Someone school me on the car buying / bank loan process etc

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Someone school me on the car buying / bank loan process etc

Post by glasswars » Tue Dec 19, 2006 6:33 pm

Disclaimer: A lot of these questions may be dumb but I am truthfully completely clueless when it comes to this kind of stuff. If you wish to flame me do it via PM and I think this can be a good place for anyone to learn about this stuff.

My parents bought me my car as a present so I don't have any experience or anything. I told them I want a new car and they said fine but as long as I pay for everything. They don't understand why I want another car anyway.

So basically.. I want an srt-4. There is a beautiful one sitting at a dealer in New York City for 15,500$ with 21,000 miles and it's only mods are coilovers, tints, eyelids, and HID's. Flame red.

Now, what do I do? Go to the dealer than what? See this is what I mean, I am completely oblivious to this stuff. What should I look out for? Should I forget about buying from a dealer and buy from a private seller? How do I get the loan for it?

My ultimate plan would to be fix up my neon and everything that's wrong with it and sell it for like 4K. Then buy an srt.

Sorry for being dumb guys, but please help me, I don't think this car is gonna be on the market for too long.
Last edited by glasswars on Tue Dec 19, 2006 6:45 pm, edited 1 time in total.
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Post by Mr Josh Zombie » Tue Dec 19, 2006 6:40 pm

I'll post up tomorrow while I'm at work for ya. To lazy to do it right now.
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Post by glasswars » Tue Dec 19, 2006 6:44 pm

Thank you. :)
This is what I'm hoping to own:
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Post by CrashTeam » Tue Dec 19, 2006 6:46 pm

Go into the Dealer, Talk to them about the car and How low you can get them price wise. Once you have agreed on the lowest price they will take for the SRT, Find out how much they will give you on a trade, More then likely not allot. Now comes the choice, If you like the dealer and feel that they wont scam you, you could seek financing with them, However I would strongly advise going to a bank you are familiar with and talking to the Loan Department. They will use there NADA codes to look up the real value or both your Neon and the SRT in question. This may give you a extra boost in negotiations with the dealer. If the price is fair, Ask if the bank is willing to approve you for a loan, Odds are that you will need a co-signer for that much money, that is unless you have already built substantial credit.

Buying from a dealer is good because you have the ability to fall back on them for a short time should anything fall apart on the car. A private seller will just tell you to Foff.
When looking at the car, Drive it all over the place, flog the shit out of it, and make sure you take it slightly above highway speeds. This will ensure that anything already wrong with the car will more then likely make itself apparent. Look for any paint defects and don't hesitate to ask the dealer to fix anything you find wrong before you decide to sign papers.

At a average interest rate for a 15,000 dollar car with little down you are more then likely looking at around $300 or so a month payments.

Oh and don't waste time on extended warrenties or anything extra the dealer wants to add in.

Good luck and I hope you get an SRT.

PS Make sure that the SRT doesn't have a boost leak, Lots of 05's left the factory with that and it makes the car feel less then fast.
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Post by WiTeOuT » Tue Dec 19, 2006 6:54 pm

Also, it is the end of the month... and the end of the year. With those 2 things in mind dealers are more likely to lower prices to meet quota. Good luck buddy.

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Post by glasswars » Tue Dec 19, 2006 6:59 pm

Thank you guys for the quick responses. Am I allowed to put as much money down as I want?
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Post by sphipps70 » Tue Dec 19, 2006 7:28 pm

glasswars wrote: Am I allowed to put as much money down as I want?
The more you put down the less your monthly payments will be. So yes you can put down as much as you want.
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Post by J-Villa » Tue Dec 19, 2006 8:44 pm

my advice....don't get into a car payment until you have to...just my opinion...if you have a car paid off and your 18...i would just stick with that for now....save up like 5 grand and drop it on like a 12k car and pay like 150 a month for a shorter loan
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Post by glasswars » Tue Dec 19, 2006 9:09 pm

