Buying a new car (first timer)

Discussion in 'Off Topic' started by Weapondrift, Feb 27, 2009.

  1. Weapondrift

    Weapondrift New Member

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    Buying a new car (first timer)

    Ok, over the last few years I have been considering buying a new car, but before I do I would like to know of some advice from those that have bought new cars and what your opinions are.

    Here is my information.
    1) No trade
    2) 3k down
    3) Lease or buy is still up in the air it will be according to what my payments will be. My roommate and I were working the numbers a few months back and the way it worked out...if I bought a new car and sold it 5 years later, and repeated the process, eventually I would be upside down in my credit. I am one to drive the wheels off of a car if I can. (I have put around 70,000 miles on my current car which is now in the 120,000 mile marker)
    4) I dont know my inrest at this point. I have 0 credit its not bad...its just non existent lol
    5) Its a toss up between the 09 Cube (Nissan) and the 09 Fit (Honda)
    6) I know I should also factor in Cost of Gas, Maintence, and Insurance (this will be my first time having full coverage) however I cannot get an insurance quote untill I know what the Vin on the car is with the Fit its not a problem, but the Cube has not been released yet.
    7) I have priced a Nissan Versa AROUND the same price of the Cube which will put payments between 220 - 250 a month if I put my credit at 11% APR
    Is there anything else I am forgetting?
  2. carter.337

    carter.337 New Member

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    All I can say to you for a first time buy is don't buy one that is too expensive, all it needs to do is drive. Seriously, my first car was a really cheap one and I'm glad, because ... well let's just say it suffered quite a bit of damage along the way :laugh2: I got it a few weeks after I got my license and as you can guess, I was quite ready to show off my not so perfect driving skills. My first expensive car I could afford about 8 years later and that was worth it because it's still as good as new as I can actually drive now :wink:
  3. Weapondrift

    Weapondrift New Member

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    Well see, I currently have a little rice rocket (integra) and am looking for something...mature (four doors). Im freaking 30 years old. I cant be driving a rice rocket into my 40s. The price around the cars that Im looking at is NO more then 12,000 - 15000$.

    *edit*
    Well one thing i do need to add, if anything I know how to read Nissans. I was a Nissan Salesman for a few months So I am familier with all the trim levels. S = base SE = Sport Edition SL = Standard with Leather so in some ways I am almost biased.

    Here is a link to the trim levels and the pricing on the cars
    http://www.nissanusa.com/pdf/microsites/cube/cube_presell_trimwalk.pdf
  4. radarwill

    radarwill New Member

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    My advice is to beat the snot out of the salesman on price.
    Given the economy's current state, it is a buyers market and those guys are willing to cut a good deal after some haggling.
  5. txter

    txter New Member

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    also take into account money in the future. the truck i bought, a Yukon Denali, was chump change when i bought it. that was 3 years ago. now i have a girlfriend and a 14 month old daughter. payments are tight. never saw this coming.
    also, zero credit is worse than no credit. at least with bad credit they have a record to look at. its a paper trail and thats what they want. with zero credit you will have a higher APR.
    you may want to consider a car that is last years model. as soon as you pay for it, the book value drops by 1/3. if you find a lease that was traded in, say with like 5k in miles, you are pretty much getting a new car. being a lease, it was maintained by the dealer so they protect themselves. plus you'll pay far less than that car would be brand new.

    good luck
  6. dafoxs

    dafoxs New Member

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    11% is way to high even for a first timer. I always go to my personal bank. They can do better, or tell the dealer, you want to pay, say 185, make it happen and you have a deal. My last car, I had them add in the 7 year warranty with gap insurance. It was like 5 bucks a month. It's for piece of mind.
  7. oneeyed_q

    oneeyed_q New Member

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    1 thing to look out for and 1 reccomendation:

    1. If you lease you have a limit on the miles you can put on it so if you drive alot I would avoid leasing it. (ie I put 30k on my car this yeazr, I could never do a lease).

