Thinking about getting a new car

ryanjoachim

I've got a total POS right now, that gets me from point A to B...but that's about it. It's too small to hold my kid's car seats, and in the wet months (which is 10 out of 12) I get standing water on the floors.

I have no idea what I should be doing loan-wise to prepare. Should I try going through my bank, or just let the dealership handle all that?

Any other tips or suggestions? This'll be my first new car...

Oh, and by "new" I include the possibility of a "pre-owned" car as well.

exalted512

Hyundai is making some nice cars now...I was seriously looking at the Elantra's for a while, but found a job closer to home...hard to beat 42 mpg and not a hybrid. Sonata's probably a little more family friendly.

Just shop around...even State Farm insurance offers vehicle loans. When I worked there, 9 times out of 10 it was better to take the dealer cash back option and get State Farm's financing than get the 0% and give up the cash back.

Shop around!
-Cody

mdaudioguy

Best to to your own research on a loan first, so that when you inquire about dealer financing, you'll at least know if it's a good deal. Don't tell them you need financing, until you're comfortable with the price they're willing to sell the car for. And if you do happen to mention financing, do not tell them what you want your payment to be. They'll tailor everything to get the most profit at that price point, and in the end, they usually come back with something just a little higher than what you wanted...

AsSiMiLaTeD

I would at least have something lined up with your bank so that you have financing options, you never want to let the dealer hold all the cards. Having said that, if you're buying new you may end up with a better financing deal through the dealer or maker, but its nice to have something else lined up.

Try to do some research before you go in, its really best if you go in already knowing what you're looking for.

The biggest thing though it to approach them from the mindset of 'I don't NEED a car' (even though you do). Let them know you're serious about buying one today but that you'd be perfectly happy walking out the door without one. The perception of need or desperation is critical in negotiating a car price, just like in any other negotiation.

If you walk in with no options (no financing lined up so you have to use theirs and HAVE to get a car that day because your car is busted) and no idea of what you really want, you're much more likely to be taken advantage of.


Added, +1 on setting the price of the car. Most places will want you to tell them what you want your payment to be and then they'll work with that, but I never go that route. My credit's good enough I can get whatever I want, so I always make them deal directly only on the price of the vehicle, we'll work out the financing after I've found a car with the options and price I want.

mdaudioguy

exalted512 wrote: »

Hyundai is making some nice cars now...I was seriously looking at the Elantra's for a while, but found a job closer to home...hard to beat 42 mpg and not a hybrid. Sonata's probably a little more family friendly.

My Toyota dealer has been making offers to buy back our 6-month old Camry, due to low inventories of new vehicles because of the earthquake. This is also driving up the prices of used models, too. I'd be very willing to consider a Hyundai today. I also saw a recent article that mentioned that their inventory is rather tight, but mainly due to high demand for their vehicles.

codyc1ark

exalted512 wrote: »

Hyundai is making some nice cars now...I was seriously looking at the Elantra's for a while, but found a job closer to home...hard to beat 42 mpg and not a hybrid. Sonata's probably a little more family friendly.

+1 to that, I believe they are also offering a 10 year/100,000 powertrain warranty, which you can't beat. Hyundai aren't the cars they we're ten or even five years ago, so don't let the name scare you away.

Oops - Forgot this; I've been rolling a 2011 Ford Fusion and have put about 2,500 miles on it so far, I did have a 2008 Chevrolet Malibu Classic, I love the Fusion vs. the Malibu, but miss the V6 power, I'm getting worse milage out of the I4, but that's due to the ammount of driving I do up mountains, I assume. The Fusion offers sat radio, bluetooth phone connection (love that), and a host of other options, quiet ride, and great handling. Good luck.

steveinaz

ah hell, first he gets a new chick---now he wants a new car. Please tell me it won't be a red Z28? :biggrin:

Jstas

Used car prices are ovely inflated because of all the credit problems and nobody can secure financing. Don't buy used. Either tough it out until the market comes back to sanity or buy new.

Stay away from Asian cars right now. Honda, Toyota (poo anyway), Nissan and Mazda are all having supply problems because of teh Earthquakes so they are in no rush to move new product. You'll pay out the nose with them too.

The American companies and the European companies are scrambling for market share right now too so they want to move product, never mind the price. People are rolling off of Ford lots with 2011 Focuses for less than a used 2009 model. Similar deals can be had at Volkswagen, Audi, Chrysler, and virtually all GM brands but Cadillac.

