frustrated

[Medsport]

Ok, just got back from my 4th long trip to look at a mustang and still driving the old one! I went on a 3 hour drive to check out a couple orange mustang gt's this time. They were 401a's with 19" wheels and I thought they sounded a bit high for my budget with the options, but the customer service lady said they have to appraise my car and are giving up to 4k above market value, so I thought it was worth a shot. So at first he tried to charge me full price (not the almost 3k off internet price). But even at that I was hoping they would go down more, but no dice. They were going to give a little extra for my trade, but not enough to know 50 or so off the payments.

So then I see a nice looking race red on the lot that was not on their page. He looks it up and says its used, but only a little over 2k miles. It was an almost completely loaded auto gt the stickered for almost 44k and they were only asking 37k and they said they should be able to get me into it for about 500 a month (my cut-off). It had the 20" wheels which I don't really want since they are summer only tires and would have to change out my winter wheels earlier than the all seasons. But it rode suprisingly well and I thought I could tell the difference in the 3.55 gears it had. But when we get to talking numbers, he says the payment quote was for 84 months, so I'm like no, I don't want to exted it that long. I almost walked several times, but finally agreed if they could get the same payment for 75 months, I would take it. So then, he comes back and says they made a mistake and just found out Ohio doesn't honor the trade allowance so the payment would actually be more now. WTF, I've had 3 other dealerships say they do. I wonder if it makes a difference if you purchase the car in the same state or not?

Anyway, not sure what to do now? I do know a place that said they could get me a 400a auto premium for just a few dollars more than my "cutoff amount", but I keep flipping back and forth what color I want. I think I'm back to guard from orange at the moment. I'm about ready to give up and order a 17, but I can't order my top two picks in color. Although I could get the seat color I want and haven't been able to find with the options I wanted.

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[timd38]

Sounds like you have been doing a lot work to buy a car, so you may as well get what you want!

Sounds like you trade every two to three years, have you thought about leasing?

 

[SDEcoBoost]

I am sorry, but being retired military, I have lived all over the United States as well as 13 years overseas, and have never heard of a State not "honoring the trade allowance". WTH was he/she taking about? I traded a Jeep purchased in Texas on a new one in South Dakota, while on vacation! I have also traded a car purchased in MN on a new one (Mustang) in Texas. Is this something new? Did they explain what they were talking about? Am I missing something here?

 

[JohnBoyNC]

Wait another month and take advantage of the 0% financing.

 

[Medsport]

I tried leasing a couple times and it didn't get me anywhere. The last couple cars I got I told myself I was going to keep at least until they were paid off, but I didn't make it. To be fair they were base models, so I thought if I get one with all the "main" options this time, I will hopefully keep it for a long time or at least until paid off. Its funny the salesguy, tried using the tactic: "so how long do you think you will keep it, 3 or 4 years max?, the extended payments won't make any difference then." In a way he may be right, but I hate to pay higher interest for a used car when the new car is 0% right now. Just can't beleive we were only like 30-40 apart in payments and couldn't get close enough to what I would be comfortable with.

btw SDecoboost, what I was referring to was only paying taxes on the difference between the trade and the new car. There most be some stupid ruld in IN that is different than OH and MI.

 

[timd38]

I
btw SDecoboost, what I was referring to was only paying taxes on the difference between the trade and the new car. There most be some stupid ruld in IN that is different than OH and MI.

If you look at the amount of subprime car loans and the amount of 6, 7 and 8 year loans, the car business is about to tank and you will be able to by a repo car cheap.

In Michigan you pay the sales tax on the total price of the car, doesn't matter what the trade in is worth. I get that part!

 

[Medsport]

Really, I went to two different places and they said I only pay the tax on the difference (and the place where I got my current car was in MI). I think they base it on where you live at-but that can't be right unless the dealership in IN was wrong.

 

[dotJake]

Really, I went to two different places and they said I only pay the tax on the difference (and the place where I got my current car was in MI). I think they base it on where you live at-but that can't be right unless the dealership in IN was wrong.

