How much to put down on a car?

[cyra1ax]

Since I'm not a Beyond Baller:cry:, I have to go the financing route for a new car. There seems to be two camps to this debate: The "Put as little down as possible since you're financing a depreciating asset" and the "Put as much as possible/select the shortest term since its a depreciating asset".

Right now I'm thinking of putting down around 15K (This will be a 2016 WRX when they get released, working with current 2015 MSRP which is around $36K) and going with a three year term which according to the tool is at 3.9%.

Would love to get some help since there's so many ballers on here!

PS. We need a emote icon for "beyond baller".

[TomcoPDR]

What about just buying it with a Heloc?

[cyra1ax]

Originally posted by TomcoPDR
What about just buying it with a Heloc?

No house. Parents are in the process of buying a new house so I'll be there for a couple of years at least.

[killramos]

I would go with the max they will let you put on your credit card.

[benyl]

Lease put down 0.
Purchase, as much as you can.

[dubhead]

Do what I did skip the new WRX and buy a pre-owned S4 and end up paying less monthly for a way nicer car. Audi CPO finance rate is only 1.9% also.

As for the actual question the more you put down the less your going to be paying in interest.

[ddduke]

What about buying a used econobox for 10k with low km? That way you still have 5k in the bank and you don't have to make payments.

I don't really get the making monthly payments on a car unless it's a lease or less then 1% interest. Money can be used so much more wisely.

I don't see a reason why you need a brand new WRX.

[dubhead]

Econoboxes are boring buy something that puts a smile on you face everyday. I'm glad I did.

Edit:

Sounds like you are possibly a young guy without a whole lot of responsibilities right now ever think of taking some of that money and going traveling/backpacking? You have your whole life to have a car loan seems like you might be in a postion to see a bit of the world instead

[BigMass]

zero. Don't go into debt for anything but a home. Buy what you have saved for an can afford. 15k will buy you a very nice car.

[FixedGear]

I agree with the above posters - don't borrow money to buy a new car.

EDIT:

If you're living with your parents, you should be saving your money rather than wasting $36k on a brand new car. Even $15k is too much. Find a reasonable vehicle <10k max and save your money.

[Env-Consultant]

I would say don't buy a new car if you are going to need a downpayment for a house soon, as well as available cash for furnishing the house, unexpected repairs, bills, taxes, etc


With that said, if you can afford it and 0% financing is available, put the absolute minimum down and finance it over as long as possible. Most people who have taken econ classes know what present value and discounting rates are. A $500 payment today is worth a lot more than a $500 payment on the last month of year 5 of a payment program.

[Hallowed_point]

Originally posted by BigMass
zero. Don't go into debt for anything but a home. Buy what you have saved for an can afford. 15k will buy you a very nice car. this..you don't want to be that guy with a 40 k Subaru Sti living in casa de mamma & dadda..

[cyra1ax]

Originally posted by ddduke
What about buying a used econobox for 10k with low km? That way you still have 5k in the bank and you don't have to make payments.

I don't really get the making monthly payments on a car unless it's a lease or less then 1% interest. Money can be used so much more wisely.

I don't see a reason why you need a brand new WRX.

There's no way that I'm buying econobox for my next vehicle, my Corolla is driving me crazy. Sure the fuel economy and reliability is awesome, but the lack of power and the amount of road/wind noise is absolutely insane, plus I would like something that's nicer than an econobox. I realize it makes more financial sense to buy used, and I might just end up going that route. I'm not opposed to getting a used vehicle, but I would like to get something with adequate power(200hp+) thats AWD. The WRX is just a benchmark that I'm using for now.



Originally posted by dubhead
Econoboxes are boring buy something that puts a smile on you face everyday. I'm glad I did.

Edit:

Sounds like you are possibly a young guy without a whole lot of responsibilities right now ever think of taking some of that money and going traveling/backpacking? You have your whole life to have a car loan seems like you might be in a postion to see a bit of the world instead

For part one, see above.
For the edit, yeah I'm a young guy, just got my first full time position this summer. I've done Asia quite a bit already, the next trip(s) are probably going to be somewhere warm this winter, followed by either Montreal/Ottawa or Europe.


Originally posted by Env-Consultant
I would say don't buy a new car if you are going to need a downpayment for a house soon, as well as available cash for furnishing the house, unexpected repairs, bills, taxes, etc With that said, if you can afford it and 0% financing is available, put the absolute minimum down and finance it over as long as possible. Most people who have taken econ classes know what present value and discounting rates are. A $500 payment today is worth a lot more than a $500 payment on the last month of year 5 of a payment program.

