: If you were me, what would you decide?



Kuya
05-10-11, 08:43 PM
Here is my situation:

Due to my 'fair' but not great credit, I most likely wont qualify for prime rates. Because rates dictate a very large amount of my payment, it significantly impacts my choice of vehicles and options. I also have a budget that I need to stick to.

I have done all the comparisons and believe I have looked at every option . . and at the end of the day, here are my choices:

1. 2010 SRX AWD LUX w/Nav System $37,000 financed at probably 8 or 9%, putting my 72 month payment around 675, with a few thousand down.

2. NEW 2011 SRX FWD LUX w/NAV System $39,995 financed at probably 5 to 6%, putting my 72 month payment around $677.

I am really stumped on what to do. I SOOOO wanted AWD. It was on the top of my list for vehicle wants. However I have never had AWD so I wont really miss it. But . . I really really wanted it.

It is so hard, because I want the AWD . . but for just a few thousand more, but lower interest rate due to new car . . I can have a brand new fwd.

What would you do?

PS . . as much as I would love to just up the price to $42,000 and take a 2011 AWD (at invoice) . . . I just cant. I totally maxed out my budget and just can't do it.

dkozloski
05-10-11, 08:56 PM
Get a part time extra job to make up the difference. With any kind of job you can make up the difference in a couple of months.

Smokin' SRX
05-10-11, 10:12 PM
unless you live in a snowy area (your profile doesn't say) AWD is not a necessity. FWD can handle about 80% of what AWD can on the same car, most of the time. Ground clearance is same with FWD SRX and gas is about 2MPG better ! Thats about a $250 a year savings with 12000 miles driving a year. Every year. Plus the 2011 will give you FREE 4 years/50K maintenance too! That's worth about $700-1200 (my guesstimate w/ tire rotates,oil, air,cabin, filters etc.) Plus bumper- bumper new car warranty for 4 years/50K miles. And Onstar 9.0 can interface with a Smart cell phone, to Remote start/lock-unlock/blow horn & lights, more. Not on 2010

What's your ride now? Have AWD? Need AWD much? Talk to neighbors/friends who drive area.

I know what I'd do. LOL

Maybe some FWD members can comment on bad weather/FWD.........

Best wishes.

SS


Afterthought..........Lease it and save a few hundred bucks every month. If you still love the car @39 mos later, buy it! If not hand them the keys. You may extend your payments a year or so, but be under warranty for entire lease (unless you drive over the 50K miles) and get what you want. And if you finally buy, the powertrain warranty is valid for 5 years 100K miles total so you still have some bumper to bumper (mileage based?) and remainder of 5/100K.
Just a thought.........

Kuya
05-10-11, 10:24 PM
Thanks Smokin for some input.

I live in New York State. We do get some harsh winter snows but normally only a few each year. I have never had AWD before. My current car is a Hyundai Tiburon. Light car, FWD and never had any issues that I could not handle in the 5 years I owned it.

Am I correct in thinking that I read somewhere that the 2011 also comes with one year Onstar free?

I think you are right in getting the new 2011. I was speaking to the dealer today about the situation and he did say that the FWD has traction control . . and something else . . . obviously not comparable to AWD . . but something, at least.

Still not 100% sure, but I am starting to lean towards the new FWD. . . at least it is a brand new car . . all for me.



unless you live in a snowy area (your profile doesn't say) AWD is not a necessity. FWD can handle about 80% of what AWD can on the same car, most of the time. Ground clearance is same with FWD SRX and gas is about 2MPG better ! Thats about a $250 a year savings with 12000 miles driving a year. Every year. Plus the 2011 will give you FREE 4 years/50K maintenance too! That's worth about $700-1200 (my guesstimate w/ tire rotates,oil, air,cabin, filters etc.) Plus bumper- bumper new car warranty for 4 years/50K miles. And Onstar 9.0 can interface with a Smart cell phone, to Remote start/lock-unlock/blow horn & lights, more. Not on 2010

What's your ride now? Have AWD? Need AWD much? Talk to neighbors/friends who drive area.

I know what I'd do. LIL

Maybe some FWD members can comment on bad weather/FWD.........

Best wishes.

SS

Smokin' SRX
05-10-11, 10:29 PM
You're quick! I added an afterthought that you didn't see. Yes 1 year Onstar free! 3 mos think) XM free!

Kuya
05-10-11, 10:40 PM
I am only quick . . because for the last few months I have been living and breathing SRX information lol. I am very very excited to get the car.

