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Went in to see a Toyota dealer here in the East Coast. Test drove the 2019 SE. I love how smooth it rides and handles.

The Dealer's offer is as follows:
0 downpayment, $844 for 72 months.

What do you guys think? Does this price seem fair? This is for the 2019 FWD SE Standard package. Thanks!
 

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Not sure you have the numbers quoted correctly. $844 for 72 months would be paying over $60,000.
 

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That's a terrible, horrible deal. Assuming that car costs $40,000, you're paying close to 15% interest. Also, buying a car by focusing on a monthly payment is a very bad idea. It's confusing and leads to being offered horrible deals (like what just happened to you). Instead, negotiate a total price first and then determine the monthly payment by negotiating and adjusting your down payment, trade-in, interest, and loan term.
 

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Went in to see a Toyota dealer here in the East Coast. Test drove the 2019 SE. I love how smooth it rides and handles.

The Dealer's offer is as follows:
0 downpayment, $844 for 72 months.

What do you guys think? Does this price seem fair? This is for the 2019 FWD SE Standard package. Thanks!

Check websites like Edmunds or Cargurus for prices:
https://www.cargurus.com/Cars/new/s...wCarTab_false_0&selectedEntity=d308&zip=14201


Shop around. Contact dealers via their online chats and get quotes from various dealers before you buy.
Also, start with the price, not the monthly payment.
 

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Went in to see a Toyota dealer here in the East Coast. Test drove the 2019 SE. I love how smooth it rides and handles.

The Dealer's offer is as follows:
0 downpayment, $844 for 72 months.

What do you guys think? Does this price seem fair? This is for the 2019 FWD SE Standard package. Thanks!

Is that Canadian or US dollars?
 

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As mentioned above, focus on negotiating the price first, then shop around for the best loan rate. Focusing on the monthly payment is not a good idea.

Be careful of $0 down offers. The minute you drive the car off the lot you will be in a negative equity situation.
 

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Take a look at these 12 new car buying tips.

https://cars.usnews.com/cars-trucks/tips-for-negotiating-at-a-car-dealership

The concept of negative equity is this. Let's say you negotiate a price for a new car for $30,000. The minute you drive off the lot, the car is now used and the price you could sell the car for is $27,000. You have negative $3000 in equity since the car is worth less than the amount you owe on the loan you took out to buy it.
 

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Thanks for the info. What would be the recommended down payment if ever to avoid having such a negative equity?
That would depend upon a few factors, including your negotiated interest rate, taxes and other fees, the re-sale value of your car, and any rebates that come with the car. As a general rule, my credit union loan department advises a 20% down payment to avoid long-term negative equity.
 

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Thanks for the info. What would be the recommended down payment if ever to avoid having such a negative equity?
According to my licensed Certified Public Accountant wife, the only appropriate down payment on a depreciating asset such as a vehicle is 100%.
 

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This reads like the OP needs the advice given to always negotiate the price first, and then some basic education on finance.

There have been a few times in life when a finance package was worth considering but overall I’ve done best by an outright purchase after negotiating a good price. One perfect example was our mode of accumulating cash for home downpayment. It made sense to have more down on the house and take not bad fees and terms for a 0% finance deal.

When we did that (above) the finance manager was not too happy that I’d already negotiated a price and was going to walk over anything less.

It’s harsh but I always felt you need to look in the mirror and call yourself foolish to ever do a car purchase without knowing the dealer cost and the cash price for the car.
 

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Crazy financing cost, must be from a dealer.

A Credit Union auto loan at 3% on 40,000 for 6 years is $607 monthly for a total of 43,758.

Get your own loan and if you want, get a Toyota Platinum zero deductible warranty. I bought my warranty from another dealer for way under the $1,500 many mention.
 

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Went in to see a Toyota dealer here in the East Coast. Test drove the 2019 SE. I love how smooth it rides and handles.

The Dealer's offer is as follows:
0 downpayment, $844 for 72 months.

What do you guys think? Does this price seem fair? This is for the 2019 FWD SE Standard package. Thanks!
You're Asian... how come you didn't do the math?... I can say this cause I am Asian, too...
 

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According to my licensed Certified Public Accountant wife, the only appropriate down payment on a depreciating asset such as a vehicle is 100%.
Yes and NO. The real answer is it depends. Yes the asset is depreciating but one needs it a firm or a family and therefore it must be purchased or leased. In a lease the whole lease payment is written off as expense, no depreciation etc to worry about. Under special tax consideration the whole purchase or major portion could be written off then buy we must. Now cash or charge depends on the real cost of money. If the manuf is offering zero percent then its like why tie up your money in the deal. There is a fly in the ointment generally as the manuf will offer a cash discount if you don't take the zero percent and there in one has to judge if its more valuable to the company or family to sacrifice the few bucks of discount for the "free money". As to gap insurance the car depreciates a horrendous 20 percent or more when driven off the lot and so if you wreck it the insurance co will only give you 80 percent or less while the full cost would be on your head because the car got wrecked on the way home on it maiden voyage!! LIberty insurance offers this gap policy at no cost!!! so they will pay you the full value. A friend purchased a vehicle on way home the brand new buggy was splashed by a mud puddle so a detour to the car wash just up the road from the house. Trying to sneak the buggy into the garage to surprise the spouse and in the excitement the buggy went through the wall at the end of the garage right into the house YEA the wife was surprised alright but all was good as there was gap insurance to get a new one. Dealer was really really happy to sell two instead of one too.
 

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Yes and NO. The real answer is it depends.
My comment was in regard to a vehicle obtained for personal, and not business, use.

A more important questions is: Should one buy an asset with funds he hopes to earn in the future accomplishments or with funds earned through past accomplishments.

When we council people about finances, we remind them that what they own is theirs and, normally, cannot be taken away. An asset that is leased or bought on a time payment plan can be lost in event of health issues or economic downturn.

We saw many financially overextended people lose assets during the economic downturn that started 10 years ago and have known a few that have lost or who are currently losing assets due to unexpected health issues including one recently critically injured in an accident.

And there is simply the psychological and real financial power that comes with not owing anyone.
 

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Geezer 1 comments are rock solid advice for anyone to follow and avoid financial folly. Probably 90% or more of peoples financial problems result from buying on credit based on what they hope to earn in their extended financial future. By learning patience and planning a person could pay for most of what they need when they need it.

Maybe a mortgage is an exception, but even this can be avoided by buying a cheap starter home and working you way up through homes that fit your budget until you finally get the home you want.

This takes discipline, patience and the ability to delay gratification which are values that unfortunately have been lost long ago for most of our population.
 

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Geezer 1 comments are rock solid advice for anyone to follow and avoid financial folly. Probably 90% or more of peoples financial problems result from buying on credit based on what they hope to earn in their extended financial future. By learning patience and planning a person could pay for most of what they need when they need it.

Maybe a mortgage is an exception, but even this can be avoided by buying a cheap starter home and working you way up through homes that fit your budget until you finally get the home you want.

This takes discipline, patience and the ability to delay gratification which are values that unfortunately have been lost long ago for most of our population.

Mortgage is on an asset that appreciates over time. Car loan is on an asset that depreciates over time.
 
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