Advice on financing first S2000 please..
07-22-2015, 09:09 PM
#21
Join Date: May 2006
Location: Central Virginia
Posts: 65
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Now that's no way to look at it.
Have some faith in yourself...and your future self!
Even if I had saved it all up I would rather finance it and have a cushion laying around for maintenance and repairs.
The interest that you save by paying cash will almost certainly cover a good portion (if not all) of any repair costs, especially with a car as reliable as the S2000. Maintenance is unavoidable, you will always have to replace tires, change fluids, brakes, etc.
My car buying recommendations:
- Always negotiate on the price of the car before talking payment terms.
- NEVER negotiate based on a monthly payment amount. Know the terms of the loan. Multiply the payment by number of months (plus your down payment) and it will show you how much in interest you are paying ABOVE the total cost of the car. It sinks in better this way. Especially for people with less than desirable credit scores, dealers want to get you to name a monthly payment you're comfortable with and in order to meet it they will give you a high interest rate and/or a long term. You could pay thousands more in interest than you would with a moderately higher monthly payment.
- Try to save up and pay cash. If you can't manage it, at least save up a good down payment.
- If you must finance, get a loan pre-approved beforehand. As others have mentioned, a credit union is preferable to a bank.
- Don't pay (in whole or in part) with a credit card. Especially if you have a lower credit rating (and likely a very high credit card interest rate). Dealers generally don't like it either, since they have to pay the processing fee to the credit card companies.
- If you have a trade-in, don't mention it until you've agreed on a price for the car you are buying. Have it thoroughly detailed beforehand, it'll probably get you a few hundred dollars more. Consider selling via private party if you aren't happy with what the dealer offers.
- Avoid falling in love with a car or waiting to buy until you desperately need one. Don't show your emotions - the dealer will use this to their advantage. You're the prospective buyer, you should be the one in charge. Always be prepared to walk, taking your business elsewhere is your #1 negotiation tool.
- Don't buy the extended warranty. The dealer will come out ahead 9 out of 10 times, and they know it. Maybe even better, considering the reliability of the S2000.
07-23-2015, 05:58 AM
#22
Registered User
I'll also add that the numerous credit checks that are being ran while you're shopping for a loan are hurting your already sketchy credit.
There's always one buzkill in the group, and I guess I'm it; given your iffy financial past, is financing a car a good idea (a sports car, at that)?
There's always one buzkill in the group, and I guess I'm it; given your iffy financial past, is financing a car a good idea (a sports car, at that)?
07-23-2015, 07:28 AM
#23
Registered User
Talk to a credit union. I have financed 2 cars and a home through the same large bank, and when I went to them to buy my 01 S2000 last year, paying blue book price, but only financing 2/3 of that, they straight up said no, because the car was too old. They said they would give me a personal loan for credit card rates or put it on my mortgage ... I walked out, called a local credit union. That day I had a new account set up and the loan was ready the next day. Better interest rates than car loans at the big bank, MUCH better customer service. They did of course tell me I could finance more rather than putting down some cash, but I paid the cash down anyways. I still have my mortgage and checking with the big bank, but my savings goes in the credit union.
I ended up only being able to finance the Nada value of it and I had to come up with cash for the rest.
07-23-2015, 07:43 AM
#24
+1 again on credit union. That entire post sounds exactly like my situation, except my credit score was significantly worse.
The Honda dealership where I just got my ap2 were real stubborn on working with me. I worked with them as much as I could, financed the car through them, and after talking to my bank and insurance agent, will be refinancing through my credit union.
The Honda dealership where I just got my ap2 were real stubborn on working with me. I worked with them as much as I could, financed the car through them, and after talking to my bank and insurance agent, will be refinancing through my credit union.
07-24-2015, 10:39 AM
#26
In the meantime, figure out about how much your car payment will be and start putting that amount into a savings account each month. That will get you "trained" to live without that money and also start helping you save for a downpayment. That way once the day comes, you wont be out any more money each month than you are then accustomed to living without.
07-24-2015, 08:06 PM
#28
as a general rule of thumb, if you are purchasing the car from a dealership, you can usually get the car for about 3k less than the list price. when I was shopping, I found one listed at 22, I offered 18, they countered 19. the one I bought was listed at 25k, I offered 21, walked out the door at 21,800.
07-24-2015, 08:06 PM
#29
In the meantime, figure out about how much your car payment will be and start putting that amount into a savings account each month. That will get you "trained" to live without that money and also start helping you save for a downpayment. That way once the day comes, you wont be out any more money each month than you are then accustomed to living without.