J-Villa wrote:my advice....don't get into a car payment until you have to...just my opinion...if you have a car paid off and your 18...i would just stick with that for now....save up like 5 grand and drop it on like a 12k car and pay like 150 a month for a shorter loan
Exactly how I feel..
but I need powerrrrrrrrrrrrrr.
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Post by J-Villa » Tue Dec 19, 2006 9:11 pm

do all the bolt ons....
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Post by glasswars » Tue Dec 19, 2006 9:21 pm

Even with full boltons i wouldn't remotely hang with a srt.
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Post by MoxHair » Tue Dec 19, 2006 9:35 pm

glasswars wrote:Even with full boltons i wouldn't remotely hang with a srt.
about 20 lengths.. but I guess that is remote. :lol: :laughing1:
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Post by neonpla » Tue Dec 19, 2006 9:50 pm

and your car is and atx, so honestly dont even waste your money on bolts on... ever think of srt swap.
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Post by glasswars » Tue Dec 19, 2006 10:00 pm

^^no skill/knowledge.
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Post by MyNeonSaysHi » Wed Dec 20, 2006 12:27 am

Ahhh great thread, I have been learning a bunch of stuff about the whole process. Heres a good website I found. http://www.carbuyingtips.com You will find really good info..

Make sure you can afford ATLEAST 20% down. Don't trade your car in at the stealership
Listen to CrashTeam he used to work at a dealership.. VERY good info on his part IMO. DO NOT tell them you have a trade in.
Sell your car privately and you will get alot more, might take more time though.
Be patient!
Save your money for a HUGE down payment
Use the money you sold your car with as a down payment.
Tell them you are looking to buy it with CASH.
Have your blank check ready that you got for your auto finance loan.
Hopefully you have good credit and make atleast 1600 a month for good interest rates. Be a very good idea to get a co-signer from your parents for a loan, you will have a lower APR rate.
Find out what full coverage insurance will be on your soon to be SRT-4. :wink: Unless you have enough money to completely buy it off without a loan. Then go liability. (cheaper but not a good idea with a SRT-4)
Make sure you can afford it... With all the other stuff you have... cell phone, internet, gas, food etc...


Just a few random things I have learned... ^^ I also got 2 books from this place called "foozles" that is going out of business, has a bunch of good info on buying new and used cars..
Remember, patience is the key, you don't NEED this car. There will always be nice SRT-4's on the east coast. :lol: Good luck and keep me and the others updated, cause I am curious on how this unfolds too...
I am also in the same boat... I WILL have a SRT-4 next year if everything turns out right...

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Ok

Post by sxt42uner06 » Wed Dec 20, 2006 1:28 am

OK I can help when i worked at Wright and had nothing to do i sat and used to watch deals go down

1 There is no such thing as a quota, they dont sell cars any cheaper at the end of the month/year they know how low they can go on every car they have on the lot and wont go any lower.

2 Your 18, getting you financed through DCX wont happen, youll need a parent to co-sign or sign completly.

3 Your payments will be ALOT for an 18 year old belive me my 160 a month plus insurance is alot for me, plus your gonna get boned on insurance now.

4 If your still really thinkin about buyin this do some reasearch on this exact car, One of the best things you can do is find out exactly what they gave who ever traded this car, Best way to do it is to ask someone that works at this dealership that doesnt work for SALES. Add a grand on top of that and thats as low as they will go give or take a few 100.

5 To get this deal over quick just tell them straight up you know how much they paid out on the car and i guarantee they will give you the lowest they can go because they dont want that info goin around.

6. Also tell them what you want your payments to be, if your parents co sign for you your payments will be high but if your parents put it in your name they will work with the payments alot more cause your parents will obviously have better credit.

7. If you dont like DCX's payments look around you dont always have to finance through Chrysler you will definatly be able to find somewhere to get you lower payments but the intrest rate on the loan will be alot higher.

