Car buying process

[l36tols1]

What approach did you take in buying your car?

 

Did you have financing already or did you go through the dealer?

 

What advice would you give a 23 year old (Not me) financing their first car. It will be a used car btw.

[carl1647545492]

Ask if there is a contact on here first like Jordan at Jet auto group...sponsor.

 

Yes get financing ready before....think credit unions.

 

You can ask dealer to match or beat the financing,if they get the financing business it may help the deal close for you if you beat them up on the price of the car.

 

Avoid tax time as the inventory is short and pricing is high.

 

Good luck.

[iwashmycar]

Always check Pentagon Federal Credit Union. Not sure what they are at these days but were always very hard to beat. I used them for my first car back in the day.

[Otis Nice]

1) Go to Jet Auto Group.

2) Talk to Jordan.

3) ???

4) Profit.

 

The folks I'm FB friends with already heard this in the past week or so but within 4 days of each other Jordan got my brother and dad both into 2019 trucks that neither thought they'd get. He offered them both far more than any other dealership including Nourse which dad has bought his and moms previous 5 vehicles through.

 

Not only did Jordan offer them more on their trades (Kev, my brother, had already been to 6 lots around Cbus, Cville, and Chillicothe) but he gave them far better deals on the 2019's. Kev got into a 2019 F150 XLT with ~20k miles for less than Nourse offered him a 2017 XLT with ~40k miles. Dad got into a LOADED 2019 Platinum. Nicest truck I've ever been in. Both thought the trucks they got were WAY out of their budget when they looked online but I convinced them to at least go talk to Jordan anyway. Now both are telling everyone about the service and ease of purchase and said they'll never go anywhere else.

 

As far as financing goes both dad and Kev have over 800 credit scores. Both have always financed in advance through a credit union. Specifically a credit union a cousin of mine has been a manager at for over a decade. Jordan beat their rate. As a matter of fact he did so much better than when dad called her while at the lot and told her she emphatically told him that they'd better sign the papers before they leave because not her or anyone else will get them a better rate.

 

I can not stress enough that anyone who purchases a vehicle without at the very least seeing what Jordan can do for them first has only shorted themselves.

[Dharris89]

Don’t buy more car than you/they can afford. Try to keep the value of your car to half your yearly salary or less. So if he makes $50k a year don’t buy more than a $25k car.

[Trouble Maker]

Don’t buy more car than you/they can afford. Try to keep the value of your car to half your yearly salary or less. So if he makes $50k a year don’t buy more than a $25k car.

 

This sounds like financial advice written for and by millennials who are also trying to keep up with the Joneses. You should go start a blog, you could probably make a ton of money at it.

[STEVE-O]

Don’t finance a damn thing , go buy a cash car in good shape and save/ invest the rest you didn’t spend

[Otis Nice]

I cannot fathom slaving away for half of a year just to be able to afford a means of transportation. Screw that.

[Turbs3000]

I had ideas as to where credit unions would put my interest rate but let the dealer run it through their process to see what they would come up with as well.

 

Jordan is the best to deal with and by far the smoothest process full of the least amount of bs. I've literally bought a car from him solely via text message. Even his financing was cheaper than the rates I was getting on my own.

 

Also, I say this all as someone who sells trucks to dealers for a living.

[Dharris89]

This sounds like financial advice written for and by millennials who are also trying to keep up with the Joneses. You should go start a blog, you could probably make a ton of money at it.

 

No it’s actually from Dave Ramsey. Maybe give it a listen. The point is to not over spend. Too many people spend a ton of money and then pay more in interest for 7+ years when they should have bought a $2k civic. My newest car is a 2011 that I paid cash for. I am sure I could finance a very nice car with crazy high payments but why? For more gadgets I have to have my kids explain to me? Nah I invest heavily now and don’t care what other folks think of my cars.

[Trouble Maker]

No it’s actually from Dave Ramsey.

 

This sounds like financial advice written for and by out of touch religious boomers.

That guy should go write a book, he could probably make a ton of money at it.

 

:gabe:

 

Step 1) Pay off debt

Step 2) Save money

Step 3) Profit?

*I didn't even have to talk about god at all.

 

I'm honestly confused because you say spend (no more than) Yearly Income x 0.5 on a car, then talk about $2k vehicles and paying for cars in cash which is is not realistic at 50% of yearly income.

 

P.S. Before we went on this overseas assignment I'm on, we had 3 cars which combined where a chunk less than that metric, but in the same order of magnitude; I'm no Otis. I'm done with car loans. I also did almost exactly what you're guidance was when I got my first 'real' job and it was a financial chain for 5+ years. As soon as I got rid of it our financial futures could really start. I can't even fathom why that hack is famous for financial advice if he is promoting that metric.