    2. For an easy credit build up, go to your bank and ask them to add over draft protection, what they do is have a creidt card added to your account if you over draft it goes right to the card so you dont get hit with the over draft fees (I know bank of america does this). I opened mine when I had 0 credit and got 300$ then I went and purchased gas and a couple things here or there and left a balance and paid just above the minimum for until the balance was down and the repeated the process. Also your phone bill will allow for some credit (very minimal) but as I was told it could mean the difference in getting a loan vs not getting one.
  8. ninjaap

    ninjaap Moderator

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    I agree with dafoxs, get gap insurance. It's very important. I had to learn the hardway. When my audi got stolen a couple of years ago, I did not have gap insurance. My insurance paid the full value of the car, but owed more than the car was worth. So I still had to pay my lender whatever insurance did not pay for.

    I also suggest getting a loan from outside the dealership as others have suggested. It's easier if you walk in with a check on hand already.
  9. infernox51

    infernox51 New Member

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    I recommend the honda. I have a 2000 accord with 138k miles on it...been paid off for 5 years...and no problems. I just leased a 2009 crv for my wife. honda will give you 12k miles per year on a lease now (which is good). Gap insurance was included...and we don't have to worry about anything for three years. if you leased (or even bought) the fit...im about 90% sure you could get them to work in your price range.
  10. softspirits

    softspirits Guest

    Do you really have to have a NEW car??? You lose SO MUCH MONEY!!! I understand though, when my husband decided he wanted his new tundra, there was no talking him out of NEW. But if you must, don't pay 11%, oh my GAWD that is high. Go to www.navyfcu.org and utilize their rates and calculator to help in your negotiating process. Currently they are offering 5.25% for a new car 60 month loan. First time buying isn't a bad thing, don't let some skeezy salesman tell you that you have to settle for a high interest rate just because you're young. Bullshit, you have a good job and no bad credit references. If they can't get you a good rate WALK. If the price they want you to pay doesn't seem right WALK. Do not get emotionally involved in a car. Best thing is to negotiate everything over the phone and via the internet before you even see the car, which should be really easy to do since you don't have a trade. DO NOT LET THEM TELL YOU THAT YOU HAVE TO GO IN AND FILL OUT PAPERWORK BEFORE THEY CAN QUOTE YOU. that's bullshit because they can run your credit with a social security number, and they know it.
    Remember that you have all the power, because you are the one with the money. Call around, and dont settle for less than what you want. DO NOT BE AFRAID TO WALK AWAY. And remember, they are out to screw you, thats how they feed their families, no matter how many times they tell you otherwise, they aren't doing YOU any favors. Oh, and one more thing!

    Good luck.

    PS: I worked for Dealer Only Auto Auction for 5 years and learned a lot about the car biz... I really hate all car dealers. I now only buy used from private parties.
  11. cindra

    cindra Active Member

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    Good advice above. Check Edmunds.com for lots of good advice and information.

    I found the actual invoice $ amount on my last new car, so I knew what it cost the dealer with holdbacks, advertising, etc. Went to a local dealer to test drive it and when they started talking about dollars off MSRP instead of dollars up from invoice, I walked.

    I sent an email to a dealer about an hour away. Laid out for them the car I wanted with the options I wanted, the amount I wanted to pay (invoice + about 3%) and asked if they could accommodate me. They said yes...we did the entire thing over the phone and email and I went down there, picked up my new car, and drove off.

    Figure out what you want and a reasonable and fair amount you are going to spend for it, and get your financing squared away (not at the dealership) based on that. Then, all you have to do is email until you find one that will accept your offer.
  12. EQBob

    EQBob New Member

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    Would agree with the don't buy a car too expensive as a first car advice. My first car was a 2-door honda civic hatchback. Drove it 11 years. My current car is a Tacoma pickup...paid off years ago and that suits me perfectly fine <G>.

    Agree with comment that this is a buyer's market. Hell, dealers are back to offering 0% on some vehicles. You can get a perfectly good deal through a dealer bu you have to be willing to walk away from it to get it.