Like I said earlier, I'm anticipating that I'll be home for the next 2-3 years, as the parents are purchasing a new home and I'll be expected to help out a bit. Looking at the numbers, I'll be able to comfortably afford payment+insurance of around $950/month and still be able to put away $1000/month and have plenty of spending money left over. While I'd like to avoid having to pay CMHC insurance, it seems like most people(not incl the riggers and people with rich parents) start out with CMHC mortgages and build equity from there.

That being said, student loans are being paid off at the end of this month which means I'll have virtually no debt, credit card is paid on a bi-monthly basis.

[themack89]

cyra1ax it honestly doesn't sound like you need advice. Except for choosing which kind of car to get.

[Redlined_8000]

I'd go for it man. Get the wrx if that's what you wana do. It should be a awesome car and last you a good long time.

[eblend]

Originally posted by cyra1ax

credit card is paid on a bi-monthly basis.

Hope that's twice per month, vs. every two month, as bi-monthly can mean both.

At any rate, if it's once every two weeks, you are better off just paying once per month at the end of the grace period. The difference isn't major, but why pay something off that has 0 interest, vs making some money even in a basic savings account, assuming ofcourse you are paying off in full and aren't carrying a balance.

As for the car, put the max down that you can since otherwise you will be paying nearly 4% interest on the difference. The only time I would personally finance a car is if it was a 0% financing option, and go for as long of a term as possible under 0%, as it's essentially free loan.

As for CMHC, you comment on it doesn't seem very financially responsible (neither is buying a brand new car while living with parents..but I digress). If I had the choice, I would drive a shitty econobox for as long as I was living with parents, save every penny (I would still travel as much as possible thought) and then when you decide to move in you buy a place with a hefty down payment and pay off your loan in a short order of time, and be set from then on. A new car sounds cool now, but I much rather have my place paid off and buy a much nicer car than a WRX.

[Xtrema]

0 down, lease at 2.9% for 24 months. That should run you about $750/mth. This should be very similar in payment for financing $21k for 36 months at 3.9%.

Keep you $15k liquid. I'm feeling a real estate adjustment coming in the next 12 to 18 months and you want to have enough cash to dive in when it goes south.

now as for helping your folks on the new place..... I hope that is optional as in they can get by without your contribution or your parents got over their heads and bought too big. Its fine for adult kids to pay and shouldering some responsibility and better than paying some landlord that isn't family. But if they need your contribution long term to keep the new place, it may impact your ability to move out later.

[ddduke]

Originally posted by cyra1ax


There's no way that I'm buying econobox for my next vehicle, my Corolla is driving me crazy. Sure the fuel economy and reliability is awesome, but the lack of power and the amount of road/wind noise is absolutely insane, plus I would like something that's nicer than an econobox. I realize it makes more financial sense to buy used, and I might just end up going that route. I'm not opposed to getting a used vehicle, but I would like to get something with adequate power(200hp+) thats AWD. The WRX is just a benchmark that I'm using for now.



That's totally fair and I completely understand where you're coming from, I would never in my life buy an econobox as a daily. But at the same time I don't finance 'fun' cars, I always buy them with cash. Why don't you get a used g35x (2007+), that can be had for under 15, is awd and well over 200hp. That way you meet all your criteria and still have a reliable, very respectable car.

The way I've always thought is save more then you spend and over analyze every single thing you buy. Just because you can afford something right now doesn't mean shit if things take a turn for the worse. I always make sure I have enough money squirrelled away that if I got injured/sick/lost my job I have enough tucked away that I can live worry free for at least a year.

If you bought a 15k car now, kept saving the $1000 you do regularly, tacked on the additional 750/month you saved on payments then you'd have $63000 by the end of what would have been your term. Orrrrrrrrr you could buy the car and own a depreciating asset.

[cyra1ax]

Originally posted by eblend


Hope that's twice per month, vs. every two month, as bi-monthly can mean both.

At any rate, if it's once every two weeks, you are better off just paying once per month at the end of the grace period. The difference isn't major, but why pay something off that has 0 interest, vs making some money even in a basic savings account, assuming ofcourse you are paying off in full and aren't carrying a balance.

As for the car, put the max down that you can since otherwise you will be paying nearly 4% interest on the difference. The only time I would personally finance a car is if it was a 0% financing option, and go for as long of a term as possible under 0%, as it's essentially free loan.

As for CMHC, you comment on it doesn't seem very financially responsible (neither is buying a brand new car while living with parents..but I digress). If I had the choice, I would drive a shitty econobox for as long as I was living with parents, save every penny (I would still travel as much as possible thought) and then when you decide to move in you buy a place with a hefty down payment and pay off your loan in a short order of time, and be set from then on. A new car sounds cool now, but I much rather have my place paid off and buy a much nicer car than a WRX.