Edited January 22, 2020 by Trouble Maker

[iwashmycar]

Maybe half of your disposable income....but not half a salary. Thats insanity.

[Dharris89]

:gabe:

 

Step 1) Pay off debt

Step 2) Save money

Step 3) Profit?

*I didn't even have to talk about god at all.

 

I'm honestly confused because you say spend (no more than) Yearly Income x 0.5 on a car, then talk about $2k vehicles and paying for cars in cash which is is not realistic at 50% of yearly income.

 

P.S. Before we went on this overseas assignment I'm on, we had 3 cars which combined where a chunk less than that metric, but in the same order of magnitude; I'm no Otis. I'm done with car loans. I also did almost exactly what you're guidance was when I got my first 'real' job and it was a financial chain for 5+ years. As soon as I got rid of it our financial futures could really start. I can't even fathom why that hack is famous for financial advice if he is promoting that metric.

 

His metric is you shouldn’t own things that are going down in value that equal more than 50% of your income. I modified it a little. He also advocates for buying with cash not debt. The point of all of it is to not over spend. My opinion and it’s worth what you paid for it, is people should drive cars appropriate for where they are in life financially. The reality is people finance cars, either by leasing or buying. To each their own. But a lot of people get in over their heads when it comes to buying cars. My original point was and still is not to over spend. Get what you need to accomplish your purpose. If you have $2k for a car then that’s your budget. But I don’t think people should spend all their money on something that is going down in value which is what Ramsey is talking about too. Most people don’t make six figure incomes. But it is sure easy to get into a newer car that can cripple the ability to save and get ahead. A newer used minivan can cost $25k. For a household making $50k a year that’s 50% of their income. It makes it very hard for that family to get ahead. But a lot of people do it. I have financed plenty of stupid things before. When I was 20 I financed a couch. (It was a nice couch) Believe me I have done plenty of dumb things with money. But at 40 I can look back and say I should not have done some things because they were not in my best interest. Hope that helps.

[downingracing]

The 50% of annual salary car thing was what used to be the 'normal' threshold to figure out what you 'could' afford. There was that and the 2.5x annual salary to figure out what house you 'could' afford. Those were just the guidelines that everyone seemed to use in the 80's, 90's, and even early 00's. I don't know who came up with those numbers or how they can work for every situation (since they don't take any other debt or bills into consideration), but that is what everyone used.

 

My rule of thumb is to have a great grasp of your overall financial situation and make a good decision on how much money a month to pay for a car. For some people, paying cash for a cheap beater works great. You can find awesome cars for cheap. This can also be a money pit that leaves you on the side of the road more often than it gets you to work. Other people don't mind making a monthly payment for a 'nicer' car. if there is no warranty, you pay your money and you take your chances. So when that car with a loan craps out, you're now not getting to work AND making payments.

 

tl/dr: Figure out how much cash or monthly payment they want to spend. Talk to bank or credit union. Find car. Enjoy.

[TTQ B4U]

Dad age advice. A 23 year old doesn't need more than a 10-13k car. Save up some money and get grounded first. No way in hell should they be looking at anything expensive. Buy used and reliable, it off soon. That young he/she doesn't need to have a car payment looming over them.

 

FWIW he can buy a pretty nice late model small Corolla or like for pretty cheap and it will last a while.

 

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[coltboostin]

Dad age advice. A 23 year old doesn't need more than a 1-2k car, Basically what you can make working a summer gig between school, unless you moms pays you bills, then look for a 10-12k car

 

 

FWIW he can buy a pretty nice late model small Corolla or like for pretty cheap and it will last a while.

 

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Fixed, because we obviously grew up in different neighborhoods.

[gillbot]

Fixed, because we obviously grew up in different neighborhoods.

 

I was thinking the same then saw your fix, seems better. Ty.

[Cordell]

What approach did you take in buying your car?

I have to have 3 things when I buy a car,

I first have to like the car and want to drive it long term (made this mistake before, paying on something you dislike sucks no matter how “good” the deal was)

Second it has to be something I can work on. This is certainly a more unique case for me, but being a technician I stick to cars I’m familiar with.

Lastly it needs to be a good deal, fair price, reliable car, and reasonable operating costs, ect.

 

 

Did you have financing already or did you go through the dealer?

 

My wife and I have done it both ways. For most I don’t think this makes a huge difference, especially with good credit. With good credit most dealerships are going to have some good options. With bad credit it could go either way, researching with banks or credit unions yourself is worth looking into if your credit is a little shaky.

 

 

What advice would you give a 23 year old (Not me) financing their first car. It will be a used car btw.

