NexactlyBR - seeking advice on a new vehicle purchase

ichamommy · May 2014

Yep, totally AW-worthy but I'm posting a thread on this.

So basically for the last year-ish I've been in the market for a new vehicle. I honestly thought I'd have something by now but due to the pending divorce and impending daycare costs, I haven't pulled the trigger yet. I was originally looking at a GMC Terrain or Acadia, but then both my mom and SIL bought Acadia's in the last 6 mos. I like them but I'm not a huge fan of GMC engines that sound like/drive like a truck.

I currently drive an 04 mits Endeavor but it has quite a bit that needs fixed on it, namely 2 of 4 windows don't work, the rear bearings need replaced at some point (SOON) and, the big issue, no A/C, which I repaired at the beginning of the summer last year and then something else went out on it.

So here's my questions (this post isn't meant to annoy anyone, just bring a bit of a discussion to a waning BMB)....

1) would you buy new to have longer terms (possible 60 or 72 months) and pay the "brand new" price to drive it off the lot new OR buy a few years old used with 20-30k miles on it to save the NIB expenses?

2) would you buy now to avoid the summer heat or wait until after divorce is finalized and daycare expenses start?

3) must have features on a newer model vehicle? I know I was a mp3 plug in thing and probably a rear view camera for safety but what else?

4) finance through local banks for dealership financing? Does anyone have experience with 0% financing offers?

TIA lovely ladies! I promise, no more donut pictures until I bring enough for everyone!

BP607 · May 2014

What is your budget? That will determine vehicle recommendations

1) Lots of dealerships will still give you longer terms on used - we have either 72 or 75 months on ours and we were car shopping this weekend and was offered 75 months

2) We are currently car shopping and I am wanting to get through with it ASAP, but if you have expenses you think are going to impact your payment budget, you may want to wait. You can start looking around online to see what kind of vehicles are in your price range

3)We are most likely going to "downgrade" as far as features go. We are currently in a Ford Escape SEL with EcoBoost and looking at a KIA Sorento that has cloth seats but still good features but is a bigger vehicle with AWD (we have a lot of snow and I will be toting 2 kids to daycare everyday)

4)They usually give you a list of banks and their interest rates and give you the best one.

katnipeverclean · May 2014

tundrabunny said:

Can't answer all of your questions, but I definitely wouldn't buy a new car. You can usually get a decent used car that's 3-4 years old with relatively low mileage for a lot cheaper. I got my 2004 car in 2008 from a used car dealer. It's 2014 now and I've only had to have brake work done and tires. I paid it off for less than $200/month in 4 years. It's a Ford Taurus; that might not be what you're looking for but it has served me well.

I don't have any experience with 0% financing, but I would look into seeing if you can get an auto loan through a local credit union. They usually have more favorable terms than a regular bank. Auto dealers are probably going to provide you the worst overall deal for financing. But if you have horrible credit and can't get financed through a credit union or bank, they may be your only option.

When you go to the dealer, don't talk to them about how much per month you can afford. Pick a number of how much you can afford total ($10K, $15K, etc). If you tell them per month how much you can afford then they're going to try and sell you a more expensive car with longer loan terms (6 or 7 years rather than 4 or 5 years of payments).

I would really try to get financing lined up before you ever step foot on a car lot. When you're at their mercy for financing, or do not have a really good idea of how much total you're willing to pay and what kind of interest rate you're eligible for before you go in, you're more likely to get screwed.

Read reviews online of cars, consider getting a one-month subscription to Consumer Reports, and have a pretty decent idea of what makes and models of cars you're interested in. The more you research and know before you start looking, the more likely you are to get a reliable car for a decent price.

