Car buying tips
So I am looking for any tips or general stuff in regards to buying/leasing a vehicle. This is going to probably be a general topic thread.
This is for the future and not something totally right away, so with not getting into anything really specific, I am looking for a 1-3 year old vehicle with low km's,blah blah blah, could care less about color or fancy gadgets, as long as there is nothing wrong with it and it is reliable,cheap for insurance and not huge monthly payments.
But the focus here is what are your thoughts about leasing vs purchasing(I kinda want to purchase but then again I don't want huge monthly payments but I will not be driving the vehicle a great distance so I can drive the car after the term is over).
Any tips for negotiating a price?
How many months for a term is ideal?
I am pretty sure I saw on city tv on that auto show that don't go with cars that were used as rentals, is that right?( I saw a car or 2 already, but it was a daily rental so I am not sure now).
Just any other helpful info or experiences you guys have had.:)
Again I am taking this real slow and really be kinda tough so I don't get ripped off.
This is for the future and not something totally right away, so with not getting into anything really specific, I am looking for a 1-3 year old vehicle with low km's,blah blah blah, could care less about color or fancy gadgets, as long as there is nothing wrong with it and it is reliable,cheap for insurance and not huge monthly payments.
But the focus here is what are your thoughts about leasing vs purchasing(I kinda want to purchase but then again I don't want huge monthly payments but I will not be driving the vehicle a great distance so I can drive the car after the term is over).
Any tips for negotiating a price?
How many months for a term is ideal?
I am pretty sure I saw on city tv on that auto show that don't go with cars that were used as rentals, is that right?( I saw a car or 2 already, but it was a daily rental so I am not sure now).
Just any other helpful info or experiences you guys have had.:)
Again I am taking this real slow and really be kinda tough so I don't get ripped off.
Comments
Do not lease anything used. Buy it. Leasing is for new cars unless you want to get killed with the interest rate. If you're looking for leasing vs buying new...leasing will give you a lower monthly payment but you pay for longer if you plan on buying it out. If you don't plan on buying it out you have to worry about the mileage and condition. If you buy it out you don't. Leasing new is still a good idea if the payments to finance are too high for you. The term of the lease depends on the residual values/interest rates. For some companies a 3 year lease is good but mostly a 4 year is more popular (5 years is more rare and gives you a low payment but you're paying for the car for a long time). I'd avoid daily rentals unless you're dealing with a dealer you're familiar with.
As for negotiating the best price....find the car you want first. It is true that you'll get the best price if you're actually interested in buying the car. Once you know what you're looking for ie make and model, then talk to your salesperson about what they can do for you. Make sure you tell them that you're going to get prices from several sources. Make sure they spell out what the car costs with taxes AND give you the monthly payment. Make sure you get the payment with no downpayment so you can compare apples to apples. (once you have the best price you can decide to put money down if you like). Then call/visit a couple of other dealers and ask the same question. The markup on entry level cars is relatively low so you shouldn't see a large variation in price. Don't be surprised if the first deal is the best deal. Do respect the time of the salesperson. Enjoy. Buying a car should be fun. If it isn't take your business elsewhere. JMO
a) because if it breaks down the repairs may cost more than the car is worth, yet you still owe money on the car so you can't sell it either.
b) because by leasing the car you are paying for the privilege of driving a new car and letting the dealer absorb the depreciation when the lease is up. Yet after the lease is over, you have paid a pile of money and end up with nothing. A used car that you own at least has some trade in value on your next car.
Never take a loan that is longer than 3 years because the depreciation is so severe that if you total the car, you may find that you owe more on the car then what the insurance company pays you. Also if you buy a new car, make sure you get a replacement value insurance rider added.
I wish I had this advice when I was younger. I've been burned a few times with shitty cars and even shittier purchasing deals.
Phili, do your research. The Internet is awash with sites dedicated to used car reviews. I also found those "Lemon-aid" used car guidebooks helpful when looking at used cars. Definitely worth the $30 investment. For example when I was looking at Mustangs I almost bought an '06, but the guidebook noted that the sound systems in the +'07s where MP3 capable. For a guy that loves music and spends over an hour in the car everyday, that was an important fact. And viola! I have an '08.
