Check out Enterprise used car sales, plenty of Corollas listed, depending on location. They range in the # of miles they have, but they offer a 1 year warranty. Prices are high but not out of line with the current market, they are not over pricing like your dealer is.
I wouldn’t pay a dime over MSRP for that car. Tell that salesperson to stick that car where the sun don’t shine.
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One thing this person might do is find a used vehicle at a decent price and if a trip is needed that they might not want to take it on then rent a vehicle . At least when prices do come down they will not lose as much money.
you can check out Carvana. they have a few new vehicles and some 2022 vehicles with very low mileage. just a thought.
Then you might not be buying a car right now. It’ll take some searching to find dealers that’ll sell at MSRP.
The car already has an alarm, as well as an engine immobilizer if someone who doesn’t have your key or key fob tries to steal it. They are apparently selling you an aftermarket alarm system, which is not only unnecessary, but is also VERY prone to electronic glitches after a few years, and Toyota’s warranties will not cover repairs to that aftermarket system.
If somebody tells you that something spayed or wiped onto the paint will prevent scratches, they are lying–plain and simple. These pricey dealer add-ons for paint are invisible, so–in reality–you don’t even know whether it is there, or not. Even if it has been applied, it is unlikely to last more than one year or so. Ergo–a scam of the worst sort.
If you want to protect the paint, wax it yourself, or pay an auto detailer to do it for a LOT less than the dealer’s fee. If you want to protect the seats from stains, you can spray them with ScotchGard for less than 10 bucks.
That “Car Doc” might sound like a good deal, but consider this:
What if you wind-up selling/trading-in the car after just a couple of years?
I worked with a woman who bought that type of pre-paid maintenance for her Honda, and when she traded it in two years later, she had barely gotten any value from it.
If you say that you intend to keep the car for several years, then consider this:
What if it is wrecked in an accident?
In that case, you lose a LOT of what you prepaid for that maintenance.
IMHO, that dealership is a scammer of the worst sort. The aftermarket security system probably costs them no more than $250. The paint protectant probably costs them no more than $60–including the labor to apply it. The pre-paid maintenance plan ties you to that scamming dealership for service.
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Thank you so much for your help!! I’ll definitely look somewhere else, but not any other dealer I’m tired of those guys.
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Glad to hear you’re considering the accumulated advice.
An additional consideration should be, what would your insurance company pay you in the event your vehicle is totaled?
Say you paid and financed $25,000 for a MSRP $20,000 car, would your insurer pay you $25,000 you owe or the $20,000 “Value”, leaving you with no car and on the hook for $5,000?
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That’s what GAP insurance is for.
So, then you are going to focus on buying a used car from an individual?
Look for cars being sold by senior citizens. They are likely to have maintained their car properly over the years, so even a car that is several years old could turn out to be a reliable choice.
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This is a VERY important consideration. By definition, a vehicle is only “worth” what it can be insured for, which for a used car is its KBB or NADA book value. In the past, when shopping for a used car, I had to explain this to people who were trying to charge way more than book value for their car. This was before the current market btw, as the last time I bought a used car was summer of 2019. As always, caveat emptor–let the buyer beware.
When you “work” things out with the sales department of a dealership it usually means they played fast and loose with the financing. They “lowered” payments usually mean they have extended the payments out so many years that your car will still be “underwater” long after it qualifies for antique plates…
And to qualify for these “special financing” deals the dealership has probably shopped the “bottom” finance options (equals a higher interest rate…).
But more to the point, EVERY thing is negotiable (except taxes and licensing). That means if the dealership was so inclined, they could charge you $1.00 for the car $22,000 for everything else. Your state will still access your taxes based on the assessed value of the car, not the sale price…
The dealership could absorb the ridiculous price of the Protection Price, since they sent the car out to have this done and they probably paid on a couple of hundred to have it done. You can call around to have your “car” treated and get t quote for the same service.
The Doc Fee is what they charge you to do the paperwork that they are required to do to transfer the ownership to you. Their office staff will probably take a couple of weeks to get around to this (2 hours at $15 an hour…).