It's a state-by-state law and the dealer has no vote. In CA you pay tax on the full deal. In AZ you pay the deal minus trade value in tax. Straight from some webpage (I'm sure it's legit, Google says so!) here are the states.

Lease tax is calculated at registered address, financed is calculated at dealer zip code tax and commodity rate.

Furthermore, in CA when you pay tags they go with the vehicle along with the plates. In AZ you get "plate credits" for the unused portion of the already-paid tags. So if tags are $600/yr and you dump the car for another in (say) six months, you'd get the balance (about half) back as a credit towards the new car tags. No you don't get it in your pocket (directly).

I use CA and AZ as examples since I have the most familiarity here. The only time I have had a dealer jerk me around is on a leased vehicle that was positive equity and used it towards the down. They said that since I never paid tax on the residual it would need to be factored into the trade-in credit. Something like ((new car sale - trade in value) = taxable car amount) + unpaid tax on lease residual amount ). Things got weird from here.

 

[HappySquirrel]

...they have to appraise my car and are giving up to 4k above market value...

This should have been your first red flag. This is a common sales tactic they use to get you in the door, but they always make it up with an increased sales price (nothing is free). The most common way is to do exactly what they did with you, which is tell you you're paying full MSRP on the car in order to get that sweet overvalued trade-in.

...they said they should be able to get me into it for about 500 a month (my cut-off). ...But when we get to talking numbers, he says the payment quote was for 84 months, so I'm like no, I don't want to exted it that long.

No offense, but this is your 2nd mistake: negotiating on monthly payment instead of the total cost of the car. Before you walk in the dealership, get preapproved for a car loan from an outside bank/credit union, and know all of the numbers (total cost of the car including all fees, typical negotiated selling prices, your interest rate, your monthly payment for the length of term you want...) up front. Otherwise, you're giving them an easier path to screwing you and hiding it behind the terms of the loan.

 

[Medsport]

According to the chart, they lied to me then. It doesn't say if its the state you are from or the state you buy it in, but they are both listed in this case. I also already got approved, but why use 2.94% when I can get the 0%? You never know the cost of the car though, unless you do a or x-plan. Thats why I've been scouring the dealership ads and car buying sites for the past few months trying to find the place with the biggest discount or sales price.

 

[timd38]

According to the chart, they lied to me then. It doesn't say if its the state you are from or the state you buy it in, but they are both listed in this case. I also already got approved, but why use 2.94% when I can get the 0%? You never know the cost of the car though, unless you do a or x-plan. Thats why I've been scouring the dealership ads and car buying sites for the past few months trying to find the place with the biggest discount or sales price.

Just remember that when you see a dealer with an unbelievably good deal, check the fine print. I saw a dealer at that said $10K off all Mustangs. $5K was your trade, $2K was your down payment, $500 military, $500 college grad, $1K to use the dealership financing and the $1K was rebate......

Yup $10K off!

 

[Khyber]

never tell a dealer what you want your payment to be... that's how they bend you over without taking you out to dinner first.

 

[angermgmt14]

When you find a car your interested in, get the invoice price of the car with all the options. That will be your "starting" point. You "should" be able to get it for well below invoice. Once you agree on the price of the car look at which rebates you are eligible for/can get. There is your final price.
And as said before never say to a salesman "I want to be at $XXX/mo., can you get me there?"

 

[Mt-82 whine]

If you look at the amount of subprime car loans and the amount of 6, 7 and 8 year loans, the car business is about to tank and you will be able to by a repo car cheap.

In Michigan you pay the sales tax on the total price of the car, doesn't matter what the trade in is worth. I get that part!

I don't know if it will tank to the point of really giving responsible buyers better prices but I agree the system isn't healthy. I know forums aernt your average car buyer but paying attention here and on on sites I don't see how so many people can turn cars over so quickly, especially eith the amount of mod money in their signatures. I have no kids, no debt and don't know how the hell some are doing it

 

[wildcatgoal]

Dude, get a used one from Carmax. You're getting played...

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