Any good articles about car shopping published after March 2009?

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Pandamonium

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Aug 19, 2001
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There's a chance I'll need to buy a car in the next 6 months. If I do, I need to be as smart as possible about it because the purchase will be funded with loan money. I spent the last few hours reading at the usual sites (Edmunds, FWF, SD, KBB, Cars.com etc) , but I don't think I've come across any articles written in the last 3-4 months about car shopping.

I get the feeling that the economy is so off-kilter that I need to find a good article comparing buying new vs used. With the incentives and financing available (unless something changed in the last 6 months, my FICO is great), I think it should be possible to make out with a hell of a deal. My financial aid is awarded in lump sums to cover living expenses each term. With my package and my frugal lifestyle, I should have ~8k extra in each term. I'm not keen on the idea of borrowing at 8.5% (Grad PLUS) to buy a car, but if I have to shadow someone 30 minutes away and volunteer at clinics at odd-hours, I'll need some form of reliable transportation.

I know it would be cheaper to rent a car for the shadowing and bike to/from clinic, but when I start rotations in 2011, I'll definitely need a car. I'd rather buy now, when I think we're near the worst of the recession, than buy when things ought to be improving.

Anyway, has anyone spotted a recently published article about car shopping? I've read some that lack publication dates, and others from December 2008. I'm hoping for something published after March 2009.
 

StageLeft

No Lifer
Sep 29, 2000
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If you don't actually need a car for two years, there's no way in the world the deals will be so good now that it means you end up ahead buying now vs waiting two years of car free and its lower costs.

I think deals were better several months ago, although you should still be able to get good ones. I don't think there's anything qualitatively different about buying a car vs a year ago, though; just shop the used prices and visit some stealerships to see what they have on new and look at the diff.
 

A5

Diamond Member
Jun 9, 2000
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Yeah. The strategies for car-buying haven't changed in the last 4 months - if you've done your reading, just implement all of that and you should get their best price.
 

Gibson486

Lifer
Aug 9, 2000
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Originally posted by: Skoorb
If you don't actually need a car for two years, there's no way in the world the deals will be so good now that it means you end up ahead buying now vs waiting two years of car free and its lower costs.

I think deals were better several months ago, although you should still be able to get good ones. I don't think there's anything qualitatively different about buying a car vs a year ago, though; just shop the used prices and visit some stealerships to see what they have on new and look at the diff.

months ago (around easter), the deals were amazing....you just walk in and they gave you a bottom line price. Do not like the price, then just leave and they eventually ran out the door and gave you a car for close to what they bought it for. You could probably get a better deal now (especially on Subarus....no one is buying them), but you will have to work at it since people are buying cars again (Toyotas and Hondas mostly). But yeah, dealing on car is still the same as it was. Just do not rely on internet quotes to get bottom line pricing. Dealerships do not want to F around today. If you are serious, they will be serious about low pricing.

Also, the industry is in shambles now. Most of the manufacture to dealer rebates are no longer trackable. That's the reason why you see prices that are $2K below invoice with only a $500 rebate customer rebate. Manufactures are in "keep dealers head above water" mode.

BTW...buying a car before you get a full time job...bad idea. I did that. It was 9 months of me making payments with no job.
 

StageLeft

No Lifer
Sep 29, 2000
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BTW...buying a car before you get a full time job...bad idea. I did that. It was 9 months of me making payments with no job.
Definitely is putting the cart before the horse.
 

Pandamonium

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Aug 19, 2001
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Originally posted by: Skoorb
BTW...buying a car before you get a full time job...bad idea. I did that. It was 9 months of me making payments with no job.
Definitely is putting the cart before the horse.

I'm starting medical school in a city with a very spotty public transportation system (New Orleans). If I really had no choice, I could probably complete all of my year 1 and 2 shadowing and volunteer hours with some combination of bus, cab, and bicycle. More than likely, I will need access to a car for at least years 3 and 4 unless somehow all of my rotations are at a convenient hospital. The thing is, I have the means to buy in cash. I am also open to financing if the interest rate is low and I don't pay significantly more in the end.

That said, has anyone run across any good buying articles? I'm mainly trying to see if there is still a significant advantage to buying used in this market.
 

mshan

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Nov 16, 2004
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I've seen a lot of For Sales signs go up in cars around where I live; don't know if this is because people want to buy a new car, or are really strapped for cash.

Maybe check out Craigslist at your current and new locations and see if a solid, well maintained used car pops up at a good price?

If you can find a few finalist cars, there is probably a website dedicated to that manufacturer's cars where you can learn more about anticipated repairs and required maintenace over time, plus hopefully a recommended, reputable non-dealer garage to get needed work done at a fair price (if you get oil change done there, I think they will look over car for suggested maintenance at same time for you).

(If you're going to keep the car for years after training, buying a new car still might make sense)
 

SickBeast

Lifer
Jul 21, 2000
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They say that right now you can get really good deals on new cars. Apparently some of the deals even work out better than buying something used.

