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Discussion Starter #1
after driving my k20 swapped db8 for few months here (recently moved to texas) decided it was even too hot in fall without a.c

so i was on hunt for another dd for few thousand dollars. but after looking for quite some time, cant find anything decent. i went to honda dealership today see what they could get me, just being 22 years old with new credit, they manage to squeeze me a 2012 white lx sedan. i think what i paid is fair and ready for summer!




IMG_2341 by zheng_xiaolong, on Flickr



IMG_2343 by zheng_xiaolong, on Flickr



IMG_2344 by zheng_xiaolong, on Flickr



IMG_2347 by zheng_xiaolong, on Flickr

this is my k20 integra if anyone cares.


IMG_1778 by zheng_xiaolong, on Flickr


IMG_2286 by zheng_xiaolong, on Flickr


IMG_2289 by zheng_xiaolong, on Flickr
 

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August 2012 FB2/FG3 ROTM Winner
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welcome Aaron!
 

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Pickle Hammer Power
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welcome.... nice rides
 

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Welcome bro and i want THOSE BUFFALO WILD WINGs !!!!!!! lol
 

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Discussion Starter #6
thanks! i miss the power of the k but i miss being able to drive stock car daily more lol.
i love bww, favorite spot on tuesday nights!
 

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Discussion Starter #10
how credit score works???? btw funny story how i bought my car

hello 9th gen! i want to share story how i got my car. i never intend to buy a new car since its always lose value, but it was actually accident how i got it or did dealership actually tricked me -.-

well little about my self, im 22 years old. according irs i only been working 11 months my whole life and made total of $10,000. (always been working at family/relative restaurant so they always paid me in cash......) i have 1 credit card with $1200 max and a paypal credit card thing $1000 max. owned many many 90s hondas since high school but never gotten any kind of loans or finance. and i have no clue what my credit score is.

went to dealer look for a used car this past monday, went and asked about couple of them (2006 honda fit, 2002 mini cooper) got quoted rediculas 18% interest and possible need a co-signer. i really needed a newer car for texas summer since its 100+ degrees 6 months out of the year. my current integra has no air conditioning, no cruise control, no power steering with black interior with leather seats etc. its pretty much a track car without the fancy stickers.

anyway, after chatting with saleman (man this guy is good at convincing me at all kinds of crap but i wasnt buying it) so after he went to his manager several times, and he came back said we cant sell you a car without co-signer due to your low credit score and income.... he bought back a paper saids he can get me a NEW car without co-signer and only need the $2000 down payment i originally offered for a used car.

first offer was

2012 civic 4 door lx , these number are pretty close but i cant remember exact on top of my head since they are still processing paper work at the bank, i still need to sent them a copy of my pay stub. the sale is final tho

$19425 + $1800 worth of dealer stuff installed.... (tinted window, exterior protection package and bunch of other crap) with 6.5% interest

at first i thought it wasnt bad since i thought i had no credit, but i didnt want to buy a new car, after 30 minutes still trying to convincing me, i told him ill go home and think about it.

then he got his manager and talked to me, he asked me if it was the price, i said it is little too high.

came back with better offer

-$1200 from the price and lower interst rate of 2.9% , i was pretty happy but i didnt showed it. i told them i had to go home, it was late (6:30 pm)

later i came home, i called my parents and they said it wasnt too bad of deal and it should help me built my credit and they always wanted me to have a stock new/newer car instead of driving unsafe race car around all year lol.

8:00 pm i called them back, and told them my parents said it was still too expensive, if they could knock another $1000 off i can make deal that night, after few minutes they called me back and agreed. i went there with my downpayment and signed a bunch of paper. and they had ran my credit score, there was 3 of them, 743, 709, 709 i dont know what they mean but im assuming it looks pretty good. i really want to kick my self for not checking my credit score since i just started to built credit and i thought it was low.

so pretty much i only asked $2200 off, which they charge me $1800 worth of stuff to install in my car (they make alot money off that too)

total came out around 21400 area with all tax, plate fees, and interest charge (it should be included) for 60 months.

so did i get a no deal, ok deal, good deal, ripped off???
 

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First of all congrats on your purchase. 21.4 out the door is not bad if you ask me. Getting your credit score high is not difficult these days, being responsible and buying small items and paying them off goes a long way. Debt:Income ratio is another really big factor, since you said you don't have any debt it's no surprise your credit is in the 700's.

Enjoy the new car, make the payment, double up on them, triple up if you can! Debt free is the way to go haha, I'm striving for it myself.
 

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Discussion Starter #12
assuming sooner i pay it off the less total cost it will be? i make decent money a month so thats not a issue, plus no rent helps out alot. right now monthly payment is $356 and technically im getting a free car due to no rent fee's and i live in the house alone lol. great have relative with houses they dont know what to do with. only rule is keep it clean which im good about that.

this car actually saved me money in the long run, investment wise. i spent countless money on my previous cars doing mods, which are way worse lost when buying new. but i really do need a nice car for a daily driver, its so quiet im still not used to it yet!
 

