QuestionHello,
I was about to purchase a 2007 or 2008 Ford Escape until I took a ride in a 2008 Explorer. Then that was it, I definitely had my mind was made up. Yeah right. I signed up for www.consumerreports.org and found out that the Escape has a poor rating and the Explorer, although better than the Escape, was not near the ratings on the Toyota Rav4, Hyundai Santa Fe or the Honda CRV. The gas mileage is great, the (lack of) depreciation is much better than the Escape. I’m going to head to the Toyota dealer by my house this weekend.
What I wanted to ask is if you know anything about any of these small-sized or mid-sized SUVs such as the Rav4 or Santa Fe?
There is a Toyota dealer here in Houston that is offering 0% interest. Does that mean that I would be sacrificing any rebates and/or incentives? When I looked into financing a couple of months ago, I got a quote of 6.49% interest on a $20,000.00 loan. I guess I would have to find out how much the rebate would be and then crunch some numbers to see which would be the better deal.
Also, do you have a list of questions that I should ask the salesman as well as a list of questions that I should not ask?
Let’s say I decide on the Rav4, do you think that I would be better off going for a 2007 instead of 2008?
Any other thoughts or ideas that you may think I need to know before heading to the dealer this weekend?
Thank you,
Landon
AnswerHi Landon,
Thanks for your question. I would recommend that you pursue the Rav4 or the Santa Fe. Realizing that when you shop for a new vehicle, I wouldn't always look to see what or how it depreciates over the next couple of years. It is important, but remember that all vehicles will depreciate.
I would recommend really taking a good luck at the Santa Fe. The Rav4 has gotten soft after they collect a few years and a few miles. The Santa Fe will be a better choice for you in the long run. They've got great warranties too.
I would recommend to take advantage of the rebates. If you choose the 0%, your payment is usually higher because it's based on 5 years and you're not benefiting from rebate discounts. So, after a couple to a few years...you may go to trade your Santa Fe and your payoff will be less having taken the rebates. Interest rates are low enough now, that you should benefit from both.
I would approach the salesperson with the idea that you're just getting started in your car shopping and you're looking at a few different makes and models and will make your decision based on price, payment and service after the sale.
Always claim that you're not discussing banking with today's visit but are only looking for best price, etc. Tell them you have made your own arrangements, etc.
Negotiate your deal, and then negotiate your deal again. Don't let them paint you in a corner. As you're getting further into the deal, don't make any commitments until you're sure this is the vehicle you would buy today. And be prepared to buy when they've met your demands.
Another thing I would recommend would be to research other car dealerships via their Internet sites. They will usually give you the pricing and the vehicle you want without all the negotiating hype.
Good luck, and I hope this helps!
Doug
