looking for a new car

[benbo]

They are all paid for. I was thinking about a new truck and even test drove a couple. However, when it came time to figure out the financing, I found the idea of having no car payment was far more appealing than having a shiny new truck.

I don't know what I'll do when I have to replace one of mine. They really require remarkably little maintenance at this point.

New cars were so expensive, but with the auto company problems I guess they're coming down a bit.

A late model, low mileage used car is probably the best deal. But at some point you get diminishing returns for a cheaper car, in my opinion.

 

[Dexman1349]

The one vehicle I was pleasantly surprised with is the Jeep Commander. Its built on the same platform as the Grand Cherokee, but has more interior space. Ours has the available 3rd row seating & all-wheel drive (a must in Colorado if you don't have front wheel or available 4-wheel drive), but we only have the base 3.7L V6. The V6 engine has a ton of aftermarket parts available to boost HP and MPG (factory still puts out about 20 with how we drive). We bought ours used about 3 months ago (2008 with 20k miles) for $17,500. Even with an aftermarket warranty our payments are still under $400.

Plenty of power, space, & comfort as an all-around driver with the kiddos. It has enough space to haul a roll-top desk inside and still being able to close the hatch (we did it 2 weeks ago).

 

[MonteBiker]

My two cents...

Save the money on car maintenance by buying a bike. We have a small car (98 with 100k on it - and it runs like a champ) and a small truck ('03 with 35k on it and it rides like a chump... what can i say. Its a ford.) The truck is the only vehicle I have ever bought new and I don't think I would do it again.

The car is our primary vehicle and I drive the truck once or twice a week. All other trips are done by bike. I would imagine that we will have the car for another 75-100k.

I was actually reading one of the Ramsey books last night and came across one of the little things that bothers me about him. He tries to argue against buying new cars as they can lose $18,000 of value in the first few years. My new vehicle didn't cost $18k. Stay out of debt by buying what you need... not necessarily what you want. A car is a tool, not a lifestyle.

 

[MA_PE]

A car is a tool, not a lifestyle.

Is there an echo in here?

tool?

 

[Dexman1349]

My two cents...
Save the money on car maintenance by buying a bike. We have a small car (98 with 100k on it - and it runs like a champ) and a small truck ('03 with 35k on it and it rides like a chump... what can i say. Its a ford.) The truck is the only vehicle I have ever bought new and I don't think I would do it again.

The car is our primary vehicle and I drive the truck once or twice a week. All other trips are done by bike. I would imagine that we will have the car for another 75-100k.

I was actually reading one of the Ramsey books last night and came across one of the little things that bothers me about him. He tries to argue against buying new cars as they can lose $18,000 of value in the first few years. My new vehicle didn't cost $18k. Stay out of debt by buying what you need... not necessarily what you want. A car is a tool, not a lifestyle.

Only issue with this is that she indicated she needs something capable of hauling cargo/kid(s). I really want a motorcycle to do my daily commuting with, but because I have to drop 2 kids (both under 4) off at daycare, it's a little difficult. I would suspect a bicycle would face similar problems (plus the additional strain of peddling for the extra weight).

 

[EM_PS]

okay, before everyone thinks im a complete financial idiot

^

:withstupid:

:joke:

 

[SkyWarp]

not to beat a dead horse but Dave Ramsey says that the value of your vehicles should never be more than 50% of your annual income. So if you make $100k, the blue book value of your vehicles (include boats, 4 wheelers, motorcycles, airplanes, etc) should not be more than $50k. Also, I don't know if anyone has read The Millionaire Next Door but one thing I learned in reading that book is that most rich people (defined by a net worth of > $1 million) drive used cars. Dave Ramsey also says you shouldn't buy a new car unless you have a net worth of > $1 million.

What's the reasoning for the 50% level?
I've been thinking about getting a new car, but it's been new car vs used car at the same price.

 

[rudy]

If you're not tied to the SUV idea, consider a higher end mini-van. It really is the ideal car for a family and the nicer ones like Honda Odyessy get better mileage than a similar SUV and can carry cargo you wouldn't believe. And it's a comfy ride. And ours has carried around 8 people quite a few times in the short year and half we've owned it.

If you're planning on the vehicle being the travel vehicle and lasting thru 3 children, a van is the way to go. When the kids are babies, you'll need to haul around all of their stuff... stroller, portable crib, walker, bouncy chair, toys, etc... And that's just for one baby.

When we had our first-born, my husband got a van. I thought this was a bad idea for just the three of us. But it was the best idea ever. We got a Chrysler Town and Country, with the removable middle and back seats. This allowed us extra room for the kids' stuff, especially when travelling. We could pull the seats out or pull the backs all the way down, leaving the seats open and flat, for more room. As our kids got older, fitting 7 in the van was very helpful, especially when their friends joined us on family outtings. Our kids are bigger now, so we moved away from a van and got an SUV.

Our Chrysler's transmission broke down on it's 5-year anniversary. I later found out that this is common in Chryslers. I"d recommend an Honda Odyssey for reliability. They are roomy too.

 

[Capt Worley PE]

I've been thinking about getting a new car, but it's been new car vs used car at the same price.

I was in the same boat about a year ago. New Yaris hatchback vs. a year old Malibu Maxx. Same price.

Bought the Maxx. It was a hell of a lot more car for the money.

 

[wilheldp_PE]

Bought the Maxx. It was a hell of a lot more car for the money.

