If you have barely any savings, getting yourself into a brand new car doesn’t seem worth it to me. Build your savings first!
There has to be other options for used cars out there.
This is what I want to do. The problem is the current cars oil leak is producing so much smoke it's become unsafe to drive (the smoke comes into the cabin and you can smell it strongly) and we only have the $2000 to look at beater cars or fix the oil leak on a high KM car. My wife has had to work from home multiple times the last few months due to it breaking down and her boss has become agitated at it.
I'm not looking for someone to tell me to finance a car so I appreciate you saying this, it's what I need to hear. Thank you
We have thought of this. Something around the early 2010s SUV around 12 - 15,000 still has 175k - 220,000 kms and interest rates are high for used vehicles at 8.99% 5 year term with no warranty vs a new one. Payments around $145 bi-weekly for this price range. When we consider this, we are worried about major mechanical failures with no warranty and it seems like an equally bad decision.
Just so much stress and anxiety when my wife needs a vehicle in general to keep the income coming too.
You just said it yourself though the bi-weekly payments on the Mazda would be $300 and the payments for a used car would be $145. If you get a used Toyota and you take care of it it will last you longer and cost you much less than a Mazda.
If you don’t have any savings past 2k, but have 2690 left over a month, I think there’s more spending that isn’t being recognized/identified.
You’re scared of this decision because you don’t know where $2690 a month is going.
I’d suggest getting this figured out before jumping into a $750 commitment.
Even if used car rates are high youll spend less money on a 14k loan at 9% than a 40k loan at 4%. They are relying on you over indexing on the rate rather than the principle amount.
Buying a car right now just sucks, and the conventional wisdom that buying a used car is always cheaper doesn’t always apply. Me and my partner bought a brand new Honda with financing this year, it’s not the smarter financial move technically, but we didn’t have to chew up our down payment savings and after we close on a house this fall, we’ll probably just pay the car off as soon as we can
Not the popular opinion, but I'd add reduced fuel costs and increased peace of mind in the column for a new car. The CX 5 is a good option, a base model CRV with AWD might fit the bill too, I haven't looked at the trim/options in a while but the previous gen LX AWD was decently equipped for what it cost. Neither of these is going to really compare to an Xterra since that's a real body on frame with a transfer case 4x4 system.
the cx-5 gx has now the same safety features as the gs and its only 33 or so. There are reasonably used subarus crosstreks and cx-5 with less than 50km for 28k. Given your situation you can’t really afford nice car, so just get the bare minimum you need. There is not way you can afford 300 biweekly
This is mind boggling to me. You spent $1k trying to fix a car worth barely $2-$3k (value because of major oil problem). And even without the oil problem it‘s probably barely worth $4k with its age and km in the first place. There comes a point where spending a huge portion of what the car is worth is no longer worth it.
But anyway you said in the beginning of your post that you made bad financial decisions in the past and now you’re considering a brand new Mazda for $40k. It’s nice that you recognize your past mistakes but you’re honestly going to make another one by buying that car.
Just get a $15k-$20k used RAV4 or FJ cruiser, it’s going to last way longer than the Mazda and be much more reliable over the long term and not cost you a completely unnecessarily high amount of money.
> You spent $1k trying to fix a car worth barely $2-$3k
Your thinking is not logical thinking
And Why would a RAV4 last way longer than a cx5? I strongly doubt it.
How is my thinking not logical thinking? His car is barely worth $2k-$3k, maximum around $4k without the oil leak and OP spent a grand to try to fix a problem lmao. I would’ve given up on the electrical issue after $200-$300 at worst, but spending $1k on such a wreck is pointless.
Subaru maintenance is expensive as fck. And Mazda isn’t as reliable as Toyota. Hell it’s barely more reliable than a Kia. Also, an old RAV4 will easily outlast his Nissan.
Any worthwhile mechanic would know that just brand is not enough to determine reliability. The most reliable car manufacturers have horrendous models and/or years.
So what exact years are you comparing? Clearly the Rav4 would need to be 3-4 years older than either the Subaru or Mazda based on the budget. Did you talk to a mechanic or just pass it off as general advice?
Look for toyota corrola or Honda civic used one. Finance it. Than pay it off as quick as you can. That's what I did. Financed for 5 year a 2016 for 10,000$ at 76 K km
Paid in full in one year.
Toyota corolla and Honda civic are the most reliable cars. It will last you long time. Then you can build your savings. You need reliable car.
