Friday, Dec 19, 2008 at 23:29
GFC?
Sorry, you lost me on the ackronym? (Global Financial Crisis?)
I am intersted in new vehicles also for the
young feller.
Part of this excercise, is getting him to crunch the numbers - not just affordability of the vehicle he buys - but where it will leave him in 5 years when it is paid off as far as resale value and getting into his next vehicle.
It's a tough excercise because interest rates vary on loans between new and used and as a result, resale values after 5 years also vary with the difference in age and kilometers of the new versus used vehicles.
Yes you take a big hit in depreciation on a new vehicle in the first two years,but you pay less interest and end up almost better off than a one year old with 25,000km's - at the end of the 5 year payments period.
Another issue is that in two weeks time all these 2 year old used 2007 models suddently become 3 year old models in 2009 add 5 years to pay them off and suddently it's a 8 years
old car that no one wants to pay anything for come resale time.
However buy a new 2009 at lower interest rates - and in 5 yars it's paid off and only 5 years old come resale time...due to the lower interest rates the repayments are about the same per week...
It seems like he should buy a brand new one......
I would have thought that the used car trade and new cars would be doing it tough, with the world fiscal climate....but apparently not so.
A couple of
places we have made "cash no trade offers" (at 10% under the dealer list price), the dealers have said NO and chosen to hang onto their stock...
When you can only get $250 off a $25K listed car for "cash no trade" IMHO theres something wrong - either they have too slim a margin to begin with or are trying to rip people off.
We have walked away from a few vehicles in the last 3 weeks when a 10% dscount can't be acheived for cash no trade.
For an excercise today we looked at a new 60th anniversary Holden Commodore - advertised at 29990 driveaway.....only to find that it is false advertising - they want an extra $500 for metalic paint and don't have any white ones (the only non metallic paint colour available) in stock!
After 3 weeks at this I am so peed off - that we will give up now until after Christmas, and go back in the new year = and offer LESS than we already have and been knocked back - for their now 1 year older used, or even last years 2008 "new" vehicle.
Come 2009 as fiscal things tighten even more they will be even keener to quit their older stock to make way for new 2009 plated stock and models.
He who laughs last and all...
In the meantime the
young feller can save a larger deposit, and be in a better negotiating position.
It's kinda fun teaching a new chum the ropes of this car stealership routine but I'm growing weary of it now after 3 weeks looking.
Cheers
FollowupID:
608232