Friend's buying a neon

Undesolved · Post by **Undesolved** » Fri Dec 18, 2009 7:39 pm

So my buddy is debating on buying an '05 Blue SXT as his first car, i told him to go for it since it's only $1000 down and $75 a week he just wanted me to have someone run a carfax from it to make sure that the only real problem with it is a dent on the drivers side rear quarter (Right above the wheel). If someone could PM me with the carfax I'd be glad
the vin number on it is:
1B3ES56C45D252995

LilSparkPlug · Post by **LilSparkPlug** » Fri Dec 18, 2009 8:37 pm

$300/month on an 05? How much is he paying for the car that seems pricey for a monthly payment.

Undesolved · Post by **Undesolved** » Fri Dec 18, 2009 8:45 pm

It's his first car and he technically hasn't even bought it yet. He's still in the works of looking for one and that was the one that popped out to him. I'm sure if he goes and talks to the Dealer who he wants to buy it from he can get the payments down alot. He's also doing this so he can set up some credit to put towards his name. He's only 20 and I told him I'm tired of giving him rides.

Adionik · Post by **Adionik** » Fri Dec 18, 2009 9:49 pm

They were selling a complete mtx neon, salvage title...but restored, for $1900 here in sa

Jeepin' · Post by **Jeepin'** » Fri Dec 18, 2009 11:03 pm

$300 is high for a Neon d00d.

Those weekly pay places are such a jip, to be honest. You miss any slight thing, your credit is tampered with, and your wheels may end up gone.

Whats the window sticker on the SXT?

As a benchmark, I also have an 05 SXT, I'm 3 years older then him, and with $2,000 down I'm paying $103 a month for 48 months, with a extended warranty included.

I'd definitely shop around still, and avoid those places if at all possible. How many miles on it?

05sxt · Post by **05sxt** » Fri Dec 18, 2009 11:25 pm

Yeah man I bought my 05 Neon SXT as my first car on credit. That was back in 2006 when interest rates were a LOT higher than now, the car was priced at $13000 (only had 4k miles) and I had little credit. My payments were only $200/month (I've since refi'd it for a lower rate).
Tell him that those weekly places that supposedly help build your credit will end up jobbing him over because of the high risk. He needs to just get regular financing on it, suffer through the relatively higher interest rates/payments for awhile and make damned sure he pays on time. Within a year he would have way better credit and could refi at that point for a lower payment.

Anyhoo, just a suggestion from someone who has worked in consumer financing before. Best of luck! Oh and I'm in Austin so hopefully we'll have another CenTex meet here soon.

Red04SxtLuvr · Post by **Red04SxtLuvr** » Sat Dec 19, 2009 6:48 pm

Find some other way to finance, those "weekly payment" finance deals are always a rip off. Trying to get credit, to build credit rating can be tough, but tell your buddy to find another way to finance.

opie0669 · Post by **opie0669** » Sun Dec 20, 2009 4:14 am

bro tell him he might not even build credit there....some places claim that, but if they do not report payments he is spinning wheels, or even worse if they only report to one bureau and not all three it is pointless...trust me, i studied this crap intensly to build credit to buy my house...everyone else is right, shop around, apply everywhere(banks even credit unions) you would be surprised how easy it is...then go in with finanacing and negotiate a solid price, not a weekly or monthly payment... i promise he wont get corned that way...300 a month is too much to pay for those, 1st buyer or not...

Post by **occasional demons** » Sun Dec 20, 2009 5:16 pm

Especially with $1000 down.

If he has $1000, use it as a partial payment, and the $ borrowed elsewhere. Have him shop around for the amount he wants to pay total. Go negotaite the price, if favorable put $ down to hold it, no more than they request, get the financing, and hand them the check.

Dealers will also work in life and disability insurance on the loan. This can add $40 or more a month to the payment.
I have dealt with this before. The dealer finance guy told me the payments were "x" amount for the $8000 that was to be financed.

The papers were to be signed the following day. I went home and called around for an $8000 loan. All the banks were $40 + or - less than the dealer. I specifically asked the dealer if that was with insurance, and he said no. So I walked in the next day with the check. The Finance guy says "I thought you were finacing with us" I told him I got payments for $2400 less over the life of the loan. His resonse was "Well we could drop the Life/Disability, and match that" I told him, OK you straight out lied about it, what else were you going to fuck me on, and maybe I should go else where. How are you going to explain to the salesman you fucked his sale?
The guy almost turned white. I still bought the car, but the finance guy didn't like me much. The sales guy sent me a Christmas card for many years, I think he may have passed away, as he was no spring chicken...
I think he enjoyed watching the finance guy get pwned by a "young kid". Who knows how many sales he cost him.

Jeepin' · Post by **Jeepin'** » Sun Dec 20, 2009 5:57 pm

^ Win!

And nit pick the shit outta the car. This may seem obvious, but what it boils down to is they want to move inventory.

Case in point the original window sticker in my car was 9,000. Which is astronomically high. When I got in and saw the sun-cracked dash beaten to hell, I asked him if he would be so kind as to share whatever drugs they were smoking to figure that was a fair price.

