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financing?


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67 replies to this topic

#51 road2freedom

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Posted 28 April 2012 - 07:53 AM

Yeah if you foresee income as a potential issue, you should start considering some alternatives. If you are already overspending you should be finding ways to reduce your overall expenses, and since you are car shopping this is a great way to tackle that.

If you go the beater route, I would get a reliable import like a Corolla, Camry, Civic, Accord, etc. Craigslist and AutoTrader are your best bet here. Find a car, get it checked out by a mechanic and make a deal. Everything is negotiable.

Alternatively, you could consider something in a lower price range. Why not check out a new or slightly used Civic, tC, Golf, etc?

Also, why not just buy out the Genesis you have with all those features and finance it for a term you know you can afford. It sounds like you already really like the car. You already have some equity in it and it has a decent warranty.



#52 Medsport

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Posted 29 April 2012 - 07:08 AM

Well, I probably should have read your post before I went shopping again yesterday. The dealer I got my lease from found out I was shopping somewhere else and called me and asked me to come in because he knew he could do better. I thought I'd just see what he could offer and had no plans to buy, but I ended up signing for a 2013 base genesis coupe auto. He had a white R spec model (slightly more expensive model) there that somebody was going to buy and it fell through. We went for a test drive and it was ok, but the shifter felt really notchy, plus it doesn't have cruise and I wanted a black car and I really liked the automatic I drove the other day. So he made me an offer of 430/m. I said that was too much and I really didn't want it even though he was coming down a couple grand since it was in stock. He asked how much would I would be willing to go and I said about 395 thinking he would never go that low. After going back and forth to his boss a few times he said ok. Then I said if he could get a base black auto I would probably do it. He didn't like it because he would have to find a car and then have it shipped there, but he called around and found one.

My credit score came out to 700 so they thought I'd be approved no problem even with the bk. but at the last minute they found out they wouldn't approve me for 2.99% for 72m, but would do 5.49% for 75m. Still a good rate for someone not even a year after bk. That raised the payment to about 413, but he said in about a year I can refinance to a better rate and most likely get the 2.99 for 60 so my payment should be around 380 or so this time next year. I still didn't know if I should do it because I don't know what they are going to do with the hours at work, but he said I could get a beater and try to turn my lease in, but they are going to ding me big time for being in an accident. I don't know how much they would have charged me, but didn't want to take the chance. He took care of the 400 disposition fee, my last payment and also gave me 700 more than the buyout in which he said they probably won't even be able to sell it for because of the accident and also about a grand off the new car. I still had to put 1k down, but already have somebody interested in some of my parts off the car and should be able to get at least 500 or so from them. Plus I get to keep the bigger wheels off my car if I want to. He's supposed to deliver it Tuesday.

What do you guys think? I hope I didn't make a mistake. I mean its the car I wanted and seems like a good deal. I just couldn't see paying all that money just to get out of my lease. This way I'll start making equity in a few years and have a real good chunk of equity for a down payment on my next car providing I can manage to make the payments and don't get into an accident in the next 5-6 years. btw, I only signed up for the base warranty (5 year, 60k miles power train), but they have a better one with gap and bumper-to-bumper I could get, but its like 25 more a month.

Edited by Medsport, 29 April 2012 - 07:13 AM.


#53 MarvBear

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Posted 29 April 2012 - 07:27 AM

I hesitate to say this, since I've been so unhelpful in this thread. But a spade is a spade.

but he said in about a year I can refinance to a better rate and most likely get the 2.99 for 60 so my payment should be around 380 or so this time next year.


You just got lied to.

#54 road2freedom

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Posted 29 April 2012 - 10:34 AM

^ +1 in multiple ways. The guy is telling you everything you want to hear to get you in that car. He sounds likes good salesman but that rarely works out in an unprepared buyers favor. I can't tell you what to do, and if you want to accept what he's selling, go for it. But I've heard enough about your situation in this thread and about this deal to think you should walk away. Just my opinion - you have to make your own decision. I'm getting ready to run out but can go over more specifics later on if you want. Please post all of the details of the deal if you don't mind.

