Did I get a good deal?!?

Question

Ok so yesterday I got a call from a local car dealer and they told me that the car i had been waiting for was in.So long story short I bought a 2005 Ford Focus with 35000 miles on it,power everything(except seats),cd,air,4dr.They took a trade in on my car and gave 6200 for it.Which is way more than they should have as its a 95 ford escort with a ton of miles on it and some problems.My payment a month is 325 but i can refinace after a few months of paying it.I dont have alot of credit and I didnt need anyone to co sign.So did I get a good deal?My parents will be happy for me right?Im afaird to tell them about it even though Im almost 30 and living on my own with two jobs.Thanks for your help.

After the trade in it was around 11000.My intreast rate is alittle high but im planning on refinacing after a few months of payments.kelly blue book is right now with what i paid as I did check that out before i signed and I can return the car up to 30 days from when I got it.

Answer 1

Why are you worried about what your parents think? For goodness sakes, you are almost 30yo. Did you get a good deal? Who knows without see the car. Are you paying too much? Probably! But you bought the car, now drive, care and pay for it. GROW UP! Quit worrying about what your parents, or for that matter the rest of the world thinks.

Answer 2

So your saying the sales price of the car was around 17k. With the "over trade" they gave you, you are financing 11k. It's the same thing as paying 11k or so with no trade, because a 95 escort with a heavy clock is worth very little. What you are to do now is wait 6-9 months, paying every payment you owe on time. DO NOT miss a payment or be late. At that point apply to refinance your vehicle at a credit union.

And by the way--It's not so bad of a deal--For someone in your situation it sounds like an opportunity to establish good credit.

Answer 3

It's hard to know if this is a good deal without having the cold hard facts. How long did you finance it (ie, how many total monthly payments must you make to pay it off, and what is the APR)? What are the price details for the used Focus you bought--how much minus the 6200? So after the 6200 trade, the total price for the car, tax and all was?

The general rule with trades is if you trade high, you buy high; trade low buy low. In other words, the dealer can put more markup on the car you're buying, and sell you on the idea by giving you more on your trade to offset the price difference.

Answer 4

Check Kbb.com and check it out. Car dealers are always jerking people for their money so they were probably high-fiving each other when you left. And I'm sure they didn't really give you $6200 for your trade-in...that's just what they told you so you would think the Focus was so much cheaper. The Kelly Blue Book highest (that means the car is in absolute excellent shape) price (price to start negotiating) is $8900. You didn't say how much you paid for the vehicle so who knows. I'm sure you paid too much.

Also how much is your interest rate? Please tell us how much you paid for the car. Maybe you should have asked this question BEFORE you signed on the dotted line. It doesn't matter what your parents think because the car can't be returned.

I hope this helps!!

Answer 5

You didn't give the sell price but I think you did ok trading the Escort. $325 is not a bad payment depending on the length of contract. 35000 miles on a 2 year old car is a bit high (avg 12000 per year) but it should have some portion of a warranty on it still. You did ok. Remember, you don't always have to please your parents. If you're 30-ish, you need to live to make yourself happy before anyone else.

Answer 6

You didnt say how long the term was on the loan. I assume the term is 60 in which case you paid $19500 including tax and finance charges. Auto trader shows 05 Focus's going for around $16,000 plus tax, if at 15% would be $18400 and if financed over 5 years would total around $381 assuming 9%. interest rate. Do the math. If the rate was 7% then you paid around $17750 tax & finance charges included. which would be around the average resale price. However if they put you in a balloon note the answer could be much different. If they over allowed for your trade then they would have to overcharge for the sale price to make up the difference. Look at the prices in autotrader and then compare.

Answer 7

how much did you pay for the focus? i am willing to bet that they showed you 6200 for you escort on paper but tacked on some money on the focus and lost some of there profit. also it is easier to get someone financed on a late model car with higher miles then it should because the dealership can buy the car cheaper then get the bank to finance the whole retail amount,therefor showing that you put down more then you did. it is all a numbers game to get you financed. $325 isn't all too bad for someone with little credit

Answer 8

35000 miles is a lot of miles for a two year old car. Call your dealer back and ask if it is still under warranty. Meanwhile, you might want to get the transmission checked because is sounds like it has ran a lot in the past two years.

Answer 9

Personally, I don't think paying any payment on a car is a good deal. You had cash (if you sold your car) to buy a decent reliable car and could have saved yourself $3900 for the year + all the interest you would have earned. ....just for all the bells and whistles on a brand new car. ...but hey, if you want to continue working two jobs til you're 70, keep spending like that. It really is your choice of lifestyle to maintain. But, now that you have it, don't feel guilty about it and enjoy it.

Answer 10

I always check the Kelly Blue Book site before buying a car.