[onetechyguy]

Hi. I was at the dealer today and was negotiating on the speed3 sport. Dealer will sell me the car for 22500 + ttl. They offered me 12000 on my 2004 mazda 3s with 35000 and in mint condition. I was hoping to get 13 for my car. I owe about 12 so I won't be upside down, but confused on what do do?...Does this sound like a good deal, or could I do better?..They also told me that mazda finance has interest rates of 4.9 & 5.9 for 60 months for people with good credit if you can't do the 1.9 for 36. What should I do?..lol..I love my car, but the speed 3 is a blast to drive...Thanks

 

[mattleegee]

i traded in my 04 mazda3 for a 07 speed3

would do it over and over again if given the option, well worth it

Maybe try to get more for your trade
They gave me $14,000 for mine and it had bald tires and a scratch on passenger door
5door hatch-Sunroof-Leather-TPMS-6disc-HID-ABS (everything but navigation)

Then also think about sales tax
When you trade in the car you pay less sales tax because you only pay the difference from your trade

I forgot what MSRP was on the Sport model, but if i remember right you are getting a couple hundred off that ( Think msrp is $22835)

 

[mattleegee]

This might help a little

http://www.mazda3forums.com/index.php?topic=55798.0

 

[Boost Addict]

[quote author=onetechyguy link=topic=72151.msg1270651#msg1270651 date=1174023115]
Hi. I was at the dealer today and was negotiating on the speed3 sport. Dealer will sell me the car for 22500 + ttl. They offered me 12000 on my 2004 mazda 3s with 35000 and in mint condition. I was hoping to get 13 for my car. I owe about 12 so I won't be upside down, but confused on what do do?...Does this sound like a good deal, or could I do better?..They also told me that mazda finance has interest rates of 4.9 & 5.9 for 60 months for people with good credit if you can't do the 1.9 for 36. What should I do?..lol..I love my car, but the speed 3 is a blast to drive...Thanks
[/quote]

Consider the following perspective...

My guess is that youve paid close to $8,000 in payments/downpayment on your current 3. The dealer is willing to wave a wand over your $8,000 to turn it into $12,000 toward the purchase of a new car. This is a good time to trade if you really love the Speed3.

Its good for you, because you invested $8,000 and now its worth $12,000 (about $4k in your benefit). Its good for the dealer because while he gives you $12,000, he makes $3,000 by selling your pristine/mint car as a LOW MILES 2004 model for around $15-16k...

The way I see it, in your personal situation. If you want your money to work for you, buying the speed3 is a good option... Everyones situation is different. In this case, the balls in your court, most people are sitting upside in a car deal. You can spend the next year wanting this car, like me.. But I have goals to meet and no trade-in... I sold my mustang, so cash isnt a problem. I'm waiting to compare models and build a downpayment for a home... I can wait. But for your situation, I would strongly suggest you make a move if you love the car. Your car is losing value by the day and mile, keep that in mind.

If you agree, you should walk in there and draw the bottom line... "The only way Ill be able to make this deal is if you work with me... Get me 13k on my Mint trade-in and Ill drive the speed3 home TODAY"

Pull a string or two, let them settle somewhere between 12k and 13k... 12k is fair for a trade in of your car... but 13k would be awesome. The price of the car sounds very fair. Below MSRP is great for a one-off Limited Edition car.

As far as financing goes 4.9-5.9 is GARBAGE for good credit at 60 months. Ask the dealer to work with you on the financing... What you want is basically a one time credit check that sends your information out to all the banks in their system, the banks then respond immediately with an offer. Take the lowest bidder

My salesman told me about that one, Im not sure if all dealerships will work with you to that extent, because they make money on the financing... But its something theyre able to do, if they genuinely want to help you obtain the best deal, with the biggest smile on your face (which youll tell like 20 people about your great experience), and a modest profit for them

 

[PeterSellers]

[quote author=Boost Addict link=topic=72151.msg1270776#msg1270776 date=1174029672]
[quote author=onetechyguy link=topic=72151.msg1270651#msg1270651 date=1174023115]
Hi. I was at the dealer today and was negotiating on the speed3 sport. Dealer will sell me the car for 22500 + ttl. They offered me 12000 on my 2004 mazda 3s with 35000 and in mint condition. I was hoping to get 13 for my car. I owe about 12 so I won't be upside down, but confused on what do do?...Does this sound like a good deal, or could I do better?..They also told me that mazda finance has interest rates of 4.9 & 5.9 for 60 months for people with good credit if you can't do the 1.9 for 36. What should I do?..lol..I love my car, but the speed 3 is a blast to drive...Thanks
[/quote]

Consider the following perspective...

My guess is that youve paid close to $8,000 in payments/downpayment on your current 3. The dealer is willing to wave a wand over your $8,000 to turn it into $12,000 toward the purchase of a new car. This is a good time to trade if you really love the Speed3.

