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Discussion Starter #1
I have been referenced to being insane, which I won't agrue that point. Here is a question, All this talk about MSRP, dealer mark ups etc, Paying to much for the SKY, answer me this, You finance the car loan at whatever interest rate, You take the dealer MSRP price, with all your options, if you were to add the total interest of the note to the actual price of your vehicle, I am not a finance genious, but I bet you the front porch, it would equal more than 30K, so the way I see it you are payin the same or more than a cash sale? Somebody with auto loans can jump in here. So who is really paying more?

Point to ponder

ERNEST:willy: :D :confused:
 

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Discussion Starter #3
So if one is angry about the dealer profit margin, should one go after the high interest rates at the bank? GMAC? I think so. They are as much into profit as the dealer! So if I pay a little more than MSRP at the dealer with cash, and someone else buys one identical at MSRP with financing, two people are profiting off of that. I would rather it go to the dealer, that to a bank or GMAC
and with GMAC your are still lining Gen Mtrs pockets, only thru a different avenue. :lol: :lol: Point to ponder!! Now don't that tear the rag off the bush?:D

ERNEST:thumbs:
 

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Ernest said:
I have been referenced to being insane, which I won't agrue that point. Here is a question, All this talk about MSRP, dealer mark ups etc, Paying to much for the SKY, answer me this, You finance the car loan at whatever interest rate, You take the dealer MSRP price, with all your options, if you were to add the total interest of the note to the actual price of your vehicle, I am not a finance genious, but I bet you the front porch, it would equal more than 30K, so the way I see it you are payin the same or more than a cash sale? Somebody with auto loans can jump in here. So who is really paying more?

Point to ponder

ERNEST:willy: :D :confused:
Good Question, if you get a Sky for $25,000 MSRP and pay $3,000 Markup you will be paying a total of $28,000, now if you bought the same car for $25,000 MSRP and financed that amount for 60 months at 6% interest you would be paying back about $4,000 in interest making it a total of $29,000 dollars... The higher the interest rate the more you will save... only logical....
But you would only be paying it out a little at a time instead of one big lump...You could save yourself about $1,000 but that is at those figures only... you would have to get a 4.55% rate at those figures to break even...
Unfortunatly I don't have 25K laying around , I need to save all I can for my retirement so I can drive all over the country in my Sky.....
 

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here's the problem!

Ernest said:
I have been referenced to being insane, which I won't agrue that point. Here is a question, All this talk about MSRP, dealer mark ups etc, Paying to much for the SKY, answer me this, You finance the car loan at whatever interest rate, You take the dealer MSRP price, with all your options, if you were to add the total interest of the note to the actual price of your vehicle, I am not a finance genious, but I bet you the front porch, it would equal more than 30K, so the way I see it you are payin the same or more than a cash sale? Somebody with auto loans can jump in here. So who is really paying more?

Point to ponder

ERNEST:willy: :D :confused:

The problem is I expect to get a loan for may car, and this loan can be shopped. I can decide to go with GM, my credit union, or any other financial institution. If you want the SKY, you have to pay whatever your dealer says you will pay...or you walk and buy a different car or try and get a SKY 1-2 years from now!
 

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I am trying to get my husband to allow me to "borrow" the money from our savings and pay us back 6% interest rather than allow the bank to keep our money in our savings at some rate half of that while we take out a loan. Only problem,,,and he knows me....would I ever replace it? :willy: :willy:
 

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Ernest said:
I have been referenced to being insane, which I won't agrue that point. Here is a question, All this talk about MSRP, dealer mark ups etc, Paying to much for the SKY, answer me this, You finance the car loan at whatever interest rate, You take the dealer MSRP price, with all your options, if you were to add the total interest of the note to the actual price of your vehicle, I am not a finance genious, but I bet you the front porch, it would equal more than 30K, so the way I see it you are payin the same or more than a cash sale? Somebody with auto loans can jump in here. So who is really paying more?

Point to ponder

ERNEST:willy: :D :confused:
I am confused too...
OK I pay over MSRP (let's say 30K) But pay cash.... Or I pay Under MSRP and finance...
Apples to oranges -- You pay the price you pay -- cash or finance.
You either pay MSRP and pay for it cash... Or finance it
Or you are paying over and pay for it cash... Or finance it
So a cash sale - no matter what, is cheaper than a finance...
Financing always will add $$ as you pay interest
 

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bumsky2 said:
I am trying to get my husband to allow me to "borrow" the money from our savings and pay us back 6% interest rather than allow the bank to keep our money in our savings at some rate half of that while we take out a loan. Only problem,,,and he knows me....would I ever replace it? :willy: :willy:
The good part of doing that is that you can make up a loan at 6% and pay yourself that payment. You are then earning 6% interest, all tax free, on your monetary investment which is very safe (because it’s to you) rather than having it in the bank collecting very little interest and then paying tax on that earnings. You could have an allotment taken out of your paycheck for the payment amount and placed into a separate account (which would also earn interest) which would help you be disciplined in making that payment. Another benefit would be the time value of money, 25K today wont buy as much in 5 years from now, you may as well spend it now to get it’s highest value.

