Best way to acquire new car in this market

[Sid23]

My lease ends in March and until very recently I was 100% set on buying a 4-5 year old Honda Accord and driving it into the ground over time.

I really want to get a Prius, but know financially the used Accord is a better deal.
But lately I'm wondering, is it? I'm seeing car dealerships going out of business left and right these days and I'm thinking I could probably get a screaming deal on a Prius, new or slightly used.

Any thoughts?

 

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[yveskleinsky]

Are there deals on cars right now? You betcha. The bigger question is even though you may get a great deal on a new car, is that the highest and best use of your money right now? If it is, go for it. In this market you can also get screamin' deals on real estate.

At the end of the day, a "deal" is only a "deal" if it is a part of your plan.

 

[LightHouse]

have you factored maintenance etc. the accord would be cheap, gas is inexpensive. My car now has 143,xxx miles on it.... new car is not part of my plan in the near future. Thank god there is a excellent mechanic in my immediate family

 

[PEERless]

First of all, drive an old car. We've discussed this already. BUT emotions can get the best of us. If you insist on buying a new car right now, use MJ's method...

The best way to buy a new car is to research the car first, walk in with a pre-made cashiers check, made out to the dealer, and say to the car guy, "That car over there? I have a $[car offer] cashiers check for that car. Yes or no?"

This avoids their BS and keeps your offer firm. I've done this several times with success ... the best is avoiding the car sales BS.

 

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[hatterasguy]

A Pius would be a nightmare to own as it gets older, that thing is as complex as a space ship. The new Accords OTOH are nice cars, far better than a Pius.

Now is a great time to get a deal on a new car! I was eyeing a brand new Chevy 1500 for $13,910, perfect work truck. I won't pull the trigger until I sell a deal and can buy one with cash though. Even than I will probably cheap out and find a good used truck for $5k. Cars are a waste of money. I'm pissed that I just missed a screaming deal on a mint F150 for $1,500. I could have driven that truck for at least 5-6 years.

The best way to buy a new car is with a check, if you can't write a check for it you cannot afford it.

 

[andviv]

Are Toyota dealers also going out of business? I thought they and Honda were doing OK.

 

[hatterasguy]

Well no, you probably won't get such a good deal from Honda or Toyota. The 4 banger Accord is their breadn and butter model, so they probably won't deal to much. I know they are not running any truck specials.

We bought my mom a Rav4 when the new models came out in 2007. The sales guy said this is the price, pay it or someone else will. I suspect they will negotiate a bit now, but not nearly as much as say a GM dealer would if you were buying an SUV.

 

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[biophase]

Went to Toyota dealer last month. No deals there. Their version of negotiations is to start at sticker and go down. Sticker was $35,000, I offered $25,000 + my trade (worth $5k), with 0% for 60 months financing. They couldn't make it work.

I don't think they are hurting like the American car dealers.

 

[Z5 FILMS]

The Prius is for greenies worried about the environment. If you don't care about carbon footprint, the Accord or a Camry is the better deal.

 

[hatterasguy]

If you really care about the environment and just don't want to pretend you do, a used Mercedes or VW diesel run on B100 is the best way to do. This way your not consuming resources required to produce another car, and your not burning fossil fuels. You can go one step further and use American made synthetic oils in the drive line on extended drain intervals to further reduce your petroleum use.

Biodiesel is a great fuel source, unlike the E85 shame it doesn't consume corn.

 

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[Merkin Man]

I agree that Toyota and Honda are going to be much less willing to cut you a deal on their cars...they're too in demand right now.

I would think for new cars any of the "Big 3" automakers are going to be more inclined to cut you deals.

A dealership in my town last week was selling '09 Chevy Impalas that had stickers of $23,900 for $14,500. Bigger than Prius and Accords, and at around 25 mpg still pretty economical.

I considered going and talking to them but thanks to poor timing I am still in the hole a couple grand on the school bus, I mean Expedition, I purchased last year.

