re: Article: "Record number of car buyers 'upside down' on trade-ins"

I worked as a corporate trainer at a bank for a while, and about once every two months we would hire a new wave of collectors fresh out of HBCUs and other local colleges who would make $30k a year.

About 2 weeks after they got hired(hence when they got their first paycheck) we'd call it auto show day, because a bunch of brand new cars would come rolling into the parking lot, driven by these new hires. Nice cars too. They'd still have temp tags on them and everything. On a $30k salary. How much of their paycheck were they having to divert to these monthly lease/finance payments?

People are morons, but car salesman know that these idiots are suckers. They just ask how much they can afford per month, and stretch out the terms/interest to where they can afford it.

Myself, I just saved money for a few months and bought my current car for $9,000 cash. I had to search around, be patient until I found one that matched all my criteria, and fly to Salt Lake City for it, but I came out ahead. No monthly payments. I have had no trouble with it in the past 2 years. Life is good.

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Say you roll in, ready to trade-in a vehicle to use as down payment..thats 1 right there. Have an idea of what you want in a new vehicle and a price you're willing to pay. That would be all 3, yes?

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You are the reason they ask.

Just because you have a price you are willing to pay, it doesn't mean they have to sell you the vehicle for that price. Just because you have a trade in, it doesn't mean they have to give you What you want for it.

Think about it.

I go in to buy a truck. I have want to put 2k down. I want it to be invoice plus 300 bucks. I want a $200 note.

Unrealistic. I can have two of three. I can put more money down. I can get something cheaper. Or I can pay more per month.

They ask that question because people still think paying cash makes a dealer happy and people can't calculate simple interest in their heads.

Enjoying this thread.

Just purchased my son a Tacoma 4WD, 3 years old...paid cash for it. Now looking to get me something that will last me awhile...my current truck is only 24 years old and I need my next one to last at least 30 years.

I was also asked, when buying my sons truck, what was I looking for in a payment. Told the dealer I was only interested in the selling price. He appeared shocked.

I also know a car salesman who has told me that he has tried to convince people to not add the "New TV" incentive, etc onto their loan. And even after explaining they are going to end up paying $1,200 for a TV that costs $500 they dont care.

Also, even though I paid cash for my sons truck, he is making monthly payments to me for that truck. I want him to learn fiscal responsibility and also to hate monthly payments.

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Also, even though I paid cash for my sons truck, he is making monthly payments to me for that truck. I want him to learn fiscal responsibility and also to hate monthly payments.

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If I didn't have any younger siblings, I'd swear my dad was posting here.

What you are teaching your son will leave him with a mid 600s credit score through his 20s and crippled financially.

Better served by paying a small amount of interest and adding a line to his likely limited credit report.

Cars aren't an investment, dipshit.

Anyone who thinks of a car as an investment is dumber than you are.

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What you are teaching your son will leave him with a mid 600s credit score through his 20s and crippled financially.

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There are other ways to establish credit.

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nah its there to avoid talking about what the car is worth.

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I've never not signed off on a price before meeting with the finance guy.

If you buy a 2000 warranty and gap in there with him, that's your problem.


*preapproved offer through credit union.
*sit down and discuss cash price otd.
*switch to financing and explain you have a preapproved offer with your credit union who they happen to be a direct lender with.
*walk in the back office and sign.

No need for any additional warranties or coverages unless buying a yamaha product. Their warranty kicks arse

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There are other ways to establish credit.

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Agreed. But until he has a mortgage, the biggest loans on his report will be for vehicles and recreational items.

Vehicles have lower interest rates. A used Toyota with a 3.5% interest rate is about the cheapest way to build a kid's credit.

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Just because you have a price you are willing to pay, it doesn't mean they have to sell you the vehicle for that price. Just because you have a trade in, it doesn't mean they have to give you What you want for it.

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I can agree with these points.

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I go in to buy a truck. I have want to put 2k down. I want it to be invoice plus 300 bucks. I want a $200 note

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Obviously the $200 note is unrealistic. I was speaking towards someone that knew a good price point for a vehicle, not someone with absurd expectations.

Ex. Go to buy a truck, with a trade-in vehicle. Do not tell the salesmen about the trade-in. Have done research on the vehicle that is wanting to be purchased and trade-in value expected. Say 35K for new vehicle on a 60 month note at 2%..38,500 for vehicle. Now that you're set on a price, tell about trade-in..now you know exactly what you're getting on trade-in, as well as the price you have come to on the new purchased vehicle.