Just got an email telling me that I've been accepted to grad school! I had missed the deadline to apply for the Spring 2007 semester so I had indicated that I wanted to start in the summer... but they are wanting me to start in the Spring. Yea! I'm stoked. 
Well, to continue with DH's new car saga... I've finally convinced him to go with a used car. We found a car we both want but the dealer is asking way too much for it. Kelley Blue Book says the retail value is $16k and the dealer is asking $20k. Of course, we know that they always mark them up so that haggling can occur... but you think they'll come down $4k? We usually buy our used vehicles from CarMax where there is no haggling so we are unsure as to how much regular dealers will negotiate. Also, has anyone ever bought a car with a credit card? We have a credit card at a fixed 4.9% interest rate for purchases, zero balance that we'd rather put some of the expense on vs. getting a car loan, etc. We'll probably need to borrow $10k. Are dealers okay with buyers using credit cards? If we do end up borrowing the $10k, believe me, we'll have it paid off relatively soon as I don't like the idea of having anymore debt than necessary.
Grad school
December 4th, 2006 at 08:08 pm
December 4th, 2006 at 10:09 pm 1165270180
DO NOT, I repeat: DO NOT tell them how much you can afford a month when they ask you. Just say something to the effect of "It depends on the car...". When they know how much you're willing to pay, or how much you can afford a month, all their numbers will be around that, instead of focusing on the car... That's another mistake we made!
When you go to the dealership, show the dealer you like that car, but that it's just a car and you can as easily go somewhere else, that way they'll be more inclined to lower their price.
To answer your question: I've never bought a car on a card. The one we have now is finance for 5 years, planned on paying in 3 1/2.
By the way... Congrats on the school!!!
December 4th, 2006 at 11:35 pm 1165275323
December 5th, 2006 at 01:08 am 1165280920
From my experience, there's ALWAYS room to haggle when buying a car. The key is never to be in a rush. Never accept the first offer, and don't be shy about stating you think it's too high! The dealer will 99% come down a little in his counteroffer. I would bring the KBB as well as any other pricing resources you were able to find, then very calmly go through and explain how you came to your lower pricing for the used car. When faced with evidnce, it's much harder for the dealer to quote the high price. And remember, you can always walk away. Good luck!