Car Advice

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
dcw213
Posts: 261
Joined: Sun Dec 16, 2012 2:04 pm

Car Advice

Post by dcw213 »

Hello all -

After over a decade of living car free and loving every minute of it, my wife and I have finally found ourselves in the position where we will likely have to acquire one for commuting purposes. A bit of background:

We just moved to a new city in a completely new area of the country last month. While I am able to rely on public transportation for my job, hers will likely require a substantial drive and in facing this prospect, we feel very under prepared. For over 10 years, neither of us has owned or had regular access to a car. We have been members of ZipCar and occasionally would rent from Avis, etc for out of town trips, and that more than met our needs having lived in a city with great public transportation and everything we would need accessible. We were hoping to ride that out for a while longer but it is almost certainly looking like that will not be the case.

We are trying to read all we can about buy new vs. buy used vs. lease and are still struggling. We are both pretty frugal and are essentially looking for the best bang for the buck while not sacrificing safety. I am leaning towards buying used since we will be in a residential neighborhood of a city and will likely be relying on street parking (would not want to get a new car dinged up right away which does happen often in our neighborhood apparently), and because I have heard opinions expressed here and elsewhere that used is the way to go. I must admit, given that our situation is so new and not yet settled, a short term lease has also been something that I have considered as well (the idea being we would not be buying a long term asset and would have maintenance, etc taken care of), but I am mindful that this might not be the best from a financial perspective.

More than anything I am interested in hearing people's thoughts/opinions/experiences if you are inclined to share. My thoughts on money and general outlook on life seem to align with many on here, so I wanted to pose this question to those with some experience in this space. Any and all advice would be appreciated.

Many thanks.
User avatar
Tycoon
Posts: 1630
Joined: Wed Mar 28, 2012 7:06 pm

Re: Car Advice

Post by Tycoon »

Cars are money sucking vortexes. Depreciation, recurring costs, liability, reliability, wear and tear, etc.

Buy a reliable used car at the best price you can get away with and pay cash for it. Keep it forever or until you can't stand to drive it any longer.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
Topic Author
dcw213
Posts: 261
Joined: Sun Dec 16, 2012 2:04 pm

Re: Car Advice

Post by dcw213 »

I am inclined to agree. Any suggestions on the best way to buy used? Dealership? For sale by owner? Definitely overwhelmed by all the options and really unsure of how to cover myself.
User avatar
Tycoon
Posts: 1630
Joined: Wed Mar 28, 2012 7:06 pm

Re: Car Advice

Post by Tycoon »

First, if I were buying used I would try to buy from someone I knew took good care of the car over the years. This only works when you have friends or neighbors who share their love affair, or dissatisfaction, with their cars. Second, I might buy a certified pre-owned from a dealership as oftentimes these cars come with a better warranty than the same car new. Buying used is often a gamble.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
MathWizard
Posts: 6561
Joined: Tue Jul 26, 2011 1:35 pm

Re: Car Advice

Post by MathWizard »

Used cars a relatively expensive right now
because of the 2008/9 meltdown
2008/9 domestic vehicle production
average half what it normally has been.

The used/new comparison is less in favor
of used right now, so you may need to
look a little more for a good deal.
kbb.com can give estimated prices
as well as edmunds so you have an idea of
pricing.

I had to replace a car recently, and for
the first time had to pay over book value
because of artificially low supply.
User avatar
Watty
Posts: 28860
Joined: Wed Oct 10, 2007 3:55 pm

Re: Car Advice

Post by Watty »

Leasing a car is almost always a bad choice. This would be especially be true for you since it sounds like the car can be expected to get a more than normal dings and you would have to pay for everyone of those when you turned the car in at the end of the lease.

Buying new or used really depends on the type of car you are looking for and if you can do much of the car maintenance yourself. It also depends on how many miles a year you will be driving it.

The used car market has been pretty tight for the last ten years or so and there are a lot of Bogelheads, myself included, that have bought new cars instead of used when they were looking for late model desirable cars like Hondas or Toyotas. The problem was that the prices the used cars like that were selling for were so high that they were not a good deal.

I normally buy my cars new and keep them about ten years so the yearly cost is pretty reasonable since they require little non-routine maintenance and still sell for a lot when they are that old.

