Last post on May 22, 2013 at 4:46 PM
You are in the Prices Paid - Buying & Leasing Experiences
What is this discussion about?
Hyundai Elantra, Hatchback, Sedan
#831 of 4425 Financing and prepayment
Mar 30, 2005 (6:39 am)
I just bought a 2005 Hyundai Elantra GLS. It was the base model. The only options were automatic transmission, cruise control, and floor mats. My total bottom line price was about $10,300 (this included taxes and fees). This was after the $1750 rebate and a $2000 trade-in on my car where the Blue Book value for a trade in was $1075 and $1795 private party sale (I had been offered anywhere from $100 to $1100 from other dealers on the trade-in (a 1993 Dodge Spirit in excellent condition with 80,000 miles but I put over $3000 in repairs in it since last July) so I got a great deal on the trade-in). My question concerns the price. The dealer told me that I couldn't pay cash for this price - I could only get the price if I financed it for 66 months at 7.9%. If I pay over 66 months, it adds about $2300 to the price. However, he told me that I could pay the whole price off next month with no penalty. Does anyone understand why I can't pay $10,300 now but that I can pay $10,300 next month with no penalty? It seems that everyone would get the lower financing price and then pay it off early. It sounds like a scam but I can't see what I am missing. Thanks.
#832 of 4425 Re: Financing and prepayment [vikhawk]
Mar 30, 2005 (7:51 am)
Does anyone understand why I can't pay $10,300 now but that I can pay $10,300 next month with no penalty?
Sounds to me like the dealer/salesman get their cut of the pie regardless of how you pay off the loan, and they're just working the system to maximize profit for themselves at little-to-no cost to you. The only folks getting taken advantage of here are the loan company, and I'd wager that they have so microscopically few people like you pay it all down in the first month that it's still worth their while to occasionally deal with not getting their 7.9%.
That's my guess, anyway. It sounds like the sort of just-the-proper-side-of-shady thing my coworkers and I used to do back when I worked retail for commission.
#833 of 4425 Re: Financing and prepayment [vikhawk]
Mar 30, 2005 (8:16 am)
What appears to be happening is that the dealer gets a special rebate if you finance through them. This is a common occurence, e.g. right now Mazda and DC are offering special discounts ($1000 I think) that apply only when you finance through them. I always wondered why automakers do this when you can pay off the balance early (as in, a month after you buy the car). Anyway, if you can line up alternate financing and pay the loan off right away, it looks like a good deal for you. Be sure to check the prepayment clause in the finance contract though.
#834 of 4425 Re: Financing and prepayment [backy]
Mar 30, 2005 (9:05 am)
Thanks for the advice. I did check the prepayment clause. There is no penalty.
#835 of 4425 is this a good price to pay???
Apr 01, 2005 (4:12 pm)
i have been offered a price 10,300 (before taxes, title and registration) for a brand new 2005 hyundai Elantra GLS. Its a base model. The only options are automatic transmission, and floor mats. There is no trade in or financing involved at all.
Is this a good deal ??
any help in this regard would be highly appreciated
Apr 04, 2005 (5:57 pm)
I'm being offered a price of $13,500 in NJ for a 2005 Elantra GLS Hatchback Auto with Pkg Opt 5 (cd upgrade and moonroof). Is this a reasonable price? I haven't mentioned my trade-in yet, which would be around $1,000. Thanks for any input!
#838 of 4425 Re: Good Price? [katesmith530]
Apr 04, 2005 (7:11 pm)
If that is the price before tax and license and after the $1750 rebate, that is about $235 over invoice, which is pretty reasonable. Is that a negotiated price or their first offer? If it's their first offer, you might try offering invoice ($13,265) to see what they say. You might at least see if they will "throw in" the factory floor mats, since you'll want them anyway.
#839 of 4425 Re: Good Price? [backy]
Apr 05, 2005 (5:19 am)
This is the price before tax and license and after rebate. This is their first offer, so I was figuring I could try and get something thrown in. Thanks for your help backy. I'll let you know what comes next.
Apr 06, 2005 (3:47 pm)
Got my 2005 auto GT tidal blue hatchback with package 8 in December for $14650 OTD with $3000 in rebates. Mom just got a 2005 auto GT black sedan with package 8 for $14850 OTD with $2500 in rebates. What do you all think?