Bought a new Mazda CX-5

[bretfraz]

Take it from someone who runs auto credit apps day after day.... 4.79% is a fabulous rate. Congrats. That is excellent for someone with little credit history.

I didn't read if you had made a down payment. Sounds like you rolled $1000 negative equity into the deal. Correct?

Refinancing won't save you a lot unless you dramatically shorten the term. Maybe saving a few bucks every month to build a down payment, then refi in a year or two would be a wise path.

Glad you like the CX-5. I like the CX-7 although reliability is suspect. I think your choice of the CX-5 was better than a 3.

Enjoy!

 

[hattaresguy]

Originally Posted By: Quattro Pete
Originally Posted By: JHZR2
And youll be making payments when the car is 5+ years old and has who knows how many miles.

No he won't. He'll trade it in for yet something else within a year.


My cousin did this for years, that's how she ended up paying $550 a month for a freaken Jetta. Finally she woke up.

 

[Nick R]

Originally Posted By: bretfraz
Take it from someone who runs auto credit apps day after day.... 4.79% is a fabulous rate. Congrats. That is excellent for someone with little credit history.

I didn't read if you had made a down payment. Sounds like you rolled $1000 negative equity into the deal. Correct?

Refinancing won't save you a lot unless you dramatically shorten the term. Maybe saving a few bucks every month to build a down payment, then refi in a year or two would be a wise path.

Glad you like the CX-5. I like the CX-7 although reliability is suspect. I think your choice of the CX-5 was better than a 3.

Enjoy!


I'm putting down $1,900, which I've saved up for just such an occasion. I have quite a bit saved up, so I'm set in case of emergency for a few months, not to mention some savings bonds that are accruing 5% interest. I'm saving those for an emergency.

 

[Nick R]

Originally Posted By: LT4 Vette
Nice choice. I love the color.
72 months is a long time but if you are making good money pay the car off in 48 months or sooner if you can.

Weren't you headed off to college or the Navy... or am I mistaking you for another BITOG member ?




That was before I got this job with Time Warner. I'm spending 6 months in telesales, and then transferring to tech ops. The in home technicians make good money, doing an awesome job. I have a few friends in the job, which makes it even better. I get full benefits, including tuition assistance, and I plan on taking a few online classes.

 

[Mr Nice]

5-6 years from now he will probably be married with kids and will need a bigger car anyways. Plus its a better engineered vehicle than his Chevy.

From the side it looks like a BMW.

 

[JHZR2]

Originally Posted By: bretfraz
Take it from someone who runs auto credit apps day after day.... 4.79% is a fabulous rate. Congrats. That is excellent for someone with little credit history.





And the average American is beyond broke due to poor practices like this.

The CX-5 is an awesome car and on the short list of vehicles I'd consider buying. But buying anything on payments is just a bad choice, especially on six years worth.

That's all we are saying. It is just experience talking for what to and not to do. People can handwave about how tough it is to save money, but poor decisions are far more the culprit than inability to make income.

Pentagon federal offers 1.99 all the time. Hopefully Nick can jump into that or better ASAP and get into a 36 month or better loan.

Of course if there are concerns about steady income or ability to make the payments then more care should have been taken before signing up for such a large purchase.

We don't usually deserve nearly as much stuff as we think we do. Advertising really harms a lot of people.

 

[Nick R]

Originally Posted By: LT4 Vette
5-6 years from now he will probably be married with kids and will need a bigger car anyways. Plus its a better engineered vehicle than his Chevy.

From the side it looks like a BMW.



The AWD will also be a big plus with the winters we tend to have here.

 

[JHZR2]

Originally Posted By: LT4 Vette
5-6 years from now he will probably be married with kids and will need a bigger car anyways. Plus its a better engineered vehicle than his Chevy.

From the side it looks like a BMW.



It sure does and looks like an awesome suv. Can't wait to drive one.

 

[Quattro Pete]

Nick, on a more positive note, what oil are you going to run in it?

 

[Nick R]

Originally Posted By: Quattro Pete
Nick, on a more positive note, what oil are you going to run in it?


I was waiting for someone to ask. I'm considering Eneos 0W-20, which is readily available at my local NAPA. I don't think walmart carries any other 0W-20 here other than Mobil 1.

 

[sciphi]

Sounds like you're coming out ahead for your circumstances. Although we're similar age if I'm not mistaken, and my 36 month car note is well under 3% APR through a local credit union.

I've finally got my Cruze just the way I like it. The transmission is shifting great, the engine is running like a top (and getting 40 mpg indicated with me driving it like I stole it), and the seat fits me like a glove.

And, it's averaged 44 mpg the past few months, and 43 mpg since new. Amazing how two very similar cars can get such radically different fuel economy figures, even with the same engine.

I'm also glad I got a 2012 instead of a leftover 2011. The little electronics improvements and refinements in the 2012 were worth waiting for.

Enjoy the CX-5! Mazda really hit a home run with that, according to everything I've read!

 

[daves87rs]

Congrats man! Liking the color....

 

[HTSS_TR]

My Credit Union offers 2.24% but discount 0.25% for direct payment from either checking or saving account, so the actual rate is 1.99%. Anything above 3% for car loan is too high.

I would open an account with local Credit Union, then try to refinance to lower rate (with shorter term too).

 

[silverrat]

Originally Posted By: Quattro Pete
Originally Posted By: JHZR2
And youll be making payments when the car is 5+ years old and has who knows how many miles.

