Buying a New Car
You need to realize a new car has rapid depreciation in the first few years. In the first 1-3 years there will be as much as 47%; in years 3-6 an additional 24%.
However, how do you perceive your car? Is it an asset you consider on your net worth statement? Or is it a tool to help you accomplish your tasks, transportation to work? If you plan to keep your car for 8 to 10 years; the rapid depreciation makes little difference.
Which car do you purchase? Go back to your original list of needs and wants. What cars fit those requirements? Check out the make and model on Consumer Reports. See how they score in the areas important to you.
In my case, I need all wheel drive (AWD). Subaru has been doing that for years – has a perfected system. Toyota and Honda have car models out with AWD. Consumer Reports scored Subaru higher than Honda and Toyota.
You can buy these cars with just about any add on you could imagine. Go back to your list – what do you need? How much additional does it cost for what you want?
I went through the list of systems offered in various Subaru models. I made a list of questions for the mechanic. The mechanic walked me through the different systems explaining the value of each. Yes to Xmode, no to turbo engine. (Turbo engine is high maintenance and costs extra on your insurance.)
Now I am ready to check out what the dealerships have. Again internet is valuable. The Subaru website allows you to pick which dealerships to submit your inquiries. I chose the 3 in the area. And they are quick to respond.
I was glad I had narrowed down my choice, as I was told how much inventory they had and only 1 or 2 cars that fit my request. They were anxious to tell me about all the options. I only wanted to be sold what I had listed. I already did my homework.
I found some dealerships acted like they had all the business they needed. We went to Ontario to check out the cars. We ended up buying there. They were straight forward and answered my questions as I asked them. I spoke to a friend; they went as far as Salt Lake City to get their car. They got a price break and the salesman delivered the car to Boise.