$500 a month for a Mazdaspeed3?

[1sty]

If that was how compound interest worked, he could be so lucky. It will be thousands worse than that if he doesn't overpay when he can.

Word,
19,500 on a 5 year loan at 16.5% ends up costing a total of $28764 as opposed to $22079.40 for a 5% loan

What I dont get is how the hell people think this is Mazda ripping them off?
Its his own credit score sucking ass that's the problem.

For a Grand Touring without taxes the buying price is around $23,500 out the door.
The MP3 is a ten year old car now and NADA trade in on it is only $3750 at best. So say he even gets $4000 for it and he owns it outright, that means the loan is still going to be $19,500 with nothing down.
At 16.5% that is $480/month for 60 months.

An Evo would be a Christ load higher as that rate ain't coming down any.
A lancer EVO GSR would be $29,000 out the door without taxes and with nothing owed on his MP3. With that stink nugget interest rate he would be at $712.95/month.
Assuming his credit score is around 600, the rate isn't going to get much better.

My STI was about a $29,000 loan but with the 3.4% rate I had on it I was only paying a bit over $500/month.


The dealer may have been a bit off, but it sounds like that was a negotiation starting point. Best he could hope for is probably $450/month.
Before everyone jumps on the dealer as being a thief and all that crap....LEARN MATH!

 

[LazerBlueP5]

Series man! Mazda needs to clean house of who's running their stores.

Are you kidding- they are pulling huge profits. You just have to know what you are doing before you go in. That includes, as others have mentioned, knowing your credit score, knowing what your trade is worth (not based solely on KBB but more so on current comparative auction rates), and the TRUE invoice of the car you are buying including any options/packages.

When I went and traded my Mazdaspeed3 in for the SRT-6 they came back with a paper with number explaining monthly costs. They had the math set up for me to pay $500 a/month after my trade (which was in negative equity). I knew what my trade was worth and knew what interest rate my top tier credit would qualify for so I literally laughed when he showed me.

I pushed the paper back to his side of the table and politely explained I know what my car is worth, and I know what interest rate I qualify for. Long story short- I walked away paying $325/month on my 2005 SRT-6 w/ 12k miles. (wiggle)

 

[LazerBlueP5]

Word,
19,500 on a 5 year loan at 16.5% ends up costing a total of $28764 as opposed to $22079.40 for a 5% loan

What I dont get is how the hell people think this is Mazda ripping them off?
Its his own credit score sucking ass that's the problem.

For a Grand Touring without taxes the buying price is around $23,500 out the door.
The MP3 is a ten year old car now and NADA trade in on it is only $3750 at best. So say he even gets $4000 for it and he owns it outright, that means the loan is still going to be $19,500 with nothing down.
At 16.5% that is $480/month for 60 months.

An Evo would be a Christ load higher as that rate ain't coming down any.
A lancer EVO GSR would be $29,000 out the door without taxes and with nothing owed on his MP3. With that stink nugget interest rate he would be at $712.95/month.
Assuming his credit score is around 600, the rate isn't going to get much better.

My STI was about a $29,000 loan but with the 3.4% rate I had on it I was only paying a bit over $500/month.


The dealer may have been a bit off, but it sounds like that was a negotiation starting point. Best he could hope for is probably $450/month.
Before everyone jumps on the dealer as being a thief and all that crap....LEARN MATH!

Very true. PS MY STi was around the same rate- and monthly payment $545/month.

 

[vtakk]

With that stink nugget interest rate he would be at $712.95/month.

I would be driving Z06 with 0 down and 0 APR for 72... haha

 

[1sty]

I would be driving Z06 with 0 down and 0 APR for 72... haha

Try around $950/month on that one.

 

[vtakk]

Try around $950/month on that one.

yeah.. I was pleasing my mind. haha

 

[NCZ13]

i would also like to point out that dealers are completely separate from the brand they sell. They just have the rights to sell and service the cars, they arent the brand themselves.

Also, know that sales makes little if ANY money on new cars. Majority of money the sales department gets is in used cars. Thats where the profit is. Most of the time, if the salesguy needs sales, and they can tell your willing to just walk away, youll get the car for invoice, that way a sale can go on their record, which at the end of the month means if they meet some sort of quota they get a bonus from the manufacturer (or the dealer themselves as well, depends on how they operate)

 

[Crazypato]

i would also like to point out that dealers are completely separate from the brand they sell. They just have the rights to sell and service the cars, they arent the brand themselves.