Its good for you, because you invested $8,000 and now its worth $12,000 (about $4k in your benefit). Its good for the dealer because while he gives you $12,000, he makes $3,000 by selling your pristine/mint car as a LOW MILES 2004 model for around $15-16k...

The way I see it, in your personal situation. If you want your money to work for you, buying the speed3 is a good option... Everyones situation is different. In this case, the balls in your court, most people are sitting upside in a car deal. You can spend the next year wanting this car, like me.. But I have goals to meet and no trade-in... I sold my mustang, so cash isnt a problem. I'm waiting to compare models and build a downpayment for a home... I can wait. But for your situation, I would strongly suggest you make a move if you love the car. Your car is losing value by the day and mile, keep that in mind.

If you agree, you should walk in there and draw the bottom line... "The only way Ill be able to make this deal is if you work with me... Get me 13k on my Mint trade-in and Ill drive the speed3 home TODAY"

Pull a string or two, let them settle somewhere between 12k and 13k... 12k is fair for a trade in of your car... but 13k would be awesome. The price of the car sounds very fair. Below MSRP is great for a one-off Limited Edition car.

As far as financing goes 4.9-5.9 is GARBAGE for good credit at 60 months. Ask the dealer to work with you on the financing... What you want is basically a one time credit check that sends your information out to all the banks in their system, the banks then respond immediately with an offer. Take the lowest bidder

My salesman told me about that one, Im not sure if all dealerships will work with you to that extent, because they make money on the financing... But its something theyre able to do, if they genuinely want to help you obtain the best deal, with the biggest smile on your face (which youll tell like 20 people about your great experience), and a modest profit for them
[/quote]

I'm confused...he still OWES 12k on his current car, and they'll be giving him 12k so he'll be breaking even. He won't have any extra money for a down payment, so how is he benefiting from this?

 

[Boost Addict]

he owes 12k.. sure, but he hasnt PAID 12k... hes paid 8k. The vehicle has becoming an investment for him..

Heres an easy example:

I loan you a $100 cd player and ask that you pay me $10/month for it. After 4 months, youve paid $40.

You come over my house and see a NEW CD player thats $150 dollars. I offer to take your existing cd player off your hands and give you $60 to use toward purchasing the NEW $150 cd player... So with $60 being your down payment, youre left to finance $90.

After paying $10 a month for 9 months, you own a $150 cd player that you paid $130 for.

Make sense?

 

[proclam]

Work out the deal as he said with adjusting how much they are willing to give you on your trade. Here is the kicker though. Already have financing lined up. That is what I did. When I bought it the Ford financing(that is who owns and operates Mazda's bank) was raping people(still are it seems). So I already had my much better loan in my pocket. Have them agree to the price of your trade and the new car. Let them write it up, and then wham. By the way I have an outside loan, here is the check. Hope that isn't a problem for you. Good luck.

 

[Kinny]

[quote author=Boost Addict link=topic=72151.msg1270825#msg1270825 date=1174034760]
he owes 12k.. sure, but he hasnt PAID 12k... hes paid 8k. The vehicle has becoming an investment for him..

Heres an easy example:

I loan you a $100 cd player and ask that you pay me $10/month for it. After 4 months, youve paid $40.

You come over my house and see a NEW CD player thats $150 dollars. I offer to take your existing cd player off your hands and give you $60 to use toward purchasing the NEW $150 cd player... So with $60 being your down payment, youre left to finance $90.

After paying $10 a month for 9 months, you own a $150 cd player that you paid $130 for.

Make sense?
[/quote]

Um, no. He paid 17-19K for a new car. It just so happens that he still owes 12K on it and the dealer is willing to pay that for his current car. Yes, he is fortunate that he is not up-side down in the loan, but by no means is his car an "investment" (very few EVER are, unless you have the money to buy an original Shelby Cobra). He has merely paid the difference + interest to drive it for 3 years. There is still the $22,500 left to pay for the speed.

You have to judge whether or not you can afford the car. The dealer is going to low ball you on your trade, period. They have to be able to turn around and make a profit on the re-sale, whether they send it to auction or trade it in themselves. If you truly want to maximize the sale for the car, then sell it yourself. One other thing to consider is trying to see what Car Max will offer you. They seem to be a little better.

Since it is obvious that you will be making payments, calculate the monthly payment based on the full purchase price of the car + tax. There are tons of calculators online to do this. If the payment at the lower interest rate is borderline for you, don't do it. It would be a shame to get in trouble financially over a car. Go for the higher rate and pay extra every payment when you are able. Just remember that if you decide you want to trade up to another car in a couple of years, you will likely be up-side down in your loan at the longer time span and will not be able to break-even on the trade.

