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tell me about buying a car
Posted by: mattkime
Date: August 30, 2016 09:25PM
the wife and i are continuing our discussion of nyc-xit. this will certainly mean buying a car. I've never owned one - went to nyc for college, had short stints in other city centers but i've just never needed one.

how the hell do i do this?

i'd like to do something that makes financial sense but within reason i'm not sure there's such a thing when it comes to cars. i don't (yet) have my ego tied up in a car. we have a baby. we're of normal human dimensions. i'd like something roomy enough to meet our needs but not much larger. fuel efficient would be nice (duh) um...i bet i have a strong opinion about these things than i realize but i haven't developed yet.

thats pretty wide open, isn't it?

go!



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Re: tell me about buying a car
Posted by: jdc
Date: August 30, 2016 09:30PM
budget?

do you think AWD will be a necessity (it usually isn't). More babies on the way?



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: tell me about buying a car
Posted by: space-time
Date: August 30, 2016 09:33PM
don't overthink it. look at what friends/family is driving and ask them for advice. After all you do trust friends/family more than a bunch of strangers on a forum, right?
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Re: tell me about buying a car
Posted by: Michael
Date: August 30, 2016 09:42PM
Honda CRV. They're bringing a new one out next year. I'd look at the automatic braking that's currently at the high end but maybe they'll bring it down to a lower trim level. With a baby in the car there's a real potential for distraction and the auto braking takes some of the danger out that. The CRV is tall enough that you can see what's going on and small enough that you can drive it without worrying about hitting stuff. Easiest way to buy one is through Costco's buying service (or some other buying service). Or find a place that has an online advertised price that's several hundred $ above invoice. Or decide your price (if you get the new model CRV next year it will likely be at least $750 above invoice) and go to a dealer and offer your price, be calm and don't spend more than a few minutes negotiating back and forth, don't "wait for the manager" for more than a few minutes and be prepared to walk. It usually takes me 5 min to negotiate a price on the new one and a bit more than that on the trade in. The big time suck is waiting for their office to prepare a rather impressive amount of paperwork. And, by the way, be sure to read all the papers you are going to sign. Never can tell what's in them! Oh, and arrange your financing (if you need it) before you go in. Then if they happen to have a smoking financing deal at the dealer you can take it or you can take the (likely better) financing from your credit union/bank.
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Re: tell me about buying a car
Posted by: anonymouse1
Date: August 30, 2016 09:42PM
Lots of choices. Used Honda Civic four door is a good place to start. What's your budget? Where are you going to live?
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Re: tell me about buying a car
Posted by: tenders
Date: August 30, 2016 09:44PM
Buy something that seems reasonable from a friend whose family is expanding, at the appropriate Kelly Blue Book price for a person-to-person transaction. There are a few forms you have to follow up with at the DMV, sales tax to pay (even on a used car), and a state inspection that almost any mechanic can do.

Then, do not neglect routine maintenance like oil changes, windshield wipers, air filters, and tire pressure. I find a lot of the other maintenance like brakes to be interesting, and I also like to avoid paying a mechanic $50-$100 an hour to do things I can do. Most people are the opposite.

Then, accept that vehicles are depreciating mechanical devices that are not eternal. When unscheduled maintenance becomes more frequent or expensive than you are willing to bear, it is time to replace it.
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Re: tell me about buying a car
Posted by: C(-)ris
Date: August 30, 2016 09:46PM
New or used? Cash purchase or financing? Budget?

I'm up to 33 cars purchased now...so pretty much the opposite end of the spectrum as you.



C(-)ris
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Edited 1 time(s). Last edit at 08/30/2016 09:48PM by C(-)ris.
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Re: tell me about buying a car
Posted by: tenders
Date: August 30, 2016 09:48PM
PS: everybody will want you to buy THEIR favorite car. This is not useful information for a first-time buyer, and even if you decide to take somebody's advice on that you will never be able to find the exact model car, at a place you can see it, with the features you want.
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Re: tell me about buying a car
Posted by: mrbigstuff
Date: August 30, 2016 10:02PM
More to the point - do you know how to drive a car?

