Buying a used car out of state

[Cyclonesince78]

Well I pay cash for most of my vehicles (if I dont lease them) so I dont really worry about financing. However what I was getting at was if youre buying say a $50,000 truck, I would rather have that $50,000 invested in something making me money or even in the bank getting interest. So really it's kinda stupid not to do 84 months. But thanks for your incorrect opinion.
This was in April, saw an advertisement in Omaha paper.

If you buy most of your vehicles with cash you're not taking your own advice. Unless your excuse would be that they didn't offer 0% interest at the time of your purchase. If that is your excuse, you could have probably still got 0.99% or 1.99%. With $50k you should be able to yield a greater return than 1.9%. So essentially you're a hypocrite.

 

[bringmagicback]

Well I pay cash for most of my vehicles (if I dont lease them) so I dont really worry about financing. However what I was getting at was if youre buying say a $50,000 truck, I would rather have that $50,000 invested in something making me money or even in the bank getting interest. So really it's kinda stupid not to do 84 months. But thanks for your incorrect opinion.

Are you just naturally a ****** bag? Or is it something that you picked up later in life?

For the people that are going pay check to pay check with minimal savings 84 months is stupid. Most people don't use auto loans as investment opportunities. For all of us that claim on the internet to have no debt, be millionairs, buy $50,000 cars in cash, then I can see how it would make sense for that unique person. Thanks for your feedback though internet rich guy.

I was just pointing out you shouldnt tell someone to buy a cheaper car because they cant afford it. People do things for different reasons (business) Sorry I hurt your feelings. Also, I never said I was rich ( wasnt aware 50k was rich) were all gonna make it brah.

 

[Cyclonesince78]

I was just pointing out you shouldnt tell someone to buy a cheaper car because they cant afford it. People do things for different reasons (business) Sorry I hurt your feelings. Also, I never said I was rich ( wasnt aware 50k was rich) were all gonna make it brah.

You're right I should instead tell someone to live above their means. By the way, still waiting to hear why you are preaching this long term loan option, while you yourself are buying your vehicles in cash. Waiting in anticipation.....

 

[CyFan61]

84 months is ridiculous. You're just hurting yourself if you do that. When you look at trading in 4-5 years, you'll be way upside down. Keep it at 60 months or less. If you can't afford a 5 year payment get a less expensive car.

Why is 0% on 84 months bad? Do you not keep your cars for 7 years?

I would enjoy paying no interest on a car and getting two extra years to do it. But if your lifestyle is "New car every 4-5 years" then it is not right for you.

 

[kilgore_trout]

There's a simple reason why used cars are relatively expensive. A lot of decent ones got bricked by a government program a few years ago. Supply and demand.


PS. You pay sales tax when you register the car.

As someone who is semi-looking into a new vehicle, I was surprised at the price of used cars. So I would at least take a few minutes and research what it would cost new.

I was looking at used Dodge Chargers and surprised at how little difference there was between new and used. Here is an example:

USED 2012 Charger R/T - 22,461 miles - $29,889
NEW 2013 Charger R/T - Similar specs - $29,562 (no leather), $31,560 (w/ leather to match used car)

Seems silly to buy the used one.

 

[dmclone]

I'd guess about 1% of the people with 84 month car loans (whether or not it's 0%) are financially secure.

 

[CYEATHAWK]

I always buy my cars out of state now, but I'm ashamed to say that I don't even remember how the tax thing works. It seems like I paid Iowa taxes when I got back, but I'm not positive. Props to you for going out of state though to find something. The lack of competition in Iowa is literally a joke and I've always saved a good $3,000 to $3,500 by being willing to drive somewhere to get a car where there is actually competition. For instance, I made my last purchase in Chicago of a certified used Acura where I found 5 different vehicles spread throughout the city of the exact car I wanted (miles, color, interior... etc). I then proceeded to go one by one in checking them out with the intention to buy one of them. Shoot, it is easy to have confidence you'll find one you like when the sticker price is already a good $3,000 under any equivalent car in Iowa. Iowa dealers have got too used to the idea of being the only show in town. If you don't believe me in the pricing, just take a look at cars.com and run some comparisons yourself. It is truly a joke.

