find your rear quarter panel hanging on the ground. If you file a Collision claim - it counts against you and either $500 or $1000 deductible. Uninsured Motorist claim shouldn't count against you and the deductible is $250

Good Luck!

[MUSTANG69]

sounds like you're buying a car the right way and not rushing into it! Congrats on that!!!! I have a few suggestions.
1) When you are getting insurance quotes - ask if they offer the "new car replacement" endorsement - ie - they guarantee a year model 1 year ahead of your current car. (you total a 2012 - they'll put you in a 2013);

2) ask the insurance agent if you can get OEM for replacement parts - meaning the insurance company has to (is supposed to anyway) approve NEW parts, not used

3) foreign cars are usually higher rated due to availability of replacement parts (I don't think it is as bad now as it was a few years back)

4) if you live in a rural area and are buying a BMW, Lexus, Mercedes Benz, Audi - make sure you can get it serviced locally (Unless you are able to take a day off easily to drive to a certified dealer)

5) be sure and get "rental reimbursement insurance" in case of a loss - it doesn't cost much and you'll be glad you did in the unfortunate chance you have to file a claim

6) I suggest you carry a high deductible for collision - minimum of $500 - and some might disagree but I insist on Uninsured Motorist coverage.. You'd be surprised how many 'parking lot' claims we do a week.. ie some jackass hits your car and leaves the scene, you come out and find your rear quarter panel hanging on the ground. If you file a Collision claim - it counts against you and either $500 or $1000 deductible. Uninsured Motorist claim shouldn't count against you and the deductible is $250

Good Luck!

Very good response. I wish all agents would explain this to their customers. We get a lot of people in our body shop who don't have the coverage they thought they did.

[44INAROW]

Very good response. I wish all agents would explain this to their customers. We get a lot of people in our body shop who don't have the coverage they thought they did.

Thanks - believe it or not - some of the biggest hassles we have are with people who 'think' they have rental reimbursement but don't. Another sticky issue is the folks that want "only what the law and bank require" - that is UNTIL they have a wreck.. Then they say they wanted everything.
We were in Florida this past weekend and rented a car (2013 Escape - $93 for 3 full days pretty good I think) anyway - the guy checking me in etc never even asked if I had liability insurance. I thought that was odd. He of course wanted me to buy their collision waiver insurance and I promptly rejected it.

[MUSTANG69]

Thanks - believe it or not - some of the biggest hassles we have are with people who 'think' they have rental reimbursement but don't. Another sticky issue is the folks that want "only what the law and bank require" - that is UNTIL they have a wreck.. Then they say they wanted everything.
We were in Florida this past weekend and rented a car (2013 Escape - $93 for 3 full days pretty good I think) anyway - the guy checking me in etc never even asked if I had liability insurance. I thought that was odd. He of course wanted me to buy their collision waiver insurance and I promptly rejected it.

We see a lot of cheapskates who buy their insurance thru these discount insurance companies. Boy are they surprised when they need that insurance.

[Saggy Aggie]

Well, I think I struck a deal today on a 2007 BMW.

Wasn't planning on buying a little older vehicle but it only had 48K miles in 6+ years so hardly driven. Clean history and extremely well priced IMO. Felt like I couldn't pass it up. Negotiated the price down about 1000$ extra dollars and a bunch of minor cosmetic repairs. Pending my approval of all of that and the banks financing, I'll have a car at the end of this week. Thanks for all the input guys and the insurance info is much appreciated!

[Saggy Aggie]

Dealership came back with a 7.9% interest rate. I said no thanks. Called my credit union to see about independent financing. They told me I had a credit score of 724 and I qualify for 1.99%. :) :)

Looks like I've got myself a great deal guys

[BwdLion73]

It will be hard to beat that BMW. I had an X-5 that I got at 5000 miles. I drove the wheels off it and traded it at over 200,000 with just battery change and regular maint. Make sure you find a good BMW dealership and don't forget...wave at the little kids and smile at the girls.

[Saggy Aggie]

Well, bought my car officially today.

Got it for about 2400 less than it's value, put about 20% down and financed it for 4 years. Hopefully that'll keep me from being upside down on it.

Thanks for all the advice y'all

[Emerson1]

44inarow how much do you know about boat insurance?