I say get something good on gas because IMO gas prices are going to skyrocket later in the year. I like the new TDI jetta personally, or else the new Prius.
 

Pandamonium

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SickBeast- have you seen any articles about how new deals can be better than used? I've heard it in conversations with people, but have never been able to find a source that quantifies it or that explains what makes/models work out cheaper.
 

Gibson486

Lifer
Aug 9, 2000
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Originally posted by: Pandamonium
SickBeast- have you seen any articles about how new deals can be better than used? I've heard it in conversations with people, but have never been able to find a source that quantifies it or that explains what makes/models work out cheaper.

here is an examaple:

09 Corolla S with sunroof for (MSRP 21K) paid 15.7 OTD (yes, actual price my gf bought it)

07 Corolla LE with sunroof and 20K miles cost 17K, could not get it lower than 16K.


09/10---->lower finance since new (lots of 0% used to be out there), graduate financing is around 4 - 5% if you take rebates in lieu of low apr.

used car---> 3.9% with penfed, everywhere else atleast 7%.

The interest alone works in your favor.

As for what makes and models, you gotta do the math yourself.

edit: here you go, Pandamonium

http://www.autoobserver.com/20...scom-reports.html#more
 

JulesMaximus

No Lifer
Jul 3, 2003
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Originally posted by: Skoorb
If you don't actually need a car for two years, there's no way in the world the deals will be so good now that it means you end up ahead buying now vs waiting two years of car free and its lower costs.

I think deals were better several months ago, although you should still be able to get good ones. I don't think there's anything qualitatively different about buying a car vs a year ago, though; just shop the used prices and visit some stealerships to see what they have on new and look at the diff.

This.

The market will vary depending on the type of cars you are looking at (a Chevy Malibu will be in far less demand than an Infiniti G37 so you could definitely work a better deal on the Chevy).
 

Pandamonium

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Aug 19, 2001
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Thanks Gibson! That's exactly what I was looking for, although I'm still trying to make sense of it.

Jules- I want to look at cars at the lowest price point possible. If it moves, has air conditioning, power windows/locks, and cruise control, I'm fine. Keyless entry and an audio-in jack would be awesome, but I don't need such a swanky ride right now. I like Camrys because that's what I've driven all my life, but hell if I'm going to pay a premium for a car in today's economy. I know I could probably scoop up a nice deal on a used car by craigslisting it, but the 3rd party used market scares the crap out of me because 1) I want some form of warranty and 2) I don't know enough about cars to accurately determine condition.
 

Gibson486

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Aug 9, 2000
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Originally posted by: Pandamonium
Thanks Gibson! That's exactly what I was looking for, although I'm still trying to make sense of it.

Jules- I want to look at cars at the lowest price point possible. If it moves, has air conditioning, power windows/locks, and cruise control, I'm fine. Keyless entry and an audio-in jack would be awesome, but I don't need such a swanky ride right now. I like Camrys because that's what I've driven all my life, but hell if I'm going to pay a premium for a car in today's economy. I know I could probably scoop up a nice deal on a used car by craigslisting it, but the 3rd party used market scares the crap out of me because 1) I want some form of warranty and 2) I don't know enough about cars to accurately determine condition.

it has to do with the low financing. You may pay more in bottom line price, but you eventually come out ahead when you finish paying off the car (for 13K financed, every 1% will add about $400 to the life of the loan) . As you can see, that 4 extra precent really make a difference on how much principal you pay.

 

Pandamonium

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Ahhh that makes sense. The bottom line price example you gave w/ your GF's car is the kind of thing that I was imagining, but I wasn't sure how that fit with the article. The post-finance price makes sense though. I'm shooting for the lowest bottom-line price before considering financing. If I did finance, I'd only consider it at ~0-1% rates. Otherwise I'd just pay in full.
 

Gibson486

Lifer
Aug 9, 2000
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Originally posted by: Pandamonium
Ahhh that makes sense. The bottom line price example you gave w/ your GF's car is the kind of thing that I was imagining, but I wasn't sure how that fit with the article. The post-finance price makes sense though. I'm shooting for the lowest bottom-line price before considering financing. If I did finance, I'd only consider it at ~0-1% rates. Otherwise I'd just pay in full.

my gf lucked out....she went right after easter and they did not sell a single car and their car lot was FULL to the max and the 2010's were supposed to come in the next weeks. I low balled the dealer in an email and then the dealer called literally 5 minutes later and said, "come down now and you can have it". We go down and then I say "excellent, now take off the other $1000 for the college rebate". The look on his face was priceless. They even tried convincing us that the college rebate was only $500, when it was $1000.

I still think you can get a great deal, you'll just have to bargain more. The TMV value on edmunds for new cars is whacky now (it has been for teh past 2 years). You can usually always get a lower price.
 
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