**** that dude... you think he is paying alot, there is a dealer over here in cali who is selling a white evo MR for 42k yes it has less than 100 miles but c'mon its a 2 year old car.

 

Horrible deal. If you want a IX, why don't you sell your car for 21k. That gives you 7k$ in the bank. You could probably find a new IX for $31k. Take that 7k$ you made earlier, put it as a a down payment and owe only $24k. Doesn't that make more sense?

This is all hypothetical of course. The numbers may be a little different.

 

He will finance 29k total. They are trying to get 38k for the IX thats definately not a good deal

8k equity + 1k out of pocket = 29k keep the VIII

 

Sabastian does know his stuff, but I have to disagree ...

I got my IX MR (SE) last year at this time for $34,700. I traded in my VW and got $7000 for it. My trade was my down payment and I was able to get 6.75% for 72 months from my credit union. With TTF, it was right at $37k. (EDIT for clarity ... I financed ~$30k, not $37k)

What everyone is saying is correct ... they want you to finance $29k. This means the car will actually cost you $29k + $8k (from the trade) + $1k (DP) = $38,000. I honestly think that's about $2.5k too much at least given the age of the car and the fact that the X is out in a few months.

Negotiate man. The general rule of thumb is that the first offer the dealer gives is never the best. It would be silly for them to offer the absolute lowest price if they could squeeze another $2k or $3k out of the car.

I also disagree on negotiating the monthly payment. Always negotiate the final price. They could always shift the APR and get you a lower rate, especially if you are at 56 months now. Keep the 56 months and negotiate the $29k down and do not pay the $1k down if you don't want to ... that's what your trade is for. Now, DPs are good from a financing standpoint, but they aren't required with a trade.

Good luck on the purchase.

 

Okay, this is still a little confusing it seems ... How's this for simplified ...

Offer $30k for the car. That would be $30k minus the $8k in equity from the trade, meaning $22k. Add the fees and tax, you'll be around $25,000 financed (estimate). That is a fair deal.

The $29k OTD is basically MSRP. $35k - $8k - $1k * 1.08 (tax) = $28,080. Add the other fees and that's your $29k.

 

keep the VIII and be happy with it

 

To confirm....you'll owe 29K after all is said and done?

If so don't do it. They are raping you on the cost of the IX

 

Did I say I was a car salesman? No, but I am arround it everyday. I take offense to your remark against me when you know nothing about me nor have had any dealings with me. You are rude. I have shown on here and through my friends that I am trustworthy and to have integrity. You have no basis to make fictional claims and I demand that you publicly apologize in this thread and in PM to me.

 

I'm with this guy ^^^ screw that. Horrible deal, they are trying to back door ya brotha

 

And that is why I recomended him to get the 450 payment. he would only be financing the 25200 (total amount financed)

Working with the numbers and they way everyone here is calculating, 1k down payment + 8k equity + 25200= 34200 ( but of that total price, you HAVE to subtract the tax, tag, registration, document fee and the % rate ammount to get the REAL price of the car)

Tax on 34200= 2462.40 34200- 2462.40= 31737.60

tag, registration, and document fees vary greatly from state to state. usually tags are 100 and registration/document fees are in the 300-500 range or so.

So if we were to figure on the high side of the fees that is 600 (estimated)
31737.60-600= 31134.60

Now you have to subtract the % rate. (you cant add that to the price of the car because it is a fee that YOU are paying to borrow the money)
25200 (amount financed) * .072= 1814.4
25200-1814.4= 23385.60

23385.60+ 1000 downpayment+ 8000 equity= 32385.60 Every thing else is fees that YOU have to pay to borrow and/or buy a car. (this also is based off of you not having anything else added to the price like GAP insurance, car insurance assit, rebates)

just some equations I have used:
56 payments @ $500= $28000 (not 29000)
56 payments @ $450= $25200 (a $2800 difference)

Like I have been saying, If you really want the car tell them that you will only take it if you get a 450 payment, keep the same rate, without any additional out of pocket expenses. At the end of all of this, I just realized that you have not said anything about the owner loyalty Mitsubishi gives you for trading in a Mitsubishi, nor any rebates. You need to ask about those before you sign anything.

 

I don't think the $29,000 includes interest. Aren't most auto loans simple interest, meaning that if he paid it off the next day he would owe $29k + 1 day interest. This means that the dealer can't include interest in to that quote because it's not an absolute value.

I'm completely with you down to the $31,134.60. I guess you are including the interest based on the monthly payment? I can see how that factors in.

 

I just found out that there are no rebates on 06 models and that he get $500 discount for owning/trading in and Mitsubishi. Which brings the actual cost of the Evo to 31885.60. Based on a 450 payment

Like I had said, the interest charged to you for borrowing money from the bank (1814.4), the tax on the car (2462.40), the document/tag/title fees (aproximated 600) Can not be added or included in what the "cost" of the car is. Those are things that you pay in addition to the price of the car. (4876.80)

 

You are correct on the interest. but wrong in the amount. He would either be financing 28k or 25200, depending on if he can get them down to a 450 payment.

The dealership isnt quoting a price, just a payment of 500. Final price doesnt matter if all he wants is a payment. If wanted longer term, he could get a much cheaper payment.

 

Which is why I said to negotiate price and not payment.

The problem is that if he's financing $28k, then your payment formula is incorrect. 56 payments @ 500 does = $28k, but interest is included in the payment. Therefore, that $28k would have to include interest for the formula to work. Hence my confusion.

IF $28k includes interest as your formula assumes, then the cost of the car would be ~$23,750 (Interest is amortized and not a one-time calculation). Payments would be right at $500. If the principal was $28,000 payments would be $590.

Something is missing here ...

 

Just as a referance on the good %rate. I am a share holder in my bank, I traded a paid off car, financed only 12k against my Evo, took a 60 month term and got a 242 payment @ 7.35% rate.