[44INAROW]

44inarow how much do you know about boat insurance?
sorry Emerson - didn't see this until today - I'm not an expert but I have some knowledge. what's up?

[Old Tiger]

Gonna be buying my first car soon, what do all you old timers have to say as far as advice goes?


Keep in mind that while I do have good credit, I dont have any previous auto loan history and so my interest rate isn't going to be THAT great. I do qualify for a lot of the 'new graduate programs' that help you get a better rate and discounted price and whatnot, so its not all bad. I'm looking for a used (preferably certified pre-owned) 4 door car with <50K miles... I'd prefer around 30-35K miles and a 2010-2011ish vehicle if i cant get it, but those are really hard to find for what i want to spend. I'm buying used mainly so I'm not the one who has to take the hit on the depreciation right out of the lot.

I feel that I can afford 25K or so, but I'd prefer to stay closer to 22K if possible. Some type of luxury sedan is what i prefer, i.e bmw 3 series, audi a4 etc. I also prefer a manual, but thats not a deal breaker. Current interest rates I've been quoted for around 3.5-4.8% depending on where I go. Also, I've already quoted insurance to be around 150-170/month for full coverage and have considered this in my budget. The budgeting i've done is extensive and im comfortable with the price range. Also, I guess itd be helpful to know that I'm looking at putting 3K down and a 5 year payment. I'm not in any hurry to buy and I'll wait on a deal that i feel like I cant pass up before I buy. I've already turned down about a half dozen offers.

You guys have any thoughts? Previous experience you might wanna share?

My suggestion is go CPO, let some fool take the loss of purchasing new. Also try to get a car with less than 20k miles. When buying CPO check NADA retail value of the specific car compared to clean trade in value. When you go in tell them you want it but only at "insert price number of clean trade in value." That will be the negotiating starting point. From there if you can get it out the door at NADA retail price including TT&L it's a good buy.


The first car I purchased was September of last year and I ended up with an interest rate of around 17%. I did not have a co-signer when I made that purchase. I paid on it a year and about 2 weeks ago the that car was hit in the parking lot of my apt complex and was deemed totaled. I am currently going through the GAP process now and I hope I don't get screwed over by that.



This past Friday I just purchased a 2011 Lincoln MKZ with 18,200 miles on it. I was out the door about a grand below NADA retail including TT&L and other fees. NADA Trade in on these kind of cars is 15k-18k. NADA retail was 23.275k. I was able to get it off the lot for 22.5k including tax title and license plus dealership fees. I did add a maintenance package which added about $750 to the vehicle but that extends the life of the warranty that is left which is 4 years/80k miles. So all in all out the door with a badass maintenance package for NADA retail. Total payoff of car including interest is just over 27k with the 5 year loan so 4k in interest total.

The interest rate on the new vehicle is 4.4% and I financed for 60 months. Also if you are member of a credit union go there and fill out an auto loan and see what they will give you. High ball them and see what they counter with. You should and most likely will get a lower interest rate there.



Go in with confidence and make them sound like you know what the hell you're talking about in regards to the car, do research. Tell them you aren't there to play games you are there to do business and if they can get you the numbers you want then you will put money in their pocket.

[Old Tiger]

Also the Lincoln's warranty is comprehensive with a $50 deductible if I take it to the dealership I purchased from or $100 deductible at any Ford or Lincoln dealership.


My insurance rate on this car is about $157/month and the coverage is as follows....


Progressive

Coverages Limits Rate
Bodily Injury & Property Damage Liability:
$50,007 each person
$100,007 each accident
$50,007 each accident
Uninsured/Underinsured Motorist Bodily Injury:
$50,007 each person
$100,007 each accident
Uninsured/Underinsured Motorist Property Damage:
$25,007 each accident
$250 deductible
Medical Payments: No Coverage
Personal Injury Protection:
$5,003 each person each accident
Comprehensive: $499 Deductible
Collision: $499 Deductible
Rental Reimbursement: $30 each day
maximum 30 days
Roadside Assistance: Selected
Custom Parts and/or Equipment value: No Coverage
Loan/Lease Payoff: No Coverage

[bobcat1]

Good job with everything but Progressive. Worst insurance company out there.

[Old Tiger]

Good job with everything but Progressive. Worst insurance company out there.

They have been good to me so far and the rate is good for me at this time.

