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My buddy bought a brand new Ferrari and sold it for 40K more than he paid for it. I got to share with him that he should have lost money because it is common knowledge!
Go shop 1-2 year old cars at Carmax and in most cases you can probably find a new leftover one CHEAPER!
So on paper you don't lose 1/3 to 1/2 and the interest rate on the new car will easily save you $1500 over the loan vs. buying used from Carmax. I'd bet even though both are no haggle dealerships the Ford dealer will work harder with you to unload that leftover 2017.
That's how I bought my pickup. The local dealer brokered in 100 of the previous year's inventory and listed them no haggle at 25% off the sticker price. They sold like hotcakes.
Most Americans don’t have $5K to spend on a car. More than half of Americans have less than $1K in their savings account
And if you do have more than $5k, some dealerships do not want do deal with you.
It's even worse if you're paying cash.
When I bought my car, one dealership didn't even want to talk OTD price. They would only talk in monthly payments.
When I pressed the issue, they gave me a price that was 2k OVER sticker and told me if I didn't like the price, I could go to another dealer... which I did.
My credit union has a "repo of the week" sale ongoing. They pick really nice cars to pass on to more responsible borrowers.
I'd be wary of not only what maintenance was missed on the vehicle (electrical issues tend to be expensive, and not addressed by owners who can't afford repairs, as they often cost in excess of their monthly payment), but also what might have been damaged on the vehicle in the recovery process.
If you have connections with a good shop, or are skilled yourself, these would have the potential to be excellent buys.
I'd be wary of not only what maintenance was missed on the vehicle (electrical issues tend to be expensive, and not addressed by owners who can't afford repairs, as they often cost in excess of their monthly payment), but also what might have been damaged on the vehicle in the recovery process.
If you have connections with a good shop, or are skilled yourself, these would have the potential to be excellent buys.
false on many accounts......
The article notes defaults in the first 2 years.......every car in America is offered with a 3 yr warranty or longer so why would someone not be able to afford a free (under warranty repair)?
Brand perception has a lot to do with resale value, as well as whether you have a 107 mile range, which sounds more than adequate for a round trip work commute, but no ICE to back you up. I make a round trip Raleigh - Salisbury almost every weekend. It would work for me 5 days a week...
I'm starting to realize the reason Chevy's Volt got such bad press is because no one wanted anyone to look in its direction because it was such a game changer. People who didn't even test drive the car would just say idiotic things like:
- "Government Motors!"
- "GM is losing money on every car!"
- "I hear they catch fire if you get in an accident!"
The general public just regurgitates what they see on the cover of Popular Mechanics standing in line at the grocery store, and on their favorite news channels.
You don't think manufacturers wouldn't try to spread "the good word" if they felt their market share was threatened? There are a few embarrassing attempts at a plug-in hybrid to mention:
2019 BMW i8 - base price $147,500 - all-electric range 18 miles
2015 Toyota Prius Plug-In hybrid - base price $29,990 - all-electric range 11 miles
Duke/Progress was offering $10k on the Leaf plus federal subsidies of $7500. I was pretty close to pulling the trigger but it still irked me they don't offer liquid cooling on their batteries.
I test drove a 2014 Volt and honestly it was a POS interior-wise even though I know they have a cult like following. Definitely very "GM-ish". I'm looking at maybe a 2017 as prices come down because you can add self driving using a $1,000 box from Comma.AI.
Chevy supposedly makes money on their newer generation Volts.
The i3 was a neat car, good value for what you get on the used market, but too go cart-ish for me.
Duke/Progress was offering $10k on the Leaf plus federal subsidies of $7500. I was pretty close to pulling the trigger but it still irked me they don't offer liquid cooling on their batteries.
I test drove a 2014 Volt and honestly it was a POS interior-wise even though I know they have a cult like following. Definitely very "GM-ish". I'm looking at maybe a 2017 as prices come down because you can add self driving using a $1,000 box from Comma.AI.
Chevy supposedly makes money on their newer generation Volts.
The i3 was a neat car, good value for what you get on the used market, but too go cart-ish for me.
A guy at my work charges his i3 next to my Volt. Looks fun to drive for maybe a day. To each his own.
I’ll own up to this one: GM couldn’t build an interior to save their life until they killed the Cobalt, LOL.
I once worked with such a bank (subprime lender.) The things you would hear would make your head spin. first thing they wanted was a 20% LTV so they greatly reduced the chances of getting burned repoing the car and re-selling it if they needed to. All cars went out with a remote-GPS shutoff, so they could find the car and disable the igntition on it. One guy had had a DUI or two. Even though he wasn't required by the state to have the interlock, the bank sure required it (couldn't have him cracking up the car drunk, insurance wouldn't pay.) 17% interest was the lowest I saw...most were above 20%. I talked with a guy that worked for the lender and he said that they factored a 30% repossession rate. Less was great but 30% is what they allocated when it came time to forecast, etc...
Jeez. I realize that a lot of people who can't afford a ~$7k car are unable to due to their financial habits/priorities, but there are also plenty of loan sharks who are eager to take advantage of them.
Really though, just because someone doesn't make a ton of money doesn't mean they have to be broke. Seems to me that too many people are trying to live a life far outside of what their budgets can provide. I realize that in most areas of the country, cars are essential to everyday life, but if you're spending all of your money on new assets that only lose value, there's a reason why you don't have any money left.
Jeez. I realize that a lot of people who can't afford a ~$7k car are unable to due to their financial habits/priorities, but there are also plenty of loan sharks who are eager to take advantage of them.
Really though, just because someone doesn't make a ton of money doesn't mean they have to be broke. Seems to me that too many people are trying to live a life far outside of what their budgets can provide. I realize that in most areas of the country, cars are essential to everyday life, but if you're spending all of your money on new assets that only lose value, there's a reason why you don't have any money left.
When I had my first hard job I was dead set on a brand new truck and I saved up the bare min 2000 dollar downpayment and went and got it. didn't care the payments were 500 something a months but I was 20 and thought I would have all this money to pay it off. little did I know. years later traded it in a little upside down then had the car I bought taken back by the dealer as a lemon so I had a decent downpayment on my current car This might be the first time I ever pay off a car. only took me 9 years to get it right. plan to run this thing for a while after I pay it off.
Issuers have been expanding credit offers back into Auto the past couple of years since the recession ended. I'm not sure why I forget the reason. But I've been getting auto loan offers in the mail every couple of months for the past 7 years. To my knowledge the average car price has increased YoY in the past 3-4 years but then again I am a New Yorker so what do I know.
I keep hearing these dealership ads on my favorite station here in NC. "As long as you make $200 a week, we can get you approved for a new car for only $150 down! And if you don't have $150, we'll let you borrow it. We do the deals other dealers won't even consider!" It's a new car dealership too, not even a repo lot.
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