QuestionRoger,
Thanks for taking this question. I am a first time buyer (second car - this is the first that will be on my credit) in the market for a used car. I am close to buying an 06 CTS with 45,000 miles on it. I am worried that this mileage is too high and I may suffer expensive repairs sooner rather than later. I want to upgrade from the 4cyl compact I've had for the past 7 years though. Do you know anything about this particular vehicle when it reaches high mileage? Also, any advise on alternatives, if this isn't wise? Finally, any advise on financing and negotiating a price? Thanks a lot. FYI $4500 down/60 months w. overpaying is what I'm looking at - price ODO is 17500 right now
Answer
Roger Alvey - Car guy!
Peter,
I got you question and am working on it between phone calls my email is roadloans@gmail.com hit me back and let me know what state you are in also:
1) any idea on what your credit score is?
2) Was your name on the first car loan in the 1s or 2nd position?
3) Job time
4) Time at current residence
5) if less than 3 yrs then time at previous residence
6) YOU ARE PUTTING WAY TOO MUCH MONEY DOWN!!!!! I will address this in my answer
7) Anything bad at all on your credit burea
8) what is it exactly that you like about the CTS?
get this info back to me and tell me how late you will be up and I will get this back to you tonight or it will b waiting for you in your mailbox in the morning
Roger
Subject: Used 06 CTS 2.8V6
Question:
Roger,
Thanks for taking this question. I am a first time buyer (second car - this is the first that will be on my credit) in the market for a used car. I am close to buying an 06 CTS with 45,000 miles on it. I am worried that this mileage is too high and I may suffer expensive repairs sooner rather than later. I want to upgrade from the 4cyl compact I've had for the past 7 years though. Do you know anything about this particular vehicle when it reaches high mileage? Also, any advise on alternatives, if this isn't wise? Finally, any advise on financing and negotiating a price? Thanks a lot. FYI $4500 down/60 months w. overpaying is what I'm looking at - price ODO is 17500 right now
Hi Mike,
My first thought was "oh no ...don't buy a CTS!" -on the planet, not to mention must faster than you will be retiring the principle balance on your loan. There is an old joke among some car dealers where the punch line something like "And the Cadillac owner was going backwards the fastest and he had a 0% loan!" (You had to be there...) that said we just wholesaled an 06 STS w/ 36k miles and a wholesale book value of $23,500.00 this car had the handling pkg etc. and was a custom order with an MSRP of almost $70,000.00 3 1/2 yrs and 36k miles ago. The car was nice but sat around through 2 book changes and we finally ran it at the auction and got $16,800.00 for it. Almost $7,000.00 back of book! The worst part is in 3 more years and 36k more miles the car will be worth 5-7k bucks! Max. So what does all that have to do with the CTS ...the STS is the grown up version of the CTS. Both cars are fast sleek and cool they are also subject to rapid immediate depreciation syndrome, and phantom electrical issues that you have a better chance of winning the lottery than fixing! I can't remember my log in but Phoenix has a Manheim Auction (Greater Phoenix Auto Auction I think it's called) and that means they also have what is called the MMR (Manheim Market Report) for your area. What that will tell us is exactly what the car you are considering purchasing sold for at auction in your area during the last 30 days. For instance the bath we took on our STS two weeks ago is represented in the MMR for the PNW region. If you are set upon buying a CTS DONOT use the blue book value as a guide to determine the cars relative value. Tell your broker to show you (not tell you about) what the MMR on the car he finds is. For Caddies, it will blow your skirt up!
What would I buy in your shoes? There are 3 choices you should really consider:
1. BMW 3 or 5 series (take a look at what $15-20,000.00 buys in these cars ...in my opinion there is not a better driving car around than the BMW unless maybe it's the .....
2. Audi A6 Bi Turbo - WOW! Luxury and performance de jour and they look cooler than hell.
3. Lexus IS 250, 300, or 350 Fast economical and very cool looking- This is what my ex wife drives
Just so you know the auto group started and mostly owned by my Great Uncle: Kuni Automotive Group owns franchises for all of the automakers (including Cadillac) mentioned above so my viewpoint is not influenced or jaded by any unspoken loyalties. Cadillac does make a good 6 Cyl engine with lots of balls, but you are young and the Cadillac brand says "Luxury and elegance and old money and old people" the 3 I mentioned say "young, cool, sophisticated and suggests that your star is on the rise " which translates into .... Well you know...attention. Go drive a BMW and an A6 Bi-Turbo Audi or even an A6 with a normal 6 Cyl and you will immediately know what I am talking about!
Financing: Find a credit union and get your self pre approved for the auto loan before you go to the dealership to buy. This will also allow you to go bottom fishing on Craig’s list from desperate private parties there are some really incredible buys there if you look for them. I WOULD NEVER GET FINANCING THRU THE DEALER UNLESS THEY ARE ABLE TO SIGN ME UP DIRECTLY THRU THE CUDL SYSTEMJ WITH MY OWN CREDIT UNION.! that's one of the 3 ways they have to beat you ...you took the first one away by selling your trade ...call or go to the websites of 3-4 credit unions in your area and ask them if they have a 1st time buyer program (I know your not a 1st time buyer but sometimes that program will give you a better rate than you will tier for w/ a 666 (change that score at least 1 pt up or down please) you can apply for the loan online w/ out being a member and some even have instant decisioning. To do this ...make up a fantasy car you might want to buy ... price it to yourself at the kbb.com private pty value less $1,000.00 cash dn and submit it that way (trust me) then when they call tell the lady the car you submitted the application on sold to someone else but you are still looking and then if they have approved you (and they will) check the rate they quote you and use that for your payment simulations. Then go set up a share account with them right away then go drive a BMW and an AUDI and the LEXUS and then find a car you like and buy it! Credit unions will give you ridiculous terms make sure you ask the rep who you talk to when you apply what the max term for that amount of money, and the yr and miles of the car you want are. FINALLY! go to www.questez.com and download the vb-6 package and the F and I Package and install them ...this is a free auto finance F and I package that alot of independent dealers use and it will everything including leases and is alot more fun to play with than a payment calculator and lastly, keep me posted with what you are doing and feel free to ask any stupid questions along the way.
We live and die on the web site you found me at with out feedback ratings numbers given to us by the people we help and answer questions for. If there is any reason at any time you are not abele to give me straight 10's the before you send in your rating get to me and tell me what else I can do to help!
Thanks and good luck
Roger
P.S. what rate were they quoting you?
Roger
Excellent information! Thanks. One follow up: you mentioned that I should put more than a 1000 down. Why not? My logic there is - it is less to finance and ultimately pay interest on which brings my monthly payments to a level that is do-able. If I don’t, cars like the Audi and even the Cadi are no longer in the picture when I'm financing such a large amount.
Mike
Don't put the money down with the dealer ... if they arrange your financing thru CUDL w/ a credit union then pay it immediately after you take delivery and they will re-index your payments if you do the loan directly then you can do it at the time of purchase ... money down w/ a dealer = more gross profit for him. You should never negotiate a car deal at the dealership...only on the phone or internet and stay off the terms w/ the dealer ..price price price thats it! The minute he gets you talking payments your done. Thats why you have the quest ez program ...to figure your own payments... I was asked to post this answer thru the normal allexperts system...so you may see it again roger
