Going over the numbers...

DrwMDvs

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Hello all. First time buying a new car and am trying to figure all the numbers out before I get in the negotiating ring. Anyone willing to take a look and see if I'm forgetting something?

I'll break it down for you here:

State: Nebraska (Sales Tax: 5.5%)
City: Lincoln (Sales Tax: 1.75%)

TAX AND LICENSING

MSRP: $23,900
Delivery: $875
Purchase Price (in theory): $24,775

Base Tax(based on NE #s): $340.00

Total Fees: $121.10
Motor Vehicle Fee(?): $20.00
Plate Fee: $3.30 (x2) = $6.60
Wheel Tax: $74
Registration Fee: $20.50
Emergency Medical System Fund: $0.50
Motor Vehicle Cash Fund: $2.00
State Recreation Road Fund: $1.50
County General Fund: $1.50

Nebraska Sales Tax: $1,362.62 (5.5% of purchase price)
Lincoln Sales Tax: $433.56 (1.75% of purchase price)

Total Sales Tax: $1,796.18

TOTAL FEES and TAXES: $2,257.29

TOTAL OUT THE DOOR: $27,032.29 ($24,775 + $2,257.29)

------------------------------------------------

Financing Scenarios

With Tax and Fees included in financing:

Finance Amount(?):$22,032.29 (after $5k down payment)

Percentage Rate: 1.9%(?)

Interest: $418.61

Total Price: $22,450.90

Per Month Amount:
(60)
- $374.18
(66) - $340.17
(72) - $311.82


with Tax and Fees paid out-of-pocket:

Finance Amount(?):$19,775 (after $5k down payment)

Percentage Rate: 1.9%(?)

Interest: $375.73

Total Price: $20,150.73

Per Month Amount:
(60)
- $335.85
(66) - $305.31
(72) - $279.87


Am I right? I'm probably a little bit crazy. I definitely feel like I'm forgetting something, like a dealer fee. If I buy the car in a different county, then I should be charged the different sales tax rate for that other county (1.5% instead of 1.75%), right?

EDIT: BIG thanks to @bhorn for showing me the light. Here are the updated figures:

Tax and Fees included in financing:
Finance Amount:
$22,033 (after $5k down payment)
Total Interest:$1,081 (60) or $1,297 (72)
Percentage: 1.9%(?)
Percentage per month: 0.158%

Per Month Amount:
(60) - $385
(72) - $324


Tax and Fees paid out-of-pocket:
Finance Amount:
$19,775 (after $5k down payment)
Total Interest: $970 (60) or $1,164 (72)
Percentage: 1.9%(?)
Percentage per month: 0.158%

Per Month Amount:
(60)
- $346
(72) - $291
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Last edited:

zroger73

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Without taking a calculator to it and verifying fees and taxes for your area, everything looks correct assuming you're paying full MSRP with no accessories.

Most dealers will try and charge a "doc fee" between $50-$1,000. I don't pay that and suggest you don't, either, but that's none of my business. I just wanted to point that out as something that might be missing.
 

cypress

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Everything sounds about right without going to the exact amount like mentioned. What is the max you are looking to pay a month? I would try to go $60 months if it all possible or if you are gonna go 72 then pay more each month to pay it off quicker.
 
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DrwMDvs

DrwMDvs

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Ideally I would be at $300/month or below. By the time my car comes in, I may be able to put down more than the $5k specified, but probably not much more considering I want to retain a buffer for emergencies.

From my understanding, interest would be divided amongst the period of the loan (60-72 months) with the rest of the monthly payment going towards principle. Thus, any over payment each month would go straight to principle. If I finish paying the car off early, I would save money by not having to pay off the remaining monthly interest?

So in my second example, with a total interest charge of $375.73, divided by the loan period of say 60 months, would mean a monthly interest charge of ~$6.26 per month. Times that by how many months I pay the loan of earlier equals how much I would save by paying it off early.
 

Psy-q

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Wow we got it good here in Canada - 27,000 USD = 35,000 CAD.

Our Si is about 34,000 CAD out the door and we get the LED Headlights, Turbo badge, Rear heated seats.

Neat.
 


bhorn

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Ideally I would be at $300/month or below. By the time my car comes in, I may be able to put down more than the $5k specified, but probably not much more considering I want to retain a buffer for emergencies.

From my understanding, interest would be divided amongst the period of the loan (60-72 months) with the rest of the monthly payment going towards principle. Thus, any over payment each month would go straight to principle. If I finish paying the car off early, I would save money by not having to pay off the remaining monthly interest?

So in my second example, with a total interest charge of $375.73, divided by the loan period of say 60 months, would mean a monthly interest charge of ~$6.26 per month. Times that by how many months I pay the loan of earlier equals how much I would save by paying it off early.
No, the interest is calculated monthly based the principle. So as you pay down the loan, a larger proportion of your payment goes toward principal, and less goes towards interest.

http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx

Look at the "Amortization schedule" after entering your info.
 
