Honda Financing

#151
#151
hog88 said:
I understand. I just don't have time to deal with the bs that comes along with buying a car. I usually know what I'm paying and make an offer, it's accepted or not.
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I understand and respect that, just for my personal growth, was my analogy pretty illustrative/helpful/reasonable? It's something I would like to use in the future.

Thanks!

:hi:
 
#152
#152
Nerd-Vol said:
I understand and respect that, just for my personal growth, was my analogy pretty illustrative/helpful/reasonable? It's something I would like to use in the future.

Thanks!

:hi:
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Yep made since to me. I've worked commission so I understand where you are coming from.
 
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#153
#153
CanadianVol said:
I could take that extra cash at the start, and invest it in something that would have a lot better return than the 1.9%
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I think I'm confused on the argument you are making. Are you saying that paying 0% over a term of 4-5 years is better or worse than paying in cash up front?

Seems like if you had $20k today, I would rather let the $20k pay me 1.9% or better over 5 years than making a $333.33 payment each month starting today that pays 1.9% over the same time period.

Go to Excel and do a Final Value calculation of $20,000 growing at 1.9% per year vs ($20,000/60 months)= $333.33/month every month for 60 months at 1.9%.
 
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#154
#154
Rasputin_Vol said:
I think I'm confused on the argument you are making. Are you saying that paying 0% over a term of 4-5 years is better or worse than paying in cash up front?

Seems like if you had $20k today, I would rather let the $20k pay me 1.9% or better over 5 years than making a $333.33 payment each month starting today that pays 1.9% over the same time period.

Go to Excel and do a Final Value calculation of $20,000 growing at 1.9% per year vs ($20,000/60 months)= $333.33/month every month for 60 months at 1.9%.
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I'm saying if my options are pay $20k up front (and have that value immediately drop off the lot) or pay 1.9 over how every many months and invest the difference at the beginning, I'm going to take the second option. I'm going to make more than the 1.9 a year most every time (not guaranteed, but the market is stabilizing), so I'll be able to pay the interest and have some extra in my pocket
 
#155
#155
Nerd-Vol said:
price negotiation in person is the way we do things at my dealership. What any dealer wants to see is that they have a committed buyer. I personally try to avoid talking about price over the phone. Why? You will simply take my number and go to my competitor and aske them to beat it. You can't sell a car over the phone. That said, a lot of high volume lots will negotiate over the phone.

You also have to consider if your offer is reasonable, see what kbb, nada, and edmunds have to say. Depending on the price of the vehicle, the tax could be $2500. Not every used car on the lot has $2500-4000 of mark up. You have to remember, that a certain point, if the vehicle has been on the lot a while the dealer will discount it to where they will break even. Just because the vehicle has been on the lot a long time does not mean the dealer is going to take more of a loss than they would at the auction house.

Also, the whole writing a check or paying cash to get a deal done does not work.
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Thank you for your input. The trucj is 2 hours away and wanted to see if I could try to get one over the phone. Truck is 19,431. That is what in offered out the door. Booka for around 21,000. They have turned this truck twice now. Said best they could do was 21,600 out the door. Im sorry, but my god im not paying over 100% book for this. Yea it is a hot commodity right now. I just dont want to waste my time driving there for nothing. 19,430 is what im willing to pay and they flat out refuse that over the phone
 
#156
#156
TennVOLS93 said:
Thank you for your input. The trucj is 2 hours away and wanted to see if I could try to get one over the phone. Truck is 19,431. That is what in offered out the door. Booka for around 21,000. They have turned this truck twice now. Said best they could do was 21,600 out the door. Im sorry, but my god im not paying over 100% book for this. Yea it is a hot commodity right now. I just dont want to waste my time driving there for nothing. 19,430 is what im willing to pay and they flat out refuse that over the phone
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I understand your position, but it sounds like you are out of luck. If you owned a hot commodity, would you take anything less than book value?
 
#157
#157
Nerd-Vol said:
I understand your position, but it sounds like you are out of luck. If you owned a hot commodity, would you take anything less than book value?
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If it had 2 previous owners and I sold them new everday maybe
 
#159
#159
TennVOLS93 said:
Thank you for your input. The trucj is 2 hours away and wanted to see if I could try to get one over the phone. Truck is 19,431. That is what in offered out the door. Booka for around 21,000. They have turned this truck twice now. Said best they could do was 21,600 out the door. Im sorry, but my god im not paying over 100% book for this. Yea it is a hot commodity right now. I just dont want to waste my time driving there for nothing. 19,430 is what im willing to pay and they flat out refuse that over the phone
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I just want to review your numbers.

