[rpc180]

I'm gonna be financing through Mazda since they have a 3.9% for 60 months. I don't want to get taken for a ride on extra padding fees and stuff. As far as I know, these are unavoidable:

Documentation ($40)
Plates ($80?)
Tire Recycling ($12.00 in NY)

What are the ones I should watch out for?

Gap Insurance
Rustproofing (all cars got rustproofing standard, right?)
Prep Fee
Destination (already included?)
Extended 100,000 Warantee (I can extend it towards the end of the initial one right?)
Any others that I'm missing / should watch out for?

Any advice on not getting hosed? I've bargained the price down to $17,500 - $17,750 on a S sedan with ABS/EBD, Moonroof, and Spt Package.

 

[mz6zoomzoom]

Seems good to me, and yeah you can extend later.

 

[schulkw]

There is an article on Dateline MSNBC about dealerships ripping people off. You may want to check it out.

I got GAP insurance (~$180) just in case someone hits me and I don't get screwed. Taxes, plate fees, etc are unavoidable. Destination is already included.

 

[earl_s]

When I used to sell cars I highly recommended buying GAP insurance unless the buyer was putting 15% down. I didn't get any kickback or anything if they bought it, but one of the first cars I sold was to someone who was a young person and just got a job and bought a nicely equipped 626 (the 6's weren't out yet) A few days later some idiot rams him and totals his car. The insurance company only gave him what his car was worth, not what he owed on it. He ended up having to buy another car and structuring $1500-$2000 into a new loan, and now had no money to put down. If he had GAP insurance it wouldn't have been as bad. As long as you put enough down that you can eat up the inital depreciation, you really don't need it, but if you only pay your taxes and fees, or put nothing down (I think Mazda makes you put 10% down for their special financing) GAP isn't a bad idea.

 

[icecube]

so GAP is for when u crash your car and they give u r new one? or am i miss understanding somethign here?

Or can she one tell me waht GAP lol

 

[schulkw]

so GAP is for when u crash your car and they give u r new one? or am i miss understanding somethign here?

Or can she one tell me waht GAP lol

For example:

You pay $20,000 for your car and get gap insurance.

The minute you drive off the lot, your car is only worth $15,000.

On the way, someone hits you (or you hit something) and your car is totaled.

The insurance company will only give you what your car's value is which is $15,000.

Now you owe $5000 to the bank, but since you have gap insurance, it covers $5000 so you're not out that much money.

 

[dinu01]

GAP pays the difference b/w what you owe on your car loan and what the book value that your insurance co. would usually pay you.

 

[rpc180]

Thanks for clearing up what GAP insurance was! What happens if you do drop more than 15% on the down payment and you don't have GAP?

 

[schulkw]

Thanks for clearing up what GAP insurance was! What happens if you do drop more than 15% on the down payment and you don't have GAP?

As long as you owe less than your car is worth, you should be fine.

 

[MARKPMM]

If the dealer is really "rust proofing" the car ask them to watch the process on another car.

MANO already paid the dealer 1.0-1.5 hours labor to "prep" your car.