Of course the negative aspect is you no longer have access to your cash in an emergency as it is tied up in an asset and you must pay back you account every month. So not only do you no longer have a cash asset, you also must make payments, but of course the cash asset will start to be replenish and you’d have to make that payment anyway if you got the loan from the bank.
5K13.R3DL1N3
 

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Ernest said:
I have been referenced to being insane, which I won't agrue that point. Here is a question, All this talk about MSRP, dealer mark ups etc, Paying to much for the SKY, answer me this, You finance the car loan at whatever interest rate, You take the dealer MSRP price, with all your options, if you were to add the total interest of the note to the actual price of your vehicle, I am not a finance genious, but I bet you the front porch, it would equal more than 30K, so the way I see it you are payin the same or more than a cash sale? Somebody with auto loans can jump in here. So who is really paying more?

Point to ponder

ERNEST:willy: :D :confused:
Your question then is what cost more, financing or cash?

This would imply you have the cash available now to use, and so you’ll need to consider the alternative use of that cash if you don‘t use it to buy the car and finance instead.

Look at how much will the interest cost compared to how much after-tax income you can make your cash earn. ‘After-tax’ because on money earned you’ll have to pay income taxes, while interest paid on the car loan will be paid with after taxed money. Keep in mind that the risk required to achieve a net return on your cash investment to equal or be greater than what you’d pay in interest on a car loan. You know if you loan yourself the money, you can be sure to get it back since you‘d have to make payments either way. The loan to yourself will be zero risk, as long as you have the means to repay the loan.

There is also factors as the present and future value of money due to inflation and the issue of alternative use in case of an emergency. There are too many factors involved to accurately answer your question without knowing a lot more about you than you should write here.

5K13.R3DL1N3
 

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Well for the car up here because they are equiped with so much standard equipment the base price is 31,665, add on frieght and air tax, plus any options selected. Then we add the dreaded GST 7%, PST 8%, Then the finance charges to boot it will come close to 40,000 in a heart beat :banghead:
 

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For me the problem isn't what the banks or GMAC charge. We know the game there! The problem I am having (and I think others are having) is that the Saturn dealers usually charge a set price and they don't play around with it. Now because they have a hot seller with pre-orders (people standing in line). Some dealers seem to want to abandon the Saturn way of selling cars
 

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Discussion Starter #12
I am sure you all could work it out. There is no borrowing per se between Kathy and I, it belongs to both of us, However I will probably give her an cash equivelant to the SKY price, fair is fair ya Know wut I mean?


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Discussion Starter #15 (Edited)
Let's just say I have my retirement, Mutual Fund, and some help from the fossil fuel industry.:D :thumbs: I am not rich by no means, but I do .have a very comfortable lifestyle. Now if we could just do something about lowering the capital gains tax. If you think a car payment every month is tough, you ought to see what capital gains tax does to your wallet!

ERNEST:jester:
 

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I would be thrilled to pay an enormous capital gains tax. That would mean I had made an enormous capital gain. "Render unto Caesar..."
 

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Discussion Starter #17
SATN SKY said:
I would be thrilled to pay an enormous capital gains tax. That would mean I had made an enormous capital gain. "Render unto Caesar..."
I don't pay an enormous tax, but It still hurts!!! I wish I figure a way to get a tax write off for the SKY. I will leave that one to my CPA.:lol: :lol:

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It's been 6 years since I bought a new car (145K miles on my 2000 Xterra) and I'm SHOCKED that the dealers are charging $399.00 Document fee. No one at the dealer can really tell me what the fee is for. They are already charging Destination, Tax, Tag, Title, so what is a Doc fee??
 

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I think it is extremely short-sighted for a Saturn Retailer to charge additional markup on a Sky. Although many prospects will be 1st time Saturn intenders(still no excuse) many will be loyal previous customers. Saturn's owner retention percentage is one of the highest of all domestic brands.This wasn't acheived by gouging their customers whenever the opportunity arose. Owner referrals and "word of mouth" are priceless forms of advertising.From someone in the business I'll tell you,this is not the signal you want to send.
BTW.....there is no "true" explanation for a $399 doc fee other than ADP (additional dealer profit). They can spin it anyway they want to.:rolleyes:
 
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