New or used!
 

Well wife says it is time to retire the old 2005 rav4, so time to get a new/er small suv.

Hear all the black Friday sales are on and 0% intrest on new vehicles, sound attractive but as soon as we drive the new wheels of the lot we lose probably 6grand.

So what about newer used with low km intrest rate is higher (no idea what it is)
I find used are pretty pricey, would you think those prices are coming down due to the economic slump?

What would you do?

It has been at least 10 years that we bought a vehicle from a dealer.

If your buying slightly used, it would still be cheaper to buy private rather than a dealership at 0% interest.

Not knowing what is wrong with the Rav, it's hard to say "what's the most cost effective". That said with an 05, if it doesn't have 400,000 + km's, it would seem that keeping it is by far the most cost effective.

When we wanted, note the use of wanted, a bigger vehicle to pull trailer etc. we went the "buy a lease back from an established vehicle broker, not a Dealer". That has turned out to be a good decision, but we were happy driving a three year old vehicle used to the extent of 50,000 km's.

All I got from Dealers was double talk and a sales effort to get all of the retail Black book for themselves. which is understandable, that's their business "capture as much of my $ as is possible". Dealers are not your friend.

Stepsons Fort Mac buddy traded in his 2010 Tundra last year for a new Duramax.
Dealer gave him 11K for his trade and detailed/inspected it and relisted it for 26K

there are pros and cons to both obviously. I worked at a large financial institution doing consumer lending mortgages loans ect. when it comes to a private sale unless you are paying cash you have 2 options line of credit or personal loan and interest rates will vary line of credits tend to linger and people tend not to pay them off and just pay interest and not the principle. a car loan on a used vehicle from the bank requires it to be newer typically 5 years max and interest rates are typically high 7-12% making payments high.

new from a dealership financing is easy to get and at 0% payments are low in relation to the cost of the vehicle.

on a $43,000 new dealership vehicle @ 0% over 72 months monthly payment will be $598

on a used $30,000 vehicle at 7% monthly payments are over 5 Years as most banks wont finance longer monthly payment is $594 and it is still going to loose value

I know what I would do...

think of it this way you buy a new gun use it for 3 years it loses value. same thing with a car so don't get caught up on the loss of value consumer goods are depreciating assets. its not a house/property that your expecting to sell for profit/gain.

and it sounds like you got good use out of your last one considering you had it for 10 years

i always buy new , mostly because i don't want to buy someone elses headache .but i work at a dealership so i dont have to deal with salesmen.

At 0% I figure it is worth going new. We did recently after a bunch of research. Good warranty, knowing the full history of the vehicle and being able to get it exactly as you want were big enough pluses.

Added to that were some of the incentives at the time, which basically cemented the deal for us.

We bought a new SUV for the wife this last summer. First brand new vehicle for either of us and first one we didn't pay outright cash for. As stated low interest rates on new and being able to maintain it from new (and know how it was driven) were incentives.

The cheapest option is always to keep the vehicle you have so long as it's not got any huge problems and you can do basic repairs yourself. Paying cash for vehicles a few years old and driving them for 10 years is probably the cheapest option for your transport needs, but new is nice too.

Whenever I want a new car I always wish I could stop people who are about to trade in and give them $1000 more than the dealer. Then I'd get a bargain and they'd be $1000 better off.

If he'd put his on kijiji for $15k he would have had 100 people in 10 minutes lining up to buy.

I always buy new every 3 years.
Only used vehicles I buy are for hunting and winter driving around here.They throw so much salt and sand on the roads here vehicles rust out in no time

:sHa_shakeshout:

Keep driving Rav 4 10 more years. Great little vehicle. Take your $$ invest in Retirement fund, TFSA. Retire early. vehicles worst investment you can make.
Sam Walton (Walmart founder drove old pickup), when he was one of the wealthiest men on earth.
:sHa_shakeshout:

The old rav is being used as a commuter 30 min down the highway, it is very noisy, and loud, for in the city it is not bad, very easy to park and buzzing around.