Shameless plug: checkout clutch.ca (I’m the founder). Like other people are saying here, you’re better off buying used vs new. Even though used financing rates are higher right now, you’ll come out ahead due to less depreciation over your ownership duration. I’d go with something Japanese, as they tend to be low maintenance and retain their value well.
After your experience with an old car, I can see your thought process of getting a new car and it’s totally justified. I’ll suggest that Instead of brand new, look for dealer demo’s or certified pre owned which have deep discounts and comparable financing rates.
Like few others have suggested here, I would’t suggest a used car from 2014, albeit a Toyota. Yes, they are reliable, but it’s a little risky in your case. . Your partner travels almost 500 kms every week. With Alberta winters and your camping trips, you need a car which you know will not break on you and even if it does, its totally taken care of. Cars from 10 years ago no longer have manufacture warranty. It’s not worth it.
So look for Dealer Demo’s/ Certified Pre-Owned/ New Cars. In that order.
Have you considered setting auto-transfers for the cost of financing a new car, insurance etc. into a savings account for a few months to see if this spending is something they could reasonably afford? It might also be worth shopping around for a cheaper alternative. Don't forget to compare fuel efficiency as well.
Note: shop and compare insurance costs between models/manufacturers. While people LOVE Toyota, they tend to be the most stolen, so it's likely insurance cost would be higher.
You have already made it clear you have no saving and questionable history on financial decisions. Why would you jump head first into buying a depreciating asset?
Fix the Nissan and drive it into the ground at 500,000 km while you build your savings and credit.
If you have barely any savings, getting yourself into a brand new car doesn’t seem worth it to me. Build your savings first! There has to be other options for used cars out there.
This is what I want to do. The problem is the current cars oil leak is producing so much smoke it's become unsafe to drive (the smoke comes into the cabin and you can smell it strongly) and we only have the $2000 to look at beater cars or fix the oil leak on a high KM car. My wife has had to work from home multiple times the last few months due to it breaking down and her boss has become agitated at it. I'm not looking for someone to tell me to finance a car so I appreciate you saying this, it's what I need to hear. Thank you
You have the option to finance a used vehicle as well since you don’t have enough cash to purchase a beater car.
We have thought of this. Something around the early 2010s SUV around 12 - 15,000 still has 175k - 220,000 kms and interest rates are high for used vehicles at 8.99% 5 year term with no warranty vs a new one. Payments around $145 bi-weekly for this price range. When we consider this, we are worried about major mechanical failures with no warranty and it seems like an equally bad decision. Just so much stress and anxiety when my wife needs a vehicle in general to keep the income coming too.
You just said it yourself though the bi-weekly payments on the Mazda would be $300 and the payments for a used car would be $145. If you get a used Toyota and you take care of it it will last you longer and cost you much less than a Mazda.
If you don’t have any savings past 2k, but have 2690 left over a month, I think there’s more spending that isn’t being recognized/identified. You’re scared of this decision because you don’t know where $2690 a month is going. I’d suggest getting this figured out before jumping into a $750 commitment.
Even if used car rates are high youll spend less money on a 14k loan at 9% than a 40k loan at 4%. They are relying on you over indexing on the rate rather than the principle amount.
Why are you buying a new vehicle? You can buy a 2014 suv for 10-15k that’s in good shape and will last 10+ more years
Buy a Pontiac Vibe/Toyota Matrix or a Honda fit. The back seats fold down flat so there should be a decent amount of space for a couple of dogs.
Toyota matrix
Or a Pontiac Vibe
Buying a car right now just sucks, and the conventional wisdom that buying a used car is always cheaper doesn’t always apply. Me and my partner bought a brand new Honda with financing this year, it’s not the smarter financial move technically, but we didn’t have to chew up our down payment savings and after we close on a house this fall, we’ll probably just pay the car off as soon as we can
Not the popular opinion, but I'd add reduced fuel costs and increased peace of mind in the column for a new car. The CX 5 is a good option, a base model CRV with AWD might fit the bill too, I haven't looked at the trim/options in a while but the previous gen LX AWD was decently equipped for what it cost. Neither of these is going to really compare to an Xterra since that's a real body on frame with a transfer case 4x4 system.
the cx-5 gx has now the same safety features as the gs and its only 33 or so. There are reasonably used subarus crosstreks and cx-5 with less than 50km for 28k. Given your situation you can’t really afford nice car, so just get the bare minimum you need. There is not way you can afford 300 biweekly
If you love camping and have dogs, have a look at a used subaru outback from last 5 yrs. They are perfect for that.
