About to buy a car. What am I forgetting?

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Clever_Username
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About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 8:20 pm

Hi all,

I am about to buy a car. I pretty much know what model I want. I have had my existing car for the better part of a decade and a half, bought it used, and it's about time to replace it. KBB $600 at the upper end, and I'm sure I'll spend more maintaining it in the next year if I don't replace it soon anyway. And the 2020 models have several features I want, including but not limited to safety features that didn't exist when I bought my current car.

I'm on vacation, about two hours drive from my home. I am somewhere I visit quite often, sometimes monthly. I have family in the area. The Mazda dealer near here has the car I want. Model, features, color. It's at a suggested price I'm fine with. I have test driven this model and a few others to help in coming to this decision.

I am thinking of going and buying it. It all feels like it's right. What am I forgetting?

Finances are fine. Cost of car is less than 1/5 of my annual income. I could pay for it directly (I'd need a few days to get the money from bond funds in taxable at Vanguard), and they have 0% financing available (for which I'm sure I'll qualify) which I'll debate doing.

I can't shake that I'm forgetting something.

Help?
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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ram
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Re: About to buy a car. What am I forgetting?

Post by ram » Sat Jun 27, 2020 8:23 pm

I did not do anything more than this when I bought the last car.
Ram

Gill
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Re: About to buy a car. What am I forgetting?

Post by Gill » Sat Jun 27, 2020 8:26 pm

You’re forgetting that you should be able to buy it for less that the “suggested price”.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

mortfree
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Re: About to buy a car. What am I forgetting?

Post by mortfree » Sat Jun 27, 2020 8:28 pm

Email the dealership and specify that exact vehicle by their stock number.

Tell them you will do the 0% financing and ask what price they can give you. Finalize that before going in. Pretend you aren’t happy with the current price. Find out the out the door price if possible

Bring the title of your vehicle with you if trading it in. Clear the car out before you go to the dealership. Maybe contact your car insurance ahead of time because you will have the VIN.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 8:32 pm

ram wrote:
Sat Jun 27, 2020 8:23 pm
I did not do anything more than this when I bought the last car.
Awesome, thank you.
Gill wrote:
Sat Jun 27, 2020 8:26 pm
You’re forgetting that you should be able to buy it for less that the “suggested price”.
Gill
Good point. I forget that cars aren't purchased like other things. Thanks!
mortfree wrote:
Sat Jun 27, 2020 8:28 pm
Email the dealership and specify that exact vehicle by their stock number.

Tell them you will do the 0% financing and ask what price they can give you. Finalize that before going in. Pretend you aren’t happy with the current price. Find out the out the door price if possible

Bring the title of your vehicle with you if trading it in. Clear the car out before you go to the dealership. Maybe contact your car insurance ahead of time because you will have the VIN.
Good point, "Out the door price" is important. I want to know exactly what I'm paying before I sign and agree and then surprise, there's more.

What would contacting my insurance get me for the new purchase?

Thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by mortfree » Sat Jun 27, 2020 8:35 pm

Just being proactive on the insurance and you can see what the difference is to insure the new vehicle.

I usually email the new vehicle info to my insurance while I’m waiting at the dealer when they are prepping the car after we’ve made the deal.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 8:36 pm

mortfree wrote:
Sat Jun 27, 2020 8:35 pm
Just being proactive on the insurance and you can see what the difference is to insure the new vehicle.

I usually email the new vehicle info to my insurance while I’m waiting at the dealer when they are prepping the car after we’ve made the deal.
That sounds great, thanks.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by Bobby206 » Sat Jun 27, 2020 8:41 pm

Last time I bought (just a year or two ago) I emailed 3 dealers that had the car (in fact a Mazda) that I wanted. The online salesperson got back to me within 20 minutes and gave me quotes. I went to my local dealer, asked for their best deal, they were $1,000 above my best email price, I told them of deal I was offered and we quickly agreed at about $250 above the dealer a half hour a way. Was super easy and I got the car I wanted at the dealer I wanted for a price that I felt was fair. Not my best piece of negotiating ever but I didn't have time to waste.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 8:49 pm

