Anyone buy a new car recently?

[JeffW]

I need to get a replacement car for my wife. Though she doesn't drive much, since I'm getting something newer (previous car was a '90 Honda Accord), for safety reasons, I'd like to get one with at least antilock brakes (ABS) and front airbags. I'd also prefer side (curtain) airbags.

These features seemed to push me into at least 2002 and beyond vehicles. Right now, we're leaning towards a Toyota Corolla or a Mazda 3 (both 4 dr sedans). Used would have been fine, however it seems like I'm looking at $10k+, and that isn't definite, as for these earlier years, some of these features (airbags (front and/or side)) were optional, meaning I need to drill down into a vehicle description to find them. Since they are rarer features, I'm thinking that might drive the price up.

I've noticed dealers listing some of those vehicles new in the $13k range. I can't get something that cheap: for the Corolla, air conditioning seems to be a mandatory $900 option; for Mazda, it's about the same to get an automatic.

I'm wondering though, with the economy, what the chances are of getting an even better price? I really don't want to get new: it would a newer car than I drive ('06), insurance will be higher, and she just doesn't drive that much to really justify it. However, if it's $2k difference between a used car, and perhaps a new one, it would almost be foolish not to go with the new one. One factor that may push towards used is I might be able to find a more fully equipped used car for the price of a 'stripped' new one.

Any thoughts? Thanks.

Jeff

 

[funtime]

Since dealing with car dealerships is akin to skating on jello I can never be definate of the savings I got when I purchased a 2008 car in Sep (used with 12,000 miles) rather than a 2009 Toyota. This was before all the car disaster stories which I think have probably depressed prices after I bought. I figured that I saved about 1500 to 2000 getting the used versus the new which I did not think was that much of a savings. However, it was a Toyota Camry and I liked the color and sunroof of the slightly used car. And the dealership gave me a 100,000 mile warranty for 1,000 more.

Another thing to factor in is new car incentives including potential of zero percent financing.

As to older models, once gas prices hit the skids this summer, all of the Corollas and similar cars that were only a few years old enjoyed an uptick in value so they are not that good of a deal as they might have been a few years ago.

I would look toward warranties and financing as that might make a difference. Funtime

 

[SpikeMauler]

There are great deals out there now. I bought new 2008 Jeep a month ago for 50% off MSRP. Just gotta hope they stay in business.

 

[wackymother]

I need to get a replacement car for my wife. Though she doesn't drive much, since I'm getting something newer (previous car was a '90 Honda Accord), for safety reasons, I'd like to get one with at least antilock brakes (ABS) and front airbags. I'd also prefer side (curtain) airbags.

These features seemed to push me into at least 2002 and beyond vehicles. Right now, we're leaning towards a Toyota Corolla or a Mazda 3 (both 4 dr sedans). Used would have been fine, however it seems like I'm looking at $10k+, and that isn't definite, as for these earlier years, some of these features (airbags (front and/or side)) were optional, meaning I need to drill down into a vehicle description to find them. Since they are rarer features, I'm thinking that might drive the price up.

I've noticed dealers listing some of those vehicles new in the $13k range. I can't get something that cheap: for the Corolla, air conditioning seems to be a mandatory $900 option; for Mazda, it's about the same to get an automatic.

I'm wondering though, with the economy, what the chances are of getting an even better price? I really don't want to get new: it would a newer car than I drive ('06), insurance will be higher, and she just doesn't drive that much to really justify it. However, if it's $2k difference between a used car, and perhaps a new one, it would almost be foolish not to go with the new one. One factor that may push towards used is I might be able to find a more fully equipped used car for the price of a 'stripped' new one.

Any thoughts? Thanks.

Jeff

We bought a used car a couple of years ago, and now we're looking for another one. We've noticed the same thing you have, that the prices are "compressed" the closer you get to a new car. That's especially true when you're looking at used cars from a dealer that mostly handles new cars. I think they like to be able to say, "But for only $2,000 more you can have this NEW car!"

For one of the cars we're looking at, a Honda Odyssey, the new ones range from about $27K "stripped" to about $40K "loaded." That's a big difference! But to me, even if I'm getting the "loaded" used version for just a little less than the "stripped" new version, it doesn't seem like enough of a savings.

