New Vehicle Prices: I don't get it?!?

[SteveSRT8]

Originally Posted By: OVERKILL
I got a great deal on a new vehicle. I've never bought one before but bargains do exist out there if you look (or are lucky and one falls in your lap).

I'd always balked at the cost of entry for a new car and had subsequently bought used (like many others) so this is foreign territory for me.

I don't really have any advice/guidance on the matter, just stating that new can sometimes work price-wise.


And IME it works best when you keep them. I buy a lot of trucks for work, but my personal fleet is surprisingly dated except for our new RAM. Next newest car is an August 05 purchase, long ago paid for.

Keep 'em for ten years or so, well maintained they fetch good prices used for the folks that want them...

 

[IndyIan]

Originally Posted By: SteveSRT8
Originally Posted By: OVERKILL
I got a great deal on a new vehicle. I've never bought one before but bargains do exist out there if you look (or are lucky and one falls in your lap).

I'd always balked at the cost of entry for a new car and had subsequently bought used (like many others) so this is foreign territory for me.

I don't really have any advice/guidance on the matter, just stating that new can sometimes work price-wise.


And IME it works best when you keep them. I buy a lot of trucks for work, but my personal fleet is surprisingly dated except for our new RAM. Next newest car is an August 05 purchase, long ago paid for.

Keep 'em for ten years or so, well maintained they fetch good prices used for the folks that want them...

Out of the rust belt, you guys have it easy and your 10 year plan works quite well. Up here 10 years is about the time many cars show a few spots of rust here on top(underneath is usually very rusty) and the value starts to head to $2-4k regardless of the purchase price. Also 200k km (160k miles) is another big dip in resale here.
I might buy new again, but it will never be anything near msrp for vehicles in the high 20's or up, 25% off or more usually gets the vehicle into a reasonable cost per year range for us.

 

[JustinH]

Agree strongly. I lived in New York for almost my whole life.

Cars get destroyed by the salt, and it is not only cosmetic. I have had cars that would not pass inspection due to frame rust, etc.

At around 100k miles the rust will usually kill the car.

Late model chevys are pretty popular up there, they just get new ones every 4-5 years and the cycle continues.

Down here in Texas, my wife's 08 Matrix only has 70k miles on it. We have done all the maintenance, and I think that she can keep the car to 200k miles NO PROBLEM.

 

[flinter]

Yup, 72 month financing is total financial irresponsibility, in my opinion. If you can not afford to pay off a car in 36 months, you should NOT be buying NEW!

I just purchased a brand new 2015 Honda Civic EX sedan, did a 24 month small loan.

 

[Olas]

If you can't afford to buy outright for cash you need to look for something cheaper. Borrowing money is an idiots game - my mortgage is the only borrow I've ever taken, and I paid it off early because I hate debt & interest.

Allowing a car to rust is just lazy. God invented underbody pressure washer attachments for a reason, and he also invented underseal for a similar and related reason.

Maybe if you guys didn't let your cars rust to dust in 5 or 6 years you wouldn't have to keep borrowing money to buy new ones?

 

[R2d2]

Basically your salary hasn't kept up with inflation, and car prices have.

 

[flinter]

Well, my annual salary increases have easily and always kept up with inflation.

 

[JHZR2]

Originally Posted By: hattaresguy


Trucks suck, if I didn't need one for work I'd be driving a car like an E250CDI.


Trucks dont suck, theyre perfectly fine if you keep shut up about fuel costs (as you mentioned in the text I removed from the quote), and you own it cash and use it as intended.

I was very close to buying the E250CDI - I could use a third MB Diesel in my stable. But I bought an accord hybrid instead because I could get two for the price of one when buying new...

Which brings us back to:

Originally Posted By: Mr Nice

OT:
Last year I put away $27,000 towards retirement (doesn't include my wife's retirement contributions). When I say that to middle class folks living the illusions of being wealthy and are cash poor.... they look at me as if I was crazy and not spending that money.

 

[turtlevette]

The significant depreciation as soon as a car is titled, means the dealers are getting too much for them. What other commodity is like that?

Its a racket. The cash for clunkers program upset the market too.

I bet a big percentage of 5.0 Stang's are bought by kids living with their moms. They just want it, no matter the price. I refused to pay a 12k up charge for a bigger engine.

 

[cjcride]

Originally Posted By: Olas
If you can't afford to buy outright for cash you need to look for something cheaper. Borrowing money is an idiots game - my mortgage is the only borrow I've ever taken, and I paid it off early because I hate debt
In North America the interest rates are at historic lows. Borrowing is not so bad if you pay it off in proper fashion and don't just pay the minimum each month.

PS I do own some bank stocks so take the advice with a grain of salt

 

[Andrew1972]

Originally Posted By: OVERKILL
I got a great deal on a new vehicle. I've never bought one before but bargains do exist out there if you look (or are lucky and one falls in your lap).

I'd always balked at the cost of entry for a new car and had subsequently bought used (like many others) so this is foreign territory for me.

I don't really have any advice/guidance on the matter, just stating that new can sometimes work price-wise.


