Car salesman question`?

Question

I have a 2005 ford mustang in great shape, it has 30,000 miles, it is paid for but the internet says i get 17mpg. I really am interested in trading it in for something a little better on gas but i am not sure if it is going to pay off because i would obviously have a small payment. I am wondering if it is true that the car dealerships won't let you get a loan under $7000.00? I have a little cash to put towards the new car. Any info helpful

Answer 1

Mamma, let's get out the calculator, OK? You have a 3 year old car right? 30k /3=10k per year 10k/17mpg=588X$4 per gallon= $2352 fuel cost per year. You have no payment!

If you buy a fuel efficient car today, you will be paying a premium to buy, and selling at loss on you trade. You lose twice.

A ten thousand dollar loan over 60 months will cost you around $200 month give or take. $200 x 12 = $2400, or just about what you are paying for fuel.

Enjoy your pony car in peace!

Answer 2

Most banks want you to finance for $7000 and above, however we have banks that will finance as low as $5000.  Some brands offer you extra money to finance with them, but you have to finance $7000 or more. The biggest thing you have to look at is if there is any prepayment penalties. General rule of thumb is $20/$1000 financed at 60 months.

Answer 3

Using google to find some related info or you could try using answer engines such as yahoo answer or yedda.com to obtain some useful ideas.however,If you want some direct infomation,here is a nice one from my experience.http://car-loan.online-frees.info/approv...

Answer 4

Most banks have a minimun finance amount of $7500.00. however if the dealership works with the bank they should be able to get you a loan for less than $7500. Keep in mind that most loan compaines do not make any money on loans under 5000.

Answer 5

Truth be told, the amount you would save on gas is not going to offset the amount youre going to loose on the trade in.  A dealership is going to rape you on the trade in.  Lets say your car is worth $15,000, the dealer will likely offer you something like $11,000 for the trade in if youre lucky.  thats about 1000 gallons of gas youre losing, on top of the fact that now youre going to have to have a payment every month that you didnt have before.  Lets say the payment is only $100 thats still another $1200 a year or 300 gallons of gas.  So in the first year were already talking about a net loss of $5200 and I still haven't factored in the depreciation on the new car!!!  

Do yourself a favor, do the simple math that fits your situation, and dont listen to the dealerships, or people who think that their prius's are the greatest thing since butter met bread.  Youre better off just keeping the mustang.  Bouncing from one car to the next is a sure fire way to lose money even if your car doesnt get the best of mileage.

Oh, and to "Blake w", sorry you disagree with my choice of words but the reality doesn't change.  You will be getting a BAD DEAL by trading in a perfectly good car thats paid for JUST to save on mpg.  It can be argued that even most people still making payments would be better off keeping their car.  The real idiots are the ones who are pouring into the showroom to buy fuel sippers and getting a BAD DEAL on their trade-in because the dealer doesn't give a **** if the customer looses out after its all said and done as long as they make a sale and move cars.

Oh and by the way here is one of the definitions of rape in the dictionary.

Dictionary.com Unabridged

rape

verb, rap·ing

3. Abusive or improper treatment; violation  

I would say taking advantage of someones ignorance would be abusive or improper treatment wouldn't you?

And I dont know what your allegiance to the dealerships is, that would make you get heated about something as innocuous as what I said, but I'm going to assume you work for one, and youre probably a struggling salesman or something of that ilk.  Maybe you should get out of your industry instead of crying about it on the internet.  Just a piece of advice :)  Have a nice day!

Answer 6

I f your credit rating is good, you can get any loan amount you want. be it 2000.00 or 20,000.00. figure roughly 100.00 per month per 5000.00. therefore 10,000.00 would be about 200.00 per month.

The Toyota Prius is rated at almost 50mpg. And you can get a well loaded one for about 23 grand. Take into consideration your trade value and you could get a nice low payment and save a ton of money on gas as well.

Goodluck.

Answer 7

This is really in response to the idiot saying "the dealership will rape you".  I am so sick and tired of people making dealers out to be evil.  First of all, if anyone reading this recieves a paycheck, it comes from some sort of profit you company makes. Is your company evil?  Believe it or not, right now with the economy in the toilet, most dealers are barley getting buy.  Of course your not going to get book on a car that gets 17 mpg because no one wants them right now.  Its called supply and demand.   Most of you will pay more profit to wal-mart this month than you will on you car payment.  I never hear anyone ***** about that.  You never get what the book says its worth on trade because no one buys them for what the book says they are worth on the retail side.  Cars are a negotiable purchase which means no values are set in stone.  In order to have values set, everybody start paying sticker.  I didnt think so.

to Rocky Mountain.  How is offering a person the true market value on a vehicle that is not in demand abusive treatment.  I know there are some bad dealers and sales people, but that doesnt make us all bad.  I just dont like stereotyping like that.  Thats like saying all engineers are socially stunted nerds or all g*y people are devients. Niether of these statemernts are true.  If a person would just be upfront and honest with sales people, the experience of buying would not be so bad.  As to your guess of my being a salesman you are right, I have been in the business for 12 years and I am sucsessfull thanks to my experience, integrity, and a strong local economy that is a little insulated from alot of the woes around the country.  Im not trying to start a fight I just think you should really think before you say something.  I am proud of what I do and I give alot of time to my customers during their ownership so I expect to make a fair profit.  So many people do not realize how important my job is to this country.  Not many industries affect more people that the automotive business.  From banking, to manufacturing, suppliers, industrial refining and so forth.  

I'll answer any questions about this business honestly if asked.