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Question for buying a car...

D

DPK

Senior member
I went to a car dealership with my dad this weekend to help him buy a used car. The add for a 2004 Cheyy Cavalier was $9000 and the car has 28-29000 miles on it. Before sending information off to the banks the salesman offered my dad a 60 month payment plan at 219 per month, which comes out to about 13,000. Now I have no exerience with financing a car, but this rate seemed a bit high compared to the advertised price. Is it pretty normal to overpay that much when financing a used car? Also, they offered it BEFORE sending info to the banks to see what kind of interest rate was offered and it was later on Saturday so they are calling my dad back today.
 
Originally posted by: DPK
I went to a car dealership with my dad this weekend to help him buy a used car. The add for a 2004 Cheyy Cavalier was $9000 and the car has 28-29000 miles on it. Before sending information off to the banks the salesman offered my dad a 60 month payment plan at 219 per month, which comes out to about 13,000. Now I have no exerience with financing a car, but this rate seemed a bit high compared to the advertised price. Is it pretty normal to overpay that much when financing a used car? Also, they offered it BEFORE sending info to the banks to see what kind of interest rate was offered and it was later on Saturday so they are calling my dad back today.
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It's perfectly normal for them to do this sight unseen. They're selling you on the highest risk/highest cost loan they can. Get an approved loan from a local credit union, then go car shopping.

 
If your Dad buys that car the dealership is going to make $5-6k off him. I'm sure they gave the guy who traded that hunk of crap in a low trade in value, maybe $6500 (assuming it is an LS sedan with auto trans). Add in the dealer financing and your Dad is getting ass raped.
 
Originally posted by: Budmantom
16% interest rate
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$9000 at 16% interest over 60 months should be about $219 a month. If he has good credit, your dad should be able to get 7% easilly for a used car. That would be ~$179 a month for 60 months (~$10750 total). Basically, that is a horrible number.

And I agree with what was said above. If you need a car loan for more than 3 years, especially a used car, you cannot afford that car!
 
Originally posted by: Papagayo
Buying cars sucks.. good luck..
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UMMM NO!

How doesn't like buying a car? Granted, it is a bit stressful at times, but you should thank someone for being able to drop at least a few thousand dollars.
 
I'm sorry your dad doesn't have money in the bank to pay for a nice cheap used car in full found in the classified section, and have to choose the getting rape by sleazy car dealership route.
 
Originally posted by: Thera
Originally posted by: DPK
I went to a car dealership with my dad this weekend to help him buy a used car. The add for a 2004 Cheyy Cavalier was $9000 and the car has 28-29000 miles on it. Before sending information off to the banks the salesman offered my dad a 60 month payment plan at 219 per month, which comes out to about 13,000. Now I have no exerience with financing a car, but this rate seemed a bit high compared to the advertised price. Is it pretty normal to overpay that much when financing a used car? Also, they offered it BEFORE sending info to the banks to see what kind of interest rate was offered and it was later on Saturday so they are calling my dad back today.
Click to expand...

It's perfectly normal for them to do this sight unseen. They're selling you on the highest risk/highest cost loan they can. Get an approved loan from a local credit union, then go car shopping.
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Cavaliers suck, if he needs a car like that he should get a Civic.

Also, he should try and get pre-approved at a local credit union. He needs to know what his credit looks like.
 
Originally posted by: Baked
I'm sorry your dad doesn't have money in the bank to pay for a nice cheap used car in full found in the classified section, and have to choose the getting rape by sleazy car dealership route.
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Sadly, if he'd just go to a bank/credit union he could not get ass raped on this car. If he's that low on funds he has no business buying a car that expensive anyway.

In fact I have to make a second post just to say how sh*ty that car it. What a pile of CRAP.

 
Get pre-approved for a loan through your credit union and buy a used Civic from someone in the classifieds.

 
Originally posted by: CRXican
Cavaliers suck, if he needs a car like that he should get a Civic.

Also, he should try and get pre-approved at a local credit union. He needs to know what his credit looks like.
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Even get a pre-owned Mazda Protege.
 
How do you calculate the interest rate for 60 months when you know the monthly payment and the total car cost?
 
Originally posted by: DPK
How do you calculate the interest rate for 60 months when you know the monthly payment and the total car cost?
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You're going about it backwards because YOU DO NOT CHOOSE THE RATE, they choose it for you based on the amount, collateral, your credit and debt/income ratio.

Use an auto loan calculator
 
Originally posted by: CRXican
Originally posted by: DougK62
Get pre-approved for a loan through your credit union and buy a used Civic from someone in the classifieds.
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Is there an echo in here?
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Get pre-approved for a loan through your credit union and buy a used Civic from someone in the classifieds.
 
I'm confused... If the loan bank chooses the rate for you, then how can the dealership quote a monthly payment before they know the rate?
 
Originally posted by: DPK
I'm confused... If the loan bank chooses the rate for you, then how can the dealership quote a monthly payment before they know the rate?
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Because first you APPLY then either get APPROVED or DENIED credit.

If you are APPROVED, the dealer receives a list of OFFERS with INTEREST RATES listed.
 
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