Car Market going forward (1 Viewer)

[stbugs]

I thought I remember Mazda having some good rates when I was pondering for my youngest (2.9% special). Might not be on the CX-9, but PenFed used car rates are 6.79% at the lowest used car rates. If the dealer can give you their new car rate, could be a chunk lower.

No financing, will pay cash to dealer.

You might want to consider it. I looked and saw new vehicle financing from 0% to 2.9% (CX-90). I get 5% just parking cash at Fidelity so if they had a 0%, I’d take it and just automate the payments and earn the 2-5% spread on the interest. Let’s say $30k, the 5% interest is $1500 a year so $125 a month to start. It will go down every month as you make payments but you’d still easily clear a few thousand especially since the Fed appears to not be lowering rates soon.

If at any time the spread goes to 0%, you just pay off the remainder of the loan and enjoy the extra you made.

This all assumes that they’d be able to give you the new car rates. Used 3rd party (even good credit unions) car rates aren’t below 5%.

 

[Lehigh98]

I thought I remember Mazda having some good rates when I was pondering for my youngest (2.9% special). Might not be on the CX-9, but PenFed used car rates are 6.79% at the lowest used car rates. If the dealer can give you their new car rate, could be a chunk lower.

No financing, will pay cash to dealer.

You might want to consider it. I looked and saw new vehicle financing from 0% to 2.9% (CX-90). I get 5% just parking cash at Fidelity so if they had a 0%, I’d take it and just automate the payments and earn the 2-5% spread on the interest. Let’s say $30k, the 5% interest is $1500 a year so $125 a month to start. It will go down every month as you make payments but you’d still easily clear a few thousand especially since the Fed appears to not be lowering rates soon.

If at any time the spread goes to 0%, you just pay off the remainder of the loan and enjoy the extra you made.

This all assumes that they’d be able to give you the new car rates. Used 3rd party (even good credit unions) car rates aren’t below 5%.

Thanks but had already discussed with them and they aren't offering that kind of rate.

 

[pollardsvision]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick.

 

[BeTheMatch]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

 

[JohnnyU]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

My thoughts on that is that in a trade the dealer will adjust the deal so that your trade-in is practically giving your car away. If your car has low mileage and is in great shape it is better to sell your car privately than to trade it in. If your car has high mileage then it doesn’t matter.

 

[BeTheMatch]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

My thoughts on that is that in a trade the dealer will adjust the deal so that your trade-in is practically giving your car away. If your car has low mileage and is in great shape it is better to sell your car privately than to trade it in. If your car has high mileage then it doesn’t matter.

That hasn't been my experience.

 

[JohnnyU]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

My thoughts on that is that in a trade the dealer will adjust the deal so that your trade-in is practically giving your car away. If your car has low mileage and is in great shape it is better to sell your car privately than to trade it in. If your car has high mileage then it doesn’t matter.

That hasn't been my experience.

The exception was when they were giving more for used cars a couple of years ago because of the shortage of new cars. That isn’t the norm.

 

[FairWarning]

I'd probably stop in and talk to them and see the car in person. Can you pay the difference in cash and skip the financing? That would be optimal. Car payments suck.

Agree to the final price before telling them that you are paying cash and not financing thru them.

 

[FairWarning]

i don’t see leases in my area. Are they a thing of the past?

 

[culdeus]

i don’t see leases in my area. Are they a thing of the past?

Leases are tough to sell without manufacturer incentives backing them. People want to see payments much lower than lending and today they can't pull that off so often don't bother.

 

[Juxtatarot]

Looks like leasing penetration is about 20%. Less than what it once was but far from dead.

 

[pollardsvision]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

 

[Drunken knight]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

My experience is that the offers are around 50-60% of market value if selling on my own, which is significant for me.

 

[culdeus]

Looks like leasing penetration is about 20%. Less than what it once was but far from dead.

Is it mostly luxury brands now? Curious what the share of Honda Toyota looks like

 

[pollardsvision]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

My experience is that the offers are around 50-60% of market value if selling on my own, which is significant for me.

I'm certainly no expert, but I'm having a hard time imagining why that would be.