[MUSTANG69]

My suggestion is go CPO, let some fool take the loss of purchasing new. Also try to get a car with less than 20k miles. When buying CPO check NADA retail value of the specific car compared to clean trade in value. When you go in tell them you want it but only at "insert price number of clean trade in value." That will be the negotiating starting point. From there if you can get it out the door at NADA retail price including TT&L it's a good buy.


The first car I purchased was September of last year and I ended up with an interest rate of around 17%. I did not have a co-signer when I made that purchase. I paid on it a year and about 2 weeks ago the that car was hit in the parking lot of my apt complex and was deemed totaled. I am currently going through the GAP process now and I hope I don't get screwed over by that.



This past Friday I just purchased a 2011 Lincoln MKZ with 18,200 miles on it. I was out the door about a grand below NADA retail including TT&L and other fees. NADA Trade in on these kind of cars is 15k-18k. NADA retail was 23.275k. I was able to get it off the lot for 22.5k including tax title and license plus dealership fees. I did add a maintenance package which added about $750 to the vehicle but that extends the life of the warranty that is left which is 4 years/80k miles. So all in all out the door with a badass maintenance package for NADA retail. Total payoff of car including interest is just over 27k with the 5 year loan so 4k in interest total.

The interest rate on the new vehicle is 4.4% and I financed for 60 months. Also if you are member of a credit union go there and fill out an auto loan and see what they will give you. High ball them and see what they counter with. You should and most likely will get a lower interest rate there.



Go in with confidence and make them sound like you know what the hell you're talking about in regards to the car, do research. Tell them you aren't there to play games you are there to do business and if they can get you the numbers you want then you will put money in their pocket.

Is the maintenance package you purchased an actual factory plan or is it an non-Ford plan?

[MUSTANG69]

My suggestion is go CPO, let some fool take the loss of purchasing new. Also try to get a car with less than 20k miles. When buying CPO check NADA retail value of the specific car compared to clean trade in value. When you go in tell them you want it but only at "insert price number of clean trade in value." That will be the negotiating starting point. From there if you can get it out the door at NADA retail price including TT&L it's a good buy.


The first car I purchased was September of last year and I ended up with an interest rate of around 17%. I did not have a co-signer when I made that purchase. I paid on it a year and about 2 weeks ago the that car was hit in the parking lot of my apt complex and was deemed totaled. I am currently going through the GAP process now and I hope I don't get screwed over by that.



This past Friday I just purchased a 2011 Lincoln MKZ with 18,200 miles on it. I was out the door about a grand below NADA retail including TT&L and other fees. NADA Trade in on these kind of cars is 15k-18k. NADA retail was 23.275k. I was able to get it off the lot for 22.5k including tax title and license plus dealership fees. I did add a maintenance package which added about $750 to the vehicle but that extends the life of the warranty that is left which is 4 years/80k miles. So all in all out the door with a badass maintenance package for NADA retail. Total payoff of car including interest is just over 27k with the 5 year loan so 4k in interest total.

The interest rate on the new vehicle is 4.4% and I financed for 60 months. Also if you are member of a credit union go there and fill out an auto loan and see what they will give you. High ball them and see what they counter with. You should and most likely will get a lower interest rate there.



Go in with confidence and make them sound like you know what the hell you're talking about in regards to the car, do research. Tell them you aren't there to play games you are there to do business and if they can get you the numbers you want then you will put money in their pocket.

Is the maintenance package you purchased a factory plan or is it written by an outside company?

[bobcat1]

Is the maintenance package you purchased a factory plan or is it written by an outside company?Those outside company maintenance plans/warranty usually aren't worth the paper they are written on.

[Old Tiger]

Is the maintenance package you purchased a factory plan or is it written by an outside company?

Pretty sure it's through the factory but not sure. They told me to take it to any Ford or Lincoln dealer and the maintenance will be taken care of at no charge that day and it is tied to the VIN of the vehicle. How can I tell?

[MUSTANG69]

Pretty sure it's through the factory but not sure. They told me to take it to any Ford or Lincoln dealer and the maintenance will be taken care of at no charge that day and it is tied to the VIN of the vehicle. How can I tell?

Read the plan contract or go back to your dealer and ask. If it is not a factory plan other dealers do not have to honor it.

