Financing a vehicle?

[macker]

http://www.taylorsautomax.com/dealership/staff.htm Doesn't look like Doug is there anymore....give Jim Taylor Jr. a try

[MacDaddy77]

Originally Posted by macker

um.... http://www.bankofcanada.ca/en/fixed-...te_080910.html

I think he probabally meant significantally (sp?)

[IliketoPuck]

Originally Posted by The Yen Man

As long as he plans on living at home for the near future, I don't see the harm. But man, 9% financing is pretty high. Heck, my unsecured line of credit with my bank is at 5% and I think that's already high.

That is exactly what I was trying to point out to my friend. Everything about the new vehicle would be more expensive.

- Premium fuel
- Higher monthly insurance
- More expensive to fix
- Huge monthly payments

He seems completely content to live at home. I just find it a bit backwards to buy a luxury car when you don't have any other bills and live at home.

[macker]

Originally Posted by MacDaddy77

I think he probabally meant significantally (sp?)

Depending on the amount you are looking at/situation even a 1/4 point can be significant. These are relatively long term commitments and the short term is showing you where things are going.

[username]

Originally Posted by IliketoPuck

Heres one for you guys, give me your honest opinion.

I have a friend who just recently got a job at an O&G company in Calgary (1 month of employment), after graduating from school here in Calgary. Still has some debt (will take a few months to pay off), and lives with parents. He is planning on purchasing an '05 luxury sedan which will cost approximately ~20k, via 9% financing. I can't see the logic in it, and voiced my opinion against the purchase. Am I out to lunch on this one? Or should I just back off?

edit: I should also say that the payments will amount to roughly 1/4 of monthly income.

That is without question one of the dumbest things I have ever heard of, he/she could easily get 8.5% financing .

Seriously though, in 2 years this person is going to want to move out of his/her parents basement and won't be able to b/c of this stupid car they felt entitled to. Doesn't make sense.

Oh ya, who buys a fancy new car just in time for winter anyway????

[IliketoPuck]

Originally Posted by username

That is without question one of the dumbest things I have ever heard of, he/she could easily get 8.5% financing .

Seriously though, in 2 years this person is going to want to move out of his/her parents basement and won't be able to b/c of this stupid car they felt entitled to. Doesn't make sense.

Oh ya, who buys a fancy new car just in time for winter anyway????

The line I got when I questioned about 1/4 of monthly income going to payments was that he already spent that much going out, so if he just got the car he would spend it on that and not on going out. Seemed a bit strange to me, because wouldnt' the point of having a nice car be to go out and show it off?

[drewboy12]

Originally Posted by IliketoPuck

That is exactly what I was trying to point out to my friend. Everything about the new vehicle would be more expensive.

- Premium fuel
- Higher monthly insurance
- More expensive to fix
- Huge monthly payments

He seems completely content to live at home. I just find it a bit backwards to buy a luxury car when you don't have any other bills and live at home.

Paying 1/4 of your monthly income to one thing is not a very good way to save money to move out, or save money for the future, or save money incase you lsoe your job. Just doesn't add up.

Not every young graduate wants to save money... If hes comfortable living at home, and wants to spend 25% of his income on a car its his choice. He has it easy im sure, parents pay for all his food, cable, house to live in, that leaves him with what 50% after taxes still to have fun with. Not every young person wants to start saving right away. All personal preference.

[The Yen Man]

Originally Posted by IliketoPuck

The line I got when I questioned about 1/4 of monthly income going to payments was that he already spent that much going out, so if he just got the car he would spend it on that and not on going out. Seemed a bit strange to me, because wouldnt' the point of having a nice car be to go out and show it off?

I've heard that argument before, and trust me, he's not going to sit around with his car and not go out. So now instead of just spending 1/4 of his paycheque going out, he'll be adding 1/4 paying for his car. Like I said, as long as he's fine with living with his parents for the next 3+ years, then all the power to him.

[IliketoPuck]

Originally Posted by The Yen Man

I've heard that argument before, and trust me, he's not going to sit around with his car and not go out. So now instead of just spending 1/4 of his paycheque going out, he'll be adding 1/4 paying for his car. Like I said, as long as he's fine with living with his parents for the next 3+ years, then all the power to him.

You've hit the nail on the head, he seems to have no problem living with his parents until he is pushing 30.

[bossy22]

Originally Posted by macker

True. You can buy used and for the most part there are restrictions. Example : Many Hondas aren't importable to Canada anymore as 56% are made in Japan. There was a guy at Taylor in Great Falls : Doug Williams, and anytime I had questions on this he was great at providing the answers. They will do everything for you including putting on daytime running lights etc but you are basically limited to buying used. They even offer to pay for your hotel while you are down there for the weekend. The service that they were willing to provide was a shock compared to what you get here. At least google him and give him a shout and maybe he can talk you into buying used as it is a significant savings.