Sorry, messed up a bit there I meant semi-monthly or twice a month. I like to keep constant payments on it as I basically use the credit card for all of my expenses. The advice given about making a single large payment is interesting, I'll have to try that next month.

As for my comment about CMHC, its because I'm not too sure about how the whole thing works, I should do more reading about that. (Hmm..now that I think of it I would have enough in savings + HBP in the next two years to meet that 20% on a $310K home) Then again, I'm hoping Xtrema is right and there is a downwards adjustment in real estate prices, in which case I would be in perfect position to purchase a home.


Originally posted by Xtrema

0 down, lease at 2.9% for 24 months. That should run you about $750/mth. This should be very similar in payment for financing $21k for 36 months at 3.9%.

Keep you $15k liquid. I'm feeling a real estate adjustment coming in the next 12 to 18 months and you want to have enough cash to dive in when it goes south.

now as for helping your folks on the new place..... I hope that is optional as in they can get by without your contribution or your parents got over their heads and bought too big. Its fine for adult kids to pay and shouldering some responsibility and better than paying some landlord that isn't family. But if they need your contribution long term to keep the new place, it may impact your ability to move out later.

Been thinking about the lease option, what would you do at the end of the lease? Return or buyout? I sure hope you're right about the real estate adjustment, I've been keeping an eye on condos downtown/NW/SW Calgary and there seems to be quite alot of supply coming in the next few years. The other option is buying in Airdrie and getting more bang for my buck, but its starting to get to the point where I'm valuing living closer to work.

The parents actually don't NEED me to help them out with the new place, I've actually got no money in it. They just expect me to help out with bills(which is fair, they've paid for my childhood). And besides, its a new home, I'd like to enjoy it for a little bit at least:D .


Originally posted by ddduke
That's totally fair and I completely understand where you're coming from, I would never in my life buy an econobox as a daily. But at the same time I don't finance 'fun' cars, I always buy them with cash. Why don't you get a used g35x (2007+), that can be had for under 15, is awd and well over 200hp. That way you meet all your criteria and still have a reliable, very respectable car.

The way I've always thought is save more then you spend and over analyze every single thing you buy. Just because you can afford something right now doesn't mean shit if things take a turn for the worse. I always make sure I have enough money squirrelled away that if I got injured/sick/lost my job I have enough tucked away that I can live worry free for at least a year.

If you bought a 15k car now, kept saving the $1000 you do regularly, tacked on the additional 750/month you saved on payments then you'd have $63000 by the end of what would have been your term. Orrrrrrrrr you could buy the car and own a depreciating asset.

I'm not sure if I understand that math, the payments would be coming out of the savings, so wouldn't that be around $1400/month that goes into savings? ($2K/month - $750/month?) It's starting to make alot more sense for me to look into a used car...just gotta find that perfect deal.


There's been some awesome insight and opinions so far, I really appreciate it guys!

[icky2unk]

Originally posted by Hallowed_point
this..you don't want to be that guy with a 40 k Subaru Sti living in casa de mamma &amp; dadda..

Only you would judge because to you anyone who gets anything from their parents has lost self respect.

[Mitsu3000gt]

I'm all for getting a nice car when you're young and will probably enjoy it even more than when you're older (that's what I did, absolutely zero regrets) but for $36K, a WRX would be one of the very last cars on my list. Unless that's your dream car, I would strongly suggest checking out what $40K can buy you on the used market in 2-3 year old cars, you might be surprised. And no GST to pay.

[killramos]

Originally posted by icky2unk


Only you would judge because to you anyone who gets anything from their parents has lost self respect.

he just runs around from thread to thread spewing his opinions where no one wants to hear them without having a mild understanding about interest rates or return on investment. He is that guy who would buy a car in cash when 0% financing is offered :rofl:

Because you know it will boost his self respect, next up is if you take out a loan you have no self respect.

[Xtrema]

Originally posted by cyra1ax
Been thinking about the lease option, what would you do at the end of the lease? Return or buyout? I sure hope you're right about the real estate adjustment, I've been keeping an eye on condos downtown/NW/SW Calgary and there seems to be quite alot of supply coming in the next few years. The other option is buying in Airdrie and getting more bang for my buck, but its starting to get to the point where I'm valuing living closer to work.

The parents actually don't NEED me to help them out with the new place, I've actually got no money in it. They just expect me to help out with bills(which is fair, they've paid for my childhood). And besides, its a new home, I'd like to enjoy it for a little bit at least:D .


