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New VS Used car financing

Discussion in 'Members' Lounge' started by nootrac22, Oct 19, 2007.

  1. nootrac22

    nootrac22 Well-Known Member VIP

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    To get right to the point, I'm concedering getting a new car. I want to keep monthly payments as low as possible. I have a project car to work on, and to be honest am getting tired of working on daily driver. So I am concedering getting a brand new car (right now yaris or fit). Just wondering if it pays to go brand new, keeping in mind i will be financing all of it, or get a car a couple years older (cheaper) with the possibility of taking on someone elses headache.
     
  2. Bob Vila

    Bob Vila ɐןıʌ qoq Admin VIP

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    Concede = To give up
    Consider = Thinking about it

    Brand new = loss of value immediately
    Used Car w/warranty = FTW.
     
  3. nootrac22

    nootrac22 Well-Known Member VIP

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    sorry bout the spelling I suck at it and can't get the spellchecker at work (firewall). I thought that the loan rates were better buying used. Are they better enough to make up the diffrence?
     
  4. Bob Vila

    Bob Vila ɐןıʌ qoq Admin VIP

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    you should just pay cash. And your loan rates are completely dependant on a few things: 1)offers/incentives from the manufacturer and 2)your credit history
     
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  5. nootrac22

    nootrac22 Well-Known Member VIP

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    single dad = no cash, i have to finance unless I pick up a beater for $1500, and that's the situation I'm trying to get out of.
     
  6. pissedoffsol

    pissedoffsol RETIRED

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    generally, new cars will have a better interest rate.
     
  7. nootrac22

    nootrac22 Well-Known Member VIP

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    is the diffrence enough to make up the instant depreciation in buying new?


    BTW 72mo finance
     
  8. pissedoffsol

    pissedoffsol RETIRED

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    nothing makes that up.

    you can probably score 0-4% on a new car, where as you'll be tough luck to get under 8% on used.
     
  9. TeinGirl

    TeinGirl Senior Member

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    If you buy new I suggest that you:
    A)do research & check out incentatives/rebates that they offer for that vehicle.

    B)Buy towards the end of the month (dealers are just trying to push units then & arent so worried about the gross that they are making)

    C)Dont buy an extended warranty within the deal (you dont want to finance your warranty as well, so use part of the $1500 that you have to pay for it up front if you decided to get one)

    D)Be pretty firm with the payment that you are wanting to be in as long as its realistic.

    E)Make sure that once they present to you a 4square (all the numbers&options) you configure it all back up and all the numbers equal out.


    Hmmm... thats all that I can think of off the top of my head...
    Just be aware of what you are buying
     
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  10. klyph

    klyph Dismember VIP

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    Slightly Used FTW. Your interest will be higher but your monthly payments will be lower because you paid less. And you will lose less money due to depreciation. Get something 2-3 yrs old with less than 60K on it.
     
  11. reckedracing

    reckedracing TTIWWOP VIP

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    compare interest rates
    dealerships "sell" loans, they usually try to shoot for a couple points over what you should be gettting
    shop around with banks and credit unions
     
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  12. klyph

    klyph Dismember VIP

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    Yeah, ask which banks give higher rates and which banks give lower rates, then get a quote from each bank starting with the higher ones, working down to the lower ones. Everytime you ask for a rate, show them the one you just got and ask if they can beat it. By the time your done, you'll know for sure you got the lowest rate possible.
     
  13. Jeef

    Jeef NO MA'AM Moderator VIP

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    SOmetimes you can get new car rates on used cars if its like a year or two old. Like recked said shop around for your loan. On the 4 new car loans I have had in the last 4 years (yeah I trade my trucks in too much, 1 was totalled) I got the loan through the dealer twice. One was from AAA and the other a local credit union. If you know someone in finance or sales at a dealership they will know or can find out who has the best rates available.
     
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  14. E_SolSi

    E_SolSi Member of the 20 nut club Moderator VIP

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    fuck buying new
     
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  15. Jeef

    Jeef NO MA'AM Moderator VIP

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    I have never really lost that much by buying new. Maybe I have been lucky. I actually made over 4 grand when my 04 Silverado got totaled. It had 16k on it and I got a check for 4k more than I paid for it. Infact m,y 06 is worth 1200 (private value) more than I paid for it a year and 12k miles on it later.
     
  16. klyph

    klyph Dismember VIP

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    Yeah, I'd say you're part of a very small minority. Like Samoan Norwegians or somethin.
     
  17. Jeef

    Jeef NO MA'AM Moderator VIP

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    Getting the employee discount helps with this, but not much. Whats helping me now is the fact that the new Silverados are ugly as fuck so mine being the last body style its still has some demand.
     
  18. nootrac22

    nootrac22 Well-Known Member VIP

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    thanks to everyone for the great info. It gave me a lot of things to concider. Back to the drawing board to come up with a better plan. Top priorities for the car are cheap, reliable, mpg and within a reasonable driving distance
     
  19. jamesA

    jamesA Well known pissed off telephone guy VIP

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    But when it comes down to it, you'll finance 3-5k (or more) at 4% than you would at that 8% on a used car, so it may work out the same on the payments over the life of the loan.

    New with a full manufacturers warranty > used with a used car lot 1 year warranty on someone elses old problems.
     
  20. phyregod

    phyregod !!YTINASNI

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    Screw financing. Pay Cash.
     
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