 

[White8]

If you're looking for a deal on a new car, I would look for a small dealer in a small town who has been sitting on inventory. According to a car dealer I spoke with a few years ago, the auto manufacturers don't offer flooring so dealers floor the cars through a lender and start paying interest almost immediately. I would also look to the manufacturers who are in the worst condition (GM & Chrysler) as their dealers will be hurting the most and the manufacturers will be more likely to offer incentives published or unpublished to free up the inventory on the dealer lots.

However, as yveskleinsky said, would you be better off using this economic opportunity to invest?

 

[Jito]

Look for a zero interest deal. Does your company lease you a vehicle?

 

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[fanocks2003]

My lease ends in March and until very recently I was 100% set on buying a 4-5 year old Honda Accord and driving it into the ground over time.

I really want to get a Prius, but know financially the used Accord is a better deal.
But lately I'm wondering, is it? I'm seeing car dealerships going out of business left and right these days and I'm thinking I could probably get a screaming deal on a Prius, new or slightly used.

Any thoughts?

Go for it. Test the dealerships and see if you can get a good deal. I'm sure you are right.

 

[hatterasguy]

The new Chevy Malibu is a very nice car, IMHO better than the Camry and equal to the Accord. I'd look at one, and you could probably cut a better deal with Chevy.

Its a shame GM didn't give the new Malibu a new name, other than the name it in no way resembles the misserable thing it replaced.

If you havn't looked at an American car in awhile it will surprise you, GM at least is getting with the game.

 

[PurEnergy]

I was at a Toyota dealership today doing some work. I was told by one of the guys that they just lowered prices $60,000 on their used car inventory. I believe they had about 40 used cars in stock. He said they are lowering prices because book value is going down. I'm guessing book value is going down because demand is going down.

I have another friend who does all the buying for another Toyota dealership and he said nobody is buying at the auctions right now. He mentioned Mercedes and BMW prices dropping sharply.

The inventory of new cars on all lots is increasing A LOT as I believe they have to buy so many per month. I believe they've all slowed down buying used cars as they don't have any quotas. I've noticed a lot of dealers drying up or disappearing. The foreign dealers I work with say it's steady but slow.

I noticed today that they were offering 3.9% financing on some used vehicles!

 

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[andviv]

Another option for those looking for a car, although not brand new, is to check the websites that offer lease trading. There are a lot --i mean a lot, of BMWs, Mercedes, etc, that were leased, and the owners now can't afford the lease, they are willing to let you pickup the lease and continue with the payments.

We are talking many 08 and 09 models with low mileage.

Like in everything else, there are good deals and terrible ones to be found there. But it is another good alternative.

 

[job.startup]

I would look for a zero interest deal.

 

[PL Dubber]

I don't think you will be able to get a deal on a Prius...seeings how that is the car that everyone wants. It is the most popular, you are just going to end up paying sticker price if you want one that bad. I don't think you will find a used one that easily because like I said, it is a popular car. Everyone wants one to save on gas (even though prices are SO LOW) and people want to help out the environment.

 

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[cmartin371]

If you're looking for a deal on a new car, I would look for a small dealer in a small town who has been sitting on inventory. According to a car dealer I spoke with a few years ago, the auto manufacturers don't offer flooring so dealers floor the cars through a lender and start paying interest almost immediately. I would also look to the manufacturers who are in the worst condition (GM & Chrysler) as their dealers will be hurting the most and the manufacturers will be more likely to offer incentives published or unpublished to free up the inventory on the dealer lots.

However, as yveskleinsky said, would you be better off using this economic opportunity to invest?

This is exactly how it works. Good post!

 

[emorgan]

I used some of the money from the sale of my first little business to buy and sell used cars privately. I got great deals on cars by researching and then going to buy the car with cash in hand (private sellers shouldn't accept cashiers checks or checks -unless you go the the bank with the person and cash it with them right there).

