Hey guys please give me your opinion

[Hamilton63]

Hello everyone, my name Hamilton and I'm glad I found this Forum. I hope you guys can help me out. I hate when I have to deal with anything that I have no experience with so, I hope you guys can help me out. I used to own a Ford Windstar 99 in very poor condition. Last Sunday I went to a dealer to see if I could buy something I could afford, my budget was $15,000.00. The first dealer told me that I created an imaginary world in my mind thinking that I could get a Japanese car for $15,000.00 with low miles. He offered me a Toyota Sienna 2008 with 25,000 miles for $20,000.00. That was the only car I liked but, I didn't like the price tag so, I refused his offered and walked away. Awhile I was at the dealer another dealer called me and asked me if I could drop by to see what he had. I told him that if he didn't have anything around $15,000.00 I was not interested. He asked to come by anyway and he would do his best to get me a good deal. When I went to the parking lot I saw at least 10 cars that I liked but, the price didn't make me happy at all, they all cost at least $20,000.00. I told him that I like the cars but, I didn't like the price. He told me not to worry about the price that he was going to ask his manager to get me a good deal. He took me to his office to meet his manager and to negotiate the price of the car, a Honda Odissey 2006 with 24,000 miles. The manager asked me if I would be interested in a Toyota Sienna LE 2006 with 13,000 miles, I immediately said yes but, I told him that I could not spend a lot of money in car. He asked me to see the car to make sure I like and told his salesman to take me for a drive. I loved the car inside out but, the $20,000 price tag didn't make me happy at all. The manager offered me the car for $16,700.00 if I trade in my old car. I accepted the offer, and put down $8,000.00 and financed the rest. At the last minute I changed my mind asked to cancel the deal. The manager asked what was the problem and I explained to him that although the price was good I didn't really wanted to spend more than $15,000.00 on a car. He took me to his office and made me another offer of $15,380.00, full insurance bump to bump and in case the car is stolen I would not be responsible to pay for the remaining balance. I took the deal and financed the car for 5 years. I gave him $8,000.00 and for the next 5 years I'll pay $250.00 a month for the car. The car is in excellent condition and Carfax report shows that the car is clean of any accident. My question is: Do you think this was a good deal? Here are some pics of the car:

[jdmccright]

Well, the negotiated price seems very reasonable. NADA price guide for clean retail on your car with reasonable options and what I could see from the pics list it at around $20k. What I see wrong is letting the dealer finance it for you...that's where they make their money.

You put $8k down and financed the rest...I'll presume you included tax, title, and reg as well...so $15,380 swells to ~$16,400 assuming a 5% tax and $250 in fees. $8k down results in $8,400 financed.

Now, I don't know your credit situation or scores, but you SHOULD know this BEFORE you let them tell you...they can easily say you have "blips" or "some issues" that typically prevent you from getting their best advertised rate. That loan over 5 years and a typical bank auto loan rate of 6% would result in a $163 payment...WAY more than you're paying. For a payment of $250 a month on that amount, you are being charged nearly 26%! THIS IS A COMMON TACTIC USED BY DEALERS to give the appearance of a great deal.

My advice to you is to go to your bank and apply for an auto loan STAT. If you haven't been approved yet, tell them to stop and that you will finance it on your own...they may balk, but these guys are out to get you, so I would consider it no big loss if you never have to deal with them again.

If you have already signed the financing agreement and it has been approved, then I would also look carefully to see if there is a pre-payment penalty clause. If so, then you'll have to add that amount to the loan, but you should still be able to borrow up to the car's value, which you aren't going to need, AND you'll be paying alot less each month.

Sorry to be the bearer of bad news, but I hope this helps!