It''s a good idea to go to a credit union or bank and find out what your interest rate, terms and pre-approval amount would be. But, it has been our experience that the car companies interest rates (if you have good credit) have always been less. Find out from each company''s web site what special rates they are offering and on what models. If I recall correctly, honda may be offering a 2% deal. I know Ford is offering a .9% deal. No bank or credit union is going to be able to subsidize your loan to that amount.
Regarding down payment, again do your research. Many car companies offer a rebate which can be used as a down payment - thus reducing your out of pocket expense. Aside from the negotiated price some dealerships will charge you destination & a filing fee. Keep that in mind when you negotiate. Some dealerships flat out won''t waive this - but will reduce the price of the car
It''s all a game and ridiculous. KEEP FOCUSED ON THE FINAL PRICE with knowing what the sales tax will be (most states have a reduced sales tax for automobiles).
Also, as mentioned, never get caught up in the monthly "payment". Focus on the COST of the car. I can remember the first car we bought. I had the final price of the car & went to our bank to get a loan. It was X amount. Our banker said that the car companies often give a better rate. We went into the financing "guy" (what a waste of time - more on that later). He quoted an interest rate lower than our bank. The payment amount per month was significantly higher. I asked why. To his disgust, he said "of course you want to buy the extended warranty AND undercoating".
Without even asking us, he put that in the payment schedule.
This was in the early 1980''s - not sure if they can use that tactic still.
And, on the business end - when you see the finance/business guy - prior to going in to sign that papers tell them up front that you just want to sign the papers (make sure you read them!) and do not want ANY sales talk about warranty, undercoating, life insurance, blah blah blah!
Costco has a "research car price" section. It''s a good starting negotiation price. I''m a bit touchy feely - but the recommendations about doing the nego on line sounds - well - sound.
I would think you would want an AWD car in Michigan. The CRV Honda has gotten good reviews as the Rav4 Toyota. For the price, you can''t be the Pontiac Vibe. It''s small - but a very good value. In fact, they were talking about THAT car on the morning show this week!
Since you are going to put high mileage on the car, resale doesn''t seem to be an issue. Most cars, unless they are lemons, should get well into the 100k miles. All our dopey Ford Tauruses have. Things may have changed; but, the reason I like trad. Am cars is the repairs and parts are significantly less expensive. We couldn''t take our Volvo to the shop with out walking out with an over $500.00 bill.
Good luck. We just went through this exercise less than a year ago w/ hubby. I''m in the process right now. It''s kind of a pain; but, after being overwhelmed, your options become pretty clear.
Oh and one other thing, interest rates for used cars are usually 1-2% higher than new, unless there is some sort of special financing.
