Vehicle Financing Question

[Doom Dealer]

My gf is planning to finance a new Acura. This is going to be the first new car purchase for her and myself.

I did some research about finding out the vehicle base cost to negotiate prices and so I think I'm fine there.

I do have some questions in regards to financing... here they are:

1. What are the steps to purchase the car with financing? Do I get financing pre-approval first and then shop around different Acura deals for the best vehicle price? Or do I shop around first, then make offers, and then get the financing pre-approval?

2. My gf currently drives a Corolla. We are planning to sell it privately first and use the money as part of the downpayment for the new Acura. Do we sell the vehicle first and then begin the financing pre-approval? Or is it possible to get pre-approval first and then sell the vehicle? The goal here is to minimize the amount of time my gf will be without a vehicle.

Oh and if anybody in Calgary has some recommendations about where/who to get an Acura from, please feel free to post your thoughts! :D

Thanks for the help in advance! :)

[charliebrown]

2. My gf currently drives a Corolla. We are planning to sell it privately first and use the money as part of the downpayment for the new Acura. Do we sell the vehicle first and then begin the financing pre-approval? Or is it possible to get pre-approval first and then sell the vehicle? The goal here is to minimize the amount of time my gf will be without a vehicle.

Oh and if anybody in Calgary has some recommendations about where/who to get an Acura from, please feel free to post your thoughts! :D

Thanks for the help in advance! :)

hmm...if you're going to shop around, definitely see what kind of value you can get for the corolla as a trade-in. Usually there's more bargaining room for you as you may be able to use the trade-in to reduce ur capital cost

From leasing experience, we went directly to dealerships to get the lowest price for the car we want. Then worry about financing approvals. Before you move forward, just make sure you have a good idea of the monthly payments you'll have to make (i.e. car pymts, insurance, gas, maintenance, etc)

You might also want to give your insurance company a call in advance to find out how much more you'll be paying on a new acura vs the corolla. (we gave our agent a list of 5 cars we were considering to weed out the expensive ones from an insurance perspective)

Being in alberta probably helps out quite a lot (save 8% PST compared to us...)

[ichpen]

I've found that you have a lot more room to negotiate if you go via the dealerships as opposed to a bank. You can always do the buyback thing at RBC which makes your purchase essentially a lease but will substantially lower your payments.

Whatever you do, don't settle for the first 7-9% interest that they read out to you. I've managed to talk them down to 2%.

[lesnar]

I've found that you have a lot more room to negotiate if you go via the dealerships as opposed to a bank. You can always do the buyback thing at RBC which makes your purchase essentially a lease but will substantially lower your payments.

Whatever you do, don't settle for the first 7-9% interest that they read out to you. I've managed to talk them down to 2%.

I'm just curious, what's a decent rate for a Used Car?

[sshe11]

I'm just curious, what's a decent rate for a Used Car?

around 7% i'd say ... you get cheaper financing on new cars ..

[ichpen]

around 7% i'd say ... you get cheaper financing on new cars ..

2% (again)..... Guess Nissan was desperate.

7% would be higher than the going rate of a lot of LOC so it makes little sense.

[charliebrown]

2% (again)..... Guess Nissan was desperate.

7% would be higher than the going rate of a lot of LOC so it makes little sense.

That nissan rate applies to specific models...7% LoC would be decent after reading this thread:

http://www.redflagdeals.com/forums/showthread.php?t=299394

of course, the rate largely depends on your credit rating

[regrus]

Why don't you check to see what the Acura dealer will give you on trade? How old in the Toyota?

If you sell it yourself you can't charge the buyer GST. If you trade it in the dealer credits you the GST on the trade in price of the Toyota against the GST on the Acura. So you only pay the difference. You would have to get that and more to make it worth while selling it yourself.

Dealers can almost always get more money for your car that you can as they can finance it which makes all the difference to a purchaser.

[ichpen]

That nissan rate applies to specific models...7% LoC would be decent after reading this thread:

http://www.redflagdeals.com/forums/showthread.php?t=299394

of course, the rate largely depends on your credit rating

What I'm attempting to convey is that their rates are never set in stone irrespective of whatever offer is running for the masses. When they say 7%, it is very very negotiable.... Especially if you get a younger more desperate sales rep.