Are you talking about actually selling the car for half of it's value? Or just low-ball offers (which is pretty normal selling anything)?

I mean, are you saying that when you try selling a car privately, and list it for, say, $10,000, all you get is offers for $5000-6000, and then you take that same car to a dealership and they actually pay you $10,000?

Are you talking about actual private party sales (FB marketplace, craigslist, etc)? When you say "getting offers" that implies you might be getting offers from dealerships, which would explain the 50-60% thing.

 

[Drunken knight]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

My experience is that the offers are around 50-60% of market value if selling on my own, which is significant for me.

I'm certainly no expert, but I'm having a hard time imagining why that would be.

Are you talking about actually selling the car for half of it's value? Or just low-ball offers (which is pretty normal selling anything)?

I mean, are you saying that when you try selling a car privately, and list it for, say, $10,000, all you get is offers for $5000-6000, and then you take that same car to a dealership and they actually pay you $10,000?

Are you talking about actual private party sales (FB marketplace, craigslist, etc)? When you say "getting offers" that implies you might be getting offers from dealerships, which would explain the 50-60% thing.

I will be listing it privately for about 20k
Offers from dealers are around 12k

 

[pollardsvision]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

My experience is that the offers are around 50-60% of market value if selling on my own, which is significant for me.

I'm certainly no expert, but I'm having a hard time imagining why that would be.

Are you talking about actually selling the car for half of it's value? Or just low-ball offers (which is pretty normal selling anything)?

I mean, are you saying that when you try selling a car privately, and list it for, say, $10,000, all you get is offers for $5000-6000, and then you take that same car to a dealership and they actually pay you $10,000?

Are you talking about actual private party sales (FB marketplace, craigslist, etc)? When you say "getting offers" that implies you might be getting offers from dealerships, which would explain the 50-60% thing.

I will be listing it privately for about 20k
Offers from dealers are around 12k

Ah, I gotcha. I misunderstood.

 

[Drunken knight]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

I can't help you with negotiating with a dealer. Haven't bought a car from a dealership since 2001. If there are not a lot of available options for the model that you want, I wouldn't imagine there would leverage for negotiating.

Car Edge YouTube channel has some good content on this (they're good dudes, you just have to forgive them for the click-baity titles).

I would suggest selling the Buick privately though, if you can. You will get more money selling it privately, and from now until about the start of May, it's a great time.

There's a lot of people out there that would love to spend their tax refund on a 10 year old Buick

Yes, you can get more money in a private sale. But that's not the only factor. There is the PITA factor as well. How much is it worth to you to not have to deal with a private sale? And of course, depending on the state you're in, doing a trade instead of a private sale can greatly reduce your sales tax on the new vehicle.

Definitely agree on the PITA factor, and for many, it just may not be worth the hassle.

But during tax time, you price it right, you can move it quick.

My experience is that the offers are around 50-60% of market value if selling on my own, which is significant for me.

I'm certainly no expert, but I'm having a hard time imagining why that would be.

Are you talking about actually selling the car for half of it's value? Or just low-ball offers (which is pretty normal selling anything)?

I mean, are you saying that when you try selling a car privately, and list it for, say, $10,000, all you get is offers for $5000-6000, and then you take that same car to a dealership and they actually pay you $10,000?

Are you talking about actual private party sales (FB marketplace, craigslist, etc)? When you say "getting offers" that implies you might be getting offers from dealerships, which would explain the 50-60% thing.

I will be listing it privately for about 20k
Offers from dealers are around 12k

Ah, I gotcha. I misunderstood.

If they would come in around 17-18, I would consider it (as cost of reduced hassle).

 

[Nugget]

I’ve seen much tighter spreads with dealers in my area. In Kansas, sales tax is calculated on the difference, so there is extra incentive to trade the car in and not deal with many potential issues of selling it on your own. Most dealers would prefer trades to auction cars as there are less fees and you don’t have to be the highest bid. It is still difficult to find good used cars due to lower production volumes 2020-2022.

