Ya, as you have read financing can be complicated. I got 3500 trade in after they paid off 8K still owing. So that was an addition of 5K ontop. Then I wanted an EX and signed the papers for it then they sold it on me, so I bitched and they gave me an SX for the same price, threw in 5 Years oil changes, extend warranty + 3 yrs depreciation insurance should it get written off and 1extended warranty to
10yrs/120 K and doing it for 72 mo 185 tax in- bi/weekly.
Some good advice you have there. Confused about this quote though, you could only get an SX? Can't really upgrade beyond that unless you're trying to get the luxury package in a 2011. Did you mean they only could give you an EX?I tried to get a Koupe, they told me I could only get the SX.
Thanks for pointing that out. I edited my post to say LX. I would love the SX, or EX. The dealership only had one used Forte. They said used Fortes fly off the lot, usually the same day. The one I bought was not on the lot when I pulled up. It was traded in while I was shopping. They tried putting me in a Suzuki Forenza, I hated that car! I can't really complain about the LX though. Of all the other cars I looked at, most with higher mileage, and very few had as many options as the LX does, and I just couldn't beat the price tag. The dealer told me come back in 6 mos to a year and trade it for a Koupe. I'll probably keep it a year or 2 so I can build my credit more. At that point I want a 2011 Koupe. I really want a new one, but they depreciate so quickly it just makes more since to get a slightly used. Plus I would never own any car 10 years, or 100K miles.Some good advice you have there. Confused about this quote though, you could only get an SX? Can't really upgrade beyond that unless you're trying to get the luxury package in a 2011. Did you mean they only could give you an EX?
Just wondering where you came up with that info on trading it in after a certain period? Not questioning you...Just wondering if you get a better value by doing this...I would like to trade up in a few years...Maybe to a Hyundai Genesis or even a Optima.....So I want to know when the right time would be to do that...My credit was horrible back in October '10 when I bought my Ex...I went to dealership this March to see if I could trade up to the SX but they said they didn't notice a change in credit yet and I haven't missed a payment and we (fiance and I) finance 2 Forte's, not just 1!! Both of us are on the loan so both should be reporting on my name.I traded my 94 Vette in on a 2010 LX (A/C, Sat, BT, CC, auto, 18K miles). They wanted $15500. My credit is not good, (a 560.) The dealership gave me $5500 for my trade, and got me financing at 18% over 61mos. OUCH! My payments are $280/mo (so my $15,500 car is now $22,580). Now if you're smart, you DON'T pay it out. Make all of your payments on time, and keep it a year, 2 max. (get rid of it b4 factory warranty runs out. 60K mi if its used, 100K mi if you're the 1st owner). I already have positive equity in it, so I can sell it at any time and still have a few grand in my pocket. Run it up to 50K or so miles, and sell it, or trade it in on a Koupe. (this is what I'm doing). This way your credit gets a nice bump up, which will get you a lower interest rate next go around. Plus when you go to sell it, you get to add that it has an existing factory warranty. You will get more $$ out if it this way. My dealership also gave me a free 3/36K routine service package. (fluid exchanges, filters, tire rotation & balancing) I tried to get a Koupe, they told me I could only get the LX. Still a nice car, and way more options than my 94 Vette.
My wife and I finance 2 cars as well. It takes at least 1 year of good payment history to help your credit. That's why I recommend 2 years financing before trading them off. Another good way is to get you and her 2 secured credit cards (each). They report to the 3 credit agencies regularly. Pay the balances off EVERY month to save interest. I went from a 420 score about 1 1/2 years ago to a 560 today. 140 points in a year and a half is very good (I've financed and paid off early 4 other cars totaling over $50,000 in this same time frame). Once you get to a 600, a lot more doors open for you. I have been down this bad credit road, and am well on my way up the ladder. Keep your bills paid on time, don't get anything shut off for non payment, they end up on your credit quick. Hope that helps. I know all of this from my own personal credit battle. I'm 31, and over the last 5 years built a business that is now over 6 figures (barely) a year, and still growing. You can also pay on the debts you owe on your credit, however they will still show up as negative. (I tried paying them to raise my score.. Didn't work).Just wondering where you came up with that info on trading it in after a certain period? Not questioning you...Just wondering if you get a better value by doing this...I would like to trade up in a few years...Maybe to a Hyundai Genesis or even a Optima.....So I want to know when the right time would be to do that...My credit was horrible back in October '10 when I bought my Ex...I went to dealership this March to see if I could trade up to the SX but they said they didn't notice a change in credit yet and I haven't missed a payment and we (fiance and I) finance 2 Forte's, not just 1!! Both of us are on the loan so both should be reporting on my name.
All cars depreciate quickly. That is why I don't buy new. If you flip them in a year or two you can still get most of your $ back. Flipping them in a year or 2 is WAY better than paying 18% - 21% interest over 5 years. You want to show stable payment history, but you don't want to pay $10K in interest to do it. If you pay these cars over the full 5 - 7 year term, you will have paid $25K+ for a car that in 10 years won't be worth $2000. That is why I buy them newer, keep the mileage under warranty, and sell them. I've made a few $$ doing this as well, and you can't beat getting paid to drive a nice car, and build your credit. I have financed and flipped 4 cars over the last year and a half, making most of my $ back (Some I made a lil cash, others I lost). (I predict for the Forte, since it is a new model, and a very hot selling car that I will probably make money off this when I'm done with it). The fact is if you have very bad credit (like this gentleman) the option to buy a newer model Honda or comparable car (retians resale value, but IMO you're paying for a name) is not available. I only finance cars to build my credit. No other reason. I could pay cash if I wanted to (I'd have to save some $ for a few months) but it's about showing that I pay my bills now. It really pissed me off that I was able to take 5 years of business taxes, 5 months of bank statements proving I make over $100,000 a year, $5500 down, and my option was a Suzuki Forenza, or the Forte LX due to my still low 560 credit score. Better than the 420 a year and a half ago however. I wanted a Forte or Optima (2010+), and am happy with my base model automatic for now. In a year or 2 I'll get the K I want. I will not keep any car more than 2-3 years, that way I can get as much as possible back, and buy a newer model.I wouldn't pick up a Kia for that short term credit build. They depreciate too quickly, already used or not.