How does this deal sound?

[Koup d'état]

I've been in contact with a couple of dealers about buying a Koup. I've posted a blog and topic about the one that's tried to rip me off and now I'm going to tell you about the deal the other dealer just offered me.

They getting a Black on Black Koup SX fully loaded(every available option) in soon and they offered me this deal. Now this is after a lot of negotiating and is a final offer from the GM so I won't be able to get a better deal.

MSRP of Koup: $21,680

Sales Price they will give me: $20,656
Doc fee: $399
Remote Start*(Optional): $499
Runner fee: $33

Total Charges for vehicle from store: $21,587

I have a 2006 Dodge Charger SE I will be trading. I owe $9,850 on it and they will give me $9,200.

Sales tax and title/registration fee comes out to: $847.19

So what I'm thinking is that remote start figure is a little high, so I may just get an aftermarket one and install it myself. That would know $499 off the price which helps a little. How does this deal sound to you? Is it a good price? Should I wait it out for rebates and other incentives?

I didn't really want to spend $1,000 on fees and taxes right before Xmas but I do really want the car so.... I dunno. Any advice?

 

[Rekoup]

Mine loaded, black on black, leather, 6-speed AND getting it from another dealer 200 miles away, without a trade-in was 19280 before tax, title, license. The Auto Trans is like a $1200 option I think

Remember they are making money on your trade-in, and will probably sell for KBB.com value.

The GM giving you a "final deal" isnt always final. If they think you arent coming back, they will lower the price.

They WONT be offering this to you if they ARENT making a lot of money on it. Sure there may be another person that might pay that, but in reality, 11% unemployment and much worry is keeping people from buyuing ANY car, even a KIA.

You have a 2006, so I assume you werent in a rush like I was to buy a new car, mine was falling apart, $4k to fix.

The remote start IS high unless theres a manual trans...you cant ever park it in gear with a manual...clutch ignition disconnect for safety, and if you overrode it, the car will lurch forward (or backwards, if in reverse). I dont know if the $59 cheapos are any good. I assume it would be 3 hours labor to install, and dealerships are about $100/hr labor. They might be putting in a $59 model!

If I were you, I'd wait for a better deal OR go to another KIA dealer and ask for a lower price, say you know a guy on the forum that didnt negotiate much at all and got his for 19280...and I'll send you a copy of my window sticker & receipt! Use it to say "I'll buy it for this much!".

 

[Silversport]

do you pay local car tax ie city or county tax for vehicals. if so you may want to wait till after first of year. other then that is seems fair ( not great but fair ).

 

[Rekoup]

Oh, there IS an IRS deal where you can deduct the tax (NOT a credit) from your income.

If you make 35000 a year and pay 800 in tax, you only claim 34200 income or something. You MUST take delivery (not just a deal) before Jan 1st I think

 

[Koup d'état]

Well first of, this is the final offer for now from this place. I've been negotiating with them for a while, and I finally am talking with the GM. There's no wiggle room here for now. Maybe if there sitting there in another couple of months I may be able to get another deal but that would require me to wait. And also, this is the auto trans so that's why it's a little more expensive for this car. You paid 19280 and the automatic is a $1200 option so that's about right for what they're asking($20,656).

And yes we have a local excise tax we have to pay the city. Maybe I will just wait until President's Day and hope my trade doesn't fall too far in the meantime.

