Actually....though I completely agree MB about anyone who sells cars, that doesn't sound like a bad deal. A 2003 with the same amount of mileage would probably cost you around 20K or a little more. If you're REALLY getting 5K more than you can get for your Civic, it's probably not a bad deal if the sale is structured as a trade-in (because you'll get the sales tax benefit whereby you only pay sales tax on the difference between the cost of the new car and your trade-in allowance).
RM, Who's your guy? Mrs. rr and I are getting semi-serious about popping for a vehicle made in this century.
I don't think you were being an ass... just maybe off-topic. BTW, good advice by bama and you for anyone that may be reading it.
The 300 is a gorgeous car. Putting 20k on a car in 6 months means almost all of them were highway miles, less wear and tear than city driving. She would probably feel like a queen in it...for two years, then it will look dated. So IF you do it, make sure she knows she needs to drive this car till not only it's paid for she has saved a large amount towards it's replacement. I'm not so against some debt for a car provided the biggest chunk of the depreciation is out of it. Rates are low and people really derive a lot of their self-impression from their auto's. The real question is how much of her disposable income is the car taking, how secure is her income stream, and are there other future purchases like a home that this purchase will hinder.
RM95, My first piece of advice to you would be, don't assume that Carfax will know the vehicle's whole history. Their information sources are very limited. More or less, they do a title search, but if the vehicle's ever been in an accident. The best thing you can do is, bring the vehicle to a mechanic, preferable, a mechanic that knows about body work so that he can check the vehicle well. Carfax will never beat a good, knowledgeable mechanic. Second, $22K for a 04 Chrysler 300M seems a lil high. According to the books and websites I use, there are about 10-15 others just like that, which are listing for less than $20K. More than likely, this guy is not really paying off her car. Hes just adding the negative equity into the price of the Chrysler. Third, on the Tahoe, Im showing a value (based on full options) at about $14K. Again, seems hes taking on a lil there. Last, I agree with many others on here, in that when you trade a car in that you are upside down on, no matter what the salesman says, you will probably end up being upside down on the one you are buying (fuzzy math ). My advice to you would be, if she is set on getting rid of the car, at least sell it retail, where you will get about 20% for it. BTW, if you give me the specs on her car, I can research some auction results here in Houston and tell you what the car would bring.
I used to believe in this sentiment as well, but I've since realized how quickly your monthly payments can increase if your rate is higher, so now I'm not as big on that idea when interest rates are generally a bit higher for used vehicles. For instance, at my credit union, new car rates start at 3.9% while used car rates start at 5.9%. The monthy payment for a new car at that rate over five years for $20K financed would be $367, but for that same monthly payment on a used car, you could only finance $19K. Second of all, there's the fact that if you buy new, YOU get to enjoy driving the car for the extent of it's warranty. Certainly, there are some lemons out there, but there's a good feeling associated with knowing you don't have to worry about out of pocket expenses for the high cost of auto repairs. Then, there's the intangible aspect of being the first owner of a new car. Plain and simple, it makes you feel good. For these reasons, I've switched from buying newer used cars to really concentrating on finding the best deal on a new vehicle.
Well, we bought a new car today. We got a fully loaded 2004 Accord EX-L, graphite exterior, grey leather interior, 6-disc in-dash changer, XM Radio. We financed the car for $22k at 2.9% financing (not including the trade-in, but since everyone's an expert, I'll leave that part out! ). This is a car I can see us in for years and years. Both of our families have had amazing experiences with Accords that we foresee having this car for 200k miles. This is RM95's Girl's first new car and it really kinda sealed the deal in regards to our relationship becoming permanent. Seeing the excitement on her face makes it all worth it. Looks like giving her the ring's gonna be anti-climatic! Woohoo!!
Completely unrelated, but have you ever thought about asking the original RM95's girl to surrender her password to her Clutch BBS account to the new RM95's girl? Access to that account should always pass to the current rightful holder of that title .
I don't remember the password and I know for a fact that ex-RM95's Girl doesn't. She only posted a couple of times, but I know the new one would probably post more. Maybe Clutch would send it to me.
I'm sorry all SUV owners, but I do a little dance inside each time someone says no to an SUV. Congrats!
Pole, the way to see which car is the best value is to add up the total paid for each car after all the payments less the estimated value of the car when it is paid off. Since cars depreciate about 20% per year, depreciation starts huge in the first year and decreases rapidly. Maybe one of our CPA's will show the math but I think you'll find the first years depreciation will be far more than the difference in the total of the payments for the slightly higher interest rate.
I agree with that. I had an Integra (which was essentially an Accord) that was pretty well indestructable. Put 100K miles on it in three years with zero problems at all.
