I saved thousands using the Loan Calculator app!

Finding the Right Car

Previously, I had bought 2 new cars from a dealership. I shopped that dealership online and found a new $21,000 car for my son. We test drove it. He liked it.

We grabbed lunch and talked about the various dealerships we had visited, the costs of the cars, looked at his budget and what he was willing to commit to. We calculated $415 a month for $22,000 at 5% interest rate. He was not willing to commit $22,000 for the car. I did not want him to get into a high miles used car that was going to create high anxiety and cost as much as a new car in the long run.

I agreed to pay $200 a month knowing that this new car will give him peace of mind for at least 2 - 3 years. So now I have skin in the game.

The Dealership Negotiation

My son and I went to the dealership and worked with salesman that had sold me my truck previously thinking the previous sale would make buying the new car go smoothly. I called him ahead of time saying I wanted a drive out price of $22,000 and a low interest rate.

The salesman and I negotiated a drive out price of $22,000 at 7.5%. The Loan Calculator app calculated the payments at $440 a month which was not verbalized in the negotiations.

I looked up at the salesperson and the sales manager in surprise and disappointment. The salesperson knew I was a software engineer and was really good at math. And that I had dealt with the salesperson before.

I refused the numbers and had them adjust the monthly payment to reflect the agreed upon interest rate and correct to $440 a month payment.

The Lesson

Going into a car dealership and negotiating loans with sales people on real and big money is scary and complicated. Small numbers become really big over time.