Help for finding good used cars in NJ

[Duke87]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

Does this actually work? I know Connecticut charges sales tax on the assessed value of the vehicle, so you can't claim you paid a low price to dodge it.

[briantroutman]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

Does this actually work? I know Connecticut charges sales tax on the assessed value of the vehicle, so you can't claim you paid a low price to dodge it.

I can't speak for NJ, but I know that in PA, if the claimed sales price is less than 80% of the book value of the vehicle, the buyer is required to fill out a separate form that explains and justifies the lower purchase price. The transaction is flagged and may be audited by the Department of Revenue. If the buyer is unable to substantiate the reasoning and prove that the claimed price was in fact paid, he may be charged sales tax on the fair market value of the vehicle.

[SteveG1988]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

Does this actually work? I know Connecticut charges sales tax on the assessed value of the vehicle, so you can't claim you paid a low price to dodge it.

I can't speak for NJ, but I know that in PA, if the claimed sales price is less than 80% of the book value of the vehicle, the buyer is required to fill out a separate form that explains and justifies the lower purchase price. The transaction is flagged and may be audited by the Department of Revenue. If the buyer is unable to substantiate the reasoning and prove that the claimed price was in fact paid, he may be charged sales tax on the fair market value of the vehicle.

I've gotten away with marking down cars, they go by the seller's word. On the paperwork for my car it says i paid 400 bucks for a 1996 Thunderbird in Maryland. MVC didn't even question it. I think if it is older they won't even check to see that "yeah KBB is really 2k for that car"

[jeffandnicole]

The Sales Tax issue shouldn't be much of an issue.  Let's say the car is to be sold at $5,000.  Any honest dealer isn't going to fudge the paperwork; only a private seller.  The difference is minor.  If the seller says I'll write the paperwork up to show you paid $4,000 rather than $5,000, the $1,000 difference amounts to $70 in sales tax.  I'd rather just ask the seller to sell the car for $4,900 and write up the paperwork that way.  You would wind up saving $107 in total - $100 less for the car, and $7 for the savings in the sales tax.  BTW, if you find a dealer that'll agree to fudge the paperwork, then end the deal.  If he's willing to fudge that paperwork in order to make a sale, you can bet he's fudged some other things in order to sell that car.

(Note: Buying a car out of state won't help you reduce your tax liability.  1 of 3 things will happen: The dealer/salesperson will only charge you that state's sales tax (ie: 6%), and you have to remit the remaining 1% to NJMVC; the dealer/salesperson will charge you the full 7% and take care of things on their end, or they won't charge you anything, and you'll have to pay NJMVC the entire sales tax at one time.)

As for insurance and history of the vehicle - when you see a few cars you are interested in buying, get the VIN numbers from them.  Not only can you use these on a carfax report to determine if the cars have been in an accident, flood, etc, you can also call insurance companies and will be able to give you exact quotes.  And there will be no surprises.  You will be paying more for car insurance since you're under 25; there's no way around that.  You don't have to be sneaky about it - just say you want to take a pic of the VIN so you can look up insurance info.  If someone that wants to sell you the car balks, then they probably don't want you to see the carfax report, which may reveal some issues with the vehicle.

As for your job offer, any good company won't just get rid of you for no reason.  One of the things you want to do when you start getting a paycheck is to put money aside for the day if you do happen to be let go of your position.  You'll have money to live on while you look for another job, and that'll include paying for your car and related expenses.

As for Domestic/Foreign, I wouldn't worry about that too much.  Many of your foreign cars are built right here in the US; many domestic cars are built in Canada/Mexico/US.  Anymore, Domestic/Foreign refers to the headquarters of the car manufacturer and not where the car was built, which really doesn't impact anything on your end.  Except for exotic cars, any repair shop should be able to fix any vehicle, when in the long run is what's really important.

As far as financing goes - as others have pointed out, it does go a long way to helping you establish a credit record.  If you don't have a credit card, get one of those too...AFTER you have bought a car at this point.  You don't want too many things showing up on your credit report at one time, and it'll still be easier to get a credit card than it would be to get financing on a car.  Because real credit lenders want to see that you've been gainfully employed, they're going to want to see a few months of paystubs, not just one.  You can still get credit with just one paycheck, but you're probably going to be paying a bit higher in interest.  Don't let that dissuade you though - As you pay the car off, send enough money for 2 payments rather than one (noting that the 2nd payment goes to the principal).  You'll pay off the car faster, incur less interest costs, and establish that credit.  Make sure it takes at least a year to pay off the vehicle - paying off the vehicle after a few months doesn't do much in showing you are responsible over time.