 

[Rekoup]

http://www.soundmoneymatters.com/new-car-tax-credit/

Here it is, but read the first comment by "Jason"

Per the IRS, it is not a tax credit, but a deduction. Deductions are a reduction in your taxable income. Credits are much more valuable because they are direct reductions in the tax you pay. For example, a deduction of $1 means that you save $0.35 on taxes if you are in the 35% tax bracket. A credit of $1 means you save $1 in taxes, no matter what your tax bracket.
Second, the estimated savings of $1500 on a new $25,000 car was based on the proposal, not the final law. As you noted, the original proposal included a tax deduction for car loan interest. However, it was left out of the final law. From Sen. Mikulski’s (amendment author) website (http://mikulski.senate.gov/_pdfs/Press/autoownershiptaxamendment.pdf), the $1500 savings was broken down into $420 savings from sales tax deduction and $1133 savings from interest deduction. Since the interest deduction was left off, the savings for the average family is only $420.
Third, because it is “above the line,” the tax saved will be significantly less than the sales tax paid. Imagine I paid $25000 for a car. Using the Senator’s assumption of 6% sales tax, I would have $1500 of sales tax that I pay at the time of the purchase to the state. This is how Sen. Mikulski can say that that this would increase state sales tax revenue. However, when I got around to filing my taxes, I would get to subtract $1500 from my income. This would reduce my federal income tax by the above $420. So, even if the federal government cuts the state benefits by the same amount as the tax cut, the state would still be up by $1000.

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Hmm, if thats the last offer from them...then you need to decide. I flip a coin in these matters when I cant make a decision. I guess I've been lucky so far I dont think they will "run out" if you decide to wait. And if you dont wait, you get the KIA! You win either way, eh?

The only incentive for the SX is the $400 college grad rebate, but you must finance through KIA-Hyundai (I heard their credit minimum score is 740 for acceptance, but its 3.9% also!)
Good luck in your decision!

 

[Koup d'état]

So the dealership that tried to screw me over(Lawrence) had a different salesperson call me back. He informed me that the salesperson I had originally worked with no longer worked there. Probably a bunch of BS but he did tell me that he could get the deal done and get rid of that $300 the other salesperson couldn't get rid of it.

I've done the math and they're actually offering me a much better deal. I'm saving about $1,045(Fees, Taxes, Trade-in) by dealing with them instead of the dealer in Medford. It's the same exact car, except the only difference is the car in Lawrence has about 30 miles on it(test-driven) and the car in Medford is actually coming straight from the factory(I actually don't even know when it will be in).

I think I might be giving these guys another chance. I'm getting a good vibe from this salesperson, and maybe he's just buttering me up but at least I'm getting the deal I want. The sad news is I went to my credit union I'm currently financed through and they offered me a shitty rate(7.7%). I don't even know where they're getting that rate from. I went there a month ago for a used car loan for 18K and they offered me 5.0%. Usually new car loans rates are lower than used car loans but whatever, I'll see what the dealer can get me. I'm going to be heading up there tomorrow morning so I'll let you know how it works out.

 

[Sal Collaziano]

Money talks. If you're getting a better deal - go for it. Just keep in mind that service is going to be everything once you've already got the car.. So keep that in mind when choosing a dealership..

 

[Rekoup]

I dont think the 7.7% isnt too bad if your credit score is below 700-720, the national average for bank-supplied loans is 6.7 (as of last week), my credit union was 5.6 for members with 740+ and 9.98% for 7xx and below or non members. My score isnt too good because ive paid cash for everything...so I got a 12.99% from Wachovia Dealer Services. I only financed 5400 so its no big deal anyways. The interest is worth it for me, to improve my score.

KIA offers 3.9% but its HARD to qualify for. Ive heard 741+ score for it, minimum and if your I : D ratio is over 30% you get an automatic "no".

Look over the paperwork too...maybe they are going lower just to get you in the door, so they can sell you ridiculous car care packages and car washes and additional warranties (that have a $100+ deductible anyways).

I went in to the dealership to finalize my paperwork at 7:45PM, just to make sure that if I was saying "no" to the warranties and silly paint treatments ($8000 worth!) that they would be staying past closing time just for ME.

I think it worked, he finally gave up. I was almost sold on it, until I saw the $389 price tag wasnt the COST of the package, but instead my monthly PAYMENT (up from $122). WOW.

I can pay for a lot out-of-pocket before I'd break even on their "deal".

Will we see pictures of your car by tomorrow?