 

[Luanne]

Yes, bought a new car in August. Got a 2008 Prius. No dealing, in fact we had to wait a couple of months to get what we wanted. I love it, it's the best "toy" I've ever had.

 

[jayn]

Purchased a 2009 Hyundai Sonata for 16,500 dollars. 5yr/60,000mi year bumper to bumper warrenty and 10yr/100000mi drivetrain warrenty. ABS, power wins/doors ac etc. These cars are probably selling for a little less than the price I paid. Airbags are front and side. Lots of safety features including roadside assistance.

Hope this helps.

 

[Glynda]

Honda

We bought our daughter a 2009 Honda Fit for Christmas. $400 was all we got off. We would choose a manufacturer who made a profit this year and a car that is in high demand. Sigh.

We found the same thing when looking at used Hondas. Those just a couple of years old were very close to the price of the new.

It's just the cutest car. I couldn't believe how roomy it is and I love the features. It handles well and is really peppy. I drive a Lexus but for an about town and short trip car, I would be perfectly happy with the Fit.

We parked it outside her house, put a big red bow on it and told her to come outside and help us bring in the presents. She was stunned and thrilled and cried for days everytime she talked about it. Her old car was a two door 1996 Acura and was falling apart and she couldn't afford another.

 

[wackymother]

Hey, Jeff, btw, if you are a member of Costco, you might want to look at their new car buying service. I went on the website and they seemed to be saying that they could get me a new Sienna for four or five thousand off the sticker price. It's under Services on the Costco website.

 

[caribbeansun]

To your question around used pricing with ABS and airbags, to the best of my knowledge, are not adjustment factors in the black book whereas A/C is usually around a $300 adjustment.

 

[Dori]

We bought a new Hyundai Elantra in August and we really like it. The Accent was just a little too small, but we felt we didn't need all the room of the Sonata. The price was good and, according to several friends who own Hyundais, their service record is commendable.

Dori

 

[falmouth3]

We bought our Toyota Corolla new in 2005. Since we wanted a stick shift, and only a radio/CD player and A/C, they had very few on the lot. One, in fact. And this was a large dealership. The sticker price was over $15K. With almost no dickering, the price came down to just above $13K. The point of this story is to say that if you want something that almost no one else wants, you can also get a great deal. Our friends bought an orange (yes orange) car that I think is hideous, but they got a great deal because no one else wanted it.

 

[JeffW]

Thanks so far for all the replies. wackymother hit it on the head - "price compression" is definitely what I think I'll encounter. We're still trying to decide on which car my wife wants (she already eliminated the 5 door hatchbacks (Matrix & Protege) - doesn't like the boxy look). Once we narrow it down to one model, it will be easier to start looking for a particular used cars, and then compare with new.

In regards to wackmother's followup post, we're members of Costco, Sam's, and BJ's, and I know about their auto buying service. I tried to use it once before, but it didn't seem to offer much savings. I sort of figured that they offered a "standard" discount, whereas what I'm looking for now is hopefully a larger "depressed sales market" discount.

I'm reluctant to start talking with a new car salesman initially:
1. once my wife gets wind I'm thinking about new, she won't look at used again.
2. I don't want to get involved in, "here's what I can do for a new car price, but you need to act today..."
I figure once I find my best used car price, I can talk to a dealer, and have a price-point on what premium I'd pay to maybe get new.

I have read over the past year (as fuel prices skyrocketed) that smaller cars like the Corolla and Civic have risen in price, since people were looking for more fuel-efficient cars (higher demand -> higher prices). While that's not our major reason for being interested in them (we just want a small car that reliable), it's probably contributing to the price compression.

Thanks for all the comments, keep them coming. We're hoping to look at some cars today, if so, I'll provide an update.

Jeff

 

[falmouth3]

Jeff, I also wanted to say that we replaced our Mazda Protege with the Corolla. We had just about sold ourselves on the Mazda 3 until we test drove it. It had a much more sporty feel to it than we wanted. So, my advice is to keep an open mind and try out several car models in the category before you purchase.

Good luck!

