Hubby got done with work extra early yesterday so we went car shopping. I probably got a little sun burnt from all the walking around we did. I swear it’s a sales tactic to walk us to the front of the lot to find a car that’s actually in the back.
We originally wanted to save up money to purchase a car with cash. When I realized my car wouldn’t pass inspection at the end of June, we ran out of time to save and hubby applied for a car loan and our goal was to keep it under $10,000.
So what do you do when your car completely fails and you need a new one NOW?
You crunch numbers.
My husband is practically a ghost to the credit industry. The interest rate he would wind up paying was ridiculous. Then the dealership guy suggested trying to see if we’d get a lower rate with me as a co-signer. Holy great credit score, Batman! It brought the rate down by 15%!
I know I often tell people not to co-sign for anything but my husband and I are in this for the long haul and I fully understand any possible ramifications.
After seeing the low rate we could get and seeing that we could afford a little more car, we went back outside to check out a car we had been eyeing earlier. It was gone. We found the same model a year newer and the sales guy took off a couple hundred. We were actually getting the car at $500 under the Kelley Blue Book value. But after all the fees and extra crap they lure you in to, we ended up spending about $6000 more than our $10,000 goal.
This is the first time hubby or I had purchased a car through a dealership. When one lady came out with a binder full of annoying sales pitches to purchase extra stuff for the car, I wanted to laugh out loud and then reach across the table and strangle her. But, knowing the damage that rust can do to a car, we opted for some service package deal to put some kind of coating underneath the vehicle that prevents corrosion. The package included some paint coating thing too and maybe something else. I have such a horrible memory.
SO WHAT DID WE GET?
A 2011 Toyota Corolla with just over 24,000 miles.
Below: The old car to the left and the new car to the right of it.
If memory serves me correctly (it usually doesn’t), we signed on for 60 months. I remember seeing a page that said we’d wind up paying about $900 in interest if we paid the minimum. Since we can afford to pay more, we likely will.
We had to get comprehensive insurance coverage on the new car. We just had the state minimum coverage on the old car so our $26 a month payment jumped to $85. However, we’ll probably save about that much in gas each month as the new car gets so much better gas mileage than my clunker!
I think I remember someone saying that we won’t have to pay for the state inspection at the dealership when the car requires it again sometime next year. We decided to register the car fully in hubby’s name to avoid paying state property taxes on it. Originally we had planned on transferring registration from the old car but if both of our names were on the registration we would still have to pay property taxes. Hopefully the DMV will refund my renewal. Ugh, I’m kicking myself for jumping the gun on purchasing that online!