Financing certified Pre-owned @ 0% - advice?

[Sykes]

So I'm considering financing a vehicle but I've never done it before - what should I expect?

The vehicle in question is a Certified pre-owned 2012 GTI with 32000 km's on it for $21500 + Tax. VW's got a promo going on for 0% financing up to 60 months. I've sent an inquiry for an 'ePrice', but I suspect that's more of a tactic than anything.

My biggest concern is getting taken for a ride by the dealer and I just want to know what to look out for. Also any negotiating tips would be appreciated too!

Thanks!

[max_boost]

Ask to see the paper work and full breakdown of everything.

That seems like a decent price for the car and 0%.

Any extended warranty?

[ExtraSlow]

0% financing is a good deal, but it would be fascinating to know what price they'd sell you that same car for in a cash deal. Might not be much different, since the financing is though VW Canada, and not the dealership.

[Sykes]

Any extended warranty?

They offer a 2-year/40,000 warranty on top of whatever is remaining with the car. VW's site says new vehicles come with 4-year basic and 5-year powertrain. I've always heard "don't buy the extended warranty", but that's always for consumer electronics - is the same true for cars?


0% financing is a good deal, but it would be fascinating to know what price they'd sell you that same car for in a cash deal.

I'm the worst negotiator ever because I always think prices are fixed and final (and everytime they say 'no' when asked to move on price, I say okay... haha). I'll found out the details today.

[Xtrema]

Originally posted by Sykes


They offer a 2-year/40,000 warranty on top of whatever is remaining with the car. VW's site says new vehicles come with 4-year basic and 5-year powertrain. I've always heard "don't buy the extended warranty", but that's always for consumer electronics - is the same true for cars?


Not a bad thing for German cars. They tends to have more problems and expensive ones past warranty. If the GTI has a automatics/DSG, it may be worthwhile although 2012 is past the bad years.

[Sykes]

Originally posted by Mitsu3000gt
It's amazing what happens to the price when you get up and start to leave. There's at least a couple grand of wiggle room in a $21,000 car in my experience, probably more. The dealer probably paid $15K for it, possibly even less. Deals can be better at the end of the month too to top off their sales numbers, but I'm not sure that applies to used.

I don't know how well this tactic would work in my situation: I'm living in Manitoba right now (in Brandon), but the car is located in Winnipeg - unless I can work something out over the phone, I think I'd have to be prepared to pay the list price lest wasting most of the day driving in an out.

On the flipside, if they do something to get me to make the drive in, that'd be awesome. I'll call and inquire during lunch...

[sabad66]

Depending on the dealership (domestics love doing this), they might try to negotiate the price using payment amounts which makes it tricky to know exactly what you're paying. If they do, tell them you want to work off purchase price and worry about financing/payments after you have a final price. Also remember there will be GST/PST from dealerships.

But yes, be prepared to walk if you don't get the price you are happy with. Don't feel bad about it, just say "thanks for your time but i was hoping for a better deal". Unless this car is super rare, you can always find another one for sale.

[blitz]

Originally posted by Sykes


I don't know how well this tactic would work in my situation: I'm living in Manitoba right now (in Brandon), but the car is located in Winnipeg - unless I can work something out over the phone, I think I'd have to be prepared to pay the list price lest wasting most of the day driving in an out.

On the flipside, if they do something to get me to make the drive in, that'd be awesome. I'll call and inquire during lunch...

Just negotiate via email, I've done it before and it's worked well.

[roopi]

Originally posted by blitz


Just negotiate via email, I've done it before and it's worked well.

:thumbsup:

This works well. My last car purchase (new vehicle from dealership) everything was done via email. Much easier IMO.

[Sykes]

So I've been going back and forth with the sales rep and here's the lowdown on the car:

- It has had two small accident claims totaling under $3k in repairs with a CarFax to prove it. There was damage to the center of both the front and rear bumpers - repaints from a scrape or bump?

- Originally listed for $23,995 but it's been on the lot for over 30 days, hence the price drop.

We're still going back and forth with the details. This thread has been quite helpful with getting a how he's approaching me with this potential deal, haha.


If they paid $17K for the car, $1500 recon, $300 detail, they're into it for $19ish. Try for $1500 off, you're a willing buyer. Good luck with the purchase and if you hit a dead end let me know, perhaps I can try making a call to get you a better deal.

Hypothetically speaking, if you're into it for $19k, why would they sell to make 'only' $1000? Doesn't seem like it'd be worth the effort to me...?

Also, you've already been super helpful - no need have to make a call.

[relyt92]

Originally posted by Sykes
So I've been going back and forth with the sales rep and here's the lowdown on the car:

- It has had two small accident claims totaling under $3k in repairs with a CarFax to prove it. There was damage to the center of both the front and rear bumpers - repaints from a scrape or bump?

- Originally listed for $23,995 but it's been on the lot for over 30 days, hence the price drop.

