Dealer is offering me $30k for 2006 w/Navi (~$500 of MSRP), with a $25k for 2004 non-Navi trade in... However, the finance rate is awfully high at about 5%.

It sounds a bit too good to be true for me, any thoughts/experiences???

 

25K for a NON-navi trade in?? Dude, take that and RUN...How many miles on the car? I think its a little high on the price, but if that 30K is out the door, you could do worse I guess.

 

Get it down on paper!!, you'd actually be making $$$$$ on that deal.

 

I dunno if the deal is as awesome as it sounds. He is charging you almost $2,000 more on the '06 than the going price (a few members got the '06 at $500-$1000 over invoice). The $25k for the '04 non-navi is a really good deal but if u take the $2,000 he's charging you extra, it's more like $23k for the trade-in. Still a really good deal, but just not a SUPER GOOD deal. (I will take the deal too tho.)

 

That's exactly how I look at it too, but I thought dealers usually low ball u on the trade in....

 

Uh..... That sounds great to me! An 06 in 05 for $30k and he is going to give you $25K for your 04 trade? That sounds like a killer deal to me! I would have driven it home already. If you wait another month the 04 will officialy be 2 full years old. Geter dunn! Now! $27,800 for an 05 was a great deal! With all the improvements on the 06 I think its well worth the extra bucks!

 

Sounds good....but facotr in the finance rate and you'll be surprised how bad a deal it is.

 

they're giving you $25k for a '04 non-navi??! which dealer is this!??!

 

is 5% high for finance rate? I thought 5% is pretty good. Most people are in the 6% to 10% range....

 

Well, actually they said 5% was the lowest.... I'm sure they'll screw me with some higher rate, but then they also said I can finance elsewhere and they'll give me the same price....

 

it's an amazing deal. are people forgetting to factor in the amount of money he's saving on taxes?! come on. even if you say he's overpaying 2k on the car (which a lot of dealers arent budging much on the price, some of us got lucky) he's saving that pretty much in tax.

Finance through a credit union...but it's not gonna be much better. I have excellent credit and i'm getting it at 4.5% for 60 months. don't pay more than 5% though, and if he's not sure you'll get that rate, don't do a check through him first, or you'll have that blemish on your credit record when you go to a bank that most likely will give you the rate. dealers are stupid in that they really don't offer competitive rates. they could make a fortune on interest if they did, i guess they don't want to be in the collections business all that much though.

 

me too!

 

This is not true. Financing through Honda Motor Co. for an Acura has never been low. They're usually 6-10% like someone said, even on good credit. I had excellent credit when I got my '05 and the dealer wouldn't go below 6% because they had no "special" financing rates at the time. My credit union ended up giving me 4.9% for 60 months. Remember, it's an Acura, not a Honda. Interest rates are usually higher for luxury brands. That is, if the luxury brand is doing well of course. Sorry Cadillac/Lincoln, this doesn't apply to you.

 

I think your interest rate depends on where you are and who you are getting it through. I also think the Honda finance rates depend on what dealer you are dealing with. My girl bout a certified TL this summer and was able to get the Honda rate of 2.9% on her financing. I think they have the ability to give it to you, just depends on whether or not they want to, or maybe if you even inquire about it.

 

Yup. Walk into a Toronto Acura ato get an 06 and you get the 7.9% rate. Want an 05? You get a 2.9% rate. Huge difference.

 

Just FYI, when I walked in yesterday to pick up my 06 (preapproved through credit union at 5.2% for 60), Acura said Honda just came out with special financing (4.49% for 60 months) so I jumped at that deal. Of course, it might of been "special" since I already had financing, but you might want to inquire. They mentioned it just came down in the past couple of days.

Paul

 

They were advertising a financing special of 4.9% through the end of November here, dunno if they'll have something in December.

 

This is a classic dealer trick... what is hard to understand about this?

The dealer can reasonably sell the car for $500-$1000 over invoice. By barely budging off MSRP, they can take that difference and add it to the trade so it sounds like you're getting a really good trade-in.

For example:

I had a 99 Accord that I traded in on my used 2002 TL back in March. The TL had 33k miles and the asking price was $20,000. Every other dealer I went to told me they'd give me no more than $4500 for my 99 Accord, which was appaling considering it was fully loaded and had 92k miles. Anyway, this particular dealer did things differently. When they came out with a trade-in offer for me, it was $8500! I was wowed, how could it be that much higher than everywhere else?

Here's how: They'd given the TL's former owner $16.5k for the TL on trade and were willing to part with it for $17k since it had been sitting on the lot for a while (Chevy dealer). If I had walked in with cash, I could have bought the TL for $17k without much hassle. However, when they gave me the worksheet with the numbers, the TL's price was $20,000 and the trade value on my Accord was $8500. I asked if they could sell the TL for $17k like they said originally before they knew I had a trade and the answer was "No."

So actually, all they did was give me $5,500 for my Accord. They took the $3,000 that they were originally coming off of the asking price of the TL and added to to the trade value making $8,500 and thus the TL's asking price was firm.

It's a trick, plain and simple.

Tell the dealer you're talking about to give you $25,000 on trade AND sell you the TSX for $1000 over invoice. If they do that, you got a good deal. If they say "No" it's the very trick I just described.

 

^
That is not the case for Supraken.

Supra, what is holding you back on this deal?

You probably paid 27-28k OTD for the 2004, right?

 

Sometimes theres specials on the financing, such for certified used. The rate when i last checked (from AHFC) was 5.38 with good credit less a .25 reduction if your down payment exceeds 10 percent of the purchase price.

