Question

Please teach me (first time buyer who is completely clueless about the car buying process) some tips & must knows when looking into purchasing a new to me (used 2016 or newer) vehicle.  What’s a good APR on a vehicle? What websites should I look/shop at? Or should I go to a dealership and negotiate there? What car is worth investing in? - Honda? Toyota? Lexus? Looking into getting a 4-door sedan.  

Answer 1

Gap insurance (like everyone has suggested). I had a Lexus- great car but expensive repairs. I put 260k miles on it before it died though. I’ve had Fords ever since and will never switch tbh. A fusion and then an escape- awesome cars. Don’t let them show you something out of your price range. Also, I had one key feature (back up camera) that was a must for me, and other than that, I bought the base model because I did not need the bells and whistles. I also bought an undesirable color, that I really liked, and got a lot of money off of it because they were having trouble moving it from the lot.  

Comments

@odie4 I have a black/white back up camera on my Rogue; my daughter’s Ford has a larger screen and in color! My next suv will be a Ford!  

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@hackberry I honest to god love my fords. Even though I started with a luxury vehicle (courtesy of a dad whose job had a discount program), I’d never switch back.  

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@odie4 they have improved!  

Answer 2

Right now the average car APR is running at 4. 75 percent. That’s on buying new. Buying used might increase that some depending on your credit. If you can get lower that’s awesome. Honda, Toyota and Nissan are great brands and all reliable. If you are comfortable negotiating then I’d head to a dealership and get the best price you can. Places like Carmax are reputable used dealerships but the prices are set and no negotiating can take place.  

Answer 3

I used to work at a toyota in sales for 8 years! I’d say if you can get a pre approval through your credit union/bank, they do offer gap (recommend) cheaper than the dealer, however if you have time (and financing with the dealers bank) you can negotiate that down to the same price. Cars I recommend would be Toyota, Honda, Lexus, Acura. Toyota does offer 2 yrs or 25k miles complimentary maintenance on all new cars. If buying use make sure to look at carfax but also the condition of the car, doors etc. not everything is reported to carfax  check for vin numbers on all doors/hood/trunk, this will let you know if it replaced. A lot of dealers offer a 90 day warranty which is good. I recommend buying extended warranty however only from the brand not a third party. Be careful bc the dealer does offer third party which is honestly . Hope this helps!  

Comments

@guardhouse what’s gap?  

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@spiegel Gap insurance is an optional, add-on car insurance coverage that can help certain drivers cover the “gap” between the amount they owe on their car and the car's actual cash value (ACV) in the event of an accident.  

Answer 4

Also you will save time shopping online/sending an inquiry and avoid unnecessary time spent at the dealer.  

Answer 5

Use NADA when you’re looking up values. That’s what banks use.  

Answer 6

Consider buying a new Hyundai or Kia. The price for new cars is comparable to used of some if the other brands you listed, you get a 5 year or 60, 000 miles bumper to bumper warranty and they are highly rated by consumer reports. The new large SUV they came out with, the KIA version was named SUV vehicle of the year. In the early, early years people questioned their quality but if you do research, almost all of their new cars come highly rated. I only ever bought Hyundai’s until my current husband. I bought new & ran them hard & never had an issue. There’s nothing wrong with buying used, but if you can buy new for the same price & get all the warranties, it can make it cheaper in the long run because you won’t have to deal with repairs & things for a longer time period.  

Answer 7

Following. I have to get a new car come March. I'm paying off as much debt to get my credit up. I'm leaning towards a private loan.  

Answer 8

A few years ago we got a new Prius for my husband and have been very happy with it. Because gas prices are lower than years past, the demand was low and we got a great deal. only 2k more than a 3 year old used Prius. Our rate was 3. 5. Shop around for rates before going to the dealership, although the dealership actually offered us the best rate this time. The prius gets around 50 mpg, and we have had zero problems!  

Comments

Oh, and it was the same cost as a civic and cheaper than an accord, with really nice features and interior!  

Answer 9

With great credit, no higher than 2%. With good credit, no higher than 5ish%. Sorry, this was with new vehicles. Used vehicles will be higher rates and you’ll likely pay more than a car is worth. Buy at the end of the month Toyotas hold their value and are reliable. My husband has a Camry and I have a Rav4. We were a Honda family before and definitely prefer Toyota. Look at KBB. com and Edmunds. com and find out what people around you are paying. Or just go into the dealership and offer $500 over invoice. This last piece is also on new vehicles.  