 

Try to go cheaper then you think you can afford. Don’t buy something unless you actually like it, otherwise pay cash for some beater.

[Geeesammy]

Don't finance it. Buy something cheap and reliable.

[Sully]

I say have fun. Do what you can while you can. Once you get older, married, kids, etc, it's all over. No more fun car at that point. You'll need a minivan. If a car payment is the only bill the 23 yr old has right now, go enjoy it. Get that expensive car. Enjoy life now. But definitely still go see Jordan. He'll get you the best deal on the car you want.

[mmrmnhrm]

Don't finance it. Buy something cheap and reliable.

 

There are reasons to finance a car outside not having the cash, most notably the creation of a credit file for someone who doesn't have one yet (folks just finishing school and immigrants being the most obvious).

[HotCarl]

What approach did you take in buying your car?

 

Did you have financing already or did you go through the dealer?

 

What advice would you give a 23 year old (Not me) financing their first car. It will be a used car btw.

 

For me, I didn't want to be drowning in a huge car/truck payment every month so the finances were more important than the car itself. As in any negotiation, information is power and power is leverage. Knowing things like your credit score, who you're pre-approved with and for what amount and what the interest rate is for that pre-approval is huge. I had way more leverage in negotiating a deal when I knew all of this information at the table. That... and I wasn't afraid to simply walk away if i didn't really like what I was getting.

 

I usually only go with credit unions, traditionally they have offered the best interest rate. When i purchased my '16 Tacoma I was pre-approved though Telhio CU, but the dealer actually found a better interest rate though Kemba... I went with Kemba.

 

Dealers will often try and sell warranty coverage packaged with the sale. These products are loaded with incentives for the dealer to make a lot of money so they push them pretty hard. Had i purchased the highest coverage my monthly payment would've increased by $130 lol. I just politely said no thanks. You can fund your own repairs for a fraction of what they offer in their warranty's.

 

Lastly, If I'm 23 I'm not buying a $30,000 car with an 8 year note that will be worth pennies on the dollar at the end of the loan. Cars are always depreciating and to sink that much of your financial life into something that will be worth nothing in the end is just crazy.

 

My personal opinion, buy a used Camry and call it a day. Sure it's boring but it'll last until you're 30 and in a few years when it's paid off you're only paying for gas and insurance until you want something else or its finally dies.

[HotCarl]

Don’t buy more car than you/they can afford. Try to keep the value of your car to half your yearly salary or less. So if he makes $50k a year don’t buy more than a $25k car.

 

Keep in mind, Dave Ramsey doesn't advocate for this until you're completely out of debt and saving for retirement already. Until those two things are accomplished he advises you purchase the cheapest mode of transportation possible to not waste any money on a car when there are other, more important financial matters to deal with.

[Otis Nice]

I say have fun. Do what you can while you can. Once you get older, married, kids, etc, it's all over. No more fun car at that point

 

:lolguy: You're adulting wrong.

 

There are reasons to finance a car outside not having the cash, most notably the creation of a credit file for someone who doesn't have one yet (folks just finishing school and immigrants being the most obvious).

 

Not a bad point but financing a car that's half of your income is ridiculous.

 

For me, I didn't want to be drowning in a huge car/truck payment every month so the finances were more important than the car itself. As in any negotiation, information is power and power is leverage. Knowing things like your credit score, who you're pre-approved with and for what amount and what the interest rate is for that pre-approval is huge. I had way more leverage in negotiating a deal when I knew all of this information at the table. That... and I wasn't afraid to simply walk away if i didn't really like what I was getting.

 

I usually only go with credit unions, traditionally they have offered the best interest rate. When i purchased my '16 Tacoma I was pre-approved though Telhio CU, but the dealer actually found a better interest rate though Kemba... I went with Kemba.

 

Dealers will often try and sell warranty coverage packaged with the sale. These products are loaded with incentives for the dealer to make a lot of money so they push them pretty hard. Had i purchased the highest coverage my monthly payment would've increased by $130 lol. I just politely said no thanks. You can fund your own repairs for a fraction of what they offer in their warranty's.

 

Lastly, If I'm 23 I'm not buying a $30,000 car with an 8 year note that will be worth pennies on the dollar at the end of the loan. Cars are always depreciating and to sink that much of your financial life into something that will be worth nothing in the end is just crazy.

 

My personal opinion, buy a used Camry and call it a day. Sure it's boring but it'll last until you're 30 and in a few years when it's paid off you're only paying for gas and insurance until you want something else or its finally dies.

 

^ never talked to Jordan.

[coltboostin]

I was thinking the same then saw your fix, seems better. Ty.

 

**fistbumps**