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Post Reply Buying Your 1st New Car :)
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Posted 3/11/17 , edited 3/11/17

Khaltazar wrote:


dulun18 wrote:



Yes. This Mazda 3 will be my first New car. I've been driving the 20+ year old car since college. this is my first time buying a New car


Congratulations, I know you will love it! As far as the Finance Office, they will definitely try to get you to spend more, but just decline everything, it is all a scam (you can get better deals elsewhere - as I'm sure you know from your research). Don't fall for their Gap Coverage (get that through your Auto Insurance company - unless you put a decent down-payment such as $4,000+). The dealership I dealt with tried to get me to get a $5,000 package and they said "this package will cover you COMPLETELY 100% on all repairs, oil changes, etc. that your warranty does not cover for 10 years." They make it sound really good, like "oh, if my transmission gives out and I need it fixed that is around $2,000+ so $5,000 for 10 years coverage sounds great!" But it is just something to increase their profits. The $5,000 you pay is really an insurance policy the dealership will take out on your car (but it might cost them $2,000 for that policy) and if you never use it, great for them, if you do use it, the dealership doesn't care because it's not their money they are spending to fix your car.

Just keep saying no to any additional package and you'll get out of there quickly. Don't even get the basic additional package that covers oil changes and tire alignments, etc. for 5 years because that costs more than you would actually spend in 5 years. The reason they offer those packages is because people eat them up all the time. "Oh, $5,000 more for 10 years of complete coverage?" and the finance officers smile at their large commission they are getting for that sale. Finance Officers can make much more commission than the actual sales associate does selling you the car. The sad thing is people keep falling for these packages because they say oh what is an extra $50 - $100 a month, that is nothing!

I'll take a picture of my car and share it either today or tomorrow. I also got a dash camera because I am paranoid that someone will try to back into me and claim I hit them or something.


do car salesman accept tips? since i got a good deal on the car.. i was thinking of giving the carsalesman i'm dealing with $50 for his assistance..

this is one of my threads i know my way around cars a bit so i'll be saying "NO" to a lot of things
http://www.crunchyroll.com/forumtopic-981481/car-repairs-discussion-thread

i heard of those lifetime oil change, etc.. most of them terminated the program after a few years

my goal is to get out of the dealership with the car with the out the door price of $18,599 + 3% or less interest.. nothing more

I think the reason they were willing to give much such a lower price is because i told them i'll be buying 3 new cars within the next 2 years..

I'll buy another one around December 2017. I think that's why.. they want me to come back.. but i'll not come back unless they have the lowest deal in the county i'm in!


$50-$100 a month// that's $600-$1200 a year! for things that you probably don't even use!!

i think GAP insurance is only for lease vehicles
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Posted 3/11/17 , edited 3/11/17
I just can't do it. Any time I get the itch to buy a brand new car, I end up talking myself down to a good used one. I am a cheap bastard.

I also don't finance cars. Sometimes it makes sense to borrow money, if investing elsewhere can earn you more than the interest on the loan. But if you are just doing it to afford something otherwise beyond your means... keep saving until you can buy it safely. Just my opinion, and I'm much more conservative with money than most people I know.
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Posted 3/11/17
My first time experience buying a new care: Went in and test drove a few. Got a couple of quotes from the dealers what they would give me for them. Left and saved up for a few months till I had the money and they were doing some end of the year sales. Went back in, dropped a big fat check, grabbed the keys and walked out like a boss.
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Posted 3/11/17
this is my car now, 2015 Jetta. My parents bought me it for college lolz

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Posted 3/11/17

dulun18 wrote:


Khaltazar wrote:


dulun18 wrote:



Yes. This Mazda 3 will be my first New car. I've been driving the 20+ year old car since college. this is my first time buying a New car


