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The Magic Cafe Forum Index » » Not very magical, still... » » Need Advice Re Purchasing a Vehicle (0 Likes) Printer Friendly Version

Chrystal
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Canada/France
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Hi Everyone,

I am seriously thinking of purchasing a Ford Escape. Ever since I rented one in July - the moment I drove it - I wanted one. My van recently died and luckily this time around the repair bill was only 300 (frozen fuel line). It's a 97 and although not given me any problems - maybe time for a new vehicle? The couple that GAVE me the van 2 years ago had a fleet of them since he was in the car parts industry and added all sorts of high techie things on it. They gave it to me to keep up work I do with animal rescue. I want to in turn pass it along to someone else as I'm not sure if it's worth trading it in.

This is the time of year to purchase a car from what most reports I've read have stated. Okay now here's where I need help.

There was a fully loaded 2008 limited edition one at the dealers. The price 24,000. It had 42 KM on it. New ones 2009(base model) go for aprox the same price. I know this is a deal as the limited ones go as high as 40,000 grand...gasp!

I also know that car dealers in the US and Canada where I live have been scrambling due to the economy. I want tips on how to wheel and deal to get the best price. What's a fair offer and what do I say? Remember I'm in Canada but only mentioning it as traditionally we pay more for our vehicles.

I'm also debating whether to buy outright or lease? 3 yrs or 5? I'd appreciate any feedback and the pros and cons of both decisions. Or is not the time to think about a vehicle and just drive my van until it dies? What would you guys do?

Thanks in advance~

Chrystal
LobowolfXXX
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La Famiglia
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Check legal aspects in your country. My understanding in the United States is that there is a time frame within which (I believe it's three days) you're permitted to change your financing choice. As auto dealerships here make a significant portion of their money on the financing, not the sale, you can get some good deals on the sale price...then having made the deal on the purchase, you can switch to a more favorable financing arrangement (outside the dealer). The upshot is that it's very advantageous, if you're able, to arrange financing (through, for instance a credit union, if you have one) before going to the dealer. It's not necessarily the price that will get you; it's the terms.

None of this is intended as a legal opinion; it's a summary of secondhand information I've gleaned from people with a greater understanding of the issue than I have.
"Torture doesn't work" lol
Guess they forgot to tell Bill Buckley.

"...as we reason and love, we are able to hope. And hope enables us to resist those things that would enslave us."
NicholasD
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You're right about now being the time to buy. I purchased a car in May and the same car is selling for $3,000.00 less today.

When you said you might buy outright, do you mean pay cash?

My advice is this: If you have the funds, paying cash is better than financing. If you must finance, compare rates between your bank, credit union and the dealer and take the one with the lowest rate. Also, ask each how much the payment will be. Sometimes the one with the lower rate has a higher payment because of extra items that have been added. And - finance for as short a period of time as you can.

Finally, don't lease. That would cost the most in the long term.

With regard to haggling with the dealer, check dealerships and consumer guides on the internet for prices and current deals. Go to the dealership with a maximum in mind that you are willing to pay.

I hope some of this helps.

Nick
LobowolfXXX
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But don't tell them you're going to pay cash upfront; if they think they can't make the money on the financing, they'll try to make it on the purchase price.
"Torture doesn't work" lol
Guess they forgot to tell Bill Buckley.

"...as we reason and love, we are able to hope. And hope enables us to resist those things that would enslave us."
Chrystal
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Canada/France
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Thanks so much to you both for the advice and it does help.

I don't have all the cash on hand (sorry for the confusion but do have 10 grand ) although I prefer to only use 1/2 of it and keep some for emergency funds). I meant I didn't know if I should just arrange leasing or purchase the vehicle. I think now I'm leaning more towards purchasing the vehicle.

I'll check out the bank rates and see what they offer. Thanks again for that advice! I quess I'd better check it out further as although the monthly fee was going to be aprox 384 from dealership financing, so not that bad, especially if I pay in b/w payments).

I'll check out the bank rates too.

Chrystal
Scott Compton
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Hampton, VA
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Chrystal,

Leasing is the absolute worst way to purchase for an individual. With corporations, that can differ. Consider this:

Find an affordable, quality vehicle for $5000 and pay cash for it; or repair the van. Then, for 3 years, put $350 in an account each month. After 3 years, you should have $12,600 in the bank, minus whatever you have to pay to keep the van, or new(er) car going. Then, at the end of the 3 years, sell the van, or new(er) car and add what you have saved and pay cash for a nice newer vehicle, and you will own it outright. There are some great deals out there now, with the ailing economies.

OR....

GM just announced some 0% interest cars with low prices yesterday!

