Buying a new used car

[Shawner]

I've always been able to buy old enough vehicles that I've never had to go the financing or car loan route, so I'm in the dark here and hoping for some answers.

I'm looking to buy a newer pickup truck, 10-12K range.

My credit is good (at least I think so... no trouble securing a mortgage, no other consumer debt, credit cards paid off every month, etc). I emailed the guy at BMO that we deal with, said we can either go car loan (starts at 10%, increases or decreases depending on strength of application) or line or credit (starts at 6%, same deal as above).

There are a few used vehicle dealers around town that note certain percentages and monthly payments. A few I've seen are around 5-6%.

So, questions to start with are:

- with the car loan interest rate being so much higher, why would anyone choose that over a line of credit?
- am I better off to go with financing from a dealer instead of the bank?
- what benefit is there to buying a car privately as opposed to a dealer? I know the 12% tax gets charged right across the board now, so private sales don't get that benefit anymore... what additional costs are tacked on if buying at a dealer?


Thanks

[Bpeep]

Imo if you have to finance a car, don't.
If you don't have the dough to buy something in the 10 to12 k range like you said, buy something cheaper and pay cash for it.
Don't finance a depreciating asset.
If you finance a used car it'll be dirt and iron oxide before it's even paid for. I call it financial suicide.

Never finance a car.

[Bsuds]

. what additional costs are tacked on if buying at a dealer?


Thanks

Dealers will add on a fee for doing the paperwork so make sure your price quoted includes that.
Other than that the line of credit is usually your best bet.

[Jo]

Dealers will add on a fee for doing the paperwork so make sure your price quoted includes that.

You don't have to pay that fee, just say no to it. They will fuss and fume but they won't let a buyer walk away because of it. Don't tell them you're not paying it until you've reached an agreed-upon price, though. Keep it as a little surprise.

And they will always go for a much lower price on the vehicle - be patient, be prepared to walk away, and even walk away. If you have presented as someone who is definitely going to buy the vehicle, they will call you if you do walk away (unless they have someone else on the hook for the vehicle, which they will tell you they do, btw).

[Bsuds]

So true...Left on place over $500 difference and had 3 calls from the salesman by the time we got home.
Hold out for your price and be prepared to walk.

[Jo]

My last car salesman said I was worse than his Chinese mother (I'm not Chinese, but I definitely took it as a compliment). When the deal was done he told me it had been a painful but enjoyable experience.

He gave me every line imaginable, and it took two months of negotiating, but I got that car with no fees and down from the asking price of $15,000 to a much nicer $9500. I also made him throw in a year's worth of gas.

It was a good experience. I have fun with car salesmen.

[Bsuds]

I have fun with car salesmen.

I used my car for work and purchased a new (used) one every couple of years so I figure I have bought 15-20 cars.
I enjoyed looking but hated the haggling. Took my Wife to do that cause when I found the car I wanted she was the hard nosed one.
I would have just paid what they wanted to get the heck out of there. She hated the looking part.

[V-Rated]

My last car salesman said I was worse than his Chinese mother (I'm not Chinese, but I definitely took it as a compliment). When the deal was done he told me it had been a painful but enjoyable experience.

He gave me every line imaginable, and it took two months of negotiating, but I got that car with no fees and down from the asking price of $15,000 to a much nicer $9500. I also made him throw in a year's worth of gas.

It was a good experience. I have fun with car salesmen.

HOLY SMOKES!!! I am definitely taking you car shopping with me next time!
~V~

[my5cents]

I've always been able to buy old enough vehicles that I've never had to go the financing or car loan route, so I'm in the dark here and hoping for some answers.

I'm looking to buy a newer pickup truck, 10-12K range. ................ There are a few used vehicle dealers around town that note certain percentages and monthly payments. A few I've seen are around 5-6%.

So, questions to start with are:

what benefit is there to buying a car privately as opposed to a dealer? I know the 12% tax gets charged right across the board now, so private sales don't get that benefit anymore... what additional costs are tacked on if buying at a dealer? ......

Two biggies when dealing with a licensed car dealer.

1) They will negotiate down to the penny, then when you go to sign all the paper work with the "office manager" (I think the salesmen take turns playing that role) there will be "paper work" fee, "lien check" fee, "transfer" fee etc etc.

As previous posters have said, don't pay it walk out, whatever. They come crawling back.

2) There is a good thing about dealing with a dealer. They are all covered by the VSA (The Motor Vehicle Sales Authority) http://www.mvsabc.com/

The vehicle you buy could be a poorly repaired total loss, a stolen renumbered vehicle, a high miler with a spun back odometer, lots of oil patch pickups from the Edmonton area are spun back to the tune of hundreds of thousands of KMs each. If something goes sideways you have recourse through the dealer and the VSA, only if you've purchased from a BC Dealer.

For example if you get scammed into buying a re-numbered stolen. The Vehicle ID number and markings on the vehicle will be for a "clean" vehicle, if later it is discovered to be a different, stolen vehicle, say good-bye to the vehicle and as a result your money. If you have the vehicle inspected by a mechanic it's very unlikely that he will discover the re-numbering. They check the mechanical condition, not it's identity.

Your best bet for a good price is likely a private sale, but it can be a real mine field.

Good luck

[Dizzy1]

I was looking at a used car a few years back. The dealer wanted $24000 for it. I offered $22000 but they didn't accept it so I walked out the door. No word of a lie, 3 weeks later it was in the paper "on sale" for $19000 ... they could have made $3000 off me but nope, the salesperson had to try and tango and ended up stepping on his on feet.

I ended up picking up the car for $18500 :)

[Jo]

One of the things I found is that one must remember the salesman is human, with all the foibles associated. Therefore, just as he or she plays you, you need to play them as well. If they get their back up, they will often do as said above, they'd rather lose money than back down to you. So, if you remain friendly and personable, and interact with them as peers, you can go further with the negotiations. It is knowing exactly when you have them on the hook. Basically, you just do to them what they do to you, but without them knowing it, lol.

[kgcayenne]

When they try to be 'less than forthcoming' and yank your chain for more than a week as they work out a higher price from another customer who came after you...yada yada yada, you can totally make them cry.

[Jo]

The game is always played best with healthy doses of friendliness and good-will, along with the understanding that they really are just doing their job.

[kgcayenne]

One ceases to feel friendly when one's daughter is in tears.

[Shawner]

Still looking for a truck. My inlaws have agreed to lend us the cash so that's no longer a problem, but now I've got a different question that a guy at work brought up.

I'm interested in a truck. The guy still owes $9500 on it but said he'd be happy if he could sell it for $9000.

- If I just gave him a cheque, he could decide not to put the money down on the truck loan, there would then be a lien put on it and they could take the truck, correct? Is the only to prevent this to go to his lender when I give him the money to ensure that it's put down on the loan? Do I get a letter or somethign stating that it's clear?
- If he only put down 9000 of the 9500 loan and doesn't have the 500 to pay off the remainder... is that 500 still against the truck? Again, could he decide that he doesn't want to pay that 500 and then his lender comes after me?
- would any of this be an issue if I bought from a dealership (either large dealer or small private one)?

Thanks