Josmin And Dewssox79's Ask The Experts On Car Purchases

[DewsSox79]

Depreciation would be the major reason to buy used.

technically no on some makes and models. if you get 0% and you work the deal through holdback, thats under invoice, and qualify for a lot of the rebates buying new is the way to go. buying used the rate is higher from any bank depending on how old the car is and the miles (wont book)

 

[DewsSox79]

As you should be. I'm a finance manager at a dealership and I detail out leasing to every single one of my customers. There are just too many benefits to leasing, many people don't understand or realize. Most lessees save up to 70% on taxes alone, since you're taxed on the monthly payment, on a lease, not the sales price. On top of that, it boosts your credit sore instantly because of the net to debt increase you receive. Unless you can get 0% financing, leasing is absolutely the way to go.

who do you do f&i for?

I did it for 6 years for toyota.

Leasing is good and bad. money factor plus residual will determine if it is ok to lease.

 

[DewsSox79]

Don't suppose youd be able to find me one of these at Wholesale? haha

those float around the auction like no other. I havent actually seen that color go through the shoots, but I only go once a week.

 

[Shawon0Meter]

I hate the idea of paying for something I'm never gonna get to keep. I even hate paying apartment rent but I can't afford a house

 

[DewsSox79]

I hate the idea of paying for something I'm never gonna get to keep. I even hate paying apartment rent but I can't afford a house

renting an apt is a bit different, buying a house is a huge thing to do. If one can only afford to rent than go for it. At some point you should try to save for a DP on a house.

When a car, it depends on the term. if you can afford 48 months you will keep the car probably longer than the term. 72 months is pretty much standard now a days, you may want to go with a manufacturer that has a warranty for th duration of the loan (see hyundai etc)

 

[Captain Iago]

they are saying that the supposed toxins are new. I get new dealer demos from a few places every few weeks to use to do their buying and selling and I love the new car smell, and dont give a ****. everything is linked to cancer and what not.

Oh, the things people are putting in their bodies thinking they're eating "healthy."

 

[JosMin]

who do you do f&i for?

I did it for 6 years for toyota.

Leasing is good and bad. money factor plus residual will determine if it is ok to lease.

I was at Toyota for two years. My auto group opened an Chrysler, Jeep, Dodge and Ram dealership. Better cut, deeper buying lenders and a better opportunity to make some loot.

:elephant:

 

[Captain Iago]

I was at Toyota for two years. My auto group opened an Chrysler, Jeep, Dodge and Ram dealership. Better cut, deeper buying lenders and a better opportunity to make some loot.

:elephant:

The Challenger is on my radar.

 

[DewsSox79]

I was at Toyota for two years. My auto group opened an Chrysler, Jeep, Dodge and Ram dealership. Better cut, deeper buying lenders and a better opportunity to make some loot.

:elephant:

locorcio group? (spelling)

I hear ya. lenders have been much much better lately. secondary has also been a bit more easy to get done. i miss the business portion of F&i and desking as well, but the2 bust outs got old.

 

[Iwritecode]

As you should be. I'm a finance manager at a dealership and I detail out leasing to every single one of my customers. There are just too many benefits to leasing, many people don't understand or realize. Most lessees save up to 70% on taxes alone, since you're taxed on the monthly payment, on a lease, not the sales price. On top of that, it boosts your credit sore instantly because of the net to debt increase you receive. Unless you can get 0% financing, leasing is absolutely the way to go.

What if you're like me and drive 50,000 miles a year?

 

[Crystallas]

I bought my last two new cars with cash, straight up. It cut my insurance premium down a bit. I know I could have financed at some low rate, and tried to beat the market with a higher interest return, but I guess I'm just old school like that.

 

[Anytime23]

I just bought this baby straight cash

 

[DewsSox79]

What if you're like me and drive 50,000 miles a year?

Leasing is not an option. i would get a 3 or 4 year old car that is cheap as ****. if its for work write that shit off.

but, leasing 50k, wont happen.

