Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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Midsize Sedans Comparison Thread
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So, for argument's sake, say you're paying $400 a month, and you're in the 4th year of a 5 year loan. You may lose $2000 of depreciation on your car, but you've paid off approx $4000 off what you owe. So, by delaying a year, instead of getting a new car for your trade-in plus 12K, you can get a new car for trade-in plus 10K. Go one more year, and assuming depreciation is $1500 (depreciation slows as a car ages), then a new car would by your trade-in plus $7500.
If you hold onto the car after it has been paid off, then you can start putting away the car payment into a savings account, saving up for a large down payment on your new car, or college, or whatever.
So since you say you do not finance more than 3 or 4 years...after 4 years you have no car payments. What were you paying on the loan, maybe $300 per month? If so, then you simply save the $300 per month that you had been paying on the loan. If you keep the car for 6 years after the loan is payed off you will have accumulated $21,600, plus interest of maybe $3000 for a total of over $24,000. So now you can pay cash for your new car.
Plus if you plan to keep the car you buy for cash for 10 years, you can drop the savings rate down for the next car to maybe $200 per month.
2014 Malibu 2LT, 2015 Cruze 2LT,
One thing for certain, it won't be a lease and it won't be on time. Cash and I would think around $2,500 off as a discount seems around the right price, or just wait and buy one used. Wonder how the Charger compares to Mustangs in reliability? Should be interesting to read the next CR magazine for 2007. My goodness - 2007 is near!
-Loren
It's bad enough to buy a depreciating asset (which most people have to do), but its another thing to borrow and pay interest on it.
Too many people get upside down with long financing terms.
Now from a bankers perspective, yes indeed, it pays to borrow, or should I say lend. And yes, a business assuming debt to buy another company, or expand does make sense, if that yields more money. Personal debt on a car is not going to make you one penny.
Work, BTW, is highly overrated and indeed a four letter word. If you enjoy the particular line of work, as it being somewhat of a hobby or special interest, by all means do it for life. To work a job, to support a car, boat, or whatever habit, usually leads to a life of misery, as in working until death. Plan on saving money, and avoid the work to death syndrome. You may just find by not making the banks rich, you, yourself can later on afford more expensive cars and toys, and live without debt hanging on your back for life.
What college did you go to? GM needs some financial advice. Oh wait, they are in good shape now, if one believes in the current new releases, and the tooth fairy.
-Loren
Nice looking car, with classy interiors, and good looking materials, seats and all. If you like FWD, the handling is good, I guess. I kinda like the Altima, which with a V6 is less expensive, and has good resale, and perhaps good reliability. Still not sure about Nissan. It seems to be up and down these days. Are Passats reliable? Warranty is pretty good. Price seems high on some of those Passats, yet the base ones are not too pricey. As it nears $30K, I would be thinking BMW. In the twenties, it looks like a pretty fair deal.
But the best rates are given to the people that are the most able to pay cash- low risk for the financial institutions. My wife used to work for GMAC- did you know that at one time, half of GM's income was from GMAC? Pretty amazing.
Another element in the buying decision is the amount of compromise. I am guilty as sin of buying a four cylinder Mustang, way back when, while I coulda' had a V8. One of those days when I wasn't thinking straight. The low cost of the car, a whole lot of extras on the car (for it's time), and better gas mileage seemed to add up. But alas, the real Stang was the V8, so the poorer handling and no get up and go finally ended in trading it in after less than three years time.
-Loren
I didn't make any money on the deal, but the way I look at it, I minimized the expenses associated with owning a car.
And we'll let this discussion get back to the cars...
When/if I purcahse my VW Passat. I will be buying at the end of the model year, getting top dollar for my trade in, putting down a good amount that doesn't hurt my savings too much, and financing a nonmenal amount that won't be a big deal month to month. And as my mother told me, I will have what I want, not just what I need. Though I don't want to work forever, you have to make a plan to get what you want. Usually, that involves work, the other alternative may find you in a cell with a guy checking you out all the time.