Sue

 

[elaine]

wakcymother--stripped sienna are $21K in DC area

my friend just car shopped this week. Stripped new Siennas are $21K. Also, when I use carmax.com and look for new sienna to get ball park price, there are 6+ at MD dealer for $21K. Friend said stripped does not have cruise control. We are also debating Sienna or SUV (see my SUV TUG post). Elaine

 

[wackymother]

I have read over the past year (as fuel prices skyrocketed) that smaller cars like the Corolla and Civic have risen in price, since people were looking for more fuel-efficient cars (higher demand -> higher prices). While that's not our major reason for being interested in them (we just want a small car that reliable), it's probably contributing to the price compression.

Thanks for all the comments, keep them coming. We're hoping to look at some cars today, if so, I'll provide an update.

Jeff

The used car we bought two or three years ago is a Corolla. It was before the gas prices really soared, but my DH wanted a smaller car for commuting. We REALLY saw price compression on Corollas--good used ones were literally only $200 less than new ones.

In the end, the one we got was what they call "an ugly car" on CarTalk. It was the dealer's beater, that the salesmen used to drive between dealerships or to take buyers here or there. It had two major accidents on its CarFax and the body is definitely dinged-up...we always say that every time the light hits it from a different angle, we see new scratches. Of course we took it to our mechanic for a thorough going-over before we bought it.

It serves its purpose, and the price was super-reasonable because the dealer was embarrassed to have it on the lot! DH loves it. It gets really good mileage, too, better than it's "supposed" to.

 

[wackymother]

my friend just car shopped this week. Stripped new Siennas are $21K. Also, when I use carmax.com and look for new sienna to get ball park price, there are 6+ at MD dealer for $21K. Friend said stripped does not have cruise control. We are also debating Sienna or SUV (see my SUV TUG post). Elaine

Really? Wow, $21K. That's a good price. (And I looooove that coppery orange color--I told DH that if Siennas came in copper, we would buy a new one.) Still, this will be the "spare" car for us, so we're still looking for a good used one, trying to stay under $10K.

Another element that I always forget about is that insurance is higher the newer the car is....

 

[bluehende]

yesterday

Bought a 2009 ford fusion yesterday for 16.7k + tax and tags. This was 4600 off the sticker. Its fairly well loaded but not top of the line. Everything you need but no great toys other than 6cd changer. I had to actually finance some to get some weird 500 rebate for financing. Rate is high but only need to go 8500 for 3 months til I can pay it off and not have to give them back the 500.

Wayne

 

[KauaiMark]

Yaris...

My old 94 Saturn developed a fatal heart attack last summer and I wanted just cheap, reliable, basic, high MPG transportation.

We bought a new 2008 3-door Yaris for $11.5K

It's an odd looking thing but I'm liking it more as I get used it's quirks. I'm extremely impressed with the fuel economy as I'm averaging 33-34 mpg in just around town driving.

 

[JeffW]

Just an update that I have no major update . Events of our day yesterday ran a lot longer than expected, which basically wiped out most of our shopping time.

We did get to stop at a Toyota dealership for about 15 min; when I told the salesman I was looking for a used Corolla with ABS, air bag, curtain airbags, he almost immediately suggested a 2009 model. He did freely agree with me that finding those in a used car would be difficult, whereas I think they all might be standard equipment in a new car.

My wife sat in the Corolla and thought it was 'nice', but we had no opportunity to take it for a drive. With a blast of cold weather coming this weekend, not sure when we'll get out to look again.

Jeff

 

[wackymother]

We did get to stop at a Toyota dealership for about 15 min; when I told the salesman I was looking for a used Corolla with ABS, air bag, curtain airbags, he almost immediately suggested a 2009 model. He did freely agree with me that finding those in a used car would be difficult, whereas I think they all might be standard equipment in a new car.

They ALL say that. Remember they're trained to try to get you into a new car. It might be true, but don't take the salesperson's word for it.

And sales must be so, so slow right now--I put a query in through my DH's union's car-buying service yesterday and had three phone calls and six e-mails from dealerships within half an hour.

They were all very disappointed to learn what I was looking for--NOT the 2008 models the service had told them we wanted! But only one said he would talk to his manager about watching for an older trade-in for us.

 

[ondeadlin]

My wife works in the auto media and, as such, test drives everything.

She gives the Mazda 3 very high marks.

