Wow, guys I'm diving in head first on this

SnakeEyeSS · December 5, 2004

EDIT new info, the insurance will cost over 6,000 a YEAR!!!! that's 500 per MONTH, higher than the car payment, very unreasonable.

Well this afternonn after thinking about the conversation I've been having with CNMT in the other thread(it's all HIS fault), I decided to call dealers when I got home. One 10 minutes away has some, 2 new 04's, one used. I test drove the used yellow one. they were asking like 33,000 or something but I ended up talking to one salesman on the phone, and another there. they both admiteed the vehcile had been there a while and management wanted it gone(I already knew this it's been sitting there a while) according to the salesman "The last used car manager actually paid more than MSRP for this when he found it "used", it was after they had come out and were selling quickly. it's kinda shocked us. the NEW used car manager wants it gone now, we know we are gonna take a hit.".... I noticed he said they now have a different used car manager.....

he told me that is was considered used because it was used a a show car in some shows,. the sticker says it has 1,500 when they got it(now has 2036) and I think they've had it 3 or 4 months. it was being held but the contract ran out when I looked at it(I arrived just before closing, the guy never showed up to buy it that day, and it DID had the "being held" thing in it). He told me it was being held 27. hecould tell I was interested, so aske dme if I wanted to make an offer. I told him I HAD to go lower, so 26,500. well, they took it. he called back and said "sorry, since you already left, but the manager was still here he said he'll take it". they wikll hold it till monday night for me to decide over the weekend. they only thing wrong is 1/4 chp of missing paint on the side skirt.

okay so I get home, and start researching used GTO's(remember, I had gone with info on new ones). edmunds says this car is worth 26,755.

634 miles away, a dealer has a NEW 04 GTO, for 27,200 after incentives, with GMAC financing. although there are several use wanting around 29K or more around the country.

so, should I go back and offer 25K, or less? I realized since they already took my first offer, this isn't politcally correct, buy hey, this is a lot of money!

My plan is simple, as I didn't realize how big the payments were gonna be(I'm usualy really good about that but the car got me). I need to lower the price. around 1,500 to get the payments a little "safer"

combine insurance cost and payments, and I'm looking at spending 750 a month on this fast banana. yikes!

apache sierra · December 5, 2004

Maybe you could shoot them a OUT THE DOOR PRICE. That is with taxes, license etc. I've found myself in the same position before and didn't feel like they would take a lower price so I figured out the taxes etc and offered the otd figure that was about 2100 lower than my original price. Well they came back with some goofy figure(trying to confuse me) But I told them I didn't figure the taxes and all when I originally offered the price,and have to rethink this. If they have been holding on to the goat for a while they may be will take the otd price after a little haggling

SnakeEyeSS · December 5, 2004

yeah, thanks a lot for that input, it might do the trick. Also, the fact that the insurance+car payment total is so high, I need to wait for a few more paycheks to put down, or get them down an equal amount.

I ALSO figure something very important out. remember I Was wanting a house, which might stop this and I was figureing payments with a loan calc, which goes by MONTHLY intrest. so mortage payments will be a bit less than I figured.

I was getting 650~ calculating it myself, with 6% yearly intrest., on a 110K/15Y loan, but an online mortgage calc with telling me 930.......

I went 110K devided by 15 years. (to get overall yearly payemnts)

took that total, added 6%(to yearly payment)

divided that total by 12(to get monthly payment)

I do something wrong?

o4yukonxl · December 5, 2004

You need to use the mortgage calculator to get the correct monthly payment. Your calculation is using simple interest not compound interest. They calculate your interest every month based on the remaining principle every month. Just using 6% divided by 12 isn't accurate. Also, you need to figure in your property taxes and homeowners insurance. If you're putting less than 20% down they may require mortage insurance also, it protects the lender in case of default.

Bottom line, you will be paying more than $650 a month.