And drive well? With a baby, you may want to bone up on it.
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Re: tell me about buying a car
Posted by: cbelt3
Date: August 30, 2016 10:02PM
It depends on where you will live. Snow and ice ? 4wd is readily available. Lots of great brands. You'll pay more for the reliable brands. Honda , Toyota, Subaru are often the gold standards there. It also depends on your expected use.

Good luck , especially with the Ny exit strategy !!
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Re: tell me about buying a car
Posted by: mattkime
Date: August 30, 2016 10:14PM
Quote
mrbigstuff
And drive well?

I know that most people consider themselves _excellent_ drivers. And by their standards I'm sure I'd qualify.

(yes, i know how to drive. can be a little rusty but i'm fine)

Quote
cbelt3
Snow and ice ? 4wd is readily available.

pfft, didn't need 4wd living in wisconsin (age 16-19). 4wd or 2wd doesn't matter if you're on a sheet of ice. ....seriously though, being careful is the most important thing.
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Re: tell me about buying a car
Posted by: davester
Date: August 30, 2016 10:16PM
My only really strong recommendation is to not throw your money away by buying new. A lightly used car is what you want and will cost you many thousands less than a new car. My experience indicates that more upscale used cars are generally less abused than the cheaper models and don't cost a whole lot more than the cheap ones. That's where the low hanging fruit is as far as I'm concerned. Look for an ultra-low mileage used luxury model. Look at the consumer reports reliability data to determine which ones to avoid.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: tell me about buying a car
Posted by: mattkime
Date: August 30, 2016 10:18PM
the budget is to be decided. my wife threw out the number $12k but i have no idea how that will hold up.

I have cash in the bank to buy but thats also our downpayment for a home. lower home prices, higher car budget. it depends upon the numbers.

we have a lot of planning to do.



Edited 1 time(s). Last edit at 08/30/2016 10:35PM by mattkime.
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Re: tell me about buying a car
Posted by: Dennis S
Date: August 30, 2016 10:31PM
Toyota. Go to the library and get their Consumer Reports Used Car edition.



Edited 1 time(s). Last edit at 08/31/2016 01:37AM by Dennis S.
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Re: tell me about buying a car
Posted by: jdc
Date: August 30, 2016 10:45PM
Quote
mattkime
the budget is to be decided. my wife threw out the number $12k but i have no idea how that will hold up.

You can't finance? You should be able to get under 3%.



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: tell me about buying a car
Posted by: davester
Date: August 30, 2016 11:07PM
Quote
jdc
Quote
mattkime
the budget is to be decided. my wife threw out the number $12k but i have no idea how that will hold up.

You can't finance? You should be able to get under 3%.

Seriously? A car is a depreciating asset. Unless you have money to burn financing doesn't make a whole lot of sense.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: tell me about buying a car
Posted by: jdc
Date: August 30, 2016 11:34PM
whey spend the house down on a car?

I wasn't advocating new, but any car, new or used is a dperciateing asset.

Hell, lots of things are depreciating asset -- like the home I bought in 2004 -- or take whatever device you are typing your responses on -- but that doesnt stop us from buying them. New or used.

On such a small amount like $12,000, @ 2.75% (what my credit union offered us) for 60 months = $215/month -- and will cost you $842 in interest. Seems reasonable? About $160 a year? $13 a month?

if you are looking at $12-13-14K, say for a CUV, you are looking at something at least 7-8 years old with 100K miles on it...



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: tell me about buying a car
Posted by: max
Date: August 31, 2016 01:29AM
Don't forget, you may need two cars......
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Re: tell me about buying a car
Posted by: Ombligo
Date: August 31, 2016 04:39AM
I generally don't finance, but my wife's last car was offering 0%. At that rate, I'll finance every cent possible.