You can still import the vehicles made in Japan, you just have to pay duty on them.
I bought a brand new Honda Pilot in the US in the spring. They did all of the work, it was super easy. In the end, I saved over $12k.
Most dealers, (I got this response from Lexus, Toyota, Subaru and Honda) aren't allowed to sell new vehicles to Canadians anymore. There are ways around this though. If you have a vacation property in the states, or a friend with property in the states, it's easy to get around. I purchased the vehicle, registered it to my vacation property, then sold it to my wife, who drove it across the border. The dealership still did all of the paper work for me, and sent it off to the border. One thing to note, before I could sell the vehicle to my wife, I had to wait for the title. This took 2 weeks. That was the only speedbump in the process.

[Sliver]

Originally Posted by fleury

^ I'm pretty sure now you can't buy brand new cars in the States due to government regulation.

Originally Posted by macker

True.

Where are you guys getting this from? Transport Canada says you can. They even have a list of all the cars that are admissable here. And I've done it, so I know for sure you can!

[username]

Originally Posted by IliketoPuck

The line I got when I questioned about 1/4 of monthly income going to payments was that he already spent that much going out, so if he just got the car he would spend it on that and not on going out. Seemed a bit strange to me, because wouldnt' the point of having a nice car be to go out and show it off?

Hahahaha. Ridiculous. I take it your buddy is single and spends a lot of dough going out? Trust me, he's not going to stop b/c I never did when I started adding expenses.

[IliketoPuck]

Originally Posted by username

Hahahaha. Ridiculous. I take it your buddy is single and spends a lot of dough going out? Trust me, he's not going to stop b/c I never did when I started adding expenses.

You got it.


Oh well it is his money and his decision, being a finance guy it just makes me shake my head. I give him all the free advice in the world, but it is up to him to take it.

[IliketoPuck]

nm

[macker]

Originally Posted by Sliver

Where are you guys getting this from? Transport Canada says you can. They even have a list of all the cars that are admissable here. And I've done it, so I know for sure you can!

I was going by information I got in 2007 when I looked into this. The info was from a car dealer in the US and it sounds like if you want a new vehicle from the States you just follow the proper steps and stick to the specific list. Does your warranty transfer over on a new vehicle also?

[Sliver]

Originally Posted by macker

I was going by information I got in 2007 when I looked into this. The info was from a car dealer in the US and it sounds like if you want a new vehicle from the States you just follow the proper steps and stick to the specific list. Does your warranty transfer over on a new vehicle also?

They lied to you for sure. I bought mine in 2007. The list is fairly extensive of vehicles you're allowed to bring over...for example, every single Toyota can be brought over. The warranty in my case is transferrable as well, but maybe that's different for different manufacturers.

If it's not transferrable, that still wouldn't matter to me. If you're saving $12K, a pretty big problem would have to come up for it to wipe out the net difference in price. Plus that's irrelevant anyway because if something catastrophic/expensive did happen, you'd just trailer it back to the States if the warranty wasn't valid in Canada anyway. It's a no-lose situation.

[Ozy_Flame]

I was out looking for a new sedan in June, and I came out owning a used luxury sedan from BMW. Not only was it actually priced better than most of the newer vehicles for what it had (originally worth over 60k and got it for 42k), BMW also spent about five grand fixing it up as part of their Certified Pre-owned Series. There's even still warranty left on it for two more years, and a five year tire coverage warranty, which is very handy considering tires are expensive for luxury sedans.

Consider a dealership's pre-owned car program; alot of the time the cars are practically like brand new vehicles.

[CaptainCrunch]

Pylon did a great job in selling me my jeep, which was a preowned 2009. Maybe get your buddy to PM him.

[lucky1]

Originally Posted by dustyanddaflames

Hey all, just started snooping around into financing a new dodge truck, and have come across a situation I know a few of you will be able to help with.
Question being - do you lock in at 4.9% interest rate (which makes my payments a little higher than I was hoping), or should a guy run with the 2.75% variable rate over the same term (keeping my payments right around what I was looking at spending).
I am fully aware that the 2.75 isn't going to last forever, but you do chance that it stays low long enough that you can pay down your principal sooner, or you play it safe by locking in for another (roughly) $50/month.
Thoughts?

I have a beautiful GMC that I can give you a great deal on :-)

[narbeZ]

Don't buy/lease a new vehicle. It's as good as throwing money away. (Unless you're getting paid to drive it.)

I know millionaire's that don't buy new vehicles.