Hey, I lurked for a bit, created an account, and figured I’d ask my question.
I’m 19, living in South Florida, and getting my first car. I know how to drive, but only recently got my full driver’s license, mostly because I’ve started working and need a car ASAP. If it matters (in terms of incentives), I’m a full-time junior in college. Credit Karma usually places me in 720-750 range, but (a) it’s Credit Karma and (b) my credit is very young and has no auto history.
I’m open to buying a used car, but I’m mostly looking to lease a basic, entry-level car like the Honda Civic or the Mazda3. Toyotas seem bad for leases. Not really set on any make or model; I’m realistic and just want the cheapest car I can get.
What would be a good deal for, say, a Honda Civic, considering my profile and location? I’ve seen offers for $260/month (no down, 36 months) and $79/month (~$3,300, 27 months), but my dad says only people with previous auto history can get these deals. He says I’m just going to have to bite the bullet and accept that my first car will be expensive, with a car payment of around ~$300 + expensive insurance + a hefty down payment. That just doesn’t seem worth it to me.
Is he right? Would I be approved for the CX-5 offer on the Leasehackr frontpage? My dad also shut down my idea of emailing dealers, saying he’d get a better deal negotiating as a walk-in. I’m almost certain he’s wrong.
Lastly - and I apologize for the barrage of questions - are there any cars you guys recommend for leasing/buying? I’ve also been thinking about buying a ~2017 Civic.
Talk to some of the brokers/dealers that serve FL… that should help you out. @mani_is_kool, @AutoNinjas and @RockyStadiumToyota are some of the ones that come to mind. Search the marketplace and you should be able to find more. GLWT
From your user name, you should be driving a used Testarossa
Will you be open to buying the entry level cars that you mentioned? Payment might be higher but it might save your money in the long term. Don’t negotiate in the dealership, almost every one here agrees to that. A 2017 Civic would be a fine first car, good luck!
Your dad is right, at your age you’re most likely not going to get a leasing company to give you a car without a co-signer.
Civic with a co-signer is probably your best bet as an inexpensive entry level car if you are going to go the lease route. If purchasing, no shortage of used Civics in South FL, they tend to last and are relatively inexpensive to fix. If going the used car route, remember two things: (1) don’t buy the cheapest one, there’s usually a reason why it’s that cheap and (2) have it checked out by mechanic before buying. There are a lot of flood cars from hurricanes in S.FL so beware.
You can probably do a Kia Forte GT line under 200 out the door with only first DAS if you have 700+ Credit score. With less depends on how bad. With a 640 you should still be under 250
This is how you get a dealer to rake you over the coals. When you put the power in their hands to dictate what the right car is based on cost, you’re setting the stage for significantly overpaying. Also, I’d highly recommend someone starting out to spend way less than 30% of their income on a car.
I’m struggling to see how you’re getting from “let it be the dealer’s problem to get you into the right car for the terms that work for you” to “negotiate the vehicle as one normally would and don’t get the car if you don’t qualify”, but we’re in agreement that the dealer isn’t looking out for his interests.
Going to the dealer and saying “I can only afford x term” and having them direct towards a specific trim/vehicle is an incredibly common shopping strategy. It’s a horrible strategy, but it’s very very common and you certainly wouldn’t be the first to suggest it here.
I quoted exactly what you said and offered clarification as to why one would think that what you said is consistent with something that gets repeated constantly. I get that you are saying you didn’t mean it the way it was interpreted.
Or understand that things aren’t always interpreted as written and that some discourse over what is being said may happen?
I disagreed with what you seemed to have said and offered an explanation as to why; deleting all your post history and refusing to participate in discussion because someone didn’t interpret something the way you intended it is a bit excessive.
Your first car doesn’t have to be expensive. I drove a $1200, 10-year old Camry for two years before I got my 2nd car and that wasn’t much nicer. Depending on your income and job security a $300/mn payment and full coverage insurance can be a recipe for financial disaster. Since it’s your money and you care enough to at least reach out here, I’d encourage you to make a budget for all your expenses and that includes savings, set some financial goals, and buy/lease a vehicle if it fits in the budget and helps you meet your goals.
Thank for all the responses, guys. Another question: would you recommend buying a used car from the dealer (using Edmunds to try to negotiate) or just refer to online listings?
Whether I lease or buy, I can comfortably (but not happily) pay $500/month including insurance. I am financially capable of paying $700/month, but isn’t that just stupid? I wish I could get the figure under $400; it just doesn’t seem very likely. As I said, I’d prefer to not have to put anything down for the reasons frequently mentioned here.
I can share a little bit from my experience with Honda here in WA:
In 2018 I leased a brand new base model Honda Civid a month after I moved to the US (12month/12k miles). This was in-house lease and I had no credit history. My down payment was high (few grands) and my monthly was okay, overall I had the money and I wanted to avoid used cars to leverage my time better as a new immigrant. Talk to the dealers, if you have a job offer letter and more money to put down upfront, you can get some short term lease in house and enjoy a brand new car. I was older than you, and I only had international driving license.
edit: just saw you said you don’t want to put money down. I would suggest to reconsider that. If you’re getting a used car you’re going to put money down and think about repairs, etc. (when I looked at that time for a 10 year old Nissan at ~$7k, I took it for inspection in AutoZone, and they quoted $2k just for repairs that I had to repair kind of immediately. The car had great CarFax and relatively low miles). Over the course of my lease, I paid less than that and I had no repairs/maintenance or anything, just oil change (and peace of mind).