Also, know that sales makes little if ANY money on new cars. Majority of money the sales department gets is in used cars. Thats where the profit is. Most of the time, if the salesguy needs sales, and they can tell your willing to just walk away, youll get the car for invoice, that way a sale can go on their record, which at the end of the month means if they meet some sort of quota they get a bonus from the manufacturer (or the dealer themselves as well, depends on how they operate)

Very very true and good point!!

 

[nynhex]

I just wanted to chime in here. I'm new to the forums and I just picked up my Black MS3 2010 last night.

I make a good bit of money so I can afford the note but due to a job last a year plus and an ex with a bad spending habit my credit went down the rabbit hole.

I shopped lenders and no one would touch me besides 2nd-chance financing (which here in TX means 18% interest). My old car (04 civic si) was having problems and I started to put money into it and decided I'd bite the bullet.

So I traded in the car (after having it on the market for 5 mo with no bites) and added a lump of cash. My payments are 430/mo for 60 mo at 18% interest.

So yes, I'm getting ***** but I also have a strategy in place.

1.) Use this loan as a way to establish some form of positive credit
2.) Pay the loan off in 12-18 mo so I am not floating in interest payments

Yes I got the ass end of the deal but I also allowed myself to get into a bad spot and now I'm positioning myself to get out of it. But more importantly I've wanted an MS3 for years and finally got my dream car (albeit at a price).

In the end, I think it comes down to what you can and are willing to pay for something you need or that makes you happy.

My .02c

 

[destrux]

Im paying 440 a month at 10% interest 72 months..no trade..$1500 down payment..and I thought I had gotten rapped. They tried to **** you and take aall your money with interest!! I say the same thing, go to a credit union or so..get approved...go back and get the car you want.

Yeah this is almost exactly what I got mine for. I feel better about it now, after seeing this thread.

A friend of mine was offered $300 to trade her 96' Audi A6 quattro (with 55K on it). She sold it for like $3,500 privately. We were offered $100 for our 93' MX6 LS (although, it had 250K miles on it). We sold it to a local guy for $2000 (and 3 years later, it's still on the road).

I didn't even want to sell or trade my 1g eclipse... I parted it out. So far I made $1000 and only sold about 1/4 of the car.

 

[nynhex]

Trade-ins are a PIA. I was lucky to get a "decent" amount for mine. I could have gotten a couple k more on the market but it had been 5 months of active selling and no bites so I took the lesser of evils.

In the end we're all rolling MS3s...

 

[MS3chriSS]

Trade-ins are a PIA. I was lucky to get a "decent" amount for mine. I could have gotten a couple k more on the market but it had been 5 months of active selling and no bites so I took the lesser of evils.

In the end we're all rolling MS3s...

I did the same thing... Had an 01' Z06 which I was looking to get $18k for on the open market, ended up not getting any bites so I tradded in for $16k. Found my old vette on craigslist the other day for $17k, nice profit margin that dealership will make off me!

 

[nynhex]

I did the same thing... Had an 01' Z06 which I was looking to get $18k for on the open market, ended up not getting any bites so I tradded in for $16k. Found my old vette on craigslist the other day for $17k, nice profit margin that dealership will make off me!

It always happens like that. To my "relief" all of the 04 Civics I see are not selling at the range I was looking to get 8-9k. They are just sitting there on the market. I took a huge loss in general but I'm loving my car so much my happiness is priceless.

-N

 

[kvndoom]

I just wanted to chime in here. I'm new to the forums and I just picked up my Black MS3 2010 last night.

I make a good bit of money so I can afford the note but due to a job last a year plus and an ex with a bad spending habit my credit went down the rabbit hole.

I shopped lenders and no one would touch me besides 2nd-chance financing (which here in TX means 18% interest). My old car (04 civic si) was having problems and I started to put money into it and decided I'd bite the bullet.

So I traded in the car (after having it on the market for 5 mo with no bites) and added a lump of cash. My payments are 430/mo for 60 mo at 18% interest.

So yes, I'm getting ***** but I also have a strategy in place.