Your going right into model switchover time, prices will be lower on the 2016 models if you go new. If you go used, you will pay less but need to factor in higher interest if you finance - some run your numbers. I like used, but sometimes it just doesn't make sense (if a price is within ~$2500, I'll go new)

Don't fall for the Costco/Sam's Club prices - dealers will do better. I have found a decent target price for new cars can be found using carsdirect.com.

When you look at prices, remember to add in sales tax. Also get an insurance quote - a car considered a sports model (and it may just have a spoiler) will have higher insurance rates than a more mundane version.

As for make, honestly most of the big names are safe bets EXCEPT Chrysler/Fiat - steer clear of that one. But Honda, Toyota, Nissan, Hyundai, Ford, Chevy are all pretty safe bets. A small caveat Hyundai is a great buy but it's nearly identical rebadge Kia seems to have lots of small issues. No idea why, I'd look at Hyundai but not Kia (but that is me).

Dollar for dollar on new, Hyundai and Nissan are the best buys. Toyota and Honda are great cars but you will pay more generally - and that is true both new and used.

With 12k to spend, I would initially look at a used (2014 or newer) Hyundai Accent, Nissan Versa or Sentra. You should find those for under $11k and 10,000 miles - virtually new. If you want larger, the Nissan Altima or Hyundai Sonata would be possible in the same time frame but mileage will go up to 20,000.

Take a day, visit lots to look, not buy. Don't get involved with a salesperson other than too gets keys to get inside. Compare everything - your going to find some that you really like, and others not so much. If your just not comfortable in a certain model, cross it off, that will then narrow your choices down. Try to get to 2-4 choices and then deal.

I would also stick with a dealer this time. You will pay more but used cars on dealer lots are pre-vetted somewhat. Used lots are generally auction cars, and private sales can be your best deal or worse headache. Unless you have a trusted mechanic, your not ready for private sales.

For a first buy, take a friend who has done this before. Somebody reasonable who will advise not dictate. You don't want the hard bargainer, just someone watching your back and offering some friendly advice.

Good luck



“No persons are more frequently wrong, than those who will not admit they are wrong.”
-- François de La Rochefoucauld



Edited 1 time(s). Last edit at 08/31/2016 05:19AM by Ombligo.
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Re: tell me about buying a car
Posted by: Sam3
Date: August 31, 2016 04:41AM
Quote
max
Don't forget, you may need two cars......

Good point, if you and your sweetheart are working at jobs in different locations, and maybe at different times, it's almost a certainty you'll need two cars, unless either of you can get to your place of employment via public transportation.

When you find a place in suburbia, are you planning on having pets? Dogs? Are more kids on the horizon? You may want to consider a minivan. Toyota and Honda are more reliable, Chrysler will be cheaper used. We have a 2003 Town and Country, rusty on one side, but has 270,000 mile on it. No major issues. Plus with a minivan you can haul a lot of stuff.
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Re: tell me about buying a car
Posted by: Mr645
Date: August 31, 2016 06:21AM
First set a budget, then decide what size, type of vehicle (Sedan, wagon, suv etc) and then features that are important to you.

Typically Japanese cars are the most reliable, Honda, Toyota, Acura, Mazda, Subaru, Lexus being the top brands. Japanese cars also tend to be boring to drive.

American brands, well GM and Ford anyway, excellent reliability and state of the art features.

European brands such as Mercedes, BMW, Audi, have the most engaging driving dynamics but will be costly to maintain and repairs once the warranty is over.
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Re: tell me about buying a car
Posted by: billb
Date: August 31, 2016 06:22AM
yeah, moving to the burbs will likely mean two cars

if in the normal course of a day you both took different subways/cabs you'll need to replace each of those modes of transport.


Each car:
purchase price
sales tax
excise tax
insurance <--- do NOT buy a car without knowing what the yearly insurance cost will be because the variability here is can be $500-$2,000/year



people buy cars and houses with loans/leases all the time

the interest is an additional expense, the real problem with loans/leases s it becomes far too easy to buy more car than you actually should be affording or budgeting for.
You set yourself up for a lifetime of debt and making saving/"getting ahead" nearly impossible.

