Comments on: Planning for a New(er) Car

By: Aaron Stroud

Aaron Stroud — Mon, 24 Dec 2007 19:33:56 +0000

A few points,

1. “The way that the economy is presently” The current debt problems are not so much related to the economy as they are tied to irresponsible decisions people are making with their futures.

2. Buying new does cost more, but sometimes it’s the only choice if you want a specific vehicle/feature combination. Also, a new car owner can do a lot of harm to a vehicle during the first year. Simply skipping on oil changes might negate the cost savings down the line.

3. No one has to haggle anymore—at least, not in person. We bought our new 4Runner over the internet. I emailed around 15 dealerships with my request. Only a handful responded because the Northwest only had 3 or 4 runners with the third row seating option!

We ended up paying $950 over invoice (again, we’d have paid much less if the vehicle wasn’t so rare). Although we avoided haggling, we still had to listen to the sales spiel by the financing lady before she would take our check!

By: Miss Mota Mouth

Miss Mota Mouth — Sat, 22 Dec 2007 22:27:51 +0000

Randall- I kind of had you pegged as that kind of guy that would prefer to buy slightly used! because it does make so much more sense. It is funny but I had almost the exact same experience with the last car that I traded in at a dealer coasted in) and I used the trick of not telling them I was paying cash. They are less likely to give you a discount for cash because they will make so much more money if they are able to finance. My other car was a slightly used eBay purchase from an individual and I got a lot of car of thr money that is going t last me a long time. I really appreciate your writings! Keep up the great work!

By: Randall

Randall — Sat, 22 Dec 2007 20:18:25 +0000

@Miss Mota Mouth
I didn’t go into it on this post, but I definitely don’t believe in purchasing new. Both of my cars were trade-ins that someone had brought back less than a year after purchase new. So I got the price break from buying new, and a little bit of shakedown by someone else. It still SMELLED and RAN like new, but cost me about $5k/vehicle less than new.

I did go with dealers, but only because there was a larger variety to choose from, and I was a little desperate for a vehicle (transmission going out on last car, used it for a $500 trade-in and LITERALLY coasted it onto the lot.

I don’t see cars as status symbols or fun toys anymore (past that age) so getting a good deal is more important to me. I’ll let those with MUCH more wealth ‘break-in’ my car before I buy. There’ll always be those ‘trade-in-each-year’ folks.

By: Miss Mota Mouth

Miss Mota Mouth — Sat, 22 Dec 2007 19:59:47 +0000

Not wanting to bag on dealers because they are just trying to make a living in circumstances where their industry has taught them all of the tricks of the trade BUT buying slightly used these days and from a private party (For Sale By Owner) means that you can get much more bang for your buck! Cars are much better made, as this article states, and will go a lot further for less maintenance. The way that the economy is presently, there is always someone selling their own car to get out from underneath heavy payments to dealers and so there are cars available at every price point! Unless someone is vastly wealthy, the idea that we can all just trade up on a whim is just false and putting a lot of hard working people in uncomfortable debt positions. I write about this a TON because people ask a lot so I feel pretty passionate about it.

By: Randall

Randall — Sat, 22 Dec 2007 15:54:01 +0000

@MDP,

True, some states don’t require insurance. They usually DO require no-fault insurance, which is considerably less. I just mentioned the insurance because I remember buying my first car (a Firebird, couldn’t qualify for the Camaro). and finding that the monthly insurance premiums were $22 MORE than my monthly car payments.

Shocking to an E-2 in the Army!! I didn’t do much other than pay for that car, and its’ insurance, for the next two years.