This market you can find amazing deals when you have cash.

I would drive my under $10k cars/trucks for a while, then sell them, pulling the cash back out, making a little extra, and go buy another one.

You don't have to flip them like I did. But I pulled my cash out of my vehicles and financed one- and I hate it. I hate paying interest on that loan. I hate that I paid more than the car is worth. I want to pay it off and I will never finance another car if I can help it- I'm a big fan of buying used privately with cash.

Just my two cents -

 

[StreetsofSilver]

Emorgan, that is a brilliant idea. I actually thought about doing that since the president elect is opening up car loan funding and a lot of banks are doing 0% interest.

I figured that I would have to add customs (like rehabbing a car) before reselling. Do you make any upgrades or repairs?

 

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[hatterasguy]

I made $500 selling my 300SD after driving it two winters, and my currant beater a 1997 VW Golf I'm hoping to get a G note for this spring when I'm done with it. Currantly I have $450ish into it, and it needs a $50 muffler.

Two years ago I bought a 420SEL for $50 that had snapped the timing chain and eaten its valves. I made a few hundred on parts and got well north of a grand worth of parts for my good Mercedes.

If you are mechanicaly inclined enough to fix them yourself, and get deals you can make a bit. I can get some pretty good deals on Mercedes through all my contacts, but it takes a lot of time and effort for a little return. Spending time an effort on say real estate is much more profitable. I'm watching a 300SDL on ebay now that if I bought it for $800, put say $500 into cleaning it...I bet I could ebay it again in 6 months for $2,500.

However putting $20k and counting into restoring my classic Mercedes has far outdone all of that.:coffee: Still everytime I turn the key I smile, that car is worth every cent, best waste of money ever! :love1:

 

[emorgan]

I never bought a car I had to fix up. I would bring someone with me to make sure the car was running well. You don't make back the money you put into fixing it up. You have to buy right- supply the demand and make sure you get a good deal.

 

[biophase]

Went to Toyota dealer last month. No deals there. Their version of negotiations is to start at sticker and go down. Sticker was $35,000, I offered $25,000 + my trade (worth $5k), with 0% for 60 months financing. They couldn't make it work.

Well the Toyota dealer has been hounding me. 4 phone calls today. End of the year special. They need to make numbers. I told them to call me back with a number.

They called and said, $500 above invoice on any car. There is a $2500 rebate on cash buyers, so basically their price was $2000 under invoice. I said I'll think about it.

They called an hour later and said they'd take invoice on any car. So its $2500 under invoice now. I said no. Doesn't seem that bad, but I don't want to buy a 4runner anymore.

I wonder if they'll call tomorrow...

 

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[LightHouse]

Well the Toyota dealer has been hounding me. 4 phone calls today. End of the year special. They need to make numbers. I told them to call me back with a number.

They called and said, $500 above invoice on any car. There is a $2500 rebate on cash buyers, so basically their price was $2000 under invoice. I said I'll think about it.

They called an hour later and said they'd take invoice on any car. So its $2500 under invoice now. I said no. Doesn't seem that bad, but I don't want to buy a 4runner anymore.

I wonder if they'll call tomorrow...

was this on a brand new one?

 

[biophase]

was this on a brand new one?

Yes , Brand new and in stock.

 

[LightHouse]

Oh wow, funny though, after i drop by my bank for another new acct i'm headed up north to go look at and probably buy a 4runner. Def not new though 04 with 55k, they are going a lot cheaper than i thought and i need something a bit more reliable than what i am working with now.

 

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[biophase]

Oh wow, funny though, after i drop by my bank for another new acct i'm headed up north to go look at and probably buy a 4runner. Def not new though 04 with 55k, they are going a lot cheaper than i thought and i need something a bit more reliable than what i am working with now.

04 with 55k miles should be cheap. They were trying to get me to look at an 07 for 40k under 20k.