Bobby206 wrote:
Sat Jun 27, 2020 8:41 pm
Last time I bought (just a year or two ago) I emailed 3 dealers that had the car (in fact a Mazda) that I wanted. The online salesperson got back to me within 20 minutes and gave me quotes. I went to my local dealer, asked for their best deal, they were $1,000 above my best email price, I told them of deal I was offered and we quickly agreed at about $250 above the dealer a half hour a way. Was super easy and I got the car I wanted at the dealer I wanted for a price that I felt was fair. Not my best piece of negotiating ever but I didn't have time to waste.
Interesting. I'm not sure how many there are within a believable distance, but that seems worth checking. Just the same, thanks, that sounds like a neat way to go about it.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by Watty » Sat Jun 27, 2020 8:54 pm

Replacing a 15+ year old car with one that has better safety features is a very reasonable choice since it sounds like it fits in your budget.
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm
I am thinking of going and buying it. It all feels like it's right. What am I forgetting?
Some states like California have different emission and warranty requirements so make sure that is not an issue for you if you are in a different state.

Buying a car in a different state then taking it home to a different state can also be tricky since you do not want to get stuck in a situation where you would be paying sales tax or registration fees in both states.

It is very doable but you need to make sure that it is done right and in some states the DMV offices may be closed or working very restricted hours because of the pandemic. That can complicate getting any glitches worked out.

Getting car insurance when you buy a car out of state may also be a bit more complicated so be sure to talk with your insurance company to make sure that is handled right. Get an insurance quote before you buy the car so you will not be surprised by how much the insurance will cost.

You also need to figure out what you will do with your old car since you likely do not have the car title with you if you were not planning on buying a car.
Gill wrote:
Sat Jun 27, 2020 8:26 pm
You’re forgetting that you should be able to buy it for less that the “suggested price”.
Gill
+1000

Most dealerships will have internet sales contact information on their web site. Send emails to a dozen Mazda dealerships saying exactly what you want except for the price and that you are ready to buy and ask them their best "out the door price". I have bought three new cars this way and about a third of the dealers just want you to come in, about a third will respond with a bad or mediocre price, but about a third will be willing to really deal and give good prices over the internet.

Here is a post that I did about two years ago when I bought a car this way.

viewtopic.php?f=11&t=239526&p=3746230

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 8:58 pm

Watty wrote:
Sat Jun 27, 2020 8:54 pm
Replacing a 15+ year old car with one that has better safety features is a very reasonable choice since it sounds like it fits in your budget.
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm
I am thinking of going and buying it. It all feels like it's right. What am I forgetting?
Some states like California have different emission and warranty requirements so make sure that is not an issue for you if you are in a different state.

Buying a car in a different state then taking it home to a different state can also be tricky since you do not want to get stuck in a situation where you would be paying sales tax or registration fees in both states.

It is very doable but you need to make sure that it is done right and in some states the DMV offices may be closed or working very restricted hours because of the pandemic. That can complicate getting any glitches worked out.

Getting car insurance when you buy a car out of state may also be a bit more complicated so be sure to talk with your insurance company to make sure that is handled right. Get an insurance quote before you buy the car so you will not be surprised by how much the insurance will cost.

You also need to figure out what you will do with your old car since you likely do not have the car title with you if you were not planning on buying a car.
Gill wrote:
Sat Jun 27, 2020 8:26 pm
You’re forgetting that you should be able to buy it for less that the “suggested price”.
Gill
+1000

Most dealerships will have internet sales contact information on their web site. Send emails to a dozen Mazda dealerships saying exactly what you want except for the price and that you are ready to buy and ask them their best "out the door price". I have bought three new cars this way and about a third of the dealers just want you to come in, about a third will respond with a bad or mediocre price, but about a third will be willing to really deal and give good prices over the internet.

Here is a post that I did about two years ago when I bought a car this way.

viewtopic.php?f=11&t=239526&p=3746230
Thanks for all the information! Yes, I am in California, so that's good. I wish I had thought to do this a few weeks ago, before I paid for a Smog check for my previous car, and also for the year's registration! Oh well.