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You didn't get ripped off from what I can see. The reason they came back with a higher interest rate on the older cars is because of many factors. Lenders will not approve very low interest rates on older cars unless it is a credit union extending it to a member. The reason is an older car usually is worth less, and so at a lower apr they would make almost no money. Plus, people who buy older cars that don't cost a whole lot, but want to finance are statistically more likely to skip out on payments. They are basically covering their butt due to the added financial risk of financing a cheap older car that has a higher likelihood of breaking down. Let's say that you, the customer, does not make some payments on time and the lender repos the car...they would have a hard time selling it and recouping their losses.

As someone who works for a reputable dealership, I can tell you that what they did was good. As a business, they are there to make money, as anyone who works for a living does. But some places are quite predatory. If it had been the other way around, and you were looking at new cars but they said "oh, we can't finance you on this, but we can get you into a used car" I would get a second opinion. Dealerships make more money on used cars. So it sounds like they were treating you well compared to what the average dealership does.

About the only thing that is not great about this transaction is the APR. while not bad, it could have been better (depending on length...32, 60 or 72 month.) the fact that they magically found you a better APR is BS. While not great, a credit score over 700 is pretty much automatic approval, especially with two grand down. They have books from the banks and credit unions that tell them what percentage to charge for what credit scores (there are exceptions to this, but if everything on the report is clean, this is pretty much true). The thing is, if they can get you to sign at a higher APR than what the bank has said it will offer, the dealership gets a cut of the additional money that you are charged each month. Basically, when they come back with a different APR, they are just lowering their profit a little.

The dealership I work at actually does not practice this. We just go with whatever the apr approved by the lender to the customer. I don't blame them though. To be honest, total profit when everything is said and done (adding flooring fees, taxes, the fact that Honda does not offer kick backs to dealerships or any dealer incentives on civics) there is really only about $700 dollars of real profit on civics if they can manage to sell it at MSRP. That $700 is then split up with the salesman, the manager, the general manager, the lot attendant, the lady at the front desk who answers the phones, and bills like electricity..etc. (as an example, i have never been paid more for selling a civic than $150) so obviously they try to add every additional option they can to make it as profitable as possible.

Finally, on the flip side, the lowest APR offered on civics is 1.9% for 60 months or 0.9 for 32 months. You really are only paying a few bucks more a month than you could have.

TL,DR

No, overall, you did not get ripped off. Good job, but good thing your parents were watching your back, because they would have kept you at an even higher APR without you pushing it one step farther.
 

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Discussion Starter #14
^ $150 sounds terribly low for selling a car, consider how much trouble how some customer can be. i been in business industry my whole life so i do understand the concept. alot people compliment on how good this honda dealership is , thats the main reason i went to check it out.

this relieve me a quite bit, but in the end im very happy with my purchase. this would be great family car once i have my own, ill try my best to do least mod as possible. only thing i would do is ex or si wheels, i cant stand steelies with covers lol
 

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Yeah, sometimes it is only $100. That's how much I make on Fits even if I sell it at msrp. Same for insights. If I can sell an accord at MSRP, it is about $300...for a CRV, about 500-600. I have only sold a pilot once at msrp, but it made me about $650. All my big money sales have always been on used cars (talking $1,000 in my pocket or more). Except once when a lady traded in a 2010 Mercedes GLK 350 on a 2012 exl accord. As a salesman, if I convince someone to trade a car for less than actual trade value, I get a cut of that. I felt like an ass later, but I convinced her to trade it for $27,500 (she bought it new for over $50K...only 16,000 miles on it. About $5,500 below book value. She bought the accord at MSRP and it had digi shield paint protector, door handle and door edge guards, all window and sunroof visors, rubber mats thought and trunk tray, light up accord emblems in the door jam and she bought warranty. My total commission was $1281. Not bad.
 

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Trading in for a 2012

I plan on trading in my 2007 civic si for a 2012 civic si, but I was just wondering if the honda dealerships near me do not have any is there a chance that they can order them to be shipped there? And what else should I know before I make the switch.
 

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Expect a wait unless they have one in stock. Might be worth looking at online inventory and using cars.com if you're willing to travel a bit.
 

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Expect a wait, depending on your location I guess. It took me around 2 & 1/2 months to find my civic LX coupe mostly because I wanted a black one. I turned down a 2 rallye reds and a dark grey. Using cars.com is VERY helpful in finding a civic in your area. I would check cars.com every day when I was looking.
 

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Check cars.com to see if any Si's are near you then see if your local dealership will bring it in for you. I didnt get an Si, but when I got mine my dealership traded with another dealership on the other side of the state. Had my car in 2 days.
 
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