If you have good credit, a small pile of cash and a fuel efficient trade in in any condition, you should be looking to buy new right now. The market is absolutely ripe.

ryanjoachim

Jstas wrote: »

Used car prices are ovely inflated because of all the credit problems and nobody can secure financing. Don't buy used. Either tough it out until the market comes back to sanity or buy new.

Stay away from Asian cars right now. Honda, Toyota (poo anyway), Nissan and Mazda are all having supply problems because of teh Earthquakes so they are in no rush to move new product. You'll pay out the nose with them too.

The American companies and the European companies are scrambling for market share right now too so they want to move product, never mind the price. People are rolling off of Ford lots with 2011 Focuses for less than a used 2009 model. Similar deals can be had at Volkswagen, Audi, Chrysler, and virtually all GM brands but Cadillac.

If you have good credit, a small pile of cash and a fuel efficient trade in in any condition, you should be looking to buy new right now. The market is absolutely ripe.

I have fairly bad credit unfortunately, and no money for a down payment. I'm looking at a new car as both a means of transportation and a means to begin improving my credit rating, along with a small credit card I have.

I really like the look of the new Hyundai's, as well as the low base-msrp, but I'm more than willing to look at what everyone has to offer before choosing.

ryanjoachim

steveinaz wrote: »

ah hell, first he gets a new chick---now he wants a new car. Please tell me it won't be a red Z28? :biggrin:

If anything, I'd be buying a big-**** red truck lol.

mdaudioguy

ryanjoachim wrote: »

I have fairly bad credit unfortunately, and no money for a down payment. I'm looking at a new car as both a means of transportation and a means to begin improving my credit rating, along with a small credit card I have.

I really like the look of the new Hyundai's, as well as the low base-msrp, but I'm more than willing to look at what everyone has to offer before choosing.

Kia and Suzuki aren't looking too shabby, either, as well as some of the smaller domestics, as Jstas mentioned. Although Suzuki has been getting some good press as of late, I'm not sure I'd be ready to tell everyone that I drive a Kizashi. But that's just me...
Not a bad looker, though:

dragon1952

ryanjoachim wrote: »

I've got a total POS right now, that gets me from point A to B...but that's about it. It's too small to hold my kid's car seats, and in the wet months (which is 10 out of 12) I get standing water on the floors.

I have no idea what I should be doing loan-wise to prepare. Should I try going through my bank, or just let the dealership handle all that?

Any other tips or suggestions? This'll be my first new car...

Oh, and by "new" I include the possibility of a "pre-owned" car as well.

What....you mean we have DRY months here

obieone

Not to pee in your cornflakes, but I'd make an appointment with your banks loan officer, and have him tell you REALISTICALLY what you can expect, based on your credit. (Also ask him/ her about any of your states' lemon-laws.)
Take that figure, and start shopping around online. Cars.com, Autohunter, etc.
And look at the owner reviews listed for that particular model/ year.
Good luck

Slaine777

You might also consider a VW with a TDI engine. They get hybrid mileage. They use diesel, which around me is about 25 cents more per gallon, but diesel prices are much more stable and your mileage will offset the price.
I drive a Toyota, but as mentioned earlier, anything Japanese you will pay a premium for because of supply problems.

Danny Tse

So you have a kid and you live in OR?

I think you should consider a Subaru. Very safe cars and AWD. Of course, not as fuel efficient as similar vehicles from other makes, but with a kid, I'd put safety as top priority.

jmwest1970

Captial One has a good program for the credit challenged. I used them a few years back for a car loan to help with mine and things are peachy now. They're not going to give you a low interest rate, but they will most likely get you financed into something you like.

strider

I'm surprised to see so many nods towards Hyundai. Not because they don't deserve them, though. Tough combination of fuel economy, warranty, and price to beat. Something to be aware of regarding the warranty: unless you are the original owner the powertrain and the bumper to bumper warranties both top out at 5 years/60k miles. The Hyundai certified used car program does bump the powertrain to 10/100k though.

Also agree with the others, get your financing options lined up before you go in. Most of the new car deals I get to see the back end of the dealer makes very little or even takes a loss on the sale of a new car. They make their money on finance, aftermarket sales, and factory incentives. This doesn't hold true for the popular new models that are hard to get, however. They've been "adjusting market value" on the new body style Elantra and the more popular models of Sonata by adding $1500 to the MSRP of them where I work! Don't tell them what you want your payments to be, either.

Oh, if your current car has a sunroof, check to see if the drains are clogged by opening the roof back all the way and pouring a cup of water in the metal tray that holds the 'roof mechanism. 50/50 shot that they are clogged and allowing water to back up and get into the interior, esp if your car has some years under it's belt and/or you park under trees frequently.

rooftop59

I roll in a 2006 Sonata with one in a car seat and it is great. Plenty of trunk space, room for the kiddo and another to comfortably sit in the back. Safe and decently fuel efficient.

