I am a first time buyer, should I or shouldn't I?

Question

I am 21 years old and with little credit

I went down to the Ford lot and found a 2005 Ford Focus (26,000)for $10,900. When I was talking about the payments, I asked them what is the total price of the car (with fianancing) and he refused to give me it, he would try to tell me how much I am saving from the actual car payment (not interest).

Finally, when I got to the signing of payment and contract, It read (on the computer screen) that I would be paying around 21,000 (the car and interest) and that my interest rate was 19%. I told them that I would have to talk with my dad, and I needed a printout of all the financal information, they said they couldnt print anything out. They just printed the amount of the car and how much I was saving from the Kelly Blue Book value.

When I talk with my friends, they told me this normal, however I found this rediculous amount to pay for a car. Can someone please tell me: should I go back or not.

26,000 miles

Answer 1

Having poor credit or no credit sorry to say adds up to the same high interest...at 19% you must buy the least expensive car till such time you get a credit rating, I like your choice of vehicle but the sad part is at 19% after 2 or 3 years paying on a 60 month finance you will be up-side down huge...go to this web page http://www.usedcartips.org/CREDI.html and you will find out how having poor credit works...

Shop your bank or credit union for a loan and shop with that amount, if you cant get a good rate then how about a family member co-sign ??? to get a lower rate...SUMMARY...if you cant get under 12% then please buy a very low end car

Answer 2

OMG, they are trying to take advantage of you because you are young. Used car dealers can be some of the scummiest types on earth. See if you can buy one from a private party or search online in your area. That is INSANE! I bought my 2002 Ford Ranger for 14,000, the interest rate was only 3 percent! Find out yourself thru KBB.com (kelly blue book) to see how much it's worth. AND do NOT be scared to walk out on those used car dealers. They are used to it. Say, This is how much I can spend, what do you have. If they don't give you a straight answer, leave. I hate buying from dealers. You can probably get a better deal from a new car dealer. Try to get last years model. AND, be sure to make sure you have a rust proofing warranty if you buy new. The 'rust proofing' they do in the underbody just traps the moisture in and it rusts in the undercarriage. Almost all cars have that happening, except Audis.

DO NOT GO BACK to that dealer, they are really crooked.

PS: ALSO be real careful if they hook you up with a payment plan, they sometimes try to sneak in a higher number. When you get the amount of $ for the monthly payment, (bring a calculator) make sure to add up the TOTAL you will pay, because sometimes it's totally WRONG with what they told you you were paying. Try to bring an older person with you who's dealt with slick used car sales people.

PPS: Also, if you are a first time buyer, after they factor in your payment, tell them you are so they have to lower the amount you'll pay. You can get a discount on your car if you are a first time buyer, college grad, etc. Make sure to check the sticker price so you aren't paying a lot for options you don't want, too.

Answer 3

ok first if they are showing you payments then they should have pulled your credit and despite what some of the people on here are saying they will already know you are a fist time buyer. When buying a car for the first time you are buying way more than a car you are buying your credit. buy the way those scummy car salesman are heavily regulated by laws both state and federal and in many cases municipal codes as well, the banks also do not allow them to charge more than what the car is worth. then there is the fact that you are paying more than just price and interest, you are paying finance charges that are imposed by the bank. also that 21000 price tag is what you will pay if you only make your exact payment every month if you pay more each month or early that price goes down. also the car lot does not decide what your interest rate is the bank does. unless you go to a consignment lot or a buy here pay here, then they dont report to your credit and financing the car has no benefits for you at all. also kelley blue book is a pipe dream no bank no car dealer no one uses kelley, it is a private organization, while NADA stand for the National Auto Dealers Association. that is what banks and car dealers use.

this is for the guy who said that car salesmen are some of the scummiest people on the planet, they are everywhere at your church, your grocery store wherever you hang out, they are people who have a job to do and are amazingly honest but do want to get payed for working as well, most are actually there to help you out but you are too close minded and stupid to notice that. 19% is really not that much for a first time buyer, but obviously you know everything about how your credit and car salesmen work.

Answer 4

whoever said car salesmen are scum is an idiot. ca
if you are a first time buyer ther are only a few ways to get credit by yourself. you can either pay a higher interest rate, where the bank has to take a risk on lending you money since you do not have any track record for whether or not your going to pay. you can get a co-signer who has a good track record that can get your a lower rate because that person is guaranteeing the loan. or you can put a large down payment down. some primary lenders will loan you money at lower rates because they are now in a "safer" position. so if you do default on the loan (dont pay it back) then they can repo the vehicle and get their money back. personal banks/credit unions do the same thing. most of them will also look at your bank accounts to see if you have the money to pay it back. local banks and credit unions have the ability to "freeze" your accounts or clean them out entirely if you start to default on the loan. and if you have several accounts, loans, mortgates they can also freeze those accounts or repo all of them to collect what is owed to you w/ no legal recourse on your part. which is why sometimes its a better idea to spread your money out or finance at a dealership.
so...buck it up. you might have a to pay a higher rate if you want a vehicle. dont look at the total pay out. look at it as a way to get started for next time. so you can get a better car w/ a lower rate.

Answer 5

That is a ridiculous amount of money to pay for a Ford Focus. Why don't you look in Auto Trader or on E-bay. Surprisingly the last car my husband and I purchased was on E-bay. We bought it through a wholesale dealer and drove to pick it up and pay for it. A lot of dealerships will post cars usually for a cheaper amount. My husband and I applied for loans using Lending Tree so we had pre-approved financing. They sent us the check for amount and we saved a lot of money. I think you should check your other options because you would be at a loss with this deal. Good luck & I hope this helps!

Answer 6

If you have poor or no credit, you are going to pay a higher than normal interest rate. Go to your own bank and see if you can do better. You might be pleasantly surprised by what they can do..

His computer doesn't print out full disclosure of the finance contract? That's B.S. and not someone I would do business with.

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Answer 7

That's WAY too much interest. Give them your number and tell them to call you when they're serious about selling. Then walk away - most times, they'll call you - usually that evening or the next day. If the deal they offer you then isn't substantially better, forget about them. And talk it over with your dad - maybe you can get the loan at a better rate if he guarantees it.

Answer 8

shop a few credit unions before going with the dealers financing.

Answer 9

19% is way too high! Shop around and/or see if your rate would be lower with a cosigner (if that's an option).

Answer 10

walk away