So we are basically looking for something small, and today we test drove many vehicles, from 2013 Honda crv- to 2014 jeep Cherokee's. so far we liked the Mazda CX5 and the Jeep Cherokee the best, quiet on the highway, and solid.

At least we have a budget ($25000) and we can scrap many vehicles off the list.

But man I hate dealerships and those slimy smooth talking suit filled salesmen.

how much do you want for the rav 4?

Interesting about Walton.
Warren buffet is the same way says he buys a used sedan every decade or so.
Just can't make themselves make such a poor financial decision even though they have more money then God.

As a person who has been in the auto industry, I would advise you to shop, as you have many options, however if the vehicle you are looking for is available at a 0% interest rate, your monthly payment may be VERY similar to a used vehicle with a 7 % interest rate. $24000 over 60 months at a 7% interest will cost you 475 monthly were as a $30000 at 0% will cost you 500 monthly over 60 months. $25 a month is a small price to pay for a vehicle that is brand new full of warranty and roadside assistance. Check out bmo loan calculator. Great tool when purchasing a car!!! Good luck

Really have to shop around to get a good deal usually. The further away from new the more deals one can find. When signing for 0% if you go that route, really make sure you are getting 0%. Check the paper you sign and do the math yourself, as there has been a number of people ripped off by not doing this. A guy dad has coffee with was going to pay cash and they said why do that when we can give you 0% and keep the money in the bank getting interest. He signed and they dinged him with interest, and going back to the dealer they said no they never offered him 0% on that vehicle.

happens time and time again ...
 

wish people would start realizing how much they pay for that fancy waiting room and free expresso and the stealerships ... it's been better than 10 yrs since i've done a deal with them and don't plan to in the future.

they really are insulting to a man's intelligence ...

again - had your buddy listed the tundra for eleven grand he'd have fight club on his driveway with eager guys wanting his truck !

TBD

PS ... i've even stopped buying parts from these snivelers, for repairs your doing yourself check out online parts site - way cheaper.

all good quality parts oem standard like wrench monkey OR even OEM at http://www.toyotapartsdirect.ca/ for toyota parts ...

^ these guys are almost half what the parts dept in the stealerships charge and you get to deal with some who doesn't have a chip on their shoulders.

even more economical - auto wreckers or kijiji / ebay for the parts you need, buying used and your saving even more ...

I'm in the same boat for new vs. used. Haven't bit the bullet yet. It seems all the vehicle types I'm interested in are just too close to new prices.

You can't beat the new vehicle smell. :) Plus 3 years of trouble free driving is peace of mind! My preference too is new. Good luck to you.

meh !
 

WITH THE number of recalls lately "who wants new" - i've got a 2010 2500 dodge diesel that's been waiting for the front suspension recall - the last year now --- still haven't gotten it in .... some warranty service !

TBD

PS ... wish I could just do the recall myself and then get comp'd from toyota - i'd make up a nice FAT - juicy BILL (like they do) profits would prolly pay for diesel the rest of the year :sHa_sarcasticlol:

regarding used SUV's ...
 

i'll have the wif's 07 toyota sequoia UP on the board / kijiji soon.

... been mainly a grocery getter - 75,000 miles - sun roof high profile michellin tires tow package third row seating - sits 8 if you want ...

just had new brakes all around / and the timing belt done plus the expensive tranny / transfer fluid change (at the stealership for that one $500, couldn't do this myself as toyota's sealed off transmission components on these things) it'll be good for another 75,000 miles at least.

no accidents - always serviced with synthetic oils - babied !

prolly list it for 18 grand ...

let me know if anyones interested - i'til be postd on kijiji for more ...

Guys let compare New to 2 year used. New $50,000 2 years depreciation at 30% each year is $50,000-$15,000 = $35,000. Then 2nd year $35000 at 30%
is minus another $10,500 or $24,500. Which do you want to do make payments for 7 years or 3 years. Do the math guys. What difference does 50- 70k make on a vehicle that could go 500K if driven properly and oil/maintenance done regular basis.

