advice on car buying

Hi! I am not sure which newsgroup to post this question on, so please
forgive me if it is not appropriate for this group.

I will be graduating college in a few months, and my wife and I will
both have jobs that require a car commute. Thus, we'll need to have
two cars. We are just coming out of college, so buying two new cars
might be too much of a financial burden on us. We would like to get
one new car (probably a compact since we don't have kids), and another
car. The 2nd car is the tough one.... we are thinking about leasing or
buying a used one from a dealer. Any opinions? Or any advice about car
loans and such?

Also, if you have any strong preference to recommended cars (compacts
and sedans; no SUVs or vans) that are fuel efficient and reliable,
please let me know.

Thanks!

"G" > wrote in message
...

> Also, if you have any strong preference to recommended cars (compacts
> and sedans; no SUVs or vans) that are fuel efficient and reliable,
> please let me know.
>
> Thanks!

You have a lot of decent choices. If you live in mountain or severe weather
environments, I have heard Suburu recommended as they have a decent four
wheel system and have a good reputation for reliability.

Toyota, Honda and its Acura alter ego, and Nissan all make economical,
tractable, and dependable rides. I would consider one of these.

I would avoid used BWM, Mercedes, Volvo, and SAAB although they may be
fine cars when new, some are quirkily overengineered and have expensive
garage habits.

I can't say much about Chrysler. One of my cars is a Dodge van, behaves
well, gets good mileage for its type, and has never caused any problems but
there
have been certain items of the Chrysler line that have had some problems.
Ditto Ford particularly Taurus and its ilk.

I'm sure that you can find plenty of info he

http://www.google.com

Toyota Camry or Corolla come to mind as cars that represent excellent
value and are quite reliable. Most of the used cars on dealer lots
have either come off lease or have been purchased at auction.
Consequently neither you nor the dealer will know whether the car was
properly maintained or not. So, while you will pay more, be sure to
look for a car with an extended warranty and ask to see a copy of the
CarFax report.

You can save some money by buying privately, but you really have to
know what you are doing. Insist on seeing receipts to show that
maintenance has been kept up and take the car into a mechanic for a
pre-purchase inspection.

Unless you plan to turn over cars every 3 or 4 years, I would buy
rather than lease. It will be much less expensive. And if you do
finance the car, be sure to do it for the shortest period and for the
least amount that you can afford. Avoid 5 year loans and try for 3
years.

I read that Hyundai's are quite reliable now. I have mostly heard just
about the Sonata, but not much about the Elantra. Has anyone had
personal experiences with that car?

> writes:

> I'm sure that you can find plenty of info he

> http://www.google.com


This reflexive invocation of Google whenever anybody dares to
ask a question on Usenet is really becoming obnoxious. Has it
ever occurred to you that perhaps the original poster was hoping
to start a discussion? Or that points can be raised and answered
in such a discussion that wouldn't necessarily occur to someone
who was using a search engine?

If you feel that your time would be wasted by answering such ques-
tions, then don't respond. Of course, if your time were all that
valuable, you wouldn't be dicking around onm Usenet in the first
place, now would you?



Geoff

--
"Yah-hah, evil spider woman! I have captured you by the short rabbits
and can now deliver you violently to your gynecologist for a thorough
extermination."

"John S." > wrote in message
>
> Unless you plan to turn over cars every 3 or 4 years, I would buy
> rather than lease. It will be much less expensive. And if you do
> finance the car, be sure to do it for the shortest period and for the
> least amount that you can afford. Avoid 5 year loans and try for 3
> years.

I agree, John...Leasing, IMHO, is not usually a wise idea financially unless
you have a business and can write off the lease payments or if you simply
cannot get up enough money or credit to buy.

Leasing companies wouldn't do it unless they made money...If they make money
off you, you normally lose money that you didnt have to spend, tax dodges,
etc excluded.

Coming from an ex car salesman, here is my advice....


NEVER buy a brand new car!

Unless of course money isnt an issue.

Always buy something that is at least two years old.

Look for something fresh off a lease.

Used car lots are full of 'em.

The money you'll spend on a new car can be better spent elsewhere.
Cars off lease are generaly well maintained, have reasonable mileage,
still have a warranty, and usually have all quirks and recalls taken
care of.

If you want a NEW car every two years or so, then go lease one.

If you do buy from a dealer, DONT use their finance guy.

The Buick dealership I worked for had a finance guy on commission. Most
people think that the sales guy is the one to watch out for. The
finance manager was worse.

Here was a guy who never left his desk. The sales staff brought him all
his customers. HE was making close to $100 grand.

If you need to finance, go to your bank and see what they have to offer.

"NEVER buy a brand new car!"
And why not??? If you buy and hold a car for the financially sensible
200,000 plus miles it works out quite well.

"Look for something fresh off a lease."
Actually lease cars can be some of the least well maintained cars in my
experience. The lessees have no interest in doing anything more than
the absolute minumum in maintenance because they will turn the car back
in in 36 months.

"If you need to finance, go to your bank and see what they have to
offer."
Actually that is not always so. A buyer should compare rates between
the bank and dealer and see what is the better deal. My dealer had
three financing banks and one of them beat local bank rates by 1.75% on
a 24 month loan.

"If you want a NEW car every two years or so, then go lease one."
Buying or leasing a new car every 2 years is incredibly poor financial
advice. You will be paying over and over for the heavy first two year
depreciation on any new car.

As we all know, a cars value drops off significantly after you buy it.
(new that is)
If you let somebody else shoulder that financial burden ( buying used
or off lease) that sharp drop in value wont hit you. After two or so
years, that drop levels out some. Thats where you are saving money.
You're still getting a pretty new car but the cost to you has changed.

Example...

2005 Chevy Impala 3.4 23,000.00 retail

compared to

2003 Chevy Impala 3.4 13,000.00 retail

(prices from Kelly Blue Book)

With that kind of difference you can buy TWO 2003 Impalas for the price
of ONE new one.

NOW go and hold on to it for 200,000 miles.

Given this fact, how can you say that buying new "works out quite
well"?


As far as maintenance goes and the condition of the car (used or off
lease) you still need to use good judgement.



Sure a dealer may have lower rates but the also have ways to get more
money out of you.
One "trick" I know of... "How much do want to spend a month on your
payment?" the dealership may ask. You say $XXX.XX. They might give you
a better interest rate but might also change to price of the car. You
get the rate and the payment you want. The dealer gets the price they
want.

I'm not saying all dealers work this way, but some do.


And I agree with you, leasing or buying a new car every few years does
not make good financial sense, but many people want a new car every two
years. If this is the case, then a lease might be your best bet.


One other note when working with dealerships.
If you have a trade in, dont let them know untill you have finalized a
price on the car you want to buy. When you feel that you've haggled the
best you can, THEN ask what they will give you for your trade in. But
watch out, this is a good way to tick off a sales person!