This Saturday Benjamin and I went and bought a new car: a 2006 Ford Fusion. The entire car-buying experience (from loan to insurance to buying the car) was a very stressful and frustrating ordeal. Let me break it down:
Selecting a Car
Finding which car we wanted to buy was the no-brainer. We did our research and select four cars that meet our MPG and amenity criteria. They were the Ford Fusion. Honda Accord, Toyota Camry, and Nissan Altima — all of which were in our price range. On Monday, January the 16th we went and test-drive every vehicle except the Camry (which Benjamin took one long look at and said “nope, no way”). We made it clear to the salesmen that we were only test driving and would not be buying a car that day. The test drives were very pleasant as were the salesmen. In the end it came down to the two-door Honda Accord and the Ford Fusion. After some discussion and research we settled on the Ford Fusion.
For a variety of reasons we wanted Benjamin to own the car and thus has to be on the loan. In order to facilitate this I was going to give him $12k (the maximum tax-free gift amount for 2006) for the down payment and he could finance the rest. We were hoping to have him as the only owner for reasons that I don’t want to go into at the moment.
Benjamin’s credit union was willing to give him the desired funds at 5.80% interest – the lowest of any of our financial institutions. That was too damn easy I swear.
I called my insurance company about adding Benjamin to my policy. They stated that he would have to be on his own policy even if he lived with me. I thanked the woman, hung up, and went insurance shopping. I went to the HRC website and looked up which insurance companies scored the highest on workplace equality index. Nationwide insurance scored 100%. I found an agent in my area (just down the street), called him up and got a quote to match my existing coverage on both my house and my car. To do a 1-for-1 swap with my current insurance would save me $500 a year. Moreover they were willing to put Benjamin on the policy if both of our names were on the title (apparently Texas law requires the person on the title to insure the car). I received two quotes, one with Benjamin on my policy (+$800 a year) and one with him on his own policy (+$1600 a year). I went ahead and put the gears in motion to switch my coverage to Nationwide while we went back to figure out our loan.
Loan – revisited
Benjamin’s credit union would not allow me to be a co-signer on his loan because we didn’t have joint credit. We explained that we have a joint credit card (and savings/checking account) through my credit union but that wouldn’t work. Without my name on the loan we can’t have both of our names on the title and thus can’t have them on the same policy. I contacted my credit union and asked if we could get a joint loan with them. They said that wouldn’t be a problem although their lowest interest rate is 5.95%. That’s 0.15% higher but still better in the long run if we’re going to save $800 a year on insurance. We’re only financing for 3 years which yields a savings of ~$1400 over the life of the loan if you factor in the higher rate of separate insurance policies. I had wanted to have the loan completely taken care of when I went to talk with the dealership so I asked the loan officer when I could come in and fill out the paperwork. She asked what dealership we were planning on buying from. Turns out the credit union has a contract with most dealerships in town to have the dealership file the paperwork directly to the bank and “make it easier on the customer”. That means that the dealership has to run the credit report and other credit-type paperwork on behalf of the bank. The credit union’s contract with the dealership specifies that credit union customers can not go directly through the credit union that they must go through the dealership. WTF? Ok, fine – we’ll do it that way.
I dutifully went online and used a tool to calculate the dealer price of the vehicle that we wanted to purchase including all of the features as well. I did some calculations and decided the absolute maximum amount we would pay for the car including TTL. If the dealership wouldn’t sell me the car for this price, we wouldn’t be buying it — at least from that dealership. jeffford & jonobie had recently purchased a Mazda 3 and found out that IBM employees get a special pricing plan from Ford, the X-Plan. The X-Plan starts the price negotiations at supposedly the dealer’s price (although I don’t buy that for a minute) but the price is suppose to be significantly less than the MSRP. I did some research and did the appropriate steps to obtain my Ford X-Plan PIN that I would need to present to the dealership to obtain X-Plan pricing. By this point I think we were prepared for the war.