Answer 10

Subaru, on the road forever, excellent service.  

Answer 11

Buy Gap

Answer 12

My dad is a Mechanic and he swears by Honda and Toyota. Lexus is Totota’s premium line but he says maintenace will be double if not triple on a Lexus plus higher insurance. As for the buying process dealers are almost always negotiable. Know that it is not just the price of the car and interest rates, but dealer fees. Some charge over $1000! (These fees are usually negotiable too). What I do when I buy a car is once I have narrowed down the year/make/model, I check KBB for pricing then, online I search the area for going rates, dealer fees etc. I write down what I want for the car, a payment, and the terms (years/interest). When I go to the dealer I look at the car and then hand that paper to the sales person and say I am interested in buying, if your sales manager can agree we have a deal. Otherwise, I will not waste your time or mine. In 2018, I purchased a 2017 GMC Terrain that was on the lot for 22, 500 for 20, 000, out the door. And I was in and out in less then an hour.  

Answer 13

Honda or Toyota will last forever. Credit Unions usually have cheaper rates than banks. Look at carguru. com. It will tell you if the car is a great deal, good deal, poor deal, etc.  

Answer 14

You really can go wrong with either. My son has a 2005 Corolla, it has over 300, 000 miles and it is in FANTASTIC mechanical shape.  

Answer 15

I will caution against Chevy vehicles. My brother has had checks for the last ten years and they FREQUENTLY have recalls. He bought one less than two years ago and has already had two recalls on it.  

Answer 16

We were a die hard ford family. I had an edge that I loved, but I have to get to work in ice/snow so I decided to get a 4-runner. I got a Toyota because they hold their value much better. Also, when my oldest daughter turned 16, we bought a Ford Escape that was 2 years old. When my youngest turned 16, she wanted a truck. The more we researched we discovered that buying a new(bottom of the line) Tacoma only cost us a few thousand more than that used ford and we have warranties and free maintenance for two years.  

Answer 17

We always try to get our financing from the credit union, not the dealer. It is not necessary to buy all the add ons they try to pressure you into. They make huge commission on those add ons. I would research GAP insurance. We buy cars all the time and have only purchased GAP insurance once. That was the 1 time we purchased a car new. That is because the depreciate as soon as you drive off the lot. I wouldn’t think it would be necessary on a used car, especially if you’re not over paying for it. Don’t be afraid to look outside your area. My husband drove 3 hours to get my last car because in our area used cars are way over priced. It saved us over $5000. He also went an hour before they closed. It was the fastest smoothest purchase he’d ever made because they didn’t mess around. They all wanted to go home!  

Answer 18

If you buy a brand new vehicle you should always push for 0% APR. As for used vehicle depending on your credit you can typically get a loan with the APR anywhere from 2-8%. I personally wouldn’t go any higher than 8%. For cars check out the Camrys and Corolla they seem like good cars! Always research the vehicle before hand!  

Answer 19

I went to dealerships and found the car I liked. Then I went to this site to look for the same car but slightly used. I paid thousands less for only 3, 000 miles on my Honda. I searched the base model which also saved thousands. This site will find your car at the best price. Believe it or not my barely used car came from a Lexus dealer (was a trade in) and they even drive it to my house and we signed papers in my kitchen! It was spotless and certified. Best decision ever. Use this site. No haggling and stress free.  
https://cars.usnews.com/cars-trucks...-cars

Answer 20

Honda and Toyota hold their value and are very reliable I had a 1998 Honda accord with tons of miles over 200, 000 miles and it was great

Answer 21

I have a mechanic father in law who prefers Honda and Toyota! I’d go with a Honda Accord. They also hold value well and are east to resell. Last year I sold my 2006 Civic with 230, 000 miles very quickly! Our current APR for our Explorer is 3%.  

Answer 22

Please do not buy a chevy traverse or gmc acadia . They have transmission problems. And dealers know about it too. I had to replace my transmission it was 3, 000 and they told me after it happens once it can continue happening

Comments

I second this. I currently have a 2012 GMC Acadia and my torque converter went out not even a month after I bought it and now my catalytic converter is throwing a code.  so frustrating.  