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DrwMDvs

DrwMDvs

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Pur3MotioN770

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You should probably consider GAP insurance, if you weren't already.
 
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DrwMDvs

DrwMDvs

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You should probably consider GAP insurance, if you weren't already.
I will more than likely be getting GAP. Not sure how much more that would cost through the dealer. Is this something I can shop around for, like from my car insurance company?

Another question. Is anyone considering leasing? Pros, cons? Thinking about it only because of the possibility of Honda doing a refresh on the Si by the time the lease is over. Would I for sure be able to buy the car at the end of the lease? Honda's leasing site hinted that you might not have that option if the car is valued less than what the lease originally expected.

Any cons to pre-applying for a loan via Honda's financing website?
 

Pur3MotioN770

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With the dealer, I believe you'll pay around $800. As far as I know, you can shop around for GAP insurance. Not sure about providers though.
 


Wizerud

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Just make sure you don't mention anything about a monthly payment to the dealer. Sometimes they'll try and back you into a corner requesting this info. Just stick to your guns and tell them that so long as the other numbers (total OTD price, finance rate) are satisfactory the monthly payment will be whatever it will be.
 

bhorn

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Definitely go get some rates from banks and credit unions before ever going to the dealer finance manager. When the FM says "the best we can do is..." you can quickly shoot back with your other offers.
 

zroger73

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In my search today, I found a dealer 2.5 hours away who has a white sedan in transit that is due 5/26-5/30. Here are the emails that were exchanged over an hour:

Me: "26,500 cash OTD. No accessories. Not test-driven. Deal?"

Dealer: "Thanks for your inquiry on this vehicle. That car will be sold sticker plus accessories. If you are willing to do that I can take a deposit. They are not discounting that car sir. Thanks"

Me: "Thanks for the quick reply. I may be willing to pay MSRP plus tax and title (26,500), but only if I can get the vehicle exactly as it is delivered off the transport truck before you add any accessories. Again, I'm interested in the vehicle only as it comes from the factory with no accessories. My offer would give you a profit of about $2,200 including your holdback. I think that's more than fair for a quick, easy sale of a Honda Civic here at the end of the month. After all, we're not talking about a Type R here. ;) I understand delivery is expected between today and Tuesday. Can you track the vehicle and tell me exactly where it is?"

Dealer: "I appreciate all the research you have done sir. They are selling that car at sticker plus accessories. They have made that clear to all of us. We are receiving a limited amount of those cars and already have customers lined up. Thanks again, and I wish you luck in your search!!"

Me: "I understand. I'm willing to pay sticker ($24,775) + tax and title. It doesn't come with accessories from the factory - that's something dealers don't add until the truck comes off the transport. I'm not sure we're on the same page here."

Dealer: "We are on the same page. They will be adding the accessory package to that car when it comes of the truck. Before we sell it"

Me: "I see. Why must you do that? Why can I not purchase the car I want without it being modified from the factory with dealer-installed accessories that I do not want? I'm trying to throw money at you guys - I'm going to buying an Si SOMEWHERE in the coming days/weeks."

Dealer: "I understand. On just about any other car they would be willing to do what you are asking. On this specific vehicle they will be selling it sticker plus accessories."

Me: "Well, since you 'have customers lined up' and it's been on sale for two weeks now and still hasn't pre-sold, let me know when you're ready to take my offer and I'll make the 2.5-hour trip..."

Dealer: "If the vehicle isn't sold/contracted when it arrives the vehicle receives our normal standard accessories."

Me: "What accessories do you install?"

(He didn't answer my question.)

Dealer: "We don't take pre-sold offers on specialty units. It's first come, first serve which is the reason why it's not pre-sold."

Me: "The Si isn't a 'specialty' car with a limited production run. It's a lowly little Honda Civic trim level that is outclassed by the GTI, ST, and WRX. 45 minutes ago, you said you would 'take a deposit' if I agreed to sticker + accessories and now you're saying they're first-come, first-served and you don't take pre-sold offers. A deposit 'takes the car off the market' so that it won't be sold to anyone else, so which is it? I'm not trying to be a jerk here, but I buy too many cars and there are too many other dealers around to play these types of games. I contacted your dealership because you're getting my preferred color choice sooner than other dealers."

Dealer: "The vehicle will be here today at 2:30pm and my sales staff has already informed other customers and we have three appointments on the unit today. I am not sure if I am much help if you can't come sign the paperwork today."

I haven't responded, but it's funny how the conversation turned and is beginning to sound like I could go pick it up this afternoon for $26,500 OTD. I'll work on them a little more. Haha!
 

Wizerud

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I wouldn't waste my time on them. It's clear they are only interested in padding their profits by the insane mark-up on accessories + installation. I'd not deal with them on principal. This is not a piece of jewelry. It's a Civic. And not a limited one at that.
 
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DrwMDvs

DrwMDvs

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In my search today, I found a dealer 2.5 hours away who has a white sedan in transit that is due 5/26-5/30.
No white sedan within 730+ miles of me :( too far for me.
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