So scion tried to screw me today (SoCal)

[ntron1]

The first question you should ask is how much is the car. You are buying a car not a monthly payment. You are free to buy what you want, when you want if someone will loan you the money. The dealer wants to sell the car however the finance company must have some concern about the risk involved to require that much interest.

I bought two new cars the same day earlier this year. A $30K Mini and my BRZ. In both cases the dealers started with how much do you want to spend per month and my answer was $0. After getting a confused look, I told them I wanted to pay once in $100 bills and I was willing to pay $XX,XXX for the car. We agreed on a price then I went to the finance guy to discuss what options were available for financing.

You have read the wide range of opinions and as a business owner, you certainly understand the risks involved. Please do not fall back on the "No one will give me a break" story. Hard work is the only thing that will get you ahead and there is a time and place for everything. Only you can decide if now is the right time and if any particular dealer is the right place.

[86-tundra]

Originally Posted by Carsten

I understand everyone argument about buying a cheaper used car. And I have been paying off a cheap used car for some time now but it still hasn't built any credit. And I have a very stable job and make close to around 60k a year at the moment(wedding photographer) So a 500 car payment is within reason for me. And I know with that kind of money I could just save and by the car in cash, but that would take a good year+ to save up for. Obviously if this loan doesn't work out than that will be the plan, but waiting a year plus to buy this car is a little long for me.


But I'm understanding the apr dilemma, I understand how interest works but when I've used the scion calculator at the same interested I just wayyyyy different numbers.

Edit: just realized how illiterate my iphone autocorrect makes me sound.

I'm 22. I just graduated college. I went into the dealership with a great credit score (~720) and qualified for their lowest APR rate.

No questions asked, no cosigner. I put $1500 on the car (basically paid the taxes on it) and financed for 3.2%.

I pay $459 over 5 years. At 3.2% apr I pay a grand total of $28.5k for a $25k car.


Did they report your credit score to you? I think the 'stable job' thing may be holding you back as well. As a wedding photographer, it's not necessarily the same thing as working for a company and getting a monthly/bimonthly paycheck. That's what people want to look for. Not the idea that you could go without work for a few weeks, gaining no income. Steady income is key.


That being said, I would highly, highly recommend against buying a car for that price. If you're going to end up paying close to $50k for this car, you're throwing money in the garbage my friend. By the time this car is 5 years old, you've invested close to $50k in it, and it's going to be worth close to $15k

I suggest looking into building your credit (both short term and long term) before investing. Otherwise, get a cosigner like one of your folks that will guarantee you.

I can't say I'd recommend to anyone buying a NEW car for more than 5% APR

[86-tundra]

Originally Posted by thill

Yeah, I thought it was a 10 Series.. Looking at his post again, this is a 2013 AT with just TRD exhaust.. I would not pay more than $26K for that right now with the 14's out. No way that should be more than $28.5K OTD...

With $10K down his payment should be in the $450 range, even with a crazy high 14% APR....

Still, I pay $450 over 5 years and put $1500 down.

Thats $8500 difference on a $25000 car. Big difference.

[Byebye]

My question is how much are you willing to pay per month? You know you only pay interest on what you owe. If you financed with them today at that rate and paid the car off in a year then you would only pay interest for one year vs. 5 or 7. Sure the apr sucks but if you stayed disciplined and paid as much as you could every month until it's paid off you would save a ton of money. You could also consider refinancing within a year or two at a lower rate.

Also multiple credit checks in a month for an auto loan won't hurt. It's just an indication that you are in the market. Just don't do it a bunch of times month to month.

[Prog]

Originally Posted by Carsten

This is something I have considered, my fiancé actually owns a retail business that was handed down from her father. But unfournately she has ZERO credit as well so that Is a no go. Another unfortunate problem is that I am a foster child so I don't have parents to consign for my either. So consigner are in short and money in abundance(my fiancé also makes around 60k a year) but it's a bunch of buaracy crap. I'm gonna hit the local credit union and see what they can do for me. But chance are I will be outright refused because of my job.

Sorry, but I'm going to be that guy because no one has pointed it out yet and you keep saying it...