If you can work on the car yourself and do most of the repairs then that is a different situation too.

It also depends on your budget since for people with a large budget it is just a matter of figuring out what the optimal choice is. For people on tighter budgets(I've been there) then buying new might be too much of stretch even if the numbers add up over the long term. If you are on a tight budget then one car I would look for would be an older Hyundai that is a model and year that has a good reliability rating, these vary a lot with Hyundai. Since they are not as popular so they should sell for less but they have a long warranty so they are likely decently maintained. Some Ford also have good reliability ratings.

One thing to watch out for is that ESC, electronic stability control, became pretty standard in about 2012 and that is a nice safety feature to have. If you are comparing a 2010 car with out it to a newer model with it then you are not comparing equivalent cars so you would need to take that into account when looking at the prices.
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Car Advice

Post by placeholder »

Given the low rate car loans available these days I wouldn't pay cash.
Jack FFR1846
Posts: 18502
Joined: Tue Dec 31, 2013 6:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Car Advice

Post by Jack FFR1846 »

Consider one of the micro cars available. I see them more and more and to me, the only appropriate place for them is in the city. As mentioned, if you lease, if it's not perfect when you turn it in, you'll be charged whatever it costs to make it perfect.

Good points were made about the high cost of used cars right now. I am buying a new Jeep Wrangler and strongly considered used until I saw the prices. I would have to go to a several year old vehicle with 50k miles to match what I am paying for a vehicle that I ordered exactly as I want it.

Be careful with dealers of "bargain" brands. Locally, I visited a Hyundai dealer just to see what they are all about. Every single car had something I had not seen since the 90's. Additional dealer markup (called market adjustment this time) where they do $7 worth of so called add ons and charge you thousands. I though a Sonata was the bargain comparison if you didn't want to buy an accord. From the stickers, they were looking for $5k more than a comparable Accord. Know your prices going in. Edmunds can help. You want to know what you want and how much it costs.

Dealer profit these days is called "documentation fee". This is why dealers will sell a car at invoice. When it comes time to write a check, you're paying $200, $300, $500 in essentially nothing. Some dealers will give you something for that money....inspection sticker, maybe 3 free oil changes, but for the most part, it's bogus and is dealer profit. Can you negotiate a car to below the dealer's cost and then let them add on their doc fee to make it up? Sure.
Bogle: Smart Beta is stupid
tibbitts
Posts: 23728
Joined: Tue Feb 27, 2007 5:50 pm

Re: Car Advice

Post by tibbitts »

Car buying advice is among the less useful advice you'll get on this or any forum. Possibly someone working in management at a dealership has enough experience to say something that will frequently apply, but even then only to the products he sells and in the location he sells at. Ordinary people just don't buy a sufficient number of vehicles, in a short enough period of time, and in sufficiently diverse locations, to give any statistically significant advice. A technique that worked well for someone buying brand X and model Y at one location probably won't apply to someone buying a different model elsewhere at a different time.
sport
Posts: 12094
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Car Advice

Post by sport »

IMO, the best values in cars are Toyotas and Hondas. However, a lot of people agree with this sentiment and this causes the prices of good used ones to be almost as much as a new car. My recommendation would be to get a Camry or an Accord if your budget permits. Otherwise, a Corolla or Civic would be good lower cost alternatives. Keep in mind that for any of these, there is a wide range of costs depending on how the cars are equipped. For these brands, even the least expensive versions will provide excellent transportation.
Jeff
User avatar
Munir
Posts: 3200
Joined: Mon Feb 26, 2007 3:39 pm
Location: Oregon

Re: Car Advice

Post by Munir »

Check the April issue of Consumer Reports which is dedicated to cars- or their web site consumerreports.org. It dicusses the issues you raise.
sambb
Posts: 3257
Joined: Sun Mar 10, 2013 3:31 pm

Re: Car Advice

Post by sambb »

Just buy an accord or camry. That's all you need to know. Any features any options. You will be fine and can sell at any time
User avatar
William Million
Posts: 1132
Joined: Wed May 05, 2010 4:41 am
Location: A Deep Mountain

Re: Car Advice

Post by William Million »

