How To Buy A New Car

[SCCutler]

That sounds like a great way to do it! Now, how can I find someone like that up here? Not that I mind driving a car back from TX every few years, but I'm guessing it's a lot harder to get the winter packages down there!

My current car's winter package: Heated seats, heated mirrors, windshield wipers on the headlights, etc... Sure would like a heated steering wheel next time around.

The 535 we bought for Celia has all the good stuff... Well, no headlight washers, but bun warmers were a must. We may not get Wisconsin cold, but it's cold enough that we want some comfort!

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And Henning, the auctions about which I write are dealer-only (as in, you have to hold a Texas dealer license to bid). The prices I've gotten have been legitimately good, certainly less than any prices you could get from dealers, and especially less than private-party sellers, who slmost always think their car is worth what they owe on it!

 

[FormerHangie]

The 535 we bought for Celia has all the good stuff... Well, no headlight washers, but bun warmers were a must. We may not get Wisconsin cold, but it's cold enough that we want some comfort!

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And Henning, the auctions about which I write are dealer-only (as in, you have to hold a Texas dealer license to bid). The prices I've gotten have been legitimately good, certainly less than any prices you could get from dealers, and especially less than private-party sellers, who slmost always think their car is worth what they owe on it!

My wife was more insistent on cooled seats than heated ones. I wanted her to get an XLT, she wanted a Limited. I asked why, she said cooled seats. When a lady gets to a certain age, I can see where they would want that option.

 

[N747JB]

What about GAP insurance? Worth it or a rip off? It is only good for 2 years, seems like you could still be upside down then? Even more so because of the gap insurance?

If you are financing a large % of the selling price, it's probably not a bad idea. If you are putting 20% or more down, cash or trade equity (rare around here) I would pass on GAP coverage, you'll likely be in a breakeven or better situation if you have a total loss. GAP prices vary according to who's selling it, but $4-500 is fair for car loans under $60K. Cost is $300.00 or so depending on the provider, some folks sell it for $800.00 which is the maximum most lenders will allow.

 

[pilot_dude]

Southeast Toyota, I believe, is the last independant Toyota distributor left in the country. They have a reputation for being brutal on the dealers with add ons, port fees, etc. Back in the 80's they would add these hokey looking vinyl tops of Tercels! They were hot sellers and added at least $100.00 per car for Southeast Toyota. They also loved to add "chrome" wheel covers that would rust to pieces in 12-18 months.

Gulf States Toyota is the other remaining distributor.
Back to SET, Jim Moran & Associates, and now his family since passing, made more money than one can count. Last I saw it was north of $1B. I partied on one of his yachts in Bermuda many years ago. Very generous man.

 

[N747JB]

Gulf States Toyota is the other remaining distributor.
Back to SET, Jim Moran & Associates, and now his family since passing, made more money than one can count. Last I saw it was north of $1B. I partied on one of his yachts in Bermuda many years ago. Very generous man.

I didn't realize Gulf States was still around, I don't keep up with that end of the business much. Jim Moran certainly knew how to make money, and I think the family business is doing fine after his passing. JM Lexus is one of the largest Lexus stores in the country, plus I think they've got more dealerships as well. They are big in the finance and insurance business, consulting with hundreds of dealerships, selling their own products such as warranty, GAP, and a ton of other things.
He owned several yachts over the years, all with the same name, Gallant Lady, I believe. I read about it in a boating magazine.

 

[RV10flyer]

With cash.

 

[Bill]

When a lady gets to a certain age, I can see where they would want that option.

Seen on a t-shirt of a menopausal aged woman:

"I have hotflashes and a handgun, any quesitons?"

I was laughing for a while after that...

 

[N747JB]

With cash.

True in many cases, but a lot of manufacturers, like Ford, are offering extra rebates to finance, up to $1750 on F-150's, so it can make sense to finance some of the balance. Even if it's just to get the rebate and pay it off at the first payment. We have customers do that all the time, they pay a couple bucks in interest, but save 10 times that amount with the rebate.

 

[docmirror]

On the finance front, I found every dealer using it as a way to move the big markup crap. At Toyota, they advertised 1.9% for 5 years. So we went over and looked at the little Scion - nope, can't get finance on that model. We looked at the Prius C and no low finance on that one either. But - if we bought a fully loaded RAV or Sequoia you can get the low financing. Ford wasn't offering any kind of finance deals on the C-Max. It was basically the same. Funny that they offer the good finance on the 150 which is their best seller. Maybe they are concerned about being caught by Toyota or Chevy.

 

[Geico266]

True in many cases, but a lot of manufacturers, like Ford, are offering extra rebates to finance, up to $1750 on F-150's, so it can make sense to finance some of the balance. Even if it's just to get the rebate and pay it off at the first payment. We have customers do that all the time, they pay a couple bucks in interest, but save 10 times that amount with the rebate.

On the finance front, I found every dealer using it as a way to move the big markup crap. At Toyota, they advertised 1.9% for 5 years. So we went over and looked at the little Scion - nope, can't get finance on that model. We looked at the Prius C and no low finance on that one either. But - if we bought a fully loaded RAV or Sequoia you can get the low financing. Ford wasn't offering any kind of finance deals on the C-Max. It was basically the same. Funny that they offer the good finance on the 150 which is their best seller. Maybe they are concerned about being caught by Toyota or Chevy.

We are telling them we will finance to get a better deal and then pay it off within a month.

 

[N747JB]

We are telling them we will finance to get a better deal and then pay it off within a month.

Happens everyday, what they are counting on is most people don't actually pay them off. A lot do, especially the ones that finance the minimum amount, I think it's $7500.00 with Ford, but many think they will and when it comes time to write that $25,000 check or mail in a $500 payment the $500 wins a lot of the time.

 

[RV10flyer]

True in many cases, but a lot of manufacturers, like Ford, are offering extra rebates to finance, up to $1750 on F-150's, so it can make sense to finance some of the balance. Even if it's just to get the rebate and pay it off at the first payment. We have customers do that all the time, they pay a couple bucks in interest, but save 10 times that amount with the rebate.

Thank you and the rest for the advice. We are on our 4th and 5th vehicles since our wedding 25 yrs ago. Three new and two used. We will be looking for the 6th soon. Another new one.

 

[Henning]

I didn't realize Gulf States was still around, I don't keep up with that end of the business much. Jim Moran certainly knew how to make money, and I think the family business is doing fine after his passing. JM Lexus is one of the largest Lexus stores in the country, plus I think they've got more dealerships as well. They are big in the finance and insurance business, consulting with hundreds of dealerships, selling their own products such as warranty, GAP, and a ton of other things.
He owned several yachts over the years, all with the same name, Gallant Lady, I believe. I read about it in a boating magazine.

Yep, he has had built the longest string of the fugliest boats, all named Gallant Lady. I don't know anyone that likes working for them.