Return or buyout depends on the buyout price of car. Since most Subaru owners in Calgary hate both dealership for service, leasing can be an easy way out. TCO will definitely be higher than finance or cash deal but that's the trade off to have $15K in the pocket and the same monthly payment. And there may be 36month option to lower the monthly payment and buyout further, just doesn't seem to say much when I searched on my phone.

As for the real estate market, I'm not sure this is the same BS around this time last year but considered we had a good 5 year run since the rebound of 2009, if this isn't the end of a run, next couple years could be. Fact remain that oil demand somehow lowered and nobody is lowering production and our oil has no way out and on top of that NG is worthless right now. And you would think ISIS fucking up Iraq would help oil prices but it's the exact opposite effect.

On top of US raising interest rates next year, Europe recovery didn't really materialize due to the whole Ukraine tug of war with Russia, and fucking stupid valuation of Tesla and all these .com round 2 companies, smells funky to me.

[blownz]

Originally posted by icky2unk


Only you would judge because to you anyone who gets anything from their parents has lost self respect.

I think lots of people think it is sad to drive a new car while living off/with your parents...


I think the important thing to do is not to start living a lifestyle at home with your parents that you can't maintain when you move out.

To lease a brand new WRX for two years only to go back to an economy car when you move out is just pathetic IMO. Just keep things reasonable and you will be fine.

[icky2unk]

Originally posted by blownz


I think lots of people think it is sad to drive a new car while living off/with your parents...


I think the important thing to do is not to start living a lifestyle at home with your parents that you can't maintain when you move out.

To lease a brand new WRX for two years only to go back to an economy car when you move out is just pathetic IMO. Just keep things reasonable and you will be fine.

You missed the thread where Hallowed was raving how much better he is because he paid for University and anyone who has their parents help out has no self respect for themselves.

I would agree on not having a car handed to you but it was just a stab at hallowed more so then anything.

[HiTempguy1]

Does OP have a girlfriend?

If yes, buy the WRX because she obviously doesn't care if you live at mommy and daddy's.

If you don't, get the f&^k out of the parents house. Not many chicks are interested in dudes living off of mom and dad's tit. Unless you are 18 or 19 (sounds like it... or Asian :rofl: ) then disregard!

[Hallowed_point]

Originally posted by icky2unk
You missed the thread where Hallowed was raving how much better he is because he paid for University and anyone who has their parents help out has no self respect for themselves.

I would agree on not having a car handed to you but it was just a stab at hallowed more so then anything.

I don't believe we've met? Come say hi to the guy in the red mustang at the next meet. I don't care if you agree with me dude..to each their own.

[Hallowed_point]

Originally posted by killramos
he just runs around from thread to thread spewing his opinions where no one wants to hear them without having a mild understanding about interest rates or return on investment. He is that guy who would buy a car in cash when 0% financing is offered :rofl:

Because you know it will boost his self respect, next up is if you take out a loan you have no self respect.

You don't know jack squat about me. My offer extends to you as well. Come say hi in person. We can get to know each other! You can enlighten me on your financial wisdom.

[Hallowed_point]

Originally posted by blownz
I think lots of people think it is sad to drive a new car while living off/with your parents...


I think the important thing to do is not to start living a lifestyle at home with your parents that you can't maintain when you move out.

To lease a brand new WRX for two years only to go back to an economy car when you move out is just pathetic IMO. Just keep things reasonable and you will be fine.

:hitit: It's ok (not ideal) in my books to take money from your parents..but don't leave those details out when you're bragging to everyone else about how successful you are. That's my reply to icky and beamer boy.

[J.M.]

:hijack:

[max_boost]

Living at home definitely allows you to mooch and drive a nice car. Been there done that! No one really knows your scenario bro. I would move out and get a chill condo personally vs driving a nice car.

[killramos]

Originally posted by Hallowed_point


You don't know jack squat about me. My offer extends to you as well. Come say hi in person. We can get to know each other! You can enlighten me on your financial wisdom.

And you know nothing about me or my life. But you feel content to criticize me and other members at every turn.

You dislike me because I have gotten tired of letting you spew nonsense and I point out your bullshit.

I have no interest in meeting you and swinging my dick around in a parking lot "getting to know you". No one is bragging about how successful they are except you and your self respect.

[revelations]

OP get a decent vehicle about 3 years old from the used market. You will save about 30% + GST from buying new. Doesent matter what type - of course the American models drop even faster with age.

Until you're ACTUALLY baller and can afford to piss away thousands of dollars without caring, that SHOULD be you attitude. New car smell isnt worth that much and the mechanical issues on non-European vehicles arent that enormous to justify warranty.