In recent years, prices for late model used cars have crept up, especially for heavily demand Hondas and Toyotas. In many cases, you'll do better buying new if you can cut a good deal, perhaps with late-summer rebates late in the model year. Or you can buy a very old car - 7 more more years old - and take a gamble on repair costs while foregoing the latest safety upgrades, such as ESC. I recently looked at Nissan Sentras and was shocked that a new one often costs the same as a 2-3 year old model.
LeeMKE
Posts: 2233
Joined: Mon Oct 14, 2013 9:40 pm

Re: Car Advice

Post by LeeMKE »

I agree that used cars right now are getting premiums that make buying new quite attractive. We are getting ready to replace a 10 year old Jeep, and we'll be buying new because the difference between new and used is negligible today. Won't be the same much longer IMHO.

I also agree with the mini car suggestions. For urban driving, our smart car was perfect. If you have to park on the street, you can take spaces others have to pass by, and that' an advantage. Today there are lots of minis available. AND the margin on used mini cars is more normal because you aren't competing with buyers from the suburbs who are focused on minivans and SUVs.

The smart cars are more expensive (made by Mercedes Benz) than others you'll find now, and I liked mine a lot. Now I'm using zip cars and buses since I travel so little, and we can easily get by with one vehicle.
The mightiest Oak is just a nut who stayed the course.
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Car Advice

Post by livesoft »

I just bought a car last week. Here's is how it happened:

1. I asked a specific question on the forum via a poll and got a few answers and some private messages that were all useful.
2. I knew the kind of vehicle I wanted and the price range I was willing to spend.
3. I use kbb.com , edmunds.com, truecar.com, carmax.com, and ebay.com to search for used vehicles that fit my criteria. Many of these places have free CarFax reports which I took advantage of.
4. I increased my search radius to 200 miles and also increased the miles allowed.

I e-mailed a dealer about a car and talked to them about what I wanted and my out-the-door price.
I visited a different dealer and told him to make me an offer. He made an offer that afternoon. I researched his offer and countered with a price a few thousand lower than carmax (a no haggle place) and a few thousand dollars lower than any other prices found on web sites above. He accepted my offer 2 days later. It was about 15% below the initial offer. And though I intended to pay cash, in the end I got a 0% loan.

I would not buy a new Camry or Accord when you can get a used Lexus for less. And Lexus owners will generally have taken better care of their cars especially if they were leased. You can dial in the price you pay by the age and mileage of the car.

Stay within your budget.
Wiki This signature message sponsored by sscritic: Learn to fish.
Louis Winthorpe III
Posts: 780
Joined: Sat Jun 15, 2013 11:17 pm

Re: Car Advice

Post by Louis Winthorpe III »

In general I prefer to buy new and drive it forever. But depending on the city and area you're in, insurance for a vehicle parked on the street can be a huge part of the total cost of ownership. I would find out what your insurance costs will be for anything you consider, but I believe you'll be better off buying used even though used car prices are high. Consider buying something a little older than you otherwise might. Maybe 7+ years rather than <5 years.
FinanceDoctor
Posts: 184
Joined: Fri Aug 21, 2009 2:03 pm
Location: Western NY

Re: Car Advice

Post by FinanceDoctor »

There are three general thoughts on this and none of them is "right" or "wrong." They are:

1) Buy new Toyota/Honda and drive it until the wheels fall off. If you use the standard method folks around here use to negotiate, you will get the best price.

2) Buy slightly used Toyota/Honda (2-3 years old, fewer than 40,000 miles) for $10,000-$15,000 and drive it until the wheels fall off.

3) Buy new Toyota/Honda and drive it until around 100,000 miles. Sell it, repeat.

I have gone through the same process twice in the past 18 months and both times have selected option two after running the numbers. We bought a 2010 Camry for $13,000 in 2012 and a 2010 Corolla for $10,500 in early 2013.

I test drove countless Corollas, Civics, Accords and Camrys. I much prefer the Toyotas to the Hondas. The Honda vehicles feel like toys compared to the Toyotas to me. I preferred the size and space in the Camry. My wife preferred the smaller size of the Corolla. I ran the numbers a few different ways and with our driving habits could not justify the added cost of the Hybrid options.
lululu
Posts: 1378
Joined: Thu Apr 10, 2014 4:23 pm

Re: Car Advice

Post by lululu »

If I were buying a new car, I'd buy a Prius or a Volt for environmental reasons.

