Hi everyone. I am new to this forum. I have never bought a brand new car before, so there are a lot of things that I don't know. Some advice would be much appreciated.

About a month ago I was happily driving a hand-me-down Toyota Corolla from my sister until a high school student (probably texting) smashed into me and totaled my car. I got a decent payout from the girl's insurance company, and now I'm finally ready to buy my first brand new car. I have a full-time job, and I am a part-time student. I have pretty good credit (last I checked my score was around 740), and I have virtually no credit card debt. I do have a sizable amount of student loan debt, though.

I'm concerned that right now my credit is in a particularly sweet spot with all my credit card debt being just paid off and before the new wave of student loans being added to it. I'll be having to add some loans for my summer and fall tuition pretty soon, and I'm afraid that might lower my credit score. I already got approved for financing through Capital One with a 2.93% interest rate, which I think is pretty good. That offer expires on June 11, but I doubt I'll be able to purchase a Fit by June 11. Do Honda dealerships let you buy a car that they don't yet have on their lot? Could I go ahead and purchase the car to lock in the good interest rate even if they can't physically give me the vehicle until a month or two later? I was wondering if anyone has ever done anything like that before?

 

I thought I might add this... right now I am driving my grandmother's 1995 Ford Taurus. She is in her 80s, and she doesn't drive anymore, so she said I could keep it as long as I need. However, I pretty much hate it. The driver's side door won't unlock, so you have to unlock it from the passenger side and shimmy over. Also, there's a blinking light indicating there's something wrong with the air bags. My mom took it to a mechanic who said it would cost more than it's worth to diagnose the problem, so I may be driving around a vehicle without working air bags. That makes me a bit nervous.

I've been researching cars for about a month now, and I've pretty much decided I want a 2015 Fit. I am also looking at the Mazda 3, but it's a little bit more expensive than the Fit. I guess the Toyota Corolla is also a possibility since they've served me well in the past, but I'd like something with a bit more personality. Anyway, I've been especially affected by the Fit delay because it means I'll probably be driving my grandmother's Taurus well into the summer. It makes me almost want to give up on the Fit and just go for the Mazda.

 

Yes, dealerships will let you purchase a car and then wait until it is delivered, pending they have the one you want on order. Typically you don't start payments until the car is delivered though, just the deposit. So I'm not sure how that would play out with you not going through Honda Financial. I'd go in and talk to a dealer and Capital One.

 

I wouldn't mind going through Honda Financial if they could match (or do better than) Capital One. If I did go in and pay a deposit the financing offers would have to be settled now, right?

 

With the FED about ready to increase rates, I guarantee you that the rate Capital has given will go up, it you renew it after June 11.
Dealerships will be happy to accomodate anything a buyer requires as long as they can make a legitimate sale. Your financing the auto through your own source, not leasing. Your bank will accomodate you as long as you can furnish them with a VIN #.and the dealership will be more than happy to write-up a bill of sale to pre-sell any incoming vehicle. They have already done so with a couple of FF.
Make a visit to not just one Honda dealership, but as many as you can and see who has the vehicle you desire (arriving by first week in June). From the info., other threads in this forum have indicated, looking like mostly EX's in CVT's are first to arrive. If that is what you after, your in luck!!! Happy shopping and post what you decided!!!

 

It used to be you bought just about every vehicle in advance! You specified exactly what equipment you wanted and the factory built it that way!

The only fear I would have in the current situation is that the dealer would play some sort of games when the car is finally delivered. There's also the question of when the car will be delivered, as that date continues to slip backwards into summer.

 

Well, I wouldn't want to wait TOO long, but I could probably deal with driving the old Taurus for a couple more months if need be if that means I get the car I want. I plan to drive this car for 8-10 years, so I don't want to make this decision lightly.

My main concern is locking in that interest rate. I don't want to wait around and then kick myself if I get a higher interest rate later in the summer.

 

That's correct. You won't be signing for the car until financial details are set.

You should also note that the rate you get is dependent on your credit score. On the grand scale of things, you won't be saving much if you miss out on the Capital One deal. Maybe a few hundred dollars. Even if you get offered 4% by Honda, you'd be spending $210 more on a $20,000 car. For a 60 month loan, this would increase your payments by $3.50. If you have good credit, I'd be surprised if Honda offered anything over 5%. You'd probably be looking at 1.9-3%.

