New advice on buying a new car

[HiImBrian]

Haha it's more/less just for fun. Plus my roommate gets $15 just for making an appointment with me hahaha.

[CornFed2.4]

http://www.wi-dsm.com/forum/showthre...6458#post36458

Located in Central WI, but willing to help deliver almost anywhere for price of gas & a plane ride home if that helps you any!?!?!

[HiImBrian]

^Not a bad find really.

I drove that 06 wrx limited yesterday and that thing was actually pretty sweet. I forgot that the 06+ came with the 2.5 instead of the older 2.0 which really spooled that little turbo right up.
http://denver.craigslist.org/cto/2840974722.html

I've also been chatting with my roommate who works at a mitsubishi dealership here in town as well as chatting with his boss, and it sounds like I could pick up a 2011 wrx for roughly $22000 with 0%APR for 36 months and monthly payments right around $300.
http://www.qualitymitsubishilittleto...84870814-P7923

I'd rather not pay that much for any car, but my thought is since I can get a good deal knowing somebody that works at the dealership, I could potentially own a car that wont depreciate as much in the next few years. Thoughts on this???

[niterydr]

Originally Posted by HiImBrian

^Not a bad find really.

I drove that 06 wrx limited yesterday and that thing was actually pretty sweet. I forgot that the 06+ came with the 2.5 instead of the older 2.0 which really spooled that little turbo right up.
http://denver.craigslist.org/cto/2840974722.html

I've also been chatting with my roommate who works at a mitsubishi dealership here in town as well as chatting with his boss, and it sounds like I could pick up a 2011 wrx for roughly $22000 with 0%APR for 36 months and monthly payments right around $300.
http://www.qualitymitsubishilittleto...84870814-P7923

I'd rather not pay that much for any car, but my thought is since I can get a good deal knowing somebody that works at the dealership, I could potentially own a car that wont depreciate as much in the next few years. Thoughts on this???

$22,000 loan with 0% APR for 36 months is more like: $611.11 with $0 down.

The only way to get to $300/month @ 0 % APR and for 36 months/$22,000 is to finance for 73months and that results in a $301.36.

The other option to keep the 36 month term is to put $11,200 down on the $22,000 loan.

Granted these loans are assuming a $0 payoff at the end, they could be setting you up for a lease or a residual loan.

[HiImBrian]

These numbers are all rough ideas since I didn't have a change to get in and drive the car yesterday.

Assuming I could get the car for $22000, I could put $6000 down and then have 0%APR for 36 months with roughly $300 payments each month. So what about the last $5200...at that point an interest rate would kick in assuming I haven't paid the car off yet. I plan to pay the car off well before the 36 months. I just like the idea of having low monthly payments in case something comes up.

Anyways, kbb estimates this same 2011 wrx to go for roughly $27000 from a dealer and $25000 private party. My thought is if I buy this car for say $22000 now, I'll have a $3000 "buffer" for when the time comes to sell the car down the road. Does this make sense and if so, is this a valid reason to chose the 2011 wrx over the 2006 wrx wagon?

Sry I'ma newb when it comes to buying a nice car lol.

[niterydr]

Buying any new car, I recommend gap insurance.

[HiImBrian]

Originally Posted by niterydr

Buying any new car, I recommend gap insurance.

What's gap insurance?

[tehehodi]

http://en.wikipedia.org/wiki/Gap_insurance

[goodhart]

Yes, would be stupid not to do gap insurance with ANY car you are taking out a loan on. The bank can explain it all to you and work it into your payment. Pretty much if you get into an accident and your car gets totalled, and it gets valued by insurance at say $5,000, but you owe say $8,000, gap insurance picks up the rest so you don't owe $3,000 on a pile of scrap.

[turbotalon1g]

Originally Posted by goodhart

Yes, would be stupid not to do gap insurance with ANY car you are taking out a loan on. The bank can explain it all to you and work it into your payment. Pretty much if you get into an accident and your car gets totalled, and it gets valued by insurance at say $5,000, but you owe say $8,000, gap insurance picks up the rest so you don't owe $3,000 on a pile of scrap.

thx for explaining that.

[tehehodi]

yoo can't read?

[turbotalon1g]

I don't see why one would really need it, unless your car is something that depreciates a stupid amount daily.

[goodhart]

If you end up putting a lot of miles on a car, it can depreciate very fast. It's typically only like $250-300 anyways, so it adds a whole $7-8/mo to your average 36 month loan.

[Murlo26]

Originally Posted by turbotalon1g

I don't see why one would really need it, unless your car is something that depreciates a stupid amount daily.

I think its typically for people that end up taking out big loans for a new car, like 20k+ and spread it out over a very long time. Like a 72 month loan or something crazy so the payments are low enough.

I agree for most it won't make sense, but for the above case it might. I'd say just save up a bit to put a downpayment down so you don't end up ever needing said insurance.

[turbotalon1g]

Cool, i've never taken out a loan for a car and I only took out $2k on my civic because I needed something on my credit since I knew I was gonna sell my house.

I'm hoping to buy a new car once the wife and I lock down some solid employment so this is all very helpful.

[HiImBrian]

Thanks for the helpful info guys!

[tehehodi]

go get 'em tiger

[niterydr]

Originally Posted by Murlo26

I think its typically for people that end up taking out big loans for a new car, like 20k+ and spread it out over a very long time. Like a 72 month loan or something crazy so the payments are low enough.

I agree for most it won't make sense, but for the above case it might. I'd say just save up a bit to put a downpayment down so you don't end up ever needing said insurance.

My recomendation was based on that coupled with the fact that the used vehicle (remarketing) arena will not remain hot forever. Some experts predict a sharp decline around 2013-2014 on vehicle resale values.

So for those that have cars that haven't "bottomed out" resale could be killer. Also remember, insurance companies pay out on NADA/KBB/Black book value, unless you can prove it is worth more, so when the esimated sale price drops, the more "bag" you are left holding if the car is damaged/totaled.

[HiImBrian]

Well I drove that 2011 wrx tonight and it moved a lot better than I had expected. I somewhat expected it to feel like the gt spec b, but it blew that car way out of the water! Only problem is I'm still kinda unsure of what I want. Ug I hate car shopping!

The 2011 wrx would be sweet because I'd be able to trade in my 2.5rs and knock down the price some and not have to worry about finding a buyer. Selling my rs privately in CO might be hard because I'm quite confident the jdm motor wont pass emissions. I'm not sure how a dealership would handle this, but I do know that they don't check emissions during a trade. The downside to the sedan is that it's currently got winter tires on the stock rims, so I'd have to buy another set in a few months when summer comes. I also noticed a little bit of ghetto rigging with the aftermarket short ram and the mas.

The wrx wagon seems to be a little less risky because it's $7000 less. I looked over the car and saw zero rust and zero hint of it ever being modified.

I have three options at this point:
a) 2006 wrx wagon
b) 2011 wrx sedan
c) wait

[HiImBrian]

option d) I found a couple evo8's for sale in my area asking $15000 ish. Isn't a 2003 kinda getting old though??

http://cosprings.craigslist.org/cto/2825796119.html
70k on the black evo for $15700 but the dude sounds kinda sketchy.

http://cosprings.craigslist.org/cto/2852075442.html
90k on the silver evo for $16000 with some wiggle room.