Need recommendations/help for first time car buyer

Ask the Hackrs
1

Hi, I am from Georgia,

I just moved to the states two months ago and still looking for several SUVs due to the crazy markup price. What car should I purchase within a 30k budget…? I will purchase by cash cause I do not have a credit. Also, this is the first time of buying a car here… I really need some help.

At this moment, I was considering Volkswagen Taos S trim and 2023 Sportage base mode.
Seems that Volkswagen is not that popular in the states and they do not have a markup usually.
Also, I heard that Sportages are started to be manufactured in Georgia, so I hope that it will be in inventory soon in the Georgia dealership.

What car would you recommend to me? And how to purchase a car at a reasonable price at this crazy session?

2

Consider a Toyota Corolla Cross or Kia Seltos.

Finance a small amount because that will make your negotiation easier and also build up your credit score.

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3

Thanks! Why does financing make the deal easier? Does the amount of down pay affect a deal? I want to make a downpayment as much as I can. I checked Seltos but seems that there are no cars in the inventory.

4

Dealership makes money from it.

Amount of downpayment will make a bank say yes to approving you - even if you have crap or nonexistent credit. Financing a portion of the car and making all payments will make your credit score go up - and make financing another car in the future or other credit decisions easier.

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5

I see… thanks a lot… when it comes to financing, how to end up having a reasonable deal? Is there any guide or tutorial for the deal…? If the dealer doesn’t offer me a good deal, isn’t it better to purchase it in cash? Because I have to pay the interest.

I am so sorry for asking this dumb question. I am literally new to the car deals.

6

Negotiate the selling price and the OTD price (including all taxes and fees).

Then ask them to beat the financing APR you can find from your local bank or credit union … or a non-local federal credit union like DCU, Navy Fed or PenFed.

7

Oh… can I ask the banks about how APR can I get? And is the dealer’s job to figure out whether they can sell the car at a lower APR to me?

8

Do not be sorry if you are asking questions and listening to the answers.

It’s better to finance and pay the interest to create credit score now - if you want to have credit card or mortgage or finance another car in the future you need to start now to make the credit score higher (bank uses this to see how trustworthy you are to pay them back).

This - when you get an offer come back here and post it - we will look and help you evaluate and understand.

Yes you can apply to the bank and get ‘preapproved’ for a certain amount and interest rate before you go to a dealership.

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9

I didn’t know that. Thanks a lot! I just realized that my credit score is around 730…? Then my job is to find a dealer who can get the lowest APR with a reasonable OTD price? How does the APR system work? Do they find 3rd party loans or something with low APR? or do they negotiate with my bank?

10

If you decide on a Toyota I can get them for you at or just below msrp. Rav and corolla cross are under 30.

Jim
215-359-6836

11

I would start by talking to some local credit unions to find out what they offer Apr wise for new car loans. You can apply for a pre-qualification. The lower the apr, the better.

12

Thanks, I only use BoA and Chase. Usually, local credit unions are better than those banks? How to search which local unions have a good reputation? I have no experience sorry

13

If you don’t mind could you explain what is a broker…? I do not know whether it is safe to contact to them.

14

Credit unions tend to offer better rates for people with limited credit.

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15

Is it safe to use them? compared with major banks?

16

Yah, they’re still fdic insured and are legitimate banks.

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17

The dealer’s job, like any business, is to make money. So getting you to accept their loan will earn them a commission from their bank.

18

Oh I see… so the dealers have some connections with loaner and they get permissions when I use it. Then the broker, for example who commented here, is a car dealer?

19

Thanks for explanation…! Usually how to initiate process with them? Should I search on web? I do not even know how to start… thanks!!

20

You can probably hop on Google or yelp and just search for credit unions in your local area. They’re also often related to nearby universities, employment groups, etc

@RVguy might be able to help with some of the credit unions he works with

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