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Is this a bad time to buy a new car?

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  • Is this a bad time to buy a new car?

    Hello,

    I am sure there are some smart money people on this forum:

    I have been considering the purchase of a new car for a while now. The time has come to pull the trigger or miss out, as the current generation is ending production, with a new generation coming soon.

    I don't want the new generation model, I like the current one much better. It's not a super-expensive car, and it is definitely one that I really want and expect to keep long-term.

    I can get financing, no problem. And I can afford the payment.

    But with the economic situation here in the US, I am afraid we might end up in a true depression with rationed gasoline and all of that, at some point.

    From those of you who know, what do you think?

    Thank you,
    Motorsport 16v

  • #2
    What vehicle are you looking at? Something like a SUV, family sedan, coupe...?

    Dealers will generally offer discounts on their remaining stock to clear out inventory
    before they get their new cars in. Some companies are also offer employee-like
    discounts as well.

    In my opinion, stay away from the gas guzzlers like trucks and SUVs. They will go
    through gas quick and have a bad resale value in today's market. A lot of dealers
    no longer offer lease options on trucks and SUVs because when they are returned
    after a lease, they will be stuck with them and loose out in the long run.

    Comment


    • #3
      Originally posted by chutrain View Post
      What vehicle are you looking at? Something like a SUV, family sedan, coupe...?

      Dealers will generally offer discounts on their remaining stock to clear out inventory
      before they get their new cars in. Some companies are also offer employee-like
      discounts as well.

      In my opinion, stay away from the gas guzzlers like trucks and SUVs. They will go
      through gas quick and have a bad resale value in today's market. A lot of dealers
      no longer offer lease options on trucks and SUVs because when they are returned
      after a lease, they will be stuck with them and loose out in the long run.
      A 4-door VW Rabbit, not a gas guzzler, pretty practical. I just saw an article on the news about car sales being down some enormous percentage in September, and expected to be even further down in October. So I'm worried that maybe I'm making a bad decision with the economy in the state it's in.
      Motorsport 16v

      Comment


      • #4
        If you can afford it and not be worried about it, I think right now is a great time to buy. Dealers (like most people) are hurting for business. Should be able to get a great deal. Financing may be a little difficult.

        Just my un-educated opinion.
        Ryan M
        88 E30 M3 Alpineweiss
        07 F350 Diesel Crew Cab
        05 Outback XT

        Comment


        • #5
          Originally posted by Ryan M View Post
          If you can afford it and not be worried about it, I think right now is a great time to buy.
          Agreed. If you know you can afford it, why would you worry about it???

          Gas rationing? What propaganda have you been reading?
          Bottom line, you're going to be buying gas for your current car OR the new car you replace it with... so what is the difference?

          If you're stretching your dollars to make the payments/afford the true ownership costs of the car, then yes... you're making a bad decision, I don't care what state the econ. is in.
          Chris L.

          Spray paint and tire shine doesn't equate to a "restoration!"

          Comment


          • #6
            If you are secure with your job and comfortable with the cost, go ahead and get it. You should be able to get a screaming deal. If your job is potentially at risk due to the downturn in economy over the next year or so you may want to hold off.
            Just my .02
            I got my new MINI 2 months ago, very happy.
            Cheers,
            John
            88M3 henna


            73T100C
            97 540\6-Gone
            2008 MINI Clubman S

            Comment


            • #7
              I heard.............. if you can wait it out.............. wait it out until 2009 as things continue to get worse. You will be able to bargin and haggle a LOT more as things get desperate. :evil:

              Comment


              • #8
                My Grandma told me something her parents (german farmers) told her when she was growing up. "If you don't have the money you shouldn't buy it." What they where refering to is borrowing money to get something. I have shaped my life around that and owe nothing except my mortgage. I know this doesn't work for everyone (just look at the cars on the road, very few people actually own theirs). It is the most conservative way to use money. If we fall into a depression the last thing you want to do is pay a car payment. Just my two cents...

                -Kelly

                Comment


                • #9
                  Originally posted by pltfn View Post
                  My Grandma told me something her parents (german farmers) told her when she was growing up. "If you don't have the money you shouldn't buy it." What they where refering to is borrowing money to get something. I have shaped my life around that and owe nothing except my mortgage. I know this doesn't work for everyone (just look at the cars on the road, very few people actually own theirs). It is the most conservative way to use money. If we fall into a depression the last thing you want to do is pay a car payment. Just my two cents...

