Post: #1

Hey guys, there seems to be a lot of smart guys around here, so I figured I'd ask, what are some good general tips for buying a car?

I'm planning on buying a car at the end of October or November, I've never done this, I plan on financing something worth around $10,000 I think what I'm going to go for is a used ford fiesta or Honda fit.

I'm wondering if there's ways to get around paying interest, 0 down payment, avoiding hidden fees, getting the price low, and using a shitbox (that runs) as a trade in. I'm fully ready to go in and see past their bullshit and negotiate hard, I just want to know the right coarse to take to make sure I'm not getting raped.

If it makes any difference I live in Massachusetts, any wisdom from you guys is appreciated.

Post: #2

Paging El Mechanico !

Post: #3

I'd be interested in this too.

Post: #4

Ok I need cash budgets. Actual cash you can hand over.

Post: #5

Ditto here.
Can part with up to $8K in cash. Aiming to pay it all in one fell swoop. Looking for a used small pickup, manual. No trade in.

Did a test drive the other day. They had the car sit right out the window while talking price, then once I gave any hesitation...what a coincidence!...it was suddenly moved to a lot out of our field of vision (no wait, I'll take it I'll take it!).
Would like to hear more about slick moves like this.

Post: #6

Would like to part with zero cash but could probably round up 1k. Pretty sure I can make a monthly payment of $150.

Post: #7

Cash and never buy from a dealer.

Post: #8

(09-17-2014 06:42 PM)Barry Scrotada Wrote:  Can part with up to $8K in cash. Aiming to pay it all in one fell swoop. Looking for a used small pickup, manual. No trade in.

84' Toyota Pickup. Called the Hilux everywhere else, in NA just called pickup.
Easy to fix anything and everything on it with simple tools.
Doesn't have any bullshit bells and whistles, can be found for dirt cheap.
Usually ultra reliable.

Post: #9

(09-18-2014 12:11 PM)spokepoker Wrote:  

(09-17-2014 06:42 PM)Barry Scrotada Wrote:  Can part with up to $8K in cash. Aiming to pay it all in one fell swoop. Looking for a used small pickup, manual. No trade in.

84' Toyota Pickup. Called the Hilux everywhere else, in NA just called pickup.
Easy to fix anything and everything on it with simple tools.
Doesn't have any bullshit bells and whistles, can be found for dirt cheap.
Usually ultra reliable.

Then you can put the other $7200 towards a house. That 22R engine does last forever. I want to buy one of those RVs that use a Toyota truck as the base:

http://www.toyotamotorhomes.com/manufacturers.htm

Post: #10

"best"...better. Have cash (I would never finance a depreciating asset, whether woman or car), figure out what you want (some idea), search craigslist, save the searches in your bookmarks (can be on mobile phone or cpu), be patient and wait.

Believe me, if you do this and start contacting people on what look like are good deals, you'll get an understanding of the market really quickly.

You: "Is the Honda Civic still available" (posted earlier that day)
Them: "No, I have a guy bringing cash tonight"

There ya go, you know that was a great deal. Now be patient and wait for another.

Post: #11

When I bought a car last year, I financed 95% of the price at an interest rate of 2%.

If the expected value of your investment of your savings is greater than 2%, then you should probably finance your auto purchase. Then, just automate those payments so you don't knock down your credit score.

You will get a better price in person than online, so visit a few places and get their bottom offer.

Finally, beware of the dealership sneaking in insurance which covers the difference between the amount you owe on the loan and the value of the car if it gets totaled. I saved $700 on a $15000 used car purchase by catching this. The salesman did not disclose it ahead f time: I probably would've screamed at his ass and stormed out but for the fact that I got a sick deal.

Post: #12

Be aware that a real common thing these days is the 0% interest pitch. The real cost of money isn't 0%. This is no different than places that say buy one, get one free. The real cost of the second one is not 0. There are merely different ways of framing the same purchase.

Many of these places with 0% financing will have a cash price that is thousands cheaper. So you can finance at 10k with 0%, or pay cash for $8k. Effectively, the "real" price is 8k, and if you want payments, it's 10k. A paper ran the numbers (globeandmail I think), and basically it works out to like 6-7% effective interest rate vs cash. Hardley a deal.

That said, a car is a depreciating asset. Go cheap, buy some books, maybe an old lawn mower to rebuild (4 stroke would be better for learning about car engines), learn about cars and engines hands on. If you can turn a wrench and have some basic mechanical aptitude, you'd be surprised how much stuff you can do yourself. I've always said when it comes to things like cars, I want to either be saving money on the low side of average, or turning heads on the high. Basically anything between the 5-50k range puts you in 'average'. So why spend 50k when you can get ballpark the same for 5k?

Post: #13

^yes, say you're paying cash and get to a bottom number, then ask about financing offers.