Another car buying thread (in spite of the others)

I've read through the other threads and I'm hoping people will have new things to say ... I'll try to keep topic as specific as possible, if that helps.

I'm going to start saving up for a car starting next month, with an idea of having enough money for a down payment at the end of 2009 or start of 2010. I'm considering leasing with a plan to buy the same car after the lease runs out. I've looked on edmunds and other car sites to get started, but wanted to hear from others.

I've driven one crappy car (a '93 Chevy Corsica) and my current still-running car ('95 Mercury Sable) and I'm ready to go outside the realm of American cars. I want a Honda or Toyota. Specifically, I'm considering in this order: a Honda Civic, Toyota Prius, Honda Fit and possibly a Nissan Versa. Emphasis on the Civic or Prius. In a perfect world, I will have enough money to buy new, but have no problem with finding a relatively lower mileage used car to save a few thousand.

For those cars specifically, any advice or thoughts on your own use? If there's another smallish Honda/Toyota/Nissan car that you'd like to suggest, I'm all ears.

Thanks for any help!

 

Depends on how much money I have can pay for monthly payments. I prefer to buy, but if leasing makes the most financial sense at the time I get to it, I'll live with it.

I don't drive far for work ... maybe a total of about 10 miles daily for all my driving. I agree though, the mileage restrictions would make it harder.

 

We're looking at cars in the same class, BRoth, and the Toyota Corolla is at the top of our list. Like you, we're done with American cars. After perusing Consumer Reports, the Corolla gets the best gas mileage (35 mpg) of the CR recommended cars in the top tier. Off the top of my head, I believe the Hyundai Elantra is the highest-rated car in the class, for what it's worth.

 

I think you'll probably have a harder time finding a relatively low-mileage Civic or Prius, especially the hybrid models. When people buy those vehicles, they tend to keep them for quite some time because they're such good vehicles.

That said, if you can find one, get it. You most likely won't be disappointed.

If you buy new, enjoy that new-car smell. You're paying a lot for it.

Leasing will NEVER make the most financial sense, because the buyout price a the end of the contract will be significantly higher than that of a used car with the same specs (year, mileage, etc.) Sure, the payments may be cheaper in the short term, but you'll end up paying quite a bit more in the long run.

 

Take it from someone who sold cars for 5+ years, whose dad ran a car lot for 22 years, and whose grandfather ran a dealership for over 40 years.

Some advice.

With 0% financing available on just about every car right now, leasing is becoming less and less popular.

play has it right on the mileage restrictions.......typically .15/mile penalty if you turn the car back in on a lease.

had a guy once lease a car (Dodge Intrepid) for three years. big city high pressure job he leased it from. 3 year, 12,000 mile per year lease. (36,000 total.)

tried to turn it back in to my lot with 75,600 miles on it. Almost $6,000 in mileage penalties ALONE....nevermind that the car looked as if it been driven in a demo-derby.

"Wait.........those guys didn't tell me there was a mileage penalty."

We told him to take it back where it came from.

 

Chef and t_b_f are right. Leasing's bad for everyone except the finance company. Now's a really good time to buy a car.

Another suggestion: Civics and Priuses are very popular, and even now dealers are less likely to deal on them than they are other cars. If you're Costco, check out the prices using their car-buying service.

 

I drive a Honda and my wife drives a Toyota, and we both love our cars. But if I was looking at the type of car you're looking at, Hyundai would be the first thing I would look at. They're building some very good cars now.

 

There's the big flag. I looked preliminarily at cars last week. I've improved my credit rating 80 points in the past six months. I STILL couldn't get in at less than 11 percent interest on financing on a 4-year-old car from the lot, and my bank wouldn't loan me the cash. So you'd better have sparkling credit if you're going to count on that zero percent.

 

I'm in Year Two of a six-year loan on an '07 Toyota Corolla. Let me echo what others have said here: If you can buy, buy.

The thing I like about Toyota is that you can get a model-year used car with less than 5K miles on it for thousands less than a new model and it's got a great 100,000 mile guarantee on it. I bought my Corolla with a couple thousand miles on it and saved roughly 3K at the end of the transaction.

As for saving for the down payment, trust me, this is a fantastic idea. The more you can save, the more likely you'll get an attractive loan. Good luck.

 

Any idea what would put the Toyota Corolla ahead of the Honda Civic, or vice versa?

I'm likely choosing between the two at some point later this year. My mom traded in her Camry for a Hyundai Sonata last year. She's not pushing Hyundai at me just yet, but I guess I should add the Accent to my list as well.

Price/financing considerations aside, is it simply a matter of what feels better on a test drive, or are there mechanical differences I should consider as well?

 

At this point, it's just personal preference.

One car just may feel better or drive a little more to your liking. You may get a better deal on one, or maybe the salesman you deal with is a little more pleasant.