As for the credit/loan situation, I am not a financial planner but I would not recommend getting a loan with bad credit to built credit. You are going to get screwed on the interest rate, the subsequent payments will be really high, and then if you get in a situation where you can no longer make the payments your credit gets worse not better.

I would suggest the Dave Ramsey route if at all possible. Save as much cash as you can for 6-12 months and then buy what you can with that cash. If you HAVE to have a care now due to safety concerns with your kid (which I completely understand) then take out a small loan from a credit union if you can (the rates are often better) and buy a solid older camry or accord. My friends camry is over 15 years old, safe, fuel efficient, and still runs like a champ. could probably be had for a few grand.

Again, I am nobody so take it with a grain of salt. Good luck!

AsSiMiLaTeD

The problem with not getting something on credit right now is that he's not attacking the problem, he's avoiding it.

I'd say the two components are 'repairing' your credit (so to me that means paying off old debts and such) and 're-building' your credit (that means doing something to establish good credit again, getting a credit card or a car note are the only ways I know of doing this). I believe both are important in you're in a bad credit situation.

You're gonna take a hit on the interest rate, but just factor that as the cost of having bad credit to begin with and deal with it - I had to do the same thing when I was largely in debt before my second year of college, took me years to recover from that but it was worth the effort in the long run.

Also, make sure you actually look at your credit, it may not be as bad as you think. My friend just got reasonably good financing on a new car with a credit score in the low 600 range...

exalted512

AsSiMiLaTeD wrote: »

The problem with not getting something on credit right now is that he's not attacking the problem, he's avoiding it.

Exactly. Its still a great idea to save up and put a large down payment and then try to pay it off in a year if at all possible. Installment payments are a great way to build credit...even if you are paying a high interest rate.

A buddy of mine bought a car for $18k cash. When he wanted to finance a $50k truck, he couldn't. He was 25 but since he had paid cash on his first car, he couldnt get the loan because he had no prior installment payment history.

-Cody

aviator

I've got excellent credit, I've always had excellent credit.

That said -- I wish I'd never had any credit to begin with. When I think about all the interest I've paid in my lifetime and how much better that money would look invested instead of gone makes me sick.

Wish Dave Ramsey had been around 40 years ago.

mhardy6647

FWIW I like my "new" (purchased in August 2010; about 12,500 miles on it now) Fiesta 5-speed (manual) hatchback. Cheap, fun to drive, and very economical (running average gas mileage is 40.2 mpg as I type this). The Mazda 2 seems to be quite similar.




I ordered it with goofy junk like Sync, auto-dimming rearview mirror, heated seats, and "mood lighting" :-) and it was still well under $20k.


The new Hyundais are surprisingly nice (and nice looking, too), as mentioned earlier.

jhw59

the few dollars I spent on the Consumer Reports pricing info meant I knew approximately what the dealer paid for the car and option packages. Knowing about what you want to pay for a particular model before you go onto the dealership will save you money. Also, in general, dealers have sales quotas to meet for most cars. So time it to shop near the end of their monthly quota period. Do your research and it will pay off.

cnh

I agree with the Hyundai. I used to own one and it did the job..pretty low repair costs, good mileage! I've also heard 'good' things about the new smaller Fords. But I always 'hesitate' with them because I used to own a Lynx (Escort) that was pretty much garbage. So every time I hear Ford is making a 'come back' I have to doubt them, just a little.

But I do have a friend who just bought a '11 Focus and have driven in it. Seems OK for now! Only 'time' will tell.

Can somebody tell me why there is NOT a National Data-base on 'repairs' on all model cars by year and maker? Because when a new model comes out it gets touted and 5 years later we realize that it's had a half-dozen recalls, has faulty parts and interesting failures? Yet car Mags give those cars....Car of the Year awards. lol

How about a 'reality' check. I had this experience with my Chevy Impala. Assembled at the 'premier' GM plant in North America. Supposedly reliable when it first appeared. But by about 4-5 years Edmunds started to list ALL the problems this vehicle has. They WERE NOT there in the first year or two when everyone was crowing about this model!

In any case. Don't let the dealer provide financing unless you have a back-up offer. Because most dealerships make a 'bundle' on in-house financing--usually, that is!

Bad credit. Yeah, that will hurt you. These days, we don't buy a car unless we can pay it off in 3 months or less? No loans for us...no interest...no banks making money!

