Automotive Forums

Here is our situation

Our current car has payments due until March of next year.  We then intend to save what we would have been paying on the car ($120 a month) for about 6 months or so as a down payment + trading in the car 2001 Chevy Cavalier probably have about 95,000 by then.  We could probably afford around $200 a month but not on a long finance deal perhaps over 3 years.  We are not averse to a used car which is probably what we can afford in reality. However, I think that the long term approach would be to pay a little more and get a new car and look after it.

We think we would like a stationwagon/CRV.  We think we could do with 4WD as we both work in a place whose roads are not the best and we live in CT where it can get snowy during the winter.  We want something with good MPG ratings perhaps a hybrid?  I would prefer something with a bit of pep to it but it would need to be a automatic.  We also want it to last forever (with good maintenance naturally!)  Some ideas we had were a Subaru Outback and a Toyota Highlander.

My main questions are when is the best time to buy?  We would probably be looking at end of year 08 models by then if a new car was the way to go.  What model lines are updating for 09? Who usually give good incentives/financing deals?

Thanks  

Finding a good used car for $200 a month after your trade in and down payment shouldn't be hard.  The part I can't get my head around is the 3 year financing.  I crunched some basic numbers, and recalled some recent experiences, and I really can't see how a 3 year finance will work for that little unless you get a very inexpensive car, which will probably be too old to get a loan on anyway. For example, let's consider a 2002 Honda CR-V LX (the lower of the two trim levels) with 4WD.  Right now, without any significant options or abnormally low mileage, that car is worth a bit over $12K. After your estimated $2500 trade in, $1000 down payment, then taxes on the new car and title, and with 8% financing over 5 years, your payments are a touch over $200/month.  For 36 months, the payments would be well over $300.  As you can see, you'd need to reduce the cost of the car dramatically (that CR-V is already 5 years old) to get the payments you want over 36 months.

So, for the sake of the discussion, let's just assume that you're willing to get into a 5 year loan.  Assuming the numbers above are accurate (you'll save some money if you can find really great financing or something)you're probably looking at 2001-2003 model year wagons and compact SUVs with 50-70K miles costing $11-14K.  You've got quite a few options.  If 4WD isn't a priority, the Mazda Protege5 is an excellent option.  It's one of the best -handling front-drive cars i've ever driven, with an expertly balanced chassis, brilliant steering, and serious tires/wheels.  It's not exactly fast, but i'd say it qualifies as having "pep."  It's also highly reliable.  My friend owns a 2002 with 140,000 miles, a good majority of which are hard-wearing chicago commuting miles in bad traffic.  He's maintained it well, and only had to replace the usual stuff: brakes every 50-70K, front shocks twice, and the battery, twice.  It still has its original clutch, and still feels, well not new, but absolutely younger than 140K miles.  

The Toyota Matrix (and its mechanical twin, the Pontiac Vibe) is an interesting choice.  It's tall and roomy, with a smartly designed interior.   It's based off of tried-and-true Toyota Corolla parts, so it's highly reliable, functional, efficient, and no-nonsense.  But it's no fun;  it weighs more than a corolla, yet has the same 127HP 1.8 liter engine. With an automatic, and especially with an auto/4WD combo, it's one of the slowest cars on the market.  Don't be fooled by the manic 180 HP "XRS" version either.  The 180 HP is certainly impressive out of a 1.8 liter, but it achieves this by opening the intake and exhaust valves wider above 6300 RPM (or so).  So basically, it feels just like the regular engine, then comes to live from 6300 RPM to its 8000 (or so) RPM red line.  This is both entertaining and tiresome on a manual transmission model, but with a 4 speed automatic, with its very widely spaced gears, it's absolutely laughably bad.  

Anyway, the CR-V, Subaru Impreza, Outback, Forrester, and Toyota RAV 4 are all very good, very reliable, very functional cars.  My favorites are the Subarus because they are both more capable on-road (they handle well and accelerate with a bit of verve) AND off-road (Their AWD system is rugged and sophisticated) than the others.  All of the Subarus come with the same 160-170 HP 2.5L flat 4 engine that's unique in its design, punchy, and durable.  They're not exactly fuel sippers, but you can easily achieve mid to high 20's MPG, which is about on par with the other small SUVs.  The CR-V is the most functional one here, and its engine is certainly no slouch.  My least favorite is the RAV-4.  I've somehow managed to drive these a lot here and there.  I find them over-styled on the inside, understyled on the outside, underpowered, and noisy.  Hundreds of thousands of buyers disagree with me, however, so you might want to give it a try in case I'm merely crazy.  

For those years, there were no Hybrids available as wagons/SUVs except the lame Ford Escape and even lamer Saturn Vue.  Both are inferior to the above cars in every way and aren't even much more efficient.  Also forget the Highlander.  It's a great car, but it's much bigger, heavier, more expensive, and less efficient than everything else mentioned.  

So back to money.  I'm pretty sure that the slow months for car sales are the winter months.  But i don't know if that's when those great financing deals come along.  Either way, I don't recall ever seeing advertised financing deals on used cars; it's always new cars.  And as you know, you won't be financing a new car for $200 a month.  

Good luck, let me know if you have questions.