 

[Dan Lambskin]

My Pacifica lease is due in 2 months, current prices are insane. Like $250 more than my current lease price

We need a 3rd row so selection fairly limited. I did find a demo that will lease out at a reasonable price, probably pull the trigger on that tomorrow, gonna check out some Chevy Traverse too

Looked at buying my current one out but rates are crazy right now it’s basically the same cost as what I can lease another one for

Haven’t really looked into buying but our preference is to lease our main car so we always have something new and reliable (my daily driver is a 2010 ford focus)

 

[fruity pebbles]

I remember the good ole days (really only 3-4 years ago) when I’d lease Nissan Sentras for $1000 down, $150 a month.

 

[Orange&Blue]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

 

[FarFromHome]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

 

[Orange&Blue]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

 

[pollardsvision]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Best "way" is up to you. Last couple I've bought were $2500 cars on FB Marketplace.

Wherever you look for cars, keep in mind that you'll get a little better deal once everybody finishes blowing their tax refund. June/July is a great time.

In fact, this year I'm going to promise myself not to go anywhere near FB marketplace during the summer. I have an addiction to 20+ year old Japanese cars. When I see one with a lot of life left in it for a couple racks, I just can't help myself.

 

[FarFromHome]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

Bought in 2023 the car is 2013

 

[-OZ-]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

 

[stbugs]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

The mileage is crazy as is $10k for a 2023 Accord. That’s about 300 miles a day for a year. I’d be worried about major parts for a car that was basically a heavily used taxi.

According to this a NYC taxi that is driven by two people both doing 5 12 hour shifts (basically 5 days of 24 hours a day) will be driven 93,600 miles a year.

 

[FarFromHome]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

My bad. I misread question. I bought the car 4 months ago in 2023 the car itself is a 2013

 

[FarFromHome]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

The mileage is crazy as is $10k for a 2023 Accord. That’s about 300 miles a day for a year. I’d be worried about major parts for a car that was basically a heavily used taxi.

According to this a NYC taxi that is driven by two people both doing 5 12 hour shifts (basically 5 days of 24 hours a day) will be driven 93,600 miles a year.

My bad I misread question. Car is 2013

 

[stbugs]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

The mileage is crazy as is $10k for a 2023 Accord. That’s about 300 miles a day for a year. I’d be worried about major parts for a car that was basically a heavily used taxi.

According to this a NYC taxi that is driven by two people both doing 5 12 hour shifts (basically 5 days of 24 hours a day) will be driven 93,600 miles a year.

My bad I misread question. Car is 2013

Lol. I figured, but I really did want to see what 100k in one year meant.

 

[The Z Machine]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

The mileage is crazy as is $10k for a 2023 Accord. That’s about 300 miles a day for a year. I’d be worried about major parts for a car that was basically a heavily used taxi.

According to this a NYC taxi that is driven by two people both doing 5 12 hour shifts (basically 5 days of 24 hours a day) will be driven 93,600 miles a year.

My bad I misread question. Car is 2013

Lol. I figured, but I really did want to see what 100k in one year meant.

I don't think you do, actually. I bet everything is suuuuuper beat up except the back seat interior.

 

[Nugget]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

what year?

2023

That’s a lot of miles for a 2023.

The mileage is crazy as is $10k for a 2023 Accord. That’s about 300 miles a day for a year. I’d be worried about major parts for a car that was basically a heavily used taxi.

According to this a NYC taxi that is driven by two people both doing 5 12 hour shifts (basically 5 days of 24 hours a day) will be driven 93,600 miles a year.

My bad I misread question. Car is 2013

Lol. I figured, but I really did want to see what 100k in one year meant.

I don't think you do, actually. I bet everything is suuuuuper beat up except the back seat interior.

The ignition is like new - it has never been turned off.

 

[Lehigh98]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

Update: Car acquired

Went up to have my wife's Buick appraised there Friday night and may have gotten low-balled a bit. But there are multiple issues with the car which lead to this whole search, and I suspect a few were noticed on inspection. (Alignment issue, driver side mirror not working, dings and scratches, etc.) I didn't want to do this as a private sale because of potential issues blowing back on me after sale.