Actually, you hit another area that I had been discussing with one of the dealers. He said I could possibly do a lease to buy option on a 2011 AWD LUX W/Nav . . . At first this sounded like the answer to my prayers . . then I did some homework . . . to pick apart the magic lease formula. It was complicated. MSRP X .53% = Residual. Negotiated Total - Residual = Depreciation payment. That alone was around $480/month. Then comes the financing. My less than perfect credit ensures I am not tier 1. I have no idea what my APR would be, but it could possibly add an additional $200/month onto my payment . . from the calculations I was doing. That would put my lease payment at the same as my purchase payment . . .which is insane. I will just buy at that point.

And that is IF I could even qualify for the lease. I have a Fico of 705, but there is a Business BK on my record from 5 years ago . . . Therefore . I am really concerned that my APR will actually dictate what my final option is.

Sorry to spill my financial guts HAHA . . just trying to give a better perspective on why I am so limited in choices.


You're quick! I added an afterthought that you didn't see. Yes 1 year Onstar free! 3 mos think) XM free!

Smokin' SRX
05-10-11, 10:56 PM
In my experience, auto leases are more forgiving than credit card apps, of Business BK's because the car is insured and can always be towed in event of non-payment. This tends to sometimes make them more forgiving. Check it out. 705 ain't terrible!

SS

If you're near the Suffolk-Nassau line, PM me and I'll give you a Dealer where I personally know the owner.

GMJim
05-11-11, 07:14 AM
I can offer you a supplier discount, that would knock a couple K off the price.

Kuya
05-11-11, 07:17 AM
This is my dumb question of the day . .. .

What is a supplier? vs a dealer? what is the difference?

PJ1520
05-11-11, 01:15 PM
KUYA............here is what I read from your posts: "......possibly." ".....no idea what my APR would be." ".....could possibly." .....if I could even qualify for the lease." You need answers to the unknowns.

Four observations.

First, if I were you, I'd start getting some concrete committments/answers on your financing versus leasing options. If you have to buy now and if you have a specific vehicles in mind at particular dealers, those dealers are incented to give you definitive answers and offer you options you and they can live with. They NEED to move a car. Your credit score and related observations are valid, but they are also shared by zillions of us out here. These matters are not going to change in the short run. As Smokin aptly pointed out, what you are feeling and thinking might not necessarily be quite what you can "get."

So first things first, establish the bottom line on what you can safely afford and what you can get (committed) to put you in the vehicle from a dollar standpoint. My son had the same concerns as you during his last vehicle search and also had too many unanswered questions. But he was pleasantly surprised (shocked) when, in frustration, I finally went out with him. We picked out a couple of vehicles at different dealers, then sat down with the finance folks, and we talked plain and straight asking for a commitment, both the what and the how. We actually wound up with not one but two viable options. My son had to drop a few more $ up front on the downpayment to seal the deal (purchase). No, he wasn't happy with the rates or the payments, but he got it done and put himself in a position to mitigate some of the financing costs by paying down the loan faster.

Second, if I were you I would be willing to compromise on the vehicle (mileage, options level, color, dealer proximity, new versus pre-owned) to get into the brand and model of my choice. A half-full cup is better than an empty one.

Third is patience and timing. I have found that the "absolute bottom line vehicle prices" declared by a dealer on a specific vehicle are cast in concrete.........right up until the moment end of the month quotas must be met and/or the "other dealer" has made a better move to get me into an apples to apples vehicle. Every time! If you can, wait until August right before the 2012 models are hitting the showroom floor, do it. New or pre-owned. The model year change will drop your price on a 2011 or 2010. And the dealer inventories will be healthy, for you.

Fourth, skip the AWD. I'm 60 and am now in my first AWD vehicle of my life. My wife and I have lived (without issue) in snow country all of our lives without AWD (Chicago, Cleveland, metro NY, Boston). As a practical matter, on a front wheel drive vehicle, in the worst case scenario you can buy some Blizzaks or wait a couple of hours once or twice a year until the roads are cleared enough to be passable and safe. Your savings on the purchase price and in fuel savings with FWD will pay for the winter tires and then some. A FWD decision by you may probably open up a much larger vehicle selection and with it lower, more competitve prices..... because the supply is there.

You are smart. Get answers to the unkowns. Be flexible. Be financially sensible. Be patient. Research your brains out, Know as much or more as the dealers. Pit the dealers against one another. Borrow money from your folks (I have, with interest). Use your resources, all of them, for ideas.