1.) Use this loan as a way to establish some form of positive credit
2.) Pay the loan off in 12-18 mo so I am not floating in interest payments

Yes I got the ass end of the deal but I also allowed myself to get into a bad spot and now I'm positioning myself to get out of it. But more importantly I've wanted an MS3 for years and finally got my dream car (albeit at a price).

In the end, I think it comes down to what you can and are willing to pay for something you need or that makes you happy.

My .02c

You're doing the right thing. I paid off my 2004 VW in 22 months... I saved somewhere around 5000 dollars compared to paying minimum payments and going full term.

For future reference, always remember: cars> women. Any given day I'll take having a nice ride and no woman over being broke and busted and stuck with a b****y hot chick.

 

[nynhex]

You're doing the right thing. I paid off my 2004 VW in 22 months... I saved somewhere around 5000 dollars compared to paying minimum payments and going full term.

For future reference, always remember: cars> women. Any given day I'll take having a nice ride and no woman over being broke and busted and stuck with a b****y hot chick.

I'm right there with you. I'm single right now and planning to stay that way. I've always been an import car enthusiast and haven't had a decent car in a while. I'm going to bust my ass to pay it off as soon as possible as my finance company says the first 1-2 years is mostly interest so the faster I can pay the better.

 

[Raymo853]

You're doing the right thing. I paid off my 2004 VW in 22 months... I saved somewhere around 5000 dollars compared to paying minimum payments and going full term.

For future reference, always remember: cars> women. Any given day I'll take having a nice ride and no woman over being broke and busted and stuck with a b****y hot chick.

Actually paying off a loan early is BAD for your credit score. Remember the credit score is not based on a measure of you your responsibility, but the ability of the bank to make money off of you. Regardless is is still better for your score than defaulting or paying late. But that is why I who has never missed a payment or been late, paid off my mortgage early, and only had one car loan at age 39, pay off my CC each month, ... has a only ok rating. No bank can make money on my back.

 

[Caedmon7777]

Actually paying off a loan early is BAD for your credit score. Remember the credit score is not based on a measure of you your responsibility, but the ability of the bank to make money off of you. Regardless is is still better for your score than defaulting or paying late. But that is why I who has never missed a payment or been late, paid off my mortgage early, and only had one car loan at age 39, pay off my CC each month, ... has a only ok rating. No bank can make money on my back.

With cars, they are considered to be short term loans so those don't count towards your credit is what I was told.

 

[kvndoom]

Actually paying off a loan early is BAD for your credit score. Remember the credit score is not based on a measure of you your responsibility, but the ability of the bank to make money off of you. Regardless is is still better for your score than defaulting or paying late. But that is why I who has never missed a payment or been late, paid off my mortgage early, and only had one car loan at age 39, pay off my CC each month, ... has a only ok rating. No bank can make money on my back.

Well, it's a double edged sword... how much money do you want to pointlessly give away to have a better score? I put small charges on my credit card and keep a little balance, let them make 4 or 5 bucks off me a month until I pay it off, then buy something else. But that's a drop in the bucket from a car soaking you for (potentially) hundreds a month.

Your credit score would be a lot higher if you just got a low-limit card and carried a balance every month but always made timely payments. Paying it off every month is what hurts you. They aren't looking for amounts, but how many times they make some money.

 

[microman777]

The credit system is just a scam, to keep us as slaves for the bankers.

 

[nes]

just thought i would chime in here, i see alot of folks have said what i was thinking, but i wanted to restate some facts.

on a mazda speed 3, there is roughly 1800 dollars mark up(before hold back) to get to dealer invoice. so lets say your on a base car, msrp is 23945, getting down to invoice puts you right around 22000(lets just say they are being nice and giving you a good deal). now your car is worth 4k max on trade(hit figure in my head is closer to 3 where im from, but im not your dealer) http://www.kbb.com/kbb/UsedCars/Pri...7207|0|0|&Condition=Excellent&QuizConditions= . put you around 18000 before sales tax, prolly 19 and some change after. now you having bad credit isnt your dealers fault, a 16.5% rate probably means your not even in the 600s, which also means the bank wouldnt loan you a stick of gum without some kind of collateral. simply put, blame yourself for the s*** rate, not your dealer.