Buying a new car; maybe a debate :P

Stifler's - posted on 02/08/2011

Toyota hold their value too. That's why they are the world's most popular car.

Deanna - posted on 02/08/2011

I think it is up to you. If you don't have a lot of income and you don't want to be locked into at least 4 yrs or more of car payments I would go with the buy. However, if you like new cars, don't mind the payments, and can afford the payments you should also consider leasing. Especially if you can't seem to make up your mind about what kind of vehicle you want or like.

good luck

~Jennifer - posted on 02/08/2011

Actually, Brandi is spot on with that comment ^

Brandi - posted on 02/08/2011

Buy a Honda... they hold their value, so if you ever want to sell it, you could still get a pretty penny for it. :)

~Jennifer - posted on 02/08/2011

Don't get a Prius.

They are WONDERFUL cars, I admit....however, the battery disposal is worse to the environment than actually driving a fully gas powered vehicle.

Brandi - posted on 02/08/2011

buy slightly used. Once you drive that brand new car off the lot, it loses value by THOUSANDS! Save your pocket, buy a car 2 or 3 years old... at least.

Stifler's - posted on 02/08/2011

Toyota are fantastic. They have the $120 service, I almost miss my Corolla for that.

Katherine - posted on 02/08/2011

There are things to think about by not leasing.
You will have more maintenance on a used car vs a leased.
If you buy a car you will, in the long run dump more money into it.
I lease all the time and I love it. Just my opinion though. All I have to worry about is the oil change. Knock on wood, but I've never had any other problems.

Jocelyn - posted on 02/08/2011

Thanks ladies! You've all been very helpful :)

I think I've pretty much decided on buying a used car with a loan from a bank.

And in case anyone is wondering...I have my eye on a Toyota Yaris ^_^ (or a Prius)

Concerned(AK) - posted on 02/08/2011

Novated lease using pre tax dollars on salary sacrifice works quite well.

Sal - posted on 02/07/2011

oh i'm not sure of the exactly how this type of lease works but it is done on my hubbies income before tax then he pays tax on the amount left after so it minimises tax so not like a straight out lease.

Sal - posted on 02/07/2011

we have been salery sacrifice lease, we have done loads of miles (we are over 148 000 in 3 years) and it was great to have no added expense everything was covered, petrol rego, insurance, tyres, windscreens servicing everything (except the 300 excess when we hit a roo) couldn;t fault it so far, but it is due out soon and as we won;t be doing nearly as many km's we are doing our maths on what to do next, for buying i'd go for second hand, and try and get one with the new car warrenty still current.

Stifler's - posted on 02/07/2011

We were going to go through a bank, but the bank the dealership used had less interest. If you're in Australia, don't even bother with Suncorp, they don't negotiate.

Kelly - posted on 02/07/2011

Congrats!

There are advantages to both buying and leasing.

If you don't drive much--less than 15,000 miles/year-- leasing is actually a very good option. The payments can be half that of a loan payment for the very same car. But if you go over the mileage, you will pay A LOT.



We buy new because we don't know much about cars and would very likely invest in a lemon, (& we like the warranty, but I can't say we've ever used it....peace of mind, I guess). We are also not concerned about depreciation because we pretty much drive them until they die--my husband is driving a 1999 Ford Mustang right now! If you take care of them, a new car will last quite a while!



Buying used can have lots of advantages too if you know about cars, or have a trusted mechanic. Cars depreciate most during their very first year--so by purchasing a one year old used car, you can save a lot of $$ & if you need to sell it or trade it, you can get a bigger percentage of your investment back.



As for the dreaded loan....

We pay cash for our cars because you save a TON on interest that way. If you deposit the amount you would pay towards a car payment into the bank every month, you would have enough money to buy a car in about 36 months, but if you make the same payment towards a loan, it would take 60 months to pay for the same car!

Jaime - posted on 02/07/2011

oh, and invest in a Kelly Blue Book and take it with you when you go shopping. it's a handy thing to have to make sure you're not being ripped on the price of a used car. blue books are usually cheap. i bought hubby a pocket one for less than $5.

Jenny - posted on 02/07/2011

As the others have said buy. You don't want to fork over a bunch of money and have nothing to show for it in the end. Never buy brand new, buy a year old at the newest as vehicles drop significantly in value the second they leave the lot.

This is a good starting point for 2008: http://www.consumerreports.org/cro/cars/...

I would recommend Toyotas, Subarus and Nissans. Stay away from Ford and Chrysler/Dodge.

Jaime - posted on 02/07/2011

better to buy. if you lease, the company you leased it from will be able to take it back from you whether you've paid everything or not. it's like leasing an apartment. you pay all this money on rent every month and what happens after your lease is up if your landlord doesn't like you? you get kicked out.

i would buy, and i would go with a used car, especially with a first car. they're cheaper and if they had bugs they're usually worked out by the time you get it, IF you got it from a reliable salesman who got the car back into peak condition before trying to resell it. plus, if you wreck your older car, it won't be such a loss.

