Quote:
Originally Posted by Frequitude
Thanks so much pylon.
The low interest on new cars sounds like there surely must be a catch, so the factoring in rebates to get an effective interest rate is exactly the sort of catch I was looking for. I'm savvy enough with Excel and business school to be able to work it all out so I really appreciate the info.
It sounds like the best plan is to just head over to GSL and Shaw on the weekend to get the research ball rolling.
One more thing, what's the Coles notes on buy and finance vs lease? I'm not someone who cares to have a new car every few years, obviously.
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Then finance. The only big advantage to leasing if you know you're gonna own it long term, is the fact you can walk away if you're in a huge wreck the first 2-4 years. But now, there are a ton of products you can buy from either your insurance company, or the dealer, that will compensate you if you have a huge claim and diminished value. So that benefit is essentially moot now. Plus leasing usually carries higher interest rates anyway.
And one thing. Especially if you're financing. If the perfect car comes along, and it's no more than 5-10% over your budget, just buy it. If you are financing you are talking 1500-3000 spread out over 5-7 years, it makes little or no impact on your monthly budget.
I have seen so many people walk away from the perfect car, only to come back a week later saying "I shopped all around, and your car is still the one I want." "Sorry sir, we sold it 3 days ago."
And then the cycle of insanity starts again. And now your time is costing you money. When I was on the sales floor, and I had that perfect car but it was just out of range after all the haggling, I'd say "Look, I don't have a used car factory I can call to order you up a <40,000 km, silver, 2009 Civic SI with a power sunroof, red interior stitching, and a faux carbon fiber hood."
If you do not exceed your budget by more than 10%, you are doing better than 90% of shoppers.