The word is "co-sign" or "cosign," not "consign." Consigning is, for example, if you were to take an old cuckoo clock to an antique store and ask them to sell it for you, with them keeping a portion of the profit once it sells and sending the rest along to you.

[Brndn704]

I'm just going to throw this out there. Instead of trying to be a dictator like a few certain people try to be on here, I'm just going to give you friendly advice. I have made mistakes in my life, and I try to help people from making the same mistakes. I wish I would have listened to my parents about money, because it took me a long time and hardships to figure it out myself.

Unlike everyone telling you to get a credit card and build credit, I'm going to tell you the exact opposite. I know you really want this car but don't jump into it like a lot of the users on here have. The best thing for you to do is just save up for it. Pay in cash, and it's YOURS. No one can take it away from you (legally).

It does seem like you have your priorities in order. (Sorry Alex, but your post was a little rude.) Just keep up the good work and make the smart move. In the end it's your decision, just make a good one that will help you and your future family. 72 months is a long time to make payments on something.

[humfrz]

Originally Posted by thill

Sorry, you need to build up credit before you buy a $25-30K+ car. .......

Very sound advice.

thill ..... I find your little video clip "distracting" .....



humfrz

[mav1178]

Originally Posted by fistpoint

Your numbers are correct, but they are still asking about $5-6000 extra for the car before any APR is added. A 2013 AT w/TRD exhaust shouldn't cost more than $28000 after TT&L because the 14's are out.

His APR should be applied to that number minus whatever down payment, in his example $10k. That leaves $18000 financed @ $428 a month.

Why are they asking over $30k for a 2013 AT w/TRD? This guy needs to make a cash offer to find the price of the car first(+TT&L) then have the APR applied to that. That's how you always do it, price of car first, then calculate the TT&L yourself. The T&L is always going to be around $90-150 total, anything higher is padded, any other tack-ons are bullshit.

Why not? It's obvious OP is getting the shaft, so let's see the shaft:

2013 MSRP $26355 (AT)
I added :
fog lights
rear bumper applique
rear spoiler
floor mats
BeSpoke audio
TRD exhaust

New MSRP of $29347. Adding TTL in California and that figure will be around $32500 or $33000...

So my numbers aren't off at all. OP never mentioned any options, and the fact that Scion charges $1100 for a TRD exhaust is one of the many ways he's getting ripped off. For $1100 I'd rather buy something much more exotic.

In any case, the numbers are correct.

-alex

[mav1178]

Originally Posted by Logical

It does seem like you have your priorities in order. (Sorry Alex, but your post was a little rude.) Just keep up the good work and make the smart move. In the end it's your decision, just make a good one that will help you and your future family. 72 months is a long time to make payments on something.

Priorities in life, yes he has it in order.. but (financial) priorities with respect to this car purchase and where he is in life money-wise, this is about as bad of a purchase as you can get.

It's obvious OP has all the money stuff taken care of. What I don't understand is how he can have a $60k job (assuming ~$35-40k take home after 1099 taxes) and even consider buying a car with financing with such horrible APR being offered. I have no idea what his credit score is, but when I first shopped for my car I was offered a max 4.59% APR with a then-credit rating of ~720. I ended up getting something a lot lower than that just by getting lenders to compete.

In any case, 14.99% may be okay for a normal credit card, but it sure as hell ain't okay for something that is tied to collateral. The best bet is to save $20k+ and finance the remaining amount, and build credit with as little principal as possible.

Oh, and get your "out the door" price as low as you can go. The mere fact that we're talking about a $33k Scion FRS makes my fully-loaded BRZ look cheap.

-alex

[WillBRZ]

thats crazy...i'm 19 now but 18 when i bought my BRZ, 15k down and 4.99% 60 months i refi'd last week to 2.24% for 48 months...I didn't have much credit history and my cosigner was my mom who has pretty bad credit due to some trouble she had a couple years back.

[Porsche]

Originally Posted by Carsten

Well actually yesterday, anyway I went into Dch of scion in Oxnard California. I went in to buy an frs 10 series but I'm 19 years old and haven't yet established any credit

Even in California you should be able to find a 2013 Scion FR-S at a price below MSRP. Discounts will vary by dealer; your job is to find the best overall deal. You may need to drive elsewhere, possibly even to Colorado where Clint appears ready to sell you a 2014 at a substantial discount.

