New Cars/Trucks

[chim]

With the rates of interest on savings, it may or may not make sense to finance (but usually not). If the dealer offers 0% financing he often has extra profit built into the selling price. We don't buy things that need to be financed. If you can make payments after the purchase, you can put money aside ahead of the purchase.

It's very unusual to be able to come out ahead when financing. With few exceptions the interest rate on borrowed money (or extra money baked into the 0% financing sale price) is greater than you can earn on most investments.

 

[chim]

I haven’t shopped any interest rates at all yet, but have seen some of the low or 0% APR for some programs.

Just saw a television ad today that there’s an $8,000 rebate on some Jeep Wrangler models that expires today…..

Not interested in a Wrangler but some manufacturers will want to move prior-year models in the summer before new models come out in the fall.

Stellantis is not doing great. Head over to CarGurus and look at the Ram prices. Numerous have $17K or more off of their overpriced slow moving trucks.

 

[Daren Todd]

I haven’t shopped any interest rates at all yet, but have seen some of the low or 0% APR for some programs.

Just saw a television ad today that there’s an $8,000 rebate on some Jeep Wrangler models that expires today…..

Not interested in a Wrangler but some manufacturers will want to move prior-year models in the summer before new models come out in the fall.

The local Hyundai dealer was really looking to make a sale when we bought Beth's SanteFe. We got the 0% interest rate, plus about $5k more for her Buick on trade then anyone else was offering us for the car. We did walk out twice. The third time he stopped us and we waited by the door while he talked to his manager

 

[Daren Todd]

With the rates of interest on savings, it may or may not make sense to finance (but usually not). If the dealer offers 0% financing he often has extra profit built into the selling price. We don't buy things that need to be financed. If you can make payments after the purchase, you can put money aside ahead of the purchase.

It's very unusual to be able to come out ahead when financing. With few exceptions the interest rate on borrowed money (or extra money baked into the 0% financing sale price) is greater than you can earn on most investments.

We got the dealership to give us the same price for 0% as they were offering with %7 interest. We flat out told them if they couldn't get the price down, then we weren't buying.

Yes... we wanted a larger car. But we weren't in a situation where we had to get a new vehicle.

 

[The Evil Twin]

If you can, look into Navy Federal or Pen Fed.

 

[GeoHorn]

Some owners never really “own” the vehicle because they keep trading or buying new. This has become so common it has become…well…. common.
‘
It’s an expensive way to “own” anything. In actual practice…you Never Actually Own it…you are only temporarily in-possession…..someone Else actually “owns it”! (They’re able to do that because THEY profit from you using what is seemingly “convenient” or “expeditious” to You..)
Especially if the item is Financed, which equates to the most -expensive form of “ownership” because in reality…. you’re only “renting” it…while someone else ( the financier) profits from your seduction. Not only are you paying interest on the “loan”, … you also never recover the finance-fees, the service fees (title documentation, transfer, sale-taxes, etc).

The best way to truly “own” something is to pay cash, and keep it until it has only salvage value.

 

[Moose7060]

Hogwash

 

[RCW]

Some owners never really “own” the vehicle because they keep trading or buying new. This has become so common it has become…well…. common.
‘
It’s an expensive way to “own” anything. In actual practice…you Never Actually Own it…you are only temporarily in-possession…..someone Else actually “owns it”! (They’re able to do that because THEY profit from you using what is seemingly “convenient” or “expeditious” to You..)
Especially if the item is Financed, which equates to the most -expensive form of “ownership” because in reality…. you’re only “renting” it…while someone else ( the financier) profits from your seduction. Not only are you paying interest on the “loan”, … you also never recover the finance-fees, the service fees (title documentation, transfer, sale-taxes, etc).

The best way to truly “own” something is to pay cash, and keep it until it has only salvage value.

George- similar to other sentiments above. Do what works for you.

 

[NCL4701]

Just an opinion. All decisions regarding your personal life don’t have to be 100% business unless you choose them to be. If you want to replace one or both of your cars with brand new cars and you have the means to do it, it’s arguably not the best business decision but it may still be the best decision. For example, how many people can legitimately argue it makes business sense to buy a pleasure boat or motorcycle or camper or a lot of other depreciating assets that don’t generate income? Doesn’t mean it’s always a bad decision to buy one.

To me, vehicles are a tool to accomplish a job. Nothing more, nothing less. I plan to keep my 8 year old 95,000 mile work truck Tundra until it becomes unreliable.

My wife’s car we trade and get her a brand new one every 2 to 4 years while the trade value is still good. From a strictly business/financial standpoint, that’s not the best plan, IMO. She left home when she started working full time at age 15 while still finishing high school. I was in college working part time when we got married (she was 19, I was 22). We had no outside financial assistance, her from age 15 and me from age 20. To put it mildly, finances were tight. If I want to keep her in a newer car now, I will admit it’s not the most cost effective plan and still do it without hesitation or apology.