Don't do that.


beaters get you from point A to point B just like a subway or a cab/bus.
It's all you need.
What you want might be something else. Do need first. Do want when you have more money than you know what to do with.


edit



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Edited 1 time(s). Last edit at 08/31/2016 06:24AM by billb.
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Re: tell me about buying a car
Posted by: dk62
Date: August 31, 2016 06:43AM
With the baby, I would over-emphasize safety. That is why our first several cars were Subarus. Now that they are out of the house, I am in a BMW. Wife preferred to stay with the Subaru family.
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Re: tell me about buying a car
Posted by: smacks
Date: August 31, 2016 06:58AM
Never. Ever. Buy. New.

With some looking around, 12k will get you into a great used vehicle.
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Re: tell me about buying a car
Posted by: mattkime
Date: August 31, 2016 07:30AM
Quote
billb
yeah, moving to the burbs will likely mean two cars

who said we're moving to the burbs??

I would like to end up somewhere where we could get along fine with one car. Traveling via bike helps here.

but once again, i have no idea if this is likely.

oh, i'll be working from home. at least initially. the plan is to continue my current job but working remotely. we have a number of employees that do this.

...but yes, its possible that we'll need a second car.

Looking at the cost of cars, and the cost of our current rent, i think we've done pretty well to keep our expenses low. $1,600/month rent. subway is about $100/month but i don't use that....but take that amount and it put into bikes. ...but cars are also a big initial expense that one hopefully keeps around for 10+ years.







Edited 1 time(s). Last edit at 08/31/2016 07:41AM by mattkime.
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Re: tell me about buying a car
Posted by: Will Collier
Date: August 31, 2016 07:52AM
See if you can find an auction broker in your area. That's the most economical way to get in a low-mileage used car, which all things considered is probably your best bet. Settle on a make and a model and the broker will find for you what's coming up at the auctions. You tell him what your top price is, what you want/don't want in options, and he'll go find a car (actually several cars, nature of auctions being what it is, it'll probably take a few tries to get what you want; that's no big deal).

He'll charge you a flat fee plus whatever the auction fees and transportation costs are (if any, if you're lucky the auction will be local). Saved us thousands on car dealer prices, and we didn't have to haggle with sales weasels.

Problem is, most auction brokers don't advertise (dealers hate them and try to get their auction privileges revoked), so you'll have to search them out. Google and word of mouth are your friends.



Edited 1 time(s). Last edit at 08/31/2016 07:54AM by Will Collier.
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Re: tell me about buying a car
Posted by: Bixby
Date: August 31, 2016 08:22AM
Maybe a used Honda Fit?

As part of your budgeting process, make sure you budget for maintenance in addition to gas, insurance, taxes etc.

I'd also suggest making a savings plan for the next car. A lot of people just assume they'll have to finance their next car purchase. Once the current car is paid off (which could be immediately) - or even before it's paid off - start saving for the next car. That way you hopefully can pay cash or at least make a huge down payment when the car dies. And it will at some point.
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Re: tell me about buying a car
Posted by: jdc
Date: August 31, 2016 08:40AM
Quote
smacks
Never. Ever. Buy. New.

With some looking around, 12k will get you into a great used vehicle.

Sheesh. Where you think used cars come from?

Sure, $12000 can get you a decent sued car, but probably not one this going to last another 10 years.

Just using carmax as a guide -- our local one has several Hyundai Elantras, -- but it looks like $12K will get you into a 2013 model with 40K miles on it. Good thing is that it still has 7 years of warranty left.



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Edited 999 time(s). Last edit at 12:08PM by jdc.