This is very very sound advice.

chrinikki1 · May 2014

The SS option: buy new from a place where you have a connection/ hook-up. Best of both worlds: full warranty, the best lease/purchase terms, no down payment option, rebates, 0% financing (depending on credit), and no hassle maintenance plans! All while getting cost on the vehicle and no bull shit add-on fees.

klynne924 · May 2014

DH works in the car business and I have some experience in it as well. Check with your local banks/credit union to see what their rates are. Most dealers will bump you so they can get money from whoever the financing is done through if you don't have your own financing. It helps to know where your credit stands if you decide to go with dealership financing. I would not buy new because most banks will finance their certified pre-owned cars at a slightly higher rate than they will for a new car, sometimes they will even do the same rate. Since we've been together (7 1/2 years) we've bought 12 vehicles and only one was new. We were able to finance at 0% because of the rate promotion at the time. We live in south Georgia, so our summers get extremely hot and there is no way I could go without A/C especially with a newborn. My must haves are rear air, rear DVD system, back-up camera, and heated/cooled seats (at least heated) since I have leather. I prefer the sync systems most vehicles have over the mp3. If you already have an idea of your daycare expense and budget for car payment, I say go for it. Just do your research of current rates, both through local banks/CUs and dealership financing, and also what vehicles you are interested with the specific options are going for. Shop around on Autotrader and cars.com before going in, as well as the dealer's website because some will have a lower internet price than a walk in customer would get. If you are trusting enough, most dealerships will deliver the vehicle to you if you find one a few hours away if you absolutely have your heart set on it, for a small fee (a few hundred depending on distance and this can be financed in). My current vehicle is a 2010 with 115,000 miles that we financed througj a local CU for 6 years. With DH in the car business and us constantly trading vehicles, the length wasn't an issue to get us the payment and vehicles options we wanted. One perk to having your own financing is they can't bump you on products and payments once you get in finance.

Sorry if this was more than you asked for! Good luck car shopping!

ichamommy · May 2014

klynne924 said:
DH works in the car business and I have some experience in it as well. Check with your local banks/credit union to see what their rates are. Most dealers will bump you so they can get money from whoever the financing is done through if you don't have your own financing. It helps to know where your credit stands if you decide to go with dealership financing. I would not buy new because most banks will finance their certified pre-owned cars at a slightly higher rate than they will for a new car, sometimes they will even do the same rate. Since we've been together (7 1/2 years) we've bought 12 vehicles and only one was new. We were able to finance at 0% because of the rate promotion at the time. We live in south Georgia, so our summers get extremely hot and there is no way I could go without A/C especially with a newborn. My must haves are rear air, rear DVD system, back-up camera, and heated/cooled seats (at least heated) since I have leather. I prefer the sync systems most vehicles have over the mp3. If you already have an idea of your daycare expense and budget for car payment, I say go for it. Just do your research of current rates, both through local banks/CUs and dealership financing, and also what vehicles you are interested with the specific options are going for. Shop around on Autotrader and cars.com before going in, as well as the dealer's website because some will have a lower internet price than a walk in customer would get. If you are trusting enough, most dealerships will deliver the vehicle to you if you find one a few hours away if you absolutely have your heart set on it, for a small fee (a few hundred depending on distance and this can be financed in). My current vehicle is a 2010 with 115,000 miles that we financed througj a local CU for 6 years. With DH in the car business and us constantly trading vehicles, the length wasn't an issue to get us the payment and vehicles options we wanted. One perk to having your own financing is they can't bump you on products and payments once you get in finance.

Sorry if this was more than you asked for! Good luck car shopping!

What do you mean by "bump you"?

klynne924 · May 2014

Adding maintenance, warranty, paint protection. Finance manager then gets paid on these and any additional rate increase if you allow this to be added on after you've got a set payment from the sales staff. These products aren't necessarily a bad thing, but if you weren't expecting them to be in your payment it could surprise you.

coybig · May 2014

check out truecar.com It's free and saves all the hassle of haggling the price of the car.

we used it in September and it was the most pain free step of the process. It showed me what the average price of the car I wanted was going for in the area, gave me a guaranteed price, and showed me 3 dealers within 100 miles that would honor it. I was shopping at the closest Subaru dealer to our place even though they weren't on the list - when it came time to pull the trigger, he started to negotiate terms, and I showed him my truecar info. he went to the manager and came back with the okay, but said on the paperwork the price would be $500 more but he would give me an extra $500 for my truck because technically they couldn't write the price that low since they weren't reimbursed for the truecar promotions.

in the end, we paid $2,770 below sticker for a 2014 Outback. According to truecar, it was $1,050 lower than the average final price in our area for the same model and features.

cakebatter27 · May 2014

If I wasn't buying a new car I'd get a car fax report. We only buy new with 0% financing through the dealership. DH and I both have outstanding credit though so that helps.

