SodaLuvr

A friend of mine is looking for an used car that's price at about 10k. The car needs to last her another four to five years without any major out-of-pocket repairs. Originally she was interested in an Accord, but all Accords that I could find within her price range were either high mileage (90k+) 7th generation Accords, or low mileage, transmission fryer 6th generation units.

I found her an 07 Malibu LT 2.2 with 27,000 miles on it that has GM certified pre-owned status. The dealer won't budget off the vehicle's price of $10,999, but is willing to include gap insurance (normally $595) with the GMAC loan @ 5.9%. Is this a good deal?

What other cars would you guys recommend?

What's a good rate on financing (not familiar with financing)? Is gap insurance a must?

Thanks.

Shoofin

Gap insurance isn't a must, but it is good to have. Do you know what it is? If not, here's a scenario:

You get into an accident, and your insurance company says it's totaled.
The next step, the insurance company has to pay off the bank that it's leased or financed through.
The bank says "OK, the payoff is $15,000, that's what you owe us"
The insurance company says "The car isn't worth $15,000, it's only worth $10,000, according to market value"
The difference of what the insurance company is willing to pay, to what the bank is asking for, is the GAP amount. GAP insurance covers that difference, should this scenario arise in a case of a total loss or a theft. To put it in plain "Engrish", it covers you if the car has a higher payoff amount than what the car is actually worth.

I know that other banks that offer GAP insurance usually have a much lower fee for GAP. I think the $595 could be negotiated down. I know that most bank's GAP is anywhere from $150 to $250, depending on lease or finance. Try to negotiate that down, or try to get them to include it in the price.

On a side note, the price they are asking for on the Malibu is reasonable (Definately more reasonable than the Accord price you IM'ed me about earlier today).

Good Luck!

SodaLuvr

Thanks!

Realistically, how much lower can the price go? The person won't budge, but seems willing to include other items to make-up for the cost. What items should I ask for aside from GAP insurance?

Shoofin

Well, the Galves "Market Ready" price is about $10k ( I don't show you "market ready" when you ask me a million times for Galves reports ). The wholesale is just under $9k. This is for a car w/o a sunroof. If it has a roof, add $500 to the price. Market ready is the price the car would be worth after conditioning was done to make the car clean and ready to sell. Factor in whatever it costs for the Certified pre-owned warranty (who knows, $500 maybe??) and that's probably why they won't budge on the price.

SodaLuvr

Got it, and thanks for all the Galves reports that you've pulled for me in the past.

I guess the deal is reasonable then, especially if they are throwing in the GAP insurance.

Ralphie917

Normally id tell anyone looking into a loan to go check out some credit unions as opposed to banks or dealer financing - When i was shopping for loans i was going to go with a collateral loan until every bank i went to wanted to bend me over, afterwards I got a 4.75% rate (new car would have been a bit less) through navy federal.

On a 10k loan (assuming no money down right?) the 5.9% really isnt that much more on a loan 5 years or less, maybe an extra 300 bucks or so if my math is correct.

Its hard to argue with an '07 chevy (and the new malibus look nice enough) with that price tag when the nearest accord will most likely cost you more with double the mileage and a few years old. I honestly dont know id do, if i was a girl id probably go with the malibu and run with the warranty for however much longer it lasts. But id have more fun driving the honda and reselling it down the road for more than the malibu - but again were not talking big big money your going to lose on either car over the course of the next 4-5 years.

Lots of things to consider....

edit: nevermind, '08 is the new body style malibu --- forget what i said, i wouldnt buy it

SodaLuvr

New deal is 10,997 for the car, $1.00 for the gap insurance + tax, 5.9% APR financing w/GMAC for 60 months.

KaMLuNg

iTrader: (5)

he went down a dollar???

dallison

went down $2 on the price of the car and 594 for the gap ins

SodaLuvr

Found a transmission fryer 2003 Accord EX-L V6 w/91,000 miles for $11,400, 2005 Accord LX I4 w/62k miles for $12,000, and a 2004 Accord LX I4 w/65k for $12,000.

What's the best choice here?

SodaLuvr

All done!

She will be picking up a 2006 Toyota Corolla LE Auto from Hertz for $11,695 after a $300 AAA discount, which is $550 under KBB's private party value for "fair" condition. The car had a little under 27,000 miles on it and was in service for just over a year as a rental vehicle.

Will probably be picking up a 7-yr/100k Toyota Extra Care Platinum $0 deductible warranty for this vehicle for $795.00 so that it'll be under warranty the entire time she owns it. (She's only planning to keep it for another five years) My other friend's 03 Corolla just ate a $700 radiator at 80k last week and the extended warranty paid for it, so I think it'll be worth it.

Although the car has all maintenance records, any tips on vehicle inspection prior to driving it off the lot?? I think I'll take it to Pep Boys for a brake inspection and bring my trusty tire treadgauge along?? Anything else?

Here's a link to the car: Link

nokiaman

Nice choice, good little car,reliable,incredibly boring to drive but does everything it is asked well.

demons rage

iTrader: (1)

oil levels and such too i guess? I also ran a carfax for you since I bought a month thing a few weeks ago because i was car shopping for another car, and it came out clean. i would send it to you but i dont know how.. ahah...