I'll give that post a look, thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

runner3081
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Re: About to buy a car. What am I forgetting?

Post by runner3081 » Sat Jun 27, 2020 9:08 pm

Should be no insurance issues. Current plan will cover a new vehicle for a certain number of days, prior to needing to report it.

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Re: About to buy a car. What am I forgetting?

Post by lthenderson » Sat Jun 27, 2020 9:23 pm

Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm
I can't shake that I'm forgetting something.
I'm sure this could depend on the state but here you aren't allowed to drive it home until you show proof of insurance. I usually just call my insurance agent and tell them I'm in the process of looking for cars. They make a note in my file and then just tell me to send them the VIN after I'm home to make everything official. The dealer then calls to verify insurance and I drive it home.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 9:38 pm

runner3081 wrote:
Sat Jun 27, 2020 9:08 pm
Should be no insurance issues. Current plan will cover a new vehicle for a certain number of days, prior to needing to report it.
That's a relief, thanks!

lthenderson wrote:
Sat Jun 27, 2020 9:23 pm
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm
I can't shake that I'm forgetting something.
I'm sure this could depend on the state but here you aren't allowed to drive it home until you show proof of insurance. I usually just call my insurance agent and tell them I'm in the process of looking for cars. They make a note in my file and then just tell me to send them the VIN after I'm home to make everything official. The dealer then calls to verify insurance and I drive it home.
That seems like something worth knowing. I'll check on that. Thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by Watty » Sat Jun 27, 2020 9:42 pm

runner3081 wrote:
Sat Jun 27, 2020 9:08 pm
Should be no insurance issues. Current plan will cover a new vehicle for a certain number of days, prior to needing to report it.
The OP likely only has liability coverage on a car that is only worth $600. Most people would want collision and comprehensive on a new car.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 10:02 pm

Watty wrote:
Sat Jun 27, 2020 9:42 pm
runner3081 wrote:
Sat Jun 27, 2020 9:08 pm
Should be no insurance issues. Current plan will cover a new vehicle for a certain number of days, prior to needing to report it.
The OP likely only has liability coverage on a car that is only worth $600. Most people would want collision and comprehensive on a new car.
Yeah, I am going to need to step up my insurance coverage :-)
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

CurlyDave
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Re: About to buy a car. What am I forgetting?

Post by CurlyDave » Sat Jun 27, 2020 10:03 pm

Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm

...I'm on vacation, about two hours drive from my home...

I can't shake that I'm forgetting something.

Help?
While theoretically any dealer should service the car and handle warranty issues, my experience has been that the selling dealer is usually better and easier for warranty issues than a random dealer. After all, they made the profit on the original sale.

The best dealer is one near your work. To me, easily worth a little more money to get service close to work.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 10:08 pm

CurlyDave wrote:
Sat Jun 27, 2020 10:03 pm
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm

...I'm on vacation, about two hours drive from my home...

I can't shake that I'm forgetting something.

Help?
While theoretically any dealer should service the car and handle warranty issues, my experience has been that the selling dealer is usually better and easier for warranty issues than a random dealer. After all, they made the profit on the original sale.

The best dealer is one near your work. To me, easily worth a little more money to get service close to work.
I agree in general, and my previous car was regularly serviced where I bought it. However, this is somewhere I visit regularly (essentially a second home, albeit not where I actually own property). Still, I'll have to give this some thought. Thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by CurlyDave » Sat Jun 27, 2020 10:19 pm

Clever_Username wrote:
Sat Jun 27, 2020 10:08 pm
CurlyDave wrote:
Sat Jun 27, 2020 10:03 pm
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm

...I'm on vacation, about two hours drive from my home...

I can't shake that I'm forgetting something.

Help?
While theoretically any dealer should service the car and handle warranty issues, my experience has been that the selling dealer is usually better and easier for warranty issues than a random dealer. After all, they made the profit on the original sale.

