How long do you finance a new vehicle purchase?

[HiTempguy1]

Originally posted by blitz
I did 72 months on the 15k (after trade in) for my Fiesta. I'd be stupid not too at 0%.

Wait... why would you put a downpayment on a car if it was financed at 0%? This is a perfect example of where that cash could earn you more money doing anything besides going towards the purchase price...

[Team_Mclaren]

Originally posted by HiTempguy1


Wait... why would you put a downpayment on a car if it was financed at 0%? This is a perfect example of where that cash could earn you more money doing anything besides going towards the purchase price...

because by trading in a car, he gets the GST credit which is 5%? If the dealer is giving you good money on a trade, why the fuck not?

sorry ercchry, i guess that wasn't supposed to be directed against you. You are right some posts are not even relevant to this thread.

[blitz]

Originally posted by HiTempguy1


Wait... why would you put a downpayment on a car if it was financed at 0%? This is a perfect example of where that cash could earn you more money doing anything besides going towards the purchase price...

15k was what was left after trade in, I had no urge to sell my old daily driver myself.

Now that I realize it, I've actually never put a downpayment on a vehicle. It's either cash or 100% finance; if you're not first, you're last!

[HiTempguy1]

Originally posted by Team_Mclaren


because by trading in a car, he gets the GST credit which is 5%? If the dealer is giving you good money on a trade, why the fuck not?

Because dealers do not give you "good money on a trade" ever So lets go with a hypothetical that his car was $25k new, he traded in a car that he got $10k for, and financed the remaining $15k.

So that "saved him" $500 on gst, whoopdee doo. If he had sold the car privately (and if you sell a car privately for the price the dealer says they'll give you on trade, you don't have to worry about selling the car, buyers will be lining up), he could have invested the $10k @ 5% for the 5 year term and earned $2700. I guess you can remove the lost $500 gst "credit", so $2200.

Additionally, he would have got more money selling privately.

Originally posted by blitz


15k was what was left after trade in, I had no urge to sell my old daily driver myself.

I always forget how baller everyone on Beyond is "oh yea, fuck keeping a couple extra grand in my pocket, trading it in for thousands less is just so much more convenient"

And then there is the electricity contract/scheming thread that entails poring over stats to maybe save $50 per month

[flipstah]

Originally posted by RY213
I wonder how many of the people in this thread talking about cars being depreciating assets go out and drop $100's every weekend on drinking and eating out?

Thank God for asian genes. Cheap drunk ftw. Helps pay for them mods.

Sorry, bank.

[blitz]

Originally posted by HiTempguy1
I always forget how baller everyone on Beyond is "oh yea, fuck keeping a couple extra grand in my pocket, trading it in for thousands less is just so much more convenient"

That's exactly how it went. I fucking hate selling cars.

[killramos]

Yea its always a riot to spend months with a car gathering dust on kijiji and autotrader wasting your time getting a new lowball every day with a 16 year old test pilot every other just to eek out an extra 10% on a sale compared to what the dealer offered. Don't even get me started on the actual serious buyers and sending the car to every other shop in the city for "inspections".

Last time I traded in a car the dealer offered me 500 less than I thought was fair market on the private market. No brainer to sign one piece of paper and never see it or it's problems again

Meanwhile the fit I sold privately for my parents was on and off the market for 4 months with people coming and going all the time just to end up with exactly the same offer as the dealer made for trade in.

Private sales only make sense when there is a big enough gap between what you think the car is worth and what the dealer offers you is big enough to justify the waste of time. Pretty simple.

[Sugarphreak]

..

[HiTempguy1]

Man, I really should be in sales apparently. If you guys ever think of trading in your current vehicles, please contact me. I'll pay a bit over trade-in value, and that'll be that. (I know this will never happen, because I've never met someone who will give exact values for the dealer trade-in value, because they are getting hosed lol).

