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New car buying guide: the algorithm (2021)

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Re: New car buying guide: the algorithm (2021)

#22
This whole thing is so annoying. I would much rather purchase my car from Toyota corporate and not have to buy a car with some random guy's name stickered onto it because it sat on his lot and he got commission from the sale. I don't care of the sales money evaporates out of my local community, it's not worth the hassle.

Re: New car buying guide: the algorithm (2021)

#23

I test drove a few cars and I bought the car I preferred on the dot com of the car manufacturer. I knew the displayed price was the real price. Because I ordered it online, I could even return it up to two weeks after the delivery as the local law mandates.

Unfortunately, in the US most of those sales are still funneled through a dealership, and even a "direct" purchase is still usually subject to dealer markups and similar nonsense.

Re: New car buying guide: the algorithm (2021)

#24

Last time I bought a car, I just messaged my credit union's Auto Buying service with the make/model I wanted. They told me the best price they could find and the dealer drove the car to my workplace once I set up the financing. If your bank offer this service, you still have to figure out which car you want and what the fair price for it is. But those are minor roadbumps compared to haggling at the dealership. There…

Was it navy federal by any chance? I would one day give it a try based on your positive experience if so!

Re: New car buying guide: the algorithm (2021)

#26

Not sure who needs to hear this, but you can buy a nearly new car used and save 1/3 to 1/2 of the cost. One big benefit is you let somebody else find out if new models are lemons. Another benefit is you don't need to haggle, as there will be many different options at different prices and you can quickly find out if the price is reasonable by checking KBB.

You grossly increase the chance of a lemon with your strategy. Why would anyone sell a near-new car for 30%+ off *unless* they knew the vehicle is crap? -------- Buying lightly used (~3 year or ~5 year) cars is likely the superior strategy. There's a set of rich buyers who want to keep up with the latest trends. This leads them to leasing vehicles for 2, 3, or so years. Other times, they have enough income that they…

To me this seems to reflect a lifestyle where certain people always want a shiny BMW or Mercedes and have to trade up every 2-3 years to maintain it. Seems like leasing would be a better approach though.

Re: New car buying guide: the algorithm (2021)

#27

Not sure who needs to hear this, but you can buy a nearly new car used and save 1/3 to 1/2 of the cost. One big benefit is you let somebody else find out if new models are lemons. Another benefit is you don't need to haggle, as there will be many different options at different prices and you can quickly find out if the price is reasonable by checking KBB.

You grossly increase the chance of a lemon with your strategy. Why would anyone sell a near-new car for 30%+ off *unless* they knew the vehicle is crap? -------- Buying lightly used (~3 year or ~5 year) cars is likely the superior strategy. There's a set of rich buyers who want to keep up with the latest trends. This leads them to leasing vehicles for 2, 3, or so years. Other times, they have enough income that they…

>Why would anyone sell a near-new car for 30%+ off unless they knew the vehicle is crap?

Change of life. New kids, divorce, relocation to a city, got a UTV that needs something to tow it, lost a job and need the cash, died, started carpooling, etc.

If you don’t need a car anymore and are very certain you won’t, there is no point in dragging out the ownership. Taking a big loss immediately is better than waiting 2 years and also paying insurance and registration the entire time.

Many states have lemon laws and actual garbage has to be taken back by the dealers after X number of repairs. The people selling at a steep loss don’t have a lemon in those states.

You’re a lot less likely to get a lemon buying near new than you imply.

Re: New car buying guide: the algorithm (2021)

#29
post #8

Not sure who needs to hear this, but you can buy a nearly new car used and save 1/3 to 1/2 of the cost. One big benefit is you let somebody else find out if new models are lemons. Another benefit is you don't need to haggle, as there will be many different options at different prices and you can quickly find out if the price is reasonable by checking KBB.

Is that still true today? I know in years past it was, but used car prices are so high right now. I've seen many 2 year old cars selling for nearly as much as new lately.

Depends on wait times. I know someone who buys a new fancy sports car every year (Porsche etc.). The wait time is usually around a year between ordering and getting the car. A year later he can sell his previous car that he drove that year for the full price, because buyers are willing to pay for not having to wait.

He’s done this for ~ten years now.

Re: New car buying guide: the algorithm (2021)

#30
post #8

Not sure who needs to hear this, but you can buy a nearly new car used and save 1/3 to 1/2 of the cost. One big benefit is you let somebody else find out if new models are lemons. Another benefit is you don't need to haggle, as there will be many different options at different prices and you can quickly find out if the price is reasonable by checking KBB.

Is that still true today? I know in years past it was, but used car prices are so high right now. I've seen many 2 year old cars selling for nearly as much as new lately.

Yeah. It probably depends on the brand, but I was just looking to buy my first car in quite a while and had to update my thoughts on this. Previously I'd be all for buying used. But I was looking at the prices for 2 to 5-year old Toyotas vs. new and the difference was shockingly tiny unless there was something wrong with the car or it had ridiculously high mileage.
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