So if your not bored yet good luck put my honest opinion its alot of money for an 18 year old. Unless you have a good down payment like 5+k other wise idk. But good luck.
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Post by Mr Josh Zombie » Wed Dec 20, 2006 9:49 am

Now that I’m at work, I can slack off and type this up instead.

I JUST bought my car this year, so everything is nice and fresh in my mind.
I can safely say this much, considering the car is about $15,000, don’t buy it. Yes, it’s a good deal, but you don’t want that high of a car payment right now. Total cost of my SXT with a trade in on my Cavalier, and $700 down, came out to a little over $14,000. I had to have my father co-sign with me, and I have a 10.75% interest rate… my monthly payments are $292 a month. This car was the biggest mistake of my life.

At first I thought I’d be able to afford $300 a month, but now that I’m ready to get my own house and what not, my car payment is killing me… absolutely killing me. If I didn’t have this car, I could be living in my own house right now. My personal advice to you is, save up AS MUCH money as you possibly can, so that you will have a HUGE down payment, and wont have to pay so much interest. (Oh, by the time my 5-year loan is up… I’ll of spend $18,000 on a 2003 Dodge Neon. Yes… I’m a moron.)

Now, if that didn’t talk you out of it, and you MUST have this car NOW, then call up your insurance company and get a quote on how much insurance is going to raise on you. Be expected for a shock. You’re 18 and want to buy a high performance car… it’s not going to be cheap.

Sell you current car privately. Don’t trade it in, no matter what you do. Take your car back to stock as much as you can, and put it in the local paper and Auto trader. You’ll get more money back this way. You can sell the car for what it’s worth, and sell all the aftermarket parts for a little extra cash. No one but enthusiast give a damn about aftermarket parts, and even then it’s hard to find someone that’ll take it into consideration.

After you current car is sold, talk to your parents and MAKE SURE that you can have a co-signer…. Because no matter what, you’ll need one in this situation. Take your father, grandfather, who ever is smart with cars with you and check out the SRT-4. Test drive it, crawl underneath it, check out every little inch of it. Read up on SRTforums and try to find out what commonly goes wrong with the car, and be sure to point out every single flaw to the dealer and MAKE THEM fix it before you sign anything.

Ask the dealer to print up a Carfax report on the vehicle, this way you can know the history, and it wont cost you a dime. Most of the time a dealer will pay for it. History is VERY important when buying a used car, especially a high performance one.

After you’ve figured out everything that is, or may be wrong with the car, start talking the dealer down. They WILL go down… they want to sell. Don’t be afraid to haggle and walk away often. Actually, do that, walk away often. They get scared that they might loose a sale, and chances are, you’ll drop them a couple grand. Once you’re agreed on a price, give them a list of banks you WANT financed through. Try your best to get a low interest rate. If they say they found someone to finance, but it’s 15% interest, then tell them to keep looking. It’s there jobs to find this crap out for you. The bigger the down payment though, the better chance you’ll have of being financed, and the cheaper your monthly payment is going to be.

Tell them you want everything printed off of what they are adding on to the loan. You never know when they’ll try to sneak in a hidden cost, thus netting them more money. Get an extended warranty to if you can… sometimes they help; sometimes they’re a waster of money. If you plan on modding your car, don’t worry about the warranty… you’ll end up voiding it anyways.

Once you’re happy with everything, sign papers, go to the bank, sign more papers, and drive away with your car. This whole process can take days, or weeks. Depends on how patient you are. Just remember this, the more patient you are, the better off you’ll be.

----------------------

That does it for the dealer end of things… now, if I were you, I’d just go private… but that’s because I like to mod my car, and you can get some hella good deals out there. A lot of the time, you can find people selling their SRT’s for kind of cheap, already modded to a nice degree. Just remember… if it’s modded, chances are they beat the piss out of it. But, at least you’ll know. Now, if something goes wrong though, you’re screwed. The seller probably won’t care anymore.

