aftershock141

iTrader: (9)

Oh, alright then.

aftershock141

iTrader: (9)

They're trying to collect. That ends up being $26,340.

rogue

iTrader: (34)

My mistake, I missed it.

Stellar24

iTrader: (6)

I bought a fully loaded GSR in October for $1000 under invoice. The invoice on the car you listed is roughly $33,800. With it being 2 months later (and better negotiating skills than me) you should be able to get the car for about $2000 under, making it around $31,800. I used South Coast Mitsubishi pricing to get them willing to negotiate. Remember, it is a buyers market, they are desperate to sell cars right now.

Make sure you negotiate the vehicle price first, then the TT&L fees, then financing. Dont ever discuss monthly payments when negotiating the final price (this is how they will twist things to get more money out of you).

For financing, since you are getting 0%, put down as little amount of money as they will let you. I know your monthly payments will go up but to account for that, set up a high yield savings account (I use ING Direct) and put your initial downpayment in that account. You can then set it up to automatically deposit $XXX amount of money into your checking account every time you have to pay your bill to cover that extra you cant afford monthly. Dont pass up free money! You will earn interest on that money and do not have to pay any extra to Mitsu to do so.

If you do borrow the whole amount (or close to it) then consider getting GAP insurance. I got mine for $500 (which comes down to about $8 a month and I did have to negotiate that price) and in the event that my car is totaled, I would have the entire loan paid off without any money from my pocket (and this is nice since i will owe more that it is worth due to the large depreciation once you drive a new car off the lot).

Sorry for the length but I hope this helps.

smabe123

+1 for gap, its better to pay that extra few a month than to regret it later

fhaze

Thanks all for the excellent advice...regarding the down payment that is coming directly from the interest collected from a high yield account I have had for a while.
Principal isn't being touched :P

I think if I can get them to stick with 34,333 OTD that would be fantastic. In MA Sales tax is 5% =1700 or so, plus reg fees and plates. SO let's say 2k in BS charges, that would put the car at 32,333 +Tax Title Tag. For an SSS with Int Pkg and Locks.

Put down 10k, finance 24,333 @0 for 60 is $405 a month.

Sounds straightforward doesn't it? Is my logic flawed somehow?

pltek

iTrader: (33)

whos the dealer?
whats the msrp on car?

fhaze

I think it was $36,399

A mitsu dealer near boston ma.

beetle_orange

iTrader: (58)

just like the advice i read earlier, i wouldnt put any money down.

since you are getting 0% put the 10k in a CD or something and let it earn interest. once you give that money to the dealership thats it that money wont earn you anything. sure your monthly payments will go up but the interest on that 10k will cover some of it and the best part of it all is when everything is paid up you still have your $10k

ice1874193

+1 why put money down on a 0% loan? just to feel better about your monthly payment?

beetle_orange

iTrader: (58)

bottomline if you are getting 0% i see no reason why you need to put a downpayment.

this is the exact same conversation i had with aftershock and i THINK i knocked some sense into him.

in the state our economy is into right now CASH is KING!

fhaze

Yup. If not it adds $166 to the monthly.

If there is a place where I can earn $166 a month on $10k I'll sign right up.

34,333 / 60 is $572.21..dats a big nut for a car I feel.

@ $400 is comfortable for me.

However..if my bonus is big and my raise goes through all bets are off.

I'll stick it all into a high yield account and pull my car payments from that acct. (or a good portion).

beetle_orange

iTrader: (58)

sure a $10k investment might not make $166 a month but what you are not seeing is the potential income that $10k can generate for you. at the end of the 6 year term the car is still going to cost $34333 but with the income you derived from that $10k investment rather than putting it as a downpayment then you could pretty much argue that the car only cost you say $32k or $30k obvioulsy depending on the ROI of that $10k investment.

fhaze

Yes.. I am beginning to see the benefits of that. I may be a little slow sometimes.

Thanks for the advice@

beetle_orange

iTrader: (58)

glad to be of help and i really hope people who can get the 0% would not put a downpayment.

there is just way too many benefits to not putting a downpayment.

another scenario i could see is with this troubled economy only GOD knows what will happen next. God forbid you lose your job or something bad in the next 5 years and have to give up the car, you not only lose your car but also that $10k downpayment. IF you dont give that downpayment then you only lose the car but still have $10k to get you by.

also at the end of 5 years? you still have your $10k invested and still earning you moolah.