[The Bee]

So im going to be looking to buy a new car next week. My question is the car I have now I still owe money on it. When I go buy a new car will the dealer buy my car I have now & pay the loan off? Also will the dealer then put the money that they paid for my car on top of the new car im buying. Example would be if I owe $10k on my car now & buy a 20k new car would I really be paying 30k or would they be two seperate deals?

 

[clearwaterms]

yes they will pay off your loan on your existing car... and use that car in trade

if you owe $10K on your existing car and it's worth $6K, they will apply a $4K on top of your loan for the new car (when you owe more then a car is worth, you are upside down) if you owe $6K on your car thats worth $10K then you are $4K rightside up, you will get $4K off of the loan amount on your new car.

I don't mean to be an asshole, but if this is a serious question, please go to a dealership with a friend that understands the car buying process better then you, if not the dealership might as well hand you vasoline because they will see you comming and it's not going to end pretty

 

[2001FZ1]

I don't mean to be an asshole, but if this is a serious question, please go to a dealership with a friend that understands the car buying process better then you, if not the dealership might as well hand you vasoline because they will see you comming and it's not going to end pretty

Very true. The dealers will take all your money and give you a high interest rate if you don't know what is going on.

Remember, there is probably more than one dealer in the area. Work out a good OUT THE DOOR PRICE and then leave. Go to another dealer and see what they can do. Then check another if possible and then go back to the best place the next day.

 

[r1crazzy]

Very true. The dealers will take all your money and give you a high interest rate if you don't know what is going on.

QUOTE]

Actually this statement is incorrect. The banks will not let the dealer mark the rate up more than a certain percentage. The rates the dealer gets are usually lower than what an individual can get thru the bank.

If you can make your purchase before the end of the month and are interested in a GM product, now is the time to purchase. Everyone purchases at GM employee price.

 

[2001FZ1]

Very true. The dealers will take all your money and give you a high interest rate if you don't know what is going on.

QUOTE]

Actually this statement is incorrect. The banks will not let the dealer mark the rate up more than a certain percentage. The rates the dealer gets are usually lower than what an individual can get thru the bank.

If you can make your purchase before the end of the month and are interested in a GM product, now is the time to purchase. Everyone purchases at GM employee price.

Maybe a new dealer but I personally seen guys come back from the used car dealer with 19% interest on their car loans. It is crazy what some dealers can get away with. The laws vary from state to state.

 

[clearwaterms]

Very true. The dealers will take all your money and give you a high interest rate if you don't know what is going on.

QUOTE]

Actually this statement is incorrect. The banks will not let the dealer mark the rate up more than a certain percentage. The rates the dealer gets are usually lower than what an individual can get thru the bank.

If you can make your purchase before the end of the month and are interested in a GM product, now is the time to purchase. Everyone purchases at GM employee price.

that varies from state to state. Here in IL, they can only mark up the rate 3%. In NY they can only mark it up to 24% (I think) Some banks will only let you mark up a certain amount, the captives are usually the most notorias for that (captive=loan company subsisdized by manufacturer; ie GMAC Ford Credit, Honda Finance, etc)

The problem isn't only the interest rate, it's the cost of the car vs the cost of the new car. If somebody like the person walked into a store that I was selling for, I am thinking, I just made my mortgage payment. Here is how...

I am going to lowball him on his trade (like offer him a grand for a car that is worth 4K) then I am going to sell him his car at sticker, tacking on an extended warrenty, gap insurance, undercoating, VIN etching, dent and scratch protection, etc. Basically, if I can sell it, I am going to offer it to him. But the way I do it is I only tell him the payment for the car, and I have it stretched out over the LONGEST TERM POSSIBLE, with the highest APR possible on the best rate sturcture.

So if you come in looking at a Chevy Cavalier with a 4K tradein that you own outright, I am going to come back with a payemnt of like $450 a month for 72 or 84 months. Then, when I get it down to like $375 a month for 60 months (removing some of the extras, giving him fair money for his trade) he bites. Now, here is the catch, i still sold him the car at sticker, and at the highest APR, and he left happy as a pig in shit because he went from $450 over 72 months to $375 for 60 months...

Welcome to the world that is a car dealership

 

[r1crazzy]

Maybe a new dealer but I personally seen guys come back from the used car dealer with 19% interest on their car loans. It is crazy what some dealers can get away with. The laws vary from state to state.

Actually, if you get 19% for an intrest rate, there's a reason.

If I remember, it's because you don't pay your bills and your a huge credit risk. Proably buying a car from a buy here pay here lot because no one else with give you the money.

I'll mark my rate up 1% to 3% and I'm as good or better than most local banks.

 

[clearwaterms]

Actually, if you get 19% for an intrest rate, there's a reason.

If I remember, it's because you don't pay your bills and your a huge credit risk. Proably buying a car from a buy here pay here lot because no one else with give you the money.

I'll mark my rate up 1% to 3% and I'm as good or better than most local banks.

r1crazzy, I assume that you are a F&I guy?

 

[r1crazzy]

r1crazzy, I assume that you are a F&I guy?

Yep :neener