Yes if you buy a low desire in local market and typically high performance model there are real bargain to be had like you found. My wife/I did it with her Subaru turbo wagon 5mt base model 10 years ago that beyond being sold below invoice with no negotiation had a $3000 rebate attached beyond.

 

[wirelessF]

When we NEEDED good work trucks we would buy used. Bought two early 00's trucks that were 5 and ten years old when we bought them. No major issues and minor issues can be easily fixed. Some body damage but it ain't a Subaru or Lexus. Way better than the old late 80's-early 90's trucks that they replaced. Bought them when gas was expensive and using cash so the only payments being made was at the gas pump, at the peak of gas prices.

Then again I don't get people who buy CARS brand new. I see them as novelty products and most owners will get sick of them in the middle of paying off a $45,000 loan/lease. I would love to buy a truck brand new for long term ownership but can't stand the depreciation if you were to buy the same model used after 3-5 years.

 

[Clevy]

Originally Posted By: flinter
Yup, 72 month financing is total financial irresponsibility, in my opinion. If you can not afford to pay off a car in 36 months, you should NOT be buying NEW!

I just purchased a brand new 2015 Honda Civic EX sedan, did a 24 month small loan.


When I bought my charger they wanted to stretch it over 5 years and give me a very low payment. Like 195 a month low.
I had 3000 to put down and said 3 years max. When I saw the payment I asked for a 30 month term,and settled on it.
I hate to borrow money. However I do think it's smart if you can get the rate low enough. Which I did.
Twice I got up to walk out when negotiating. You've gotta be prepared to walk away. It's an appliance. Remember that.

 

[Eddie]

The only time I ever bought a new car with a loan was when the manufacture offered 0.9% and I was getting 2.75% on a CD. If you must borrow money to get new, then you shouldn't by new, but, buy used until you can really afford new. Expensive Wine on a beer budget just doesn't work well for the long term. Ed

 

[hattaresguy]

Originally Posted By: JustinH
Agree strongly. I lived in New York for almost my whole life.

Cars get destroyed by the salt, and it is not only cosmetic. I have had cars that would not pass inspection due to frame rust, etc.

At around 100k miles the rust will usually kill the car.

Late model chevys are pretty popular up there, they just get new ones every 4-5 years and the cycle continues.

Down here in Texas, my wife's 08 Matrix only has 70k miles on it. We have done all the maintenance, and I think that she can keep the car to 200k miles NO PROBLEM.



I was in upstate NY over the weekend and we stopped at a gas station/small garage for fuel and a coffee. They had I'm guessing a 3-5 year old F550 outside with the rear body off. Cab was green and looked almost new, from the cab back looked like it had been sitting on the bottom of the ocean for the last 4 years.

IMHO the truck was a lot pig for plowing, but I know they fetch good money.

 

[cptbarkey]

the testosterone in this thread is so overflowing that all i see are smart guys who make nothing but smart decisions. too bad there aren't any ladies paying attention.

 

[HTSS_TR]

Originally Posted By: hattaresguy
Originally Posted By: surfstar
Originally Posted By: hattaresguy
Truck prices are high because fuel is cheap and people are buying them as cars. idiots with short term memories.

Pretty much, no one with a truck or SUV has any right what so ever to complain about the cost to fuel it, EVER.

So when it hits $4-$6 a gallon like we all know it will, tough.

Trucks suck, if I didn't need one for work I'd be driving a car like an E250CDI.

You need a truck for your work so you have pay the price of terrible MPG, there isn't much else you can do.

The single occupant Suburbans are the one should not complaint about spending a fortune to fill it up every week, they can easily drive a compact/mid-size car but they choose to dive a giant SUV by themselves to and from work.

The problem with American is as soon as gas price went down a dime a gallon they flock to dealers to buy the biggest truck/SUV available.

 

[Dave Hess]

Originally Posted By: Silverado12
Originally Posted By: pbm
Originally Posted By: CT8
Yep 72 month financing allows people to purchase what they can't afford.

It's the (new) American way (live above your means)...Our government is the biggest culprit...

Let's see... Tax breaks for those who didn't need it, two unfunded wars, American industry leaving the country and getting tax breaks to boot. I wonder why.


Silverado12,
Read www.Dailyjobcuts.com
Things aren't sunshine and roses the president says it is.

JHZR2,
$27K was for an IRA and 401K. I forgot about the $6K voluntary pension I contributed. Its either the ant or grasshopper mentality when retirement planning.

 

[TiredTrucker]

Originally Posted By: turtlevette
The significant depreciation as soon as a car is titled, means the dealers are getting too much for them. What other commodity is like that?


Not like we are talking about Gold, Silver, Copper, Oil, grain, etc. A vehicle is not a commodity. it is a manufactured mechanical product. And an ounce of gold does not wear out, while a vehicle will. The minute a vehicle goes from New to Used, the value drops. How much is dependent on many variables. They are not even in the same arena.

 

[lexus114]

i agree sweedishrider. when i looked at new kia`s in my area because i like they're styling and 100k warranties. i almost *** my pants what they ask for those now !!