The general process is the same though. Try to talk the seller down, you’ll have to call banks yourself though, and always look for a low interest rate.

With all that said, REALLY think long and hard about this.
If I were you, I’d just save up for a good 6 months, sell your current car, and have one hell of a nice down payment. But, you have to learn some how.

-------------------

Hope this all helped.

Any more questions, feel free to ask.


damn.... that just killed like 20 minutes of my work day... and I got paid! SCORE!
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Post by bige1030 » Wed Dec 20, 2006 11:28 am

Opi wrote:Total cost of my SXT with a trade in on my Cavalier, and $700 down, came out to a little over $14,000. I had to have my father co-sign with me, and I have a 10.75% interest rate… my monthly payments are $292 a month. This car was the biggest mistake of my life.

At first I thought I’d be able to afford $300 a month, but now that I’m ready to get my own house and what not, my car payment is killing me… absolutely killing me. If I didn’t have this car, I could be living in my own house right now. My personal advice to you is, save up AS MUCH money as you possibly can, so that you will have a HUGE down payment, and wont have to pay so much interest. (Oh, by the time my 5-year loan is up… I’ll of spend $18,000 on a 2003 Dodge Neon. Yes… I’m a moron.)
Dude, I'm a bigger moron than you! I bought my 05 Dodge Neon in July, brand new, without a co-signer. I got the extended warranty, too. 11.84% interest for 72 months. $15,269.13 financed @ $297.25/month. Estimated total of payments: $21,402.

That car was totally an emotional buy. Now, I'm condemned to years of car payments and probably even more years of therapy if I hope not to do the same stupid thing again, while deluded by my emotions into thinking, "oh, I love that, having that car will feel great, i got approved for the loan, omg i feel totally in love with that car, i'll take it!"
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Post by glasswars » Wed Dec 20, 2006 12:09 pm

Holy crap this is a lot of info! I knew I could count out you guys.

Do you think it'd be signifigantly cheaper if I were able to get my parents to put everything under their name and I would just give them the money to pay it?
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Post by Mr Josh Zombie » Wed Dec 20, 2006 12:10 pm

glasswars wrote:Holy crap this is a lot of info! I knew I could count out you guys.

Do you think it'd be signifigantly cheaper if I were able to get my parents to put everything under their name and I would just give them the money to pay it?
don't do that either... you WANT to build credit dude
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Post by KrackstaR » Wed Dec 20, 2006 12:30 pm

I agree with others on this one save your money i paid 24k for my neon after getting rapped at 24% intrest rate and it sucked so i had to learn the hard way. When i bought my BMW i put $20k down and BMW financed me at 8% for the remaining balance now i owe 5k on a car worth 18k, and if you get a srt your insurance is going to rocket, you dont want to be paying almost a 1000 bucks for a car period. save money and then get it, i know you want power but sometimes you have to crawl before you can walk, SRT-4's arnt going anywhere every year they will be coming down and down in price use that time to save more money......just my 2cents. 8)
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Post by Chibits12 » Wed Dec 20, 2006 1:41 pm

I'm kind of like in the same situation: should I keep the car or upgrade? I got like 8 months left and my car's paid off, college is almost over, and my car's still running well. I've decided to keep the car for like 3-4 more years since it'd really save me a lot of money. I got the car for 6,000 with my dad's help 3 years ago. Loan's for 48 months and interest rates a bit high for me as well: 18%.

Yes, keep the car for a while, you won't regret it especially since you're still 18. Might as well get the new Challenger if you want real power. 8)
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Post by Mr Josh Zombie » Wed Dec 20, 2006 1:47 pm

KrackstaR wrote:i know you want power but sometimes you have to crawl before you can walk, SRT-4's arnt going anywhere every year they will be coming down and down in price use that time to save more money
Seriously man, trust us on this one. We've ALL been in this boat I think... just some are smarter about it than others.

