noclue02

Hi guys,
I am planning to get the TLX soon. Been looking around, and I am a bit confused regarding how dealerships calculating their numbers. Hopefully my example make some senses.

Given the same amount on the down payment; dealer A offer the seller price on the car about a thousand dollar cheaper than dealer B. But for some who knows what other fees and crap they add and subtract, dealer B monthly payment (for 60m) is cheaper than dealer A.

My question then, is there a specific website I can look this up with the most accurate info? I been searching at several different sites, and some sites came up with higher number and some with lower number.
Also, anyone in southern Cali can recommend a dealership with the best price?

Thank you all,
Danny

RenoTL

It sounds like either the 2 dealers have different interest rates or different "add-on" fees because a car's payment calculation is the same for everyone. The variables are (1) the amount of the loan, (2) the interest rate and (3) the loan terms (paying monthly, bi-monthly, quarterly, etc. and for how long - 48 months, 60 months, or whatever). There are plenty of online loan calculators that you can plug numbers into to find out the payment needed.

baelim

I'd ask for out the door pricing (tax incl.) instead of talking about payment amounts. I try to avoid dealer financing altogether and talk to my banks and my insurer for the best possible rate.

I've had good estimates on what to expect using TrueCar but I don't think this applies coast to coast. If you're looking someone to hold your hand though you'll be better suited probably trying to contact individual members located near where you're shopping. I'd start at the Owners Sign in Thread.

justnspace

iTrader: (1)

damn millennials dont know how to shop for a car


errr, wait...I'm a millennial

justnspace

iTrader: (1)

you might as well spell out the details for us, so that WE can hold your hand....

how much of a down payment do you have?
what kind of APR can you get?
how long do you want the loan to be?


I also wouldnt buy a car based purely off of monthly payments, the above poster said it right...negotiate the price of the car + tax and title.(out the door price) which will give you your monthly payments...

when you negotiate monthly payments, the dealer specifically the sales man can inflate that number to make it look good for you, but then ends up costing YOU more in the long run

noclue02

Yes yes, I def don't know how to shop for a car, and many more =\ which is why you guys are here to help right? =)

If I buy the car for 32500 otd and give them let say 8k down, then I would be finance 24500k right? If I put this 24500k loan at 2.9% for 60months, I would be getting a 439/month or so (based on those online car payment calculator). And of course, if I use different sites for the calculation, I would get a different number. But with the dealer calculation, I would be paying an additional 30-40 buck per month. Unless I am doing something wrong here, please point out for me. =)

justnspace

iTrader: (1)

look at those fees that dealer is adding on!
what are those fees for?

this is why its important to negotiate OTD price!

the dealer can add on to inflate monthly payments without you even knowing!!

you'll need to read EVERYTHING. fine print and find out what those fees are. then further negotiate if those fees dont make sense

justnspace

iTrader: (1)

when you're in the "killing room" slow it down.
ask questions!
dont let the salesman take charge!
you're in the driver seat (pun intended)

if something doesnt make sense, WALK!

noclue02

justnspace, they gave me the print out of the msrp, discounted amount and selling price and all the taxes and fee. at the very end, the total monthly payment which is still higher than I anticipated. But thanks, I will sit down with them and ask everything again and see what other fee are they added on.

CTNYC

$30-$40/mo is somewhat significant over a 60 month loan... Thats $1800 to $2400... Are you positive that $32500 includes the dealers "doc fee" and sales tax? $1800 to $2400 is 5.5% to 7.38% more than the selling price... Which could also be the sales tax in many states... If it is $32500 even, I'd be willing to bet that sales tax wasn't included.

Side note: I usually just take a test drive and once I decided on the car & trim I want, I blast out an email bcc-ing many dealerships asking for the price of the car including all required fees and charges - The net cost before TTL (Tax/Title/Licensing) costs, which will be the same for the same car. This helps you compare offers on a more even playing ground. When I shop for a car, I shop VA, MD, DE, PA, NJ, NY, CT, RI, and MA dealerships... After going back and forth with a few dealerships and getting the lowest price, just show up and put down a deposit and sign for it.

