Honda Car Forum

>
> Doesn't it depend on who's offering the best deal?

unless your credit is "tits", you arent going to get a special rate from the
stealer.

ravelation wrote:

>
> roadierogerbugsplat@earthlink.net (Roadie Roger) wrote:
>
>
>>This has nothing to do with Honda
>
> >dealers specifically, but you have to be
> >careful everywhere.
>
> In my search for a Hyndai for my in-laws in Vegas, (I'm in L.A.) Metro
> Hyundai told me there would be $l,800. in fees, not including the sales
> tax! When I asked him to itemize these "fees", the first one was window
> etching for $375. I had to ask him twice if it was required by law. It
> isn't. The cops are doing it for free there. The second charge was for
> 'transportation' from the auction. The salesman had already admitted it
> was a car bought at that dealer and then traded in for the newer style
> Sonata.
>
> Needless to say, I moved on from that transaction and found a nice car
> for thousands less than what that dealer was willing to do.

Private party. Cash.

That's really the only way to get a deal. How you get the money -
that's often as simple as taking out a personal loan at your bank.
Nobody's going to beat that after all the payments and nonsense
is factored that you'd be in for with a car loan.

Another advantage is a loan can be paid back early or in as
much or little as you need - as long as the minimum payment
per month is met. You have X dollars to pay off and the
quicker you do it, the less interest you accrue.

A typical auto loan is fully amortized so that if you win the
lottery and want to pay it off, you still owe the full $30K
on that $24K car. It's basically robbery coming and going.

Yes, it often does mean a $4-$8K used car, but there are many
superb examples to be found out there this way.

Oh - you also don't have to get full coverage on the car if you
use a personal loan or pay cash.

"Roadie Roger" <roadierogerbugsplat@earthlink.net> wrote in message
news:3fc2f65c.0404060959.6093f14f@posting.google.c om...
> Anyone catch the 60 Minutes piece on Dealer Financing? The Finance
> guy can add 1 - 3 percentage points (or more) to your loan and get a
> check (dealer reserve) from the finance company for the extra profit.


A very old and true story. Anyone who cars about their finances should
comparison shop financing just as much as they do the vehicle price.
Better yet, save up your $$$ and pay cash come new car time. I've done that
for many years now and it works.

John

MAT wrote:

> "Gus" <GusPod@optOFFline.XXXX.net> wrote in message
> news:ZeOcc.3303$Po2.975922@news4.srv.hcvlny.cv.net ...

(snip)

>>>So when Chevy was offering the $3500 rebates or $1000 rebate and the
>>>financing of 3.5%... I got both! $3500 and 3.5% But you have to be a
>>>stone faced liar...
>>
>>Fighting fire with fire - kudos to you for negotiating at their level.
>
> I suggest bringing a PDA with a loan calculator program on it when dealing
> with the finance department. When I bought my civic with Honda financing,
> 1.9% promotion, the payment looked high, I calculated the numbers and the
> monthly payment was about 20 dollars high. I asked the finance guy what the
> discrepency was and he said "Oh, that's insurance in case something happens
> when you die so your family wont have to pay for it." I said "No thanks!"
> What a little sneak! I was bitter, this guy tried to stick me with omething
> without my knowledge!

Very good idea - they'll try to put something over on you, boosting your
real cost, until you've signed all the papers & driven off the lot (no
guarantee that's the end, either, there's always the "you didn't qualify
for the lower rate so you have to pay 14% & you can't return the car
because it's a used car now" scam). I caught my dealer fiddling with the
rate (I was pre-approved by Honda Financial, but they don't guarantee a
rate) which would have bumped my monthly payment +$10. Don't yield an
inch - no reason you should, after all "it's your money". I also endured
repeated attempts by the Business Manager to sell me the extended
warranty, to the point where I told her if she brought it up again I was
going to take my certified check for the balance and go home. They
ultimately completed the deal and gave me a 3.64% rate.

BTW, never answer the "how much of a monthly payment can you afford?"
question, never! Talk in terms of the principal amount, the term and the
rate - they determine the monthly payment & there's no CR insurance
hidden in there. Besides, no reason to pay $300/month if you can get the
car for $250/month.

mike wrote:

>>Doesn't it depend on who's offering the best deal?
>
>
> unless your credit is "tits", you arent going to get a special rate from the
> stealer.

"tits"?