SnakeEyeSS · December 5, 2004

yeah it looks like 958 is the number, I realized it after I used one of those calc's that breaks it down into the individual factor.

tack on about 200 for local taxes/insurance for around here, then another est 200 month for utilities for a nice estimate of around 1350 per month payments, on for 110K. if I bought a slightly cheaper house, or saved up 10K more to knock it to 100K, or if I went with a 20 yr, or went t 5 years of payments on the goat instead of 4, that would all be getting be right around the max, providing I can get the dealer down to 25K, with them paying tag, title, taxes. I will over them 24K + them pay tag title, taxes, with the hope they come down to at least 25K, monday morning

apache sierra · December 6, 2004

Try extending the loan out to 20 or 30 yrs. It will drop the payments a good deal and you can always pay extra each month on the principal to drop the balance quicker but if you are strapped for a month you don't have the higher payment of a 10 or 15 contract. Also check around for intrest rates. Sometimes credit unions and online lenders offer deals with no points.

Wingnut · December 6, 2004

Try extending the loan out to 20 or 30 yrs. It will drop the payments a good deal and you can always pay extra each month on the principal to drop the balance quicker but if you are strapped for a month you don't have the higher payment of a 10 or 15 contract.
<{POST_SNAPBACK}>

Exactly. Even though I could have done a 15 year note on my house, I did a 30. If I keep up with the same payment schedule, I'll pay it off in 14. But there have been a couple of months where it's been nice to have a couple hundred extra sitting around (like Christmas). It just takes a little discipline.

By lowering your monthly payments like that, you also lower your "debt-to-income" ratio. (It really doesn't do anything of the sort, but that's how all the banks see it anyway.)

Get the house first, then the hot-rod. The house is an investment, and WILL make you money. The car will not.

Oh, and if you care at all about the ladies...Owning your own house makes your desirability factor go up by a factor of 12 to the 30th power. They see it as a sign of stability, responsibility, and a non-fear of long-term commital. Trust me on this one...You'll thank me later.

That's my .02 anyway.

CMNTMXR81 · December 6, 2004

LOL! Me at fault.

I'm an angel!!!

I sent you an email pertaining to your questions about buying this new goat. I will send you a PM about mine now.

SnakeEyeSS · December 7, 2004

well guys if you didn't see the first post edit, insurance will run me 6K a year, which is 500 a month, higher than the car payment!!! that's absurb!!!! soo basically I can't get a new, hi-po car until I'm 25.

my best bets are to continue with past plans: a first generation Camaro. it won't have the "frills" but I can add in most of the fun.

CMNTMXR81 · December 7, 2004

Wholly shiznit! I pay almost $900 a year on this thing in Chicago me being an unmarried (for now) male.

Put your BMW as your primary driver then list your GTO as a "secondary/recreational vehicle driven less than 5,000 miles annually" and that should drop it considerably.

You'll still get full coverage, just in a different bracket.

The SPEEDY · December 7, 2004

WOW! That is insane! My dad is listed as the primary driver on my car, and I'm still listed on the Celica. Mine comes out to $180 a month.

SnakeEyeSS · December 8, 2004

the agent told me it a combo of not being three years from my last wreck/ticket(March 03), and being 19.

Wingnut · December 8, 2004

Put your BMW as your primary driver then list your GTO as a "secondary/recreational vehicle driven less than 5,000 miles annually" and that should drop it considerably.

You'll still get full coverage, just in a different bracket.

<{POST_SNAPBACK}>

I'm not sure how well that would work here CMNTMXR81...They wouldn't let me do that for my Blazer. Something about state laws.

They may have been feeding me a line of BS as well. But that's the reason I only carry liability on the Blazer.

CMNTMXR81 · December 8, 2004

It could very well vary from state to state.

I bought the Camaro when I was 26/27, was single, male, in Chicago and paid no where near that even before I moved it to this status (my agent actually recommended it).

You do have to jump through a few loopholes. For instance, he (my agent) had to come out and take pictures of the car and take a odometer reading which at their discretion will be verified. My agent may be a little lax in this area because he knows me and knows I honestly don't use them as daily transport. As such, he feels confident that I don't exceed the limits.