[blitz]

Originally posted by HiTempguy1


Because dealers do not give you "good money on a trade" ever So lets go with a hypothetical that his car was $25k new, he traded in a car that he got $10k for, and financed the remaining $15k.

So that "saved him" $500 on gst, whoopdee doo. If he had sold the car privately (and if you sell a car privately for the price the dealer says they'll give you on trade, you don't have to worry about selling the car, buyers will be lining up), he could have invested the $10k @ 5% for the 5 year term and earned $2700. I guess you can remove the lost $500 gst "credit", so $2200.

Oh, and this isn't how loans and investments work in this case.

That extra 10k doesn't sit in a bank account or GIC for 5 years and then get taken out all at one time. At 0% for 60 months, 1/60 of the amount gets taken out every month. If you could magically find a 5% annual return GIC, you'd have to stagger that 10k into multiple batches so it would still be available for ongoing payments.

[blitz]

I worked out the math, your $2700 in "profit" is actually $1350 at 5% annual interest. At a more realistic 2% its $520.

That $500 in GST savings doesn't look so bad now, does it

[killramos]

Originally posted by HiTempguy1
Man, I really should be in sales apparently. If you guys ever think of trading in your current vehicles, please contact me. I'll pay a bit over trade-in value, and that'll be that. (I know this will never happen, because I've never met someone who will give exact values for the dealer trade-in value, because they are getting hosed lol).

I'll admit what I got on my last trade in:

Dealer gave me 13k trade in for my stripper 07 GTI with about 110k on the clock

5k overall depreciation for me after buying it CPO for 18k all in from a dealer 3 years previously and putting 40,000km on the clock.

No way I was getting much more than 500 bucks to 1k more than that private sale. Again , 5 minutes of paperwork and a signature to never see it again.

A 5 second kijiji search ( admittedly about 2 years later) seems to support my claim that it was a good deal

http://www.kijiji.ca/b-cars-trucks/c...74l1700199a138

Bloody thing had like 5-6k of warranty repairs while i owned it so i was glad to be rid of it. Fun car, but not very reliable and expensive to fix.

Perhaps I will take your offer next time around and let you hold my time bombs for a small cash uptick if you are going to beat the dealers offer by 500 bucks for an all cash 5 minute business deal? Oh yea and i get to keep driving the car until my new one is ready for pickup.

Things just aren't black and white and you need to take every situation at face value. Sometimes it makes sense to buy used, sometime new. Sometimes it makes sense to finance, sometimes it doesn't. Sometimes it makes sense to trade in, some times it doesn't.

I didn't participate in the poll because i don't agree with any of the options, because it 100% depends on a million other factors rather than just slotting myself into a "36month" box or whatever.

[Aleks]

Originally posted by killramos


I'll admit what I got on my last trade in:

Dealer gave me 13k trade in for my stripper 07 GTI with about 110k on the clock

5k overall depreciation for me after buying it CPO for 18k all in from a dealer 3 years previously and putting 40,000km on the clock.

No way I was getting much more than 500 bucks to 1k more than that private sale. Again , 5 minutes of paperwork and a signature to never see it again.

A 5 second kijiji search ( admittedly about 2 years later) seems to support my claim that it was a good deal

http://www.kijiji.ca/b-cars-trucks/c...74l1700199a138

Bloody thing had like 5-6k of warranty repairs while i owned it so i was glad to be rid of it. Fun car, but not very reliable and expensive to fix.

Perhaps I will take your offer next time around and let you hold my time bombs for a small cash uptick if you are going to beat the dealers offer by 500 bucks for an all cash 5 minute business deal? Oh yea and i get to keep driving the car until my new one is ready for pickup.

Things just aren't black and white and you need to take every situation at face value. Sometimes it makes sense to buy used, sometime new. Sometimes it makes sense to finance, sometimes it doesn't. Sometimes it makes sense to trade in, some times it doesn't.