Buying the car
Earlier in the week Benjamin and I contacted our sales person and made an appointment to come into the dealership at 3pm on Saturday afternoon. Benjamin had to work in the morning and wouldn’t get out until 1:15pm at the earliest. Shortly after he arrived home our sales person called and said that two separate couples had come in and were wanting to buy the car, could we come in sooner? We said yes (I’m wary the whole time thinking he’s just trying to catch us off guard) and leave for the dealership.
We drive up and don’t see the car in the lot next to the other Fusions. Unsure of where it might be we walked into the showroom and there it is! The car had been detailed and placed in the showroom which was very obviously why people were suddenly interested in it. The sales person set us down and asked what kind of payments we were wanting to make. I informed him that we wanted to negotiate the total cost of the vehicle, that I was on the X-Plan, provided him the paperwork, and set back. He went to go ask if his manager would sell the cost at X-Plan cost (since there were other buyers that presumably would pay more than X-Plan pricing for the car). His manager apparently agreed. The sales person then wanted to know how we were going to finance it and I said that I wanted to complete a buyer’s order with a finalized price before talking about financing. He dutifully filled out the buyer’s order, describing each line as it was filled out. Beyond the X-Plan price (which I truly believe to be negotiable even though they won’t tell you that) the only items that I believed to be negotiable totaled $100. The final price was ~$500 less than what I had decided to buy the vehicle for and instead of haggling over $100 I decided to just take it.
There isn’t much more to add – except that I had to argue with the finance manager why I didn’t want his extended warranty. When I mentioned that when Benjamin worked at CarMAX that he received more in commission for selling an extended warranty than he did for selling the car the man got on the defensive and said that Covert was a “family owned and operated” dealership and that they wouldn’t rip off their customers like CarMAX – the sleaziest dealership in the business (yeah, like I believe that).
Benjamin doesn’t like the names I’ve picked out for the car: either Cold or Fission. He does, however, absolutely love the car. I am very pleased with how well it drives, how quiet it is inside, and how happy it makes Benjamin — that in itself is worth the car’s weight in gold.
4 thoughts on “Fusion, not fission”
Yeah, for some of these factors I’d really like to try purchasing my next car in cash. I don’t like financing hassles, and financing seems to be nothing but hassles.
Of course, if I get more offers like my first car loan, maybe I’ll change my mind. Any interest rate under inflation and I’ll consider the hassle of a loan.
Congrats on the new wheels!
“…we went and test-drive every vehicle except the Camry (which Benjamin took one long look at and said ‘nope, no way’).”
As a “my last car was a Camry, my current car is a Camry, and my next car will be a Camry” kind of guy, I’m just ignoring that part of your story. :-)
Casey, you always cover your bases, don’t you?
I’m glad that you found a car for the right price. Don’t you just hate the whole experience? It’s very stacked against the customer (and, by your account, against homosexuals).
Sorry it sucked, glad you got the end result you wanted.
Sorry you picked a Ford, though… ick. :)
Re: Very informative
Making sure all of my bases are covered is just part of who I am, too true.
I did indeed dislike the entire experience (from loan to insurance to negotiation). I’m not 100% certain that it is stacked against gays per se, but they certainly don’t make it easy for any two people to buy a car. Who would have thought that “making car buying easier” was one of the many privileges that a wedding certificate grants you.
After discussing my experience with an acquaintance who is a loan officer, she said that for Benjamin’s credit union to deny us a joint loan on the basis of “no existing joint credit” rather than the resulting credit score after running our joint loan application is probably illegal. I’m almost inclined to agree with her but it is certainly not something I’m interested in pursuing as it is not worth my time.
As far as picking a Ford – my Mustang has not given me any problems beyond what I consider the standard wear-and-tear of the vehicle so I wasn’t overly concerned about buying a Ford. I would rather have purchased a Honda for their greater resale value but that isn’t as important as Benjamin liking the car he is driving.