No he won't. He'll trade it in for yet something else within a year.


We can extrapolate maybe a 2014 Chevy Cruze diesel.

 

[Colt45ws]

I bought a 4 year old car on a 6 year loan. Stupider things have been done. It was my first car purchase and I learned a lot, lets just put it that way.

 

[Hokiefyd]

Originally Posted By: Nick R
I've been growing less happy with my cruze. The transmission is horrid at low speeds, stop and go traffic which I'm in for half an hour on the way home every day. It's jerky, shifts are rough. Once cruising, or at normal city driving it's fine, but stop and go is not pleasant.


I won't give you any advice on financial matters. You didn't ask for it, but I will say that you HAVE received some excellent advice from others here. Just soak it in and maybe consider it the next time you're in the market for a vehicle.

The transmission behavior is one of the reasons I grew displeased with my Camry as well. The transmission programming is SO geared toward efficiency, that it's in the highest possible gear it can be in at any given time, and the TCC is likely locked as well. It makes for a very jerky and disjointed driving experience. If you drive it at 10% throttle all the time, it worked fine. If you drive it at 90% throttle all the time, it worked fine. But if you drive with 25-50% throttle, that was some odd middle ground where the transmission produced some very odd behavior.

It was frustrating, and I grew to really dislike driving the car. So I certainly understand where you're coming from, if the Cruze is how the Camry was.

I trust that Mazda's AT programming is a lot like Honda's. It won't jump into the highest gear by default. It'll hold lower gears as you go up and down hills. It'll downshift as you brake to maximize engine braking and so that it's ready for when you do step back on the accelerator. It's sublime compared to the Toyota's AT programming.

Best of luck with your new CX-5. You'll find out what I recently have. It doesn't matter if you routinely haul kids or dogs or cargo; the packaging and relative efficiency of small SUVs like ours are very hard to beat.

Cheers!
Jason

 

[Sayjac]

Congrats Nick on your newest ride, the CX-5 is getting a lot of buzz for sure. I'm sure the AWD option will be useful in the upstate NY winters, but for me front wheel drive would be enough and prefer the mpg bump and simpler drive train, but that's just me.

PenFed is currently offering 1.99% APR, new and refi. But, you will likely need a longer credit history.

I knew this thread would be entertaining when it was first posted last night, not disappointed.

Enjoy your CX-5.

 

[supton]

I read (RAV4 forum?) that the Toyota automatic might be more willing to hold a gear if cruise control is on. Probably because it's not trying to immediately downshift in order to anticipate possible driver demand. The one Camry I drove in automatic was always downshifting; in retrospect, it might be the one automatic where I would actually want the gear lever on the floor, in a console: around town I very well might just drop it into a lower gear, and make the stupid thing not get into a gear it won't stay in anyhow.

It also doesn't help that I normally drive a stick, and thus am used to being able to use large amounts of throttle change.

I have to say, it's tempting to get a new(er) car with the rates being so low. I'm not sure yet if the yearly repairs on my Jetta are getting to the point where a car payment is cheaper--it'd certainly be less work and headache. Just getting to the point now where I can sock away that car payment, you know, that $400/month or so. Only taken 12 years to get to this point!

Coworker had to buy a new car. [Daily commute is like 110miles, his >10 year old / 20mpg SUV died. The gas savings just about pays for his new Prius.] Let himself get shafted on the APR at 8.25%! However, when he called his insurance company to get the policy done up, he was able to refinance at 3.2%. I forget the company, and I have no idea what the finance charge was--but you might be able to refinance at a lower rate. Might even be able to knock a year off too doing that.

 

[NateDN10]

1) Congratulations on the new car. A CX-5 would definitely be near the top of my list if I were to buy a new car today. Incidentally, so would a Cruze, though it would be an MT Eco model.
2) Although I hate loans, this doesn't seem to be as bad as I initially thought when you run the numbers. $30K at 4.79% over 6 years results in $480.23/mo for a total of under $35K after 72 months. Not great, but it could be worse.

I know you didn't come here for financial advice, but it's a sign of maturity to listen to older, wiser people. And even though a $500/mo car payment is manageable for you now, in 6 years you may be married with a kid on the way, and hoping to buy a house! $500/mo will be harder to stomach at that point.

And lastly, take a look at this video from Dave Ramsey.

 

[KrisZ]

Originally Posted By: Nick R
... I'm keeping this car for many years.

also something interesting, the dealer is including in the price undercoating, and rust protection for 10 years.


Congrats on the new car Nick, CX-5 sure looks good and I'm positive you will be happy with it, but...

If you are truly planning to keep this car for quite a while, DO NOT fall for dealer rustproofing. It is a joke. You have to go to the dealer for annual inspection in order to keep the warranty. On top of that they will say that they will do "free" touch ups if needed, but instead will have a guy with a rubber undercoat spray can hit the under side in few small spots during the inspection just so you feel good.
My co-worker, with his Mazda 3, fell for it and despite yearly inspection and, as he claims, the touch ups, his fenders are starting to show rust and his car is only one year older than mine.

Do yourself a favor and skip this "freebie" and get this car oil sprayed.
I was also stupid to get the rustproofing from the dealer and their application was very sloppy. I had the door edges sprayed with some waxy stuff that often ended up on my hands or clothes. Fortunately I wised up, cleaned all the [censored] off and got it oil sprayed.