Edited 1 time(s). Last edit at 08/31/2016 08:41AM by jdc.
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Re: tell me about buying a car
Posted by: mrbigstuff
Date: August 31, 2016 08:49AM
A few year old car should certainly last about 10 years with regular maintenance. Of course, models with bad transmissions or such are bad buys. But buying used in this regard is also better, since you have some data to research related to reliability.
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Re: tell me about buying a car
Posted by: modelamac
Date: August 31, 2016 08:50AM
mattkime:

I agree with davester whole-heartedly with one or two exceptions:

If you buy new with perhaps $3k down and ZERO interest for 5 years, you can get a lot of vehicle for $300-$350/month.

You can also lease for 2 years with about $2k down for less than $200/month and get a lot of vehicle.

The rest of our advice is great. 2WD is fine unless you are in very hilly areas in winter. Even then, 4WD is rarely necessary.

Pay very close attention to the standard maintenance - tires, air cleaner, oil level & changes, coolant, lights, wipers. Brakes need attention when they pulse, or pull, make noise, or every 40k to 70k miles. The shorter mileage is for city driving or for those who keep left foot on brake pedal.

Maintenance costs tend to be a bit higher for foreign brands, but that can be off-set by less frequent trips to repair shops. If you are at all mechanically inclined, you need to try doing much of your own maintenance. It is a great learning experience if you are willing to spend the time.

Above all, two things have changed since you were a child on the road with your parents; There are cell phones now, and the number of drivers that do stupid/unthinking things has quadrupled. Water and ice are still slippery.

Quote
mattkime
the budget is to be decided. my wife threw out the number $12k but i have no idea how that will hold up.

I have cash in the bank to buy but thats also our downpayment for a home. lower home prices, higher car budget. it depends upon the numbers.

we have a lot of planning to do.



Mr. Curmudgeon, on Mav/EC/Sierra/blood thinner & some other "old people pills".
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Re: tell me about buying a car
Posted by: Acer
Date: August 31, 2016 09:11AM
Pay cash. Buy a Toyota minivan. I think the "sweet spot" is five years old, 75K, no more that $15,000 (and that may take some looking, but it can be done if you are patient and persistent.) You'll drive it for the next ten years or another 100,000 miles. That's $1500 a year to own a safe, reliable family-friendly vehicle. Go try to buy a new car and beat that figure, even figuring in extra repairs and 0% interest.
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Re: tell me about buying a car
Posted by: mattkime
Date: August 31, 2016 09:35AM
Quote
Acer
Pay cash. Buy a Toyota minivan.

I'm not sure i could buy a minivan. thats my mom's car!



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Re: tell me about buying a car
Posted by: Acer
Date: August 31, 2016 10:00AM
Quote
mattkime
Quote
Acer
Pay cash. Buy a Toyota minivan.

I'm not sure i could buy a minivan. thats my mom's car!

Dude, embrace it. It happens to us all.
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Re: tell me about buying a car
Posted by: davemchine
Date: August 31, 2016 10:50AM
Pick your car and then get the costco price. Take it to the dealer and ask if they can beat it. That's how I purchased my last two cars. Virtually eliminates haggling.

Sometimes buying a new car does make sense. Toyota's hold their value so well that buying a model a few years old will often only save a few thousand dollars. You can get zero percent financing on a new car. You really have to look at the brand's resale values to make the decision between new and old. My wife drives GMC vehicles and they tend to lose their value extremely quickly so in that case buying used makes more sense.

Once you choose which vehicle you want start looking around at autotrader.com to get an idea of price. I suspect you will need a much larger budget than the $12k you mentioned unless you are content with an older or extremely modest vehicle. I'll use the Toyota Camry as an example. It is a basic, but well respected, four door sedan and it sells in the low 20k range new.
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Re: tell me about buying a car
Posted by: Robert M
Date: August 31, 2016 11:10AM
Matt,

Maybe I'm missing something here. Didn't you recently start a thread about the possibility of moving to a new city? Have you made progress on this yet? I would think choosing your new home and getting that resolved ought take priority over buying a car, especially since you don't need a vehicle right now.