You are clearly confused. You say you use a Scion payment calculator, but the numbers come out wrong. Find a different calculator, then. Some online calculators ARE wrong; I've found them. I use my own personal calculator, one that I recommend to you all: Texas Instruments BA II Plus Professional.

The information you provided to us is insufficient. You do not show the cost of the vehicle and add-ons.

Let's start at the beginning.

You are purchasing TWO things here:

1) A new automobile

2) Money to buy that automobile

Determine the cost to you for the automobile. Get a written, line by line, itemized account of the car purchase. Start with the price of the car. Add accessories. Add extended warranties, etc. Add dealer "processing fees." Note the TOTAL price of the car.

Now add title, and license fees.

Subtract the value of the trade-in car if applicable. (in most states)

Compute the correct sales tax (could be as much as 10% in some counties in California, I understand).

TOTAL for all of above.

Make certain that you understand and accept each of the items added above. Most are negotiable, save for tax, title, and license fees.

That should be the cost of the car. Your research will confirm whether it is a fair price in your area.

Me, for instance? It was easy. MSRP in early 2012, and happy to find a dealer who did not add Additional Dealer Markup. Then a BS paperwork fee of $139, and TTL. Done. Easy.

Now, the money purchase.

Subtract any down payment from the TOTAL above.

The remainder is your loan amount.

The interest rate is negotiable. It should be less, for instance, if you agree to pay off the loan in a shorter time period. Go online, and make phone calls to lending institutions to learn what interest rates you can get.

Your current situation in life may mean that no one will give you a rate lower than, for example, 14.99%. We'll just use that as an example. You can beat that.

The cost for #2, the money, depends on the APR, the interest rate, and the term, the time in months to repay the loan.

Let us say that you borrow $20,000. Now study the figures below:

$20,000 for 60 months @ 14.99% = $475.69/mo. x 60 mo. = $28,541.40

So, the cost to borrow this money on these terms = $8541.40

They gave you $20,000. You gave them back their $20k plus $8541.40. Clear?

The same loan but @ 4% = $368.33/mo. x 60 mo. = $22,099.80

So, the cost to borrow this money on these terms = $2099.80

Therefore, getting a 4% APR vs. 14.99% will save you, in this case, $6441.60.

Lesson?

Shop for your money as carefully as you shop for your car or house, or whatever.

I think that any car loan carried longer than 60 months is foolish. Don't do it. If you need that long, then you're buying something too expensive for you. Even better, would be a 48 month loan.

One of the problems for long-term loans, anything longer than 48 months, is that the owner is often upside down in his loan, and remains that way for a long time. That's financially dangerous. Dealers actually encourage buyers to do this.

The bigger your down payment, the less you borrow, the lower your loan costs. And if you have more invested, the lender might give you better terms. If you default, the lender will repossess your car, and keep your down payment.

Do your homework before approaching the car dealer. Know what the car should sell for in today's market, and know what your best loan interest rate is from independent sources. As a rule, car dealers will beat your best interest rate found elsewhere. Make certain there is no pre-payment penalty on any loan you ever take out for the rest of your life.


Finally, exercise your option to re-finance at better terms when you can. Do the math, though, and confirm that the new deal is really better. Consider shortening the term, too.


Any questions?

If not, then say "Thank you, Porsche."

[humfrz]

Originally Posted by Porsche

Let's start at the beginning.

You are purchasing TWO things here:

1) A new automobile

2) Money to buy that automobile


If not, then say "Thank you, Porsche."

WOW - now that was impressive .....

Thanks, Porsche .....

humfrz

[humfrz]

Well, Carsten, I see you got lots of good advice.

Please allow me to offer another alternative. If you and your SO are going to be "one" and you two make a total income of $120,000, you should be able to "save" $30,000 within a year .... then go pay cash for a new 2014 BRZ/FRS next fall.

Meanwhile, it would be a good idea to build/repair your credit ....

humfrz

[Rustyspoon]

Buy an mr2. Only slightly slower then the frs. it only cost 1000 bucks.built in 86 and everything still works. Needs a few thing (perhaps 2k in work if you pay a shop to do it) or buy the frs. In the long run, is a few grand really going to make or break your life?