Joseph Oberlander wrote:

> ravelation wrote:
>>
>> roadierogerbugsplat@earthlink.net (Roadie Roger) wrote:
>>
>>> This has nothing to do with Honda
>>
>> >dealers specifically, but you have to be
>> >careful everywhere.
>> In my search for a Hyndai for my in-laws in Vegas, (I'm in L.A.) Metro
>> Hyundai told me there would be $l,800. in fees, not including the sales
>> tax! When I asked him to itemize these "fees", the first one was window
>> etching for $375. I had to ask him twice if it was required by law. It
>> isn't. The cops are doing it for free there. The second charge was for
>> 'transportation' from the auction. The salesman had already admitted it
>> was a car bought at that dealer and then traded in for the newer style
>> Sonata.
>>
>> Needless to say, I moved on from that transaction and found a nice car
>> for thousands less than what that dealer was willing to do.
>
> Private party. Cash.
>
> That's really the only way to get a deal. How you get the money -
> that's often as simple as taking out a personal loan at your bank.
> Nobody's going to beat that after all the payments and nonsense
> is factored that you'd be in for with a car loan.
>
> Another advantage is a loan can be paid back early or in as
> much or little as you need - as long as the minimum payment
> per month is met. You have X dollars to pay off and the
> quicker you do it, the less interest you accrue.
>
> A typical auto loan is fully amortized so that if you win the
> lottery and want to pay it off, you still owe the full $30K
> on that $24K car.

No way! Don't ever sign for a loan which has a prepayment penalty.

||1.9% promotion, the payment looked high, I calculated the numbers and the
||monthly payment was about 20 dollars high. I asked the finance guy what the
||discrepency was and he said "Oh, that's insurance in case something happens
||when you die so your family wont have to pay for it." I said "No thanks!"
||What a little sneak! I was bitter, this guy tried to stick me with omething
||without my knowledge!

There is a federal law against requiring credit life insurance.
This practice comes pretty close to stepping over the line.
Rex in Fort Worth

Gus wrote:
>> A typical auto loan is fully amortized so that if you win the
>> lottery and want to pay it off, you still owe the full $30K
>> on that $24K car.
>
>
> No way! Don't ever sign for a loan which has a prepayment penalty.

That's not what I said. What they do is calculate the full interest
into the loan and you make payments on the new total. Other than
a credit union, even the banks do this. There's no point in paying
it off early, either, as the loan is front-loaded so that you are
paying off interest only for the first year or two.

They even do this on home loans 80-90% of the time. It's very hard
to find a simple interest loan anymore other than personal lines
of credit, which is why I recommended it.

Gus wrote:

> BTW, never answer the "how much of a monthly payment can you afford?"
> question, never! Talk in terms of the principal amount, the term and the
> rate - they determine the monthly payment & there's no CR insurance
> hidden in there. Besides, no reason to pay $300/month if you can get the
> car for $250/month.

My favorite quote in this situation is: "If it's $237.82 a month, then
that's what it's going to be."

The monthy payment scheme is the worst scam of all. Show me a balance
and the interest rate. Calculate payments from that.(any decent
calculator or PDA can do this)

MAT <marcoatRM_SPAM@del_spamsnotmail.com> wrote:
> I suggest bringing a PDA with a loan calculator program on it when dealing
> with the finance department. When I bought my civic with Honda financing,
> 1.9% promotion, the payment looked high, I calculated the numbers and the
> monthly payment was about 20 dollars high. I asked the finance guy what the
> discrepency was and he said "Oh, that's insurance in case something happens
> when you die so your family wont have to pay for it." I said "No thanks!"
> What a little sneak! I was bitter, this guy tried to stick me with omething
> without my knowledge!

Was that credit insurance in case you died, or "gap" insurance, to cover
the difference between the loan amount and the value of the car that your
insurance company would pay if you car was stolen or totalled?

A friend had a six month old VW totalled out by a drunk driver. She had
the gap insurance, which cost more than I thought it was worth, I seem to
recall $19 per month. But it paid the $2500 difference between her loan
balance and what her car insurance paid for the car.

I thought about my next door neighbor, with a Mitsubishi, $0 down, $0 per
month for two years. What would the insurance company payoff be if that
car were totalled at 23 months and 50,000 miles, compared to the loan
balance with nothing having been paid toward the original loan.

--
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Clarence A Dold - Hidden Valley (Lake County) CA USA 38.8-122.5