It may be a good idea to call your insurance agent to verify that your insurance will not go up significantly. Also, if your state has property-taxes on vehicles, that is going to spike as well with the new car.

 

[proclam]

Screw Carmax, they will only give you wholesale. Bah.

 

[Kinny]

[quote author=proclam link=topic=72151.msg1270908#msg1270908 date=1174046718]
Screw Carmax, they will only givey you wholesale. Bah.
[/quote]

That is your experience. I am aware of several others who have received significantly better prices for trade-ins than what dealers were offering them. That being said, the best thing to do is to sell your car yourself.

 

[bearda]

[quote author=Kinny link=topic=72151.msg1270895#msg1270895 date=1174045649]
Um, no. He paid 17-19K for a new car. It just so happens that he still owes 12K on it and the dealer is willing to pay that for his current car. Yes, he is fortunate that he is not up-side down in the loan, but by no means is his car an "investment" (very few EVER are, unless you have the money to buy an original Shelby Cobra). He has merely paid the difference + interest to drive it for 3 years. There is still the $22,500 left to pay for the speed.
[/quote]

Yeah, I gotta agree with Kinny on this. There is no magic wand here. The dealer isn't going to take over his payments on the current car, the dealer's going to give him the 12K for the car which will probably be used to pay off the rest of the OP's loan. It really isn't going to help him buy a Speed3 at all, it'll just help him get square on his current car and make room in his driveway. Selling your car doesn't erase anything you still owe on it.

[quote author=Boost Addict]Heres an easy example:

I loan you a $100 cd player and ask that you pay me $10/month for it. After 4 months, youve paid $40.

You come over my house and see a NEW CD player thats $150 dollars. I offer to take your existing cd player off your hands and give you $60 to use toward purchasing the NEW $150 cd player... So with $60 being your down payment, youre left to finance $90.

After paying $10 a month for 9 months, you own a $150 cd player that you paid $130 for.

Make sense?[/quote]

No, it really doesn't. You need to look at this as one party supplying the initial loan, and another one offering to sell you the $150 CD player (the dealership selling him the Speed3 isn't the same company he's financing his existing car from, after all).

Company A loans you $100 to buy a CD player and asks that you pay $10/month for 10 months (I wish I could get financing at that rate...). After 4 months, you've paid $40.

You come over to company B and see a NEW CD player thats $150 dollars. They offer to take your existing cd player off your hands and give you $60 to use toward purchasing the NEW $150 cd player... So with $60 being your down payment, you're left to finance $90 to play for the NEW CD player.

Sounds good, right? Sure, except that since you spent the $60 you got from Company B to pay for your new CD player, you still owe Company A $60 (you have 6 months left of $10 financing). AND you owe Company B $90. So your $150 CD player is going to cost... $150. This is exactly the situation onetechyguy is in now.

THERE IS NO FREE MONEY TO BE HAD BY TRADING IN YOUR CAR.

 

[proclam]

[quote author=Kinny link=topic=72151.msg1270929#msg1270929 date=1174048200]
[quote author=proclam link=topic=72151.msg1270908#msg1270908 date=1174046718]
Screw Carmax, they will only givey you wholesale. Bah.
[/quote]

That is your experience. I am aware of several others who have received significantly better prices for trade-ins than what dealers were offering them. That being said, the best thing to do is to sell your car yourself.
[/quote]

That would be because the dealer was offering less than wholesale on the trade in value. No real surprise there really. Like I said, according to a Carmax rep I dealt with, in most cases they only offer wholesale. The only time that really varies is when they no for sure that it will be on there lot (i.e. brand new car and you are in over your head). Most cars are not immediately accepted for those purposes, which is why they usually offer wholesale value, seeing as they might not keep it due to there resale standards. So as I said, screw em. Selling your car privately is always the best way to ensure you will get the most out of the car. They offered me 3k for my last acura, that was wholesale, which was in immaculate shape with all of the records. Sold it for 7,500. Others' experiences will always vary of course, just letting you know that most of the time their offer is not really all that good. Unless you are in a bind and need to move it fast. However, that being said, I would definitely sell it to them before trading it in though. Not a doubt in my mind that they will beat the dealer on most cars. By how much? Not sure on that. That being said, I am assuming we are all well aware of most dealers unscrupulous tactics of low balling in order to make as much as possible off of your trade. Not that I can blame them, it is business after all. You just have to remember they make a lot more on a used car than a new one.

 

[diablospeed]

I'm gonna answer this argument right here....

