Advice for first time car buyer?

[LChoy]

Hi CP

I know there were long previous threads about this topic, so if there is one that is currently, I can move it there

Anyways, we are finally looking to buy our first vehicle.
We were thinking of something like a Honda CRV 4WD LX, Subaru Forester CVT 2.5i, Nissan Rouge FWD SV, Hyundai Sante Fe Sport AWD 2.4L. Also consider the equivalent classes for Toyota (RAV4), Kia, Mazda, and Ford.

Basically, a small to mid size SUV, All wheel/4 wheel drive

I know there are many car experts and those in the business (Pylon comes to mind) on CP. If you are interested in sharing advice for a first time car buyer (what to look for, how to negotiate, warranties..etc)

I have done some reading on the whole finance vs buying, terms (84 months seem crazy long). However, there are considerations like what we really need in a vehicle, or how to navigate the different level of trims (packages) available for each car.

This will be our only vehicle, and at least one of us will be driving to work daily with it. I know in my parents generation, they just buy the car, and drive it until it breaks down. Now, there are so many other variations such as trade in, and keeping vehicle value.

Ultimately, I hope to be able to narrow my list down to a max of 5, so I can test drive them and really pick the best vehicle for us.

Thanks in advance,

LChoy

[skudr248]

I am so anti-dealership buying, so I won't comment on anything dealership related.

Anyway, CRV's, and the RAV4 I recommend if you're like me and like reliability. I would recommend even looking at a Acura MDX (2014 and under models only) if you can find a nice used one in your price range (always easier to negotiate in private sales). They're AWD, and just my personal favourite in the look of both the interior and exterior, and absolute beasts in the winter!

Anyway, good luck! If you can let us know the price range you're looking at we can probably help you out a bit more. Cheers.

[Fuzz]

We got a really good deal in November on a previous model year. I think Sept-Dec is the sweet spot for buying. You can negotiate a bit more, get things like winter tires thrown in as they just want to get rid of the vehicles. Downside is possibly selection.

If they ask your price limit, ALWAYS lowball from whatever the MSRP of the vehicle you want is. If you tell them your budget is the price of the vehicle you are looking at, that's what they will want for it.

[Sliver]

Originally Posted by skudr248

I am so anti-dealership buying, so I won't comment on anything dealership related.

Anyway, CRV's, and the RAV4 I recommend if you're like me and like reliability. I would recommend even looking at a Acura MDX (2014 and under models only) if you can find a nice used one in your price range (always easier to negotiate in private sales). They're AWD, and just my personal favourite in the look of both the interior and exterior, and absolute beasts in the winter!

Anyway, good luck! If you can let us know the price range you're looking at we can probably help you out a bit more. Cheers.

CRVs hold their value so well you're potentially better off buying new versus one a year or two old for how little you'll save (could be exceptions, of course, but I wouldn't discount new on those). Not sure about RAVs. They are so girly and lame to me that I'd never even consider one.

[rd_aaron]

I spent a LOT of time researching and test driving the vehicles you are looking at and ended up with the Mazda CX-5 for what it's worth.

If safety is important to you, you can review the safety test results and videos here:

http://www.iihs.org/iihs/ratings

and here:

http://www.safercar.gov/Vehicle+Shop...Newer+Vehicles

I also used this Unhaggle website which essentially competes all the dealerships in the area against each other and you can choose the lowest price (but you don't know which dealership corresponds with which price). Costs $100 but it saved me $1000 so it worked out. We had negotiated a price with one dealership as low as we could get it, and then used Unhaggle to see what the lowest offer in the city was. The lowest offer was $1000 lower than our best offer from the dealership and they straight up told us they couldn't match and we should take that offer from a different dealership. You're not obligated to take it by the way, so you're just risking the $100. Worked out well.

http://www.unhaggle.com/

[Erick Estrada]

Personally the CRV and Forester are the best bets in your selection. I personally find current Toyota products very underwhelming as they have been riding on the coattails of reliability for too long as their interiors have got progressively lower in quality over the years and their engines are mostly outdated.

When buying a new car always look at the total price and don't base your purchase off monthly payments alone. Also watch out for the dealer add-on's like financing insurance, extended warranty, etc. these are all good deals for the dealer not the consumer. Also when it comes to 3M, window tinting, etc better deals are always had at places like Shadow Tinting, etc. Buy the car alone and nothing more from the dealer.

Don't necessarily base your decision on Consumer Reports as they are somewhat biased as there are brands they love (Subaru) for example that have their reliability warts. I suggest googling Car & Driver, Motortrend, Road & Track, etc for CUV/SUV comparisons as they all take out a handful of the vehicles you listed and take them on road trips to compare them. Most important drive them yourself and choose the one that feels best to you as the vehicle has to make you happy at the end of the day.

[wontondestruction]

Don't fall for the "How much are you looking to spend per month?" question. Don't ever give them a number. Have them give you their best number. Do your research. Get a good idea of how much the cars are selling for, and what the invoice price is. Sometimes, dealers will get a rebate after the car is sold, so take the invoice price with a grain of salt, as the price actually paid by the dealer can be less than the invoice price. Shop around and ask for the dealer's best price. The early fall is the best time to go, as the dealers will be looking to clear out the 2015 models to make room for the 2016 models. Usually, the dealer with the highest volume will have the lowest price. If you're getting a Honda, T&T will probably have the best price, but I would still shop around, and let them know you're shopping around. If any dealer pressure's you to buy, just walk away. If you can take something that's already on the lot, they'll probably be able to offer you a better price than something they have to bring in. Also, some say that if you offer to pay cash, you can get a better deal.