I laid out what I would need to "put me in this car today" for the sale price and trade in value which, honestly, was not very realistic since I was planning on looking around more anyway. They offered to meet about halfway, but I said I was prepared to walk away, and I did on Friday night. My wife was a little bummed I came back with the Buick and it was clear she wanted the CX-9. I had planned on going out and getting the Buick appraised elsewhere and looking at a few more cars on Saturday but we got over a foot of snow. After digging out, I called the salesguy back and said I'd come up that afternoon if he would meet my slightly more reasonable pricing / trade in value and he did.

All in all, I got rid of the troublesome Buick and I got a 2023 Mazda CX-9 in just about perfect condition with just over 10k miles at a good price.

 

[FarFromHome]

We're shopping for a new (to her) car for my wife. We could downsize a bit at this point with one of the boys about to leave for college but she still wants an SUV with some type of third row so we can squeeze her mom in without too much trouble when we've got 5 in the car. She's currently driving a 2014 Buick Enclave that's starting to have a few problems and we want to get rid of. In the past she's had a 2005 Toyota Highlander and a Toyota Sienna. Right now it seems like she's settled on the Mazda CX-9 as a mid-sized SUV with a third row that's not too big.

We've found one at a local-ish dealer that is a 2023 Grand Touring that has just over 10k miles and it's life was as a lender car for dealership customers. So first thought was almost like a rental car, but on second thought, probably no one taking long trips or hard driving into NYC etc. Posted price is $34,500. We'll trade in the Buick and cover the rest. (No dealership financing). I haven't negotiated a car purchase in a while, how would you suggest approaching this?

CX-9's have been discontinued for the CX-90 line but there are not many around (we've looked) because it seems like most people buy out and keep them after lease, so supply/demand not on our side in this case. If we don't get this one, may have to search for a while again. I asked the salesman that we met at the dealer while looking around via email for the best price they could do yesterday but haven't heard back yet. Would you just submit an offer? What would you suggest? My wife is going to be pissed if someone else buys the car while I'm screwing around with pricing.

TIA!

Update: Car acquired

Went up to have my wife's Buick appraised there Friday night and may have gotten low-balled a bit. But there are multiple issues with the car which lead to this whole search, and I suspect a few were noticed on inspection. (Alignment issue, driver side mirror not working, dings and scratches, etc.) I didn't want to do this as a private sale because of potential issues blowing back on me after sale.

I laid out what I would need to "put me in this car today" for the sale price and trade in value which, honestly, was not very realistic since I was planning on looking around more anyway. They offered to meet about halfway, but I said I was prepared to walk away, and I did on Friday night. My wife was a little bummed I came back with the Buick and it was clear she wanted the CX-9. I had planned on going out and getting the Buick appraised elsewhere and looking at a few more cars on Saturday but we got over a foot of snow. After digging out, I called the salesguy back and said I'd come up that afternoon if he would meet my slightly more reasonable pricing / trade in value and he did.

All in all, I got rid of the troublesome Buick and I got a 2023 Mazda CX-9 in just about perfect condition with just over 10k miles at a good price.

Hell ya.

 

[Dan Lambskin]

Closing on a 2024 Chevy Traverse lease

Man car shopping sucks

might consider getting out of the lease game after this one, although I do like having an updated car every few years

 

[sho nuff]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

This has been my experience the last couple years in the used market.
2 years ago, we were thrown into looking to replace a 2004 CRV that my son was driving until it was totaled.
We bought a 10ish year old Camry with 80,000 miles on it right around $10k. We decided to keep it and he drove the 05 Ford Escape we had bought from my brother in law around the time our son got his license.
Earlier this year, he was at a stop sign and a guy cut the corner too close and hit him. Due to the age, the insurance totaled the car. Its actually not that bad and we chose the settlement option that also allowed us to keep the Escape (the settlement to keep the car was just 700 less than them keeping it). It needs a new bumper cover and headlight to be ok to drive. Our daughter will be driving it eventually.

So again we were looking (and this was before we knew of the settlement) for something that may be our daughter would be learning to drive so we stayed in that used car around $10k range. And again its mostly cars around 10 years old with around 100k miles. We bought a 2012 Subaru Forester with just under 100k. For a touch over $10 grand. Interior in great shape, car overall in really good shape actually. We would have looked maybe for a newer car had we known about the settlement beforehand...but probably still settle on used as our other vehicle is a 2007 Honda Odyssey with 230k miles on it. When it dies, we will be spending on something newer and a bit pricier as we still like/need something with 3rd row seating and space for trips and things.

