When to buy a new car?

[Shantytownbrown]

My wife and I are debating about when to replace our two cars...

1. 2002 Nissan Pathfinder, 153,000 miles and going strong, have only had to do fairly routine maitneence so far on this, due for new tires by the spring....this is mine, I need the 4x4 because of the Northeast winters as I have to get to work no matter the weather. Cosmetically in good shape, one front bumper ding and some wear and tear scrates, no major rust.

2. 2005 Audi A4 101,000 miles, doing fairly well, no major problems to date..

both are paid off and its been very nice not to have one, never mind two car payments...

I like my SUV, but at 10 years, getting a bit "itchy" to drive something new, but feel I should drive it "into the ground" as its not costing me anything at the moment...my wife still likes her car.

We are just worried that at some point both will need to be replaced, then we will need to shell out for two payments simultaneously...

How do you guys decide when to get a new car? What would you do?
(Please no arguments about getting fuel efficient cars as the sole reason...I did the math and the savings dont come until after you've owned the new car for 5 years)

Scott

btw..thinking of a 4 door Jeep Wrangler (Sahara Unlimited) or Nissan Xterra to replace mine, will take other suggestions...

 

[auk1124]

My opinion: Drive em til the wheels fall off. The absolute best car you can drive is a car that is already paid for.

 

[BBrad]

I'd take a paid-for car any day before having car payments again and watching depreciation race the payment book to the finish line . . . Start putting money aside each month (just like a car payment, only into a separate bank account) and save a pile of cash. Run the old cars until the cash pile is built. Then, go shopping and pay cash! Buy as much car as the cash will allow, and start the process all over again! Eventually you will be able to pay cash for the car of your dreams . . . and, since "Cash is King" you have a huge hammer to bargain with!

I also stay away from brand-new cars . . . I let some other fool take the hit on depreciation and I always buy low-mileage three or four-year-old used cars and pay cash. Since everybody (actually) drives a used car, I figure I'm miles (and dollars) ahead of my broke friends who love car payments and depreciation so much.

 

[Shantytownbrown]

I'd take a paid-for car any day before having car payments again and watching depreciation race the payment book to the finish line . . . Start putting money aside each month (just like a car payment, only into a separate bank account) and save a pile of cash. Run the old cars until the cash pile is built. Then, go shopping and pay cash! Buy as much car as the cash will allow, and start the process all over again! Eventually you will be able to pay cash for the car of your dreams . . . and, since "Cash is King" you have a huge hammer to bargain with!

I also stay away from brand-new cars . . . I let some other fool take the hit on depreciation and I always buy low-mileage three or four-year-old used cars and pay cash. Since everybody (actually) drives a used car, I figure I'm miles (and dollars) ahead of my broke friends who love car payments and depreciation so much.

I was actually thinking of doing just this, i think it is a great idea, and y'a know after i wrote the OP i drove to work and thought, there is nothing wrong with my ride, and forgot all about a new car...

 

[Toothpick]

I read that the best time to buy a car is either at the end of the month or end of the year. At the end of the month the dealership might be short on their quota and be more willing to haggle and go the extra mile to sell a car. They might be 1 car short and you could be the lucky guy and they will bend over backwards to sell you a car. I also read that the dealers rather you finance the car because they make more money on interest, rather than paying cash in full.

 

[neilyasno]

Yes dealers tend to give bigger breaks on payments, since they're pocketing the interest. many years back, my dad's friend wanted to buy some chevy. And he went to the dealership and negotiated a very low price due to the fact that he would be paying it off for a while. When he went to pick it up, he brought along a nice fat check and his lawyer friend. Needless to say, the dealer wasn't happy.

But seriously, check out an FJ cruiser. Very many options available. It's high off the ground so good for winter. And it's not terrible on gas for a car of its class.

 

[Hunter]

It sort of all depends, I would maybe wait for the summer when a lot of dealerships have their Demo days so you can check out a lot of cars at once. Also maybe just look at a few other SUVs and truck you might like, see what the trade in value for your SUV is and maybe go from there, like mentioned above the best time to buy is at the end of the month, but you have to visit a bit during the week, make them thing you really want it but not at that price, that last time you come in on the 31th will have a dramatic drop on it if the guy really needs a sale.

 

[Mick]

Good grief...

We are still driving a car we bought new in 1980 and have one that has been around before that one that I still drive.

If you want a new car, that is your decision and you should not let others sway you either way (yes or no).

 

[todayilearned]

I used to have a BMW 745i and a Honda Accord. I was a college kid and at the time the Honda was 1/4 the cost of the BMW. I seriously thought the Honda was the biggest embarrassment and waste of money since I never liked driving it. Lack of power, no luxury... no name.

5 years later I sold off the 745i due to busted torque converter at 70k miles. I took care of that care like it was a child.

The Honda Accord I abused the hell out of and at 100k miles it's running as strong as the day I bought it. The oil changes cost 1/10 and at times if I have the right promotion I can get it down to 1/20th of what the BMW cost.

My Honda Oddessy is at 190k miles. It will go another 100k and it was abused like hell. I've finally started taking care of both the Hondas.

If you want a different car the itch never goes away but for me I've realized I'm keeping these until I run them to the ground then buying a Toyota or Scion.

 

[Hunter]

Good grief...

We are still driving a car we bought new in 1980 and have one that has been around before that one that I still drive.

If you want a new car, that is your decision and you should not let others sway you either way (yes or no).

+1 BUY/SELL when you are ready, other then that save your money.