The best dealer is one near your work. To me, easily worth a little more money to get service close to work.
I agree in general, and my previous car was regularly serviced where I bought it. However, this is somewhere I visit regularly (essentially a second home, albeit not where I actually own property). Still, I'll have to give this some thought. Thanks!
If you mostly visit on weekends, the service department is closed then.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sat Jun 27, 2020 10:23 pm

CurlyDave wrote:
Sat Jun 27, 2020 10:19 pm
Clever_Username wrote:
Sat Jun 27, 2020 10:08 pm
CurlyDave wrote:
Sat Jun 27, 2020 10:03 pm
Clever_Username wrote:
Sat Jun 27, 2020 8:20 pm

...I'm on vacation, about two hours drive from my home...

I can't shake that I'm forgetting something.

Help?
While theoretically any dealer should service the car and handle warranty issues, my experience has been that the selling dealer is usually better and easier for warranty issues than a random dealer. After all, they made the profit on the original sale.

The best dealer is one near your work. To me, easily worth a little more money to get service close to work.
I agree in general, and my previous car was regularly serviced where I bought it. However, this is somewhere I visit regularly (essentially a second home, albeit not where I actually own property). Still, I'll have to give this some thought. Thanks!
If you mostly visit on weekends, the service department is closed then.
That's a very good point. I need to find out when their service department is open. Thanks.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by Outer Marker » Sun Jun 28, 2020 4:28 am

Gill wrote:
Sat Jun 27, 2020 8:26 pm
You’re forgetting that you should be able to buy it for less that the “suggested price”.
Less, much less! In negotiating the price, it is critically important that you know the dealer cost and negotiate up from that number, not down from the sticker price, which is just fiction. Edmunds.com used to be great for this information, but they have gone from a consumer friendly site to an outlet for dealers. I believe there are now other services out there that will calculate this number for you for a small fee. (Its been a long time since I negotiated a new car. I drive them forever). It is very powerful to be sitting there with hard data in writing to present to the salesman when you do the dance at the dealership. A good deal would be 2-3% over dealer cost. Be sure to deduct any manufacture incentives or dealer "hold backs" from the dealer cost. A good pricing service should do this for you. Insist that any "documentation" or "dealer prep" fees be paid by them. That's pure profit for them. If they insist its a mandatory fee they can't waive, have them lower the purchase price to offset the fee. Negotiate with several dealers at once, and don't be afraid to walk multiple times. I've always been able to drive better bargains through in-person negotiating than through "no hassle" or "internet" pricing, but you have to be willing to put in the effort. Actually, its kinda fun!

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Re: About to buy a car. What am I forgetting?

Post by chipperd » Sun Jun 28, 2020 4:50 am

It's a boglheads post, so .... You bought a used car 15 years ago maybe due to this issue, or perhaps financially now you see this issue differently but...

A used car, on average, will depreciate about 25% in the first year and about 10% once you take ownership and drive it off the lot. You can plug in your numbers here (https://www.omnicalculator.com/finance/Car-depreciation) to see how depreciation impacts you situation over time.

Since all cars (unless they are in the collector realm) depreciate over time, it's really a question of how much you are willing to lose via cost of ownership (depreciation is but one factor in that metric) vs the quality of life the car will bring you and your family.

Best of luck to you!

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Re: About to buy a car. What am I forgetting?

Post by bob60014 » Sun Jun 28, 2020 5:41 am

"What am I forgetting?"

When you go in to talk to the finance person, just say no to the paint guard, locking lugs and the extended warranty!

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Re: About to buy a car. What am I forgetting?

Post by Mr. Rumples » Sun Jun 28, 2020 5:48 am

Set your price in your mind and be prepared to walk if you don't get it. Both of the last two vehicles I have had, the current one is 19 years old, I bought on the last day of the month. Not sure how true it is about sales folks having to reach their monthly quota. On the vehicle before this one, the Toyota, it was right before closing, around 9 p.m. on a Saturday and it was the last day of the month. I literally was leaving with my hand on the door when they met my price. On my current vehicle, I raised my credit card limit, charged it, got the points, and then paid off the credit card.

