In the car-buying business, it seems there are still folks who are yearning for the prices of days past. That’s according to Ron Tonkin Chevrolet (@rontonkinchevy), a Portland, Oregon-based car dealership.
In a viral TikTok posted to the company’s social media account, a sales associate slams a buyer for their lowball offer.
“When the customer wants a new car with a $200 payment with $0 down,” a text overlay in the video reads.
The employee gives a baffled look to the camera. Following this, he grabs a toy car on his desk and pushes it toward the “client,” implying the customer’s expectations are unrealistic given the lack of money they’re putting down. Along with the $200 monthly payment they’re seeking, the customer’s asking for too good of a deal.
@rontonkinchevy We can figure something out 🤗 #toycar #carpayment #cars #trucks #chevy #chevrolet ♬ never be the same – favsoundds
This offer wasn’t so unrealistic in the past
Many added their two cents in the video’s comments section. Several say there’s been a whiplash-fast shift in car pricing in just a few years.
One user wrote, “To be fair car prices are totally outrageous these days.”
Additionally, this TikToker attributes the rising costs of car payments to inflation. They wrote, “The math has never changed but people don’t realize the prices of everything have gone up since 2006 or whatever when cars were $12k brand new.”
One person writes that just eight years prior they leased a new Mazda for less than the monthly price of a fancy studio gym membership. “Lea[s]ed a 2016 Mazda 6 for 155 a month 0 down those days are long gone,” they said.
Despite these nostalgic prices of yesteryear posts, others claim these deals still exist. Someone writes commented, “I don’t see a problem with this.”
Moreover, this TikToker says their Nissan Frontier payment wasn’t that much higher than the one in Ron Tonkin’s clip. “I got 0 down 260 a month on a Nissan frontier,” they shared.
Others pay much higher monthly car notes
One user writes the best deal they got on one of Toyota’s most affordable cars was more than double the $200 asking price. “Hey man I got a Corolla back in 2020 for 0 down and $500 monthly payment,” they said.
This person argues that down payments aren’t necessary at all. “I’ve never put a down payment on a car in my life,” they said. “It’s absolutely not necessary.”
As does this individual: “Always put 0 down cause it’s going in their pocket.”
Nevertheless, these viewpoints appear to contradict what a car rep said in a viral TikTok. According to this salesperson, a hefty down payment will negate the need for a high credit score.
Why are car payments so high right now?
According to CNBC, a combination of high interest rates being offered by banks across the board and inflation are to blame.
Because of an increased cost of goods across the board, high-ticket items, such as cars and homes, were raised exponentially.
If you are actively looking for new car deals, a slew of resources are out there. This US News piece shares manufacturers’ incentives for a new car purchase. Opting to go for a vehicle just coming off of a two or three-year lease could be a good way to lower your monthly payment.
Naturally, if financing a reliable long-term vehicle is your desire, stick with certain reputable brands. Many mechanics recommend Toyotas, Hondas, and Mazdas as some of the most dependable cars. Just ensure you perform your due diligence by keeping it properly maintained.
What’s a good car note price?
Several factors will determine what a consumer will be paying monthly on their vehicle. The first is ensuring the car sales rep isn’t taking you for a ride. Make sure you know the available inventory of the car you want to buy. Get quotes from other local dealerships offering the same make and model, too.
Additionally, don’t negotiate a monthly payment. Instead, ask what the total buyout of the car is going to be. Your credit score will also largely affect the interest rate on the car you’ll be applying for. A good practice is to never rely on the dealership’s finance department. This is because they simply call a bank, submit your information, and act as an intermediary between you and the financial institution.
This is why so many auto financing analysts urge car buyers to seek loans outside the dealership. This way you can walk into the dealership with a pre-approved check for the price you want to pay for the car. All you’ll have to do, if they agree to your price, is hand over the check. Unless the dealership can beat the interest rate on the loan you secured yourself.
The average monthly car payment in the US looks bleak
Yahoo Finance writes that new cars are costing Americans a whopping $726 a month on average. Used cars haven’t fared that much better, either—they’re costing drivers around $533 a month.
Furthermore, Bankrate reverberates these figures with slight aberrations. The outlet writes that Americans spend $735 for their new whips every month. Used car customers save a little over $200 monthly with a $523 average note.
The Daily Dot has reached out to Ron Tonkin Chevrolet via email.
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