nootrac22

To get right to the point, I'm concedering getting a new car. I want to keep monthly payments as low as possible. I have a project car to work on, and to be honest am getting tired of working on daily driver. So I am concedering getting a brand new car (right now yaris or fit). Just wondering if it pays to go brand new, keeping in mind i will be financing all of it, or get a car a couple years older (cheaper) with the possibility of taking on someone elses headache.

Bob Vila

Concede = To give up
Consider = Thinking about it

Brand new = loss of value immediately
Used Car w/warranty = FTW.

nootrac22

sorry bout the spelling I suck at it and can't get the spellchecker at work (firewall). I thought that the loan rates were better buying used. Are they better enough to make up the diffrence?

Bob Vila

you should just pay cash. And your loan rates are completely dependant on a few things: 1)offers/incentives from the manufacturer and 2)your credit history

nootrac22

single dad = no cash, i have to finance unless I pick up a beater for $1500, and that's the situation I'm trying to get out of.

pissedoffsol

generally, new cars will have a better interest rate.

nootrac22

is the diffrence enough to make up the instant depreciation in buying new?


BTW 72mo finance

pissedoffsol

nothing makes that up.

you can probably score 0-4% on a new car, where as you'll be tough luck to get under 8% on used.

TeinGirl

If you buy new I suggest that you:
A)do research & check out incentatives/rebates that they offer for that vehicle.

B)Buy towards the end of the month (dealers are just trying to push units then & arent so worried about the gross that they are making)

C)Dont buy an extended warranty within the deal (you dont want to finance your warranty as well, so use part of the $1500 that you have to pay for it up front if you decided to get one)

D)Be pretty firm with the payment that you are wanting to be in as long as its realistic.

E)Make sure that once they present to you a 4square (all the numbers&options) you configure it all back up and all the numbers equal out.


Hmmm... thats all that I can think of off the top of my head...
Just be aware of what you are buying

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klyph

Slightly Used FTW. Your interest will be higher but your monthly payments will be lower because you paid less. And you will lose less money due to depreciation. Get something 2-3 yrs old with less than 60K on it.

reckedracing

compare interest rates
dealerships "sell" loans, they usually try to shoot for a couple points over what you should be gettting
shop around with banks and credit unions

klyph

Yeah, ask which banks give higher rates and which banks give lower rates, then get a quote from each bank starting with the higher ones, working down to the lower ones. Everytime you ask for a rate, show them the one you just got and ask if they can beat it. By the time your done, you'll know for sure you got the lowest rate possible.

Jeef

SOmetimes you can get new car rates on used cars if its like a year or two old. Like recked said shop around for your loan. On the 4 new car loans I have had in the last 4 years (yeah I trade my trucks in too much, 1 was totalled) I got the loan through the dealer twice. One was from AAA and the other a local credit union. If you know someone in finance or sales at a dealership they will know or can find out who has the best rates available.

E_SolSi

fuck buying new

Jeef

I have never really lost that much by buying new. Maybe I have been lucky. I actually made over 4 grand when my 04 Silverado got totaled. It had 16k on it and I got a check for 4k more than I paid for it. Infact m,y 06 is worth 1200 (private value) more than I paid for it a year and 12k miles on it later.

klyph

Yeah, I'd say you're part of a very small minority. Like Samoan Norwegians or somethin.

Jeef

Getting the employee discount helps with this, but not much. Whats helping me now is the fact that the new Silverados are ugly as fuck so mine being the last body style its still has some demand.

nootrac22

thanks to everyone for the great info. It gave me a lot of things to concider. Back to the drawing board to come up with a better plan. Top priorities for the car are cheap, reliable, mpg and within a reasonable driving distance

2000Si

But when it comes down to it, you'll finance 3-5k (or more) at 4% than you would at that 8% on a used car, so it may work out the same on the payments over the life of the loan.

New with a full manufacturers warranty > used with a used car lot 1 year warranty on someone elses old problems.

phyregod

Screw financing. Pay Cash.

nootrac22

can't pay cash. after going over my budget I'm gonna try to make this car last another year or so. I have a refinance coming up on the house in july. I'm trying to get rid of debt untill then. If I hit the bills hard I might make tier 1 credit by then. Hopefully I'll reduce my mortgage by $100-$150 a month then I'll have some money to play with. Still I think I'm gonna go take some cars for test drives for shits and giggles.

totalburnout

You made money because of your low mileage. I would guess that you beat the national average of 12,000-15,000 miles annually.

Jeef

That truck was only 9 months old when I got hit. SO it was a little over average. I would hate to see how much the mileage on my 06 e150 work van affected the value. Its an 06 with 100k on it.

pissedoffsol

rofl

Airjockie

I don't know.....

I know once you drive off the lot with a new car...it's value drops $5K's...

but all the new cars I see compared to the price they are selling the older cars...I'm not really seeing a difference in price...

but I'm looking at 05 subaru outbacks and toyota tacoma's....

the 05's are still hitting in the $20-23K's range with 12,000-30,000 miles...and the new 07's and 08's with zero miles are only in the $23-26K's area....

A guy at work just snagged an 08 Tacoma for $25K's....with TRD and all the damn options...but he had a decent trade in that was worth only $3000....

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