They must've gone for some upgrades because the base model starts at under $15,000. They must have gotten some touring package or something. It would have been better if they cut back on the luxuries and stuck more to the necessities.
that's what i advised them to do but my cousin "doesn't believe in buying used cars" and as cannonball posted, i suggested they go with a basic model. but it was pretty much loaded. i guess one can't expect a good deal if you've got bad credit. but they could have declined the optional insurance and "extended warranty (60 mos/60000 miles)".
They tried to pull that crap on my sister. adding all the fees and whatnot. she called back the next day to cancel all that crap. it took a few weeks and a few call backs to get rid of all that stuff but shes finally clear of it. those salesmen are terrible once they get you to buy they can care less about anything else.
They bought a 28k new car for a kid? Please tell me he's over 21. If not they got screwed by more than the dealer.
Same thing happened to me; it was basically the first time buying a new car by ourselves (when I bought my truck a few years back my mom cosigned). I worked a great deal on the car, so that wasn't the problem. The problem was I was a little fuzzy on the financing aspect and the guy totally screwed me over. No worries though cause I refinanced through USAA like the very next day. I still got stuck with an extended warranty I didn't want, but oh well. Live and learn.
Its like you didn't even read the original post. They just like you got the car for 19500. The difference is that they wanted the insurance and extended warranty pushing it up to 22.6k. Then they got a loan for the 22.6k @ 4.9% which means the amount the would have to borrow to is 27k to cover the interest of the 66 months of the loan. ITS NOT THAT THEY GOT SUCKERED, have you ever taken out a loan before? Like any other car loan they can pay more than the minimum and they won't have to pay the interest of the time period after they'd off the car. I also could argue that paying cash for a whole car might not have been the best thing like you did. If you can get the loan and make payments It might be smarter to take that cash and invest it and hopefully it would make more money than the 3-4k that they paid in interest on the loan.
there's a saying, i don't know where i heard it, but it goes like "rich people don't buy new cars unless they can pay the whole thing upfront."
Good luck paying for those repairs on the used car whose history you never knew. Kyakko, it's "if you're asking for the price, you probably can't afford it."
extreme hypothetical: if they pay $5000 the next 4 months and $3000 the following month which would basically cover the 22.6k that was financed, they would be off the hook for the remaining 4k (27000-23000)?
ever heard of certified pre-owned? or used lexus/acura/infiniti bousold by the same dealer which serviced them?
2600 dollars for an extended warranty for a 22K car?? You can get you whole engine replaced for 2600 bucks.
I'm not registering the question correctly right now, but you should be able to call the finance company and they'll give you the amount you'd have to pay to pay it off. Like if you refinance with another company you obviously wouldn't have to borrow 27k, but the the 22.6k + whatever interest was owed from the amount of months that have passed so far.
Yes - it's just the same as a home loan or any other loan. Interest accumulates over time. If you pay it off early, you don't owe that interest. There's nothing wrong with the loan aspect of the purchase - 5% if you don't have good credit is not bad. It's the add-ons aspect that is questionable.
Yes, sir, but I don't think that's the kind of cars she was talking about... do you think she'd be? Look at some threads she's started... What am I saying, maybe she DOES buy Lexus's and other luxury cars from selling the tickets...!
Well, with a new car your odometer starts at zero. There's the clear advantage. You know how well the car was driven because you owned it since it rolled off the lot. An honest dealership wouldn't have owned your cousins with all those fees and the extended warranty. I know they are try to make a buck but they can still do that without raping the customers. Extended warranties can be bought through third party vendors at a fraction of the cost.
