Is it economical to buy new?

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If I get financing threw Chase the dealer gets a check so they don't care either way if its from me or Chase.

So no you don't pay more for low interest rate financing that's simply factually incorrect.
 
As I posted earlier, I got my cars with 0% financing so our money stayed invested where it was. I have since retired and have one car paid off, 2 months to go on the second and my money is still earning interest. My wife is an accountant and she said if someone is going to give us free money so we can leave ours earning, it's an easy decision to make. I agree with the statement that you should only buy what you can afford for sure, but I also believe there are some conditions where financing is beneficial.
 
Originally Posted By: johnachak
As I posted earlier, I got my cars with 0% financing so our money stayed invested where it was. I have since retired and have one car paid off, 2 months to go on the second and my money is still earning interest. My wife is an accountant and she said if someone is going to give us free money so we can leave ours earning, it's an easy decision to make. I agree with the statement that you should only buy what you can afford for sure, but I also believe there are some conditions where financing is beneficial.


Compound interest. Never take money out of an account earning compound interest at 7-8% or whatever, to buy something that you could get a loan for at 0-4%. This of course considering that your cash flow would allow for making the payments. Also true that "afford" doesn't have to equal "pay cash."
 
On 0% financing many times they offer an discount in lieu of a loan from them. So you did pay likely for 0%.
 
Originally Posted By: rjundi
On 0% financing many times they offer an discount in lieu of a loan from them. So you did pay likely for 0%.


Sometimes this is the case and sometimes it isn't.
The educated buyer already knows this before walking into the lion's den.
 
Originally Posted By: rjundi
On 0% financing many times they offer an discount in lieu of a loan from them. So you did pay likely for 0%.



There really is no such animal as 0% financing.

It is incumbent upon the manufacturer in question to decide whether or not they will buy down a finance rate (by themselves or in conjunction with the dealer) or offer a cash incentive in lieu of 0% to neutralize it as a choice. Sometimes they will offer a mix of both. Sometimes manufacturers just offer it as a take it or leave it move, and deal with it by building it in the price or do so as a business or promotional cost (such as Honda did in Dec 2012 on leftover 2012's.)

$500 probably doesn't provide much motivation. $3,500 presents an interesting conundrum.

However, if one has procured the vehicle at the lowest possible cost, and 1% or less is on the table, why not take it?
 
Originally Posted By: 7055
I want to get a crossover SUV but I'm not sure if I'll buy used or new.


Try going for last years model leftovers in new inventory. I got 25% off on my stang by doing that. It's a new car at almost used pricing.

You know all the dirt in there is your dirt. Know what I mean? That was important to the wife.
 
Originally Posted By: turtlevette
Originally Posted By: 7055
I want to get a crossover SUV but I'm not sure if I'll buy used or new.


Try going for last years model leftovers in new inventory. I got 25% off on my stang by doing that. It's a new car at almost used pricing.



When in the year did you buy yours? We are looking at the same type of situation and are in no hurry. Plus there is a refresh (not total redesign) coming on the vehicle for 2015 model year for what we're interested in (Explorer).
 
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.
 
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Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?
 
Originally Posted By: 7055
Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?

Off of MSRP of a 2014, maybe 25% or more. Depends what the manufacturer is offering as incentives right now. All the crazy low prices for the Dodge and RAM vehicles are from manufacturer rebates off of MSRP, so you aren't going to see the rebates get much bigger, but the dealer still might be more interested in selling for less at the end of the model year, but the $19.5k minivan isn't going to drop too much lower. A 2014 $40k GM half ton probably will get alot cheaper in the fall since RAM is selling the same thing for $26-28k right now. Plus on a $40k vehicle the dealers do have some room to move, even if GM is giving you $10k in rebates.
For example, our Tracker had a MSRP of $23k, but with all the rebates and programs offered, we were out the door including 13% sales tax for $17k.
 
Originally Posted By: IndyIan
Originally Posted By: 7055
Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?

Off of MSRP of a 2014, maybe 25% or more. Depends what the manufacturer is offering as incentives right now. All the crazy low prices for the Dodge and RAM vehicles are from manufacturer rebates off of MSRP, so you aren't going to see the rebates get much bigger, but the dealer still might be more interested in selling for less at the end of the model year, but the $19.5k minivan isn't going to drop too much lower. A 2014 $40k GM half ton probably will get alot cheaper in the fall since RAM is selling the same thing for $26-28k right now. Plus on a $40k vehicle the dealers do have some room to move, even if GM is giving you $10k in rebates.
For example, our Tracker had a MSRP of $23k, but with all the rebates and programs offered, we were out the door including 13% sales tax for $17k.


I had no idea they could discount them that much, that's crazy. I was thinking like a grand tops.

How much profit are the dealerships making on these cars?
 