but always, ALWAYS check the car and the salesman out before going with what you think is a good deal. make sure the sales pitch matches the information in the car's handbook. if the car doesn't have a handbook, don't even consider the place where it's being sold an option. CARFAX IT. check all four tires and rims and make sure they match on sizes and are in perfect condition. check the doors, make sure they open easily and don't sag, that the handles are intact and not broken or sticky, and that the windows work. (i prefer manual windows, because the power window motors break so easily on used models.) make sure the AC/heat works. check the seats, that they aren't saggy and recline/shift forward and backward easily. make sure the steering wheel is good and doesn't shake while you're test-driving the car. ALWAYS TEST-DRIVE. and when doing so, make sure you pay attention to the suspension, brakes, and if you have to fight the wheel. you should never have to fight the steering wheel, as the car should keep going straight if the wheels are as well. if the car coasts to the right or the left while going on a straight stretch of road, something's wrong with the alignment and the car is not a good deal. also, listen to the transmission and if the car makes any weird noises while you're driving it, it's not a good idea.

check the engine of the car. make sure the battery is new and that there is very little corrosion on the terminals.

also, of course, check to make sure the paint job is in good condition and that there are no major dents. like i said, check the carfax on the car and make sure it hasn't been in any accidents. if it has, the collision(s) may have compromised the body of the car and may make it less safe. check the interior of the car for cleanliness, as well. if you are against smoking, check the ceiling for discoloration, as that will indicate the car has probably been driven by a smoker, in which case you should ask the dealer if the air filter has been changed since he got the car. that is, if you are very interested in the car.

if you go to a professional used car dealership, all of these things should be taken care of. an ideal used car will have never been in an accident, drives well, and doesn't make any weird noises.

i've been trying to get a car for the last three years, and will probably continue trying to get one for another three years before i finally succeed. but i've still been shopping around, and i compiled this list for myself. my husband bought a used car last year and we've had so much trouble with it, so a lot of this is based on experience. i know it's nigh impossible to find an ideal used car like the one i've pretty much described, but if you find the right dealer it won't be as hard.

good luck on your car-buying adventure! hope you find what fits you and your lifestyle the best.

Joy - posted on 02/07/2011

I think you can get a good deal these days on new and used cars. You just have to shop around and don't fall for the silver tongued car sales people. I worked at a Ford dealership for several years and saw those snakes hoodwink many a customer. Hell, the time came for me to buy a car and they even screwed me a little lol! I do recommend buying over leasing though. It's like the same difference between renting and owning a house. If you lease, yes, there are benefits (trading in for newer models every few years). But in the end, you don't own anything if you lease. Your contract ends, you don't renew, you don't have a car. But you've given them enough money to own a car. So, I say definitely buy.



Edited to add: I also agree with whoever said to buy certified used. You can get really nice used cars these days but if you go the used route, make sure it's a reputable dealer and not a "buy here pay here" type of joint. Certified used means they've passed rigorous inspections. I also recommend getting the extended warrantee (if they offer it and it doesn't hike your payments up more than you can afford). Things always seem to go wrong with cars and electronics the day AFTER the warrantee expires lol

~♥Little Miss - posted on 02/07/2011

One more thing...leases are good for those that own there own business....they can write off alot...not good IMO otherwise...you get bent over!

~♥Little Miss - posted on 02/07/2011

I just but certified used....I will never buy used again. to many worries.

~♥Little Miss - posted on 02/07/2011

Buy...we leased and it never quite feels like yours. If you have damage to the car, you pay out of pocket. Some places will may you pay when you turn it in, so make sure that is NOT your case...if you go over in mileage you pay for EVERY mile. I was so glad to be rid of my lease...now we own.

Stifler's - posted on 02/07/2011

Buy. I know people that have lease cars and they're like "don't get a lease car!" when we were thinking of it. It's better to go demo model apparently even though we never have. Look around and bargain with the people because they rip you off if you only look one place. We rang up every car place in the state and told them we were only paying this much and if they can't match it see ya later. If you're looking at used, go used that is 2 years old with all the extras like car seat covers, headlamp protectors, floor mats, boot liner especially. None of that stuff makes a car worth any more if you buy it when you get a new car but it's all necessary if you want your car to stay nice.

Bonnie - posted on 02/07/2011

I would say buy brand new or used, but don't lease. With a lease, you make payments for a certain amount of time and then you have to give the vehicle up and look for another one. At least with buying a vehicle, once it is paid off you can still keep it if you like it.

Amanda - posted on 02/07/2011

Used used used :0)

Dont take a loan from the car sales man. Go into your own bank and see what they will allow you for a car loan, and then go shopping! Many car sales ppls use high risk loans with large interest rates.

Laura - posted on 02/07/2011

I agree with Dana, used car and loan before lease. Good luck.

Jocelyn - posted on 02/07/2011

Well so far you girls have validated my plan to BUY a car from 2008 LOL

Chatty - posted on 02/07/2011

Get a loan from a bank if you can.....do NOT lease a vehicle. BLAH!

There's advantages to buying newer but I wouldn't buy BRAND new off a lot....you can buy almost brand new off a lot for MUCH less!

Rosie - posted on 02/07/2011

me too jocelyn, lol! i really can't find the car i want though. i want a 4 wheel drive minivan. aren't very many out there. chad thinks i should just get an suv, but i can't fit all the kids, and their friends and crap in there. plus i need 2 rows of seating to seperate them, lol.
i do believe it's better to buy slightly used. cars loose so much value as soon as they are driven off the lot. i don't know about leasing so i can't help you there. sorry. have fun hunting!! :)