New, 0 percent, pay it off quickly, enjoy the warranty, run it until it dies that is the only way you get the most bang for your buck. Last two vehicles I owned the old GMC went 21 years, owned it after three, replaced a few normal wear and tear items but had 18 years of no payments.
The jeep went 17 years same kinda deal...pay the buggers off quickly and at zero percent and say a seven year extended warranty your ahead of the game.
If you flip them and get into dept every other year you will never bank any money just keep throwing it out the window...but too each there own:sHa_sarcasticlol:

If it's 0% then you want to pay it off slowly. Because while inflation pushes your wages up, the payments stay the same.
So $49,999 in 5 years is worth less than it is today.
I have taken 0% deals in the past and put my money in high interest savings. Then just used that account to pay the monthly payment. So by the time I paid off the car my money had made me a profit.

Of course you have to watch. The domestic companies just put the price up and offer 0%. Or offer massive discounts with a higher interest.

I was just looking at a 0% Tundra deal...they took $5000 off for cash...so not really a 0% in my books. :thinking-006:

And I was thinking.....if the prices were way lower, and the interest way higher it would save on taxes....if I go back I'm going to ask for the price at 29% interest locked in....and see what they say.

From: http://www.theglobeandmail.com/globe...ticle20220953/

There is no such thing as a free lunch, but offers of 0 per cent and outrageously low-interest vehicle financing seem to contradict that adage.

Here’s the thing: “Interest-free” new-car loans can actually end up costing you more than if you had paid a higher interest rate.

Buying a new car is a significant financial decision. The choices you make at a dealership can easily add up to hundreds or thousands of dollars in savings. The key to maximizing your savings is to understand how new vehicle incentives work.

Cash rebate versus low finance rate

Auto makers often advertise thousands of dollars in savings or price reductions to entice buyers. These cash rebates are applied as direct discounts off the vehicle purchase price and they are generally in addition to discounts that can be negotiated with dealerships.

The catch is that these cash rebates are typically only available to buyers who purchase in cash and do not require financing (referred to as a “non-stackable” rebate).

The 2014 Nissan Murano SV, for example, features a $7,000 non-stackable cash rebate this month. Nissan is also offering 0-per-cent interest financing for up to 72 months on all Murano models. You must choose either the $7,000 rebate or 0 per cent financing. You can’t have both.

In some cases, a smaller portion of the cash rebate may be “stackable” and available for those who choose to finance at the auto maker’s discounted rates. But the reality is that free money does not exist, and the cost of borrowing ultimately has to be paid by someone – even if it is in the form of a forgone cash rebate.


Not all cash rebates and rates are easily found on auto-maker websites. Some websites, such as AutoFocus.ca, publish all current auto maker incentives for easy comparison.

When 0 per cent is worse

Zero-per-cent financing sounds attractive, but there are instances when you can actually save more by financing at a higher rate.

Non-stackable cash rebates cannot be combined with discounted financing rates from the auto maker, but you can get financing elsewhere, including an auto loan from a bank or a personal line of credit. Most dealerships can arrange bank financing for you.

If you financed the Murano SV at 0-per-cent interest for 48 months and no cash rebate, your payments would be $929 a month including taxes and mandatory fees, with a total purchase price of $44,576, assuming no additional dealer discount.

If you financed the same Murano at the standard Bank of Montreal auto loan interest rate of 3.99 per cent for 48 months, and took advantage of the $7,000 non-stackable cash rebate, your payment would only be $828 per month including taxes, for a total purchase price of $36,666.

Saving an extra $100 a month can be that easy. This auto loan calculator http://www.unhaggle.com/finance-calculator/s/ show that the total extra interest paid at 3.99 per cent for 48 months is slightly more than $3,000, but it is more than compensated for by the $7,000 cash rebate that is otherwise not available with 0-per-cent financing.

Next time you buy a new car, do the math to make sure you’re getting a great deal.