Congratulations, I know you will love it! As far as the Finance Office, they will definitely try to get you to spend more, but just decline everything, it is all a scam (you can get better deals elsewhere - as I'm sure you know from your research). Don't fall for their Gap Coverage (get that through your Auto Insurance company - unless you put a decent down-payment such as $4,000+). The dealership I dealt with tried to get me to get a $5,000 package and they said "this package will cover you COMPLETELY 100% on all repairs, oil changes, etc. that your warranty does not cover for 10 years." They make it sound really good, like "oh, if my transmission gives out and I need it fixed that is around $2,000+ so $5,000 for 10 years coverage sounds great!" But it is just something to increase their profits. The $5,000 you pay is really an insurance policy the dealership will take out on your car (but it might cost them $2,000 for that policy) and if you never use it, great for them, if you do use it, the dealership doesn't care because it's not their money they are spending to fix your car.

Just keep saying no to any additional package and you'll get out of there quickly. Don't even get the basic additional package that covers oil changes and tire alignments, etc. for 5 years because that costs more than you would actually spend in 5 years. The reason they offer those packages is because people eat them up all the time. "Oh, $5,000 more for 10 years of complete coverage?" and the finance officers smile at their large commission they are getting for that sale. Finance Officers can make much more commission than the actual sales associate does selling you the car. The sad thing is people keep falling for these packages because they say oh what is an extra $50 - $100 a month, that is nothing!

I'll take a picture of my car and share it either today or tomorrow. I also got a dash camera because I am paranoid that someone will try to back into me and claim I hit them or something.


do car salesman accept tips? since i got a good deal on the car.. i was thinking of giving the carsalesman i'm dealing with $50 for his assistance..

this is one of my threads i know my way around cars a bit so i'll be saying "NO" to a lot of things
http://www.crunchyroll.com/forumtopic-981481/car-repairs-discussion-thread

i heard of those lifetime oil change, etc.. most of them terminated the program after a few years

my goal is to get out of the dealership with the car with the out the door price of $18,599 + 3% or less interest.. nothing more

I think the reason they were willing to give much such a lower price is because i told them i'll be buying 3 new cars within the next 2 years..

I'll buy another one around December 2017. I think that's why.. they want me to come back.. but i'll not come back unless they have the lowest deal in the county i'm in!


$50-$100 a month// that's $600-$1200 a year! for things that you probably don't even use!!

i think GAP insurance is only for lease vehicles


No, GAP insurance is for the difference in vehicle value to amount of principal left on your loan. Say your car is worth $20,000 when you buy it, you put $2,000 down so finance $18,000, when you drive off the lot it loses value say $17,000 instantly is the new value. If you get hit once you left the lot, the bank you finance your car through will get a check for $17,000, but then immediately demand $1,000 from you (plus interest).

Why would you buy another car in 9 months? That kills the value, just think about it. If you pay off a $20,000 car, when you trade it in, it will probably be worth around $14,000 in excellent condition. You just paid $6,000 a year to lease your car which is $500 per month AND YOU DON'T EVEN OWN IT ANYMORE! Avoid that at all costs. I won't get another car until my current car either (a) gets totaled, (b) costs more to repair than it is worth, (c) I have to keep repairing it over and over (several mechanical problems to the point it becomes a pain to deal with).

Don't tip the salesman, the person who sold me my car told me after I paid for it (even though his manager said he was losing money on it) that just for making the sale he gets $800 from commission. This is how a good salesman/saleswoman can make well over $100,000 a year. The sales associate is doing their job. If you want to make their day and make some money from it, recommend your friends to buy cars there for (a) the salesman can get more commission, (b) you get a recommendation gift card (usually $100-$150).
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Posted 3/11/17 , edited 3/11/17


i learned a lot from Consumer Reports

http://www.consumerreports.org/buying-a-car/car-sales-tricks/




no.. no. i meant i'll be buying another car. We have 3 cars in this house and they are all used cars I'm planning to buy new cars to replace all 3 of them over the period of 2 year. I'm tired of dealing with mechanical problems of used cars.