 

[belljr]

so what's the best way to car shop? kid turning 16 soonish and curious what i can get in my budget

Four months ago we bought our daughter her first car. Been a long time since I bought a car. It was brutal. I went in thinking 5 grand was solid for a first car. Realized quickly 5 grand gets you garbage. I couldn't put my child in a 5 thousand dollar car. Ended up spending 10 grand on a Honda Accord with 105, 000 miles. Best way to car shop today for used cars? Be patient and willing to travel to 100 car lots. Ha ha

This has been my experience the last couple years in the used market.
2 years ago, we were thrown into looking to replace a 2004 CRV that my son was driving until it was totaled.
We bought a 10ish year old Camry with 80,000 miles on it right around $10k. We decided to keep it and he drove the 05 Ford Escape we had bought from my brother in law around the time our son got his license.
Earlier this year, he was at a stop sign and a guy cut the corner too close and hit him. Due to the age, the insurance totaled the car. Its actually not that bad and we chose the settlement option that also allowed us to keep the Escape (the settlement to keep the car was just 700 less than them keeping it). It needs a new bumper cover and headlight to be ok to drive. Our daughter will be driving it eventually.

So again we were looking (and this was before we knew of the settlement) for something that may be our daughter would be learning to drive so we stayed in that used car around $10k range. And again its mostly cars around 10 years old with around 100k miles. We bought a 2012 Subaru Forester with just under 100k. For a touch over $10 grand. Interior in great shape, car overall in really good shape actually. We would have looked maybe for a newer car had we known about the settlement beforehand...but probably still settle on used as our other vehicle is a 2007 Honda Odyssey with 230k miles on it. When it dies, we will be spending on something newer and a bit pricier as we still like/need something with 3rd row seating and space for trips and things.

yep - i got lucky wit my used passport it only had 10k miles on it but it was 15k less than if brand new.

My Accord I purchased last March was a 2022 and the price of used vehicles were so close to the same price - that I just bought a new one this time.

 

[MTskibum]

Closing on a 2024 Chevy Traverse lease

Man car shopping sucks

might consider getting out of the lease game after this one, although I do like having an updated car every few years

Car shopping/negotiating is one of my favorite activities. In fact I am getting the itch to get a new/used vehicle just because.

I have had my 2022 Tacoma for 2 years now, which is hurting my average. I have had 19 cars in 25 years of driving, i need a new vehicle.


Impala wagon
Wagoneer
Camry
Subaru wagon predates outback
F150 -- roomate paid back rent with giving me this truck
Olds 88
Outback
Mazda 323
Sentra
Camry
Outback
F250
Impala
Seqouia
Civic
MDX
RAM 1500
WRX
Tacoma

Funny thing my wife is the same age and is on her 3rd vehicle.

 

[Nugget]

Closing on a 2024 Chevy Traverse lease

Man car shopping sucks

might consider getting out of the lease game after this one, although I do like having an updated car every few years

Car shopping/negotiating is one of my favorite activities. In fact I am getting the itch to get a new/used vehicle just because.

I have had my 2022 Tacoma for 2 years now, which is hurting my average. I have had 19 cars in 25 years of driving, i need a new vehicle.


Impala wagon
Wagoneer
Camry
Subaru wagon predates outback
F150 -- roomate paid back rent with giving me this truck
Olds 88
Outback
Mazda 323
Sentra
Camry
Outback
F250
Impala
Seqouia
Civic
MDX
RAM 1500
WRX
Tacoma

Funny thing my wife is the same age and is on her 3rd vehicle.

Own/Bought
2022 Maverick Lariat Hybrid - Feb 2022 - Sep 2022
2022 Bronco Sport Big Bend - Sep 2022 - Feb/March 2024
2023 Lightning Pro - Dec 2022 - May 2023
2023 Bronco 2Dr Base - May 2023 - Sep 2023
2024 Maverick XL Hybrid - Currently on a rail car over from Mexico

Company Lease
Current drivers - 2023 MachE; 2023 Ford Escape (daughter)
Ordered - 2025 Explorer to replace MachE

We have a good company lease program that covers mileage/maintenance/insurance. The maverick is the last vehicle that I had on order and the market for used cars appears to be weakening.

