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While scouring the web for personal finance stories, I found some time-sensitive advice. The Consumer Reports Car Blog notes that Labor Day weekend can be a great time to buy a new car, especially if you’re looking at last year’s models.
As the model year transitions from 2007 to 2008, a slew of clearance sales compete for car-buyers’ attention. Choosing the right car from hundreds of available models is complicated by the big decision to save on a discounted, ‘07 car or buy the latest car fresh from the factory.
On the surface, many of these Labor Day weekend deals look attractive, especially for models that are not significantly changed for 2008. However, Consumer Reports Auto Price Service’s analysis shows that there is even more potential savings than shoppers may realize.
The piece explains why it’s especially important to seek the lowest price when buying a car at this time of year. The Consumer Reports web site includes a free article on how to drive a great, end-of-summer new car deal. If you are considering a new car, take some time to prepare for the transaction. GRS readers have shared their car-buying success stories in the past:
- Fritz buys a new car
- Two approaches to car-buying
- A real fighting chance is the best story of the bunch, I think, because it describes a $35 tool that can save you thousands of dollars.
You may also find these resources handy:
- Consumer Reports auto issue round-up: Top picks for 2007
- Edmunds True Cost-to-Own calculator
- AAA’s 2007 guide to driving costs [PDF]
Remember: new cars lose their value quickly. Your best value may be a late-model used car. Of course, you’ll actually save any more by continuing to drive that old beater that’s been driving you nuts for so long!
Addendum: As Wil notes in the comments — and as a couple people have e-mailed me — there’s a new study out that shows holding on to your car for 15 years (or 225,000 miles) could save you nearly $30,000.
[Consumer Reports: Save on a clearance-priced new car]
This article is about Cars, Money Hacks Friday, 31st August 2007 (by J.D. Roth)
August 31st, 2007 at 2:01 pm
Another bit of car buying advise from Consumer Reports via CNN: http://money.cnn.com/2007/08/30/autos/cr_drive_200k/
Drive your car to death and save $31000 — if you can keep it running 200,000+ miles over 15 years you can pretty much save enough to buy the next car compared with typical consumer habits.
August 31st, 2007 at 2:47 pm
Very timely this. One of our cars is becoming quite unstable and I don’t feel very safe in letting my wife drive it.
Fortunately, this is why we’ve been saving up and will be able to pay straight up cash for it. Now to find the right deal and slog through the horrible buying process…
August 31st, 2007 at 3:24 pm
Can anyone comment on what a Honda Civic sedan (2000) is like with two kids? We’ve got one kid in a car seat and we’ll have an infant within weeks. Is this doable or are we being crazy?
August 31st, 2007 at 3:45 pm
wow — my car is going to have 225K miles on it long before 15 years have gone by. Is that going to save me money as well? Somehow, I don’t think so …
August 31st, 2007 at 4:31 pm
Ugh. New cars are money pits, even more than used cars. Between loans or leases, extended warranties (which cost more than the typical coverage they provide) and depreciation, buying new, even “last year’s” model, is an enormous waste of money.
I’ve paid *stupid tax* on cars. I’ve bought a slightly used car (5k miles, repo’d), a brand new car (4 miles) and a brand new (7 miles) motorcycle. I’ll never buy a new car again. The cost is just enormous.
The slightly used car I paid $14,000 for. I got about $3000 when I traded it in 5 years later. It had some bumper damage and a couple maintenance issues, which took about $2000 off the bluebook trade-in price.
The brand new car I paid $18,000 for, with the above trade-in. I’ll be lucky to get $9500 for it, and its only been 3.5 years since I bought it!
The motorcycle I paid $8000 for and got $4500 (bluebook dealer retail at the time) when it was totaled by insurance after I laid it down.
All told, I’ve thrown away $23,000 primarily in depreciation!! That’s the price of another car!!
I think it is vital to mention that this was all done between December 1999 and now. Never again will I purchase a brand new, or even slightly used vehicle again. Sure, cars are huge money pits anyway, but no sense making it worse than it has to be.
September 1st, 2007 at 2:23 am
i paid $11,000 for my used 1993 Explorer Ltd. 8 years ago when it had 90,000 miles onit, and I’ve put 100,000 miles on it since then… it’s appraised for about $3,000, but is probably worth less since the shocks need to be replaced, and the breaks squeak even though they’re new… it’s a bumpy ride compared to when I bought it almost a decade ago, but it’s paid for and still safe… i’d love a new car, but i love this one being paid for evn more. I’ll drive until it’s scrap metal, then donate it and start over on a bike for a while…
September 1st, 2007 at 5:14 am
[...] H/T: Get Rich Slowly [...]
September 1st, 2007 at 6:58 pm
[...] How to Drive a Great End-of-Summer New Car Deal @ Get Rich Slowly - If you are considering buying a new car, check out this post by J.D. This weekend might be the time. [...]