If you can save money, just think, you could be that 20 year old with a 11 second SRT that you no longer owe money on. Instead of throwing money on a car payment, it can be spent to make the car better/faster.
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Post by TheRandom1 » Wed Dec 20, 2006 3:49 pm

You guys think 10 and 11% on a car loan is bad? I have a 19% APR on my Neon. I bought it with a 200 dollar trade in, and 200 dollars down for 11,900, used, (if 6k miles really counts as used, lol) My payments are almost 400 bucks a month.

Today, I currently owe over 12k for it because of interest and etc.

BTW, dude, if you do decide to finance, MAKE SURE you get a simple interest loan. That means if you pay more than your monthly payment, it comes right off of your balance.

Some loans are set up that if you pay more than your monthly bill, you get penalized. This is to insure that they get every penny you agree to pay.

If you pay more than your monthly payment with a simple interest loan, you will end up paying less money.

Just a little more food for thought. I totally agree with the other guys though... Newer cars are nice and all... but making that payment every month sucks big ones.
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Post by glasswars » Wed Dec 20, 2006 4:27 pm

Thank you guys you definetly made me think a lot and change my mind.. although I still don't know yet. Maybe I'll just keep buying visual mods for the Neon then when I buy the SRT slap them all on that, hahaha.

What if I was making a grand a month, do you think that'd be enough to pay for everything? I shoud be getting a new job after winter break and will be making around that much a month.
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Post by Mr Josh Zombie » Wed Dec 20, 2006 4:35 pm

here... i'll tell you a bit more about my situation... help you decide a bit more.

I gross about $1,600 a month.... that's gross, not Net. I net about 1,000 or so.

I have 292 car payment, 300 insurance payment, and 50 cell phone payment, and i live with my girlfriend at her dads house. Now, I do JUST fun living for free... but when it comes to living on my own, with my girlfriend paying half of housing bills, i only come out to about $12 positive a month.... it's really depressing.

So, yes, you will be fine... if you want to live at home for the next 5 years bud.
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Post by glasswars » Wed Dec 20, 2006 10:16 pm

Oh well, it's too late now, the car was sold this morning! :(

:P
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Post by Chibits12 » Wed Dec 20, 2006 10:24 pm

:( Look on the bright side, in a couple of years you might just find a white ACR SRT-4 waiting for you to buy. It might have more mileage but it could be cheaper as well. :P

Hopefully I don't tear up when I sell mine ::sniff::. Nah, I'll run it til the wheels fall off lmao.
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Post by LowNSlow » Wed Dec 20, 2006 10:33 pm

$1,000 wouldn't do it for you anyhow..

$300-350 payments.

$300-350 insurance.


That's $600-700 right there.... gas.... food.. cell phone..

Boom you're broke... well boom you can't even afford it.

Trust me.. if you have a vehicle that is paid off... KEEP IT.. rock it until you save up enough money to buy something cash.

Learn from all our mistakes.

Between insurance and my payment alone. I almost pay what you make a month on my truck. :D

$680 payment. $170 insurance

I do make A LOT more than you and have dual income.. but it was still a dumb thing on my part.

The reason my payment is so high... its because of that damn 04 Neon I had.. I was an idiot when I bought it.. and when I traded it in.. I got raped... real bad. They didn't even use KY :(

You might notice a thread where I am asking about cars in the 15-20K range.. That's for next year when I move back to the states.. Ill have 10K or so saved up... my payments will be next to nothing. 8)
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Post by Neonix » Thu Dec 21, 2006 11:40 pm

Well...it's already been said, but yeah. Save up your money. The more you can put down on a car, the better.

I got my neon at 12.9% on $13,000.00 for 72 months, with 500 down and a $2,000 trade-in. Car had 6k miles on it. Oh and by the way, they consider a car used once it's been registered. So someone could buy a car, register it, drive it for 200 miles and then trade it in. It's considered used. The mileage generally doesn't matter.

So yeah...I got screwed on my neon also. :?
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