Thursday, September 30, 2010

Figuring out your financing.

So, you have the best price imaginable from utilizing my other tips. Now, you need to finance.

  1. Figure out how much your MAXIMUM payment can be monthly ahead of time (Eg. I can handle $500.00/Month) -> If you are comfortable at say $350 over 72 months, but can handle $420 over 60 months; do the 60 months (You will pay MUCH less interest).
  2. Go through the options with your sales rep. Some vehicles offer 0% financing up to 72 months. Even if you planned on a 5 year contract, if you can get 0% for 6 years, why the fuck not take it right?
  3. If you are buying during cash incentives (see: no 0% financing), make sure you verify with your salesmen a few things
    1. What is the rate? (Sometimes 60 months will be 6.99% whereas 72 months is 7.99%)
    2. Who are you financing through? (I find it's easier to get approved through the manufacturer)
    3. How much interest am I paying overall in interest? (The longer you finance, the more you pay in interest.)
  4. Is there a balloon payment? (Adding a bulk payment to the end of your finance to greatly reduce the payment. Many shady salesmen will do this without telling you. Eg. You pay $240 / Month for 60 months with a final payment of $18,000.00 + Tax)
  5. Make sure to clarify the rate AND the term. I put people into 72 month or even 84 month terms if they don't specify because it brings the payment way down. You dont want a long term like this. (see: more interest)
  6. Clarify if there is a down payment involved.
  7. DOUBLE CHECK IF THERE ARE ANY ADMIN FEES. Another thing that even I do all the time is figure out a price with the customer, then throw back in the admin fee ($299.00) when they want a payment. Often, you won't even be able to tell it's there unless you brought a scientific calculator and your 15 yr nephew.
That's all I got for today. I'll hit on the common issues/shady shit of leasing probably tomorrow.

Cheers.

31 comments:

  1. Thanks dude, this blog really is helping me out, Ill be checking back tomorrow then for more

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  2. i needed this, i'm really dumb when it comes tomoney

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  3. that was interesting... can't wait to see what you post tomorrow

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  4. I like this blog. I'll check back tomorrow for a new update :)

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  5. Very cool blog man. Look forward to reading more. Keep in touch.

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  6. wow haha thanks bro this was sweet . sharing some love ! ;D

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  7. good to know, good to know indeed! will follow

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  8. interesting cant wait for next one

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  9. screw all that, try this...

    1. go on craigs list
    2. buy a car you can afford, because with the cost of gas and insurance you won't want to pay a car payment too
    3. ???
    4. Profit!

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  10. protip: A decent car off craigslist will cost less than the down payment on a dealer car. A crappy car on craigslist costs less than the salesman's commission on a dealer car.

    Look around the dealer. See all that expensive furniture, all that lighting, all those expensive ads? Somebody pays for that. That somebody is you.

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  11. 1. get bicycle
    2. ride bike
    3. ass of steel get
    4. ?????
    5. profit!!

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  12. copypasta'd to a word file.

    good advice

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  13. gotta check that fine print people will always try to rip you off

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  14. I like that we have an insider telling us how not to get fucked over by other insiders...

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  15. I'm loving your posts. They will be useful when I buy my next car.

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  16. I like your blog, ver informative, will be back tomorrow.

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  17. Thanks for sharing your knowledge ^^

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  18. Great information, I'm currently looking for a new vehicle.

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  19. get ready, your looking at a future thoundsandaire

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  20. love your blog! SUPPORTING AND FOLLOWING

    hope you like mine!

    http://anonym.to/?http://cityslika.blogspot.com

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  21. Some really good info here, will def be checking in more often.

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  22. Wow that is worth a try!
    Mesty =)

    ReplyDelete