PJ

cvettr/cts-v
05-11-11, 01:39 PM
Yes, Get the real rates the finance people can commit to getting for you as stated above. You may get better than you think which changes some possibilities. Also if you have the ability to wait short term like a few months put as much as you can aside as if you were making the payment. Then you have extra down which helps with the % and payments and gm will probably start upping the incentives as the 2012's get closer and in stock that could be a big difference also. If you can't wait then take gmjim up on his offer for gm discount. Get everything you really want/need as with 72 month payments which make it more affordable, it may be difficult to get out from under if need be as you'll likely be upside down for some time. Good luck it is a big decision and a huge investment

cvettr/cts-v
05-11-11, 01:45 PM
But check with the finance people where your feel most likely you'll buy as a bunch of hits from people checking also can affect your score and make finance people a little nervous. Remember they can dealer trade for any one out there so pick the best place and work with them untill you think they are not giving your the best deal/service.

Kuya
05-11-11, 02:23 PM
Thanks for the response and information.

Just to clear things up, I have been researching this Car, MSRP, Invoice, incentives, apr's, residuals . . .etc . . for 6 months. I agree with you that I should go into this armed with knowledge. The only unknowns now is where my credit stands.

I do also agree with you is that I need some commitment from the financing about rates and bottom line payments. This is true. I have been holding off as long as I can, but I agree this is my next step.

Little more insight: My BK filed 5 years ago, and just recently discharged. It was a 5 year repayment option. I have spent the last few months working overtime to jump my credit from 599 to 700. That took a lot of work and effort . . and the slightest sneeze will bring my score down. So, this may help you better understand why I have been 'holding off' on the credit run. I want to make sure I am ready to buy . . when I run that credit.

I have established my bottom line. $40,000 on a new car and $37,000 on used. Why the difference? Because I have done a billion calculations using Edmunds auto payment calculator . . putting my money down, tax title, and using every possible APR you can imagine. I do recognize that my apr will be different on new than used . . . thus the lower bottom line on used.

I do believe I am well prepared . . . just very nervous LOL.

Thank you for all of your good advice . . . .especially on the FWD information. I REALLY wanted AWD . . but, I agree with you that it is expendable. I never had it and wont miss it. But it was number one on my list of "must haves" so it's sad to see it go :(

Anyway, thanks for taking the time to provide all of the detailed information. I really appreciate it.

I guess, in the very near future, I will pick one of the dealers that has helped me out a lot so far, and work with them to get some facts about where I stand for APR and Lease. I just feel that obviously each option and or vehicle requires them to gun-shot your credit all over again. It's hard to get straight answers without knocking my credit to the floor.




KUYA............here is what I read from your posts: "......possibly." ".....no idea what my APR would be." ".....could possibly." .....if I could even qualify for the lease." You need answers to the unknowns.

Four observations.

First, if I were you, I'd start getting some concrete committments/answers on your financing versus leasing options. If you have to buy now and if you have a specific vehicles in mind at particular dealers, those dealers are incented to give you definitive answers and offer you options you and they can live with. They NEED to move a car. Your credit score and related observations are valid, but they are also shared by zillions of us out here. These matters are not going to change in the short run. As Smokin aptly pointed out, what you are feeling and thinking might not necessarily be quite what you can "get."

So first things first, establish the bottom line on what you can safely afford and what you can get (committed) to put you in the vehicle from a dollar standpoint. My son had the same concerns as you during his last vehicle search and also had too many unanswered questions. But he was pleasantly surprised (shocked) when, in frustration, I finally went out with him. We picked out a couple of vehicles at different dealers, then sat down with the finance folks, and we talked plain and straight asking for a commitment, both the what and the how. We actually wound up with not one but two viable options. My son had to drop a few more $ up front on the downpayment to seal the deal (purchase). No, he wasn't happy with the rates or the payments, but he got it done and put himself in a position to mitigate some of the financing costs by paying down the loan faster.

Second, if I were you I would be willing to compromise on the vehicle (mileage, options level, color, dealer proximity, new versus pre-owned) to get into the brand and model of my choice. A half-full cup is better than an empty one.

Third is patience and timing. I have found that the "absolute bottom line vehicle prices" declared by a dealer on a specific vehicle are cast in concrete.........right up until the moment end of the month quotas must be met and/or the "other dealer" has made a better move to get me into an apples to apples vehicle. Every time! If you can, wait until August right before the 2012 models are hitting the showroom floor, do it. New or pre-owned. The model year change will drop your price on a 2011 or 2010. And the dealer inventories will be healthy, for you.

Fourth, skip the AWD. I'm 60 and am now in my first AWD vehicle of my life. My wife and I have lived (without issue) in snow country all of our lives without AWD (Chicago, Cleveland, metro NY, Boston). As a practical matter, on a front wheel drive vehicle, in the worst case scenario you can buy some Blizzaks or wait a couple of hours once or twice a year until the roads are cleared enough to be passable and safe. Your savings on the purchase price and in fuel savings with FWD will pay for the winter tires and then some. A FWD decision by you may probably open up a much larger vehicle selection and with it lower, more competitve prices..... because the supply is there.