not all car salesman will make six figures a year though.. like not all real estate agents will be making millions a years

They work based on commission

if you are not a good salesman you can ended up with nothing for the day or a measly $50 for 12-14 hr of work.. bottom of the list ones will be owning the dealer money

i read through similar articles like this before
http://lifehacker.com/career-spotlight-what-i-do-as-a-car-salesman-1674564371

if a customer was helped by another car salesman you will have to split the commission.. they call it "mini" or something
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Posted 3/11/17 , edited 3/11/17


I see, but I still recommend GAP insurance from your auto insurance company, it is most definitely not just for leasing. I know someone who got hit the moment he left the lot and even after putting $2,000 down he owed the bank $1,000 plus he didn't have a car anymore. I pulled that example as reference and threw out estimated numbers for the car value (except in his case it was a Mustang GT). GAP covers the total remaining balance after the car has been totaled or stolen (it doesn't have to be a lease vehicle).

Here is my car (2016 Mazda3 i SPORT 4-Door Sedan Soul Red Metallic Automatic):

http://imgur.com/a/80DWi
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Posted 3/11/17 , edited 3/11/17

Khaltazar wrote:

I see, but I still recommend GAP insurance from your auto insurance company, it is most definitely not just for leasing. I know someone who got hit the moment he left the lot and even after putting $2,000 down he owed the bank $1,000 plus he didn't have a car anymore. I pulled that example as reference and threw out estimated numbers for the car value (except in his case it was a Mustang GT). GAP covers the total remaining balance after the car has been totaled or stolen (it doesn't have to be a lease vehicle).

Here is my car (2016 Mazda3 i SPORT 4-Door Sedan Soul Red Metallic Automatic):

http://imgur.com/a/80DWi


the car insurance will cover for the cost of the car if it's stolen or totaled. If you are financing you will required to have both liability and collision i believe

personally.. after i paid off the car in 4-6 months i'll drop the collision coverage.. liability with under-insured +un-insured will be fine around

it's pretty normal to have dashcam in the car now a day-- You can also use your phone as a dashcam

you are putting yourself at risk every time you get into a car

DPS talks about the dangers of distracted driving after crash caught on camera
https://www.youtube.com/watch?v=-pp8yAKXD6I


that's a nice looking car there. what is it with Mazda and red color ? I picked white because it's pretty hot here i want to avoid dark color - heated steering wheel/seats, etc.. are pretty useless features here

you said you paid $21,500 out the door? what's the interest rate you got at the time ?

I checked the credit union website just now new car 2015 and up will be 2.49% for loans up to 36 months

i might go for 48-60 months instead-- to keep the amount of interesting they will be earning from me low until i can pay the loan off in full in the next 4-6 months


I think i understand how new car buying works now.

for pay in full cash customers-- they will not budge on the vehicle price beyond their desired profit margins

for customers like me who have to finance -- they will allow me to get a pretty good deal on the car price but will try to get those profits back in the finance department

if you also do trade in they will undervalue your trade (like gamestop!)

so in my opinion the best way to keep the most money in your pockets as possible is to put a certain amount down and finance the rest... since there's no pre-payment penalty-- if you paid off the loan after the 2-6 months (the sooner the better) they can't earn as much interests off you as predicted

i should have enough money to pay for the 2nd car in full.. but i'll not tell them that i'll pay in full since i'm sure they will not allow me to negotiate price of the car down pass their dealer's true cost .. only through finance they will allow me to do that. but instead of making payments over 48-60 months i'll pay the car off on the 2nd month

lowest price on the car price + only 2 months of interests = much better than paying cash in full for the car imo..


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Posted 3/12/17
I wouldn't buy a new car. It's just not a good deal, ever.

I mean, given a choice between

1. New Honda Accord

and

2. Used sports sedan

hmm gee tough choice there but I'll take the sports sedan...

