Why is it so hard to find an affordable car? Any advice?

[Whatthefluff]

I'm a first-time car buyer and trying to find something now that I officially have a driver's license. I'm mainly thinking about mid size sedans like a Honda Accord. However, everywhere I look whether at dealership websites or Facebook Marketplace, the car prices are no good. I very fortunately have down payment $, but still want to get a vehicle where my monthly payment isn't crazy. Ideally 200-300 dollars a month.

I'm looking at used cars but want to be assured that it is in good condition, not ancient, and has reasonably low miles. I know it's a lot to ask for, I guess, but I want to know that the ultimate decision I make is the right one without getting an unaffordable car payment.

Do you have any advice?

Also, if I ask my bank for a loan their interest is actually lower for getting a car from a dealership and higher from a private seller like on Facebook. So it might be in my best financial interest to go the dealership route.

[The_Shadow_Dweller]

I am sure all the people have said useful things for sure.

These are the mistakes we did when purchasing our first car and did not repeat them with our second car.

Say no to extended warranty or insurance. Motor companies like Honda, Ford etc give free 3 to 5 years of insurance with your car by default. But the people at the dealerships may include paid extended insurance costs in your car price without asking you. Request them to cut off the extended insurance, and refund the money. I believe around 100 to 150 in USD saved here. Read the pricing distribution very carefully.

We can get a cheaper insurance plan from some other company in the market after that. Just before the expiry of the free insurance.

Take the car as it is given by the company. Deny any optional but official modifications that are suggested by the dealer. Because they may charge very very high for the same. If it is a simple socket to socket electronic modification, you can get it done in after-market also. Without voiding the warranty or insurance, sorry I get confused in those.

Socket to socket modifications without any tampering to the electrical system are allowed. But actual modifications to the electrical system are not. Just get everything done in the aftermarket. Unless you really require original parts.

Our first car went for repairing after a minor accident. The people in the repair shop denied to service the key locking system. Saying it was installed by the dealer and not the company. My mom had a big quarrel with the management. And they fixed it.

[The_Shadow_Dweller]

Also, when you are taking a loan, check the duration of loan. The dealership people assume the time period for you. Do not let them do that.
Because you really do end up paying more as the interest. You may be able to pay in 2 years only, but they put 3 or 4 years.
You get a smaller premium, but the extra amount paid in interest is very high.
Got to watch for that.
And you do not want that.

[The_Shadow_Dweller]

People at dealerships can also swap certain car parts like tyres from original, company provided ones to their own choice. Demand them to give you the original set of tyres only. Nothing else.

This is basically done to get them some extra money. The tyres provided by the company are pretty expensive and of really good quality. You figure the rest.

[Anonymous]

So. Former car salesman here. Still in the dealership but more of an administrative role these days.


Every customer has wanted their car payment to be $200-$300 since pretty much forever. Well maybe not that long. Bur they sure did for the 7 years I sold cars.


Unfortunately it was rarely possible then at pre inflation prices, and when interest rates where lower and 0% financing still existed.


These days. Prices are ridiculous. Interest rates are horrible. ( heard a customer with an 850 credit score got a 7% interest rate on a new car the other day. Absolutely unheard of when i was selling cars.




So here is some inside info I hope helps


1 point of interest will effect your monthly payment by roughly $8-$10 dollars.
Add that to your monthly payment per point of interest. Or.. if you find your self able to talk the rate down (dealerships usually have a better interest rate approval then what they show because they get rewarded for “holding on rate”) so in a situation where you already have numbers infront of you if the rate can be dropped a point or two you can estimate your payment will be $10-$20 less ROUGHLY.


Money down. Money down effects your monthly payment toughly by $20 per $1000. Depending on tue length of finance.


So if you are putting money down stick to $1000’s a thing less and you might as well just keep it in your bank.


Unfortunately the prices are what they are. Small fuel efficient cars are in short supply and high demand. And the car market is pricing them accordingly. What you may find your self having to do is go for a higher mileage used vehicle to fit in your budget. If that is the case I absolutely would request they let your own independent mechanic examine it before purchasing ( any self respecting dealership will say yes to this. If they dont. Dont buy from them)

[Whatthefluff]

Thank you tons. I'm kind of disappointed at the idea of getting a high mileage vehicle :/

[Opinion Owner]

Yea. Its crazy times. I was considering trading in my SUV for a small more affordable car…here the vehicle i was looking at is being sold $5000 OVER MSRP. Long story short I’m hanging on to what I have and toughing out the gas prices.

[Whatthefluff]

It sucks. I don't have a car to my name to begin with.