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@kowtko agree! My traverse was a hot mess

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@superimposed yes i have to constantly be fixing something

Answer 23

I have a 2009 Honda Accord and I love it! Very reliable and great on gas

Answer 24

Honda and Toyota are affordable and will last forever. I am a big Lexus fan and have had two now. First one went 230k miles and was still running fine when I traded it in. Lexus is owned by Toyota so it’s the only luxury car company I can justify since the maintenance isn’t as expensive as other luxury vehicles. I really like TrueCar. com for shopping online before going to a dealership so I know exactly what I’m looking for. They also often have special online pricing. Know your budget and don’t go over for it. Negotiate for sure! Car salesmen are the worst so if they say the can’t give you a certain price, just tell them okay and walk away. Give it a couple of days and you will get a call 99% of the time. My dad is GREAT at negotiating and he always just says, be ready to walk away. Don’t become so attached to a car and rush it. Do you know anyone who could go with you who has been through the process before. If you can, try shopping for a car you like online, then go to your bank or a local credit union (usually credit unions have the best interest rates) and apply for your loan through them before going. Dealerships run your credit through 10+ major banks who all have pretty high interest rates usually. It’s much better to do all the work before you go. That way you also have more leverage because you’re approved already for a certain amount.  

Answer 25

Know your budget and how much you are willing your monthly payments to be. Go to a credit union to get Pre approved ahead of time. They usually have a lower interest rate and this way your credit doesn’t get ran a ridiculous amount of time by the dealerships finance people. Then you can approach a dealer and tell them what car you want and what you are willing to pay. That made our last car buying experience a little easier. Good Luck!  

Answer 26

Research the crap out of any vehicle you consider. Especially if the dealership is promising to add or change something for you. We bought a 2018 Tacoma SR5 and our salesman told us he was going to get us a new key fob for keyless entry. We brought the truck back a couple weeks later to get it done and the SR5s don’t have the technology compatible with keyless entry. And he never got the paperwork signed so it was null and void. So just make sure you know the ins and outs of the vehicle because the salesman doesn’t.  

Answer 27

Foreign cars tend to last - Toyota, Honda If they offer GAP coverage, it could be worth getting (covers loan if total loss happens and insurance doesn't cover full amount (insurance may cover cost of vehicle but likely not the financing and taxes that the loan would have) Potentially look at a LOC at your bank vs a car loan, usually the interest rate will be less and obviously less terms and conditions that way (if you're able to get one) Watch finance and interest percent

Answer 28

Stick to Honda or Toyota for reliability and be prepared to walk out even if you absolutely love the car. It’s best to negotiate price via email so you just go in and sign. The interest rate is dependent on your credit score, but I always recommend trying to go through a credit union. If you get preapproved you have one less thing the dealership can rip you off on. Do your research on the cars you like and have an idea of the price so you don’t overpay. I negotiate for a living so I LOVE buying cars cuz I know their tricks, but for most people they get caught up in the excitement and ripped off.  

Answer 29

Honestly I love Chevy & Kia. The newser Kia Optima are gorgeous. However, definitely try and use a credit union for financing, always get GAP, and I never buy same day. I always leave and go home to really think about it.  

Answer 30

I am a big fan of Toyota. My moms sequoia had almost 300K miles on it when she sold it. My husband drives a Camry and I drive a highlander and it’s been wonderful.  

Comments

@helot we got lucky and found a used one fully loaded for under 30K. It has the bucket seats in the middle row and with a house fully of boys it’s saving my seats lol.  

Answer 31

Honda’s and Toyota’s are very reliable vehicles. They hold their value well and last forever. We still have my first car I ever bought which is a 2003 Honda Accord and it’s still going strong. My brother has his 2007 Accord and it’s going strong too and my brother in law has is ‘98 Accord. Even if you buy used these cars are very dependable. My sister in law still has her I believe either ‘04 or ‘05 Toyota Tundra and they used to have a 4 runner for many years.  

Comments

@crew865 Hondas in good condition have good re-sale value.  

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@crew865 same with Mazda! I was always Honda and I’m so impressed with my cx5

Answer 32

I suggest Toyota too

Answer 33

Make sure you get the gap insurance so if you get loan insurance will pay the difference between it and blue book price

Comments

@arzola yes! My husband got rear-ended which totaled our car and our gap insurance covered us!  