[mrkajz44]

It sounds like you know you want an SUV, but I'll put this here anyway. Make sure you actually need one. I was car shopping recently and my GF said we already have a car and we should get an SUV because it's likely we'll need one in the future. We will likely start a family somewhat soon and a dog is likely in the mix at some point. So in that sense, an SUV would seem to be the right fit.

The reality was that we had absolutely zero need for one now and a commuter car was just fine. The costs saved in gas and maintenance on a smaller car will greatly outweigh the hassle of selling one of the cars and getting an SUV later if we actually need it. Sometime I fell like people just buy bigger vehicles than they need because they feel like "that is what others are doing" without really assessing their needs.

TL;DR - you are probably fine and have done your homework, but don't buy a bigger vehicle than you really need, regardless of what everyone else is doing

[Pablothegreat]

Would you consider looking at the used market, and specifically a lease takeover from someone with a relatively newer vehicle (2013+).

You can take advantage of the depreciated price (10-25% less), still get into a payment stream to manage your monthly cash flow and if you wanted to pay it off, your overall cost may be reduced as you wont need to pay the unearned interest that is remaining on the lease. In addition, most people understand that the current lessee may have to throw in some cash to you to balance what the vehicle is worth versus the remaining balance.

If you plan on holding the vehicle for long term, this may be a great way to lower your cost outlay for a vehicle.

[blueski]

You'll always get a better deal near the end of the month than at the beginning at a dealership. Sales people trying to sell their n'th car to make their "sell this many and get this level of bonus."

[TSXCman]

Financing over many years at a low interest % is a good idea. Borrow their money for cheap if possible.

I like to see what each company is offering for financing for new, then also look into their certified pre-owned offers (CPO). I bought a CPO in a month that was offering a low rate. It meant that I saved on the heavy depreciation years, borrowed the cash, and have factory protection over a longer period.

[Fuzz]

I've heard that CPO often means jack squat. It depends on the dealer, I guess but "CPO" isn't a legal term and doesn't offer any recourse. It just means they went over their checklist and "certified" it. It was on an American site though, so could be different here.

[TSXCman]

Originally Posted by Fuzz

I've heard that CPO often means jack squat. It depends on the dealer, I guess but "CPO" isn't a legal term and doesn't offer any recourse. It just means they went over their checklist and "certified" it. It was on an American site though, so could be different here.

For me it meant that they put in new brakes, had a big checklist of items to make sure met a certain value (given to me), got 2 extra years of full coverage ($50 flat fee for warranty work for years 5 and 6), and 1.9% APR finance. The non-CPO and new cars had 5.9% APR and cost what they cost...

Mine worked out, but I research this stuff to death. I can sell my car a year later at my purchase price last year as well.

[TSXCman]

CPO from a dealer (Audi, Acura, etc) will mean whatever their explanation says it does. But the perks could be worth it depending on the month's promotion.

[Kjesse]

Wait a few months if you can. There are going to be some amazing deals out there very soon.

[GP_Matt]

I think you have to remember that dealers can play with numbers. 0% financing means that they have priced the cost of the interest into the purchase price. Higher financing just puts the money at the back end.
On that note, if the dealer is offering 0% financing you can negotiate the price lower if you finance yourself or pay cash while if the dealer has 6% financing they may offer you a lower price if you finance through them.

[DoubleF]

Originally Posted by Pablothegreat

Would you consider looking at the used market, and specifically a lease takeover from someone with a relatively newer vehicle (2013+).

You can take advantage of the depreciated price (10-25% less), still get into a payment stream to manage your monthly cash flow and if you wanted to pay it off, your overall cost may be reduced as you wont need to pay the unearned interest that is remaining on the lease. In addition, most people understand that the current lessee may have to throw in some cash to you to balance what the vehicle is worth versus the remaining balance.

To add.

If you plan on holding the vehicle for long term, this may be a great way to lower your cost outlay for a vehicle.

Take your car to get inspected by someone else other than the dealership! Their bazillion point inspections mean nothing. They can stare at an issue and ignore it if they deem it "reasonable". I've been told to get it checked at another dealership (ie: Honda to Honda etc.) as they will quote in OEM parts and pick apart the car for you (because if they think you own the vehicle, they'll love to get you in on whatever bull#### repair that doesn't need repair). Use the list to haggle stating you might want a different car as the repairs are too high.

Another thing, inspection is somewhat subjective. "Tread at 40% is acceptable for us" is one I heard on my car as front and back were 80% vs 40%. Same as brakes. I'm not 100% but the cut off is like 30%?

Good luck.

[pgsieve]

All I can say is I bought a brand new Hyundai Elantra from the Gallery in the South last year. Car showed up with a dent and was missing a door handle. I've had nothing but problems since I bought the car. Stay away from them!

[Calgary14]

For a used car I'd recommend taking it to InspectaCar. They do inspections and can verify the condition of a vehicle but they don't do the repairs so there is no conflict of interest. For a new vehicle I wouldn't bother

[pylon]

Definitely take the warranty, the luster shine, the undercoating, and finance it for as long as humanly possible. Also, buy a VW Tiguan. From Northland VW.

That is my completely unbiased opinion.