Being Ripped off for paying cash on a car!

[mavric]

We are 32mo's into 60 mo chapter 13. So no financing.

I was looking to trade down my car to something cheaper with a warranty

MSRP on the car I wanted was $12,800 , Dealer had a $3000 discount on it , So the price would be $9800.

My car is worth $8000 , so I am looking at about $1800 + TTL will pay in cash. So call the dealer , they want do it because $2000 of the discount come's from financing .

So if you pay cash it cost $2000 more . BIG RIP OFF.

[IBroke]

MSRP on the car I wanted was $12,800 , Dealer had a $3000 discount on it , So the price would be $9800.

This is actually the kind of business where you should run as fast as you can. A 25% "discount" means that the initial price was heavily inflated in the first place. If a dealer needs to do that in order to get attention, you better stay away.

[bcohen]

If you're thinking of "trading in" a car that still runs fine, then you're doing it wrong. Whatever happened to driving a car until the engine is worn out, or the body has rusted through before thinking about buying new? I have never considered "trading in" a working car to buy something else, as the very idea seems wasteful. The day that I start shopping for a new car is the day that I send my current one off to the scrapyard because it's too old and worn-out, or was destroyed in a collision. And of course, financing in general is a rip-off, unless you are able to qualify for an interest rate of 5% or lower.

[AngelinaCat]

I heartily second and third the above two posts.

What is wrong with your current car? Other than you want to lower your payments? How about going to your bank or CU and talking with them about that?

[mavric]

Thanks for reply.......... The car I was looking to trade is paid off, it is pushing 108000 miles on it. my 2nd car has 190000 .

my wife drives 50 miles one way to work, I was just thinking of getting something we would not have to worry about for the next 3 years to the end of the ch 13. If anything were to break it would have a warranty.
what p me off was the price was going to be $2000 more because I was going to pay cash.

[bcohen]

It is not uncommon for dealers to advertise a price which includes various rebates--such as the dealer "holdback" which is earned when they sell a certain number of units, and incentives from the manufacturer's finance arm. Without getting into a debate as to whether such practice is legitimate or not, I would simply like to point out that most new-car dealers do this.

In any case, the fact that you have a car with 190000 miles on it--which presumably still runs and drives fine--should let you know that your car with 108000 miles on it still has a lot of life left to go! I still stand by my advice that you keep your current cars (but do set aside money for repairs) and avoid the temptation to buy something new, which will require monthly loan payments and higher insurance costs.

[IBroke]

It is not uncommon for dealers to advertise a price which includes various rebates--such as the dealer "holdback" which is earned when they sell a certain number of units, and incentives from the manufacturer's finance arm. Without getting into a debate as to whether such practice is legitimate or not, I would simply like to point out that most new-car dealers do this.

This is certainly true. However, in this case, the proportions don't match. I can see a finance-company handing out a $2K incentive on a $50K loan - but at less than $11K, I'm having my doubts. If somebody with excellent credit would obtain this loan at an appropriate interest-rate, that lender wouldn't be in business very long...

At 8.5% interest (which, as you know, is not exactly a rate reserved for excellent credit) over 48 months, the total interest paid would be $1,977.68. No way I - as a lending institution - would hand out a $2K incentive for this loan.
Sometimes, the numbers speak for themselves - and in this case, they are saying "rip-off"...

[Pandora]

108K miles is nothing on a car if you take care of it and maintain it regularly. Our vehicles are 12, 9 and 7 y/o respectively, and my car has 120K miles on it; runs like a dream. I plan on driving my cars until the engines and trannies die, then just replacing those components because the bodies are still in perfect shape. We've got friends that are still driving their '82 toyota and its pushing 300K LOL! Runs like a trooper......its all in how you maintain them ;)

I will never again have another car payment.... either I'll replace the engine/transmissions or I'll buy used.

[AngelinaCat]

Our 11 year old VW Jetta TDI wagon has around 255K on it, and is doing fine.

has been meticulously maintained since it was new, by 'Hub. It has had some major maintenance items done, such as changing the timing belt at 100k. Ours has been changed twice. This is something the dealership has to do, and we have saved for it. Otherwise, 'Hub is very handy and can do most of the work himself. When the transmission started acting up, 'Hub went online and researched the problem. He purchased the solenoids and we replaced them ourselves. We spent around $300 in all, as opposed to VW, which charges $3,000! to replace the transmission. They don't FIX them; they just swap them out.

Yes, the interior is looking a bit shabby and the paint is dull and scratched in areas, and there are a few dents, but overall the car is and has been reliable and comfortable for long trips.

And it is PAID for!

[AngelinaCatHub]

Greetings all. I've been busy, very busy, so been away.

I'd like to chime in here about cars. Back in the 60's 70's, you were lucky to get 100k out of an engine without doing major work, such as valve job and rings. Today the technology is so good that there is no reason not to get 300k out of any brand. As Mrs said, to date except for the timing belt religiously changed every 100K, I have done my own work. The tranny is a tiptronic, a VERY good electronically controlled unit. The engine is diesel which will live longer than the body. Get this: A Volkswagen is a German car, Engine made in Czechoslovakia, tranny made in Japan, assembled in Canada.

I change oil and filter every 5K. Here is what I do that helps long engine life; always put engine cleaner into oil and run ten minutes. Drain oil and replace plug. Put one gallon of diesel into engine and run for 30 SECONDS. Drain and change filter. Do all other work while the drain plug is out to remove all possible oil and diesel mix. The diesel in the oil pan and 30 second idle, will wash out the hydrological lifters and chase the old oil. Put plug back in and fill with 5 quarts (or capacity) with pure synthetic oil. I have been told that my engine was as clean as a new delivered car.

Now here is the important thing: Paid for cars get better gas millage. Do not confuse need with car lust. You don't need a new car. 100K cars today are not even in their middle age, and are NOT worn out. Lube then consistently and have timing belt changed when due. The belt is very important to do. I've changed them myself but not on this type engine. Save your money for more practical stuff like emergency items such as food and warmth.

Sorry to bore all of you, but I'm fervently against car payments. 'Hub