[ercchry]

i think everyone has been there... im out of my brand new car phase now... but i've wasted a few dollars over the years for sure on them.

its nice and all till you start to play with your numbers a bit here.

so lets say you ended up with your WRX and put your $15k down, financed over 5 years. for the ease of this example lets call your payments $400/month

in 5 years where are you at? well... you have a paid off 5 year old wrx... worth... $15k?

instead lets say you pay $5k for a used sensible car. you take your $10k and open a TFSA and find a nice reliable ETF that yields 10% a year, you take your $400/month payment and top up your TFSA and ETF annually with the $4800 you would of wasted on car payments. where are you now in 5 years? well... probably ready to replace that $5k car :rofl:

BUT you'd probably still get $2k for that $5k car... and your savings account is now sitting at $48k

so in 5 years you could be rolling in a slightly used (3-4yr) AMG car... paid for in cash... or you know... down payment for your first place

[v2kai]

Originally posted by ercchry
i think everyone has been there... im out of my brand new car phase now... but i've wasted a few dollars over the years for sure on them.

its nice and all till you start to play with your numbers a bit here.

so lets say you ended up with your WRX and put your $15k down, financed over 5 years. for the ease of this example lets call your payments $400/month

in 5 years where are you at? well... you have a paid off 5 year old wrx... worth... $15k?

instead lets say you pay $5k for a used sensible car. you take your $10k and open a TFSA and find a nice reliable ETF that yields 10% a year, you take your $400/month payment and top up your TFSA and ETF annually with the $4800 you would of wasted on car payments. where are you now in 5 years? well... probably ready to replace that $5k car :rofl:

BUT you'd probably still get $2k for that $5k car... and your savings account is now sitting at $48k

so in 5 years you could be rolling in a slightly used (3-4yr) AMG car... paid for in cash... or you know... down payment for your first place

truth:werd:

[Redlined_8000]

Originally posted by ercchry
i think everyone has been there... im out of my brand new car phase now... but i've wasted a few dollars over the years for sure on them.

its nice and all till you start to play with your numbers a bit here.

so lets say you ended up with your WRX and put your $15k down, financed over 5 years. for the ease of this example lets call your payments $400/month

in 5 years where are you at? well... you have a paid off 5 year old wrx... worth... $15k?

instead lets say you pay $5k for a used sensible car. you take your $10k and open a TFSA and find a nice reliable ETF that yields 10% a year, you take your $400/month payment and top up your TFSA and ETF annually with the $4800 you would of wasted on car payments. where are you now in 5 years? well... probably ready to replace that $5k car :rofl:

BUT you'd probably still get $2k for that $5k car... and your savings account is now sitting at $48k

so in 5 years you could be rolling in a slightly used (3-4yr) AMG car... paid for in cash... or you know... down payment for your first place

This man speaks truth.


Even if you buy a car in the 10k-15k range OP you can still find stuff that is fun, reliable, and quick.

[Rocket1k78]

you guys will have better odds in making hallowedpoint admit imports are better than domestics than convincing op to buy an ok car. You guys are forgetting he's young(at least i hope so) and we all know that at that age were know it alls so to try and convince him to be smart financially is a lot easier said then done. We've all been there done that so for us its easy to see whats the right choice.

[Hallowed_point]

^imports get better fuel economy! I'll admit that. For sure...Ive never bought new but I have rushed into buying used cars that were money pits like my 1999 VW. Never again. But I had to learn the hard way..I guess everyone does. Just make that hard way with a $5000 car, not a 30-40 k new one that's all!

[v2kai]

Originally posted by Rocket1k78
you guys will have better odds in making hallowedpoint admit imports are better than domestics than convincing op to buy an ok car. You guys are forgetting he's young(at least i hope so) and we all know that at that age were know it alls so to try and convince him to be smart financially is a lot easier said then done. We've all been there done that so for us its easy to see whats the right choice.

I'm definitely not saying OP should buy a shitty old econobox car. pretty sure ercchry isnt either. just get an awesome slightly older gen sports car. the premium you pay for new is a big pill to swallow. you cant argue with math.

definitely agree that you should buy a fun car when youre young. you will enjoy it, just dont throw all money sense and logic out the window and you can have your cake and eat it too.

[max_boost]

well as long as you aren't too picky there is almost always someone fire selling a vehicle for whatever reason, snatch those up.

[msommers]

Since I'm no baller, I never understood buying new. The only way it makes sense to me is if I'm keeping it until it dies. And even then I think I'd rather just buy one year old (like I did, saved over 10k). I guess if thousands and thousands wasted gives you a better piece of mind and level of satisfaction then it's subjective but financially it's money wasted, especially if you plan to sell.

If it were me, I'd spend 10-13k, and spend 2k to make it your own and have a reserve for repairs. Not too many people have had a 36k car as their second unless mommy and daddy paid for it.