Hyundai, or maybe? the Ford?

cnh

Jstas

mhardy6647 wrote: »

FWIW I like my "new" (purchased in August 2010; about 12,500 miles on it now) Fiesta 5-speed (manual) hatchback. Cheap, fun to drive, and very economical (running average gas mileage is 40.2 mpg as I type this). The Mazda 2 seems to be quite similar.

They are similar. They are pretty much the same car. The Fiesta is equipped better though. Nicer interior materials, more options and a ballsier engine. The Mazda has a stiffer, sportier suspension though and some reviews have said it's harsh.

cnh wrote: »

I agree with the Hyundai. I used to own one and it did the job..pretty low repair costs, good mileage! I've also heard 'good' things about the new smaller Fords. But I always 'hesitate' with them because I used to own a Lynx (Escort) that was pretty much garbage. So every time I hear Ford is making a 'come back' I have to doubt them, just a little.

What do you mean "making"? They already have. Their sales figures are exceeding their peaks from the last 10 years. Stock price has been steady with consistent growth and their market share grows every quarter. Are they where they were at their peak? No, not yet but if they keep going the way they are, it's a matter of time.

Get your head out of the sand and stop living in 1985.

cnh wrote: »

Can somebody tell me why there is NOT a National Data-base on 'repairs' on all model cars by year and maker? Because when a new model comes out it gets touted and 5 years later we realize that it's had a half-dozen recalls, has faulty parts and interesting failures? Yet car Mags give those cars....Car of the Year awards. lol

Yeah, I know! How stupid can they get? LOL! :rolleyes:

Recalls usually mean they found a problem and they are going to fix it. Things slip through. Honestly, I'd rather have a company issue the recall, fix the problem and take it's lumps for being human and making mistakes than have them cover up and outright lie to the authorities like some companies that have been in the news in recent years.

cnh wrote: »

How about a 'reality' check. I had this experience with my Chevy Impala. Assembled at the 'premier' GM plant in North America. Supposedly reliable when it first appeared. But by about 4-5 years Edmunds started to list ALL the problems this vehicle has. They WERE NOT there in the first year or two when everyone was crowing about this model!

That's your reality check yet this is your "suggestion"?

cnh wrote: »

Hyundai, or maybe? the Ford?

cnh

So you want to trash Ford and Chevy for a vehicle that is 20+ years old and a vehicle that is 5-10 years old respectively but you'll recommend a car company that was making such garbage as little as 5 years ago that they STILL have to mention how much they've changed in their ads just to get people to walk in to a dealer? You don't make any sense.

And why do you make statements in the form of a question by sticking question marks at the end of every statement? This isn't Jeopardy? (See what I did there? That question mark turns a sarcastic statement in to a silly question that disregards the obvious.)

cnh

Ok, John

I take away the question marks (they're just a hedge anyway).

As far as Fords, I like what I am seeing 'recently'. Thought my friend's Focus was pretty much on par with the Japanese giants.

Hyundai, I have a lot more experience with. I was one of the very first people to buy an Excel which ran and ran till it rusted out up North. Others I know have had good luck with their more recent models.

Here's one for you. I noticed in the mid-80s when I had my Ford that European versions of the Escort model, seemed 'far' superior in manufacture and reliability. People in Europe who I knew swore by them. You probably know more about this than I. I've always assumed that these models were made in Europe for that market and were, in fact superior to what Ford produced for the U.S. market. Your thoughts.

cnh

madmax

After owning a Japanese car for the first time (bought in 2006) I doubt I'll look much at American made any more, they are not worth the hassle.

byfthalone

I've had my Hyundai Sonata for just about a year now and really love the car...lots of amenities included for little money (IMO)

bobman1235

Call me a **** all you want, but I literally could not be happier with my Subaru. (well, i suppose if it ran on road rage instaed of gasoline, maybe i'd be happier, but realistically).

mhardy6647

bobman1235 wrote: »

Call me a **** all you want, but I literally could not be happier with my Subaru. (well, i suppose if it ran on road rage instaed of gasoline, maybe i'd be happier, but realistically).

Looks great in the garage next to the Miata, doesn't it?

I keed, I keed :-)

Joe08867

I would suggest VW (They have gotten a ton more reliable in the last couple years), The new Jetta is 15-16k in the base model and way bigger than any of the entry level cars from other car companies. The 2.0 is a bit weak as far as engines go but that is the same motor I have in my Golf which has 296,000 miles on it.

Hyundai (Lots of car for the money).

Mazda 2 or a Ford Fiesta (I have driven both and yes the Mazda is stiffer but the price also shows a difference, that said I would get the Fiesta.

Chevy has the Cruze which is supposed to be a good car also but the price jumps up.