#55 Medsport

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Posted 30 April 2012 - 07:03 AM

I thought I already discussed that, but I signed the papers on Saturday for the car at just over 27k with taxes and everything. Its a 5.49% rate for 75 months with 1k down. The payment will be $413/m until I refinance (if I do in a year or two). They are buying out my lease for 16.4k (payoff is about 15.7) and taking care of my next payment and the $400 disposition fee and I don't have to worry about any of the other charges the lease company may have added for being in an accident. He also knocked about a grand off the selling price of the car. I haven't paid the down payment or took delivery yet as they didn't have the car there, but from my understanding once you sign the paperwork you can't back out of the deal in Ohio, correct? I don't think its that bad of a deal and should be able to make the payments providing my hours don't get cut at work (in which I don't know yet). I already thought of a way to cut about $50-75 from my monthly spending, but if they do cut a day every two weeks I'm going to be in a pickle unless I can find a part-time or prn job.

He's supposed to be here with the new car tomorrow morning and help me take the aftermarket intake off my current car. He said I could keep the bigger 19" summer only wheels and take the car with the 18" all seasons that are on it. I thought that sounded like a good deal as I could use the 19's in the summer and put the 18's that come with the car for winter. But now I'm not sure. I wonder if they are planning on keeping the car and try to sell it or return it to the lease company and if they do return it I wonder if I could get charged for having different wheels on it? I don't think so since it sounds like they are more or less buying my car and not just doing a direct transfer to the leasing company. But even if that's the case I'm wondering if I should put the 19's back on it anyway and use the wheels on my present car for the winter (since I bought some nearly new winter tires for it in the fall in the rear) and keep the stock car's wheels for summer?

Edited by Medsport, 30 April 2012 - 07:04 AM.


#56 mk_378

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Posted 30 April 2012 - 08:26 AM

You can still back out of the deal by refusing to take the new car. This is even easier since they don't have your down payment either.

If you're going to return the car as lease turn-in, you need to remove all aftermarket parts and restore to stock condition. If they're buying out the lease and taking it as a trade in, it can be in whatever condition the dealer considers acceptable.

Edited by mk_378, 30 April 2012 - 08:29 AM.


#57 Medsport

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Posted 30 April 2012 - 08:59 AM

Really mk? After a quick search I thought it sounded like once you sign the contract you were locked in? Would it affect my credit or anything if I tried to back out? Also did the salesman lie to me or not as far as if I ended up keeping the car until lease turn-in and could they charge me extra for being in an accident since it was major damage (over 5k) even though its fixed as good as new as far as I can tell now? The dealer said it doesn't matter if it was fixed, just being in an accident on the carfax lowers the cars value and the leasing company will ding you. I don't know what to do at this point? On one hand, it doesn't sound like that bad of a deal and is a nice car and I should be able to afford it if everything works out at work, but on the other hand if my hours do get cut I'm going to be in some trouble. I wish I could at least have a week or two to find out whats going to happen. They are supposed to have the car delivered to the dealership today and he's supposed to be here tomorrow morning to deliver it to me. btw, I know everything is supposed to be returned to stock and I was going to do that in the morning.

But what should I do guys and quick as I don't have much time to decide!

Edited by Medsport, 30 April 2012 - 09:01 AM.


#58 road2freedom

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Posted 30 April 2012 - 11:57 AM

Sorry, I should clarify - by details I mean the vehicle specifics including model, trim, options and pricing given before TTT, Also the same details on the trade would be helpful. The reason I'm interested in this is to see if you are truly getting a good deal or not. Getting the best deal saves you money, reduces your payments, and could make it more feasible to refi down the road.

The decision on the wheels is up to you. If it were me I'd just put back whatever came with the car.

What exactly have you signed with the dealer so far?

Other thoughts that have been bouncing around in the back of my head since yesterday...
-I think you might be able to get a better rate since you've made auto payments post BK
-I think you are biting off too much car given your work scenario.
-It's highly unlikely that you are getting more for your trade than they will make on in (unless they are getting their $$ from the purchase)
-Having your payments pushed out because the rate is higher than expected is not a good idea. The answer here is to put more down or buy less car.
-Considering an expensive extended warranty is probably not a great idea when you are sweating the payment as is.
-It is very unlikely you will be able to refi this car in a year, at least without some money down. At 6% I'd expect your LTV to over 100% for about 3 years, if not longer, depending on final terms. I would probably have a better idea once I know exactly what you are buying.