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Re: About to buy a car. What am I forgetting?

Post by hudson » Sun Jun 28, 2020 6:57 am

Clever_Username,
Consider reading through Denovo's discussion on buying a new car: viewtopic.php?t=124638

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Re: About to buy a car. What am I forgetting?

Post by Nowizard » Sun Jun 28, 2020 8:27 am

Two things: 1. It's not the price of the car, it's the bottom line; 2. Be certain and check the doc fee.
We have not purchased locally due to what is essentially the standard doc fee of $599, just raised in the past week to $699. Bordering states have doc fees either limited to a maximum of $129 or no limit but typically low (Last cars purchased were $129 and zero). Also, when inspecting "Fees" on a recent offer, they appeared high. When asked to specify, we were told that they added $380 for "Fob insurance because replacement of a Subaru fob is expensive." Walked and avoided the doc fee, the deception and found a dealer 160 miles away with zero doc and $1,000 more on trade. In other words, sometimes it is worth the drive to another dealer.

Tim

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Re: About to buy a car. What am I forgetting?

Post by bob60014 » Sun Jun 28, 2020 8:55 am

Nowizard wrote:
Sun Jun 28, 2020 8:27 am
....When asked to specify, we were told that they added $380 for "Fob insurance because replacement of a Subaru fob is expensive." ....
Now that's a new one!

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sun Jun 28, 2020 9:59 am

chipperd wrote:
Sun Jun 28, 2020 4:50 am
It's a boglheads post, so .... You bought a used car 15 years ago maybe due to this issue, or perhaps financially now you see this issue differently but...

A used car, on average, will depreciate about 25% in the first year and about 10% once you take ownership and drive it off the lot. You can plug in your numbers here (https://www.omnicalculator.com/finance/Car-depreciation) to see how depreciation impacts you situation over time.

Since all cars (unless they are in the collector realm) depreciate over time, it's really a question of how much you are willing to lose via cost of ownership (depreciation is but one factor in that metric) vs the quality of life the car will bring you and your family.

Best of luck to you!
I bought my previous one less than two years into graduate school. What I could afford, with what little I knew about cars, dictated it. Also, my understanding is that used cars these days aren't much cheaper than new ones, and it is my intention to drive this one (however I acquire it) for 10-15 years, so I'm a lot less worried about deprecation.

Thank you for bringing this up. I haven't really investigated a lot about used cars.
bob60014 wrote:
Sun Jun 28, 2020 5:41 am
"What am I forgetting?"

When you go in to talk to the finance person, just say no to the paint guard, locking lugs and the extended warranty!
Correct, and thank you. I know about the first and third, I'm not sure what the second is, but it might be related to headlight fluid.
Mr. Rumples wrote:
Sun Jun 28, 2020 5:48 am
Set your price in your mind and be prepared to walk if you don't get it. Both of the last two vehicles I have had, the current one is 19 years old, I bought on the last day of the month. Not sure how true it is about sales folks having to reach their monthly quota. On the vehicle before this one, the Toyota, it was right before closing, around 9 p.m. on a Saturday and it was the last day of the month. I literally was leaving with my hand on the door when they met my price. On my current vehicle, I raised my credit card limit, charged it, got the points, and then paid off the credit card.
Thank you, very good advice. I do have a maximum in mind I'm willing to pay.
hudson wrote:
Sun Jun 28, 2020 6:57 am
Clever_Username,
Consider reading through Denovo's discussion on buying a new car: viewtopic.php?t=124638
That was quite the read, thank you for linking it!
Nowizard wrote:
Sun Jun 28, 2020 8:27 am
Two things: 1. It's not the price of the car, it's the bottom line; 2. Be certain and check the doc fee.
We have not purchased locally due to what is essentially the standard doc fee of $599, just raised in the past week to $699. Bordering states have doc fees either limited to a maximum of $129 or no limit but typically low (Last cars purchased were $129 and zero). Also, when inspecting "Fees" on a recent offer, they appeared high. When asked to specify, we were told that they added $380 for "Fob insurance because replacement of a Subaru fob is expensive." Walked and avoided the doc fee, the deception and found a dealer 160 miles away with zero doc and $1,000 more on trade. In other words, sometimes it is worth the drive to another dealer.