While I've always done financing thru the dealer, I've also bought new, and have excellent credit.  You may want to try to line up financing in advance, thru a Credit Union, bank, or whomever.  You're looking for the best rate out there, no matter who offers it.  My experiences were that while there's a ton of legit websites and online banks that offer loans; with no or limited credit history they're not going to offer you those loans.   Not too long ago I got a 2nd mortgage to update my house and siding; that I did completely online except for the closing, when the bank sent someone (who they probably have never met either) to my house to sign the paperwork (ironically on a day I was being called into NJDOT for snow plowing work).  In a sort of ironic way, we did this on a Sunday morning, which most banks are closed.  I guess he gets paid by the job, so it was whatever worked with his (and mine) schedule. 

While most people here have said getting this credit will help you when buying a house, it'll help if you're renting an apartment as well; many times you can get a reduced deposit when you show positive credit.

And what's most important about everything here - don't get fooled by the car dealers.  Trust me, the car that you're looking at is a hot seller, and 2 other people are looking at it too.  You say you want to pay $250 a month?  Well, how about $255 - $265, which is still in your range?  And no doubt the dealer has a special offer that's valid that day only.  Ignore all of that.  Go look up on the internet lines that salespersons use to try to sell you a car, just to be prepared.  That car that's been sitting on the lot for 3 months probably doesn't have any perspective buyers the very same day you're looking as well.

Personally, I enjoy car shopping.  It's amusing.  I also have spreadsheets that I've created and use to plug my numbers in.  So I know that they're going to sell me a car for $30,000, after tax, down payment, etc, I should be paying $425.37 a month.  When they say the monthly payment will be between $425 & $435 - and ultimately they try to say it'll be $433.89 a month - I look at them and say, no, it will be $425.37 a month. They can claim this or claim that all they want.  The final selling price is what it is.  The interest rate is what it is.  The term of the loan is what it is. There's a simple calculation at that point to figure out the monthly payment.  They may say it's only $8 more a month.  Guess what - that's still your money.  Hold on to it!  (They will play with a whole bunch of figures that you won't understand in order to justify the $8 more a month).

I know this message was long...but hope this all helps.

[NJRoadfan]

I'm curious, what entry level job has a net paycheck that large these days? Hopefully they are taking all the taxes out.

[jeffandnicole]

I'm curious, what entry level job has a net paycheck that large these days? Hopefully they are taking all the taxes out.

That's about $35k a year gross, so I can see that being entry-level!

[J N Winkler]

There is much good advice upthread, but I would steer clear of borrowing just to establish a credit rating.  It is perfectly possible to establish good credit while paying cash for everything since the credit rating agencies use steady income well in excess of outgoings as a measure of ability to carry debt.  This is how middle-class families are able to maintain credit ratings in excess of 800 despite not having carried any debt in the previous twenty years.

For a person making $35,000 annually before taxes, $5,000 is a reasonable budget for a good used car for commuting.  It is in fact possible to find reliable used cars for significantly less.  Even when spending the entire budget on the purchase price of the car, however, I wouldn't count on not finding almost immediately that it is necessary to carry out some repairs or deferred maintenance.  There is an almost universal tendency for a previous owner to slacken off on upkeep when he or she begins to suspect that the car will have to be sold in a year or two.  Therefore, I would aim to spend significantly less on the purchase price of the car and hold the remainder in reserve for repairs.  You can easily spend over $2,000 at shop rates for labor and parts making good on wear parts that reach the end of their life at around 100,000 miles:  timing belt, water pump, brake pads (maybe rotors on the front), as well as radiators, spark plugs, ignition coils, etc. for some models, plus component systems like the battery and alternator where neglect tends to result in "circular firing squad" failure patterns.

The ability to perform your own repairs and maintenance will greatly increase your financial headroom, but a new marque or model can entail a significant learning curve.  As an example, I had more than a decade's experience changing the oil in a 1986 Nissan Maxima and had reached the point where I could do it at night without a droplight, but when I got hold of my 1994 Saturn, I actually took it to a quick-lube shop twice before I started doing my own oil changes.

