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I keep hearing about how bad the car industry is doing right now - so I'm wondering if it would be a good time to buy? And if so - what kind of deals can you get?
We are in need of a new car - looking mainly at crossovers (maybe Ford Edge or Volvo V50) - but really would like to find a good deal. We have cash to put down and could even pay cash for the total if it would get us a better deal.
Any advice would be much appreciated - thanks!
If you NEED a car and have decent cash reserves and job security etc. then YES, it's probably the best time in your life to buy a car.
Over the next few years there will be major consolidation in dealerships, reduced production (supply) to meet demand etc etc. so it's not likely to get better.
I have heard of insane deals, in fact the new cars in particular may actually be the best deal depending on particulars.
IMO, it's never a good time to buy a new car. A newer car, yes, a new car, no. You lose to much money the second you sign your name to that title. I just can't bring myself to do that again. But that's just me. My parents won't buy a used car ever. Especially my mother. She won't even drive one for more than 2 or 3 years before my father has to go get her another new one. I have a friend the same way.
However, if you have the money to pay cash for it and you want a new car and you don't mind taking the hit, absolutely. Someone has to buy them new so I can come along and scoop them up for a more reasonable price in a few years, right?
Meant to add, if you're buying new, make sure you think ahead. If the automotive industry doesn't get it's nice little buy out like Wall Street and they go under, what good will the warranty do you? Make sure you look into that.
Because how does buying a foreign made car help the US economy? We may get some skim off the top through taxes or import fees and you may help that dock worker keep his job because he gets to unload a car off the boat but buying something made here does a lot more for our economy.
You want to buy a BMW from Charlotte, a Mercedes from Tuscaloosa, or a made in the USA Toyota that still makes me happy....because at least you're keeping the guys on the lines working. They keep their mortgages paid. They get to buy christmas gifts and keep pumping money into the economy.
Buy something from Europe, Japan, wherever and you are supporting THEIR economy and THEIR workers.
Thanks for all the help! So if we were looking at a car that had a sticker price of say $30k - how much lower would you offer? (I've never had to haggle for a car before so I don't know the drill!)
Find out what the invoice price of the vehicle is, then subtract incentives ("cash back") , if any. Research on edmunds.com, which is fairly accurate for the new vehicle pricing and incentives.
Then, move down from the (invoice - incentives) figure, keeping in mind that there are hidden discounts from the manufacturer below invoice price. You probably know all of this.
Edmunds also has an interesting forum about prices paid and buying experiences, which collects a lot of "real world" prices that people have paid recently. Also remember, the dealer may have already applied certain dealer installed accessories, but those are also negotiable, as are any extended warranties, etc. You can call other Volvo dealers (for example) to see if they'll sell you an extended warranty on a Volvo purchased elsewhere, which they probably will. Chances are you'll find it for a lot cheaper elsewhere, if you're buying one.
Personally, at 0%, I'd finance the maximum amount. After all, if your money is in a place that earns more than, let's say, your mattress, you'll make money borrowing someone else's. But that's just me. I purchased all but one car in my life with cash, so I'm not an auto finance or lease expert. But 0% or 1.9% (the prevailing low rates from different mfrs) is cheap to borrow money. Loans are readily available with good credit. Assuming you've amassed a new car's worth in cash, your credit will almost certainly qualify you to borrow at the lowest rate.
Given the economic circumstances, it can't hurt to preserve cash and borrow someone else's money for free. Just my opinion, of course. Especially since you can be making money with your cash in the meantime.
Because how does buying a foreign made car help the US economy? We may get some skim off the top through taxes or import fees and you may help that dock worker keep his job because he gets to unload a car off the boat but buying something made here does a lot more for our economy.
You want to buy a BMW from Charlotte, a Mercedes from Tuscaloosa, or a made in the USA Toyota that still makes me happy....because at least you're keeping the guys on the lines working. They keep their mortgages paid. They get to buy christmas gifts and keep pumping money into the economy.
Buy something from Europe, Japan, wherever and you are supporting THEIR economy and THEIR workers.
Just my opinion.
did you know that many domestic car companies have stakes in japanese car companies, send profits to those countries and even hold alot of their manufacturing overseas. For an example you'd be suprised how many jobs are created in Mexico by Ford Motor Co.
Just a thought, it would be hard to find a car out there that was made 100% in the US these days. Most japanese manufacturers are about as American if not more so than some cars that come off the assembly line at domestic car company factories.
I could also tell you a little bit about Henry Ford's history with Nazi germany, but thats another story.
But in the 60s you would be right, thats when buying American actually made a big difference. Alot of Japanese companies started to sell in the states in the 50s and 60s have made major progress keeping profits and jobs in America, and it won't be long before they become more American than the big 3 domestic companies.
IMO, it's never a good time to buy a new car. A newer car, yes, a new car, no. You lose to much money the second you sign your name to that title. I just can't bring myself to do that again. But that's just me. My parents won't buy a used car ever. Especially my mother. She won't even drive one for more than 2 or 3 years before my father has to go get her another new one. I have a friend the same way.
However, if you have the money to pay cash for it and you want a new car and you don't mind taking the hit, absolutely. Someone has to buy them new so I can come along and scoop them up for a more reasonable price in a few years, right?
Meant to add, if you're buying new, make sure you think ahead. If the automotive industry doesn't get it's nice little buy out like Wall Street and they go under, what good will the warranty do you? Make sure you look into that.
Mrs1885, you've offered some good advice. Buying a "gently-used" late model car always made sense to us. Let someone else pay the depreciation! We just bought the first new car we've owned since 1978. Since we generally keep cars until they are worn out (10+years), we decided to spring for a new Ford F150. We like the way it looks and we'll be keeping it a good 10 years, we assume. So we weren't worried about the depreciation we'll lose in the first few years of ownership.
Everyone is talking about haggling for a good price on a car, but is wise to negotiate from the affordable monthly payment end? And what if you still owe on your trade-in? I'm new at this.
Everyone is talking about haggling for a good price on a car, but is wise to negotiate from the affordable monthly payment end? And what if you still owe on your trade-in? I'm new at this.
If you are financing, pick a payment and term you are comfortable with. If you want a $400 payment, that's about a $20k purchase. Don't go more than 60 months on a new car, 48 on a used.
Interest rates right now are around 6% for very good credit on new cars, around 8.5% on used cars.
If you want to lease, it's all about the cash down and the payment.
If you are writing a check, it's all about selling price.
For your trade, KBB is a decent guide. It won't be absolute, but a rough idea. If you still owe n the trade, and it's worth more, the difference counts as cash down. If it's worth less, they can roll it in but I advise covering the difference.
If you have good credit the dealers are offering very low to 0% for 60 months on new cars now. They also are offering evry good deals on 2008 vehicles as this is late for them to have so many on the lot. Try to get lower than the invoice pirce for sure and it bot uncomon to get 2000 below what edmonds.com shpws as invoice now. Do not be affaid to walk if they are too high. most will now immediate go lower and all I have seen will be contcting you within the week with a better offer.If you don't have good crdit don't expect the manufacturers interest offer tho as they have really cut back on whothey will finance. Lst I knew the "well qauilfied buyers" in the comercial was 720 and above. I personally woukld neber lease a vehicle for personal use but buy a new used vehicle instead.Also if your present vehicle is in good sahpe sell it ypoureslf instead of trading in. You 'll come out ahead even if you have to rent a vehicle for a week while looking for a new one.
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