2004 Mazda3s 35K... and I don't care if it is perfect.... 11800-12250 for trade-in (could be a little higher with NAVI, ROOF, LEATHER up to 1000)
4.9 or 5.9 for 60 months is a GREAT rate... the average new car rate right now is 7.49 for 60 and about 7.99 for 72. You will need to be top tier (700+) to qualify for this rate. A nice down payment canmove yuo up tiers if you are a little weak.


the point is that if you are paying 400 under MSRP, the dealer is making about 1000 off of you, which is not bad. A sedan 3s will NEVER be worth 15K, but you might be able to squeak an extra 500 out of him to split the difference and make a deal. Your miles are good and a clean car can save them some reconditioning fees.

take the deal if you can get the 500 more... its not bad as it is though.

 

[proclam]

Looked into the values there, he's right. Not bad at all. The only difference is I would still go to a Credit Union. They often beat the market on interest rates. It is what I have always done anyway. Always stayed ahead of the big lenders that way to. Good luck.

 

[PeterSellers]

[quote author=Boost Addict link=topic=72151.msg1270825#msg1270825 date=1174034760]
he owes 12k.. sure, but he hasnt PAID 12k... hes paid 8k. The vehicle has becoming an investment for him..

Heres an easy example:

I loan you a $100 cd player and ask that you pay me $10/month for it. After 4 months, youve paid $40.

You come over my house and see a NEW CD player thats $150 dollars. I offer to take your existing cd player off your hands and give you $60 to use toward purchasing the NEW $150 cd player... So with $60 being your down payment, youre left to finance $90.

After paying $10 a month for 9 months, you own a $150 cd player that you paid $130 for.

Make sense?
[/quote]

Sorry,that makes no sense In the "real world", I would be taking the 60 dollars you gave me for the original CD player and giving it straight back to the bank to pay for what I owed on the original player. Then, I would have nothing for a down payment on the new player.

The 8k "investment" is not an investment at all...the 8k the OP spent on his first car is essentially what he is eating up with the depreciation value of his car the past few years, as well as the tax he's paying on his car loan. Cars are not good investments, and this is exactly why it's a bad idea to buy a new car every couple of years!

 

[Zoom4wrd]

THERE IS NO FREE MONEY TO BE HAD BY TRADING IN YOUR CAR.

Well there is, you do save on sales tax by trading in your vehicle. So technically by trading in a $12,000 vehicle in the NY county I am in it is like putting down $13035.00.

 

[acousticartist]

[quote author=onetechyguy link=topic=72151.msg1270651#msg1270651 date=1174023115]
Hi. I was at the dealer today and was negotiating on the speed3 sport. Dealer will sell me the car for 22500 + ttl. They offered me 12000 on my 2004 mazda 3s with 35000 and in mint condition. I was hoping to get 13 for my car. I owe about 12 so I won't be upside down, but confused on what do do?...Does this sound like a good deal, or could I do better?..They also told me that mazda finance has interest rates of 4.9 & 5.9 for 60 months for people with good credit if you can't do the 1.9 for 36. What should I do?..lol..I love my car, but the speed 3 is a blast to drive...Thanks
[/quote]

For comparison... I got $12,800 in trade on my 04' 6 sportwagon (I owned it free and clear). Very clean (except needed tail light lens cover), with 32k miles on it. I got my MS3 sport for MSRP (back in Jan when they were hard to come by...). One other dealer offered me $11,800... I walked on that. I know I could have sold it for more... maybe $14k or so, but I hate dealing with the stupid phone calls (which in my experience, are 90% or more of them) and I was in a hurry. I paid cash for the balance, and am satisfied with the deal I made. So 12k on your sedan sounds okay to me.

 

[bearda]

[quote author=Zoom4wrd link=topic=72151.msg1271596#msg1271596 date=1174068133]
Well there is, you do save on sales tax by trading in your vehicle. So technically by trading in a $12,000 vehicle in the NY county I am in it is like putting down $13035.00.
[/quote]

OK< that's a good point. There's no free money to be made to the tune of $8,000, however.

 

[diablospeed]

i love you guys...

figure this---
the money you paid while driving your current car IS HOW MUCH IT COSTS TO DRIVE IT. I am laughing here at the discussion because I have heard that same argument a million times. I'm not messin with you, but the amount of money you paid each month should be forgotten about once it is paid out. No sense crying over spilled milk.

I think you are really close here, so do the right thing..... BUY ONE! YOu will not regret it. But you will if they don't make one for next year and there aren't any left.

HAHA!

 

[Zoom4wrd]

[quote author=bearda link=topic=72151.msg1271713#msg1271713 date=1174072098]
[quote author=Zoom4wrd link=topic=72151.msg1271596#msg1271596 date=1174068133]
Well there is, you do save on sales tax by trading in your vehicle. So technically by trading in a $12,000 vehicle in the NY county I am in it is like putting down $13035.00.
[/quote]

OK< that's a good point. There's no free money to be made to the tune of $8,000, however.
[/quote]

Not unless you are trading in a car worth $92753.62 that is!!!