Fun fact: The two most outrageous fees I've seen in quotes: a $699 doc fee and $999 "dealer prep fee" (on a brand new car)

baelim

a $30-40 tag is rather suspicious imo. i put 3k down for ~31k otd at 1.9% for 60 and i'm due $493/month. which it's what Google's car payment calc is telling me in rough estimates.

On one hand CA is peculiar about cars so I wouldn't be surprised that an universal web payment estimator not being able to estimate such things. I'm also wondering if the 8k down is what's not-helping if not hurting the bottom line...

On the other hand if these guys are dealing dirty i wouldn't even bother haggling with them for it's not just a one time deal but they'd continue to try to rob me as I bring in the car for maintenance...

Honest or not I really don't try to give two cents on any explanations a dealer might offer. One of my previous dealings when I told the dealer I wanted to bring the payment down to X he helpfully suggested I put down a bigger payment. Made sense... but I wanted him to help me not be suggested that I help myself... even if all the added cost made sense it doesn't mean you have to eat it.

At this point I'd take a friend with me to play devil's advocate and haggle the price down to the payment amount I expected. Sedans these days offer a great value because everyone is flocking towards SUVs so dealers are more flexible when trying to move out these (imo better) cars.

noclue02

The 32500 is what I gave them, and of course they wont sell for that OTD. Based on their calculation with the given price, I am still way off lol. I compared two diff dealerships that gave me their print out, the dealership with a couple hundred buck higher (selling price before tax), their monthly payment is ~16 buck lower than the one giving me lower price. The other dealership has to add some other fees in there since I did asked them that I want the spare tire and the protection package included.

I will definitely go again and ask for a print out of all the damn fees and such added on.

RenoTL

It shouldn't matter where you go online to get a loan calculator. The results should be the same everywhere (so long as you are inputting the same values for each of the variables. The formula is:The online calculators are just using this formula without showing it. You give it the values and it does the calculation behind the scene but the results should all be the same regardless of the website you are using.

atl7

Maybe try telling your salesman that when you punch in $24,500 with 2.9% over 60 months, you're getting around $439. Then ask what the reason is for their quote being $30-40 more a month. I use Bankrate's auto loan calculator and it's always spot on.

Unkn0VV17

Honestly, I didn't know how to negotiate and it was my first time buying a car at the dealership. It's basically trial and error. You learn from your mistakes and become better than the last time you are there. It took me a few times before I got the price I wanted for the car...although the stupid add on's, dock fee, and tax/license was a killer in AZ. I ended up getting the car for 32,500 and out the door 35k. I put a good amount down with 2.9% for 60 months (Acura Financing). Monthly payment is $298.

Ken S

The dealers love people who buy cars using only the monthly payment because it gives them a lot of room to charge all those extras. Ask for the details that make up the total price, then the interest rate. That will make the various quotes you receive comparable.

ggesq

iTrader: (1)

I flat out refuse to pay any of this nonsense and tell my sales consultant the same. When they tell me it has to be on the paperwork, I reply with, then take it off the the sale price of the car or else I'm walking. I refuse to budge on these specific fees.

CTNYC

Yeah - I actually simply don't even negotiate "selling price" I only consider the total price before TTL.. Saves a lot of headaches and simplifies the process, at least for me... Got some pretty slick offers on the TLX when I was considering it back in December... Ultimately decided to buy my TL cash instead, but might be back in the market for a new car soon

mlody

I second everyone's opinion. Stay away from the "monthly payment" mantra. If I were you, I would also check your local bank. Sometimes you might be surprised and actually get a better deal than what Acura Financial offers. As of today my bank for instance is offering 2.09% for 60 months for a new car purchases while current Acura promo for 60 months is 2.9%. That alone calculates to about 10$ difference on 30k loan.Not a lot but still something.

Stew4HD

I use a credit union. They offered a 1% below Honda/Acura's APR. I jumped on that.

justnspace

iTrader: (1)

Life is a learning process!
glad that every ones experience could help some one in the future

noclue02

I did looked into my bank, they do offer a slightly better rate. But I would have to pay 1k-1.5k more if I do not finance thru Acura. They having this promo so that you have to finance thru them =\. What is the OTD you guys got for the i4 tech package? I got a quote for 32,112 otd.

justnspace

iTrader: (1)

dafuck? why?

baelim

i don't know if the dealer is the walking contradiction or you.

mdx001

60 months?? That's what I would question. Can I really afford the car if I have to pay for it for 60 months? Acura's are expensive to fix and you will run out of most of your warranty at 4 years or 50,000 miles and will still be paying on a car that may start needing some repairs.

noclue02

????