You are smart. Get answers to the unkowns. Be flexible. Be financially sensible. Be patient. Research your brains out, Know as much or more as the dealers. Pit the dealers against one another. Borrow money from your folks (I have, with interest). Use your resources, all of them, for ideas.

PJ

Kuya
05-11-11, 02:29 PM
I agree that waiting would be a huge benefit. Unfortunately, I am out of time. I have been without a car for a few months now . . and there is just now way to hold off for better incentives. I waited for May to see if any better ones would come around . .but they simply extended the April incentives until May 9. Then extended the same ones until May 31. It sucks because the only incentive is great APR . . for those that qualify. But for people that don't qualify . . . we get nothing.

Anyway, I do need to make my purchase this month. Can't hold off any longer.

Realistically - if I could find a 2011 AWD Lux w/nav for under $40,000 that would make my day. . . but seeing that invoice is $42,000 . . it is just not going to happen.

I will sit down soon and see where I stand with Lease rates for the AWD, and compare it to purchase price of FWD . . . and then make a final decision.

I guess, I am beginning to lean towards new, rather than the used AWD . . but not 100% sure yet . . .




Yes, Get the real rates the finance people can commit to getting for you as stated above. You may get better than you think which changes some possibilities. Also if you have the ability to wait short term like a few months put as much as you can aside as if you were making the payment. Then you have extra down which helps with the % and payments and gm will probably start upping the incentives as the 2012's get closer and in stock that could be a big difference also. If you can't wait then take gmjim up on his offer for gm discount. Get everything you really want/need as with 72 month payments which make it more affordable, it may be difficult to get out from under if need be as you'll likely be upside down for some time. Good luck it is a big decision and a huge investment

Kuya
05-15-11, 05:40 PM
Update:

I had made the decision to move forward on a 2011 FWD. I have bee waiting since Thursday for my local dealer to get back to me with figures (price, payments, etc) and then we were going to go ahead and run my credit and see where we fall. But since I had not heard any solid information from him . . . nothing was set in stone yet.

Then, yesterday, I found a 2010 Platinum Ice Premium AWD SRX, 15kmi. Beautiful and loaded. They were asking $37,900. Compared to the pricing research I have done, that alone was a very good price. I decided to make one long shot offer. If they refused it . . no biggie, I will just continue to move forward on the 2011 FWD.

I offered $34,995. To my amazement - they took it. Told me it was a trade-in where the buyer had originally put a lot of cash down, but after 10 months could not handle the payments so he traded in on something cheap. They basically stole it back from him. That is why they were able to let it go for cheap. It is not a car they can easily move with todays gas prices, and it being a "lower end " Hyundai dealer they don't get a lot of people looking for Caddy's.

Anyway . . the CarFax checks out and I am very excited because the price is super-right. I think I have a very good shot at decent financing because even though I have a recent BK discharge, I do have 703 Fico . . . and the equity situation on this vehicle is very good.

Fingers crossed . . will know for sure in a few days.

Thanks to all for their great advice and help. . . (except the one person who told me to get a second job LOL)

Kuya
05-16-11, 07:53 PM
Update:

Got my hands on a 2010 Platinum Ice, AWD SRX Premium, 14k miles, 10 months old. . . . beautiful baby :)

Talked it down to $34,995 . . and that is a steal compared to the retail value across the country . . . Such a steal that even the bank surprised me with a super low rate . . . due to the equity situation.

I expect to bring her home Thursday . . I am soooo excited.

Smokin' SRX
05-16-11, 11:17 PM
Pls see my other response ! Take a long test drive!! LISTEN. Front end noise/rear end noise on turns bumps etc. Lotsa noise complaints on some of these. (Not mine). Try all A/c ,radio and Nav stuff. Mandatory 1 hour test drive, minimum!

Don't want you to spend every week at the Caddy Dealer. Get a Caddy Dealer to run the VIN # FIRST! See what warranty work/recalls are in the system. May be a problem car. Mileage is low. May be fine........may be a red flag! Hope it's a winner. We love ours!

Best of luck! Odds are with ya.

SS

PJ1520
05-18-11, 01:47 PM
KUYA........that's great advice from Smokin. Also, read the advice on the other thread on this you started. Good stuff in both places.

I can't tell you how many times in these forums you read about someone who failed to adequately test drive the prospective vehicle and try out all of the options, only to find themselves with a vehicle that at first glance had looked to be an exceptional deal. Some weren't!!! Then the back and forth to the dealer commenced.

In addition to Smokin's advice and all of the other solid recommendations made by posters on the two threads, let my add one more thing. Make sure the motor and power are up to your needs and expectations.

PJ