Scott
Magic is an art. I am merely a tour guide.
http://www.facebook.com/pages/Scott-Compton-Magician/160270640674735

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Tom Cutts
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Yes, do all your background work. Buy only as much car as you need. Your greatest bargaining tool is walking away from the offer.
MagiClyde
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Quote:
Leasing is the absolute worst way to purchase for an individual


Leasing is NOT buying. You are essentially renting the vehicle over an extended period of time with NOTHING to show for it in the end!!!!! I should know, as I went that route shortly after a drunk rammed into the back of my car in 2005! It caused me to lose about $6,000 dollars that could have gotten me into something to call my own and been quite happy with. I will never do that again!
Magic! The quicker picker-upper!
Douglas Lippert
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E Pluribus Unum
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I bought a Mazda 3 at 0% financing over the summer. If you can't get 0% then it's not worth it.
Douglas Lippert
Former I.B.M. Ring #8 Secretary
http://www.facebook.com/Doug.Lippert
rossmacrae
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You really ought to read THIS - might give you some cautions. The rest of the blog should be informative as well.
abc
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The legalities differ from country to country so it would be wise to seek an opinion from someone that can offer proper legal advice.
When comparing leasing to purchasing and then also the term the main thing you should look at is the tax deduction generated through different payment methods and how much you can legally deprciate the vehicle.
If you are an individual purchasing a car to drive around in then just buy it. DOn't get carried away in all the nonsense some people on dealership floors tell you. I say this because I used to be one of those people. In fact I trained them.
Go to the dealership an apply for their finance and get a signed OTP (Offer to purchase that states the price of the vehicle and everything it includes).
Shop around for finance and like you have been told, unless the tax benefits are huge, which I doubt because you are purchasing the vehicle as an individual, don't lease.
You are allowed to change the finance and even when the economy is good the dealership would rather sell the car and make less than not sell the car. They will not cancel the deal unless the price is specifically associated with a certain financial package and most of the time this is done to move units that are not being sold well or have been overproduced. In that case rather don't buy it because you are going to get little when you trade or sell later.
Magnus Eisengrim
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Sulla placed heads on
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Hi Chrystal. When I bought my most recent vehicle (a Subaru, BTW and I love it--especially in the winter) I spent a lot of time in the public library looking over the various consumer books that they have. Phil Edmonston's Lemon Aid is geared for the Canadian car buyer and is full of excellent advice and information.

BTW, here's Edmonston's web site.

Good luck.

John
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned;
The best lack all conviction, while the worst
Are full of passionate intensity.--Yeats
Chrystal
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Thanks for all the valuable info to each and everyone of you and it all helped.

In the end It became increasingly clear to me, "do I need it or do I want it?" I guess I wanted it and will probably need it, but not now.

My van was fixed for aprox 300 dollars but I have yet to pick it up as I rented a Jeep Commander last week to get around in unprecedented snowfall here in the Pacific Northwest. Yes, we here on the WestCoast have been spoiled and we are whimps when it comes to snow. People in the East you have my utter respect!

I've rent different vehicles from time to time which is why I knew I wanted a Ford Escape ,I had rented one for a few days in July. The Jeep Commander was great that's a nice ride too!! Last night, I had to go out for an emergency as a family member was ill and normally I am terrified of driving in bad weather. It was a blizzard and warnings were out for people to stay in and avoid driving. My worse fear tripled and I was apprehensive about having to drive in blizzard conditions. There were very few vehicles on the road and the Jeep drove amazingly well. It was a record snowfall not seen since 1964, according to the news, and snow only hits this area once every 10 years or so. Chances are I wouldn't need a Jeep but sure came in handy last night and showed me a reliable vehicle is worth it's weight in gold even if the emergency only came up once or twice in years to come.,

In the end I've decided to wait, Keep the rental for another 4 days,(weather is forecasted to warm up by tomorrow but the roads will be major slushy for a few days after). I will keep all this valuable info tucked away. Thanks to all for the taking the time to post. I'm grateful!

Chrystal
Chad C.
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Quote:
On 2009-01-01 18:35, Scott Compton wrote:
Chrystal,

Leasing is the absolute worst way to purchase for an individual. With corporations, that can differ. Consider this:

Find an affordable, quality vehicle for $5000 and pay cash for it; or repair the van. Then, for 3 years, put $350 in an account each month. After 3 years, you should have $12,600 in the bank, minus whatever you have to pay to keep the van, or new(er) car going. Then, at the end of the 3 years, sell the van, or new(er) car and add what you have saved and pay cash for a nice newer vehicle, and you will own it outright. There are some great deals out there now, with the ailing economies.



Scott


This is the best advice given on this thread.
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