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notshanarishona




 
 
 
 

Post Thu, Nov 24 2022, 7:53 pm
We desperately need a car. Our 2004 Toyota with close to 200,00 miles needs so many repairs but meanwhile is still clunking away. You hear the noise from it from a few houses down when we turn it on (needs a new muffler among other things).
The used car market is awful. In our budget, we can only get a car that will last a couple years so it’s not worth it. Meaning something 15+ years old with no current significant issues but obviously with older cars it’s expected.
I have never been considered buying a car with leasing or financing .
Leasing obviously has the advantage of no repairs but the disadvantage of paying $3-400 a month and not owning anything seems to outweigh any savings.
Buying new, we would probably end up paying like 20-30% of the value of the car just in interest.
Is it really worth it?
Would you take the gamble of committing yourself to paying something crazy expensive off over the next 6 years and hoping no other big expenses come up or stick with budget snd hope finances will improve in a year or two?
Any thoughts? I kind of hope the market can’t get worse than it currently is.
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amother




Grape
 

Post Thu, Nov 24 2022, 8:02 pm
notshanarishona wrote:
We desperately need a car. Our 2004 Toyota with close to 200,00 miles needs so many repairs but meanwhile is still clunking away. You hear the noise from it from a few houses down when we turn it on (needs a new muffler among other things).
The used car market is awful. In our budget, we can only get a car that will last a couple years so it’s not worth it. Meaning something 15+ years old with no current significant issues but obviously with older cars it’s expected.
I have never been considered buying a car with leasing or financing .
Leasing obviously has the advantage of no repairs but the disadvantage of paying $3-400 a month and not owning anything seems to outweigh any savings.
Buying new, we would probably end up paying like 20-30% of the value of the car just in interest.
Is it really worth it?
Would you take the gamble of committing yourself to paying something crazy expensive off over the next 6 years and hoping no other big expenses come up or stick with budget snd hope finances will improve in a year or two?
Any thoughts? I kind of hope the market can’t get worse than it currently is.


If you say it’s out of your league to buy a used car then you should lease. It’s manageable because it’s a few hundred a month, you don’t have the worries of getting a lemon, having to pay for repairs, etc

There aren’t good options out there now
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bsy




 
 
 
 

Post Thu, Nov 24 2022, 8:26 pm
We needed a second car and bought a brand new one with cash. Used was not much less and you don't know it's history
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notshanarishona




 
 
 
 

Post Thu, Nov 24 2022, 8:29 pm
bsy wrote:
We needed a second car and bought a brand new one with cash. Used was not much less and you don't know it's history


We have about 4000$, it’s not going to get us very far unless we finance which makes me nervous. We live month to month, don’t really have an extra $400 a month in our budget.
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Hashem_Yaazor




 
 
 
 

Post Thu, Nov 24 2022, 8:29 pm
You can get an auto loan for a gently used car from a dealer. Let's say 2 years old which will still be significantly less than a brand new one and then you're still financing and paying interest, but on less. And you have something to own at the end (say 5 years).
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bsy




 
 
 
 

Post Thu, Nov 24 2022, 8:30 pm
Hashem_Yaazor wrote:
You can get an auto loan for a gently used car from a dealer. Let's say 2 years old which will still be significantly less than a brand new one and then you're still financing and paying interest, but on less. And you have something to own at the end (say 5 years).

A 2 year old car is NOT significantly less right now in this market.
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stardream




 
 
 
 

Post Thu, Nov 24 2022, 9:03 pm
This is a tough spot. $4,000 is basically getting you not much better than what you have now, it will be pretty old and high mileage. Can you wait until your car actually dies and hope it may last you longer than you think? You may have time to save up some more and it will help if used car prices continue going down.

Can you get a car around $10,000 and finance the difference? Something like a Toyota Corolla or Honda Civic if they are big enough that's around 10 years old and hopefully a bit under 100k miles?

I would hesitate to finance a new car if you don't know you have enough room for it in the budget. Even financing a 5-7 year old car should be significantly less monthly payments compared to new or 2 years old.
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Hashem_Yaazor




 
 
 
 

Post Thu, Nov 24 2022, 9:09 pm
bsy wrote:
A 2 year old car is NOT significantly less right now in this market.

Ok so 5 years old from a decent brand so it has a lot of life left to it.
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amother




Cornsilk
 

Post Thu, Nov 24 2022, 10:35 pm
We’re paying a little over $400 a month for a brand new Toyota Corolla purchased, not leased. I don’t know if the same is true today, but manufacturers often offer low interest rates. We’re paying 1%.
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amother




Garnet
 

Post Thu, Nov 24 2022, 11:06 pm
amother Cornsilk wrote:
We’re paying a little over $400 a month for a brand new Toyota Corolla purchased, not leased. I don’t know if the same is true today, but manufacturers often offer low interest rates. We’re paying 1%.
No interest rates are really high now. We just got a loan and are paying 7.

But op you can finance over 6-7 years to lower the monthly cost.
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amother




Garnet
 

Post Thu, Nov 24 2022, 11:07 pm
notshanarishona wrote:
I kind of hope the market can’t get worse than it currently is.
Market is getting better but interest rates are getting worse. So If you are financing it’s evened out
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notshanarishona




 
 
 
 

Post Thu, Nov 24 2022, 11:10 pm
amother Cornsilk wrote:
We’re paying a little over $400 a month for a brand new Toyota Corolla purchased, not leased. I don’t know if the same is true today, but manufacturers often offer low interest rates. We’re paying 1%.


Toyota was offering something between 7-8% interest for financing, Carmax is 10%.
Any idea which company is offering lower?
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Hashem_Yaazor




 
 
 
 

Post Thu, Nov 24 2022, 11:24 pm
I know when we financed our van a bunch of years ago, we did it through our bank with better rates than dealerships.
We used a PNC Auto Loan which basically paid the dealer with a check and we paid back our own bank which could give competitive rates knowing our financial stability.
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amother




Cornsilk
 

Post Thu, Nov 24 2022, 11:28 pm
notshanarishona wrote:
Toyota was offering something between 7-8% interest for financing, Carmax is 10%.
Any idea which company is offering lower?

Maybe depends on your location? Just searched Toyota financing offers and saw 3.5%. Not as good as last year, but not bad.
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notshanarishona




 
 
 
 

Post Fri, Nov 25 2022, 3:07 am
Hashem_Yaazor wrote:
I know when we financed our van a bunch of years ago, we did it through our bank with better rates than dealerships.
We used a PNC Auto Loan which basically paid the dealer with a check and we paid back our own bank which could give competitive rates knowing our financial stability.


That’s a good idea. We do have a home equity loan at a good rate that I can always take the money out of, I was just hesitant to do that .
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