I'd wait until after the divorce and you see exactly how much daycare costs.

My must haves are air conditioning, sun roof, power window and locks and fog lights. I could care less about a back up cam (we have sedans).

Also I found this out the hard way but I always check how deep the cup holders are. My first civic had tiny shallow holders and I can't tell you how many drinks spilled!!

jnnfrrose6 · May 2014

We've bought both new and used. The new we did go with dealer financing, but then switched to a local credit union about a year later when DH bought his used care and used the CU's financing. We had a decent rate with the dealer (probably was some sort of 0% offer to begin with), but DH is in finance and doesn't like/trust/believe in dealer financing if he can help it. We did buy the one car new with the intention of driving it into the ground and having it for at least 10 years. It's been about 4 and it still a good vehicle, but we're both realizing it isn't going to be big enough for us, 2 kids, and 2 dogs, so now we're in discussion of what to do next, as mine is the once that is already paid off.

As to features, back up camera isn't that important to me, but probably because I've never had it. Both of my parent's cars do, though, and I know I don't like using it when I'm driving their cars. I trust myself over the camera. Definitely need AC with vents in the back. I'm also a fan of the buttons on the steering wheel to change radio/volume/etc. My car doesn't have it, but DH's does.

INmommy871278 · May 2014

Everyone has given good info and responses to your question. I just wanted to add in on the when to buy part. I would talk to your lawyer and find out what, if any, problems might arise from you buying a new vehicle before the divorce is finalized. One of our friends has been in a holding pattern for almost two years now on buying a house and vehicle due to his divorce not being finalized. My aunt had to wait to purchase a new vehicle until her divorce was finalized as well, so I would talk to your lawyer and find out if you need to wait or not.

I would also ask a male friend or relative to accompanying you to the car lot, in our area at least, a single female walking in a car lot means tha they try to give you everything which raises the cost and they are less likely to negotiate with you on prices. I don't know if it's the same in your area or not, but something to consider. Also, the mp3 plug in is called and auxillary plug in just so you know the correct term when you go in. I would also try and find a vehicle that has rear a/c vents, our magnum has back seat vents but our Durango does not have rear seat vents. I also always check the back storage area, especially now that we have a stroller that is almost always in tow with me so bigger back space is a huge deal for me. If you decide to go used check for rust; areas I never thought to check before meeting DH is the doors when you open them that metal that is around the edges and wheel wells and finders. If you don't know much about engines and transmissions, but have a friend that knows about that stuff I would recommend having them with you so they can let you know if they hear something off about the shifting or engine.

As far as buying new or used, I always buy slightly used never new. As far as financing, everyone above gave good advice, I personally go through our credit union because we get the best interest rates through them. Good luck!

SuperTinkerham · May 2014

1) would you buy new to have longer terms (possible 60 or 72 months) and pay the "brand new" price to drive it off the lot new OR buy a few years old used with 20-30k miles on it to save the NIB expenses?
I always buy used.

2) would you buy now to avoid the summer heat or wait until after divorce is finalized and daycare expenses start?
I would buy now, but I live in TX and can't function without AC. Keeping in mind the daycare costs will be here before you know it.

3) must have features on a newer model vehicle? I know I was a mp3 plug in thing and probably a rear view camera for safety but what else?
Meh, as long as it drives and has great AC, and is easy to get the kid in and out of the car seat. Those would be my priorities.

4) finance through local banks for dealership financing? Does anyone have experience with 0% financing offers? I would try local credit unions and see what the dealer financing has to offer. Shop around.

keshupe29 · May 2014

I prefer to buy new. But that was after a terrible used car experience. I bought a new ford explorer about a year ago and love it. I agree with the post about using truecar.com. We used them and it helped us because the dealer can't really say or do much without losing business over price. And they know that's the best price and you can see just how much they mark up. If you go used. I agree with PP about carfax report. However know if someone wrecked it and had it fixed under the table that won't show up. That's what happened to me! Backup cameras are amazing!! Definitely recommend them. If you can wait till a holiday, dealers typically have good holiday sales. I got mine last Memorial Day sale and good sales plus good financing. I also agree with checking out other banks and credit unions for rates / pre approval as well. At least that way you have options!