[Old Tiger]

Read the plan contract or go back to your dealer and ask. If it is not a factory plan other dealers do not have to honor it.

Right on, she told me any dealer but I will check to be sure. I'm 80% sure it is factory because it is tied directly to the factory warranty.

[MUSTANG69]

Right on, she told me any dealer but I will check to be sure. I'm 80% sure it is factory because it is tied directly to the factory warranty.

I hope it is. After 26 years in the automobile industry it is my opinion it is always best to buy factory extended service plans and factory maintenance plans.

[Old Tiger]

I hope it is. After 26 years in the automobile industry it is my opinion it is always best to buy factory extended service plans and factory maintenance plans.

Yeah the car has it's original factory warranty of 6 years 100k miles but only 4 years and 81k miles and some change is left on it. I picked that warranty up. Also nice is that it is comprehensive warranty with a $50 deductible at the dealership I purchased at or $100 deductible at any Ford or Lincoln dealership. That covers all parts and labor.

[MUSTANG69]

Those outside company maintenance plans/warranty usually aren't worth the paper they are written on.

You are right. Most are crap. There a couple good ones that are recognized by a lot of dealers. They are written by companies that concentrate on the auto industry. I just think it is best to go with the factory plans because all dealers will recognize them.

[1st and goal]

I know this is a week later but congrats on your new car. MKZ's are really nice vehicles. I hope it serves you well.

[Old Tiger]

I know this is a week later but congrats on your new car. MKZ's are really nice vehicles. I hope it serves you well.

Best part is my uncle is/was a master mechanic for Ford for over 20 years so once the warranty is done I have a good mechanic to go to. Thanks and so far it has been an amazing vehicle such a smooth and quiet ride.

[Saggy Aggie]

My suggestion is go CPO, let some fool take the loss of purchasing new. Also try to get a car with less than 20k miles. When buying CPO check NADA retail value of the specific car compared to clean trade in value. When you go in tell them you want it but only at "insert price number of clean trade in value." That will be the negotiating starting point. From there if you can get it out the door at NADA retail price including TT&L it's a good buy.


The first car I purchased was September of last year and I ended up with an interest rate of around 17%. I did not have a co-signer when I made that purchase. I paid on it a year and about 2 weeks ago the that car was hit in the parking lot of my apt complex and was deemed totaled. I am currently going through the GAP process now and I hope I don't get screwed over by that.



This past Friday I just purchased a 2011 Lincoln MKZ with 18,200 miles on it. I was out the door about a grand below NADA retail including TT&L and other fees. NADA Trade in on these kind of cars is 15k-18k. NADA retail was 23.275k. I was able to get it off the lot for 22.5k including tax title and license plus dealership fees. I did add a maintenance package which added about $750 to the vehicle but that extends the life of the warranty that is left which is 4 years/80k miles. So all in all out the door with a badass maintenance package for NADA retail. Total payoff of car including interest is just over 27k with the 5 year loan so 4k in interest total.

The interest rate on the new vehicle is 4.4% and I financed for 60 months. Also if you are member of a credit union go there and fill out an auto loan and see what they will give you. High ball them and see what they counter with. You should and most likely will get a lower interest rate there.



Go in with confidence and make them sound like you know what the hell you're talking about in regards to the car, do research. Tell them you aren't there to play games you are there to do business and if they can get you the numbers you want then you will put money in their pocket. did you not read the thread? Lol... I bought a car before you posted your car buying advice.

I ended up paying about 1400$ less than NADA value after TT&L with a 1.99% rate and no co-signer. Not bad for my first purchase...

[Old Tiger]

did you not read the thread? Lol... I bought a car before you posted your car buying advice.

I ended up paying about 1400$ less than NADA value after TT&L with a 1.99% rate and no co-signer. Not bad for my first purchase...

I never check dates or time stamps, but after the fact I noticed and was pissed so I kept the post up because I took the time to make that long post.

[Emerson1]

Wait... I thought people who went to A&M all made $100,000 a year right out of school? Why are you worrying about financing? Pay cash.

Financing is for us pee ons who went to crappy schools.

[Old Tiger]

Wait... I thought people who went to A&M all made $100,000 a year right out of school? Why are you worrying about financing? Pay cash.

Financing is for us pee ons who went to crappy schools.
To be fair he purchased a Maserati