 

[GocubsGo223]

Well I actually prefer the colors reversed. Blue stripes on black, but just out of curiosity, what are they going for at the auctions?

 

[JosMin]

Leasing is not an option. i would get a 3 or 4 year old car that is cheap as ****. if its for work write that shit off.

but, leasing 50k, wont happen.

Not necessarily true. If it's a car that's got a solid residual (around 60%) and a good money factor, you can actually almost break even. It also depends on how much you reduce the cap cost, as well. I've broken down the math for plenty of high mileage customers and were able to show them that their depreciation simply based of miles (NADA and Blackbook usually rate around 17 cents per mile as an overage) is essentially dead even with whatever your mileage overage would be penalized from the manufacturer.

Honestly, for the super high mileage drivers, I generally pitch a one pay lease. Keep your coin in the bank or IRA, drive the car for three years and trade it in on something else. Most people's trading cycles are three years, anyway. Let's say you bought a 10 grand car, drove it for three years, put 100K on it. After that.... it's probably sitting around 130 to 150K miles. Even if it's a Toyota or Honda, how much do you think that car is worth with that kind of mileage? Shit, maybe four or 5 grand, depending on the year and equipment. At that point, I'd do a one-pay lease on a Camry, Corolla, Civic, something along those lines, and just pay that lump up from and reap the benefits of a full warranty and prepaid maintenance.

 

[DewsSox79]

disagree to an extent, residual value and money factor working in the consumers favor on a 50k lease is very rare. would I sell one? of course. its an easy 3 pounder front end for sure, if im in F&I its a tough sell to get a point and make money on warranty etc. just my thoughts. Again a 50k lease is rare. i still would rather buy a used car at those miles and still selling it after beating the hell out of it since the trade in value will still be high, as I have been seeing at mannheim for the last year. your nickel used car 2,3 years ago was a nickel in trade, now you are seeing those become 2g cars. bagels have even become almost normal used cars. they wont book, but for a cash car for commuting they tend to be ok depending on the dealer and the make of the car.

 

[JosMin]

We were actually just talking about sled trade-in value today at my sales meeting. With most of the people who're trading them in (customers with shit credit), we can just have their trade eat the rebate and show a higher reduction that way. That's something I was never really able to do at Toyota, since large rebates are few and far between, unless we were working on a Tundra.

Worth absolutely dick to us, because what's the sense in adding pack to a $500 car that probably couldn't pass a safety inspection anyway? Still, those ******* will roll through at the auction all day and pull almost two grand. I'm still blown away how many old people and buy here, pay here lots eat up Buicks and shitty Pontiacs all day long. ER'BODY WANTS THAT 3800 V6!

 

[Iwritecode]

I'm actually looking at getting a brand new car because I figure if I'm going to be putting 200,000 miles on it, I might as well start as close to zero as I can.

Plus, I've never had a new car and I can afford it now. So why not.

 

[DewsSox79]

We were actually just talking about sled trade-in value today at my sales meeting. With most of the people who're trading them in (customers with shit credit), we can just have their trade eat the rebate and show a higher reduction that way. That's something I was never really able to do at Toyota, since large rebates are few and far between, unless we were working on a Tundra.

Worth absolutely dick to us, because what's the sense in adding pack to a $500 car that probably couldn't pass a safety inspection anyway? Still, those ******* will roll through at the auction all day and pull almost two grand. I'm still blown away how many old people and buy here, pay here lots eat up Buicks and shitty Pontiacs all day long. ER'BODY WANTS THAT 3800 V6!

yeah its kinda hard to pack a bagel. most manufacturers dont have 5,000 on rebates etc unless we are talking pick ups, which seems to be where the rebates are at, that and mini vans. salesmen can barely make anything now a days since holding on the trade isnt like it used to be.

 

[DewsSox79]

I'm actually looking at getting a brand new car because I figure if I'm going to be putting 200,000 miles on it, I might as well start as close to zero as I can.

Plus, I've never had a new car and I can afford it now. So why not.

what are you looking at? makes? models etc