#59 Medsport

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Posted 30 April 2012 - 01:00 PM

Ok, right now I have a 2010 Genesis Coupe 2.0t track (manual) with 30k miles. I'm looking at a 2013 Genesis Coupe base 2.0t with automatic transmission. There are pretty much no options on these models. My car MSRP was about 27.2k new and I was paying 375/m on a 3 year lease. The new car stickers at about 26.5k. I'm not sure what the total was before ttt, but taxes and fees total otd was just over 27k I believe. The rate (5.49) is the best I've been offered so far (the other two were 6.25 and 7.24). Yeah I decided against the warranty. I've filled out all the paperwork. They even set up a first payment date of June 13. All that is left is to take delivery and give him a check for the downpayment (1k). He's supposed to be here in the AM. So what are my options? I spent a couple hours searching for info on backing out of a loan and I can't seem to find a definitive answer. It sounds like I might be able to since I haven't taken delivery, but would it effect my credit if I did? btw, I'm sure I would owe the dealership something too since they had to locate the car, have it shipped to the dealership and then having the salesguy drive it to my house (55 miles). He was even supposed to help me take my intake off and put the original back on. Also you never answered if I will owe the lease company anything extra if I keep it and turn it in, if its even possible now? For what its worth, the salesguy even said he would send me 20 a month if my hours get cut to help make payments and wrote it down on his business card and gave it to me. I know, most likely just a ploy, but still.

Edited by Medsport, 30 April 2012 - 01:15 PM.


#60 road2freedom

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Posted 30 April 2012 - 02:11 PM

I'm not sure what the total was before ttt, but taxes and fees total otd was just over 27k I believe.


You really should know exactly what you are paying for the car, any fees, and TTT. How else can you tell if you got a good deal? Truecar show's a "target price" of $23,323 for Ohio (I think you mentioned that's where you are). This includes $244 in ad fees and $875 for destination (neither are negotiable). I don't know much about TTT in Ohio but a quick lookup tells me you have roughly $70 in tag/title fees and 5.5% to 7.5% sales tax, depending on your county. This leads me to an OTD price, since that's what you provided to compare, of about $25,143 assuming the full 7.5% sales tax. There's an extra $2k in the deal somewhere at this point. Since they are telling you that you are not paying anything towards the lease I'm going to assume this is mostly extra profit, on top of what they already make at the $23.3K price.


The rate (5.49) is the best I've been offered so far (the other two were 6.25 and 7.24).

I really can't remember if we talked about it already, but have you tried CUs? Did the guy at Ford ever get back to you? It's not a terrible rate for a rebuilder, by any means, and I wouldn't fault you for accepting it. But since you are in a budget crunch I encourage you to shop shop shop.


Yeah I decided against the warranty.

Good

I've filled out all the paperwork. They even set up a first payment date of June 13. All that is left is to take delivery and give him a check for the downpayment (1k). He's supposed to be here in the AM. So what are my options?

Marv or one of these other guys probably knows best, but afaik, since you have not taken delivery nor made the downpayment, you are not obligated to the purchase.

btw, I'm sure I would owe the dealership something too since they had to locate the car, have it shipped to the dealership and then having the salesguy drive it to my house (55 miles). He was even supposed to help me take my intake off and put the original back on.

Really, it's a cost of doing business for them. I hate to seem them work hard on a deal and take it on the chin but I'm not sure you owe them anything really, unless you made a non-refundable deposit. If you decide to back out I would let the salesman know tonight so he doesn't waste his time. Don't think he will give up on the deal either - it might create some incentive for the dealership to lower the price and continue to sweeten the deal.

Also you never answered if I will owe the lease company anything extra if I keep it and turn it in, if its even possible now?

Lease stuff is not my forte - you would have to look to one of these other guys for that.

For what its worth, the salesguy even said he would send me 20 a month if my hours get cut to help make payments and wrote it down on his business card and gave it to me. I know, most likely just a ploy, but still.

It's not worth the ink he used to write on the card. Do you really think he would help you with $20/mo for up to 75 months ($1500 total) based on something he scribbled on a business card? I'd like to think there are honest people out there that would, but I'm inclined to not believe it from a salesman. He's not making $1500 on the sale himself. This is a sleazeball move IMO... and makes me care less about their effort to get the car for you. This tells me that he takes you for a fool. Sorry for the brutal honesty.

I don't want to give you blanket advice because I clearly don't know you personally, but I am worried that you are getting yourself back into trouble. Even ignoring the details of this deal, with your job situation and the fact that you are stretching your budget for the car as described, from one BK'er to another, you really should reconsider what you are doing here. My suggestion is to get something much cheaper for now, used or new, until the job situation is more stable. If the job doesn't change, you then have extra money to save or put to good use elsewhere. Seriously - think long and hard before you take this deal.