Remember, a rebate or reduced rate financing does NOT come out of the dealer's profit.
One thing that wasn't so great is the firm suspension. The freeways in Detroit are, well, not the smoothest around, so there was a lot of bumpiness and suspension noise. The body soaked up most of them, but I did notice a few rattles over the worst stretches. If I lived there, I might have to go for a car with a smoother ride. Also, the rear seat is not very roomy compared to mid-sizers like the Camry, Fulan, and Sonata. Otherwise a sweet ride.
As for working for what you will need and want in life, sure that's a good thing. But if you save and invest, you will reach a point in time earlier where you no longer have to work the 9 to 5 job to achieve your income. By all means, if it is not a huge portion of your income going into buying a car on time, go for it. Actually, if you are making lots of money like that, you could save two years and pay cash.... but that's just me
Your making a bunch of money, you got say six months cash on hand in case you are out of a job and American economy hits the skids, and the car may be your reward for hard work, so yeah, just enjoy the ride -- have fun! I think young people should spend on something else in life too. That is vacations which include travel. See things, go places when you are young. Some wait until retirement, and no longer feel well enough to travel. So what seems like the most stupid use of hard earned money is not. The great memories of travel and adventure are worth every penny--- within reason. See the National Parks, travel to cities, and well whatever the intrest for vacations. Too much work and no play also is not productive. As I age, I am taking less long trips, but have the time to do other things, and shorter travels. Take that Passat and drive on!
Life's good!
Negotiating is key. They knew I could go anywhere and buy a Fusion from any Ford dealer. Not only could I buy a Fusion I could have bought an Accord, Camry, Sonata, G6, Malibu, Altima, Jetta.. competition is great. Also having stellar credit works to your advantage.. :shades:
Forgive me if this was covered earlier in thsi thread, but what ended up convincing you to take a Fusion over your other options? I certainly don't mind being that I'm a Sales Consultant at a Ford dealership, but I do like to see/hear feedback so I can relay that to my potential customers.
Personally I love the Fusion, but it may be for reasons completely different then yours.
Forgive me for stepping in here, but my wife is looking for her next car, and the Fusion and Milan are at the top of her list. Why? Simple (according to her), price and style.
Despite the fact that they're selling well, you can still get a good deal on a Fusion if you work for it, saving thousands over the competition (all except the Sonata anyway).
And style? Nothing else like it. Despite the Gillette Fusion front end (which looks smooth to me, especially in black), it's a great-looking car. Everything else, including the Camry, Accord, and Altima, look like a melting jellybean. It's old, and the interiors aren't much better (especially the Altima, ugh!)
You want to sell the Fusion? Tell your customers that it's like nothing else out there, for a great price. But apparently, you don't need help selling them, since they're flying off Ford lots nationwide. The local dealer has at MOST 5 on their lot at any time, and they're usually gone within a week...
The current Camry just got a brand new re-designed and the whole new Altima is coming out this fall. However, the Accord is old though I'll give you that.
As for the interior, IMO, Camry and Accord are miles ahead of Fusion in term of ergonomics and styling. And yes, even the 3-year-old Accord has a better interior. They utilized higher quality plastic and less hard plastic. The fit and finish is unrivaled by any other midsize sedan. In another word, the Camry and Accord are still the benchmark in this segment and you get what you paid for. However, rumor states that the new Altima's interior is going to be much better than the current model and it's driving dynamic is going to be the best in class so I am looking forward for its debut.
I like the styling of the Fusion except for the backend...its got a very high beltline back there and a very high trunk which I think looks a little disproportionate. But I like the sharp grill. Interior is nice enough, but its not Camry or Accord. The new Camry interior looks and feels like a Lexus.
I completely agree. And from what I have seen so far, it's only going to get better. Add to the the introduction of an AWD model for the 2007 year and a hybrid in development, there are a lot of things to keep up the excitment.