So book value is: $21,000 before tax and fees.
You offer $19,431 out the door.
That's around $1,554.48 in taxes.
So you want the pre tax price at $17,877 or $3123 below book value.

I can absolutely understand why they turned down your offer. Your offer isn't a realistic offer, imo. I dont know what they have invested in the truck, but I can't imagine them just tossing away $3,123 over the phone.

Edit

I Might have misread your number. I'll try this again after I get a nights rest.
 
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#160
#160
Nerd-Vol said:
I just want to review your numbers.

So book value is: $21,000 before tax and fees.
You offer $19,431 out the door.
That's around $1,554.48 in taxes.
So you want the pre tax price at $17,877 or $3123 below book value.

I can absolutely understand why they turned down your offer. Your offer isn't a realistic offer, imo. I dont know what they have invested in the truck, but I can't imagine them just tossing away $3,123 over the phone.

Edit

I Might have misread your number. I'll try this again after I get a nights rest.
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The thing about it is, that was my first initial offer. I would slowly work my way up to maybe 20,000. Which is a fair number in my opinion. But no they want budge. Actually I did a loan for a man the other day who wanted to buy a maxima through them. Deal sheet price was over 18,000 and the NADA was around 12,500. When my client called them, he was pretty much told to piss off because they weren't dropping price. Im just going to go out of state. Tennessee is just proud of their vehicles I guess.

Side note nerd, that truck comes with a 12 month/20,000 mile warranty and two years of maintenance. I told them to take both out of the deal. Keep in mind this is not a standard warranty on all used cars there, only to this truck
 
#161
#161
TennVOLS93 said:
The thing about it is, that was my first initial offer. I would slowly work my way up to maybe 20,000. Which is a fair number in my opinion. But no they want budge. Actually I did a loan for a man the other day who wanted to buy a maxima through them. Deal sheet price was over 18,000 and the NADA was around 12,500. When my client called them, he was pretty much told to piss off because they weren't dropping price. Im just going to go out of state. Tennessee is just proud of their vehicles I guess.

Side note nerd, that truck comes with a 12 month/20,000 mile warranty and two years of maintenance. I told them to take both out of the deal. Keep in mind this is not a standard warranty on all used cars there, only to this truck
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Hmm. Sounds like that dealer just doesn't like to budge on their price. I would say keep looking until you find a better price.

Out of curiosity, what kind of truck is this?
 
#162
#162
Nerd-Vol said:
Exactly. The nice thing about financing is it frees up cash. Sinking $35,000 cash at once can put a bind on things for even folks of ample means.

In my ideal situation, I would put 1/3 cash down and take advantage of 0.0-2.9% financing. That way there is no real risk of being upside down(Chrysler, jaguar, Land Rover, excluded) and you would have a very reasonable payment that you could pay off early if need be.

One problem is that a lot of folks don't have the luxury of saving up for a big down payment. Circumstances can change quickly for a person and they need a vehicle on short notice.

The biggest thing I would advise for any purchaser is to avoid being upside down in a car as much as possible especially when trying to trade. That begins with buying right the first time, and getting a car you are confident you can live with at least 65-70% of the loan term.
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That's essentially what I'm trying to do with this apparently mystical Ridgeline I'm trying to find.

I imagine I'll probably have to pay around $24k. My goal is to only finance about $12k. With almost no effort I've found financing for 1.9, so I might even be able to do a bit better.

Although it seems like I'll have better luck buying a unicorn with a bucket of hen's teeth.
 
#164
#164
Pulled the trigger this weekend on an Odyssey. Actually got them under their advertised financing rate, so it worked out well. Love it so far.
 
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#165
#165
CanadianVol said:
Pulled the trigger this weekend on an Odyssey. Actually got them under their advertised financing rate, so it worked out well. Love it so far.
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We took the minivan plunge three years ago with an Odyssey and don't regret it one bit. Great to drive, decent gas mileage, superb electronics, and invaluable on family vacations.
 
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