I'd suggest picking a handful of marques you are interested in, looking at the models they offer that are useful for commuting, and then going to marque forums and doing searches to see what the gurus advise potential buyers to look for.  I found this approach very helpful when I was thinking about getting a Lexus LS 400 as a hobby car a while back--the ClubLexus.com forum warned me about potentially expensive problems like leaky power steering, difficult-to-replace alternator and starter, PCM capacitors that go bad, engine coolant temperature sensors that impose fuel economy penalties of 5-10 MPG (on premium gas!) when they go bad, and so on.  One key bit of advice is that the difference between good and bad value for a Lexus with a particular combination of age, mileage, and asking price is whether it is being sold with timing belt replacement and ancillary services already performed.

My personal recommendation would be a Honda Civic.  Compact size is the sweet spot for a longish commute (easy to park, with more of a fun factor than subcompacts), and Hondas are both reliable and refined.  American cars in this size class tend to be unreliable, fuelish, or unrefined.  Although their reputation has improved considerably, I'm still gun-shy about the Korean makes because of their history of poor service engineering.  Toyotas in general are very reliable, but the compact Toyota that would fit your budget is a mid-noughties Corolla and these are best avoided since they are bad oil-burners.

I am quite happy with my 1994 Saturn SL2, but I wouldn't encourage others to buy a Saturn S-Series, because:  (1) the last S-Series rolled off the assembly line 13 years ago; (2) the last S-Series not unreasonably susceptible to special and difficult problems (coolant leak in intake manifold, bad clutch facings in automatic transmission, electronic control modules that "cook" under hood or in dash) was made 16 years ago; and (3) all generations of S-Series have an oil consumption problem due to GM's decision not to provide piston drainback holes.

[jakeroot]

There is much good advice upthread, but I would steer clear of borrowing just to establish a credit rating.  It is perfectly possible to establish good credit while paying cash for everything since the credit rating agencies use steady income well in excess of outgoings as a measure of ability to carry debt.  This is how middle-class families are able to maintain credit ratings in excess of 800 despite not having carried any debt in the previous twenty years.

A) If you do decide to borrow, you could always set aside whatever you were going to spend upfront into a separate account that is tied to the lender, that way if something goes wrong, you can dump everything into the loan and pay it off.
B) You can build credit by doing nothing, but it's going to be incredibly slow.
C) There's no way you could get a FICO credit score above 800 without borrowing. I'll admit, I'm not brilliant with money, but I don't understand how someone could have that high of credit without taking any chances. The whole point of a credit score is to prove to the lender your reliance. Without having ever borrowed, that's very seems very difficult to do.

[jeffandnicole]

And if you do decide to borrow (or even apply for a credit card), don't be surprised if you are declined at first.  it happens, and they'll provide you reasons why.  Guaranteed, one of the reasons will be a lack of, or minimal, previous credit history.  And that's going to appear for seemingly forever as you go thru life requesting loans, credit cards, etc.  Eventually you will get a credit card or loan, and it just starts rolling from there.

[corco]

I'd be reluctant to take out a car loan without first having a credit history built up through credit card or other use. I recently financed a new car and was able to secure a 1.5% interest rate.

The dealer basically laughed at me when I told them that I suspected I would qualify for the  promotional 1.5% interest rate, being fairly young. Sure enough though, they ran my credit score and I was approved on the spot. I got a credit card from the bank when I turned 18 and have paid for everything with a credit card since then (and never carried a balance, functioanlly using it as a debit card).

With nine years of that, I was able to build up enough of a credit history to qualify for the best interest rates, but I  think that's fairly unusual. I guess my thought is that if you plan on using credit in your life, get a credit card yesterday and start using it. Don't spend more than you can pay off immediately.

Depending on your needs, I'd be reluctant to finance. If you can really skrimp for a few months, you should be able to save up $5,000 unless you need the car now. With no credit history, I think the dealer I was recently at was looking at 6-7% for a NEW car, with employment/paystub verification, probably higher for a used car.

For me, anyway, I wouldn't have financed the car for an interest rate higher than 1.9% or so, since that's basically inflation. 

If you do finance, you'll want to put as big a down payment as possible to get the rate down. I wouldn't worry too much about the term, honestly- depending on the interest rate. Do what you're comfortable with- at the $5,000 level you don't have to worry too much about depreciation. You likely won't ever be underwater on the car.

