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Smart Shopper Questions About Financing New Vehicles
2253 messages, Last post on Nov 18, 2009 at 12:07 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
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This continues topic #21 in the Smart Shoppers Conference where we talk about financing your new car. To read the earlier part of this discussion click here, then return to this topic to post your comments and questions. Nancie
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I'm seriously interested in the Passat GLX. It looks like demand may mean a lengthy wait for delivery. I'd love to order the car now, and arrange financing w/ my credit union in April/May when the car would be expected to arrive. Is this feasible, or should I wait until April when I'll have financing finalized?
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I am interested in leasing an SUV. I have never leased an automobile before and don't know anything about leases. How does a lease work? How can I be sure I am getting a good deal on a lease?
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| I would like to have A.P.R. explained. For instance if the current Chevy rate of 1.9% is one I want to consider, does it mean 1.9% times 4 if financing for 4 years? I have bought/financed cars before many times, but I was usually looking at the amount of monthly payment I was willing to pay for 4 years. Can anyone explain the A.P.R. thing to me (not too technical please)? | |
| Mesellow, I don't see any reason why you can't just put you name on a waiting list for the new Passat and work on the financing while you wait. If you decide to go this route you will probably be asked for a small deposit just to show the dealer that you're serious. | |
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Ashkan leasing is much like financing except you do not actually own the vehicle. When you lease you agree to pay the company that you are leasing from a monthly payment in exchange for being allowed to drive the vehicle for a certain period of time. This monthly payment consists of the depreciation that the car will have over the term of the lease and interest that you pay to the company that you are leasing from. At the end of this period you have the option of purchasing the vehicle that you leased for what the the company originally estimated it would be worth at the end of your lease. Or you can simply return the car and pay nothing except for any excess mileage or disposition fees that you are subject to. Here is a sample lease. Right now you can lease a 1998 Honda Civic DX Coupe for $149 per month and a $1,500 down for 36 months. When you take possession of the car you will probably be required to pay the first month's payment ($149), the down payment ($1,500), a security deposit ($150), and an acquisition fee ($495). Please note that under the terms of this lease you are only allowed to drive the car 12,000 miles per year. You will be charged for any mileage over that amount that's on the car when you return it. |
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| Isaiah5417 it is extremely important to get as low an interest rate as possible when financing a vehicle. Financing a car works the same as calculating interest on your bank account. If you do decide to buy a Chevy you are actually better off financing it at 1.9% and putting the money in an interest-bearing account than paying cash all up front! | |
| A low interest rate on your car should be part of the whole deal. On my last car purchase with my Nissan Quest, I set the purchase price: invoice +1% minus the $1500 incentive, minus the blue value/trade-in on my 94 Quest; then, I let them know I was aware of the 5.9% rate Nissan is offering and made the deal contingent upon getting that low rate. | |
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I am going to buy a Toyota 4Runner. The salesman told me that their 6.99% finance rate will end this month(3/31). Is this true? Or is it likely that this rate will continue next month? Thanks, TF |
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| Tao, I can't guarantee this but I doubt that 4Runner interest rates will increase significantly even though Toyota's programs end on March 31st. Most dealers have a large supply of Sport Utility Vehicles on their lots because of the mild winters in many areas. Although it is sometimes true, dealers frequently tell their customers that a program is going to end soon because they want to pressure them into a quick deal. | |
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