Also find a salesperson you enjoy working with. If they are too forceful, just walk. A wise man once told me "Their job is to help you find the right car for you, not separate you from your money." OK it was -800over
Best of luck, please kept us up to date!
Oh, and NO SMARTCARS
DAMNED RIGHT !!!
Go for a Cube.
You're still young, like 25ish right?
You don't have a lot of cash available
You are not working YET so have no income or job security
You have low credit rating because of the above
Based on THOSE assumptions, do NOT buy off a lot! First of all, they won't look at you, and second, if they do, they'll charge you interest like a son of a bitch.
You want a one to two year old car?? Get that out of your head. You can't afford it. Get an older car with decent milage and drive the shit out of it until you have enough money available to move up, OR you have had a job long enough that you have some security and a bank will give you a decent rate.
And don't get those extended warranties on anything over 4 years old. Simply not worth it.
Again, that's my opinion based on certain assumptions I have of you personally. I don't know you whatsoever, so I may be way off base here...hell, you MIGHT have a fortune tucked away somewhere, I don't know. But based on my read, this is my pov.
Actually I am 33.:)
Like I said this is something that is down the road after I start employment.
Without going into specifics, my credit is actually better then the last time I got a car and let's just say there is a special relationship with a dealer/lender already.
Like I said maybe a 3 year old car, I am just concerned about a warranty as original warranty will be done.
lol, come on people, more Milo cube jokes!!!:D:D:D
haha, hof line, thanks Johnnie, I started this thread not just for me, but to maybe able provide some good info for others.:)
That and I was sure somebody here was in the industry but could not find the old thread where I saw that.
33? Level??
If you already have a relationship with a dealer, than you might be better off sticking with him for your next purchase. Repeat business is what they all crave.
As far as a warranty, imho it would be a waste of money for anything other than brand new, but its your call.
Ok thanks, ya last car I did not get the warranty and it was funny on the manager's face when I said no,lol, cause on my 1st car I got it and I did not even use it as it did not cover anything that actually broke down on the car.
I got microsoft works on my computer and it has a car loan "app" in it, so I can make sure I am not getting ripped off,lol I just have to put some numbers in it and it figures out what the payment is going to be and some other details, kinda neat!.
@ Johnnie= I will keep you up to date, but this may not even happen till next year spring time maybe, but defo a few months for sure.
What's wrong with Smart cars? I had one for a rental out in BC for a week and it was awesome!
Did you take your pants off first?;)
Only to seal the deal . . . don't tell his missus. Wait!!! She lurks here now doesn't she? Sorry cerb . . .
Seriously. If you are just getting back to employment, already have back bills to pay off. Buy a beater or take public transportation. Don't take on any more debt until your other debts are paid off. From what I remember on previous posts, theyre credit card debts at > prime rates!!!
Personally, Im a huge Honda fan. You can get a very cheap/reliable used Honda from pretty much any dealer. I had an integra that ran till 350,000km no problem. So they have lots of life. If I were you, Id be looking for a civic type of car, that fits in your price range that has less than 200,000 on it (obvi less is better, but I dunno your price range). I'd drive it into the ground, while increasing my credit and also saving $$. Then once you have had ur job for like two years, if you can still afford it, and feel secure with your financial situation, then splurge.
With that said, I recently broke down and bought a new (2010) civic earlier this year. We had enough of the sunfire overheating and breaking down. Not to mention the interest rates were next to nothing...But we have two of us to share the payment since we decided to carpool to kitchener. Not sure of your situation....
But most importantly, remember its a car. It probably is only needed to get you from point A to B. You have a full time job now, and still have to play pokerz on the side, so you dont have much time to drive the thing. So dont blow your budget on it!!!