 

Thanks everyone. I think I have nothing to worry about. I talked to a salesman today, and he said I shouldn't be concerned about the interest rate because with my good score I should be fine. He said even if my credit score goes down 50 points between now and the end of the summer, I still should be able to get the best financing rate they have to offer. I guess I was being a little bit too paranoid. I just don't trust the credit industry, so I get worried about that kind of stuff.

He also told me I could put down a $500 deposit today and order a purple EX that would be reserved for me when it comes in, but he said he can't tell me with any certainty when it will come in. He said at the earliest it would be in July. I told him I'd hate to do that without test driving the new Fit. He said they probably won't have one to test drive for another two weeks. Do y'all think I should just test drive the old one and then go for it? The old one is going to be so different though...

I've got appointments to test drive the Ford Focus and Mazda3 on Saturday. I went to the Mazda dealership today, and boy the Mazdas are spectacular-looking, but the one I'd buy is about $2,000-$3,000 more than the Fit.

Sigh. Decisions are hard.

 

You might even get a better rate through Honda financing. I preodered my Fit 2 weeks ago and was able to get the lowest they offer right now which was 2.7% interest (my score is in the 790's). Capital One has a habit of offering time sensitive "promotions" to create a sense of urgency, thinking you have to buy now now now now!! In reality with your credit you should get awarded that rate any where you go really. Don't sweat it. On a 3 year lone a 2.9% interest rate only really amounts to around $500 which isn't that much.

This is my first "new" car too that I'm going to 100% pay by myself, so I know where your coming from!

I have also test driven other cars, and I'm holding out to test drive my Fit before making a formal decision (even though I've basically already committed to it). I dislike cars very much, Mazda used to be reliable but I'm not quite sure about now since it's been a pretty long time since I've really researched them. I drove the Chevy Sonic and Chevy Spark and the quality and value is just NOT there compared to the Fit, even though they basically matched the Fit price quote I had from my dealer, I would be missing out on the great features I love about my existing fit. The Kia Soul was a good choice also, but after I saw the poor MPG rating I decided not to even bother with it.

Wait to drive the new one before putting your money down on anything. They will start trickling in within two weeks and then you can make a better educated decision. It will be a while before you will be able to purchase a purple one and other 2015 Fits will be available to test drive very soon in troves!

 

So what would happen if you decided you wanted something else? Would they just keep your deposit?

 

For my dealer, I did not have to make any sort of deposit, only pre-qualify. So lucky me there I guess I can walk away from the deal. This is at an AutoNation Honda.

But yes, if you put the $500 down they will most likely keep your deposit if you walk away.

 

Depends on the dealership. Since any Fit that will hit the lot in the next couple months is guaranteed to sell within days, they may be nice and return most of your deposit, just keeping some charges for processing costs. That's IF they want to be nice.

 

I had to sign an acknowledgment that i would lose the $500 if I terminated the deal without cause.

 

Whoa, I have never heard of someone losing the $500.

 

I didn't test drive the Fit and still signed for one. It's a Honda, it will be nice, and by all accounts the new Fit is pretty nice.

 

I obviously have not driven a 15 yet but enjoyed the 13 I took out for a test, looking forward to the new Fit.

 

The dealership I'm working with doesn't have any '13s left to test drive except ones with manual transmission. I've never driven a manual before. The guy said he could drive, and I could ride around with him, but that's not really the same. He said I might be better served test driving a Civic since it drives very similar to the new Fit. I don't know what I want to do. I can't see myself putting down a deposit without driving it first. He said he might be getting in a couple '15s in two weeks, but they'll be sold immediately. There might be a tiny window of time in which I could come in for a test drive. Anyway, I'm torn between the Fit and the Mazda3, and I won't be able to break the tie until I drive both.

 

The salesman will do whatever it takes to get you to buy. A test drive in a '13 or a Civic won't be anything like the new car, simply because the car is different.

If you buy into their "feeding frenzy" you'll end up paying dearly for it. Do you really need to have the car the first week it's available?

 

No, I'm not an "early adopter" consumer nor a car enthusiast. I've never bought a new car before in my life. This is my first time. I only have a sense of urgency because I'm driving a very old and potentially unsafe vehicle right now.