Purchasing a car is easy. Purchasing a home, dealing with the mortgage provider and such is far more difficult. Assuming you plan to purchase a home, making sure the money you need for the down payment as well as ensuring your credit doesn't have anything going on to red flag it is key. Financing a car can be a red flag.

Taking $$$ from the cash you've saved for the downpayment can impact the interest rate on the mortgage. Less $$$ for downpayment, possibly higher interest rate. Better to have a lower interest rate since it has a bigger impact on the overall cost of your home and your monthly expenses.

That said, the hardest part of buying a car is choosing the make, model and year. The purchase itself, easy. Assuming you're buying now and relocating at a later time puts you in a great position. You don't need a car. You can take your time and choose just the right year, make and model and ignore all the pressure tactics thrown at you by a salesman. Think in terms of, "Nope. Not happy with this deal or you as a salesperson. I'll find another car" and simply walk away from any salesperson, dealership and such until you find just the right deal.

That said, now that Baby M is nearly a year old, I can tell you that I find it easier to transport her and her associated "stuff" in my Mazda CX-7 SUV than in my wife's Toyota Yaris sedan. The infant car seat is dandy in either car. That hasn't been an issue at all. The size of a convertible car seat, once we choose one, could be problematic. Since they are larger than infant car seats, some of the larger models or better models may not fit quite as well in the Yaris.

I can also say it's easier to put Baby M into and take her out of the car seat from the Mazda than the Yaris. The Mazda has larger doors. Definitely makes a difference since we're constantly transporting her from place to place, i.e. daycare, pediatrician, Grandma/Grandpa's house, stores, etc.

It's easier to throw her stroller in the back of the Mazda than it is in the trunk of the Yaris. The Mazda has a tailgate/liftgate instead of a trunk. Less lifting. Better on my back - lol! The Mazda, being a larger vehicle than the Yaris, has more space her other stuff, diaper bag, portable booster chair for feeding her on the go, etc. I can throw all that into the tailgate and still have space on the seats available for passengers.

That and all-wheel drive makes a difference for us during the winter. The Mazda has AWD and it is our primary vehicle in the winter. you're a neighbor practically. You know how the roads are in the five boroughs. It's pretty much the same on Long Island. Sure, it can still slip on ice. AWD ain't going to help in that regard. Definitely helpful in snow and rain, though.

If I was looking at a vehicle and didn't want an SUV or minivan, I'd go for a wagon or hatchback. In my experience, they offer better space than the typical sedan. Gas mileage is 100% dependent on the vehicle. Choose a car that doesn't require or prefer premium fuel if possible. It'll have huge impact on fuel costs.

Safety features are a given. Air bags definitely. ABS. the usual stuff. I'd also want a backup camera or, preferably, a backup camera _and_ a proximity alarm. I find a backup cam more useful. Other people prefer the proximity alarm. There are aftermarket options for both.

Reliability is important. That's been covered already.

Insurance costs on a vehicle are funny. The liability portion of the cost doesn't change from vehicle to vehicle. Collision and comprehensive can change from vehicle to vehicle. Other components, too. Same goes if you get a combo policy that includes homeowners, auto and personal liability. Even the insurance provider has an impact on the costs.

FWIW, although I prefer an SUV or wagon, I have to give credit where credit is due and say at some point, I'll own a minivan. The Odyssey is very nice. Same goes for the Sienna. But, to give credit where credit is due, I drove a Town and Country for a week and it was surprisingly good. Not quite as nice as the Honda or Toyota but definitely better than I anticipated.

Robert



Edited 1 time(s). Last edit at 08/31/2016 11:22AM by Robert M.
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Re: tell me about buying a car
Posted by: mattkime
Date: August 31, 2016 11:48AM
>>I would think choosing your new home and getting that resolved ought take priority over buying a car, especially since you don't need a vehicle right now.

We're not buying a car yet, but it seems like an inevitability worthy of casual conversation.