[TheNameIsRob]

If you look at Corolla and Civics those cars often go 200,000 to 300,000 miles

[Anonymous]

I have family members who work in that industry plus I also purchased a car last summer. Like most things inflation and Covid have screwed the economy. But the big thing about cars is most of them now a days have smart technology whether it’s navigation or just a seat warmer. There are chips required to makes these things work. Because of Covid and shutdowns from two years ago the parts are beyond delayed and on back order. As a result cars are being made slower and fewer so naturally the price is up by thousands.

[Opinion Owner]

Another thing foreign made cars such as Honda are actually more expensive as well plus overall- my best suggestion is try looking into cars like Chevy stuff that is from here.

[Whatthefluff]

I'd rather buy Japanese. Honda has a factory in the Midwest now

[Opinion Owner]

Your choice 😊. I actually almost bought a Honda before Covid and the price/financing was ridiculous then. I was just mentioning I have a Chevy and in my opinion they are way better on price and payments. Another thing if you are buying a used car try to buy the car from a dealership that is not that particular car. The dealerships will buy used cars in sales and buy other ones to try to make some money.
But I know someone who did that and bought a car for like 13,000 when blue book on it was almost 20k - that might help. Good luck honestly because it took me three years to find a good car I liked but could also afford- so I feel your pain.

[Whatthefluff]

Thank you. 💕 Not trying to hate on your Chevy lol

[TheNameIsRob]

Hondas and Toyotas make some of the most reliable cars and are often the best used cars to buy. If you’re trying to keep payments down then maybe look at Civics and Corollas.

When negotiating with a dealer you’re only interested in one number and that’s the out the door price. A dealer will ask you how much you can afford or what kind of monthly payment you’re looking for. Don’t answer and simply say I only want to know the “out the door price” . That will include all taxes and fees and it’s also the number they will put on the purchase order you take to your bank to get the loan/check to pay the dealer for the car.

Also watch out when offered extended warranties and add ons. Don’t add anything on like alarm or stereo at the dealer because they will just jack the price way up.

Look for uneven wear on tires and look at the gas and break pedals for excessive wear. A person who drives their car hard will wear them out faster. When you test drive and they try to impress you with the stereo tell them to turn it off. You want to be able to hear any noises that might indicate something not working right.

Lastly be willing to walk away if the deal doesn’t feel right. Don’t show too much excitement and take your time. Most cars are made to last these days so you should do fine getting a good car. Good luck

[matchrestore]

Because automotive production was slashed at the start of the pandemic and has been slow to recover, people are keeping their cars longer, reducing supply, and buying more used cars, increasing demand. Cars that would have been crushed before are being sold on used car lots now.

[ArtemisSilver]

You could lease a used car, then pay for it by running Uber Eats a bit.

Look for used white fleet vehicles or police auctions as they're cheapest.

Unfortunately the post covid supply chain disruptions have increased the cost of cars new and used.

[Whatthefluff]

Unfortunately I'm pretty sure one has to be 21+ for Uber, and my birthday is 9 months away

[ArtemisSilver]

I thought it was 18+ in any case the rest of my advice holds true. You could also apply to work for a courier or hot shot company or even a maid company, many of which provide company vehicles.

[Guardian45]

ALWAYS buy from a reputable dealer, a car a year or older. Stick to Hondas or Toyotas. NEVER buy a car with more than 13,665 miles per year. (For example my 2010 Toyota Camry has 73,292 miles or 6,108 miles per year!) ALWAYS get an inspection before you buy. Check VIN online for car owners and repairs. Check out car insurance.

[jshm2]

You must be living under a rock, kiddo.

There has been a cost of living crisis and an inflation crisis starting from about a year ago. Of course the price of everything is going to go up. What the fuck else did you think?

[Truth0225]

Look at Craigslist for a cheap used car. And buy it. You’re not gonna be able to find a car these days for 200-300 a month. Everything is more expensive.

[BJP21]

Have you established any credit yet? If not get a beginner credit card like Capitol One and use that to pay for stuff.

Go through a credit union of some kind they can find you the best loan rates. Ideally 3-4% is pretty good.

[Whatthefluff]

My score is 742

[BJP21]

@Whatthefluff thats pretty darned good.

[Whatthefluff]

Thanks. I remember that it's money I owe back lol

[BJP21]

True, but you have 0 liability in the event of fraud.

[GoodGuyBreakingBad]

Maybe get someone to Co-sign for you

[tfan1]

Economy, inflation, biden, generally we’re all in a schitty situation 🙁

[Havthrills]

It is hard to find one these days. Now the prices went up really high.

[Anonymous]

You're getting hosed by the pandemic. There's a shortage of new cars do to the pandemic. So this has prevented people from buying new cars and has driven up used car prices ridiculously.

[Zolly99999]

These days it's brutal to find a affordable reliable car.

Good luck