Just as an aside, when i bought my TSX in September, I was quoted one rate, which wasnt too bad, so i took it. The dealer handed me a financing agreement with a .50% higher rate and then he denied ever quoting me the lower one.

Thats when i pulled out the printouts of all the emails we had sent back and forth to each other. That took care of things quickly.

 

I'd probably take the deal but finance somewhere else. Call your bank and check out what the rates are for a new car. I'll bet you'll get a much better rate from someone else. I doubt the terms of the offer would change...

 

That I understand, and that's why I'm actually taking it as a deal as follows:
$2000 off MSRP (~$28,500 which is ~$700? over invoice)
$23k trade for nonNavi 2004 TSX, which is a very good trade at that price.

I went to the local credit union and the absolute lowest they can get is 4.95% with excellent credit. Not sure why interest rates are so high lately... Since I owe a balance on the trade, I'll end up paying about $1000 more in interest (my current rate is 3.74% for 60 mos), which means I'm getting a new '06 with NAVI for $6000 + trade total (roughly). It seems like it's a good deal, but I guess I'm not sure if it's worth it...

 

There ya go..good work. Now factor in that you don't pay tax on the $23K trade in, just tax on the difference. (least in ontario)

Do you need to pay freight, tires tax, admin fee etc. and all the new car taxes as well?

$5000 (difference) X Taxes = Value

Value + $1000 (Interest) = Value 1

Value 1 + New car taxes (Freight, admin etc.) = The Total Difference

If they do charge you all the new car taxes and stuff, they are making money on 3 ends:

1) the resale of your car.
2) the fright, admin fees.
3) You forking over the difference.

 

I think we're getting somewhere....cracking the dealership code/tricks

the new car price - trade in + tax (~$400), fees is $5000 give or take, and the extra finance charge is ~$1000

I guess it boils down to, with a $23k trade in, 04 TSX nonNAVI..... more than 20k miles, can they make a probit??


I've been thinking about this the whole day.... trying not to get screwed by the stealerships.... appreciate the feedback so far guys

 

still forgetting the tax savings in this equation.....maybe doesn't work out in your deal, but it does in his deal

 

sounds good....no tax on teh trade in part...so you'll be paying 5K + tax on 5K

 

Again, do you pay the same fees as buying a new car?

I.E. freight/pdi, admin fee, tire tax, gax tax, AC tax etc.

 

Ok I think I have the answer......

I went back to the dealer to negotiate and ready to sign the papers, and they told me they made a huge mistake and kept telling me how the '04 TSX is worth $19k now...

stupid stealerships...... now I can stop thinking about the '06 TSX and sleep well

 

I got 3.9% for a USED TSX in May because of a special finance rate Acura was offering. Used cars usually get higher finance rates so this was a really good deal. Actually they were going to offer me 6.9% initially, but luckily I had printed the offer off the web site and brought it with me, so they had to give it to me. I would have been screwed otherwise.

I'd try to find a better rate if I were you. 5% is pretty high on a new car.

 

5% is the going rate on a 60 month loan right now, credit unions might do slightly better, but you're not gonna get better than 4.5% UNLESS there is some sort of dealer promotion, which acura rarely does. i think they should, because the type of people buying an acura probably won't be defaulting on their loans, and the dealers could make more money...but what do i know?

 

As we probably were all thinking, too good to be true.

 

Too bad you didn't get it in writing.

 

All this and the dealer made a mistake? hahaha least we all learned something.

 

Yeah, I thought it was too good to be true too, that's why I asked.... but then at first they made it sound like that's what they're offering, and I specifically asked the sales guy why the high trade in value...and both him and his manager looked at the car for the appraisal too...

oh well, I guess my impression of stealerships isn't going to change

 

Actually I did, but it was on some junk memo paper with their dealership logo on it...

I think if I had jumped on the deal when they first told me, I might've actually gotten the deal when the first manager was still around...

I kinda feel bad for the sales guy.... hope he doesn't get into trouble because one of his manager made a mistake

 

I was interested in trading in my 04 AT with 75,000 km's in for a PWP 6MT with 80,000 km's. The stealership wanted $5000 from me

Considering my car has less km's and an AT (which in Canada is a $1200 option) I was shocked to say the least.

Although I give the saleman credit for coming and and saying he wants to make 2 to 3k from the transaction.

 

should have get it and run
since you'd only be paying for 5K tax.....good deal

sad but......oh well

 

Don't get hung up on the individual values when you're trading, just concentrate on the spread. Does it really make any difference if he sells you the '06 for $40k and gives you $35k on your trade? No. You're paying $5k plus tax (on $5k), plus tags, etc. For an '04 to '06, that's too good to be true, you should have booked him as soon as it came out of his mouth.

5% is perfectly reasonable, you might be able to shave a half-point but on $5k the savings there is miniscule.

 

I was thinking about it this morning (can't help it especially when you're driving your '04 hearing the door panel and center console rattles which the same stupid dealer couldn't fix ), I think they have written up an appraisal form when they appraised my trade... is it something I can use? also, can all this be considered malpractice? I mean, they had TWO person (manager and salesguy) looked at the car and THEN gave the appraisal...

I guess my mind is still stuck on the PWP '06 Navi

 

Something is fishy if ANY dealer gives you more than 20K on a trade for an 04.

Always do your research BEFORE you go to any dealership. If you'd have had the info on this thread you'd have known to jump at that deal right away.

Anytime you have a possibility of trading a car for 80% of invoice for one MY old or 70% of invoice for 2 MY old, take it.