My experience has been the opposite of this. They WANT you to finance, so they can get interest money from you. By the time you finish making mult-year pmts on a $30K car, you've shelled out $40-50K for that same car. Used car buyers won't give you this money back.If you pay cash, you can negotiate the price a lot more.
You can get an 08 Civic with 30 kms on it?I guess I keep asking myself why would I pay 29k$ for a 2011 Civic (for example) when I can go buy a 2008 with 30kms for 15k$...still has most of the bells and whistles and fuel mileage.
I am helping my younger brother look at cars right now. He's interested on a 2010 Mazda 3. Mazda is offering 0% for 0 months and we have managed to get the dealer down to invoice + $500. I helped my stepmother buy a new civic 1 1/2 years ago for invoice + $250. A person I work with just bought a 2010 Nissan Altima for invoice + $250 and I think that car was just over $30,000 out the door.Here's my opinion. I will never buy a new car but that's just me. The dealers are definitly giving the used car market a run for its money with the 0% stuff but like someone said they won't move on price much. I guess I keep asking myself why would I pay 29k$ for a 2011 Civic (for example) when I can go buy a 2008 with 30kms for 15k$...still has most of the bells and whistles and fuel mileage.
there's 2 cents worth.
You're right it's a little harder for that low of kms. I just did a quick kijiji to make sure I wasn't wayyy off! In my area I found 4 decent used civics. 2006 with 96kms for 11k$, two 2007 with 50km-60km for 12k$ and 13K$ and the 2008s were mostly leases but one was there for 19k$ with 50kms and one for 17k$ with 57kms.You can get an 08 Civic with 30 kms on it?
There must be something wrong with it.
If not, why would it be so cheap?
Used Honda cars are hard to buy at such a bargain, unless it's a private sale.
It seems a lot easier to say buy a cheap used car, but practically it's not that easy to get cheap Civics and Accords.
Any cars that have been previously leased or used as daily rentals are almost guaranteed to have been mishandled.One thing I see a lot with leasing, is people loving their efficient new car and therefore driving it twice as far as they ever expected they would......ending up with expensive mileage penalties
Late model used cars at dealers are off-daily rent about 50% of the time.
Even though OMVIC requires disclosure, the dealers almost never reveal that. If you go to sell privately down the road, that rental car info is glaring in the face of every perspective buyer as the first line on the UVIP.
I have OCD with researching things before I buy, and as mentioned, it seems that cars that are about 3-4 years old is the sweet spot. 50% discount with fairly low km's (if you look), and a little bit of warranty remaining for some manufacturers. Discount may be less for vehicles that retain their values like Honda/Toyota/Subaru.FT, thanks for the links, read them with interest.
We've been buying 2-3 years old and buying cars that don't require me to have a car payment. This one is going to cost more than my normal outlay so we'll be financing some of it. Are we better to go with a 0%? or are we better to go with bank financing (I thought bank financing rates on this stuff was crazy).
Also is it a good idea to start calling every dealer around and doing that faxing thing? I don't want to po all the dealerships just to be cheap if I don't gain anything .
I'm guessing you don't mean private sales? They always have room to move (everyone wants a new car these days) especially if they don't live in a big city (nobody wants to drive 2 hrs to look at a used car)From my experience used cars don't have near the room to move price wise, figure out your financing with a bank before hand if possible as at least another option.
A buddy of mine uses that strategy as well. Buy finds deals on cars that are about 6-7 years old, drives them for about a year, and sells them again for the price that he purchased. He's been doing this for the past 2-3 years.I'm guessing you don't mean private sales? They always have room to move (everyone wants a new car these days) especially if they don't live in a big city (nobody wants to drive 2 hrs to look at a used car)
Believe it or not in high school I sold my first bike and car for about 20% more than I paid. They were of course Japanese and I never spent a dime on them besides basics. From looking at ads, I'm about to sell another Japanese bike I spent nothing extra on for 20% more than I paid. Certain vehicles are just in demand, and deals are easy to find
I'm pretty sure that 0% financing is baked into the price, so if you have good credit or cash I would negotiate it. Time value of money anyone?
Look out for dealers who advertise a 'cash price' and a 'finance price' which is about $5k more. IMO this is false advertising as the cost of borrowing isn't really 0% if you paid a bloated price for the privilege. Perhaps the increased competitive market of the past two years has curtailed this practice?I'm pretty sure that 0% financing is baked into the price, so if you have good credit or cash I would negotiate it. Time value of money anyone?
I've been able to do this once, but only because the price was under market value. To answer the OP, buy 2 years old, save your self 10-25%.A buddy of mine uses that strategy as well. Buy finds deals on cars that are about 6-7 years old, drives them for about a year, and sells them again for the price that he purchased. He's been doing this for the past 2-3 years.