Tim
Good point, thank you. I plan to be thinking total price of the car; how they itemize that isn't something I'm planning to concern myself with.

Trading in my car that has KBB of maybe $600 isn't likely to happen. I am thinking I will instead donate it to a charity. I figure the difference in pocket (tax deduction, right?) is going to be similar for me for what they'd likely pay, without the hassle of a private party sale.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by bob60014 » Sun Jun 28, 2020 10:54 am

bob60014 wrote:
Sun Jun 28, 2020 5:41 am
"What am I forgetting?"

When you go in to talk to the finance person, just say no to the paint guard, locking lugs and the extended warranty!
Correct, and thank you. I know about the first and third, I'm not sure what the second is, but it might be related to headlight fluid.
[/quote]

Locking lugs nuts. I'll add any other pure profit add ons. Good luck!

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Re: About to buy a car. What am I forgetting?

Post by Watty » Sun Jun 28, 2020 10:56 am

Clever_Username wrote:
Sun Jun 28, 2020 9:59 am
Trading in my car that has KBB of maybe $600 isn't likely to happen. I am thinking I will instead donate it to a charity. I figure the difference in pocket (tax deduction, right?) is going to be similar for me for what they'd likely pay, without the hassle of a private party sale.
If you donate it a charity they will auction it off for maybe $300 then if you are able to itemize and are in a 25% tax bracket then that would be worth $60 to you. If you do not itemize your taxes it would be worth $0 to you.

Be aware that the "cars for kids" with the obnoxious radio ads is for a very conservative religious group that does things like takes kids to very conservative summer or day camps to get get them involved with their very conservative version of that religion. There is nothing wrong with that but you should be aware of what you are supporting when you give them a car. Places like your local public radio or TV station likely also have ways for you to donate cars to them.

Once you have a "done deal" on purchasing your next car then ask about a trade in. If they will take it, which they may not, then you might get a couple of hundred dollars. If they do not take it then some place like Car Max may be willing to buy it for a couple of hundred dollars.

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Clever_Username
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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sun Jun 28, 2020 1:01 pm

Watty wrote:
Sun Jun 28, 2020 10:56 am
Clever_Username wrote:
Sun Jun 28, 2020 9:59 am
Trading in my car that has KBB of maybe $600 isn't likely to happen. I am thinking I will instead donate it to a charity. I figure the difference in pocket (tax deduction, right?) is going to be similar for me for what they'd likely pay, without the hassle of a private party sale.
If you donate it a charity they will auction it off for maybe $300 then if you are able to itemize and are in a 25% tax bracket then that would be worth $60 to you. If you do not itemize your taxes it would be worth $0 to you.

Be aware that the "cars for kids" with the obnoxious radio ads is for a very conservative religious group that does things like takes kids to very conservative summer or day camps to get get them involved with their very conservative version of that religion. There is nothing wrong with that but you should be aware of what you are supporting when you give them a car. Places like your local public radio or TV station likely also have ways for you to donate cars to them.

Once you have a "done deal" on purchasing your next car then ask about a trade in. If they will take it, which they may not, then you might get a couple of hundred dollars. If they do not take it then some place like Car Max may be willing to buy it for a couple of hundred dollars.
Thanks. I wasn't planning on the cars for kids group, but I appreciate the warning. I'm at 22% federal 9.x% state, and I do itemize (mortgage interest, property tax, etc), so ... but still, that $60 doesn't sound like much. I may try the Car Max idea. Thanks for that too!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

Grasshopper
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Re: About to buy a car. What am I forgetting?

Post by Grasshopper » Sun Jun 28, 2020 1:12 pm

Just a reminder CA may go all electric vehicles before your next 15 years is up. :oops:

squirm
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Re: About to buy a car. What am I forgetting?