You could say it was Maxximum car for the money.

 

[Chucktown PE]

What's the reasoning for the 50% level?
I've been thinking about getting a new car, but it's been new car vs used car at the same price.

The reasoning for the 50% is that he says you shouldn't have so much of your income tied up in a depreciating asset (and 99% of cars are depreciating assets). Also, with most new cars, they lose about 20% of their value in the first year. So on a $30,000 car, it loses $6,000 in value. If you assume you are going to own the car for 10 years, the question you have to ask yourself is "If I buy this car am I going to make an additional $6,000 in repairs over the life of the car because I bought it one year old?". That's why I don't buy new cars.

FWIW, I'm not a Ramsey Kool-Aid drinker but I do follow most of his advice.

 

[Capt Worley PE]

American sedans are a bargain on the used lots. You can buy a lot of car for <20K.

 

[CivE Bricky]

Bought the Maxx.

I got a 2004 Maxx (new) too. 150K on it now. It goes thru brakes like nobody's bizness, but my original crush hasn't gone sour.

 

[MechGuy]

If you're planning on the vehicle being the travel vehicle and lasting thru 3 children, a van is the way to go. When the kids are babies, you'll need to haul around all of their stuff... stroller, portable crib, walker, bouncy chair, toys, etc... And that's just for one baby.
When we had our first-born, my husband got a van. I thought this was a bad idea for just the three of us. But it was the best idea ever. We got a Chrysler Town and Country, with the removable middle and back seats. This allowed us extra room for the kids' stuff, especially when travelling. We could pull the seats out or pull the backs all the way down, leaving the seats open and flat, for more room. As our kids got older, fitting 7 in the van was very helpful, especially when their friends joined us on family outtings. Our kids are bigger now, so we moved away from a van and got an SUV.

Our Chrysler's transmission broke down on it's 5-year anniversary. I later found out that this is common in Chryslers. I"d recommend an Honda Odyssey for reliability. They are roomy too.

I agree with thinking about a minivan. I was totally against them until we had our 2nd (and now 3rd) child and my wife convinced me to buy one. We own a Nissan Quest and we love it. Its comfortable to drive, and is way easier to travel with the kids than the SUV (Ford Explorer). It has the same engine as the Maxima, so it has some get up and go too.

Oh, and I'm in San Antonio and see lots of Muranos on the lots here. I don't know why you can't find one?

 

[Katiebug]

So you are selling a car that you still have a payment on? And you are looking at buying a $35k car? In my book that is a very very bad idea.

Word. Especially when unemployed. We waited until my husband was working again to seriously consider trading in MY car. Even though my job seems relatively stable, we didn't want to risk becoming overextended (and we were able to live very comfortably on my income alone and bank his unemployment checks). And a $35K car is just insane if you haven't paid off your trade in.

We're considering a small to midsize crossover, preferably MSRP under $25K (our trade in will be about $5K and we don't want to finance much more than $20K). I figure just about any vehicle in the class can get three car seats across the back seat if they're the right car seats, and heaven help me if I have more than three kids! We found that by distilling down to our requirements (crossover, seats 5, AWD, gets good gas mileage) and price range, it helped to focus our search. On our short list: Chevy Equinox (the 2010 model year), Ford Escape, Honda CR-V, Toyota Rav4, and Subaru Forester (I was originally ruling out an American car but we're very impressed by the new Equinox).

 

[squishles10]

i refuse to drive a minivan since we dont have kids yet.

i think the 50% is reasonable. even if you count his car's new value, we're still under 50%.

there has been a lot of discussion right now about whether to buy new or used. new cars are coming with huge discounts that pretty much remove the first year of depreciation compared to a one year old identical car, with better financing, and an extra year of warranty. this obviously depends on the specific car youre looking at, but dont blanket statement used cars are better before you crunch the numbers.

 

[Kephart P.E.]

i refuse to drive a minivan since we dont have kids yet.
i think the 50% is reasonable. even if you count his car's new value, we're still under 50%.

there has been a lot of discussion right now about whether to buy new or used. new cars are coming with huge discounts that pretty much remove the first year of depreciation compared to a one year old identical car, with better financing, and an extra year of warranty. this obviously depends on the specific car youre looking at, but dont blanket statement used cars are better before you crunch the numbers.

The used car market is very hot right now, the dealer that sold my girlfriend her Mazda 3 in 2006 called her up to see if she was interested in selling it. So it may make more sense with the $4500 government money to buy new.

 

[Dexman1349]

The used car market is very hot right now, the dealer that sold my girlfriend her Mazda 3 in 2006 called her up to see if she was interested in selling it. So it may make more sense with the $4500 government money to buy new.

We had the same thing happen when we bought our 2005 Jetta new back in 2006 as well.

Don't get too excited about that offer. Alot of dealerships simply do that to get people in the door and "upgrade" into a new car. It's only a sales ploy.

 

[Capt Worley PE]

You mean they really don't need my old jalopy as much as they say?

I'm still getting letters for a car I got rid of close to a year ago.

 

[Kephart P.E.]

We had the same thing happen when we bought our 2005 Jetta new back in 2006 as well.
Don't get too excited about that offer. Alot of dealerships simply do that to get people in the door and "upgrade" into a new car. It's only a sales ploy.

She was not interested because she loves that damn car even if she has way too many speeding tickets in it.