Tuesday, September 25, 2012

New Car

We’re buying a car today – in cash.  The brakes in Mr. M’s car need repair and it equals about the same price if he traded in his car so we went car shopping. Mr. M and I searched used and new cars and discovered the following:

1.       To buy a decent car in our area used is the same price as a new car. Seriously – we looked at a 2010, 2011 and 2012 and somehow the 2012 was cheaper. How? I have no idea and my argument of only buying used cars was squashed on the spot.

2.       When a dealer sells you a new car, they make the same amount of money no matter what but they have the potential to make more money off a used car.

3.       If you belong to a credit union and try to buy a Buick brand, they’ll give you the suppliers rate (this saved us thousands of dollars).

4.       If someone in your family drives a competitors car, you can get a switcher discount

5.       More rebates for cars appear at the end of the month.

The downside to this purchase is that we did take the money from his parents.  This act kills me but I know that fixing his brakes and trying to milk his car for a few months would more or less be throwing good money at a bad problem. I’m trying to think of this is a positive light that this car will be paid off by 2014. We already know how to live beneath our means, the money that we borrowed will not have any interest accruing and we’ll just get gazelle intense.


  1. New cars lately have been going for cheaper. It's crazy! Either that, or they are only $1K or $2K cheaper.

  2. The phenomenon of used cars matching new cars is because of the whole cash for clunkers. Another example of the law of unintended consequences... they were trying to help people be in a better position to buy better used cars, but destroyed the supply of said used cars (and parts), making them overall more expensive than a new one.

    Congrats on the new car! And having it paid off in 2014 is quite a goal!

  3. New car smell, you are so lucky, my husbands folks are the most selfish cheap people I know. Why are we taking them on a trip next week?

  4. Congratulations on the new car! It is good that you decided to buy a new car instead of repairing the old one that would cost more or less the same. At least, you won’t worry about dealing with the problems your old car had. Anyway, smart move in choosing a Buick brand car, as this brand is known for its durability even the used cars.

    Carry Demaggio

  5. How much did you pay for the car? I think you landed a pretty good deal with it. And it is true that it was smart idea to buy a new one rather than waste the money on repairs that wouldn’t permanently fix the problem. Just look on the bright side: you now have a new car that won’t make you worry about problems while you’re on the road.

    @Timmy Radloff

  6. It would actually depend on each individual’s preferences, whether to buy a used car or a brand new one. It would be about one’s discretion whether he/she would weigh the two options’ pros and cons. Anyway, congratulations! Don’t worry too much. You’ll be able to pay it smoothly along with the right financial discipline. :)

    Sebastian Gaydos

  7. It’s good to hear you learned something from the experience. You can surely use those if ever you have to buy a new car in the future. You know the first in the list is strikingly true, based on my observations. Buying a used car is a case full of uncertainties. So, to be able to get a decent car, you should still allot a substantial amount of money and a lot of time knowing more about the car you are planning to buy. Congrats, by the way!!

    --> Ivo

  8. Yeah, it’s in times like this when you’ll really learn the basics about purchasing a brand new car or a used one. Congrats on your new car! Sebastian is right. You’ll be able to pay for it easy, for as long as you make sure that you spend only on what is necessary. Include this car in one of your priorities and I am sure that you’re not going to have a problem paying for it.

    Nettie Christensen

  9. I think you were right to buy a car instead of investing in repairs for the car that’s headed toward the car graveyard (I might’ve exaggerated this one). Anyway, I think you’ll be able to pay for it just fine. Just remember to stick to your budget always, so you won’t go overboard with your spending. I hope your financial situation will improve soon, and that this car would last so you totally get your money’s worth. =)

    Maria Wegner