[Need Advice] Is right now the best time to Purchase a Vehicle?

Your parents think it's a good idea for you to go into debt to buy a car?

 

I've been car-free for 5 years (god bless the subway system) but have decided that since things suck in the financial industry this year, 2009 will be the Year of the Roadtrip. So we're buying a car as well. I have 30K in cash earmarked for it, but if I can go cheaper, I will. Also, living in the NE, I'm not sure I want a new car....things get bashed up, frozen, cracked, and salt-damaged up here. Thinking about maybe a 2-year old car...maybe something some idiot overextended himself on and had to sell.

 

Gotcha. That makes sense.

You seem to have the right attitude about it (not wanting to overspend, paying it off early, etc) so I say go for it. If this is your only financial liability, buy it and pay it off quick, since you can afford to. Then you will have a car for a long time and not have payments. This will be a HUGE advantage once you enter the real world.

I would go used though. That car loses a 3rd of it's value the minute you drive it off the lot. Literally. Go to Carmax. All their cars are like new and they are very reasonable. You can get a 2 year old SUV for less than 15K. A nice one too.

 

this all depends on 1) what's wrong with your car, have you taken it to see what the check engine light is about? 2) do you have any money saved up already?

 

You can pretty much go into any Ford, GM, or Chrysler dealer and name your price, starting the bidding well below invoice.

 

if you're serious about getting a car, then yes, right now is probably the best time you will ever come across in terms of purchasing power for the consumer.... assuming you have the $$ and/or can qualify for a loan

 

If the new cars are good deals -- the slightly used are great deals! You can likely get a fully loaded car still under warranty in your price range.

I agree with Meggo here -- depends what's wrong with your car. It's next to worthless now...so, as long as it's safe (and since you already have a girlfriend ), start saving now, and drive it into the ground. The 'deals' don't seem likely to go away any time soon.

 

Do the math yourself.

You buy a NEW car at 20,000 with monthly payments of $400 for roughly 4-5 years.

Lets say you hold on to your same car, start saving NOW $400 a month for exactly 12 months. Lets say you buy that same exact car, 1 year later.

that car will run you about 15,000 and you will have about $5000 in savings.

If you wait one year, you can get the same car for half as much.

 

Wait 1 year and he will have to pay for another extra year starting next year. It sounds like he needs the car pertty bad and he can afford it plus he will get used to budgeting a nice chunk of change to prepare himself for a mortgage or rent in the future as opposed to blowing extra money on all fun and games. Good advice from parents I'd say.

 

My wife and I both have had a car for over eight years living outside of Boston and have not had problems with salt or freezing. Street parking is another story.

Rock3t Man: Take your parent's Xtera and let them get a new car.

 

A car dealer friend of mine said that the worst financial decision that anyone ever makes is to buy a new car. "Dont' get me wrong" he said, "we love it." Since new cars depreciate up to 50% in two years, here is my suggestion: pick out what you want (I recommend Toyota, Honda, and maybe Nissan, perhaps Mazda) and find it on AutoTrader.com or Craigslist. It should be two years old, between 20,000 and 30,000 miles, and in great condition. I prefer top of the line, loaded out models (leather, sunroof, heated seats, etc.) Your best bet is to buy it from a private seller but a ready to sell dealer will do. You should pay 40 to 50 percent less than new, and, essentially, it is new. You will still have factory warranty but ALWAYS get a CarFax, a history of accidents and repairs and a guarantee that if the car has been trashed, they will buy it from you. Also, work out your own financing, never finance at a dealership, and never answer the question, "how much do you want to pay per month?"

 

Not to derail the thread, but what do you guys think re: lease vs. buy?

 

Leasing is a way for dealers to get people in a car they really cannot afford. You will NEVER win on that deal.

 

Not necessarily. While I agree that a lot of people lease to drive something nicer than they can afford (SEE DALLAS, TX), it makes sense in certain cases.

As far as buying a car now...yes the dealers are hurting, but they will be hurting even more in another 4-5 months. I would drive your car until it dies unless something is really wrong with it (you can take it to an Auto Zone and they will do a free diagnostic check for a check engine light).

I would suggest buying used as well. However, I had a serious wreck in a car I owned and it didn't show up on the CarFax report.

 

offer to buy that '04 xterra

 

solid advice, thanx

 

The short answer is: Buy used.
The long answer is: You really should buy used.
The longer answer is: If you insist on buying new, consider leasing. For a few people, it's a better deal. Run the numbers on total cost of ownership.