Its more difficult to have casual conversation about the intricacies of moving to a new place.



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Re: tell me about buying a car
Posted by: 3d
Date: August 31, 2016 04:13PM
Don't forget the trailer hitch receiver on the back for a bike rack. Maybe bring it up during price negotiating.
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Re: tell me about buying a car
Posted by: Filliam H. Muffman
Date: August 31, 2016 04:39PM
Quote
mattkime
Quote
Acer
Pay cash. Buy a Toyota minivan.

I'm not sure i could buy a minivan. thats my mom's car!

Yeah, tell me your mom drives one like this: [youtu.be] gears smiley



In tha 360. MRF User Map
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Re: tell me about buying a car
Posted by: vision63
Date: August 31, 2016 06:41PM
It ain't that complicated if you have decent credit. It's way harder if you have none (but it can be done). The lower the interest rate, the lower the payments. That being said, go see my man. PM me for his number:

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Re: tell me about buying a car
Posted by: Bill in NC
Date: August 31, 2016 07:49PM
on leases, you never want to pay a capitalized cost reduction (CCR) upfront - due at signing (DAS) should be as little as possible, at the expense of higher monthly payments.

since if your vehicle gets totaled 4 months into the lease you're out that CCR.

Quote
modelamac
You can also lease for 2 years with about $2k down for less than $200/month and get a lot of vehicle.
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Re: tell me about buying a car
Posted by: mattkime
Date: August 31, 2016 07:56PM
Quote
Bill in NC
on leases, you never want to pay a capitalized cost reduction (CCR) upfront - due at signing (DAS) should be as little as possible, at the expense of higher monthly payments.

since if your vehicle gets totaled 4 months into the lease you're out that CCR.

Quote
modelamac
You can also lease for 2 years with about $2k down for less than $200/month and get a lot of vehicle.

It would take a very interesting situation to get me interested in a lease.



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Re: tell me about buying a car
Posted by: smacks
Date: September 01, 2016 07:08AM
Quote
jdc
Sheesh. Where you think used cars come from?

Sure, $12000 can get you a decent sued car, but probably not one this going to last another 10 years.

Just using carmax as a guide -- our local one has several Hyundai Elantras, -- but it looks like $12K will get you into a 2013 model with 40K miles on it. Good thing is that it still has 7 years of warranty left.

Where do YOU think they come from? He said he had $12, 000 cash. Unless you want a Spark, Fiesta, Smart or the like, that won't buy a new car. And the thing about a $12,000 car not lasting 10 years... FUD. Buy something that's been well maintained and follow suit. Going on 9 years on my last $10,000 used car.



Edited 1 time(s). Last edit at 09/01/2016 07:09AM by smacks.
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Re: tell me about buying a car
Posted by: tenders
Date: September 01, 2016 08:21AM
One other thing to keep in mind is that if you finance a car, the lender will REQUIRE you to maintain collision insurance on it, which is expensive. Collision insurance is, legally, optional, and pays for damage done to your vehicle when you are at fault. Banks don't want you to walk away from your loan if you total the car, so they require financed vehicles to carry it. This is opposed to liability insurance, which pays for damage done to anything else when you are at fault, and is required by law.

With newer cars that are worth more, you may want to have the collision insurance anyway. But it is expensive and as the car gets older, there may come a point at which you decide you don't want the collision insurance any more. If you can't pay off the remainder of the loan, the cost of that collision insurance can make the effective cost of that loan really high.

My strategy has been to purchase cars that are 2-3 years old, have very low mileage, and to buy them from dealers along with the manufacturer extended warranties that only dealers can provide. (This in particular with Toyota minivans with doodads like power doors, power seats, and heated seats that are expensive to fix.) I will happily finance most anything for 3-5 years that people will lend me money for at 0-3%, and tend to sell vehicles around the 100-110K mileage point.

But I tend to drop the collision coverage when the car is about 6 years old.
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