 

[urbanhack]

Looks like leasing penetration is about 20%. Less than what it once was but far from dead.

I'm on my third lease of a CX-5. I just bring it back every year and get a new one. I have gotten an upgrade each time I've done it. First lease was in 2014 for $395/month and now it's at $415. Never had to put any additional money down except for the first one. I'll probably do it again later this year when the lease is up.

 

[bcat01]

Going to pick up a new Ford Edge today. Buying it with the A/Z plan pricing as my wife's uncle retired from Ford. Also getting $1,000 trade in assist since a deer totaled my Escape and this applies if you have totaled your previous vehicle.

 

[gianmarco]

Just FYI, guys. You NEVER have to put money down on a lease and you shouldn't.

In the unlikely event the car gets in an accident/totaled, you don't get that money back. It's basically thrown away.

The only reason to really consider a down payment is if they are somehow offering you a better financing rate, which I've personally never seen (and shouldn't matter since that's not how lease financing is determined unless MAYBE it's due to poor credit).

 

[belljr]

Just FYI, guys. You NEVER have to put money down on a lease and you shouldn't.

In the unlikely event the car gets in an accident/totaled, you don't get that money back. It's basically thrown away.

The only reason to really consider a down payment is if they are somehow offering you a better financing rate, which I've personally never seen (and shouldn't matter since that's not how lease financing is determined unless MAYBE it's due to poor credit).

Serious question as I never leased (maybe once back in the early 90s)....

Why do the ads say x money down and X per month?

Do they roll that "money down" into your monthly if you refuse?

 

[gianmarco]

Just FYI, guys. You NEVER have to put money down on a lease and you shouldn't.

In the unlikely event the car gets in an accident/totaled, you don't get that money back. It's basically thrown away.

The only reason to really consider a down payment is if they are somehow offering you a better financing rate, which I've personally never seen (and shouldn't matter since that's not how lease financing is determined unless MAYBE it's due to poor credit).

Serious question as I never leased (maybe once back in the early 90s)....

Why do the ads say x money down and X per month?

Do they roll that "money down" into your monthly if you refuse?

Correct.

They will always ask for money down. Assuming decent credit, you can always ask to put $0 down.

A lease is pretty straight forward. It's the purchase price of the car minus the expected value of the car at the end of the lease (called the residual) plus financing charges.

If you negotiate and buy a car for $50000, then, let's say it's estimated to be worth $30000 at the end of the lease (i.e. 36 months later and 12K miles per year), then your lease is $20000 plus finance charges to borrow that. That gets divided into the length of the lease (36 months). Any down payment lowers the $20000 by that amount.

You could theoretically just pay the entire amount up front and have no lease payments (and save some/all of the financing, I believe). But, if the car gets totaled the next day, you get nothing. You don't get anything from your insurance or from them. You're out $20000. Or whatever you put down.

On the other hand, if put 0 down, it gets totaled the next day, you aren't out anything at all.

If you bought the car, and it gets totaled the next day, you can get that back from your insurance.

 

[Ministry of Pain]

Help!

-Test drove a 2022 S60 R-Type w/20k miles, they have a special price to entice you to come on the lot, they are asking $29,750 after they started around $36k
I really like the car. I have a 2014 S60 right now that I have beat the **** out of for 7 years, bought it used for around $18k w/35k miles on it when I purchased it

-2nd car same dealer is a 2021 Subaru Outback XT Touring, we currently have a 2017 XT Touring Forrester-WRX engine, w/80k miles, we bought it brand new for around $32,000
This car is being sold for asking price around $27,000 and used Subarus are not easy to find, Java leather, White exterior.

First thing is we could pay cash for either one but are willing to listen to any financing they provide. We carry no debt outside of our home and we basically would be borrowing against ourselves. I like both vehicles and could see myself making an offer on both of them but maybe just 1 new er car would be best.

What do you all think? I believe these are good deals and I have bought cars at the same lot previously, they were ready to hand me the keys but I always like to leave pretty quick after the teat drive and come back later with Mrs and let her have a look at them.

