$18,000 for a V that has an invoice price of $19,299 & MSRP of $20,060? There is either something wrong with the numbers cited in your post or the dealer's offer is just bait and switch.

 

u missed the 6k he is putting down that would make it 24

 

the best thing to do inmy opinion is to have a reserve set up. i was the same when i purchased my first home, u want to have at the minumum 3 or 4 months of living expense money put in a seperate account not be touched for any reason. when i say living expenses i mean everything figure out ur rent or mortgage, car payment insurance grocery money clothing money any thing and everything u need in a month. take that amount for example its 1500.00 u should have 3 months of that put away just incase u do lose ur job or have an emergency of some sort. im sure u will be just fine but i rather be safe than sorry. good luck

 

While I sympathize with your situation, I can't say it is a good idea to buy a new car, especially in your situation. It might be a better idea to buy a used Civic/Corolla which are bland, boring, slow, but has decent mileage and very very low upkeep costs. My mum has a 99' Corolla which has almost 211,xxx kms that she bought brand new, and to this day it still drives and costs $40 in gas every 2 weeks. Besides the standard oil change, brakes, it has never been in the shop for more than a day, of which parts were easy to source and at very low prices.

I understand your attraction to the Veloster, but right now, I can't say this is a good idea. If anything, I would recommend speaking to a third party, go to your local bank, and speak to a consultant and see if you can have them look over your situation, especially financially. It might cost some money, but it'll give you an unbiased view on your own situation. A vehicle is often a persons second largest monetary investment in life, so it is a very important one to make sure you've researched on all your areas.


Regardless of the outcome of your decision, I will respect it because in the end, its your life. You play the cards, you decide which one to flip over. Best of luck to you, I'm from a similar situation myself.

 

Thanks a lot guys for the responses. I appreciate the different views, tips, and precautions this forum has to offer. I'm going to keep saving every cent I can until I feel comfortable enough to make such a purchase.

Another question if you don't mind. What exactly does a downpayment do? Does it automatically take off from the deal price? Say its 21,000, with a 6,000, its not knocked to 15,000? And then you finance that towards that number? Any buying tips or tricks will be hugely appreciated.

thanks again everyone,
Evan

 

What's your mom going to drive after you sell the van?

 

You strike a deal with the dealer for a total price of the car (as if you were paying cash) that is satisfactory to both you & dealer. TIP: you should not be discussing any trade-in at this time...always, repeat always, negotiate the price of the car you're purchasing prior to any discussion of a trade-in, making absolutely certain that you fully understand the car's final and complete price and including all other add-ons (options, taxes, title, admin. costs, etc.etc.) that contribute to the final & total cost of the purchase. Say, $21,000.

Then, the dealer will appraise your trade-in. If his offer is satisfactory and you accept it, that number of $$ is subtracted from the above negotiated price. Say, $6,000 for your trade-in.

You have now arrived at a proposed final price, assuming a balance due, that will be financed, say $15,000 ($21,000 -$6,000=$15,000).

The next step is the signing of the sales contract and financing contract. However, before you sign anything, I would urgently recommend that you seek the counsel of someone you trust who is knowledgable of this process.

 

Being as young as you are the best advice is to buy something you love used for the lowest amount possible.
Avoid setting yourself up or a major trap.

That said, being young sound advice is rarely heeded. If you have to have it, write this down, and get all of this information and post back, we can help you further if you need it:

1. Get the actual price they are selling the car for in writing. (x amout for x months does not count this is used to fudge #s.)
2. Get the amount they will give you for your trade in writing.

Before signing anything:
3. Get the total amount financed after down payment in writing with documented interest rate.

If they can't provide items 1 and 2 right away then they are not being straight with you.

 

Looking back on when I was 21 (rolling my eyes at memories of naivete'), I often contemplate the then-hidden details of how ruthlessly car salespersons/dealers were taking advantage of my ignorance about purchasing a car. However, to rationalize a bit, there was no such thing as MSRP, Monroney stickers, public knowledge of invoice prices, holdbacks, etc. In those days, about the only facts accompanying the deal that were known by the buyer were the finance terms.

Today, with all the purchasing information available online, publications, e.g. Car Buying for Dummies, Google, etc., there is little reason to be less than well informed about the pricing/financing details of purchasing a car. Compared to a few decades ago, today's buyers are in an enviable position, yet some don't seem to care what they pay or remain uninformed about the process.