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Started By
Message
First Time Car Buyer(Financing): Anyone Care to Offer Advise?
Posted on 11/5/16 at 8:13 am
Posted on 11/5/16 at 8:13 am
I have a confession to make. I am 30 years old and have never financed a car, or, predictably, ever bought a new vehicle.
I suppose I shouldn't be too embarrassed, I enjoy a certain type of older cars, and have always paid cash for them. I have a 1992 Range Rover classic and a 1989 BMW cabriolet, both in excellent condition for their age.
But the labor of love (a nice way of saying perpetual frustration) of maintaining older vehicles has finally peaked.
This will be my first time purchasing a new vehicle. I'm presently living in Europe, and would like to take advantage of the BMW market here.
I understand not to examine a car from the monthly note perspective, but between us, I'd rather not spend more than $600/mo. on a vehicle (including insurance).
I'm obliged to anyone who can offer secrets of the pros on purchasing new vehicles, and pitfalls of you are also aware.
I've done my share of googling, but have respected the insight of the Money Talk regulars throughout my years of lurking on TD.
Any help is appreciated
I suppose I shouldn't be too embarrassed, I enjoy a certain type of older cars, and have always paid cash for them. I have a 1992 Range Rover classic and a 1989 BMW cabriolet, both in excellent condition for their age.
But the labor of love (a nice way of saying perpetual frustration) of maintaining older vehicles has finally peaked.
This will be my first time purchasing a new vehicle. I'm presently living in Europe, and would like to take advantage of the BMW market here.
I understand not to examine a car from the monthly note perspective, but between us, I'd rather not spend more than $600/mo. on a vehicle (including insurance).
I'm obliged to anyone who can offer secrets of the pros on purchasing new vehicles, and pitfalls of you are also aware.
I've done my share of googling, but have respected the insight of the Money Talk regulars throughout my years of lurking on TD.
Any help is appreciated
6
Posted on 11/5/16 at 8:27 am to King Teal
1. Negotiate price first. Then negotiate payment terms (cash, financing, trade in, etc)
These are 2 separate transactions
These are 2 separate transactions
Posted on 11/5/16 at 8:44 am to King Teal
quote:
I'm presently living in Europe, and would like to take advantage of the BMW market here.
That is an interesting wrinkle. Will be interesting to see how many posters are savvy about European car financing.
Posted on 11/5/16 at 10:38 am to King Teal
I have zero advice, but the BMWveld auto pickup center and nearby museum in Munich is a pretty neat place to visit.
Posted on 11/6/16 at 6:06 am to Twenty 49
I will still try to use my bank for financing, more than likely.
Posted on 11/7/16 at 5:03 pm to King Teal
You know how much you want to spend per month (and should know for how many years). Shop around to get the best price. Determine what interest rate you SHOULD get and be prepared to walk if they can't find adequate financing. Car dealerships make much of their money in the finance department after you've settled on a deal. They'll try to sell you extras (various warranties) that you may not want or need. And they'll try to rape you on the interest rate.
Posted on 11/7/16 at 6:50 pm to King Teal
Give them as little information as possible about your circumstances until you have an agreed upon price; and have as much information as possible about their cost vs. what they are asking for the vehicle prior to going to look (there are sites to help with that.)
Be prepared to make and offer that gives them small profit, and walk away if they refuse to buy. Wait a day or so before looking elsewhere because they will often call when they think you are not coming back.
Finance independently of the dealer ship, or if you finance through one of their mechanisms, have a figure already in mind for what reasonable interest is and walk away if they try to stick it to you.
Never give them the idea you have to have a certain car. In the U.S. they make money by volume as well as margin of profit per car, so there is a vested interest in selling you a car, even if at less of a profit than they like; plus they know you will probably use them for service under warranty.
Be prepared to make and offer that gives them small profit, and walk away if they refuse to buy. Wait a day or so before looking elsewhere because they will often call when they think you are not coming back.
Finance independently of the dealer ship, or if you finance through one of their mechanisms, have a figure already in mind for what reasonable interest is and walk away if they try to stick it to you.
Never give them the idea you have to have a certain car. In the U.S. they make money by volume as well as margin of profit per car, so there is a vested interest in selling you a car, even if at less of a profit than they like; plus they know you will probably use them for service under warranty.
Posted on 11/7/16 at 7:43 pm to King Teal
I'm not sure how much european insurance rates are but I was in the same boat as you 2 months ago. With 3k down, you can finance a $28k car over 5 years, with 3.5% interest at $600/mt, that's including insurance.
I pay $450/mt car note and another $150/mt full coverage insurance. I'm trying to have the truck paid off in 2 years as well.
Always, negotiate price first with the salesman, never the monthly note. Then when you talk to the finance guy you can work on a monthly note of your liking.
I pay $450/mt car note and another $150/mt full coverage insurance. I'm trying to have the truck paid off in 2 years as well.
Always, negotiate price first with the salesman, never the monthly note. Then when you talk to the finance guy you can work on a monthly note of your liking.
Posted on 11/7/16 at 8:14 pm to ellishughtiger
Isn't there a sticky at the top of this page for this question? Will Cover method is linked in there.
Not sure if the European market methods are different, but I wouldn't expect them to be handled any differently.
Not sure if the European market methods are different, but I wouldn't expect them to be handled any differently.
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