Regarding negotiating the best price, I have no clue. I tried to do what I could, but it seemed to me that they really had pulled back on the deals at the time. I tried for more money on the sunfire trade in, with no luck. So I kept the car and sold it for double what they offered me. Got some other things (extended warranty and a Honda hockey jersey - LOL) thrown in to make up for it. Asked for the best price he could give us, but didnt get much of a deal. Maybe he could just read the excitement on the Mrs' face?
I would definitely buy used, 2 year range. Typically the car has depreciated about 50% by then. Bought a 1995 Grandam in 1997 for $14.5k (original cost $27k) with 8,000kms and a 2005 Chrysler 300 in 2007 with 14,000kms for $19k (original price 35k).
Better to just buy than lease. Key is financing, what will the bank charge you to borrow the money if you have no credit history?
I think they are pretty cool.
http://www.youtube.com/watch?v=voTYHtezv4I
lol honda fan!:laugh:
Honda's are too expensive for me, so they are out.:)
Well if I was a rich luckbox like you who ships mtt's every 2 days:D, I could just walk in and pay cash, but since your a big meanie and won't teach me how to ship mtt's that won't happen.:)
I have just had MUCH better experiences with Hondas than any other car manufacturer.... Probably just variance - LOL
I have been corrected
But again this is down the road, just getting all the info I can right now.
All you need for negotiating a new car: Car Cost Canada - Home Page
You can most likely get a few hundred over dealer cost since the manufactures give dealers other incentives for just sales anyway.
Lease an older car with normal interest payments: LeaseBusters.com - Car Lease Transfer Experts
Find a car that someone put a larger downpayment on and has good km's left.
I would strongly recommend getting a Honda Civic hatchback beater. You CAN afford one of those and I don't think you'll be disappointed. I bought one 11 years ago for a good price. Never had major problems other than stuff that just breaks down over time. I've carried all my paint gear in it for 8 years including HUGE sections of scaffolding that elicited great laughs at construction sites. I've driven the thing across Canada to where I'm at now and it's still kicking! I have literally beaten the shit out of that little Civic and it won't die.
As others have said don't tie yourself into the financing of a new car when you already have credit card debt. You run a serious risk of still having the debt and having someone repo-ing your car when you can't make payments.
Just my thoughts Philli. I hate to see it when people buy a brand new car with massive payments and end up with no life outside of the fact they have a nice set of wheels.
PS. Honda's have the best seats on the planet. I've camped in the passenger seat of my wee little civic VERY comfortably and would do so again in a heartbeat.
I am already planning out a budget and doing calculations so I know what is the comfort zone for payments, I am already going to pay off the credit card 1st and some other things have to happen before any of getting a vehicle is finalized.
1. I went to every dealer (well, one dealer of each maker), looked at the selection that was around and above my price range, and told the salesperson what I needed and wanted. They showed me options, trimlines etc., I sat in each, didn't test drive at this point. Got quotes for just about every one for flat out cash purchase, price of options, and available financing rates (leasing was out of the question for me, too many clicks for work).
2. Whittled down the selection to 8 or 10 based on personal preference, perceived value and (less weight, but still important) customer service at the dealership (sidenote: kudos to the Ford guy, only one to actually follow up with a phone call like he said he would. Big negative kudos to the bitch at Toyota, ended up telling her to f'koff and shove the quote up her ass).
3. Started solidly defining my budget, while at the same time perusing the used car selection online and in the papers. Used Consumer Reports' new and used car buying guides for highs and lows of certain model years. Eliminated a few choices here between "I just can't afford this one new or used" and "a new X is just as good as a new Y for $5k less".
4. Down to about 4 models, started looking at insurance. Went to kanetix.ca, started inputting everything I was looking at for ballpark figures. With that, depreciation and purchase price, could estimate a cost over 5 years and eliminated a couple of the worse options.
5. Test drove each new model, some used I found locally, kept searching for the best match online, was lucky enough to find one in Cambridge after about 3 days.
So, it took a while, I had a lot of numbers going through my head at times, and I probably pissed more than one salesperson off, but I ended up very happy with my purchase.
Nice! That's pretty much what I will be doing.:)