[Redlined_8000]

Originally posted by msommers
Since I'm no baller, I never understood buying new. The only way it makes sense to me is if I'm keeping it until it dies. And even then I think I'd rather just buy one year old (like I did, saved over 10k). I guess if thousands and thousands wasted gives you a better piece of mind and level of satisfaction then it's subjective but financially it's money wasted, especially if you plan to sell.

If it were me, I'd spend 10-13k, and spend 2k to make it your own and have a reserve for repairs. Not too many people have had a 36k car as their second unless mommy and daddy paid for it.

I love used cars also... You can get such good value and by the time you buy you can do lots of research to see how the car holds up.


The thing I do like about buying new is when you buy brand new, that car is yours and yours alone. It was made in the factory for you. It never had any previous owners to tamper with it or personalize it. It is a fresh slate for you to modify and a unique ownership experience compared to buying used. Ive never owned a new car fresh from the factory but I think at least once in my lifetime I will for sure.

[blitz]

Lots of fun options for way less than $36k, both new and used.

[ddduke]

Originally posted by cyra1ax


I'm not sure if I understand that math, the payments would be coming out of the savings, so wouldn't that be around $1400/month that goes into savings? ($2K/month - $750/month?) It's starting to make alot more sense for me to look into a used car...just gotta find that perfect deal.


There's been some awesome insight and opinions so far, I really appreciate it guys!

What I means is that you were saying in your previous post you could afford to put aside $1000/month comfortably and make your payments (which I based off a 3 year term) that are roughly $750. So, the math I came up with was $1000/month put aside + $750/month put aside from the payment savings totalling $1750/month multiplied by 36. I didn't factor in any potential interest earnings you would likely get as well.

[ddduke]

Originally posted by blitz
Lots of fun options for way less than $36k, both new and used.

THIS,
I'm in the market for an 02+ Viper right now, my absolute max budget is $35000. With depreciation you can get a hell of a lot of car for a really low price.

[cyra1ax]

Originally posted by HiTempguy1
Does OP have a girlfriend?

If yes, buy the WRX because she obviously doesn't care if you live at mommy and daddy's.

If you don't, get the f&amp;^k out of the parents house. Not many chicks are interested in dudes living off of mom and dad's tit. Unless you are 18 or 19 (sounds like it... or Asian :rofl: ) then disregard!

There's too many replies for me to quote everyone, but I needed to quote this. No GF(not for a lack of trying either), and definitely the latter option(asian) :rofl:.

The beyond ballers have spoken! You guys successfully made me see sense and got me off that new car scent, you guys are definitely right in that I would love to have a home sooner or later. Besides, it would be pretty awesome to be that guy that bought a home with a sizable down payment at the tender age of 23(not including the people that work up north).

As for used, I'm starting to look at cars around 2010 and up, gotta start to narrow the field a little bit. Actually my friend got a pretty good deal the other day, he found a 2014 Focus ST with ~2000km that was going for $26K....the chick that bought it paid $37K.

[msommers]

Wow that's nice! Pick a few cars you really want and know common problems/issues and check kijiji, beyond, auto trader daily. The good deals do come up but you need to be quick and have money ready to go. People might be even more willing to move with cash vs. certified cheque, which are commonly held for 3-5 business days due to the levels of forgery going on these days.

[revelations]

Congrats OP, youre on the road less travelled - common sense !! :rofl:

[n1zm0]

Originally posted by cyra1ax
Besides, it would be pretty awesome to be that guy that bought a home with a sizable down payment at the tender age of 23(not including the people that work up north).

I got mine at 25, one of the best decisions i've ever made even if it took some sacrifice. At 23, it would be pretty damned nice imo.



Originally posted by Redlined_8000
The thing I do like about buying new is when you buy brand new, that car is yours and yours alone. It was made in the factory for you. It never had any previous owners to tamper with it or personalize it. It is a fresh slate for you to modify and a unique ownership experience compared to buying used. Ive never owned a new car fresh from the factory but I think at least once in my lifetime I will for sure.

This is my current state, never owned a brand new car but want one because i've had enough with the older crap and want something from brand new that I can maintain to my specs and know I made sure this car is well taken care of.

Then again I read the majority of the replies in this thread, no one buys new cars apparently :rofl: just 5 years old and newer. My situation is completely different than OP's, but based off some pretty good facts posted here, 5 year old or newer used car sounds right for me.

[killramos]

i bought my first car used but there were always little things that were missing, broken, scratched or damaged that I would never have done. I am meticulous about my cars and little things like the tear in the shift boot drove me up the wall.