    Explanation: I walked in years ago and said I need to buy a car, blah blah blah, don't BS me, give me best price, blah blah blah. Test drove, kept it overnight actually, drove it to work, liked it, went back to dealer, said tell me my final price, they do this ridiculous runnign around punching calculators for 10 minutes, back room whsipering, etc. The whole show. Finally the guy comes back and writes down a number and turns it upside down and slides it across the table, like it was a poker deal. I flipped it over, looked at, tossed him the keys and said thanks for the test drive. Walked out.

    Manager chases after me. What's the problem he asks. The problem is I'm trying to buy a car and you're tryin to screw me I say. We engaged in a conversation. He said what would it take ($$ wise) to close this deal. I told him. I said under 20K. He hems and haws and lectures and I start walking away. He says lets talk more. I said the only talking I need is to see your final price. Yu hae my number. He said let me run the numbers again. I decided to let him play the game. He comes back a few minutes later and says if I sell you that for 20K, you'll buy it? I said no. He said what? I said UNDER 20K. 20K is not under 20K. He asked if I was going to walk away from the deal for a buck, I said absolutely, I'm dealing on principle, what are you dealing on? He said ok, you win. I said ok, go wash my new car <G> I walked out nearly 8K off of sticker (which nobody should pay) and 4K under the poker deal price.

    Point being, to get a deal, you have to be willing to walk way from it.

    My opinions...mine only...YMMV

    Watch out for the options....Example: you can do an aftermarket XM radio install from BestBuy for about 300 or pay 2000 from dealer because it's bundled with other stuff that you can't unbundle.

    Most important items are SAFETY. Daytime running lights are a must. Multi-point air bags are a must. Appropriate tires are a must. Live in snow and ice region? Make sure you scope out what tires they're using. If you don't like them, tell them to change them. ABS is a must. Traction control and VSS not so much. Cruise is certainly a real nicety and can be a safety benefit. Adaptive cruise would be nice but it isn't there yet on most models.

    Look at safercar.gov for the crash ratings. Do not even think of buying anything below a 4 in every category.

    Look at fueleconomy.gov for fuel economy information and the ability to do side by side comparisons.

    Educate yourself before going into the lot. KBB, msn new car pricing, and edmunds will all give you invoice pricing information. Set a dollar figure you're willing to pay over invoice. Mine is typically $400.

    Find a salesman that you can relate to. If he's high pressure, and you don't like that, tell him to pound sand and ask manager for someone more to your liking. I have bought 4 cars from one dealer here. I only have 1 person I will deal with. It's agreed long ago. If I'm buying, he's selling at $400 over. We never even quibble anymore. That's probably a rare situation.

    Test drive the vehicle on all road types. Put it into an emergency breaking situation. Put it into an emergency accel situation. Driving like a granny watching the petunias on sunday morning is not going to give you a feel for the car. Listen for road noise. Take it on a bummpy back road the county hasn't paved yet. Drive it home and make sure it fits into your garage. Tell the sales guy he doesn't need to come with you. They might insist, but it isn't like it's some law or something.

    Ok...I'll shut up now...
  13. Weapondrift

    Weapondrift New Member

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    thanks everyone! Since theres so many posts ill try to do one single response, maybe more If I forget something. Now on to the typing lol

    1) Dafoxs - 11% may not actually be my APR I just randomly picked a number (like I said earlier since I dont know what my credit is.
    2) Oneeyedq - I like the idea of beating the salesman up for the best deal lol
    3) EQbob - Im not looking for extra options simply because any extra options (i.e. Xmradio I already have in my current car
    4) Softspirits - I would like to have a new car. Ive always owned used cars (which isnt bad by any means) but at the same time it would be covered under warranty (which ive never had a car with a warranty)
    5) Infernox51 - Since I already own a Honda, I am very familier with how reliable they are :)
    6) EQbob - I fully intend to research this Vehicle to the fullest. The paper guy told me today a good idea is to go to the dealership and "browse" looking at different cars not specifically the Cube or Fit and act like Im still unsure what I want to get. After negotiating with the dealership have them give me a sheet of paper with their "best" offer and go to a different dealership and see if I can get an even better deal.