I didn't participate in the poll because i don't agree with any of the options, because it 100% depends on a million other factors rather than just slotting myself into a "36month" box or whatever.

We have a few guys that work at dealerships there, so maybe they can chime in, but would a dealer/wholesaler ever take a trade in and only plan to make 500-1000 on it? I was under the impression they need at least a few thousand to make it worth while.

[Strider]

Originally posted by mazdavirgin
That's the annual max(income indexed) for 2015 for RRSP and TFSA... Next year it will be even higher. I'm at a loss as to how people are running out of contribution space... I guess everyone is making 140k per person or something.

You're also forgetting that the RRSP contribution limit is 18% of earned income up to a maximum of the #s you posted.

So a very simple calc for a basic Beyond 6 figure baller who's barely scraping by at exactly $100,000:

18% max contribution = $18k into RRSP, corresponding tax refund is $6,184 of which you roll $5,500 into TFSA and spend the remaining $684 on lunch for the week.

[ercchry]

Ah trade ins.... Let's see... First trade in I couldn't in good conscience sell it to any individual... It was a lemon from day one... Used a quart of oil for every tank of gas... Being a jeep instead of fixing it they put it on a "oil consumption test" for over 6 months, couldn't drive it out of town since every ounce of oil had to be documented at the same dealer... Traded it in for 20% less than what I paid for it new after two years of ownership... It ended up going to auction and being offered at the dealer I bought it from for $4k or so less than I got for it with no warranty.... My gst savings on my next car were much greater than $500 too

Next car... Tried selling it for a solid 8 months off and on, not a single bite... Traded it in for what I was willing to take for it privately and was a great bargaining chip for the next vehicle... Which I paid less for than my buddy who bought the same truck a year later with less options did

[Strider]

Question for all who got great value on their trade-ins - Did you manage to negotiate a price you were happy with on the new car before any mention of having a trade? or did you disclose the trade before getting to a bottom line on the new car?

[Team_Mclaren]

Originally posted by HiTempguy1


Because dealers do not give you "good money on a trade" ever So lets go with a hypothetical that his car was $25k new, he traded in a car that he got $10k for, and financed the remaining $15k.


Additionally, he would have got more money selling privately.

:

You must suck at negotiating your trade then. Its not hard to put a dealer together to pay fair value on a trade.

[HiTempguy1]

Originally posted by killramos


Things just aren't black and white and you need to take every situation at face value. Sometimes it makes sense to buy used, sometime new. Sometimes it makes sense to finance, sometimes it doesn't. Sometimes it makes sense to trade in, some times it doesn't.

I didn't participate in the poll because i don't agree with any of the options, because it 100% depends on a million other factors rather than just slotting myself into a "36month" box or whatever.

I understand that, but what Blitz did makes zero sense. I'm not talking about other situations (the point of you are losing money if trading in is valid though, there is no getting around it). Putting your car up on autotrader and calling it a day isn't "selling" a car lol.

I would imagine a trend that could be seen with a lot of beyonders are "oddball" cars that are niche. Your GTI being a perfect example, they sold 15k Golfs in 2007, versus 1500 GTI's in Canada. Arguably, you are selling car with a 10th of the possible purchasers, so you will have to work that much harder to sell it.

Anyways, the point still stands that you guys lose typically thousands trading in. You can't argue around that, dealers aren't going to lose money on a trade-in, that is an awful business model

[rx7_turbo2]

Originally posted by HiTempguy1
Because dealers do not give you "good money on a trade" ever

Not true. Not even remotely true.

Originally posted by killramos
Things just aren't black and white and you need to take every situation at face value. Sometimes it makes sense to buy used, sometime new. Sometimes it makes sense to finance, sometimes it doesn't. Sometimes it makes sense to trade in, some times it doesn't.

This

[flipstah]

Whatever 'loss' in trading it in is offset by not having to deal with fuckbois lowballing you to kingdom come.

Just depends on how you value your time and effort.

Every action has a reaction.