AKbadwolf · May 2014

1) would you buy new to have longer terms (possible 60 or 72 months) and pay the "brand new" price to drive it off the lot new OR buy a few years old used with 20-30k miles on it to save the NIB expenses? Depends on what you are looking for. If you want one that is fairly new, sometimes you can get off the lot with a cheaper one or one that is comparable in price but has a better warranty. Shop around. Also remember that for cars they are ALWAYS negotiable. If they wont negotiate, walk out.

2) would you buy now to avoid the summer heat or wait until after divorce is finalized and daycare expenses start? Personally I would wait till you know what you can afford. It would suck to get comfortable in a car and have it repoed because you cant afford it.

3) must have features on a newer model vehicle? I know I was a mp3 plug in thing and probably a rear view camera for safety but what else? When I had my car with my younger boys and was a single parent trying to get my degree, I went with it had to have seatbelts, wheels and breaks. other than that I didn't care. The car I have now that I just bought in 2012 is the first one I have had that has the ability to Bluetooth in ect.

4) finance through local banks for dealership financing? Does anyone have experience with 0% financing offers? NEVER dealer finance. That will hit you with massive extra charges typically and you will end up paying much more in interest rates. Get yourself prequalified first by the local bank that has the lowest fixed interest rate and work from there. The only time this isn't true is like recently when DH bought his truck, they were giving a 2000$ discount if you financed through their dealer. At that point we financed through their dealer getting the discount but had already been preapproved through our bank and had the loan with the dealer paid off before we had to make any payments and before interest was compiled. This prevent us from having to pay the outrageous amount the interest would have added but gave us an extra bit of leeway.

glitterclaws · May 2014

These ladies sound like they know a ton about negotiating prices, so I have no comment on that.

I bought my car on Memorial Day weekend 7 years ago. If you are buying new, I think your best bet is to do it on a holiday, there's always special financing on holidays.

Depending where you live, I'll never buy another car/SUV that doesn't have all wheel drive. My front wheel drive car kicked ass, but my all wheel drive SUV is sooo much better in the snow. So that's my must have feature. If you have to haul stuff, I would pay attention to how much of a pain it is to fold, flip or remove seats. Good luck!

keshupe29 · May 2014

One other thing. If you are trading in your current car, you can also see what they will give you and see what carmax will give you if you have one near you. They are often more which would be more money down!

honeybee434 · May 2014

I've always had new cars DH has always had used. It's just worked out that way on getting the best value for our money based on situations at the time. I also drive cars for a LONG time and DH swithes out more often. When I've bought new I've tried to wait until they roll out the next years model for a while and they start putting big discounts on new cars from the year before.

I also recommend having financing set up through your bank or CU before you go in and then using that as a price negotiation if you buy new. And have a really good car payment calculator handy. They kept telling me the price of my car and my monthly payment and I kept telling them the math is off, and every time they told me of an "extra" they were rolling in. After the 3rd time of their math being incorrect, he finally realized he wasn't going to get anything passed me and broke everything down for me correctly where I could choose if I wanted any additional warranties, gap insurance, etc. (I actually just sent DH as I had to work and he kept calling me with the new numbers and I kept telling him to tell them to try again, because math is not negotiatable.)

For used, we shopped around at a few different credit unions and finally got the one we use most often to match a CU that had a much lower rate than they were originally offering.

The main feature on my car that I love that isn't always available is that my music will play through my Bluetooth connection. I've been told a lot of cars allow voice only and not for wireless music.

brewbecks · May 2014

Have you thought of leasing. You can lease a brand new car for 3 years for the same or less payment you would have if you purchased a used car. The perks of a lease are that you have a new vehicle under warranty, you can get more "car" for your money, you also usually get free xm radio for a year along with roadside assistance incase you break down. I always bought used cars but decided if I was going to have a payment anyways I might as well drive a new car that has a warranty incase something goes wrong.