It looks so darn cool that just about every other time after I park the car I look back at it and see how cool it is
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Posted 3/12/17

Khaltazar wrote:
Here is my car (2016 Mazda3 i SPORT 4-Door Sedan Soul Red Metallic Automatic):

http://imgur.com/a/80DWi


the sedan version of Mazda 3 has 2 packages available while the hatchback only has one. The appearance package does make it more sleek ($1300)

Mazda needs to put a V6 in their V6s and CX-3/5. I don't get why they can't provide the customers more options :/ Their G-vectoring in the 2017 models dragged the overall MPG of their cars down. The MPG for Mazda cars are now even lower than Subaru cars.. and they are AWD cars..

@dulun18 that's a pretty dang good price for the car! Just make sure to avoid the useless options and insurances ...if they can't make money from the car's price they will try with the finance part of the deal.. so be on your guard

You already know your credit score and the rate so it will be easier-- keep an eye out for their "finance reserve"

http://www.bcsalliance.com/auto_financing_kickbacks.html

buying a new car is ideal

- if you don't know anything about car repair
- always on the road
- jobs that will not allow "car trouble" excuses
- will be keeping them for a long time
- peace of mind
etc

personally, if you have siblings and had to deal with "hand me down" stuff i'm sure you understand the similar concept. I'm tired of used cars as well.

My accord is falling apart and i think it's time to pass the problems to someone else if they want to buy the car from me


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Posted 3/12/17


Yes, I paid $21,500 OTD, my interest rate at the time was 3.24%, but it didn't really matter because I knew I was going to pay it off in 6-12 months so $30~ in interest a month for 6-12 months is not too bad. Just stick with 60 months financing (it's average - but make sure the bank you finance through is okay with paying off your loan early - some are NOT okay with that and will either not allow it or penalize you for it).

Yes, if you finance a car through the dealership they get some kick-back for referring you so they really like it that you finance through them. If you finance through your own bank they will treat it as if you paid in cash. However, beware because some banks the dealerships use WILL NOT let you pay a loan off early and will demand for you to pay interest the entire loan period.

For GAP insurance, you need to get it. Full coverage insurance does NOT cover it if your car is stolen or totaled. Go to any bank and ask them or even call your insurance company. Unless you put down more than 25% of the vehicle's current worth, you will be screwed if you get in an accident before then. Once you get to only owning 75% on the car, you can just drop your GAP insurance (it's only $5-7 extra a month on your insurance policy - ONLY GET IT FROM YOUR AUTO INSURANCE DO NOT TAKE IT FROM THE DEALERSHIP!!! <<< important). Full coverage insurance which is liability and collision coverage will only pay out your car's current value.

Let's use my car for an example.
I paid $21,500 and put $6,000 down so I financed $15,500 so I paid well more than 25% so I did not get gap insurance because my off the lot value for my car was above $15,500 (it was like $17,000~). However, if I didn't put any down and financed $21,500 and got in an accident within the first month of owning the car, the insurance company would cut the bank a check for $17,000 (current worth of the car) and then the bank would come after me IMMEDIATELY for the remaining $4,500. If I paid that extra $5-7 a month through my auto insurance company they would cut the bank a check for (a) totaled value of the car at that moment $17,000, (b) plus they would ask the bank how much is the remaining balance of the loan and cut the bank another check for $4,500. Do you not ever hear commercials that warn you against this? Auto Insurance companies will ONLY pay the minimum value they can, they can care less how much you paid for your car. Their goal is not getting you a new car, it is minimizing their loss and maximizing profit.