If you think you're reasonably good at managing money, and the rate is the same to go 36 months as 48 months or whatever, I'd stick with the longest term possible, honestly. Then you can save and hold the difference, earning interest with it. You'll very likely experience wage growth over the next couple years and "grow into" the car payment.

[J N Winkler]

There's no way you could get a FICO credit score above 800 without borrowing. I'll admit, I'm not brilliant with money, but I don't understand how someone could have that high of credit without taking any chances. The whole point of a credit score is to prove to the lender your reliance. Without having ever borrowed, that's very seems very difficult to do.

The families I know that have 800+ scores have essentially done as Corco describes--taken out multiple credit cards and used them for the float only.  I should say I was using the term cash loosely; I'd agree that it is difficult to build a good credit record if you pay every obligation with pictures of dead presidents.  However, if you use a credit card for the float only (paying off the entire balance, not just the minimum, every month), and the credit rating agencies can tell that your monthly outgoings are well within your income (i.e., you are not living paycheck to paycheck), then your credit score can only go up.

I have to say I am not really a believer in car loans, since there is always a car (often quite a good one) that you can buy up front, including an allowance for repairs and deferred maintenance, at an amount less than or equal to the cost of a down payment on a newer car.

[briantroutman]

Unless you're planning to buy a home in the next few years, Zeffy, I think the idea of financing a car for which you otherwise would have paid cash–specifically to build credit–is nonsensical. Even without a car payment or mortgage, I managed to build close to an 800 score just by having credit cards and student loans in my name and paying them faithfully every month.

On the other hand, there is a very real cost to financing a vehicle, and that is the interest you'll be paying. If you currently have no credit, you could easily be paying a rate of 5% or more, and over the course of four years on a $5,000 car, that adds up to at least $1,000 in interest alone. Further, you'll be required to carry collision and comprehensive insurance coverage–something that's particularly expensive for a young driver and generally not advisable on a $5,000 car.

If you do intend to finance, shop a few credit unions and banks to see what kind of rate you can get with your credit score. That way, you can approach a seller with financing in hand, and you only need to consider the dealer's financing offer if it's a better deal than the one you've already secured (which is doubtful on a used car). All loans should be simple interest, not compound. 36 months is about the longest term you should consider (maybe 48, tops).

But under no circumstances should you ever let a salesperson talk to you in terms of payments. Then you become what the salespeople refer to as a "payment buyer" –a boob to be taken advantage of. Always talk in terms of the actual sales price of the vehicle.

And regardless of whether you finance or pay cash, make sure that you have the vehicle inspected by an independent mechanic before you sign anything. A "certified"  or "182-point checklist"  doesn't satisfy this requirement. Nor does Carfax–which has to be the most overhyped and misunderstood product in the used car marketplace.

[dfwmapper]

I've done the same thing with the credit cards, and I went through the process of getting preapproved for a mortgage earlier this year, so I'm familiar with how it goes. They all said the same thing, that the lack of recent, non-revolving debt is a negative, even with a score in the high 700s and many years of responsible credit card use. I was going for something significantly less than the maximum amount for my income level and had enough assets (cash and retirement account) built up so it didn't end up mattering, but for someone who's just starting their career and doesn't have a lot, it might. One thing I would ask about J N Winkler's people is if they had any student loans. For a lot of people, the credit earned by paying those off is worth more than the degree itself .

[J N Winkler]

I have a little car-shopping advice.

I have found this search aggregator useful for getting a sense of what is available, whether nationally or in my immediate area:

http://www.autotempest.com/

KBB and NADA both have price-checker websites:

http://www.kbb.com/used-cars/

http://www.nadaguides.com/Cars

As a general rule, you can expect to pay more to buy from a dealer than from a private party.  I am not a fan of buying from dealers.  Availability of service records, disclosure of faults, etc. is not that much better (while some dealers include Carfax reports in their ads, the dealer often not only has no service records from the previous owners but also screens you from them), and the detailing jobs dealers tend to do to prepare cars for sale include services you want not to be done, such as spraying rubber hoses with WD-40 or similar to make them look new (oil degrades rubber).