Also not knowing how the engine was treated and the little sounds that you knew shouldn't be there but weren't enough to be a "problem"

Main reason i went new this time around even if it meant getting spending more to get less. It was worth it imo.

[ExtraSlow]

I buy brand new for my wife, because she will keep it a long time. I buy used for myself, because I'm cheap as fuck, and I like to swap rides pretty often.

[blownz]

While I agree the OP is definitely better off with a used car at this point in life, there are two big benefits I see with buying new:

1. People take horrible care of their vehicles and don't maintain them well.

Example: My wifes previous SUV I bought 11 months old with 14,000km on it. Even though it was "like new" it was still in worse shape than her current now 3 year old SUV that I bought brand new.

2. A new vehicle at $35k will cost you way less to maintain than a used vehicle for $35k. There is something to be said for not having to worry about expenses for 3-5 years.


And while the depreciation is bad in the first year, it is only one year and if you plan on keeping it 3-4 years it isn't that bad.

In the spring of 2011 I spent $125k on two 2011 vehicles and while I would have taken a kick to the teeth if I would have sold them at the end of the year, I still have both. And next year when I replace them, I should get at about $65k to put towards the next two vehicles. So not too bad at all over that length of time.

[CapnCrunch]

Originally posted by msommers
Since I'm no baller, I never understood buying new. The only way it makes sense to me is if I'm keeping it until it dies. And even then I think I'd rather just buy one year old (like I did, saved over 10k). I guess if thousands and thousands wasted gives you a better piece of mind and level of satisfaction then it's subjective but financially it's money wasted, especially if you plan to sell.

If it were me, I'd spend 10-13k, and spend 2k to make it your own and have a reserve for repairs. Not too many people have had a 36k car as their second unless mommy and daddy paid for it.

I agree with you for the most part with one exception. Cars that people are known to beat the piss out of like Mustangs, WRX's, and VTEC Honda Civic GT's. I'd never buy one of those after letting someone have their fun with it for a year.

[Hallowed_point]

Originally posted by CapnCrunch
I agree with you for the most part with one exception. Cars that people are known to beat the piss out of like Mustangs, WRX's, and VTEC Honda Civic GT's. I'd never buy one of those after letting someone have their fun with it for a year.

I disagree to an extent...depends on the owner. My 19 year old mustang and 16 year old camaro were both in near mint shape when I picked them up. Camaro was bone stock. Not everyone goes into a car like that with the abusive mind state. That's where cold start (listen for abnormal ticks) check the oil quality by feel/color, look for burnt rubber behind the rear tires against the body lol etc comes into play.

Just my experience..a WRX would probably be more of a boy racer car. Although, some of the owners love them and don't abuse them. Driving a car hard when fluids are up to temp isn't abuse in my books..as long as you aren't hitting rev limiter like an idiot!

[88CRX]

Originally posted by blownz
While I agree the OP is definitely better off with a used car at this point in life, there are two big benefits I see with buying new:

1. People take horrible care of their vehicles and don't maintain them well.

Example: My wifes previous SUV I bought 11 months old with 14,000km on it. Even though it was &quot;like new&quot; it was still in worse shape than her current now 3 year old SUV that I bought brand new.

2. A new vehicle at $35k will cost you way less to maintain than a used vehicle for $35k. There is something to be said for not having to worry about expenses for 3-5 years.


And while the depreciation is bad in the first year, it is only one year and if you plan on keeping it 3-4 years it isn't that bad.

In the spring of 2011 I spent $125k on two 2011 vehicles and while I would have taken a kick to the teeth if I would have sold them at the end of the year, I still have both. And next year when I replace them, I should get at about $65k to put towards the next two vehicles. So not too bad at all over that length of time.

Lets not kid ourselves... buying new is not a smart financial.

However if you're OCD on the condition of a car (door dings, interior scuffs, parking lots scrapes, etc) then you don't have much of a choice because generally speaking people don't take care of their cars worth a damn.

My cars are mint and I keep them that way. Buying used I just shake my head at the things people call “mint, showroom floor condition” and then shrug off as “oh well, shit happens, it’s a used car”. Well yea it is, but why the hell did you dump an entire coffee in the center console and not bother to clean it up.

[nzwasp]

I just bought a new car cost me 28k all up. I put down 10K including 3K on my credit card. I financed 18K of it @ 2.9% over 84 months and this was 1 month ago. Due to some good saving we have amassed another 10K which we will put down this month and then when our bonuses come in Feb we will pay it off. The thinking behind the 84 months is that we wanted the lowest payment possible.