Post by squirm » Sun Jun 28, 2020 1:17 pm

Nothing else.i had my wife with me and said, honey cut a check for blah blah blah. Not a big deal. Just eat before you go, have a good time too, that's what we usually do. Some people get all worked up for that last bit of"negotiation", I don't.

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Sun Jun 28, 2020 1:30 pm

Grasshopper wrote:
Sun Jun 28, 2020 1:12 pm
Just a reminder CA may go all electric vehicles before your next 15 years is up. :oops:
Yes, there's a very systemic risk from that the state is, and will continue to be, California.
squirm wrote:
Sun Jun 28, 2020 1:17 pm
Nothing else.i had my wife with me and said, honey cut a check for blah blah blah. Not a big deal. Just eat before you go, have a good time too, that's what we usually do. Some people get all worked up for that last bit of"negotiation", I don't.
I am nervous, so I'll be sure to have a favorite lunch beforehand. Thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

MathWizard
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Re: About to buy a car. What am I forgetting?

Post by MathWizard » Sun Jun 28, 2020 1:39 pm

1. Make sure you call your insurance agent so that the car you buy is insured, especially if you are going from liability only to comprehensive.

2. Insurance may go up, as will registration fees each year.

mortfree
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Re: About to buy a car. What am I forgetting?

Post by mortfree » Sun Jun 28, 2020 1:42 pm

In PA, when I buy a car the sales tax is reduced by the trade-in. Not sure if the same would be true in CA.

You would be looking at $54 saved in sales taxes for trading it in (9%x600)

Much different when you have a higher valued trade.

Monsterflockster
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Re: About to buy a car. What am I forgetting?

Post by Monsterflockster » Sun Jun 28, 2020 1:46 pm

OP, you are forgetting that bonds should be in tax sheltered funds, not taxable. :happy

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Re: About to buy a car. What am I forgetting?

Post by Clever_Username » Mon Jun 29, 2020 10:06 am

MathWizard wrote:
Sun Jun 28, 2020 1:39 pm
1. Make sure you call your insurance agent so that the car you buy is insured, especially if you are going from liability only to comprehensive.

2. Insurance may go up, as will registration fees each year.
1. Done! Thanks for the reminder.
2. Yes, part of buying the new car. But it's important to remember. Thanks!
mortfree wrote:
Sun Jun 28, 2020 1:42 pm
In PA, when I buy a car the sales tax is reduced by the trade-in. Not sure if the same would be true in CA.

You would be looking at $54 saved in sales taxes for trading it in (9%x600)

Much different when you have a higher valued trade.
That is definitely something I should have looked into. Thanks!
Monsterflockster wrote:
Sun Jun 28, 2020 1:46 pm
OP, you are forgetting that bonds should be in tax sheltered funds, not taxable. :happy
Thanks, but high tax rate and in California makes it more tax efficient this way: my bonds in taxable aren't Total Bond, but rather a mix of CA Muni Long Term and federal short term (to get a total of intermediate term).
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: About to buy a car. What am I forgetting?

Post by lazydavid » Mon Jun 29, 2020 11:26 am

bob60014 wrote:
Sun Jun 28, 2020 10:54 am
bob60014 wrote:
Sun Jun 28, 2020 5:41 am
"What am I forgetting?"

When you go in to talk to the finance person, just say no to the paint guard, locking lugs and the extended warranty!
Correct, and thank you. I know about the first and third, I'm not sure what the second is, but it might be related to headlight fluid.
Locking lugs nuts. I'll add any other pure profit add ons. Good luck!
[/quote]

Locking lug nuts (or bolts, in my case) may be worthwhile depending on the intersection of the replacement cost of the wheels and the sketchiest place you will ever park your car during its life. But they are never worth buying as part of the vehicle purchase. I got my OE wheel bolts from Amazon for $42 eight years ago (they are now $60), but knockoffs can be had for as little as $16. I would guess the dealer would have charged me at least $120 at the time of sale. Probably more due to the extremely complex installation process. :P

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