Given the parameters you've described, she'd suggest you look at the Pontiac Vibe. It's the same exact car as the Toyota Matrix - GM and Toyota share a factory, but Toyota really runs it.

You can often find very good deals on the Vibe - especially lightly used - and it has a good rep for reliability.

 

[davhu1]

In regards to wackmother's followup post, we're members of Costco, Sam's, and BJ's, and I know about their auto buying service. I tried to use it once before, but it didn't seem to offer much savings.

I'm reluctant to start talking with a new car salesman initially:
1. once my wife gets wind I'm thinking about new, she won't look at used again.
2. I don't want to get involved in, "here's what I can do for a new car price, but you need to act today..."
I figure once I find my best used car price, I can talk to a dealer, and have a price-point on what premium I'd pay to maybe get new.

We also tried Coscto and not much discount. If you buying new, tried getting a quote from autobytel. The last car we bought, I went to the dealer website and asked for internet price. We ended up getting one from a mazda dealer in PA near the Poconos and saved us hundreds from the dealer in the DC area and over a thousand less than the dealer showroom asking price. Make sure you ask for out-of-the-door price, what exactly is included and the VIN number. If you don't, you willl find out the saleman will try to tag on additional fees (If you don't get a VIN number, they really do not have a car for you and they are just trying to get you in the showroom). The process was quite simple. They emailed me the info. I send back a copy of the driver license and insurance. Agreed on a pickup time. When we got to the dealer, they walked thru the car with us. Sign the paper, gave them the check, got the keys, and out of the dealer in less than 15 min.

 

[Art4th]

We got my wife a 2008 Mazda 3 hatchback (2.3L engine) and she loves it! It is fun to drive, but it only gets about 25 mpg. She wanted a Honda Fit but they aren't available with a sunroof which is a feature she wanted.

 

[JeffW]

We did get a car, more on that later.

Last Friday, we went to a local Toyota dealer (recently rebuilt, HUGE complex). Looked at and drove a Corolla, wife not interested in it. Saw a 2006 Civic 2dr near it, wanted to drive it. She sort of liked it, I hated it (it's the one with the dual dash, front window FAR away, etc). When we went back into the showroom after the drives, she asks how she likes it, wife says, "It was nice". Saleswoman asks if she'd be interested in buying it today, we say no. She says, "How about if I drop it $1000?" I still say no, "We have some other cars we want to look at." Used car manager comes over, asks if everything was okay, we say yes. We leave and head on to the next dealership, a Mazda one (this was around 430pm on Friday).

[As to not digress from the Mazda story, by the time we got home (9pm) on Friday, she had called and left a message. The used car manager called at 905am on Saturday (we let it go to VM), and she called again by noon.]

We went to a Mazda dealership, wife really liked the Mazda3's. Took out a 2007 for a test drive (2.0L i model), then a 2.3L s, and finally a 2.3L s SP23 (special edition). This was what we ended up getting. For those familar with the Mazda 3, it starts with the 2.3L S model, and adds:

- heated two-tone leather seats
- moonroof (tilt and open)
- 6 disc CD changer w/ Bose speakers
- 17" alloy wheels with tire pressure monitor
- HID headlights with inside height adjustment
- auto headlights
- rain sensing wipers
- aftermarket tinted windows (which we can get taken off for free, we're deciding if we want them or not)

39k miles w/ Mazda used car certification. Asking (internet) price was $14977. I was hoping for a similar discount as for the Civic, but the guy didn't seem like he was going to drop it much (said "our prices are already competative"). Best I was able to do is in exchange for not taking a free Cobra GPS (already bought the wife a Garmin for Christmas), he dropped the price $200, and threw in some service items (new battery, alignment, wipers, wheel locks, and updated inspection). I would have liked to have gotten more, but I think it was a fair price (for a very rare care that we couldn't have easily duplicated).

Jeff

 

[Icarus]

why is it rare? That's the same model Mazda 3 we got over 2 years ago, and those options (except the after market tinted windows) were all included. It wasn't called a special edition then. It was grand touring or something like that.

It was a very nice car. She didn't end up keeping it though. She traded it in for some sort of SUV after the divorce, which she ended up selling before she left the island in December.

I liked driving that mazda 3. Did you get the hatchback version?

-David