It appears that your OTD price with TTL is a good deal.

However, I think I'd go with an '04/'05 because not only is it cheaper, but I prefer it over the '06 -- no DBW, don't like the '06 wheels, not sure what I think about the new leather seats, and the '06 has traction control as well right?

 

well yes it is a good deal, but as i have to put 10k down, i am completely going to lose that money.

The s2k has a really bad depreciation rate - almost 6k the first year pretty much.

If i buy it for 33.6 OTD i will lose the 6k in depreciation and 4 k in paying back the interest on the first year, so i will lost the 10 k and come out with nothing if i sell it. What a waste of 10 k right?


If i buy used, i will pay around 26k, finance only 16k and will probably get back 4k if i sell it, or around that figure...

I will then not have to worry as much if the car gets scratched or anything if it is used, and will not worry about the fact that i blew 10k in a day.


Opinions on those thoughts?

 

I put 5K down on an 05 and my payments are in the low $ 500's/month for 48months. Purchase price of the vehicle was around $ 31,500K + taxes.

For every 5K you put down your payments should go down around $ 100/month.

So even as a first time buyer your payments should not be more than $ 450 or so/month with 10K down.

 

The OTD of $33600 is good, but the monthly payment of $620 for 4 years of $23600 financed is not so good, it is 12% interest. You should get a loan from a Credit Union in you area, the interest can be several percentage lower than from dealer. My Credit Union has 4 years car loan with 5% interest, it would make monthly payment down to $544 for $23600 loan amount, almost $80 less a month.

 

What can I say but

 

That's not a bad price, but you may be able to do a little better. I got mine for $32,600 OTD in Fla.

It was an easy decision for me to buy new, as we don't see as much depreciation here as you've described. 04/05's with low miles are only about $1500-$2000 less than what I paid new. It was worth the additional cost to me to know how the car was run during the break in period.

 

This sounds better, but i have 0 Credit history in the usa. Perhaps that is why i am getting such a high interest rate...

I dont even have a credit card yet (although i have had a checking and debit account for 2 years).

Jeez 12% if that is the rate is high That is a deal breaker.

Well i may be going down to the dealer today to see what we can do.


Josh.

 

Josh,

I just want to make a few comments...

1) Buying a new car is NEVER a "good deal" -- unless you had the means to buy an Enzo or something immediately collectible. All cars depreciate. I don't think the S2000 does any worse than most -- better perhaps.

2) 12% is a major screwing. Don't do that. Find a better way to get a loan, or defer your purchase. That's my opinion. A credit union is often a good way to go. Prime is around 7% or so now, so you really should be able to do much better than 12%.

 

Western Fedaral Credit Union has 4 years car loan as low as 4.85% (if you appy online and have automatic payment from your checking/saving account). For the loan amount of $23.6k, the monthly payment is $541.89 for 4 years and that is much better than $620 fromHonda dealer, you will save almost $4000 over the life of the loan. Do not rush into buying the car now, try to get pre-approved car loan with Western Fedaral Credit Union after becoming a member with them, then shopping for your car later. Remember that for every 1% interest rate different, the monthly payment for that loan amount increases by about $11. Don't go to the dealer today, just call them and let them know that interest rate at Western CU is 4.85% to see if they can match it. If not, then tell them that you will appying for car loan with Western CU and buy the car later. If you go to dealer today, they will pressure you into buying the car today with higher interest rate.

You may be able to get better price for your car next week, before year-ended. Many dealers will discount heavily to meet quotas for the month and quater.

 

I understand getting a new car is never a good deal chazmo, but when you consider the two options i have, a used one is a better one.

If i were to apply to a credit union today, would they be willing to give me an auto loan the same day?

My uncle seems to think that there is no way that i will be able to obtain a loan at a rate less that 9% because of my lack of credit...

How long does it take to join a union and get approved for an auto loan usually?