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Smart Shopper Questions About Financing New Vehicles
2253 messages, Last post on Nov 18, 2009 at 12:07 PM
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| 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. | |
| I have only lived in the US for about a year and don't yet have a credit history here, although I do have one in Canada. How hard would it be to get financing based on my Canadian credit history, or is this even possible? | |
| That is a very good question, Dale. As long as you had good credit in Canada and could proove it I really don't see any reason why you would have a problem getting financing. | |
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I'm looking at a new Chrysler and have read about their "gold key plus" program which is similar to a lease, but you own the car..???? Anyone experienced or knowledgable about the program and its advantages and disadvantages? I would appreciate any wisdom! |
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| Parker, I believe that the Chrysler "Gold Key Plus" program is what is referred to as a "balloon" program. This is actually a type of financing so you do own the car, but people associate it with a lease because of its low monthly payments. Basically a balloon note allows the customer to make much lower monthly payments than normal financing, however at the end of the note the customer must make a large "balloon" payment to pay off the rest of the car. This final payment is usually very high. Depending upon the price of the vehicle it can be well over $10,000. This is not a very popular type of deal because people rarely have the cash to make that large payment at the end of the note. Although I have heard of individuals who get a balloon note on a car and then finance the large payment at the end. I believe that this type of program is much more popular in the South. | |
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