Not financing vehicles may also not be the best business decision depending on specifics of the deal. Business debt I can deal with when it makes sense. I HATE personal debt. That’s a personal bias not much different from my disdain for lima beans. Doesn’t matter what logic is applied, I still hate limas and personal debt.

If you find a prior model year still on the lot when the new model year comes out, you may pick up a good deal on a new car if you’re flexible. Best deal I ever got in a new vehicle was a Nissan Frontier with a 6 speed manual still on the lot 3 months after the new year model was out. Went looking for a black 2WD 2door automatic. After 6 hours of negotiating, left with a white 4 door 4WD manual for $3k under NADA retail for a used one with 15,000 miles because nobody other than me would take a manual trans. Good thing I got the manual, the automatics those years had all manner of problems.

 

[old and tired]

Best deal I've gotten from a dealer was the $17k on a Nissan Versa (2009) for $10k out the door... granted it was greatly help by $4,500 from "Cash for Clunkers" and Nissan's $1,750 rebate - I wanted to be the first guy at the dealership at 9 am Monday morning to "DO" the cash for clunkers deal... Wife was heading out of town Sunday and she looked at the dealer's website; "Internet deals of the week" and low and behold, our car was listed at another $750 additional savings!!

Sales lady, who was all "talky, talky" the previous week, didn't say a single word after we checked the VIN# for the ad... I just asked, "So we can get it for this price?" and showed her the print-out of the ad! Save another $20 since they were going to get me a "New" license plate, I said just transfer the old one and I left the dealer lot with a plate on the new car!!! (did I say I'm a Cheap SOB?)

After purchasing it, they increased the transmission warranty (for everyone) to 10 years and 100k so in 2019 at 94,000 miles we got a new transmission!!! Driving better than ever for $625 / year cost.

What I really hate about new cars/trucks, the cost of the annual taxes I have to pay; right now, $145 for the Toyota and less than that on the Nissan... it was $600 back in '09 (I would hate to guess what it is now since all prices have gone up!)

 

[RCW]

Great discussion here.

We all have a variety of strategies for "discretionary spending."

None are right or wrong if it works for you.

A little diversion, but for me, "vacation" spending is something I could do without.

As a former farm boy, I'm not much of a traveler. Never was in an airplane or taxi until our honeymoon. (Loved the plane, hated the Cancun taxis ). Also saw a beach for the first time (Caribbean). Have since seen both the Atlantic and Pacific Oceans.

We did drive to Hampton Beach NH for several years when the kids were young. Was a good time although expensive.

We don't eat out. Even when we visit kids, we'll often spend a lot of $$ at the grocery store, and I'll cook at the kids' house....cheaper and I'm a good cook...

PS - - For anyone near Philadelphia, I have a Reading Terminal Tee Shirt - loved that place when daughter lived in Philly. 100's of food stalls from Peking Duck to butchers, seafood, bakeries and even Chocolatiers....also visited the Italian Market in South Philly a few times.....

 

[BAP]

Sometimes you need to enjoy life. If continually squirreling away all your money and never spending it makes you happy, then go for it. But sometimes you need to treat yourself to a nice purchase and enjoy life because when the end comes, what is the point of having a mountain of cash if you never enjoyed using any of it. Each person has their own objectives in life and their own desires. But in the end, make sure that you have enjoyed your life.

 

[RCW]

Sometimes you need to enjoy life. If continually squirreling away all your money and never spending it makes you happy, then go for it. But sometimes you need to treat yourself to a nice purchase and enjoy life because when the end comes, what is the point of having a mountain of cash if you never enjoyed using any of it. Each person has their own objectives in life and their own desires. But in the end, make sure that you have enjoyed your life.

Yessir, well said my friend.

Like @NCL4701 said earlier. Doesn’t all need to be a business decision. It’s what makes you happy/satisfied/secure.

We do eat out occasionally and travel to visit kids.

Gosh, I have a Kubota - did I need one? Nope.

Did I want one? Hell yes, and it has proven to be a great purchase. Considered replacing it or getting another......

I've had motorcycles. Sold my Harley FXDI several years ago after 11 years.

I never got into snowmobiling. Just ask @Tughill Tom what an industry that is....his area is probably the Snowmobiling Capitol of the Northeast US.

With her impending retirement, the Mrs. wants a Hot Tub.....

We all have choices to make on our priorities.....

Make them and enjoy them when you still can....

 

[McMXi]

Each person has their own objectives in life and their own desires. But in the end, make sure that you have enjoyed your life.

Very well expressed.

It's often the things we didn't do that we regret more than the things we did. I want to have few regrets when my time is up.