This said, private parties can be very flaky.  Negotiating procedure tends to be very inconsistent.  Taking Craigslist sellers as an example:  some act like they are desperate to unload a stolen car (for example, listing the car at $1500 "firm, no tire-kickers" and then when you contact them, volunteering that they are willing to go down to $1000 or even further), while others won't budge more than $50 or so from the asking price and keep the ad up for months and months.  Some Craigslistians are flippers:  they buy, fix up, and then sell, hoping to recover more than their purchase price plus cost of parts.  You want to avoid them because for some makes there is a huge price/quality differential between OEM and aftermarket and where this exists, there is every incentive for the flipper to use aftermarket; the time and expertise the flipper brings only occasionally counterbalances the additional remove from the owner with access to a well-documented service history.  It is sadly not unknown to be killed selling things on Craigslist, so often you find a promising ad and make contact, only to discover that the seller is acting as an agent for principals and has unclear authority to agree a sale.

The more or less standard recommendation when buying long-distance from eBay and other auction sites is not to bid without inspection in person or by a trusted agent, and only if the seller will allow backing out of the deal if personal inspection discloses a major fault with the car after the auction closes.  Cars sold at eBay auction tend to be overpriced, especially from established dealers, because FOB (the more or less standard condition) does not really mean FOB when a disappointed buyer can use defects discovered on arrival (often as a result of unsuitable shipping method) to extort clawback of some of the purchase price from the seller in lieu of a settlement to avoid legal action.  Buy It Now prices are therefore padded to cover this contingency and all bids are rejected (often with immediate opening of a new auction for the same car) unless the high bid is within a very small percentage of the Buy It Now price.  No-reserve auctions are more sporting but the top-quality merchandise tends not to go on the block without a reserve price.

[J N Winkler]

One thing I would ask about J N Winkler's people is if they had any student loans. For a lot of people, the credit earned by paying those off is worth more than the degree itself .

They didn't have any student debt.  There were however car loans through the mid-1970's, plus a relatively small home mortgage in the late 1970's that was paid off early.

[dfwmapper]

It's a little different having 30 years of history when apply versus having nothing. Zeffy would face a very different set of challenges in getting a home as a 20-25 year old than they would, and the credit earned by paying off a car loan would be more beneficial in the short term than just having a credit card.

[corco]

You want to avoid them because for some makes there is a huge price/quality differential between OEM and aftermarket and where this exists, there is every incentive for the flipper to use aftermarket; the time and expertise the flipper brings only occasionally counterbalances the additional remove from the owner with access to a well-documented service history.

I bought a 1990 Dodge Colt on craigslist for $600 in 2006. The battery sat on a piece of wood that was rigged to the side of the wheelwell. The guy I bought it from was clearly a methhead who curbstoned and the vehicle had clearly sat in a junkyard for a while. The  6-digit odometer read less than 100,000 miles on it, but it clearly had at least double that.

Got 20,000 reliable miles out of it before selling it for $200 more than I bought it. I wouldn't have sold it if it weren't for the fact that I had my Jeep Liberty by then and was moving to Wyoming, and taking two cars just wasn't practical.





Best car I ever owned, no doubt about it. Had I gotten in any kind of wreck, I'm certain I would have died, but I didn't. All's well that ends well.

[Pete from Boston]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

Massachusetts tells you what your vehicle is worth, and charges you sales tax accordingly.  Fortunately, probably to avoid challenges to this, they tend to lowball the value.

[J N Winkler]

I bought a 1990 Dodge Colt on craigslist for $600 in 2006. The battery sat on a piece of wood that was rigged to the side of the wheelwell. The guy I bought it from was clearly a methhead who curbstoned and the vehicle had clearly sat in a junkyard for a while. The  6-digit odometer read less than 100,000 miles on it, but it clearly had at least double that.

[. . .]

Best car I ever owned, no doubt about it. Had I gotten in any kind of wreck, I'm certain I would have died, but I didn't. All's well that ends well.

I would say you did well.  (I actually had to look up curbstoning--I was familiar with the concept, but not that word for it.)

I see the flipping business from the other side since I occasionally help others with repair jobs that are familiar to me.  One of these is engine mount replacement.

For nearly its entire production run (1991 model year excepted), the Saturn S-Series was fitted with a four-point powertrain mounting system that consists of a top engine mount, a lower engine torque strut ("dogbone"), an upper transmission dogbone, and a lower transmission mount.  The top engine mount is basically a block of rubber that compresses or gets stiff with age.  Exactly how long this takes is the measure of quality.  Once it gets old enough, the steering wheel vibrates like a jackhammer at idle, and the inside rearview mirror shakes so much it is almost impossible to see things in it.

