Capitol Hyundai

I'm looking to buy a new car using the Cash for Clunkers program. With this I could trade my '94 Ranger with a credit of $ 4500 for a new car. I've never bought a new car, in fact, the Ranger is the only vehicle I have owned (he bought a guy when I was 16). It is basically my plan to buy a Hyundai Accent '09, the cost is about $ 15,000.

1. Get a car loan for $ 8,000 Capitol One (I'm sure I'll be approved, have good credit)

2. Go to the dealer who participates in the scrappage program, Pay with a loan of $ 8,000, $ 4,500 of trade, payment in cash. Take the wheel of my new car.

3. Pay about $ 220 a month on loan until the car is paid off.

Does this sound like the right way to do it? I am newb total purchase of the vehicle. Moreover, only other questions are will I for any reason must obtain insurance coverage like that? And dealers do not realize the 2008 models, as I know it would be cheaper than 09 and the cash for clunkers program covers and '08s.

First, do not be surprised if you begin receiving a cool response from dealers. The Fed Govt has promised to pay the dealers within 10 days and it happens. Dealers get nervous and can get cold feet when you mention the CARS program.

This info aside, you really need to pay cash for the Hyundai. Debt for a car is not a good plan, regardless of incentives, rebates, etc.. You must pay cash.

The dealer will try to sell you the new car for the "list" price (the amount of the thumbnail of the window). Coupe SE has a list of options $ 15,870 more, it takes ~ $ 17,000.

A three-year Hyundai similar model sells for $ 5 to $ 6,000. This means that this car is worth one third (the loss of two thirds) of its value in 3 years. (Hint: bad investment).

So why pay cash? Answer: cash "reduces the cost of ownership because, in addition to depreciation, you save the cost of financing. Plus, borrowing $ 8,000 to $ 220 per month means you're financing something like 3.5 years.

So, add this: $ 11,220 + $ 1,240 in financing costs, is equal to $ 12,460, it will "cost" you to own this car for three years.

Best bet: Buy the store for cash, add cash to the pot and you buy a solid used car (Civic, Corolla, etc.)

First, all vehicles financed must be fully covered, including a model and collision. Banks need because they want to protect their investment. If you are unable to obtain coverage, the bank will insure you for 3 times the normal speed. So it's always better to do things by yourself.

Secondly, Hyundai Accent costs $ 15k ???????????? WTF ????? I just saw an ad for the $ 4,900 Accent to the schedule after Gov.! If you are going to spend $ 15k, I suggest you look at the Honda Civic or Toyota Corolla. They are far superior in terms of reliability, refinement and resale.

Third, go to http://www.carbuyingtips.com to learn to negotiate and avoid dealer scams.

1) Get your $ 4,500 '94 Ranger program in the Cash for Clunkers - Great!

2) Obtain financing with a bank rather than the dealer - Super!

3) Pay $ 12.500 ($ 8,000 of debt and scrappage $ 4,500 credit) and drive away in your new car. WHOA. Not so fast. Car sellers can feel first-time buyers a mile. They are rubbing their hands with joy, because they believe that first-time buyers are easy to fleece. And unfortunately, they are usually right.

You must change this dynamic and go as senior buyer and tough negotiator. You must do your homework and find out what the bottom line is the broker (which is not hard to do), get a quote by e-mail to you and to begin negotiations on pH.