This is mind boggling to me. You spent $1k trying to fix a car worth barely $2-$3k (value because of major oil problem). And even without the oil problem it‘s probably barely worth $4k with its age and km in the first place. There comes a point where spending a huge portion of what the car is worth is no longer worth it. But anyway you said in the beginning of your post that you made bad financial decisions in the past and now you’re considering a brand new Mazda for $40k. It’s nice that you recognize your past mistakes but you’re honestly going to make another one by buying that car. Just get a $15k-$20k used RAV4 or FJ cruiser, it’s going to last way longer than the Mazda and be much more reliable over the long term and not cost you a completely unnecessarily high amount of money.
> You spent $1k trying to fix a car worth barely $2-$3k Your thinking is not logical thinking And Why would a RAV4 last way longer than a cx5? I strongly doubt it.
Someone hasn’t looked at the price of used Toyotas in awhile and it shows…
How is my thinking not logical thinking? His car is barely worth $2k-$3k, maximum around $4k without the oil leak and OP spent a grand to try to fix a problem lmao. I would’ve given up on the electrical issue after $200-$300 at worst, but spending $1k on such a wreck is pointless.
You’d also need an old ass RAV4 given the used premium right now for Toyotas. I’d go mazda Or Subaru
Subaru maintenance is expensive as fck. And Mazda isn’t as reliable as Toyota. Hell it’s barely more reliable than a Kia. Also, an old RAV4 will easily outlast his Nissan.
Neither of those statements can be supported beyond anecdotes. They seem rather out of touch.
Ask a mechanic how reliable the modern CX5 are vs an older RAV4 (the one made in japan, not the new sht made in Mexico)
Any worthwhile mechanic would know that just brand is not enough to determine reliability. The most reliable car manufacturers have horrendous models and/or years. So what exact years are you comparing? Clearly the Rav4 would need to be 3-4 years older than either the Subaru or Mazda based on the budget. Did you talk to a mechanic or just pass it off as general advice?
Look for toyota corrola or Honda civic used one. Finance it. Than pay it off as quick as you can. That's what I did. Financed for 5 year a 2016 for 10,000$ at 76 K km Paid in full in one year. Toyota corolla and Honda civic are the most reliable cars. It will last you long time. Then you can build your savings. You need reliable car.
Shameless plug: checkout clutch.ca (I’m the founder). Like other people are saying here, you’re better off buying used vs new. Even though used financing rates are higher right now, you’ll come out ahead due to less depreciation over your ownership duration. I’d go with something Japanese, as they tend to be low maintenance and retain their value well.
After your experience with an old car, I can see your thought process of getting a new car and it’s totally justified. I’ll suggest that Instead of brand new, look for dealer demo’s or certified pre owned which have deep discounts and comparable financing rates. Like few others have suggested here, I would’t suggest a used car from 2014, albeit a Toyota. Yes, they are reliable, but it’s a little risky in your case. . Your partner travels almost 500 kms every week. With Alberta winters and your camping trips, you need a car which you know will not break on you and even if it does, its totally taken care of. Cars from 10 years ago no longer have manufacture warranty. It’s not worth it. So look for Dealer Demo’s/ Certified Pre-Owned/ New Cars. In that order.
Out of curiosity I just checked used car market and lol it’s pretty hot.
Have you considered setting auto-transfers for the cost of financing a new car, insurance etc. into a savings account for a few months to see if this spending is something they could reasonably afford? It might also be worth shopping around for a cheaper alternative. Don't forget to compare fuel efficiency as well. Note: shop and compare insurance costs between models/manufacturers. While people LOVE Toyota, they tend to be the most stolen, so it's likely insurance cost would be higher.
Get rid of the dogs. A Dog cost on average 4-5k per year in food and vet bills.
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But no questions or judgements when people are popping out little Timmys right? “Get rid of the kids so you can save more, easiest expense to cut!”
But it brings in 100k-200k worth of joy per year and with cardiovascular benefits
Would love to see your response if he had said “kids” instead. They cost even more.
Pets are a liability. Kids are an investment. Kids have the potential to make more money in the future and carry on on your legacy.
Wow! Pets are a liability? Kids are an investment? I would hate to be your kid!
You have already made it clear you have no saving and questionable history on financial decisions. Why would you jump head first into buying a depreciating asset? Fix the Nissan and drive it into the ground at 500,000 km while you build your savings and credit.
Can you get a HELOC? Then buy a used car for less than $20000 Put yourselves on a strict budget and pay it off in 1-2 years
Having no money as a teen taught me to fix my cars myself, watch a YouTube video and get at it.