Looking into buying/leasing a car

I think an Outback would be perfect since my job requires frequent travel on unpaved roads and snow/ice are a fact of life here in the winter. Plus, I want something that can carry my bicycle and camping gear for those blessed weekends when I'm able to get off this mind-numbing steppe and up to the mountains. Just wondering if anyone had any personal experience with owning one...

Plus, I'm very curious about carmax. The crappy selection here in this very isolated area is the main reason why I'm leaning toward this route (there are no Subaru dealers).

 

No first hand knowledge. Click and Clack always say nice things about them, though.

 

Actually, I provisionally chose an Outback based on this cool "find the car that's right for you" feature that's linked to from the CarTalk website. You go through a list of criteria that you rank according to your needs/preferences and a program gives you your best matches.

Click and Clack rule.

 

Subarus rule. They are solid cars and excellent for what you sound like you want/need.

Through the miracle of the Internet, you can solicit bids on new or used Subarus through sites like cars.com, autobytel.com, edmunds.com and others you can do the whole thing over the 'Net. You never have to set foot on a car lot.

 

My three car-buying rules.

Don't lease. Don't buy new. Pay cash.

 

this is great advice.

 

Generally, don't lease. I got a good deal on a lease because the payment was low and I purchased the car after three years, but that is rare to get a good lease deal.

Buying a late-model used car from a new-car dealer can be a good way to go, but you have to look around a lot and understand what the prices are.

Don't rush out and buy one if you can avoid it. Try to follow the newspapers and reports of auto sales. Other tips are go at the end of the month, because the dealer may need to meet a quota or increase their numbers. The other thing I once heard is to go into a dealership right after a snowstorm.

Try to avoid getting accessories - that's where the dealers make the money and how the price gets increased. And for heaven's sake, don't order those fancy hubcaps - that is about the stupidest thing anybody can do.

 

3 bags.... it's great to say don't pay cash, but if you have that much cash you don't need advice about buying a car.

Ultimately, all buyers are cash buyers. It's just a question of where you get the cash from - the manufacturer, your credit union, or your bank account. I agree you shouldn't jump at the dealer's financing options, because you can often do better with a credit union. If you can make the monthly payment and the interest isn't too high, it might be better to make the payments and keep your money in the bank.

Do as good research on financing options as you do on the car. Knowledge is Power.

 

Just to echo: Leasing sucks.

Also to echo: My wife and I bought a new car last year... We had a 2002 Toyota Corolla at the time. We looked at the Volvo wagons (sweet cars, very luxe, but shitty reliability ratings); the Subaru Forester and Outback (also sweet, but surprisingly heavy on gas); and a couple of Volkswagens (door makes a nice sound when you close it, but parts are expensive as hell). In the end, we bought a... 2006 Toyota Corolla.

It's not the sort of car you fall in love with. But it's not too bad looking in black, it goes forever on twenty bucks, we've never had a problem with it or with its predecessor, and it keeps its value well enough to justify buying new. We sold the ol' 2002 for $11,000, having paid $16,000 for it four years earlier. Not too shabby.

 

Leasing can be a good deal if you know how to negotiate it.

You can find some new cars that companies want to move so they will offer very aggressive rate.

You must determine the mileage you drive up front. If you are going to put more than 15,000 miles on a year don't lease. It will cost you to much.


Dealers want to get you bogged down in the monthly rate which is cheaper that a monthly payment if you buy. What they won't tell you unless you ask is how that rate was calculated.

What you will find is that is was based on full sticker price of car and high interest rate.

The best way to lease is to not tell dealer first. Tell them you want to buy and get them commited to best price. Then tell them you want to lease based on that price. Watch the blood rush out of salesman's face.

In figuring out lease cost you need to ask rep 4 questions

What sell price is of car ( Also called cap cost)

What is the factor ( interest rate used) It will be a 4 or 5 digit number. To figure out actual intest rate multiply this number by 24.

What is the residual ( value of car at end of lease)

What is sticker price of car.

Having that info will allow you to negotiate a better deal.

One more thing dealers won't tell you - you can apply incentives against cap cost to reduce. If you don't ask dealer will take this incentive

 

It's not about having a lot of money. It's about using the money you have wisely.

 

Yeah. It's not hard at all. I bought several cars with cash. Of course they all cost $300 or less.