As for me, I’ve bought 2 new cars in the last couple of years. I know that car prices have jumped lately, but the theory still remains the same. You need to decide how much you are willing to spend on a car, NOT how much you are willing to pay a month. Once again, the dealer can lowerer the payments out so many years that you may never pay off the car before it wears out…
I simply told the dealership that I wanted a certain car and I was willing to pay a certain amount. I do not care what the fees are, just the bottom line. The dealership will want to know if you are financing because they can juggle the price around if they are arranging financing as they get a “service fee” (kick back) from the finance company. Tell them that it all depends on whether you can come to an agreed price and then you will listen to their finance options. No matter what they offer, you will probably be better off with a car loan from your bank or credit union.
Now, if your FICO score sucks, then much of this is off the table, and you will pretty much be at the mercy of who will finance you. Stay away from any dealership that advertises, “We Finance Everyone!”
Just to prove how negotiable dealerships are, when we bought out 2020 Honda Fit, the dealership wanted $1,200 plus for the 5-year extended warranty. I let my wife negotiate this as she feels this is about as necessary as “tits on a Bull.” It was wonderful listening to the sales rep explain each and every thing it covered and how it was necessary to have this coverage. I thought it was great because I could be like a fly on the wall as he struggled to sell my wife this coverage. He kept lowering the price and how the three levels of coverage (Silver, Gold, and Platinum) provided better coverage. When all was said and done, the Platinum Coverage was $325 if we also bought the side molding, mud flaps, and floor mats (things we already wanted…
Now, the car was not on the lot, supposedly on a truck and due in 3 days. After 7-days, We were threatening to cancel the sale; as we always do, we put a “Time is of the Essence” clause of 5-days and now they were at seven days and the car was still not on the lot. We “Negotiated” a 5-day extension with the provision that the side molding, mud flaps, and floor mats would now be Free with Free installation by the dealer. The car arrived on the 10th day and my wife loves her car, its name is “Eugene…”
Remember, no matter what car they are selling, there is another one just like it around the corner…
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Not an insurance guy but an intriguing question, Say you owed on the old car and they roll the difference into a new loan for a new car. Allstate says “Gap insurance helps pay the gap between the depreciated value of your car and what you still owe on the car.” wow what a moneymaker that could be. Owe 10 grand on your old car, roll it into the new car loan, total it and you owe nothing! Perhaps I do not understand the system.
I don’t know either and never had gap insurance. I suspect though that it works a lot like declining term insurance. So they write it for the total loan but the premiums stay the same (I don’t know if you pay lump sum or monthly) but each month the payout would decline.
We were silly enough to buy declining term on our old house and seemed like a good idea at the time, being broke and not wanting to leave a burden if I bit the dust. But after about 5 years I figured the value and canceled it. At least with gap you don’t have to die to collect it
Gap insurance on our leased car in 2017 was $5 a month.
So same as a declining term policy except you don’t have to die to use it.
From my understanding the negative equity of any previous loan isn’t covered by gap insurance,. Buyer would still be on the hook for the negative equity.
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If your car is totalled or stolen and after your primary auto insurance …
GAP insurance covers the difference between the depreciated value and the remaining balance on your auto loan/lease and is paid to the Lender.
New Car Replacement insurance, typically a 1 year/15,000 mile policy covers the difference between the depreciated value and the cost of an identical new vehicle …
Stated Value insurance, typical for classic or collector cars covers an agreed on amount.
Obviously your cost will vary by the amount of coverage and would add to your annual cost of ownership BUT I have serious doubts that any policy would cover thousands of dollars of “Dealer Upsells” (“Dealer Market Adjustments”, “Miracle Coatings”, “Lifetime Warranty”, “Administrative Costs”, etc.) and would have a serious discussion with my insurance agent before buying.
Your understanding is incorrect. The scenario which you describe (vehicle with a lot of negative equity being destroyed) is precisely the reason why GAP insurance exists. Many people are very upside-down on their car loan from the get-go due to financing dealer add-ons, negative equity from their previous car, etc. In fact, the more upside-down you are, the more you need GAP insurance!
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If you are buying a car from a private citizen, get t car fax. If you are still interested, ask to take the car (or have them take the car) to a “trusted mechanic” (not your bud from work, “Uncle Joe”, or other friend, relative, or even yourself, and definitely not their family mechanic…) at a Toyota Dealer (this car…) or other car make-dealership. If you are afraid of the cost, call now, tell the service writer that you are thinking of buying “such or such” and you would like the vehicle inspected/gone over (not specifically a state safety inspection, but the type of inspection the mechanic might do to certify the vehicle for sale on the lot… Ask them what will it cost, usually $100-$150, depending on level of inspection and your location.
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