Edited by road2freedom, 30 April 2012 - 02:14 PM.


#61 sportster

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Posted 30 April 2012 - 06:01 PM

I shudder at the thought of a car loan over 60 months - especially on a domestic model.

As was stated in the thread earlier, you should absolutely never negotiate on payment. See, to get the payment down you ended up with another 15 months on the loan. These types of deals often lead to rolling lots of negative equity into the next car when this one needs to be replaced before the note is paid off.

Good luck with everything; hopefully the car does fine at least until the 76th month.

#62 Medsport

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Posted 30 April 2012 - 08:22 PM

Hey road...the truecar price was actually 25,973. Its a 2013 auto, you were probably looking at a 2012 man. The price went up about 2k across the board on these, but they were some very good upgrades. Its probably too late to do anything now about the deal though right?

#63 road2freedom

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Posted 30 April 2012 - 10:12 PM

Ah, ok. That makes a little more sense. You haven't said how much above 27k the OTD offer was, so I'm not sure quite how much they are making. It seems more reasonable given the 2013 cost.

I still think in general you might be pushing yourself a bit.

I don't think it's too late, but it is up to you.

Edited by road2freedom, 30 April 2012 - 10:14 PM.


#64 Medsport

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Posted 01 May 2012 - 06:51 AM

Well, I still don't know about the hours at work. That is the main thing. It looks like I will have some OT for the next couple of paychecks at least and I would also have about 2k "cushion" even after paying the 1k down that will help for awhile if my hours are cut. We get a bonus of about 600-800 twice a year two. I just wish I had a couple weeks I could hold off to be sure. I know I can cut back a little on expenses. I already plan on cutting cable and maybe getting netflix or something (approx. 50 savings) and if I just stop taking out 50 a week on "misc." stuff like eating out as much and cut that back to every 2 weeks or so there's 100 more saved a month. I should be able to get a part-time job too as I have about 4 years experience as a nurse and if all else fails and I have to I could always get a part-time gig at a fast food place or something.

I'm sure they won't go for me waiting and will give me all kind of c*** if I try to back out. But you're saying legally I can with no repercussions? If I was to back out would it effect my credit or in the least bar me from obtaining credit from the place that granted it to me? It sounds like the same place was going to approve me with the other purchase I was considering so right now there are only one or two places that would even approve me it seems.

#65 road2freedom

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Posted 01 May 2012 - 10:56 AM

IME the deal isn't done until you have given them money/equity, handed over your trade, signed all forms, taken delivery and the finance company funds the purchase. Basically, this is because you aren't fulfilling the obligations of the contract.

The dealership may give you some flack for wasting their time. Remember though - they still want to make the sale so I would be surprised if they aren't nice as possible and try to find a way to close the deal, even for a cheaper car if you decide to go that route.

#66 road2freedom

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Posted 01 May 2012 - 07:19 PM

Dare I ask? :grin:

#67 Medsport

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Posted 03 May 2012 - 09:02 AM

Well I took it so I guess I'm stuck now. It is a pretty nice car and my hours look to be staying the same for now at least so I may be ok. I just have to work all the OT that I can while available and save up a little. There are some problems with the car already though. I found some "lines" on the car and the dealer said they were just from the tape and will come off after a couple washes. I guess they got the car late and didn't detail it like he said they were going to. Then he pointed out a scratch on one of the gauges, but said they would take care of it if I dropped it by. After he left I went out and tried to remove the lines but nothing worked. I then found some more lines or scratches on the trunk. To make matters worse the TPM light came on and hasn't gone off and I have a small chip on the hood after one trip to work and back. So after some bitching on my car forum I finally called him and he said he will try to work out a time for somebody to pick the car up and give me a loaner for a day or two while they fix the problems. I would drive it there myself but its almost 60 miles away and would make for an all day affair if I waited while they fixed everything. And to top it all off the car already has over 500 miles on it and I've only driven about 80 of those myself. I also have to borrow my parents truck to take the stock wheels over and pick up the 18's (in which he originally lied to me and said I could keep them). I was thinking of saying tough luck, but the more I think about it the older 18's with the better tires in the back would be a better choice in the winter than the stock wheels to keep them nice longer. Oh well, as long as he fixes everything it should be ok, but I definitely won't recommend this dealer.

#68 road2freedom

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Posted 03 May 2012 - 09:58 AM

Congrats on making a decision. It sounds like you might have a long road ahead to work out the kinks. Just make sure you follow through.




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