    Time to clock in more later keep posting yall :D
  14. radarwill

    radarwill New Member

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    Yup, that's one killer piece of advice.
    Why didn't I think of that?:angry:

    Good luck and don't rush it.
  15. EQBob

    EQBob New Member

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    Having a car with a warranty is nice. My Tacoma had 2 issues in 7 years. A battery and a power window motor. Both replaced no questions asked under warranty. All I did was oil/lube/rotate and the occassional more substantial service. My truck is 9 years old, has 49.3K miles on it and purrs, day in and day out. I did replace the tires and that was expensive because I bought off the lot as i needed a replacement vehicle in a hurry and the truck has an upgraded suspension and bigger tires. I have found it to be quite nice to be up about 8 inches higher than other trucks....field of view much better.

    Not too sure of the strategy of the browse, get best, go elsewhere. Nobody give you best offer on first cut unless you have a long established relationship with them. You'll almost always be able to beat that first offer so it isn't that the technique works..its basis is flawed.

    However, if you talk to 100 people, you'll find at minimum, 100 different ways in which people think you should purchase a car.

    I think the key is educate yourself first as much as you can...looks, models, safety features, expectation in fuel economy, company web sites for option packages, dealer web sites for inventory on lots, invoice pricing web sites, test drives, THEN talk serious with a salesperson. Doing anything with them before that is just flashing a sign that says "sucker" <G>
  16. Weapondrift

    Weapondrift New Member

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    Most of everyone I have been talking too has suggested waiting, the whole "economy" staple imo is b.s. I have been looking at the website for about 3 months and trying to place a cost on the car as according to what I can afford not what they WANT me to pay. The other thing I am trying to do is to take my time. As one of the members said earlier he ended up with a wife and a child so paying his vehicle has been a struggle. Im not in any way saying that those decisions are bad, what Im saying is that if I dont decide to buy now...I think when my current car dies which it will eventually (130,700 miles currently) I will be forced to rush into buying a car spur of the moment where I will be labeled as "sucker".
  17. EQBob

    EQBob New Member

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    I would actually disagree with that concept. Car companies, both domestic and foreign are HUNGRY for buyers. Deals are available. Waiting until the economy turns around will not make things any cheaper to purchase.
  18. cchannelz06

    cchannelz06 New Member

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    Honda, Toyota or Nissan in my opinon are the best out there. Hyundai as came a long way in the last couple years and would seriously consider a new one over any of the domestic auto makers. As far as new vs used it has a lot to do with the interest rate you can get and what kind of down payment you have. Unless you can get around a 3 to 4 percent rate and say 3 to 4 thousand down you lose a lot in depreciation by the time the car is paid off. New cars do come with warranties but most are the standard 3 year 36k mile. Some manufactures are offering longer warranties but I beleive that just covers drivetrain and maybe safety features. Definatly ask about what the warranty covers when talking to the sales person. Personaly I would never buy new but thats just me. I don't worry to much about warranties since I am the only one that works on my cars. Also if you can find a car with aound 3k to 6k mles on it you wouldn't have to eat the depreciation of the vehicle and the manufactures warranty can be transfered to the new buyer. That's just my 2 cents. If you want PM me and I will send you a link to check out.
  19. Weapondrift

    Weapondrift New Member

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    One of the things ive found is the differece in the powertrain and the bumper to bumber warranty. One covers all engine, while the other covers scratch, dents and the like.

    As far as my intrest, that will be something I will have to find out when the time comes for me to actually buy. If I keep running my credit trying to buy a car, it puts a notch in my credit each time its run. Ive never bought new, and I like you have never bought new, but I would actually like to have a car with that fresh smell of "new" lol
  20. radarwill

    radarwill New Member

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    Ya know they sell that "new car spray" in most gas stations. :2cool:

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