We're still going back and forth with the details. This thread has been quite helpful with getting a how he's approaching me with this potential deal, haha.



Hypothetically speaking, if you're into it for $19k, why would they sell to make 'only' $1000? Doesn't seem like it'd be worth the effort to me...?

Also, you've already been super helpful - no need have to make a call. On modern cars you're looking ~$1200+ to replace a bumper, so I wouldn't be concerned about those two accidents as long as you can't tell it's been repaired. Could be a minor accident, or as you say scrapes or something. Car looks pretty clean in pictures and paint does look like it matches. Perhaps Redlyne could offer some better insight on this, but the Carproof report shows "Report Date: 2/24/2016 06:55 PM EST", would this mean that they've been sitting on this car for months at this point?

[max_boost]

The art of the deal. Good luck. The GTi is a stellar car.

[SOAB]

a car with CPO warranty has a factory warranty for 2 years and 40k kms after the original warranty is up.

in order for the manufacturer to cover this, the car has to be fixed to a specific level or road-worthiness. brakes, tires, steering, suspension and services have to all be up to date. if not, there is no CPO for the car.

whatever. there will always be people that think all dealerships are crooked and are out to rip everybody off. or that they should be able to dictate how much a business is allowed to make from a deal. :dunno: if only that applied to all businesses!

[Sykes]

Just an update: I chose not to go for it - the 0% for 60 months only applies to all CPO's except for the Golf range (Golf got 0% for 36 months, and then 2.9% and 3.9% for 48 and 60, respectively). My wife and I talked about this at length: I'm comfortable with financing, she's not as much. Eitherway, we both didn't have peace of mind about it, hence why we opted not to move forward (which I feel badly about for the sales rep - he genuinely was helpful)

What's the opinion on this (and I hear both sides): pay for the car up front in cash so it's done and over with, or finance to leverage your savings and cashflow?

[max_boost]

I don't think there's a right or wrong. What's your situation? You control the money? Does your wife understand the payment numbers etc? In the end would it piss her off if you did it without her consent? lol

In the end whatever helps you sleep at night.

:thumbsup:

[SKR]

Originally posted by Sykes
What's the opinion on this (and I hear both sides): pay for the car up front in cash so it's done and over with, or finance to leverage your savings and cashflow?

I think the consensus last time this came up was to finance it, and then pay it off as fast as possible, and then make a thread about it.

[shakalaka]

Here's the thing I go by...when in doubt always keep the money in your bank.

So if the interest rate is 0% or relatively low like 2.9%, why would you want to part with a whole bunch of cash? Keep that cash aside if it bothers you so much and make payments from it. :dunno:

[Sykes]

Originally posted by max_boost
I don't think there's a right or wrong. What's your situation? You control the money? Does your wife understand the payment numbers etc? In the end would it piss her off if you did it without her consent? lol

In the end whatever helps you sleep at night.

:thumbsup:

Haha... our sitation: wife, 3 kids (5, 3, 9 months). My wife put her well paying career in education on hold to be at home, WE control the money together, she understands the payment numbers, and yes she would be upset if I did it without talking it through with her (my 7-years younger self would've probably done it though, haha). I'd like to replace my car with something more practical without being neutered as a car guy (DSG was the happy compromise for both of us as she doesn't like driving stick even though she can). In the end, it was just a gut feeling that we both felt. Experience has told me to pay attention to that, especially if we both feel the same thing (for whatever that's worth)


Originally posted by shakalaka
So if the interest rate is 0% or relatively low like 2.9%, why would you want to part with a whole bunch of cash? Keep that cash aside if it bothers you so much and make payments from it. :dunno:

I'm not necessarily afraid to part with that much money as long as the cash flow is there. Part of the gut feeling was because we didn't feel good redirecting our cash flow to accommodate car payments to the detriment of the other things we're funneling money away for.

[Xtrema]

Originally posted by Sykes
I'm not necessarily afraid to part with that much money as long as the cash flow is there. Part of the gut feeling was because we didn't feel good redirecting our cash flow to accommodate car payments to the detriment of the other things we're funneling money away for.

Since you are buying used, paying cash in full is not as bad as an idea compared to newer cars.

Most of the depreciation is already there, so you actually lose less money.

But if I'm in your shoes, can pay $21K in cash but dealer is giving you 0% for 48 months, I'll take the finance deal and keep my $21K for other investment to get at least 1% from GIC or something.

There is no reason to pay cash for cars unless it's a collectible or a total beater. 2012 GTI is neither.

[Sykes]

Originally posted by Xtrema
But if I'm in your shoes, can pay $21K in cash but dealer is giving you 0% for 48 months, I'll take the finance deal and keep my $21K for other investment to get at least 1% from GIC or something.

There is no reason to pay cash for cars unless it's a collectible or a total beater. 2012 GTI is neither.

This was helpful - I'm filing this one away :thumbsup: