for display only
Big Blue Interactive The Corner Forum  
Back to the Corner

Archived Thread

NFT: What is your philosophy when buying a car?

Sean : 6/12/2021 7:26 am
There are four common scenarios people opt for:

Option 1: Buy new and finance.

Option 2: Lease new.

Option 3: Buy certified pre-owned.

Option 4: Buy pre-owned.

My 2008 Honda CRV has 215k miles, and now that I will be commuting again a few days a week I’m looking to make an upgrade. My options will be an AWD SUV such as a Honda CRV, Toyota RAV4, Mazda CX5 & Nissan Rogue. Among other options.

I’m leaning certified pre-owned - hoping to find something no older than a 2019 with under 35k miles. The argument against new is always the depreciation when the car comes off the lot, I struggle justifying that myself. I do want good warranty options which tend to require certified-pre owned.

I’m curious how other people here handle car purchases.
Pages: 1 2 | Show All |  Next>>
I go for late model with high miles  
Mattman : 6/12/2021 7:37 am : link
for cars known for their reliability. I pay cash.

I picked up a few year old honda civic last year with 150k miles. I'll probably drive it until 300k. Well, that was working out well until I started working from home.

I do this as the cost per mile curve is very favorable. I only care about getting from point A to B safely and as cheaply as possible. Your mileage may vary depending on what is important to you.

Certified preowned  
UConn4523 : 6/12/2021 7:50 am : link
doesn’t make sense in this market, the prices are jacked up due to all the shortages out there. My car, a 2018 CRV EX-L has 7 payments left and in total, a $22k buyout. The exact same car on the lot with more miles and certified pre owned is going for $28k. Brand new the car is maybe $32k.

How’s the time to go brand new if you can find what you are looking for. Leasing vs buying is up to your personal goals, there’s pros and cons to both.
RE: Certified preowned  
give66 : 6/12/2021 7:58 am : link
In comment 15285185 UConn4523 said:
Quote:
doesn’t make sense in this market, the prices are jacked up due to all the shortages out there. My car, a 2018 CRV EX-L has 7 payments left and in total, a $22k buyout. The exact same car on the lot with more miles and certified pre owned is going for $28k. Brand new the car is maybe $32k.

How’s the time to go brand new if you can find what you are looking for. Leasing vs buying is up to your personal goals, there’s pros and cons to both.


Agree with Uconn. Last few cars I've bought certified pre-owned and save 1/4 to 1/3 off new price. If you don't get at least a 20% discount on a pre-owned I would go new.
Using a car buing service through my credit union,  
rnargi : 6/12/2021 8:23 am : link
Set filters for used vehicles under 25K with less than 20k miles and no accidents.

Last one I got for myself was a 2013 fully loaded Mercedes C250 Luxury with 9100 miles for 19.5K. Bought it in 2015. I bought my wife a 2018 Mazda 6, again fully loaded, with 17K miles for 18.5 the day before the pandemic shut down VA. Both have been outstanding vehicles.
Looking now (but waiting till price spike eases)  
bc4life : 6/12/2021 8:23 am : link
When you look at 1-2 year depreciation - hard to argue against certified pre-owned
Buy new and pay for it outright.  
rmc3981 : 6/12/2021 8:25 am : link
With low interest rates on some new cars, it may not be the smartest thing to do, but i hate making payments.
could also  
bc4life : 6/12/2021 8:26 am : link
just pay cash for certified pre-owned?
BTW Sean..  
rmc3981 : 6/12/2021 8:27 am : link
Unbelievable that your CRV has 215,000 miles. That's impressive.
RE: Buy new and pay for it outright.  
UConn4523 : 6/12/2021 8:30 am : link
In comment 15285201 rmc3981 said:
Quote:
With low interest rates on some new cars, it may not be the smartest thing to do, but i hate making payments.


If someone might lease that generally means they don’t want to or can’t pay $30k+ cash for a car. And why would you anyway? Interest is so low now, there’s no advantage anymore to giving them all your money up front. Taking $25k of that and investing would be the way to go.
It depends on the interest rate  
pjcas18 : 6/12/2021 8:34 am : link
if I finance or not.

My last car I bought (2016 Honda Pilot) offered 0% financing - so I took it. I will always take 0% financing if it's offered.

otherwise I probably pay for the car outright.

I just factory ordered a 2021 Ford F-150 and will pay for it.
Just typically buy new. Discuss and enter into financing  
Jimmy Googs : 6/12/2021 8:34 am : link
arrangement if I can negotiate a better overall deal or see if dealership willing to provide extended warranty, long term maintenance plan or other add-on. Once deal complete, just pay off financing that month.
......  
Route 9 : 6/12/2021 8:51 am : link
"I hate life so much"
I buy new bathe two year old “depreciated car”  
Shecky : 6/12/2021 8:54 am : link
I know this goes against the convention wisdom, but I just never did get the “two year old” car thing. I just find it so easy to negotiate a great deal on a new car. And find it so difficult to negotiate a used car.

Above and beyond that, I find value in knowing everything in the car of a two year old car is two years closer t repair. Tires, fluids brakes and all the basics. But also the unforeseen minor $500 repairs. The warranty is two years less. Everything is two years less, each person I guess can value that differently. But there is definitely a monetary value that is hidden.

When you trade in your car, it also has value as a two year older car, especially if it’s high mileage. Could be a few hundred bucks, or a couple thousand. Again, one owner and newer, there is a hidden value to it once again.

It all depends how well you negotiate and can find the right deal. I know people who have been ecstatic they saved 20% or more buying used. By comparing used to new sticker. It’s not unheard of to buy a new car for 20% off sticker, in those cases it’s a no brainer to me.
Just bought my car off a lease  
Joey from GlenCove : 6/12/2021 8:57 am : link
Paid 24k... on used car sites they are going for ~30k

2018 grand Cherokee
 
ryanmkeane : 6/12/2021 9:04 am : link
my philosophy is cars are like phones and TVs to me. I always buy or lease new cause I just don’t love the feel of a used car.

Just leased the new Kia Sorento, I basically went in and said here are my preferred options and then went from there. Went back and forth about 3 times on the monthly payment and settled on a price
Sean -  
ryanmkeane : 6/12/2021 9:06 am : link
I looked at all the cars you mentioned too, thought i was gonna love the Mazda based on everyone’s recommendation but didn’t love it.

I’d check out the Sorento S or EX. Best test drive I’ve done in a long time and it has a little more tech features than the competition. We leased it on the spot
Honda and Toyota are very reliable. Reliability is a good philosophy.  
Marty in Albany : 6/12/2021 9:08 am : link
Getting a long, (5 or more years) low interest loan is a good philosophy.

Getting a long warranty on parts and service is a good philosophy.
Having a convenient, friendly dealer is good philosophy.

Getting a color that your wife or girlfriend approves of is a good philosophy.
I like buy new  
Giantimistic : 6/12/2021 9:16 am : link
Sometimes, depending on the deal, I will buy new and finance for a month a pay it off. Sometimes I have found a lot of added discounts if you sign up for the financing--I make sure there are no pay off early penalties.

My plan is always to have and drive my car for at least 10 years. I love not worrying about keeping it in a certain way for a lease or under a certain mileage. I beat my cars up pretty good over time.

I buy new - make sure the car has all the latest tech  
ZogZerg : 6/12/2021 9:37 am : link
and keep if for 10+ years.
That has worked out well.

I also bought a pre-owned certified car from the dealer for my son. That worked out great as I still get free oil changes with it 6+ years later.
I go back and forth  
Mark from Jersey : 6/12/2021 9:43 am : link
I have bought new and newer used recently. All depends on the deal I can get, the condition of the car, the CarFax history, etc.

Over the past 15 years or so I have purchased 1 CPO car (sold at 166K), 1 used car that was less than 1 year old (still own), 1 new truck (traded it in for my new truck at 67K as I didn't love some small things going on and was a little bored with it TBH) and most recently a new truck that I felt like I stole from the dealership. Rebates & dealer incentives took over 10K off of a 55K list.

May be harder to find a good deal in today's market though. Chip shortage and low inventory levels making it tougher. I should also not I typically buy in the fall when new model years start coming in.
Appreciate the feedback..  
Sean : 6/12/2021 9:44 am : link
regarding buying new - is there a sweet spot as to when to do list? I’m not concerned as much with getting the newest model, so would buying a 21 in the fall when the 22’s hit the lot make more sense?
In 2021? Probably no real guideline  
UConn4523 : 6/12/2021 9:59 am : link
too many unknowns in this market. Inventory will dictate everything and I’d imagine new models will be delayed and older (2021) models will hold their value well since there’s a nationwide shortage.

If you aren’t in a rush you might as well wait and see if this corrects over the next few months. Personally I give up and trying to tough it out all summer with 1 car. I only need a 2nd vehicle for convenience between my wife and I but the used market is such a pain that I’ll just hold off for a bit.
OR...  
rmc3981 : 6/12/2021 10:15 am : link
you can buy a new Tesla and not have to haggle over anything :)
Buy new, buy Japanese (Mazda for me),  
beechbouy : 6/12/2021 10:15 am : link
pay cash. Hold on to it for 10 years, Repeat.
I'm a car guy, aka its not just transportation for me  
Jim in Forest Hills : 6/12/2021 10:23 am : link
I have always bought new cars, sometimes I finance, sometimes I lease. But I think my next car will be a CPO because I found a car I really like but the refresh I hate. So I will be looking for a 2020 model when my Volvo lease is up.
I've had good luck with Hertz car sales!  
Grey Pilgrim : 6/12/2021 10:26 am : link
Bought a Camry with 20,000 miles for $17,000.
https://www.hertzcarsales.com/ - ( New Window )
I've had trouble with every used car I've bought  
Csonka : 6/12/2021 10:44 am : link
You just don't know how well they were maintained.

So I now buy new and take care of it and plan to hold a very long time. I like the warranty and the new tires and the new car feel.
I like to lease  
BH28 : 6/12/2021 10:52 am : link
With all the tech advancements in cars, it seems like cars have become like cellphones with new safety/technology features being added all the time.

If that's important to you, leasing would make more sense than buying.
If you can wait...do so  
AnnapolisMike : 6/12/2021 11:24 am : link
Used cars prices have spiked and your unlikely to get much of a discount on a new car because of low inventories. Many cars are actually selling above MSRP now.

I am in the business and unless you need a car you are better off waiting until inventory constraints ease.
A couple here  
trueblueinpw : 6/12/2021 11:58 am : link
We have an old Volvo, we paid cash for it and it’s pretty much like a member of the family now that we’ve he/r for more than 15 years. When I drive that car, even today, I still think about what a great car it is. After years of looking I finally found a great Volvo mechanic here on Long Island. I budget about $1,200 per month for maintenance. (Kidding, but only not really because Volvos are fuck all expensive to work on).

We also have a lease car. I initially got for tax purposes when I owned my own business. To us, this car is a rental, we really only think about what we want to drive and how much we want the the monthly payment. Dealers takes care of service, etc. We get a new one every two to three years. The Mrs. deals with the dealer, she’s a much better negotiator than I am.

So, two different cars with two different philos.
The depreciation argument is stupid  
Gman11 : 6/12/2021 12:24 pm : link
Unless you're going to sell it right after driving it off the lot what difference does it make what the resale value is immediately after purchase?
I usually buy new, typically a Honda or Subaru.  
tangled up in blue : 6/12/2021 12:25 pm : link
I usually put at least 175,000 miles on the car before trading in. As others have said the new car feel is nice and I like having the warranty
RE: OR...  
Gman11 : 6/12/2021 12:26 pm : link
In comment 15285255 rmc3981 said:
Quote:
you can buy a new Tesla and not have to haggle over anything :)


Except telling the wife you just paid $80,000 for a car.
RE: The depreciation argument is stupid  
Jim in Fairfax : 6/12/2021 12:43 pm : link
In comment 15285285 Gman11 said:
Quote:
Unless you're going to sell it right after driving it off the lot what difference does it make what the resale value is immediately after purchase?

If you’re keeping the car 10+ years, not that much. But if you’re moving into a new car every few years it costs you a lot. A typical car loses 25% of its value that first year and nearly half overall after 3 years.
It is the wrong time to buy a car.  
larryflower37 : 6/12/2021 1:10 pm : link
Inventories on both new and used are at an all time low.
Otherwise,
I usually short term lease 2 years and do 10k miles per.
If I love the car after 2 years I buy it and in most cases have equity if I want to flip it in a year or 2.
I buy new or used late model.  
Red Dog : 6/12/2021 1:14 pm : link
I pay cash, maintain the vehicle to the absolute best standard that I can, and drive it into the ground. In the long run, that is THE most economical way to buy.

Buying new allows me to get it pretty much exactly the way I want it within the boundaries of what is available. If I can't get what I want, I won't buy it. And I am a very picky bastard, which is why Ford has lost my business twice and Toyota has never been able to win my business for either their their main brand or Lexus.

Buying a late model used with relatively low mileage (definitely under 50K) gets more vehicle for the money but you are buying somebody else's problems. I've had both big wins and bad results doing this, but I can definitely say that about new cars too, which is the main reason I won't touch GM vehicles any more, and also the reason I am becoming more critical of Ford products.

And for perspective, I was in as auto services business and did a lot of my own work when I was a lot younger.

RE: It depends on the interest rate  
EricJ : 6/12/2021 1:19 pm : link
In comment 15285206 pjcas18 said:
Quote:
if I finance or not.

My last car I bought (2016 Honda Pilot) offered 0% financing - so I took it. I will always take 0% financing if it's offered.

otherwise I probably pay for the car outright.

I just factory ordered a 2021 Ford F-150 and will pay for it.


PJ...here is something that worked for me the last two times I bought a car. It was my wife's car and also my truck. I planned to buy cash for both IF there was no 0% or 1% financing. Unfortunately, they did not have such a deal at that time.

So, do not tell the salesman what your plan is when it comes to how you are going to pay. Negotiate the lowest possible price for the vehicle with him.

Then, you will be sent into the finance department. They make thousands if you finance the vehicle. Tell the finance guy that you planned to buy cash. However, you would be willing to finance the car if...

1. He reduced the price of the vehicle
2. there was no prepayment penalty.

In both instances, I was able to have the finance guy reduce the cost of the vehicle by at least $2k.

For my wife's car he knew I was planning to pay it in full when I drove off the lot. However, he asked to wait 30 days so the lender would not claw back his commission.

He also credited me for the first month's interest. I waited until the first payment was due and just sent a check for the entire balance.

We both won.
Lease new. I don’t want to own potential problems when I can avoid.  
glowrider : 6/12/2021 1:19 pm : link
I like to replace cars every three years depending on the residual and mf. I identify what I want upfront, build it out online and set targets and stretch goals. I’ll call the sales dept at virtually every dealership in a 500 mile radius with my specs, but never before I’m ready to say yes on the spot. Very important to be prepared to say yes to get the best possible offer. Also, have some flexibility in your specs and keep detailed notes. Most times you’ll eventually get the vin from a spec sheet so you’ll see multiple dealers shopping the same vehicle, which is great for price discovery.

As offers come in, I shift the goal posts, beat down the monthly and start making outrageous demands. Cash incentives, unearned fleet/loyalty credits, pickup/dropoff with loaner for all service, extended warranties, free Sirius xm, free “OnStar,” tire repair insurance, upgraded components, tinted windows, floor mats, LoJack, roadside assistance and towing, free car washes, expedited inspections. I’m a real pleasure. This drops a majority of the dealers, but there are several who will still be game.

At this stage you squeeze the last drops of blood from the stone, pick your preffered dealership, and done. I’ve negotiated every car deal for those closest to me for the last 20 years in this manner, never have had stress or a bad deal from my end, and still have good relationships with many of the dealerships because I am open with them that they are in a bidding war, I maintain excellent communication throughout, and I am decisive when given what I ask for. Sometimes one deal doesn’t work, but the next one does.

Have them deliver to the office or house snd pick it back up in 36mos. Never set foot in a dealership. Never have your cash tied up in the worst asset ever. I’m ok with a slight premium vs having to deal with selling a car down the road and if I just have to keep the thing, the buyout generally gets you near to what the cost to buy up front would be if the residual and mf were good.
if you like german cars as i do  
nyfootballfan : 6/12/2021 1:20 pm : link
last several have been cpo + further extended warranty.
finance every penny with cheap money deals (1-3% apr)
long warranties are a must on these cars.
look for refundable or pro-rate refundable,
so upon a sale down the road, you can get back a check.
last year was lots of low mile off lease deals due to wfh.
grabbed a 2yr old cpo bmw 17k miles, 1/3 off msrp.
RE: RE: It depends on the interest rate  
pjcas18 : 6/12/2021 1:28 pm : link
In comment 15285310 EricJ said:
Quote:
In comment 15285206 pjcas18 said:


Quote:


if I finance or not.

My last car I bought (2016 Honda Pilot) offered 0% financing - so I took it. I will always take 0% financing if it's offered.

otherwise I probably pay for the car outright.

I just factory ordered a 2021 Ford F-150 and will pay for it.



PJ...here is something that worked for me the last two times I bought a car. It was my wife's car and also my truck. I planned to buy cash for both IF there was no 0% or 1% financing. Unfortunately, they did not have such a deal at that time.

So, do not tell the salesman what your plan is when it comes to how you are going to pay. Negotiate the lowest possible price for the vehicle with him.

Then, you will be sent into the finance department. They make thousands if you finance the vehicle. Tell the finance guy that you planned to buy cash. However, you would be willing to finance the car if...

1. He reduced the price of the vehicle
2. there was no prepayment penalty.

In both instances, I was able to have the finance guy reduce the cost of the vehicle by at least $2k.

For my wife's car he knew I was planning to pay it in full when I drove off the lot. However, he asked to wait 30 days so the lender would not claw back his commission.

He also credited me for the first month's interest. I waited until the first payment was due and just sent a check for the entire balance.

We both won.


Good tip and I will do that since on my pre-order all I did was pay a deposit.

And I'm the opposite of Glowrider.

I have owned two cars the past 20 years.

A 2002 Acura TL (which I got in fall of 2001) and a 2012 Acura MDX with I got in March or so of 2012.

I bought both cars - the TL I bought through BJ's car buying program - pre-negotiated price for the most part and the MDX I did a bunch of research.

No idea why someone would want to go back to car shopping every 2 - 3 years unless you're someone who has to some latest feature.

My 2012 Acura MDX seems like it's still a modern car. If I trade it in I'll get around 10k for it (per Carvana estimate).

I can't see how leasing is better financially or the hassle of car shopping is enjoyable to anyone.

but to each his own.
I don’t find it to be a hassle. I want newer cars that have updated  
glowrider : 6/12/2021 1:43 pm : link
Tech, safety, looks and features. I like driving cars hard and not babying them. I like not caring about making it to a bajillion miles. I like having warranties that run the entire length of ownership. I like having services covered the entire length of ownership. I like knowing there won’t be some odd part that needs to be ordered that isn’t used anymore. I like that my monthly is predictable. I like that if I have to have it, I can, and if I don’t want it, I give it back.

Cars change so much, and the technology today is significantly better than anything in the last three years, let alone the last two decades, and the cars three years from today will be significantly better than the ones we have today, for what we can expect will be similar in price.
I don't envy  
pjcas18 : 6/12/2021 1:55 pm : link
you, I hate car shopping.

if you don't consider it a hassle then even better.

you could probably open a small business doing this on behalf of people as kind of a side job if you wanted to.

I've never personally owned a brand new car  
islander1 : 6/12/2021 2:00 pm : link
I can't bring myself to throw that much money away. Whether your budget is 10k, 25k, or 50k. You can get so much more value out of a 2-4 year old vehicle with low miles (under 10k/year).

My wife just bought her first new car, but it's electric so there were thousands in rebates that reconciled it. We ended up paying about 38k for a fully decked out 2019 Leaf SL-whatever with the extended battery in the fall of 2019.
RE: I don't envy  
glowrider : 6/12/2021 2:03 pm : link
In comment 15285331 pjcas18 said:
Quote:
you, I hate car shopping.

if you don't consider it a hassle then even better.

you could probably open a small business doing this on behalf of people as kind of a side job if you wanted to.


I’m an attorney, but this could be a great new practice area!
Just call it a busman’s holiday!  
glowrider : 6/12/2021 2:05 pm : link
.
RE: I don't envy  
Jim in Forest Hills : 6/12/2021 2:19 pm : link
In comment 15285331 pjcas18 said:
Quote:
you, I hate car shopping.

if you don't consider it a hassle then even better.

you could probably open a small business doing this on behalf of people as kind of a side job if you wanted to.


Not that this would make you change your philosophy but there are terrific car lease brokers around. You dont have to do anything. Many dont charge me a fee. Name a car, model and price. They try to get that for you or as close as possible. Mine delivers the car as well. Zero headache.
Leasetrader is also a solid option that is rather prudent  
glowrider : 6/12/2021 2:32 pm : link
Not sure about today, but pre-pandemic you could find some extremely good deals if you were interested in assuming a lease. The lease is fixed, but oftentimes an incentive would be offered to get out of a lease or if the length/miles numbers were not in an accepted range, to effectively lower the rate. Also, you avoid the down payment.
RE: RE: I don't envy  
superspynyg : 6/12/2021 2:32 pm : link
In comment 15285344 Jim in Forest Hills said:
Quote:
In comment 15285331 pjcas18 said:


Quote:


you, I hate car shopping.

if you don't consider it a hassle then even better.

you could probably open a small business doing this on behalf of people as kind of a side job if you wanted to.




Not that this would make you change your philosophy but there are terrific car lease brokers around. You dont have to do anything. Many dont charge me a fee. Name a car, model and price. They try to get that for you or as close as possible. Mine delivers the car as well. Zero headache.


If they don’t charge you a fee, how do they make money?
RE: RE: RE: I don't envy  
Jim in Fairfax : 6/12/2021 2:57 pm : link
In comment 15285346 superspynyg said:
Quote:


If they don’t charge you a fee, how do they make money?

They charge the dealer a fee.

So in the end, they charge you a fee.
Buy...  
DannyDimes : 6/12/2021 3:13 pm : link
Buy used. I buy all of my cars with 10,000 - 15,000 miles on them. Reduces the cost be a ridiculous amount and you even get the new car smell :)
Pages: 1 2 | Show All |  Next>>
Back to the Corner