As for the styling in the Camcord, they are nice, but I don't see how the Fusion is lacking to them in any way. Especially on the higher trim levels with the analog clock and "piano key" black satin finish. Granted maybe I'm not paying as much attention to how much of what type of plastic is being used, but then again none of my customers have said anything about it either. (Again, I AM in Pullman, WA.. not exactly the largest city in the world.)
I'm not saying your wrong, just that I disagree with the idea that the Fusion doesn't provide the same level of quality, especially if you are comparing apples to apples with trim levels and/or price points. :shades:
-Loren
Correct! And it's no accident, and it's not copying. It's form following function. Current technology and all the requirements of the midsize cars dictate 90% of the styling. By the time the engineers get through, the stylists don't have much to work with.
None of the rest have much appeal to me, in terms of appearance.
Styling is subjective and everyone has different perferences.
Exactly why I bought a Mazda 6 in '04 and haven't looked back since!
Thank you.
I'm sorry, but the '07 Camry, like every Toyota, does nothing for me. And yes, I still see a melting jellybean, along with the Accord. I may be in the minority, but it's my opinion, and I'm sticking to it!
They debuted the new Aura at the local dealer this past weekend, and I have to say, I was impressed. The styling looks great to me, smooth lines and sharp details. The interior looked top-notch, better than the almighty Camry in both materials and execution, although the peanut butter colored leather was definitely not my style.
This car is leaps and bounds better than the laughable L-Series and if, and I mean IF, Saturn markets it right, they have a winner on it's hands.
Interior materials and quality weren't bad either and much much better than the Pontiac G6 that I had an the Altima in which I've owned for two years.
I'd say the new Aura is at least on par with the 2002-06 Camry's interior materials. Not quite on the level of the new Camry or current Accord, but CLOSE.
The model I saw as an XE and I think the car will do well for Saturn.
Although I liked the styling of the Fusion, the interior just seemed lower class than the Accord. The dash gauges were especially ugly (contrasted with the beautiful illuminated gauges of the Accord). The only stick Fusion was a bare bones SEL.
I did regret not checking out the Milan. It looks like a really nice car, and the interior looks a bit nicer (at least from the commercials).
Driving experience of the Fusion was another key seller. The car drives confidently and handles like its on rails. I wanted different, I wanted a vehicle that was going to standout in the crowd of Accords and Camry's. I wanted style. My personal feelings were the Fusion was it. Some custmers may balk at the smaller V6 in the Fusion. Educate them, let them see .5 liters is not that much in size, let them see the 0-60 numbers, 6 tenths of a second difference is negligable.. With all the Fusion/Milan have to offer along with being thousands less.. The car will sell. :shades:
How about safety! Does anyone find this important? Does anyone know IIHS.org? Most midsize sedans do well with standard or optional side airbags, except for the Nissan Maxima or the Suzuki Verona. If you own a Maxima or Verona and have children, go and trade it in for a Malibu which received a sliver rating by IIHS w/optional side airbags. FYI, the Fusion was last on the list w/out optional side airbags. :lemon:
My pick for a family car will be number one on the midsize sedan list, the Subaru Legacy. Not to mention Impreza tops the small car list and Forester tops small SUV list. :shades:
Also how about dependability? Consumer Reports gave the Legacy a 'better than most' rating and 'much better than most' rating for both Impreza and Forester. The only set back is the rear seat room but fortunately for me I have only 2 kids that are 3 and 9. If you have 3 teens that are 6' tall, I'd say buy a Ford Five Hundred, Toyota Avalon, or Hyundai Azera.
Safety and dependability combo is on the top of my list!
GO SUBIE! :P
You CAN get a 6 with 4-cyl, manual AND heated seats. All you need is leather seats.
I'm guessing you have a gray one, mz6greyghost? That is the color I intend to get sometime in the next year, after finishing paying off my wife's car and paying the last of my daughter's college tuition (or when the old minivan I am driving dies, if that should occur first).
-Loren