New Taurus SHO. 
Help me decide on a new car
- Thread starter GSRCRXsi
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is yours AWD? i dunno about owning a ford lol. im still gonna go for the WRX
The new WRX hasn't been out for very long... and the interest rates for a new car are lower than for a used car. Pricing out loans for new vs used, at the price point I was looking at for a used truck at around $18k, I would be able to afford a $26k truck new with the same monthly payments and the same NUMBER of payments. HUGE difference.
At this point, buying a new WRX would probably be better than buying one that was just a year old.
At this point, buying a new WRX would probably be better than buying one that was just a year old.
Ding ding ding. You have to work these calculations. You also have to shop loans. My friend picked up an '06 BMW 325i that was practically brand new and received .9% interest on his 3 year financing deal. For 3 years, my A4 had 3.6% interest and would have been 2.8% had I sprung for a 2 year loan.
Generally, buying a 2-3 model year old car is the most cost effective.
Warranties are non-issues because most every used car is now sold CPO with an extended warranty.
My '06 A4 that I bought CPO'd, just ended the full factory warranty coverage period and is on the powertrain 100k warranty coverage period.
Yup, exactly. Do I buy a 2007 Frontier because it's 2 years old and theoretically cheaper? Or do I get a new fresh 2009 model with next to nothing on interest and a ton of cash on the hood from factory incentives? The new model costs the same as the 2 year old one with 50k miles on it...
Again, depending on the make and model, this may be the best time to buy a new vehicle vs a used vehicle. The factory incentives may offset the money saved from buying a depreciated car (used). The re-sale value may also make the new car a more attractive proposition, especially if the car just went through a new generation and the used car will have an antiquated style when you attempt to sell it 5 years from now. Therefore bringing in an even lesser amount.
A car is by no means an "investment", but can be treated as an investment by trying to obtain the lowest cost, highest value vehicle.
Most of the time, a 2 year old car has taken most of the hit on depreciation. You can pick up very low mileage cars that are 1-2years old and assuming you have a good credit score, you can be thrifty and shop financing options. This is generally the most cost effective.
Ian needs to decide what his goals are with this car, if he's going to play the number crunching game and view this as an investment.
I buy CPO'd because I burn through cars. I put 30,000miles + on my car a year. I allow the first person to take the hit on depreciation, pick up a car with 20,000miles on the clock and run it into the ground over the next 3-4years. Rinse and repeat.
This is most cost effective for myself. Now, if I did not drive so many miles, I'd negotiate a lease. I'd lease because I generally like to get a new car every 2-3years. If you like flipping cars that quickly, you can usually get in and out of a lease with least of a cost and none of the time required to sell the used vehicle.
My girlfriend does not drive many miles and plans to keep her car for 5-7years. She'll do better off by buying a practically new CPO'd vehicle that is the current generation or by buying a new car with heavy factory incentives.
If nothing else, I hope this provides you with some insight into various scenarios. Just like anything else in life, the purchase is really dependent on YOUR needs.
So pick the scenario that best fits you, but I'd warn you to be honest with yourself and not to commit too much money to the car. You'll certainly regret the purchase down the road if you have to pass up the house/vacation/electronic device/wedding/whatever of your dreams because you're tied to a car payment.
NWDRVRBWE
Hands Off my Balls
i got my numbers from dave ramsey,
and no one messes with dave ramsey. LOL
i totally agree that the new ones are nice. i suppose if i could buy new i might, but i am allways poor so i just buy used and save big.
Keep an open mind to get the best deal.
i dunno it just all seems so weird to me. i got "pre-approved" for the loan i guess. and to finalize it i have to get the purchase order for the car, and insurance info to the bank, then take the check back to the dealer. it all just seems so unorganized. is this a normal process when buying a car?
the bank tells me that the dealer will most likely let me take the car without full payment from the bank, and that they will take down all my info and line me up with their financing if something falls through with my bank to kind of cover their ass.
the bank tells me that the dealer will most likely let me take the car without full payment from the bank, and that they will take down all my info and line me up with their financing if something falls through with my bank to kind of cover their ass.
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