CTNYC

60 months might be questionable, but the 2.9% interest rate is pretty low and justifiable, imo. I did a 60 month loan @ 1.9% with $0 down for my $31k ILX Hybrid back in 2013... Let's just say I was able to make substantially more than 1.9% return

Also - I don't necessarily agree with "repairs" with Acura... Aside from normal oil changes ($45), OP will need a brake flush around 3 years/36k miles ($160), preventative tranny fluid flush around 30-40k miles ($230), and maybe a new set of tire ($1000). Nothing too too crazy unless he gets a lemon (like I did with my ILX Hybrid)

I'm not vouching OP can afford it, but having a 60 loan doesn't mean it's a bad financial move (hell, I'm pretty sure Toyota is doing a 1.9% 72 month loan special right now) If you want to grow your money, most of us need to leverage it

Rocket_man

The dealers are probably using different financing sources. Each ran your credit score and probably gave you different interest rates. If you are financing for 60 mos that may be an indication this loan is a stretch for you and maybe your credit score is on the border line for the best interest rate. One gave you the benefit of the doubt, one did not.

noclue02

I'm not sure, but all the acura dealers are giving me the same rate, same story. I will refi thru my credit union later. Going with 60months @2.9% is, imo, isn't that bad. I can use the money to pay off my other higher interest debts lol. I know I should get rid of those first before buying a new car, but my old car is giving me issue. Rather wait and taking the risk with the old car, I just get this one and don't have to worry much. Thanks all again with the help. I made the purchased, couldn't be happier =) I just hope I didn't overpaid too much.

Kense

Why are you all shocked about the 60 month financing? Most car loans are 5 year loans.

Rocket_man

Maybe it depends on your age. For me anything longer than 48 months is too long for a car loan and 36 months feels about right. But people are spending a higher percentage of their income on cars now-a-days. 5 years to pay off a car just seems like too much car to me. But I just read that 20% of car loans were 73-84 months! Heck I paid off my house in 7 years. I can't imagine paying on a car for that long especially considering how it will depreciate. It feels good to be debt free and even better to feed myself when I retire. But to each his own I suppose.

noclue02

Rocket_man, 5 years car loan isn't that bad, unless you got outrages interest rate. I can paid off the car sooner than 60 months. But with a low interest rate on the car, I think it will be better if I use the money and paid off my other debts with high interest. But I do agreed that the sooner you paid it off with any debts, the better you are later on.

And dang, I don't think many of us cannot afford to paid off a house loan in 7 years, especially in socal lol. I definitely need to get a damn good promotion to be able to do what you can lol.

niray9

I got 2.04% for 60 months from a big bank in Dec 2014.

CTNYC

Yeah - average car loan length now is 62 months Average car transaction price for new cars is somewhere north of $31k... Shocking tbh.. But then again, I'm seeing many former classmates and co-workers (entry level business-related jobs, $50k to $65k income on average) are going out and leasing $40k to $50k BMW's, Benz's, etc... Wonder what would happen if they got their income pulled for a couple months

2.04% for 60 mo is a solid deal imo. I would have personally financed the whole car and throw my money into my portfolio (assuming I have my safety net already) I think I saw a Toyota ad for 0% for 72 months... Simply crazy.. But hey, I'm almost positive I can beat 0% returns over 6 years

noclue02

FCU offered me 2.5% for up to 75 months, which is 0.5% lower than Acura. But Acura won't give me the rebate if I finance thru elsewhere. All the socal dealers are the same, finance thru Acura and you'll get 750 rebate, and if you own a Honda or Acura, you'll get another 500.
I don't think the interest rate is high. I can always paid more each month and lower the total interest and the payments.
But yeah, I got the car. The payment is perfect for me. But damn I just felt the car jerk when come to a complete stop. Did this once, and I couldn't replicate it again so I can bring it back to the dealership. Hopefully it only happen in the Econ mode, as it has not happen in Normal or Sport mode (yet).