The Smartest Way to Buy New Cars

[Serpent]

I was lurking, and saw this.. That is absolutely not true. Jeep Wranglers have one of the best resale values. I sold someone a '12 Wrangler Unlimited on Black Friday of '11 and they put 21k on it in one year. They traded it in Dec 31st of '12 and broke even. Got rid of it for a '13 and their payment was within 10 bucks of what it was the year before.

Check local car lots. Look at '12-'13 wranglers. I guarantee their prices are VERY close to a brand new one.

I agree, I was about to say that guy is talking out of his ass. Maybe he meant other jeeps. But wranglers hold their value. My brother bought a wrangler '07 USED a couple of years back and sold it for more than what he bought it for. I think he made 2k?

 

[2001GTTT]

One word - LEASE. Oh, and dont buy a dodge.

 

[03SonicBlueGT]

I agree, I was about to say that guy is talking out of his ass. Maybe he meant other jeeps. But wranglers hold their value. My brother bought a wrangler '07 USED a couple of years back and sold it for more than what he bought it for. I think he made 2k?

Grand Cherokees aren't bad with resale. The new '14s are the hottest product on the market. Unbelievable vehicles. But wranglers are the top dog in resale as far as Chrysler products go.

 

[yuke175]

I just decided to buy my 13 f150. Go look at used trucks, then walk over to the other side of the lot and take 10k off the sticker price which is very easy to do with rebates and discount. It makes no sense to buy a used truck right now. Used prices are inflating and you can get a brand new version for only a little more.

 

[Sick03Vert]

Smartest way to buy new cars? Don't. Buy used cars that are a model year or two old. You'll be on or ahead if the depreciation curve and won't have to worry about picking "the right car."

^this.

You are trying to win at an impossible game. I see it every day.

The ONLY way not to lose money on a new car is not to buy one in the first place. Wish I had better advice, but that is honestly the truth.

 

[04svtterm]

It is retarded to "Finance" a new car. Either Lease or if you want to finance, Get a used one w/ under 10-15k miles w/ warranty and let someone else take the initial hit. Unless you are buying a specialty car which would be smart to pay w/ Cashiers check or CC. Dealerships might even work on pricing with those at times if paid for up front

 

[11GT50]

A jeep is one of the worst cars when it comes to holding its value.

You're kidding right? Go check out the depreciation on a JK Wrangler and report back.

 

[2KBlackGT]

Cant mod them though, unless you are never_enough...

:lol1: Nothing is forgotten around here

 

[ZINCYELLOW01]

Here is option #2, which I was initially talked out of but still consider:

It's feasible to buy a 2012, 20k mile Overland Summit (~50k+ MSRP) for $35k now. It seems like a great buy. The sticking point is that a new, 2014 Grand Cherokee Limited which has basically the same equipment and an upgraded trans + nav. screen is only 3k-4k more. It makes that decision a little more tricky.

 

[Svtkidd23]

My jk wrangler i sold and made money on after owning for 8 months.. Added wheels tires budget lift.. Headlights aem intske and exhaust. All budget parts besides tires.. Walked away 2500 more but that jeep was heading over seas

 

[xenodragon]

Wish I bought a new BMW M1 when they came out...brand new $50k, used now with 20k miles $70k :shrug:

SRT8 Jeeps - seem to hold their value well, hard to find a used one under $30k (the first gen)
WRX/STI/EVOs - Hold their values really well. Actually most perfromance AWD cars hold value.
High MPG cars - hold value well
Trucks - Generally hold their value well
1 Year production cars - Hold value well

Just what I have noticed, as I look at used cars almost daily.

 

[Drive XR7]

I was lurking, and saw this.. That is absolutely not true. Jeep Wranglers have one of the best resale values. I sold someone a '12 Wrangler Unlimited on Black Friday of '11 and they put 21k on it in one year. They traded it in Dec 31st of '12 and broke even. Got rid of it for a '13 and their payment was within 10 bucks of what it was the year before.

Check local car lots. Look at '12-'13 wranglers. I guarantee their prices are VERY close to a brand new one.