Long story short, without being an ass about things either, got the car down to a reasonable $5,300, just over 6 out the door tax tag title, with warranty. Went through my bank for the loan, cut them the check, everybodys happy.

Mopar00Neon · Post by **Mopar00Neon** » Mon Dec 21, 2009 5:45 am

I didnt pay $300/mo for my F350... and def. not weekly. Shop around.

*cant say much about my neon, paid cash back in '00 for that*

lilnicko11 · Post by **lilnicko11** » Mon Dec 21, 2009 6:50 pm

yeah re-evaluate that 300 a month thing

BlackRoseRacing · Post by **BlackRoseRacing** » Thu Dec 24, 2009 5:34 am

KBB states with 66,000 the car is worth $6900 in mint condition. If he has a $1000 to lay down as a down payment pick up an 00-02. I just picked up a used 00 for $350, put $150 into it and it's been running perfect....

Sykora · Post by **Sykora** » Sat Dec 26, 2009 1:54 am

BlackRoseRacing wrote:KBB states with 66,000 the car is worth $6900 in mint condition. If he has a $1000 to lay down as a down payment pick up an 00-02. I just picked up a used 00 for $350, put $150 into it and it's been running perfect....

TeckNeon · Post by **TeckNeon** » Mon Dec 28, 2009 3:52 pm

$1000 down will make a whole lot of finance companies take notice. If he has had a steady job for at least 6 months, has not moved in 2 years and his credit is not bad or not established, he can get a better deal. Just shop around for a loan if that has to be the car he wants to buy. With those BUY HERE, PAY HERE places, you are paying far too much to have something that's not worth anything. He will be upside down in it for the entire length of the loan.

I would:

Sit down and research what cars fit him best for what he needs it to do. Will he customize it? How long will he keep it? Does he drive hard? Does he drive alot? What options can he not live without? Figure out what his choice is going to cost in the long term or at least the length of the loan. Can he afford to fix the common issues of the vehicle? (for us, control arm bushings can cost the non-mechanic about $500+ to fix which can toss a budget right out the window, or how about an SRT-4 that needs 17" tires at $75-$150 a piece) Then start looking around for vehicles that fit those guidelines.

Have him look for financing first and foremost. Call around and see who will give him the best rate for a reasonable amount for a reasonable length of time. Don't trade off a low payment for more time on the loan. Don't pay $100 a month for 72 months. Try every credit union in the phone book first. They have the best deals on rates and terms. Mine is at 6.75% for a 4-6 year old car for up to 5 years.

After he gets financed, he can then shop as a cash customer. Keep in mind that his $1000 down will cover all the doc fees, taxes and such. Negotiate the price of the car. Make no mention of trades or down payments or even monthly payments. You are buying a car, not a payment. Once you have the car to the amount you want to pay, then negotiate you trade, and put down your $1000 at the time of signing. Figure out your payment on your cell phone to see if that's where you want to be as far as a payment goes.

A whole lot of people hit the lot looking for a car they can afford monthly not considering the terms of the loan, the cost of ownership of the car beyond the gas mileage, the value of the car after it's paid off, etc. Most people just show up and see if they can get a car for $200 a month and drive off in whatever looks good at the time. Research and learn well before you even step on the lot and he will be much better off.

dblsg · Post by **dblsg** » Thu Dec 31, 2009 2:48 pm

and the ones above too

non-magnum · Post by **non-magnum** » Fri Jan 01, 2010 3:29 pm

He can prolly find good r/t acr 01-02 cheaper faster

Best way prolly would be to find cash from piggy bank, savings, borrow, and bargain with them. Just get 500 87 civic till you save the cash and then go buy it...
p.s. 300 too much, more shopping around would help man.

Post by **occasional demons** » Fri Jan 01, 2010 4:34 pm

Meh, he has prolly bought it by now...

So get him to join here, so we can convince him to dump more $ into it.

The economy needs a boost dammit!

Undesolved · Post by **Undesolved** » Sun Jan 03, 2010 9:50 pm

Meh, he has prolly bought it by now...

He hasn't yet bought it.

But he does plan to start saving up his money and going through a bank for financing. They said it'd only be 8998 for it. However, no papers have been signed yet and he's gonna take his dad with him to get them to knock out a couple pretty pennies for the damage done. It has some left rear quarter panel damage. As well as some nasty ass stains on the seats and a few things are coming apart as well as a cut about an inch long in the rear seat. Along with a dent in the drivers side front door. This is one of the "Nicer" neons for sale in our town. I've been looking around for other cars for him but he has his heart set on a neon.

And when he does buy it I'll get him to sign up on here.

JeffM · Post by **JeffM** » Sun Jan 03, 2010 10:05 pm

Daaaamn! $8998??! That's more than I paid for the Audi!

Definately have him shop around for payments if he is gonna do this. And remember - down payment, down payment, down payment. Even a few hundred bucks difference in the down payment can completely change the loan payment. By me putting down $500 more on my down payment I was able to drop my loan payment by $100 a month.

half_twisted · Post by **half_twisted** » Tue Jan 05, 2010 5:07 am

i bet you that his interist will be around 21% and in one year that add up..