Pulling the trigger tomorrow...need help though!

[Jeep24MA]

You don't have to pay cash to negotiate on the purchase price, which I think was the point @dcmdon was trying to make.

You should know the financing terms before you speak to financing, and even then those terms are the terms that you walked in with. The last two cars I purchased I did a whole spreadsheet for this. Here is an example from the Honda Pilot Elite we just purchased for my wife:

The bottom row represents the deal as it happened. We talked the price of this car down from an MSRP of $49.8K to $45.6K, and knew before we even talked ot finance that our monthly payment would be $552/month.

Agreed. I don’t negotiate as a “payment buyer” as he suggested. I negotiate final selling price. Last car I leased for 3 years and then purchased and paid off in 3 years. Hated to do it for 6 years, but had to at the same. I never talk to dealers in terms of monthly payments. That’s suicide. I talk final selling price and lowest rates/terms. Or then I go to my credit union.

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[dcmdon]

Once you agree on a final selling price, you then start negotiating on the finance rate.

I always approach the dealer with the perspective that if they can match what I can get at my local bank or credit union, I will give them the finance business.

The lasst car we financed we went in expecting to pay cash. My credit union was doing 2.75% (or about that much) for 48 months. So it didn't make sense to pay cash. The dealer matched it, so I financed with the dealer.

Dealers make money on financing 2 ways.
1) by bumping the interest rate. Their buy rate may be 2.5%. If they can sell the loan at 2.75% they make money.
2) they are paid a flat fee for originating the loan. So even if they sell it at the buy rate, they still make something in the ~$500 range for originating the loan.

I'm happy to help the dealer make money if it doesn't come out of my pocket. So will always finance with them if they can match or beat other sources of funds and if the terms are the same. (no pre-payment penalty or gap insurance requirement, for example)

And if any source of funds costs less than I am earning on investments, then I'll finance rather than pay cash. (Which is how its been for our last 3 cars)

 

[dcmdon]

Agreed. I don’t negotiate as a “payment buyer” as he suggested. I negotiate final selling price. Last car I leased for 3 years and then purchased and paid off in 3 years. Hated to do it for 6 years, but had to at the same. I never talk to dealers in terms of monthly payments. That’s suicide. I talk final selling price and lowest rates/terms. Or then I go to my credit union.

Your strategy of leasing then buying may have been a great strategy. Its not uncommon for subisidized leases to have ridiculously low internal interest rates. And if the residual value / buy out is reasonable, you may get a great deal by leasing then buying.

Ask the F&I manager what the money factor is on the lease. The money factor x 2400 equals the interest rate.

 

[AverageDad]

Sounds like the Sport S has everything you need/want. I’d go with it and then get the tires you want.
I just bought an Overland because it had everything I wanted (mostly for commuting but fun and capable on the weekends). But I also plan to lose the all-season rubber and maybe the wheels very soon.

 

[Trauma PA]

Agreed. I don’t negotiate as a “payment buyer” as he suggested. I negotiate final selling price. Last car I leased for 3 years and then purchased and paid off in 3 years. Hated to do it for 6 years, but had to at the same. I never talk to dealers in terms of monthly payments. That’s suicide. I talk final selling price and lowest rates/terms. Or then I go to my credit union.

So did you pull the trigger?

 

[Trauma PA]

So did you pull the trigger?

I guess @Jeep24MA didn't pull the trigger after all. Maybe he's waiting on the Bronco

 

[Jeep24MA]

I guess @Jeep24MA didn't pull the trigger after all. Maybe he's waiting on the Bronco

Haha. I’m a hot mess over here! I went in to leave a deposit and what rolls in? Literally off the truck. A black on black Overland with the color matched hard top. Looked awesome! All I’d have to do is swap out the tires. So now an indecisive person by nature has 3 options!! I think I’m ruling out the Willys though. I’d have to replace the mud tires, I’d swap the rock rails for running boards and I don’t off-road much since New England doesn’t seem to have much for trails that I know of.

 

[Trauma PA]

Haha. I’m a hot mess over here! I went in to leave a deposit and what rolls in? Literally off the truck. A black on black Overland with the color matched hard top. Looked awesome! All I’d have to do is swap out the tires. So now an indecisive person by nature has 3 options!! I think I’m ruling out the Willys though. I’d have to replace the mud tires, I’d swap the rock rails for running boards and I don’t off-road much since New England doesn’t seem to have much for trails that I know of.

Haha! It's ok to be indecisive. Think long and hard before you pull the trigger. Get the truck that fits your needs best. My black Rubicon JT looked awesome before I took it off the lot too but the 6 months I owned it was miserable trying to keep it looking clean. I envy those people who can persevere with owning a black vehicle. They sure do look great the day you detail it. Good luck with your decision. It's always good to have options.

 

[Jeep24MA]

Haha! It's ok to be indecisive. Think long and hard before you pull the trigger. Get the truck that fits your needs best. My black Rubicon JT looked awesome before I took it off the lot too but the 6 months I owned it was miserable trying to keep it looking clean. I envy those people who can persevere with owning a black vehicle. They sure do look great the day you detail it. Good luck with your decision. It's always good to have options.

That’s my only holdup! Black.

 

[MPMB]

That’s my only holdup! Black.

You can always wrap it. Wrap it some color that isn't available for the Gladiator but looks stock so people get pissed they can't get it.

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