                  -Kelly
                  That is what I got....live within my means. just my mortgage to take care of...to be paid off in 10 yrs. My credit bills are within site of being paid off. The rest? Insurance, utilities, food, daily expenses, house & car maintenance just the regular expenses..and at the end, nothing left. Like same, my .02 worth...which ain't much nowadays.
                  Lawrence

                  BMW CCA San Diego Chapter #192742
                  '90 M3 AWII - Garage Queen
                  '09 540i Touring 6 Spd - Son's DD
                  '03 530i 5 Spd - SO's DD
                  '03 Nissan Frontier Crew Cab - My DD & Range truck
                  '05 330i ZHP 6 Spd - Alternate DD
                  '15 Honda Pilot - Daughter's & Grandkids Hauler

                  Comment


                  • #10
                    I have an 06 GTI and I couldn't be happier. The price on the rabbits is very reasonable and VW resale is extremely good. It was just rated #1. I don't think you will have a problem in getting rid of it should the need arise. Interest rates on them are also low, so the idea that you shouldn't finanace isn't as strong as an arguement here. Do it.

                    Comment


                    • #11
                      What industry are you in?



                      - Tire is the other control arm bushing.

                      zhpregistry.net

                      Comment


                      • #12
                        Originally posted by Das Boots View Post
                        That is what I got....live within my means. just my mortgage to take care of...to be paid off in 10 yrs. My credit bills are within site of being paid off. The rest? Insurance, utilities, food, daily expenses, house & car maintenance just the regular expenses..and at the end, nothing left. Like same, my .02 worth...which ain't much nowadays.
                        Same here, we occasionally accrue some credit card debt, but pay it off every month or so, and have not transferred everything that is an expected recurring charge to the debit card yet. Have a little left on the minivan, 3 years ahead of schedule and once that is done no car debt. Only the mortgage and equity line after that and we should be able to take a sizeable chunk out of that this year. Check out www.daveramsey.com good stuff there.

                        I strongly advocate buying cars with cash only as they are usually a quickly depreciating asset, except for our beloved E30 M3 which seems to go up in price every year. Guess I need to go make another "investment".

                        Mike

                        Comment


                        • #13
                          Originally posted by empty View Post
                          I strongly advocate buying cars with cash only as they are usually a quickly depreciating asset
                          Most financially successful people would claim otherwise. I know those are the people now that have most to loose but still. General wisdom says pay for appreciating items with cash and finance or lease depreciating ones.

                          I think the key component in all this that is often missed is your net worth. If you have 20K of cash and you want a 20K car. You can a) use all the money and own the car or b) invest the money and finance the car. In case of an emergency with option a) you have nothing but a car, whos value is questionable especially in bad economic times or b) have 20K of cash and a monthly installment, this is your best bet of survival through tough times. In the worst case you can let the bank repossess the car, in which case you're risking your credit worthiness, but with the way things look today I don't think people are going to get too punished with their bad credits when things get back to normal.

                          I find the best route to take for a car used daily is a lease. It's the most predictable and secured way to streamline the cost of ownership. In the worst case scenario you can let the car go even at an expense of hurting your credit history.



                          - Tire is the other control arm bushing.

                          zhpregistry.net

                          Comment


                          • #14
                            Are these the same financially successful folks that are now having their houses foreclosed on? Because all the financially successful folks that I know pay cash for everything, including their houses. The last one was $6.8 million and the one before that was $5.6 million.

                            Different strokes for different folks I guess. I don't want this to quickly turn into a discussion of how to live your life. Presumably, we are all adults here so you makes your choices and you live with them. Nor do I want to address why I do not believe in nearly everything you wrote above. If it works for you fine. But I have run the numbers and considered all the many different factors and variables. For me, financing and especially leasing is a quick path to more money out of my pocket that the asset is worth (housing excepted) or is something I cannot afford at that time. If you use financing to live above your means you are flirting with the potential that a downturn or incident might wipe you out if you cannot make your payments. Whereas if you owned everything outright and the same situation still occurred, you wouldn't owe anyone anything and you could persevere, rather than being distracted by the bill collectors and the repo man.

                            Best of luck to you,
                            Mike

                            Comment


                            • #15
                              difference of opinion is what makes this site such a cool place to hang out, but we can all agree - no cash = no food.

                              I am not advocating buying things you cannot afford. Just because you finance or lease something it does not automatically mean you cannot afford it. Sure I would agree that in many cases people finance things they cannot afford but they are in denial.



                              - Tire is the other control arm bushing.

                              zhpregistry.net

                              Comment

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