This^^^. Ebay is where I have purchased my rides, and all but one from Texas(no salt, bitter cold mornings) where each car needs inspected every year before they get their window sticker. But Tigger is correct....Iowa dealers think they are peddling gold. You can go online right now, find something 1200 miles away that has seen nothing but tropical conditions, fly down and drive home and STILL be money ahead over something you would purchase here.

 

[JWIL4CY]

This^^^. Ebay is where I have purchased my rides, and all but one from Texas(no salt, bitter cold mornings) where each car needs inspected every year before they get their window sticker. But Tigger is correct....Iowa dealers think they are peddling gold. You can go online right now, find something 1200 miles away that has seen nothing but tropical conditions, fly down and drive home and STILL be money ahead over something you would purchase here.

I've always been too scared to buy a car from ebay, but maybe I'll look into it. How do you know the car is in good shape before you buy it?

 

[cycloneworld]

There's a simple reason why used cars are relatively expensive. A lot of decent ones got bricked by a government program a few years ago. Supply and demand.


PS. You pay sales tax when you register the car.

My friends who work in the insurance biz also say to make sure any used car is Certified Pre-Owned too because of all of the flooded/totaled out vehicles from Hurricane Sandy that will make their way back into the market.

Again, for what I'm looking for it makes way more sense to buy new (I never thought I'd say that with a car).

 

[bringmagicback]

You're right I should instead tell someone to live above their means. By the way, still waiting to hear why you are preaching this long term loan option, while you yourself are buying your vehicles in cash. Waiting in anticipation.....

I think I already explained it? For example, if we are going to buy a new combine for example, a deal they often do, instead of taking 300 grand out of the bank, we can finance that money at 0% for a time, and use the money elsewhere (for example land down payment/instead of running operating loans ect). Its free money, whats so hard to grasp? Had they had 0% when I bought my last vehicle I would have done that. Kinda silly not to. I guess I dont get to concerned about telling people how to live, they can do whatever they want, I was just pointing out that there was 0% interest.

 

[JWIL4CY]

My friends who work in the insurance biz also say to make sure any used car is Certified Pre-Owned too because of all of the flooded/totaled out vehicles from Hurricane Sandy that will make their way back into the market.

Again, for what I'm looking for it makes way more sense to buy new (I never thought I'd say that with a car).

I don't borrow money so new or certified pre-owned are out of my budget. The carfax should tell you if the vehicle was totaled due to flooding.

 

[bringmagicback]

I don't borrow money so new or certified pre-owned are out of my budget. The carfax should tell you if the vehicle was totaled due to flooding.

Certified pre owned can sometimes be a rip off, basically the standards are certain year range and mileage range plus tread % on tires ect.

 

[JWIL4CY]

I think I already explained it? For example, if we are going to buy a new combine for example, a deal they often do, instead of taking 300 grand out of the bank, we can finance that money at 0% for a time, and use the money elsewhere (for example land down payment/instead of running operating loans ect). Its free money, whats so hard to grasp? Had they had 0% when I bought my last vehicle I would have done that. Kinda silly not to. I guess I dont get to concerned about telling people how to live, they can do whatever they want, I was just pointing out that there was 0% interest.

If you had a paid for car would you take a loan out on it to invest? That's essentially what you are doing. Pretty crazy if so.

 

[Cychl82]

I found a couple cars that I like online, one is in Lincoln and the other is in Kansas City. They are both from dealers. Could someone walk me through the process of buying a vehicle out of state as this will be my first time doing so. Do you pay the tax to the state you are buying it from or do you bring it home and then pay the use tax to Iowa?

id recommend not buying a lincoln, before i bought one i had 2 friends saying not to do it cause itll nickel and dime you to death on repairs and yes that did happen. The engine also blew twice before i junked it out because their engines even if serviced regularly can just be crap. I would steer clear of lincolns

 

[bringmagicback]

If you had a paid for car would you take a loan out on it to invest? That's essentially what you are doing. Pretty crazy if so.