 

[McMXi]

@RCW, I'm following along but I have no advice to give regarding strategies when it comes to buying cars and trucks. I'm all over the place. I have a '98 Jeep TJ that I bought used for $14k in 2001 that had 17k miles on the odometer when I bought it, and close to 25 years later I drive it almost daily. I also have an '02 F-250 that I bought for $8k in 2018 from a friend who bought it new in California in late 2001. It had 117k miles on the odometer when I bought it and he drove it up here to drop it off to me. And now I have a 2024 F-450 that I bought used from the local Ford dealer a few months ago with 17k miles on the odometer, but I paid quite a bit more for it compared to the other two vehicles! So far I can honestly say that I have zero regrets re those purchases and plenty to smile about.

From what I can gather, the only people who have to be ok with whatever you decide are you and your wife. Good luck with your decision.

 

[WFM]

This is a great decussion.
Makes me want to run to the Ford dealer and get a new F150.
I've owned 12 new F150s and hope to own several more. One of my enjoyments in life is a new truck.
I thing I learned years ago is Ford offers 0% or 2% or whatever Or $4000. Cash and 7 or 8% interest. I always take the check for $4.k and drive to the credit union and refinance for 1 or 2 or 3% while I use the $4.k check to pay that right off the loan.
Another thing I do is within a few days of buying taking it to Zbart for undercoating.
Frame and undercarriage never allows rust to start. Trade value or out right sale price is much much more. My junker just turned 60k miles. This truck I've held onto longer then most. Why.
Interest rates. Even credit union interest rate are way up. Enjoy life RCW. Two new paper plates in the driveway at once would look fantastic !!!

 

[McMXi]

This is a great decussion.
Makes me want to run to the Ford dealer and get a new F150.
I've owned 12 new F150s and hope to own several more. One of my enjoyments in life is a new truck.

I've owned quite a few Ford vehicles over the years with my first being a hand me down Ford Fiesta with a manual transmission and I think a 1.1L engine. That was followed by three Ford Rangers (one new, two used), an F-150 (new), a Contour SVT (new), a Mustang Cobra SVT (new), an F-350 Super Duty XLT Crew Cab 7.3L Dually 6-speed (new), a Ford Explorer (used), an F-250 Super Duty Lariat Crew Cab 7.3L (used) and finally a 2024 F-450 Super Duty Lariat Crew Cab Dually 6.7L (used).

When it comes to trucks I definitely prefer Ford over any other manufacturer.

 

[RCW]

Cute story on buying a vehicle.

In 1992 I bought a 1986 GMC pickup from a friend's Repair Shop/Used Cars.

Was a Maryland State DOT truck. School bus yellow.... 1/2-ton 2WD standard cab 8-foot box. Bought it for $2k or so.

When I called him to buy it, he said we need to take care of it right away. We're leaving on a trip in a couple hours.... We'll deal with the $$ later.....

Long story short, when I put my plates on it and drove off they were gone.

Two weeks later he called and said they were back home. Next day I paid for it in cash....

 

[WFM]

I do business with a salesman who has worked at the Ram(it's a dodge just call it a dodge) dealership for years. They sell the trucks for $10. To $14,000. Below the actual sticker price. The last time I spoke to him they got in eight half tons that stickered for $56,000.
Put them on the website for $42,000.
Sold all eight in two days. Customers from Maine new Hampshire Vermont and one was from NY he said. Its all about the volume of sales they have. And there lot is loaded. That's great if you would drive a dodge.
Unfortunately for me if the price was $20.k I wouldn't buy one.
But lots of great dodge deals if your into Ram.

 

[RCW]

I do business with a salesman who has worked at the Ram(it's a dodge just call it a dodge) dealership for years. They sell the trucks for $10. To $14,000. Below the actual sticker price. The last time I spoke to him they got in eight half tons that stickered for $56,000.
Put them on the website for $42,000.
Sold all eight in two days. Customers from Maine new Hampshire Vermont and one was from NY he said. Its all about the volume of sales they have. And there lot is loaded. That's great if you would drive a dodge.
Unfortunately for me if the price was $20.k I wouldn't buy one.
But lots of great dodge deals if your into Ram.

Yeah, not to get into a brand debate, but Dodge/Jeep/RAM/Stellantis wouldn't be my first choice anymore either.

We had one, a Plymouth minivan with some transmission issues. Common to the 3.3L v6 at the time in cars and vans. Know of a lot of truck problems about the same era.

I had a 1979 Jeep CJ7 - - not even sure who owned Jeep in those days.

Just a coincidence, just got a call from my son. His 2017 Honda Civic is throwing a bunch of codes.

Thought warning light was brake system but sounds like it's the CVT or electronics for the CVT......