However, I drive a 1992 Buick. These really are iron cars. My grandparents had a Buick forever.
User avatar
mmmodem
Posts: 2628
Joined: Thu May 20, 2010 1:22 pm

Re: Car Advice

Post by mmmodem »

Gas currently costs $4.35 a gallon where I live in California. Instead of the standard Accord and Camry recommendation, I'd recommend a Prius instead. Edmunds.com has an excellent Total Cost of Ownership calculator on their site. If you intend to keep you vehicle longer, you'll have to do your own extrapolation into years 6 and beyond. 5 years will set the trend. While the lowest trim Camry may cost thousands less than the lowest trim Prius, Its total cost of ownership over 5 years is $42,881 while the lowest cost Prius is $37,076.
http://www.edmunds.com/toyota/camry/201 ... =200497902
http://www.edmunds.com/toyota/prius/201 ... =200492963
Passenger space is larger in the Camry but cargo capacity is larger in the Prius due to the hatchback design, so in terms of utility, I'd say it's a wash. If you want to save a little more money, you can get the smaller Prius C for a TCO of $35,965 but it's a much smaller vehicle.

Finally, why buy new instead of used? Because Prius has extremely high resale values. If you do the math, you may find that the costs for new is a few hundred more than used. This is more important in a single car family where there is no back up in case of breakdowns. Also new, gets you 0% percent financing and 0 down payment.
User avatar
tsturbo
Posts: 144
Joined: Sat Nov 29, 2008 6:27 pm

Re: Car Advice

Post by tsturbo »

Acura
Honda

Would be my only choices if you are looking for reliability, longevity and resale :beer
User avatar
William4u
Posts: 1445
Joined: Fri Jun 01, 2012 3:02 pm

Re: Car Advice

Post by William4u »

We never buy new or from a dealer. We sometimes buy the old cars of friend and family, but we usually get a great deal from a stranger on craigslist. Craigslist is the best place to buy cars, if you are patient and get it inspected by a good mechanic.
User avatar
grabiner
Advisory Board
Posts: 35307
Joined: Tue Feb 20, 2007 10:58 pm
Location: Columbia, MD

Re: Car Advice

Post by grabiner »

mmmodem wrote:Finally, why buy new instead of used? Because Prius has extremely high resale values. If you do the math, you may find that the costs for new is a few hundred more than used. This is more important in a single car family where there is no back up in case of breakdowns. Also new, gets you 0% percent financing and 0 down payment.
You may find the same thing with other reliable cars. When I bought my last car in 2006, I expected to drive it until it was eight years old. The cost per year of buying a three-year-old Honda Civic and driving it for five years came out to more than the cost per year of buying a new Civic and driving it for eight years. (When I bought my previous car in 2001, this wasn't the case; there was a huge supply of off-lease three-year old Toyota Camrys, so the cost per year of buying one of them and driving it for five years was less than the cost of buying new.)

Another advantage of a new car is that the operating cost for the first few years is less (except possibly for collision/comprehensive insurance). For the first few years, you are unlikely to need much in repairs, and any repairs will be covered by warranty.
Wiki David Grabiner
User avatar
fandango
Posts: 518
Joined: Wed Dec 08, 2010 5:44 pm
Location: Greater Atlanta area

Re: Car Advice

Post by fandango »

This strategy has always worked for me:

1. Negotiate hard for the best price on a new highly reliable car (Toyota, Honda, Subaru, etc.).

2. Drive the vehicle about 200,000 miles. Maintain it as required along the way.

3. Sell it in the private market (not the dealer).

4. Repeat.

Each car usually lasts 10 to 15 years with no break downs or repairs. I have a planned vehicle "outage" (decide when and how I want to sell) with no surprises or sudden need to buy a car.

Often, the "new" price that is well negotiated is not that much different than the "used" price (highly reliable cars hold their value better).