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@insociablea Taylor yes us to I later found out our car was worth more than adjuster said too. It was salesman that told us no matter what gap insurance God bless that honest man

Answer 34

Get your own financing first

Answer 35

First of all get pre-approved so you know what you can work with. Tell the dealership your pre-approved for a smaller amount otherwise they typically attempt to max out your approval rate. DEFINITELY get gap insurance, but shop around the one through the dealership is 9 times out of 10 overpriced. and typically if you get it from the financial institution you get the car loan through they will cut you a deal on your rate. for example the one I work at GAP is $595 and gets you an additional . 20% off the apr. as far as interest rates go for a 2016 or newer and as long as your credit is in good standing they should not give you more than 4. 5. Also, you can tend to work that if you go through the dealership, and re-fi with another Financial Institution you might be able to get away with no payments for a longer period of time. If you have further questions, feel free to message me directly :)

Answer 36

The amount of knowledge I just received from this group has me at an awe! Thank you all so much❣️ Now I have a few more questions: Where can I look to get pre-approved? From the little I had read about cars before this - I came to an understanding that a low mileage, used vehicle is the best option due to depreciation. Am I correct? I would love a new vehicle but not if it’s not a good investment long term.  

Comments

@rienzi your bank or a credit union.  

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@rienzi I personally never buy someone else’s problems. New cars also have lower interest rates.  

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@rienzi go to your local credit union. Their rates are always the lowest! New vehicles are only good if u keep it forever. I favor a low mileage, reliable car like a Toyota Camry or Toyota Corolla.  

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@rienzi new cars are never good. Even Dave Ramsey agrees. You should really read his book. The moment you drive a brand new car off the lot it depreciates by $6, 000. It’s not worth it. Unless you can pay cash for it never buy a brand new car.  

Answer 37

I stand behind Honda 100%

Answer 38

I'm driving a Toyota with 200, 000 miles on it.  

Answer 39

I went with my grandson and his girlfriend while SHE negotiated for a used truck for him. They knew what he wanted and looked online on every car dealer within about 100 miles for that particular make and model of truck. She saw what they were selling for, so she went into the dealership armed with appropriate prices AND pics/web info on all the vehicles she'd researched. Of course when they got to the dealership, all those trucks had stickers that were about $ 5000 MORE than the ones online. When it came to negotiating with the salesman, she showed him some of the online trucks and prices. He, of course, said THEIR TRUCKS were "better" than the ones being sold by the other dealers. She said "nonsense" and offered the price she'd seen online. He gasped as if she had just tossed acid in his face! BUT he sat there and tried the "well, I'll see what we can do" routine. He threw out a few prices here and there. none within her acceptable range. He finally looked at her and said, "Why don't you just make me an offer? " She didn't blink. just said "I DID make you an offer. 45 minutes ago! " He started stammering, but said he could NEVER meet that price, so she stood up and said "thank you for your time! " and we walked out of the dealership. Before we got to our car, the salesman was chasing after us waving some paperwork. he had "forgotten" about some glitch and could now, of course, offer her the truck at the price she'd offered in the beginning. $4, 500 less than the sticker price. It all began and ended with her doing her research, setting an acceptable price, and not being so over-anxious to actually get a truck that day that she was willing to accept his over-inflated rebuttal. I guess you've just gotta set a budget and have enough resolve to stick with it. (I told my grandson his girlfriend was a KEEPER! )

Answer 40

I have a Toyota Highlander has 130, 000 for a 2014 ( 2 kids play travel sports) never had an issue. Love it! We are looking to get an older 4runner for my son in November.  

Answer 41

Like 4 percent would be my max on interest rate and I started at 29. 9! Lol that’s how bad my life was lolol

Answer 42

I like to watch these videos too:  
https://www.youtube.com/watch?v=l6W...jb8cY

Answer 43

I have a 99 Toyota Camry and it's still going strong I've only in the last year had to put any money in it other than basic maintenance. I will forever be a Toyota girl

Answer 44

Outside financing. Easiest car I ever bought.  

Answer 45

Subaru is a good car brand to consider. We have a Subaru Outback and love it, my sister used to have a Subaru Forester she drove into the ground. Thor sedans last forever too I hear. Plus a lot of features come standard like awd. Also consider hybrids because they will save you a ton in gas $$. We bought a Chevy volt in July, with a 50 mile battery meaning we never spend a drop of gas commuting to work! I really love the car!  

Answer 46

Look at Auto trader there a app I shopped around for a month I got my Ford Focus car at a great price and I love the gas mileage