Question about purchasing a new car

[CapeCodTenor]

Ok, this may sound like a stupid question, but I really don't know...so forgive me for asking. When purchasing a new car, do I give the down payment to the dealership and then finance the rest from the bank? So if the car I'm buying is $16,000, and I have a down payment of $3000, I give the down payment to the dealership and finance the remaining $13,000 from the bank, correct? The last car I got brand new, which was the one recently totaled, my dad bought and I paid him back...so I've never had to deal with this. Thanks.

CCT

 

[shep]

Sometimes the dealer has better rates, when we bought ours in February i think we got 3.9%...We did go through the bank once or twice though

 

[Christine]

Yes, you give your dealer the down payment.

Before you go to the dealer, go through a bank and lock in the lowest car loan rate you can find (credit unions have the best).

The dealership will most likely offer your financing. Tell them what your bank rate is that you have already secured and see if they can beat it. Sometimes they can and sometimes they cannot.

 

[CapeCodTenor]

My wife is currently looking into various banks and seeing what the best rate I can get. I think I've settled on a Hyundai Elantra.

 

[Frantasmic]

If you can, wait a week or 10 days. Find the youngest salesperson
who probably hasn't been there very long. Then, deal like
crazy. They are near the end of the month and typically may
not have met their quota and you just might get a good deal.

 

[Hedy]

My wife is currently looking into various banks and seeing what the best rate I can get. I think I've settled on a Hyundai Elantra.

If you're eligible, Hanscom Federal Credit Union is in MA, and has good rates.

 

[disney junky]

If you finance through the dealer, be careful because sometimes they use financing to improve the profit margin. If you do a web seach on buying a new car, you can some really good advice.

 

[Jestocost]

First, Hyundai has some financing (3.99% - 5.65%) and cash back ($1,000) incentives on the Elantra through at least 4/30. Usually that will mean you can pick either one, but not both. You're probably not going to find a better rate than that from a bank, but you need to figure out if it will be better for you to finance a larger amount at the lower rate from Hyundai or a lower amount (add $1,000 to your downpayment) at the rate a bank will give you. Also, if coming up with the downpayment is harder than it would be to pay a bit more each month, use the $1,000 for some or all of your dp and finance the rest.

So, if you put your $3,000 down and can finance the balance at even the highest promotional rate of 5.65%, your monthly payment for four years would be $303.22. If you took the $1,000 and added it to your $3,000, then financed $12,000 through the bank at 6.24% for four years, your monthly payment would be just $283.14. If you qualify for a lower promotional rate or can get a better deal from your bank, those numbers will change, obvioulsy.

 

[DawnCt1]

If you can wait, good deals are often available in the summer. I knew I wanted a CTS and held out and was able to get a great price and 0% financing. In that case, I didn't put any money down. Nothing beats free money.

 

[CapeCodTenor]

If you can wait, good deals are often available in the summer. I knew I wanted a CTS and held out and was able to get a great price and 0% financing. In that case, I didn't put any money down. Nothing beats free money.

I wish I could. Unfortunately my car was totaled this past weekend and I need a vehicle within a couple of weeks. I'm borrowing my DBIL's truck, but I have to return it soon.

 

[DawnCt1]

I wish I could. Unfortunately my car was totaled this past weekend and I need a vehicle within a couple of weeks. I'm borrowing my DBIL's truck, but I have to return it soon.

That does change the schedule. DS#1's car was totaled back at the beginning of March and time was of the essence. That I understand.

 

[Chicago526]

If you can, try and see if you can buy it on Apr. 30. That's the last day of the month, for the sales guy to met his quota, and if he's desperate, you could get a better deal! It's a Monday to boot, and that's usually the slowest sales day of the week! You could be his only customer that day!