I often wind up with two cars: 1 relatively new car and 1 car about five or six years old with 100, 000 miles in its "golden" years.
Greentree
Posts: 252
Joined: Sun Jul 28, 2013 9:34 am

Re: Car Advice

Post by Greentree »

If you buy used, my preference is not to go to a dealer. It is hard to tell what you are going to get, and how the cars were treated. Often they have been in accidents, etc.

Carmax is the only place I'd go, but you do end up paying several thousand more than private.

My process is: figure out what car you want (research, test driving used, etc). Go to craigslist. Now you are not researching the car, but the owner of the car. Single owner is ideal, two owner is ok. If there are many owners, you have no idea if someone in the middle decided not to change the oil. When you call, ask them if they have maintenance records. The outside of the car is some indication of how it was treated overall. You can generally tell once you meet the person how they treated it. Are they a well kept middle aged person who is adamant about changing the oil every 3k?

I am in the city and prefer to buy from someone in the suburbs because it's easier miles.

Sounds time consuming, but once you narrow it down, you are just interviewing the owner. Do it over the phone first and then just check in person. You can take it to a mechanic for an extra check.

I prefer years to miles, in other words, I'd rather a 2002 with 50k than a 2010 with 90k. Generally, the car's life is more limited by the miles than the years.
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Car Advice

Post by livesoft »

Greentree wrote:If you buy used, my preference is not to go to a dealer. It is hard to tell what you are going to get, and how the cars were treated. Often they have been in accidents, etc.

Carmax is the only place I'd go, but you do end up paying several thousand more than private.

My process is: figure out what car you want (research, test driving used, etc). Go to craigslist. Now you are not researching the car, but the owner of the car. Single owner is ideal, two owner is ok. If there are many owners, you have no idea if someone in the middle decided not to change the oil. When you call, ask them if they have maintenance records. The outside of the car is some indication of how it was treated overall. You can generally tell once you meet the person how they treated it. Are they a well kept middle aged person who is adamant about changing the oil every 3k?
[…]
I'd used Carmax to check prices, but one can pay more at Carmax than they would pay at a dealer for a certified pre-owned car and also more at Carmax than private. Yes, one can pay thousands less than Carmax at a dealer with a good negotiation. I have not bought from a private party, but the lower prices there do go with higher risk. But if one finds the best deal at Carmax, then I see no reason not to buy a car there. But be sure to look elsewhere.

As for accidents, I would not shirk away from a car that has been in an accident. Cars offered at Carmax have been in accidents, too. While not all accidents are reported, many accidents do show up in a Carfax (not to be confused with Carmax) report. And certainly an accident causes many folks to dismiss the car which can be your gain in negotiating. I read many times "rear-end accident reported, airbags not deployed."

While a light Carfax report may be a worrisome sign, a report with many entries does give one a better history of what a used car has been doing beforehand. How much value do folks put into Carfax reports?
Wiki This signature message sponsored by sscritic: Learn to fish.
psteinx
Posts: 5801
Joined: Tue Mar 13, 2007 2:24 pm

Re: Car Advice

Post by psteinx »

Lots of silliness in the answers in this thread.

You MUST buy car X

You MUST buy it in method Y

(Implied) Only cars of brands A and B are reliable (and they are always reliable). Other brands are right out.

===

There are a lot of factors that go into optimizing this decision for the OP, and depending on those factors, many different choices could work well (and some 'standard' choices may not work well).

The OP hasn't provided much of the important info.

Some variables:
---
How many miles per day/month/year would the vehicle likely get?
What uses other than commuting/driving around town would the vehicle likely be used for?
What's the most passengers you would likely have in the vehicle?
Would you use the vehicle to haul a lot of stuff around?
Where would the vehicle be used? (Urban vs. suburban vs. rural is part of it, but also climate/snow/rain)
What's the OP's target budget?
What's the OP's/OP's spouses familiarity with cars in general, fixing them in particular?
Is reliability super important (i.e. if the car had to go to the shop for 3 days, how big of a burden would that be)?

Etc.

---

My general thinking is that for minimizing cost, an older, unpopular American sedan might be good (but it might fare poorly on some other metrics). There are other choices that would maximize reliability, minimize fuel consumption, etc. But without a somewhat better picture of the OP's needs, it's premature for folks to assert confidently that they know what would be best, much less that there is only one real answer for the OP.
Cycle37
Posts: 31
Joined: Mon Dec 17, 2012 2:41 pm
Location: Rumson N.J.