If you don't trust me, just call up your bank you are financing through and some insurance companies and they will tell you what GAP insurance is. It is to GAP the bridge between what the regular full coverage liability and collision will cover (current value of car) and your remaining principal on the car after totaled value is reduced (so that you owe the bank nothing). I don't work for insurance companies, I am just trying to impart some of my own experience to others.
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Posted 3/12/17 , edited 3/12/17
i got the car.. for the price we agreed with no extra craps

$18,599 out the door with 36 months finance at 2.39% .. didn't know i was 40-ish points from 900 credit score

i put a few grands down as down payment and finance the rest-- i plan to pay off this car in 5-6 months so they will earn about $90-ish from interests in those 6 months..but this is not bad

you were right! they offered me GAP insurance and extended warranty-- they are talking with a DIY mechanic (hobby) + agent providing services for insurance companies and financial banks here.. out of respect .. i allowed the lady to continue talking about how great GAP insurance is.. and then said no in the end.

theft and totaled will be covered.. but they will only cover the market value of the car.. this is why i would suggest people to pay only 3-5% more the dealer's true cost so they don't have to worry about it later.

they can sell a car at a loss but earned incentive back when you finance through a particular bank or they can earn 2000-$5000 profit from you

if a person wants to offer $2000-$5000+ over the market value for their car.. it's their choice

this site is having some problems atm i'll type more later since i got this 3-4 times just loading 2 pages

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Posted 3/12/17

dulun18 wrote:

i got the car.. for the price we agreed with no extra craps

$18,599 out the door with 36 months finance at 2.39% .. didn't know i was 40-ish points from 900 credit score

i put a few grands down as down payment and finance the rest-- i plan to pay off this car in 5-6 months so they will earn about $90-ish from interests in those 6 months..but this is not bad

you were right! they offered me GAP insurance and extended warranty-- they are talking with a DIY mechanic (hobby) + agent providing services for insurance companies and financial banks here.. out of respect .. i allowed the lady to continue talking about how great GAP insurance is.. and then said no in the end.

theft and totaled will be covered.. but they will only cover the market value of the car.. this is why i would suggest people to pay only 3-5% more the dealer's true cost so they don't have to worry about it later.

they can sell a car at a loss but earned incentive back when you finance through a particular bank or they can earn 2000-$5000 profit from you

if a person wants to offer $2000-$5000+ over the market value for their car.. it's their choice

this site is having some problems atm i'll type more later since i got this 3-4 times just loading 2 pages



You should remove that image, it has your IP Address.
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Posted 3/12/17

Khaltazar wrote:


dulun18 wrote:

i got the car.. for the price we agreed with no extra craps

$18,599 out the door with 36 months finance at 2.39% .. didn't know i was 40-ish points from 900 credit score

i put a few grands down as down payment and finance the rest-- i plan to pay off this car in 5-6 months so they will earn about $90-ish from interests in those 6 months..but this is not bad

you were right! they offered me GAP insurance and extended warranty-- they are talking with a DIY mechanic (hobby) + agent providing services for insurance companies and financial banks here.. out of respect .. i allowed the lady to continue talking about how great GAP insurance is.. and then said no in the end.

theft and totaled will be covered.. but they will only cover the market value of the car.. this is why i would suggest people to pay only 3-5% more the dealer's true cost so they don't have to worry about it later.

they can sell a car at a loss but earned incentive back when you finance through a particular bank or they can earn 2000-$5000 profit from you

if a person wants to offer $2000-$5000+ over the market value for their car.. it's their choice

this site is having some problems atm i'll type more later since i got this 3-4 times just loading 2 pages



You should remove that image, it has your IP Address.



thanks i fixed.. just in case..

i used the access point of a friend's house.. a correction officer and gun nut.. please don't go there looking for me

hactchbacks are more expensive yet shorter in length-- the visibility of the back window is horrible

i was driving without the headlights on for 20-30 miles.. i thought DRL was teh headlights :/ i have to go through the quick guide
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Posted 3/12/17
It'll feel like you got big black void in your chest after spending all that money on your first car and within week or month later your car break down.

I got lucky, that I didn't have to pay for Cars/Trucks out of my pocket. My Mother and Father brought them for me.

But I do think it should be paid by the person who will be driving not the parents. It'll be good Discipline for them, and also they need to keep a steady job in order to pay the insurance and Tag. Once they get out of High School, they'll be able to have part time job and attend college with ease.

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