 

[dklaiman]

I'm also in the market for a car right now. Unfortunately, cash is no longer king--the dealerships I've dealt with don't care if I'm paying for the car outright or financing. I have learned, however, that Costco is king. I've been quoted much better prices through the Costco auto program than I was when negotiating on my own. On one occassion, the same salesperson I had been dealing with called me after I registered with the Costco program and offered me a better price on a car I had been looking at than the offer I had extended and had rejected.

 

[mretzloff]

Car payments > paid off car 99% of the time.

Assuming you can get a low interest rate, you actually make a profit off of the car payments because you can invest the money at a higher interest rate. Also, it has everything to do with liquidity. Having $X - down payment in the bank and paying car payments each month is always better than paying $X right away.

 

[Not The Original Kermit]

I'm going to wary about financing cars in the future and how long to finance. My wife got in an accident a few years back and the car was a write-off. but the blue book value of the car was less than what I owed on the car by about $1000 bucks. so I still had to pay off the 1000 dollars with the bank and get a new car.

I learned that places really hate it if you pay in full. I had the money to purchase in full and they still tried to get me to finance.

 

[Mick]

I learned that places really hate it if you pay in full. I had the money to purchase in full and they still tried to get me to finance.

The only way that cash talks is if you are talking about a used car from a private.

Dealers receive incentives to sell financing and will lose money if they sell for cash at the same price they are willing to finance for.

You are better off to finance then pay the loan in full with the first payment (or before).... UNLESS there is a prepayment penalty in the loan contract.

 

[Jawaburger]

I prefer to drive them into the ground myself. I know quite a few people that buy new cars, or lease, every few years and it never made sense to me.

 

[Lesmore]

I buy vehicles I really like to begin with . I buy new, as then I know how it's been maintained and treated during it's life. I'm a car enthusiast and I do a lot of driving. on city, highway, back country roads.

I'm also tall, large and getting up there in years. I also need to buy a car taking into consideration people other than myself...ie; wife, family, friends, MIL....who will also be riding in it.

I buy solid, well built, large, comfortable cars that I can fit into. I keep them anywhere from 10-20 odd years and everything in between. I live in a climate that features long ( 5 months +), cold, snowy winters ( -25 below today) to hot summers....which can see temps of 90 +.

I rustproof (Ziebart) my cars, change oil and filter at 3000 miles, check out every little sound or 'wonky' feel with my vehicles and repair them quickly. So far my maintenance costs are low (touch wood) as I get to problems when the the problem is small. I don't leave a problem to develop into something big and expensive.

I drive the cars till they are unreliable....till I feel that I wouldn't be comfortable jumping in and driving half way across the country. As mentioned before I generally keep them 10-20 years before they accumulate the kind of mileage and wear that makes me change vehicles.

You maybe surprised with the car I drive....a 2007 Buick LaCrosse, 4 door sedan.

An old man's car.

Maybe so, but it's very well built, large, extremely quiet, very comfortable for my 6 decade, 6' 3" 240 lb. + frame...with bad hockey knees. I can stretch out completely in the driver's seat...the seat itself is broad, comfortable and big enough for my avoirdupois. BTW, I can't even fit into most cars, particularly those of Asian manufacture...we also have a Toyota....which I'm supremely uncomfortable in.

But I've got 6 years, 112K on the odometer...it's still running, strong, starts in -30 weather, AC is great and it goes down back country gravel roads like a slot car..

So after my long response...I don't buy a new car till it's just about dead.

My advice, if you like your current vehicle and it's in good mechanical and other shape....keep it.

I know, I know about the desire to get something different and new (done that)....but the novelty really wears off fast and then you've spent a chunk of change for something that you may find you really don't like as much as your former vehicle.

 

[Shantytownbrown]

So after my long response...I don't buy a new car till it's just about dead.

My advice, if you like your current vehicle and it's in good mechanical and other shape....keep it.

I know, I know about the desire to get something different and new (done that)....but the novelty really wears off fast and then you've spent a chunk of change for something that you may find you really don't like as much as your former vehicle.

I think that this is sound advice, and i think i just needed to hear from you guys what has been in the back of my head..keep what i got...

not to look a gift horse in the mouth but after 10y 150k i know what i am getting form my ride, and it has been treating me well, and there is no current indication to move on...if and when i am getting regular trouble from it, i will look for something else...

who knows the next car could be a lemon!

(more money for me to buy shave stuff anyway!)

 

[Graybeard57]

I was actually thinking of doing just this, i think it is a great idea, and y'a know after i wrote the OP i drove to work and thought, there is nothing wrong with my ride, and forgot all about a new car...

It's what I'm doing now with a 12 yr old Taurus with 127,000 on it. Have money deposited into savings, just like a car payment, so in a couple of years I can give it to No. 1 Son, and drive a nice car off the lot at least half paid for, keeping my payments, if any, lower than what is being set aside now. It pays to hang onto them!

 

[StillShaving]

The answer from an economic POV is do not buy another vehicle until your current one breaks and costs more to fix than it is worth. If you anticipate that other things are about to break (hard to do), then the calculation may be different or if there is some big opportunity cost associated with a car break down (i.e. can't afford to be late for work, or carpool for a day(s), take a taxi, etc) then one might want to trade in sooner to increase chances that nothing bad will happen. But as you allude to, the main reason most people trade in their vehicle to scratch some itch. Your Pathfinder should be able to cross 250K miles if you dare.

 

[gaseousclay]

my wife and I just purchased a new/used 2010 Honda CRV, mainly because my VW Passat died on me. We waited til the end of December to buy ours but we didn't really get any special deal outside of what we haggled for on price. I would personally wait to get a car, the reason being that if your current cars run without any problems then it makes sense to drive them into the ground rather than stick yourself with a monthly car payment. My wife and I had no choice because we have a baby on the way and we needed something that could also accomodate a dog