Re: Car Advice

Post by Cycle37 »

Really urge you to buy used esp as you are living in a city environment which can be hard on a car. Also recommend you purchase uninsured drivers insurance as cities usually will have higher than average population of uninsured drivers.
User avatar
JupiterJones
Posts: 3624
Joined: Tue Aug 24, 2010 3:25 pm
Location: Nashville, TN

Re: Car Advice

Post by JupiterJones »

I'm a fan of driving a car until the wheels fall off.

Then learning how to reattach the wheels myself.

Then driving it some more, until the wheels fall off and I can't get them back on again. :D
"Stay on target! Stay on target!"
Middle
Posts: 261
Joined: Tue Feb 08, 2011 6:15 pm

Re: Car Advice

Post by Middle »

For what it's worth (yes, I spelled it out - YISIO), I went through this exercise a few months ago. I ended up with a used Prius that I could pay cash for. If the battery system craps out on me early, this will run up my ownership cost, but if not, then I am hoping for a good solid 10 years of low ownership costs. It seemed like a reasonable plan to me and 9 months in, so far so good.

Good luck
BigTom
Posts: 209
Joined: Sat Apr 26, 2014 5:43 pm

Re: Car Advice

Post by BigTom »

These days all the manufacturers have been cutting corners it seems . If you want a truly reliable car those mid 90's Japanese cars are unbearable for reliability .

To answer the op question I would look into an electric car if you are going to be computing a good amount of miles each day . You could basically get a new car for the price you would be paying in gas .

I am a mechanic for 15 years now and this thread has great advice. Honda and Toyota are the best cars on the road I give the Honda the edge here especially if you are going for reliability , Toyota has been having some funny quirky type things happening to their cars the past few years , I have noticed a lot of leaking struts in Toyota's the last few model years at around the 40-50k mile mark of fairly new cars . These aren't big issues but IMO gives the edge to Honda , because you will not need to make any major repairs to a honda for at least 70-100k miles . Not even drive belts go bad on these cars , I will usually be changing still good original drive belts when I do timing belts at 100k miles . Hondas and Toyota's are really easy to fix also bringing the cost of repairs down even if the parts are cheap . I drive an 08 Accord I got a few years ago for $13k with 70k miles . My wife has a Mazda CX-9 , with 30k miles and I already had to repair it a few times . Mazda is basically for drivetrain .

I will give honorable mention to Hyundai , Nissan, Subaru , Jeep . These are all good cars . Hyundai has really been making a nice product lately I was even looking at them when I was looking for my accord but there is no way I could justify paying the same price for a Hyundai as a Honda and I think that's where they went wrong , when you start looking at the Hyundai closely like I do , you see where they cut costs , and they do still have some issues . But the resale is horrid still so if you are looking used Hyundai might be the car for you they are really nice and you could get a good deal on one 4-5 years old .

Nissan and Subaru they probably pretty close to each other , maybe Subaru could be lumped in in the top category , they are maybe the easiest car to work on and they have a very good drive train considering you get 4wd that's a big plus if you live where weather is an issue . They are really small I can't fit comfortably in them , but I am really big . If I could there is a good chance Id own a Subaru . Nissan they are reliable cars , but when they get an issue it's always a big deal (labor intensive )and the parts are always expensive .

Now Jeep . This is the only American car I would ever suggest buying , unless you are into cars for a hobby , witch I am guessing none of you are . Now a jeeps will have issues starting around 40-50k but they are often very cheap to fix and easy to work on so if you like the style and are ok with a few repairs that don't cost an arm and a leg I would recommend you get a jeep but understand they will inevitably have an issue sooner then later . Ford is probably the best American car company at the moment as a whole . GM I wouldn't touch with a 10' pole any car that they have made after the bailout the cars are still designed using 90's technology and they are skimping out on parts . This is a shame since my favorite sports cars are Chevy , I'd love a new camaro or corvette , but they have so many issue I wouldn't be able to justify buying one . Also GM dealers are having trouble paying bills which means that if you bring your car in for warrantee work they will be held up waiting for parts for your car cause they can't pay for them , this happened to a few of my customers corvettes were tied up at the dealer almost to the amount of time it would be considered a lemon , waiting for warrantee parts .
CarlZ993
Posts: 229
Joined: Tue Feb 20, 2007 2:00 pm
Location: Austin, Texas

Re: Car Advice

Post by CarlZ993 »

I've used www.fightingchance.com on multiple new car purchases over the years. It has saved me thousands of dollars on my purchases. This works when you purchase a specific make & model vehicle (ex. - Honda Civic 4-dr DX w/ automatic transmission).