BP607 · May 2014

Leasing could be a great option for you but keep in mind most leases have a limited mileage per year, so keep in mind how many miles per year on average you drive before deciding to lease. I think it can get pretty expensive if you go over your allotment.

AKbadwolf · May 2014

honeybee434 said:

I've always had new cars DH has always had used. It's just worked out that way on getting the best value for our money based on situations at the time. I also drive cars for a LONG time and DH swithes out more often. When I've bought new I've tried to wait until they roll out the next years model for a while and they start putting big discounts on new cars from the year before. I also recommend having financing set up through your bank or CU before you go in and then using that as a price negotiation if you buy new. And have a really good car payment calculator handy. They kept telling me the price of my car and my monthly payment and I kept telling them the math is off, and every time they told me of an "extra" they were rolling in. After the 3rd time of their math being incorrect, he finally realized he wasn't going to get anything passed me and broke everything down for me correctly where I could choose if I wanted any additional warranties, gap insurance, etc. (I actually just sent DH as I had to work and he kept calling me with the new numbers and I kept telling him to tell them to try again, because math is not negotiatable.)

Absolutely check on this. My DH's auto dealer tried to keep rolling in gap insurance through them but the CU that we got our loan through automatically accounts for gap insurance at like $200 less and they pay deductibles on certain things.

cakebatter27 · May 2014

One other thing I thought of...don't go in ready to buy that day. They'll ask what else you're considering. So if you're looking for a sedan and want an Altima, mention you're going to test drive the Camry, Sonata, Accord etc. Even if your heart is set on an Altima, they don't need to know that. And ask for their bottom out the door dollar and say you're headed to the other dealers to shop around.

With my Altima I waited even though it was what I wanted but I could get more on the Accord for the same amount. When Nissan called me the next week to check up, I mentioned how I was going to probably end up with the Accord because of more bang for my buck. The salesman called me back a few hours later and said they would throw in floor mats, the fog lights I wanted installed, and free inspections for as long as I owned the vehicle. I already knew I was going to get the Altima but it didn't hurt them to not know that. Their lowest first price isn't their lowest final offer.

Don't be afraid to play hard ball. And don't say, "I want to be under $300 a month". $300 a month for 36 months isn't the same price as $300 a month for 72 months. Know your bottom dollar going in.

Kohler2009 · May 2014

I would have said what everyone else said. Another thing to keep in mind is dealer shop around too. I bought a Ford Expedition in January and went to two different dealers. For close to the same price, one was offering me a demo 2013 model (with a check engine light on- red flag!!) and the other a brand spankin new 2014. It was a no brainer!!

colorsplashstudio · May 2014

All great advice. Something else to consider is the resale value of the car and look at kelly blue book. My husband is an insurance man and we just bought a certified preowned Ford Escape Titanium and based on the values if the car was totalled we would get more money back than what we paid for it. It really depends on the type of vehicle you are looking at. I got a 2013 model with 17k miles that was a corporate vehicle for about half the price of the new model. If you hone in on what is important to you, check out consumers reports, cruise a lot of dealer websites you will get a feel for pricing. I personally probably wouldn't buy from an individual at this stage in life with precious cargo being towed.

I can def second shopping around for financing. The dealership couldn't compete with my banks rate. Our bank offers .25% less if you auto withdraw the loan payments from your checking - no brainer! We did a 72 mo loan, but there's no penalty to pay off at any time earlier.

Shelleybell · May 2014

I ditto all the great advice. I always owned cars vs. leasing them and found out recently that leasing was much more affordable for me and enabled me to have much more options.

JKGordon · May 2014

We got DH a 2010 GMC Terrain about a month ago, and we love it. We chose it because of the excellent gas mileage, all the great features that were standard, and a great price. It was around $17k when new they are around $30k. It's in excellent condition and came standard with leather seats, nav system, backup camera, auto start, power everything. Nothing else really competed when we looked.

I definitely recommend the other ladies' advice about getting approved through a credit union before going to a dealership. And I've been taught to never ever buy new when they depreciate so quickly.

NexactlyBR - seeking advice on a new vehicle purchase

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