 

[dgreen]

Just FYI, guys. You NEVER have to put money down on a lease and you shouldn't.

In the unlikely event the car gets in an accident/totaled, you don't get that money back. It's basically thrown away.

The only reason to really consider a down payment is if they are somehow offering you a better financing rate, which I've personally never seen (and shouldn't matter since that's not how lease financing is determined unless MAYBE it's due to poor credit).

Serious question as I never leased (maybe once back in the early 90s)....

Why do the ads say x money down and X per month?

Do they roll that "money down" into your monthly if you refuse?

Correct.

They will always ask for money down. Assuming decent credit, you can always ask to put $0 down.

A lease is pretty straight forward. It's the purchase price of the car minus the expected value of the car at the end of the lease (called the residual) plus financing charges.

If you negotiate and buy a car for $50000, then, let's say it's estimated to be worth $30000 at the end of the lease (i.e. 36 months later and 12K miles per year), then your lease is $20000 plus finance charges to borrow that. That gets divided into the length of the lease (36 months). Any down payment lowers the $20000 by that amount.

You could theoretically just pay the entire amount up front and have no lease payments (and save some/all of the financing, I believe). But, if the car gets totaled the next day, you get nothing. You don't get anything from your insurance or from them. You're out $20000. Or whatever you put down.

On the other hand, if put 0 down, it gets totaled the next day, you aren't out anything at all.

If you bought the car, and it gets totaled the next day, you can get that back from your insurance.

So who insures a leased car?

 

[gianmarco]

Just FYI, guys. You NEVER have to put money down on a lease and you shouldn't.

In the unlikely event the car gets in an accident/totaled, you don't get that money back. It's basically thrown away.

The only reason to really consider a down payment is if they are somehow offering you a better financing rate, which I've personally never seen (and shouldn't matter since that's not how lease financing is determined unless MAYBE it's due to poor credit).

Serious question as I never leased (maybe once back in the early 90s)....

Why do the ads say x money down and X per month?

Do they roll that "money down" into your monthly if you refuse?

Correct.

They will always ask for money down. Assuming decent credit, you can always ask to put $0 down.

A lease is pretty straight forward. It's the purchase price of the car minus the expected value of the car at the end of the lease (called the residual) plus financing charges.

If you negotiate and buy a car for $50000, then, let's say it's estimated to be worth $30000 at the end of the lease (i.e. 36 months later and 12K miles per year), then your lease is $20000 plus finance charges to borrow that. That gets divided into the length of the lease (36 months). Any down payment lowers the $20000 by that amount.

You could theoretically just pay the entire amount up front and have no lease payments (and save some/all of the financing, I believe). But, if the car gets totaled the next day, you get nothing. You don't get anything from your insurance or from them. You're out $20000. Or whatever you put down.

On the other hand, if put 0 down, it gets totaled the next day, you aren't out anything at all.

If you bought the car, and it gets totaled the next day, you can get that back from your insurance.

So who insures a leased car?

You still carry insurance on the vehicle. But you don't technically own the vehicle. So you still have insurance to cover things like injury or damage or whatever. But if the car is totaled, you don't get paid because it's not your vehicle. It's owned by the leasing company. They also carry their own gap insurance to cover that and/or extra depreciation (from my understanding)

 

[zander_s]

I just convinced the MIL & SIL into a 'used' car.
I work at a dealership (not a sales person) and we just released 0.9% / %1.9 / %3.9 depending on what New vehicle.

Best option on a dealership lot that we see is find a 'Loaner' or ;Dealer: car.
MIL is picking up a 23 Ford Escape Hybrid loaner . has 1180 miles on it and it marked way down. Considered used but carries full warranty.
3.9% deal instead of th 7.9 used rate.

Age of vehicle on the lot makes a big difference. Since this was a dealer/loaner car it is already considered on the lot too long. Dealership had already been making flooring payments way too long.

 

[DA RAIDERS]

Kid is getting her license this month. Thinking about giving her mom’s car and then getting a CPO all wheel drive for mom. If the numbers make sense, might go new. Really really don’t want a car payment though.