Pros: You create a bidding process between multiple dealerships (12 or more in some cases) via emails & phone calls. The only in-person contact is with the nearest dealership that sells your intended vehicle. When you get the lowest bid, you see if the original dealership can meet or beat the bid. If they meet it or beat it, buy it there. You will find which dealership is desperate to reach a sales goal for the end of the month (or year; if bought on or just before 12/31). Often times, dealerships will sacrifice a low profit or no profit sale in order to reach their sales quota.

Cons: The process is started near the end of the month. You will receive multiple emails & follow-up phone calls that can take up a lot of time. You rate your color preferences (I use my top three preferences) & the best deal might not be your favorite color. Models in 'hot demand' usually means no deals from the dealership.

I last used this system in Oct 2008 (during the free-fall part of the recession). The dealership in the nearby city sold me a Honda Civic with zero profit. I even got the dealer's hold-back. They just 'turned a car' & nothing else. I wrote them a check & drove back home.

On other occasions, I've paid $250 over dealer cost on one purchase & $500 under dealer invoice on another.
Carl Z
BigTom
Posts: 209
Joined: Sat Apr 26, 2014 5:43 pm

Re: Car Advice

Post by BigTom »

CarlZ993 wrote:I've used http://www.fightingchance.com on multiple new car purchases over the years. It has saved me thousands of dollars on my purchases. This works when you purchase a specific make & model vehicle (ex. - Honda Civic 4-dr DX w/ automatic transmission).

Pros: You create a bidding process between multiple dealerships (12 or more in some cases) via emails & phone calls. The only in-person contact is with the nearest dealership that sells your intended vehicle. When you get the lowest bid, you see if the original dealership can meet or beat the bid. If they meet it or beat it, buy it there. You will find which dealership is desperate to reach a sales goal for the end of the month (or year; if bought on or just before 12/31). Often times, dealerships will sacrifice a low profit or no profit sale in order to reach their sales quota.

Cons: The process is started near the end of the month. You will receive multiple emails & follow-up phone calls that can take up a lot of time. You rate your color preferences (I use my top three preferences) & the best deal might not be your favorite color. Models in 'hot demand' usually means no deals from the dealership.

I last used this system in Oct 2008 (during the free-fall part of the recession). The dealership in the nearby city sold me a Honda Civic with zero profit. I even got the dealer's hold-back. They just 'turned a car' & nothing else. I wrote them a check & drove back home.

On other occasions, I've paid $250 over dealer cost on one purchase & $500 under dealer invoice on another.
I have to do thins next time . [OT comments removed by admin LadyGeek]
blackdust
Posts: 28
Joined: Thu Dec 12, 2013 1:18 pm

Re: Car Advice

Post by blackdust »

dcw213 wrote:I am inclined to agree. Any suggestions on the best way to buy used? Dealership? For sale by owner? Definitely overwhelmed by all the options and really unsure of how to cover myself.
Best bang for the buck will be buying from an owner. Craigslist is my favorite place to look for used cars. If you find a car that you like then take it to a mechanic to be looked at and test drive the vehicle. I paid 50$ last time for a good mechanic to test drive and give the car
. a good look through. Trust me. The mechanic is a must. I was about to buy a beautiful Mercury Mountaineer SUV but paid the mechanic to look through the car and found out that the transmission is going bad and would cost 1,500 to repair.

Also, Name brand cars like Hondas and Toyota's are just name brand. Every car will brake down and need repaired. So called "reliable cars" will break down if they are abused. A mechanic can easily test drive the car, put a scope on to read the codes in the computer, and look through the car and can be able to tell the condition. I would look for a trusted mechanic. :happy


Edmunds.com is a good place to read reviews and specs on cars.
Post Reply