I decided to post in this thread because this is 100% true. Wranglers hold their value better than most American cars. Even old Wranglers go for top dollar. I don't understand it.

 

[Drive XR7]

Also, our Cobras are holding their value pretty well also. Look at '93 Cobras, they are still being sold for $15k-$20k. Not bad for a car that was $19k brand new.

 

[o2gt]

Also, our Cobras are holding their value pretty well also. Look at '93 Cobras, they are still being sold for $15k-$20k. Not bad for a car that was $19k brand new.

even with these number you still would be loosing money. you have to factor in inflation on that money over the last 20 year and whats be paid for insurance maintaining the car and the most important question tot think about is you ROI just think what a safe and steady investment on that money would possible be worth today.

 

[spitin venom]

One word - LEASE. Oh, and dont buy a dodge.

Lots of people lease because it makes a car they can't afford to buy within reach. A huge percentage of people I see lease get shafted in the end. The reason why is because they are only thinking about the low payment.

 

[jbs$]

Spitin, you are 100% spot on, if a person can not afford a higher payment, then, the last thing thay he can afford is a car lease. These folks never ask what is the capitalized price of the car, nor do they ask about the milage penalty.

 

[o2gt]

It is retarded to "Finance" a new car. Either Lease or if you want to finance, Get a used one w/ under 10-15k miles w/ warranty and let someone else take the initial hit. Unless you are buying a specialty car which would be smart to pay w/ Cashiers check or CC. Dealerships might even work on pricing with those at times if paid for up front

In some cases it makes since to finance a car. for example you lets say you het a loan a 2 % or less make your payment and use the rest of the money for investing purposes, your gaol beat the rate you pay on your borrowed money. i also believe in putting down a large down payment this is for piece of mind on my part i just feel better about it.

 

[Drive XR7]

even with these number you still would be loosing money. you have to factor in inflation on that money over the last 20 year and whats be paid for insurance maintaining the car and the most important question tot think about is you ROI just think what a safe and steady investment on that money would possible be worth today.

I'm not saying to buy classic cars as an investment. You'll lose money on most cars. The only ones of recent I can say that have made owners money are the 06-07 Ford GTs.

What about the old late 50s Cadillacs? They are big bucks now in restored condition, but including inflation, they are a little more than a new decked out Cadillac ($90k).

 

[Never_Enough]

Smartest way to buy new cars? Don't. Buy used cars that are a model year or two old. You'll be on or ahead if the depreciation curve and won't have to worry about picking "the right car."

This

 

[VRYALT3R3D]

Play devil's advocate here, SVTP.

A pretty successful guy once told me that the best way to save money buying cars was to do the following:

1. Pick a vehicle that is likely to hold its value better than others
2. Buy said vehicle for the best deal possible
3. Pay off said vehicle within a year or two
4. Trade in before depreciation gets out of control (2-3 years, before 60k miles, etc.)
5. Trade in at a point in the year when new models have been on the lots for awhile and incentives are aggressive

That strategy, assuming you have the means to do it, means that you pay the spread between the old and new cars once you pay off your initial purchase. By minimizing the cost of the spread, you could potentially be driving new(ish) cars for the rest of your life for a relatively low cost.

1. I don't care about resale value as I usually never sell any of my cars. (I regret selling my '12 Boss 302 Laguna Seca) Buy a car not because of its potential resale value but because you like it. Don't look at monthly payments, look at the cash price only.

2. Of course you want the best deal possible. If buying new, work from the invoice up, never the MSRP down.

3. It helps to have a large down payment (more then 30%) But yes, aggressively pay it off ASAP.

4. The best thing to do when buying a new car is to keep it long term until it falls apart! Not trade it in every 2-3 years. The first 3 years is when you take the largest hit depreciation wise

5. Never trade in your car. Sell it private sale and pay cash at the dealer(don't finance at the dealership, finance elsewhere)

f the strategy is BS, what's the most financially responsible way to buy a new car?

Keep it until it falls apart. Maintain it well. Buy the car at the end of the month. Make sure you can actually afford it.