No I wouldnt. That would be pretty crazy if so.

 

[dmclone]

Certified pre owned can sometimes be a rip off, basically the standards are certain year range and mileage range plus tread % on tires ect.

I somewhat agree but you have to look at everything. Certain cars (BMW comes to mind) can be money pits once they are off warranty.

I would have bought my car just plain used but the local dealer had the exact model/year that I wanted and was certified. Reliability wasn't a concern with this model. The car had about 28k miles when I bought it. It came with brand new tires and they did the 30k mile service which I think would have cost me $500+. So in reality I probably paid an extra $500 for a 50k mile warranty.

 

[bringmagicback]

Oh I agree 100% in that case, especially on money pits like BMW/Mercedes ect

 

[CYEATHAWK]

I've always been too scared to buy a car from ebay, but maybe I'll look into it. How do you know the car is in good shape before you buy it?

The most important thing by far.......never buy from a private individual. Always buy from a dealer with a ton of feedback. Because then it's not just Tom, **** and Harry in the local pub who hear about it if they sell you a lemon. These dealers business is done on line and they depend on positive feedback. Hence it is in their best interest not to let the entire planet know they are peddling garbage. Most of them have the carfax already paid for and ready for you to read in the vehicle add. If a vehicle you are interested doesn't, contact the dealer and ask. One thing to remember if you do buy from Texas.....most cars will have a few more miles on them than a midwest car of the same age. It's a big state.



I have taken four one way trip to Texas in the last 11 years and never been disappointed. I have said it before in previous threads, I have had better service before AND after from dealers in the Dallas/Fort Worth and Houston areas than what I get up here in so called midwest value's territory. So just go to ebay motors, pick out the make, model and year you are interested in and see what pops up. If it is something you are interested in...get in contact with the dealer and see what happens.

 

[BigCyFan]

I found a couple cars that I like online, one is in Lincoln and the other is in Kansas City. They are both from dealers. Could someone walk me through the process of buying a vehicle out of state as this will be my first time doing so. Do you pay the tax to the state you are buying it from or do you bring it home and then pay the use tax to Iowa?

I live in Ames and just bought a vehicle from Lincoln three weeks ago. I financed it through the dealer and paid no taxes. I am registering it and paying the taxes in Story County. It was sweet buying a car with no tax (for a couple of weeks that is...) Hope this helps. And it is true, I paid nearly $2000 under book value for a 05 Nissan Murano. I found the it on cars.com. In my opinion, it absolutely worth being willing to drive a few hours to save that much money. Other than the drive (and plethora of fusker crap everywhere), it was easy.

 

[JWIL4CY]

The most important thing by far.......never buy from a private individual. Always buy from a dealer with a ton of feedback. Because then it's not just Tom, **** and Harry in the local pub who hear about it if they sell you a lemon. These dealers business is done on line and they depend on positive feedback. Hence it is in their best interest not to let the entire planet know they are peddling garbage. Most of them have the carfax already paid for and ready for you to read in the vehicle add. If a vehicle you are interested doesn't, contact the dealer and ask. One thing to remember if you do buy from Texas.....most cars will have a few more miles on them than a midwest car of the same age. It's a big state.



I have taken four one way trip to Texas in the last 11 years and never been disappointed. I have said it before in previous threads, I have had better service before AND after from dealers in the Dallas/Fort Worth and Houston areas than what I get up here in so called midwest value's territory. So just go to ebay motors, pick out the make, model and year you are interested in and see what pops up. If it is something you are interested in...get in contact with the dealer and see what happens.

Sounds good, thanks for the info. So if you buy a vehicle from a dealer off ebay are you still able to do a trade in on your old vehicle like normal?