[killramos]

Originally posted by nzwasp
I just bought a new car cost me 28k all up. I put down 10K including 3K on my credit card. I financed 18K of it @ 2.9% over 84 months and this was 1 month ago. Due to some good saving we have amassed another 10K which we will put down this month and then when our bonuses come in Feb we will pay it off. The thinking behind the 84 months is that we wanted the lowest payment possible.

I did something pretty similar, As long as repayment is flexible which on cars it usually is you might as well do this. You have to have the self control to actually keep paying it down though :devil:

[Hallowed_point]

The day a car leaves the dealership, it is no longer "mint." I hate hearing that tossed around. It's only mint when it's showroom fresh..plastic on the seats. Minor imperfections do not equal mint..rant over :angel:

[killramos]

Originally posted by Hallowed_point


I disagree to an extent...depends on the owner. My 19 year old mustang and 16 year old camaro were both in near mint shape when I picked them up. Camaro was bone stock.





Originally posted by Hallowed_point
The day a car leaves the dealership, it is no longer &quot;mint.&quot; I hate hearing that tossed around. It's only mint when it's showroom fresh..plastic on the seats. Minor imperfections do not equal mint..rant over :angel:

You were just throwing it around pretty loosely... Literally 2 posts back...

[88CRX]

Originally posted by Hallowed_point
The day a car leaves the dealership, it is no longer &quot;mint.&quot; I hate hearing that tossed around. It's only mint when it's showroom fresh..plastic on the seats. Minor imperfections do not equal mint..rant over :angel:

Is there anything you won't disagree with?

[Rocket1k78]

Good for you cyra1ax!

its hard to pass up such a sweet car but you will be thanking yourself in the long run.

[killramos]

Originally posted by 88CRX


Is there anything you won't disagree with?

90's. Mustangs. Are. Best.

-Trying my best to sound like Dwight Schrute on a forum... :D

[ShermanEF9]

I never would put down money if I don't have to. No point in putting down cash on a depreciating asset.

[Hallowed_point]

Originally posted by killramos
You were just throwing it around pretty loosely... Literally 2 posts back...

NEAR mint..for our visually impaired members..happy?

[Hallowed_point]

Originally posted by 88CRX
Is there anything you won't disagree with? yes..I just happen to disagree with a lot of people splitting hairs I guess. 90s mustangs are great (93-95 GT or cobra 93-98) for ease of modability and low price. Are they perfect? No..only a del sol type r approaches that realm.

[killramos]

Originally posted by Hallowed_point


NEAR mint..for our visually impaired members..happy?

OK so that distinction returns the sanctity of the word, my bad :thumbsup: . :rolleyes:

[Hallowed_point]

Originally posted by killramos
OK so that distinction returns the sanctity of the word, my bad :thumbsup: . :rolleyes: OT..but speaking your language. I drove an E90 M3 today. Awesome car. The German in me is tempted! But the redneck in me says stay with the muscle car. E90 would be perfect with about 50 ft lbs more torque. Handles great, well built nice sounding engine. Just needs another litre.

[D'z Nutz]

This is getting off topic. Take this discussion elsewhere.

[killramos]

Originally posted by Hallowed_point
OT..but speaking your language. I drove an E90 M3 today. Awesome car. The German in me is tempted! But the redneck in me says stay with the muscle car. E90 would be perfect with about 50 ft lbs more torque. Handles great, well built nice sounding engine. Just needs another litre.

It's true, apparently a supercharger fixes the problem. Both the V8 and the V10 version suffer from lack of torque and need to be rev'd half to death to squeeze the potential out.

[killramos]

Originally posted by D'z Nutz
This is getting off topic. Take this discussion elsewhere.

deal

[cyra1ax]

Originally posted by Rocket1k78
Good for you cyra1ax!

its hard to pass up such a sweet car but you will be thanking yourself in the long run.

It's definitely hard because the new WRX SEEMED like the perfect car for me. Home ownership is the end goal though, once I have a piece of property then I can think about splurging on a new car.

There seems to be some posts missing.....anyone want to repost suggestions on what I can find in the $15k neighbourhood? I'm thinking I can look at cars up to the $18K range...:dunno: Willing to go a little higher if it means I get something that's a little nicer.

I noticed that there seems to be quite a few IS250 AWD and A4 Quattro out there in my price range....I know the IS has the carbon buildup issue and according to every single review it can't even get out of it's own way, but I would like to try it for myself, I'm sure that it will feel like leaps and bounds compared to the Corolla. What's the story on the Audi?

[D'z Nutz]

Originally posted by cyra1ax
There seems to be some posts missing.....

Off topic discussion was moved.

http://forums.beyond.ca/st/386551/car-recommendation-split-how-much-to-put-down-on-a-car/

[FixedGear]

I'd be looking at 2011-2012 Hyundai, Kia, Mazda if I were you