Originally Posted By: 7055
Originally Posted By: IndyIan
Originally Posted By: 7055
Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?

Off of MSRP of a 2014, maybe 25% or more. Depends what the manufacturer is offering as incentives right now. All the crazy low prices for the Dodge and RAM vehicles are from manufacturer rebates off of MSRP, so you aren't going to see the rebates get much bigger, but the dealer still might be more interested in selling for less at the end of the model year, but the $19.5k minivan isn't going to drop too much lower. A 2014 $40k GM half ton probably will get alot cheaper in the fall since RAM is selling the same thing for $26-28k right now. Plus on a $40k vehicle the dealers do have some room to move, even if GM is giving you $10k in rebates.
For example, our Tracker had a MSRP of $23k, but with all the rebates and programs offered, we were out the door including 13% sales tax for $17k.


I had no idea they could discount them that much, that's crazy. I was thinking like a grand tops.

How much profit are the dealerships making on these cars?


American vehicles and trucks seem to magically get discounted thousands under MSRP. Seems to me the same as raising the prices before a 30% off sale. Leads me to believe they are simply overpriced to begin with. If they were TRULY worth MSRP, then the dealer/manufacturer wouldn't have to discount them as they would sell at full sticker.


And for the OP - you can make the numbers up anyway you'd like to skew it. New can be a better value than used, all depending on your priorities. Figure out your price range and vehicle, then find the best new/used deal on it. Or get lectured on BITOG
laugh.gif
 
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Originally Posted By: surfstar

American vehicles and trucks seem to magically get discounted thousands under MSRP. Seems to me the same as raising the prices before a 30% off sale. Leads me to believe they are simply overpriced to begin with. If they were TRULY worth MSRP, then the dealer/manufacturer wouldn't have to discount them as they would sell at full sticker.


Many lower volume cars do indeed command full sticker or even a premium over sticker. When I bought my SRT8 I was offered 5 grand cash to allow someone else to buy it. Many fools paid 10 grand over sticker!

New models, low volume, high performance, hard to get, all these command more moolah. Simple demand. The only models that get huge discounts are trucks. I buy a few every other year or so and the 3500 one ton vans are discounted very little as they are low volume pieces.

I have bought brand new pickups for nearly 40% off sticker price. All depends on your timing...
 
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Originally Posted By: 7055
Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?


Some examples over the years:

The Accord in my signature: Sticker 24,070. Price: 19,300 (purchased 12/1/12)
Included in deal: Spoiler, Mudflaps, Side moldings (they were already on car.)
The Mustang in my signature: Sticker: 31,170. Price: 24,900. (purchased mid-September 2008)
What I feel is my personal best: 2004 Ranger Supercab: Sticker 23,000. Price 13,700. (purchased March 2005.) They threw a bedliner in when I acted like I was heading for the door.

Prices do not include tax/title. They include all rebates + factory incentives + dealer incentives. If they have it after the new models come out, they will throw everything and anything in their arsenal to move it IMO.
 
Economy at the time really has a say. When I bought my Corolla, gas was $$$, small used fuel efficient cars were selling like hotcakes and it was a sellers paradise, a 3-4 year old Corolla was $2-3K within new. It was reasonable to buy new. Fast forward to today, it could go either way.
 
Originally Posted By: dishdude
At one time people were paying $5k-$10k over sticker for PT Cruisers.
crackmeup2.gif



It is so true.

It happens all the time with odd models and special editions. There are some really funny folks who will spend a lot more than they probably should to to get a car they really want.
 
Originally Posted By: 7055
Originally Posted By: hattaresguy
I echo the above statement. I'm waiting until the 2015 F150's and Silverado's come out to even start looking for a late production 14.

If you have a choice the best time to buy a new vehicle is after Thanksgiving, that's when all the pressure is on to meet the end of the year sales goals.


How much of a discount can you get by doing that?


Right now they are $7k-$8k off I want at least $10k.

The truck I want stickers for around $43k I want to pay $32k, or less. Right now I can get it for $35k-$37k.

GM is going to want to hit sales volume numbers to keep up with Ford and Dodge, so they will discount heavily.
 
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Is GM coming out with redesigned pickups for 2015 model year? I know Ford is. My dad might be looking for a new truck in the next year or less.

Just for the heck of it I checked out a 2014 Highlander today. They are expensive and actually not that nice. Materials and technology felt cheap. The third row MIGHT fit a 4 year old. Incredibly small. And pricey for what you get.

Still down to the Explorer and CX-9 I think. I do like the Durango (except for the cheap feeling cloth seats - I'm sure the leather are better), but Dodge reliability and depreciation make me very hesitant. Will almost for sure wait until the redesigned 2015s are out in both to get the best possible deal on a 2014.
 
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