Purists on the SaturnFans forum, including the leading guru (who posts under the handle OldNuc since he spent most of his career in operations supervision at several nuclear power plants), insist that for the best combination of NVH performance and durability, all four powertrain mounts must be replaced together, using only new OEM replacements for the engine and transmission mounts and salvaged OEM dogbones retrofitted with polyurethane inserts.  This costs a minimum of $150:  $65 for top engine mount, $10 each for salvage dogbones from a pick-and-pull yard, $40 for a polyurethane insert kit for both dogbones, and $35 for transmission mount.  (This assumes the new parts are purchased from online GM parts discounters that often have long lead times for shipping.  A new engine mount purchased over the counter from a dealer that has it in stock costs more than $120.  Engine mount R&R at shop rates for parts and labor--ignoring the other three mounts--can easily cost $200.)

Flippers really hate to hear this.  OEM engine and transmission mounts are expensive but this is largely because the rubber is so rigorously specified they can easily last 10 years or more, so most of the benefit accrues to the eventual buyer, not to the flipper, who may not even be able to recover the heavily discounted cost of new OEM components purchased online.  Inevitably there is a follow-up question:  is it all right to use aftermarket Anchor mounts?  (Out-of-pocket cost is $35 for engine mount, $20 for transmission mount, $15 each for dogbones, for a total of $85.)  The answer is usually along the lines of, yes, an Anchor engine mount is fine as long as you don't mind replacing it within two months.  (There is apparently a lifetime warranty, and Saturn owners who go the Anchor route sooner or later have warranty chaining stories that feature mount changes in auto parts store parking lots about three or four times a year.)  If you use Anchor dogbones, you might be among the lucky ones who don't have the lower engine dogbone fall apart, which causes the engine to push on the passenger-side CV joint and tear it apart.

Lots of flippers optimistically think that if manufacturer X is OEM for a given part, then X's own-brand aftermarket part for the same application is equivalent to OEM quality.  This is not necessarily true.  For the Saturn, for example, it is true for the NGK BKR5ESA-11 plugs used for the DOHC engine, but not for Anchor engine mounts.

After a few years taking care of a car that is more than about 15 years behind current production, you sooner or later realize that aftermarket parts production is heavily tilted to meet the needs of people living paycheck to paycheck and driving cars that old that they fix themselves because that is all they can afford.  It is a dollar-store approach to car upkeep, which is ultimately penny-wise at the expense of pound-foolishness.

[jeffandnicole]

When you go to a regular dealership and want to get a loan, they do have numerous lenders they can work with.  While one would think that Honda would like to work with Honda Financial, the reality is the dealership is going to get a percentage of the loan regardless if it's Honda Financial or Chase Bank.  And since they want to sell a car, if Honda Financial says the loan will be 5.9%, and Chase says they can provide a loan for 3.9%, the salesperson is probably going to come back saying Chase has the best deal out there. 

Used car salesmen have their own lending agents, but many of them work on the basis that you probably have bad or no credit.  It can be easier to get a loan from them, but the rates are going to be much higher.

And then, after all of that, it's not unheard of for the lender to sell the loan anyway to another bank.  You keep your monthly payments and interest rate as they were though (this mostly happens with housing mortgages).

[corco]

I would say you did well.  (I actually had to look up curbstoning--I was familiar with the concept, but not that word for it.)

Honestly, I got lucky. I was 18, had no money, my parents needed my high school car for my little sister to drive since we lived in rural Idaho, and I didn't absolutely need a car in Tacoma. I was determined and bought what I could scrape together.

In hindsight, it worked out really well, but I had no idea what the heck I was doing. It drove better than any other car I found in that price range, so I bought it. I guess at sub-$1000 you can't be too picky though.

[tmthyvs]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

In other words, make sure to be dishonest, evade taxes, and essentially commit fraud.

[Rothman]

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

In other words, make sure to be dishonest, evade taxes, and essentially commit fraud.

Also, be aware that NJ charges 7% sales tax on all vehicle sales, new and used, paid at time of title transfer (which is 60 bucks) and registration (46.50 or 71.50 depending on weight)

Make sure, then, that you tell the seller to make you a receipt that displays a sale price less than what you actually paid so you can save a little cash (applicable if you're paying cash from Some Dude, rather than going to a dealership).

In other words, make sure to be dishonest, evade taxes, and essentially commit fraud.