For 20K would you buy new or used?

[spd5512]

Hi, I'm looking to spend less than 20k. I'm planing on moving to LA where there is a lot of traffic. I'm considering a new corolla with gets great fuel economy or a used 350z, BMW 3. Fuel Economy does matter to me, but I sometimes feel the corolla doesn't have enough power. My options are to get a new corolla witch is fuel efficient but not all that powerful or a more powerful used car. What's your opinions?

-Thanks

BTW: looked at civic si = manual only

[Ray paulsen]

Hmmm, economy VS performance

If you got a shallow pocketbook for unforseen expences the Corolla is your safest buy, the performance vehicles you mentioned I love, but " if " mechanical issues down the road it can be very costly.

Peace of mind with a full Mfg warranty and no worry about out of pocket expences " the Corolla "

I like the SI you mentioned, a fun car to drive with a manual tranny,,, excellent handling and power.

['97ventureowner]

Originally Posted by spd5512

Fuel Economy does matter to me, but I sometimes feel the corolla doesn't have enough power. My options are to get a new corolla witch is fuel efficient but not all that powerful or a more powerful used car. What's your opinions?
(

Why limit yourself to those choices? What about a used Corolla? Or another similar car with good fuel economy and maybe a little more power? Buying used can benefit you in that you don't take the big depreciation hit, and used cars, including some of the ones you are looking at have good track records at repair histories. (Also some used cars that are fairly new still include the remainder of the original manufacturer's warranty.) With the economy the way it is you should be able to negotiate a good price on a used vehicle to fit your needs, and if you have 20k to spend , should be ale to get something decent, especially something that was quite more expensive when new, but is lower in price now as the depreciation has been figured in. It's like "upgrading" your vehicle and having more spending power with what money you do have to spend.

[spd5512]

Maybe down the road I can do some modding to the corolla.

[Ray paulsen]

[quote='97ventureowner]With the economy the way it is you should be able to negotiate a good price on a used vehicle to fit your needs

That's only true if your needs are a full size truck or pre - owned full size SUV.
When fuel prices where at a high dealers took a beating on these type vehicles selling at cost or below to clear inventory and could replace same inventory for thousand of dollars less, but at same time buying at dealer auctions, economy vehicle prices went up due to supply and demand.

" with the economy the way it is " We are not on the same wave lenght here, nothing has changed unless your buying old gas gussling inventory, the dealers still profit the same way and the economy don't come into play.

The only thing that has changed selling used cars today compared to 10 years ago ,dealers are forced to take less gross profit per unit due to the internet educated buyer, a growing number whom now have the tools to shop and compare value.

EXAMPLE... 10 years ago I estimate from experience that about 75 to 80% did not go online prior to purchase, whereas today it's the complete opposite, a dealer at that time could profit anywhere from $4000 to $6000 on a vehice sold in the $15,000 to 20,000 range whereas today a $3000. profit is above average, but hey there is always the business office that can make up the difference,,,lol

SUMMARY... With a blemished economy sales go down on new vehicles and excellent incentives are in order from Mfg's, with pre-owned sales increase and supply and demand will keep prices high, so where do you get the idea that you can negotiate a good price on a used vehicle

['97ventureowner]

I beg to differ Ray. I'm using my area as an example,( Central NY).Used car dealers are suffering here and are now negotiating prices with customers for used cars where they never have before. There have been reports in our local newspapers about this and it's so bad the used car dealers who have in the past always flooded our tv airwaves, and mailboxes with ads have scaled back significantly as they are hurting. Some used car dealers in my area have also gone out of business. If one has the money , now is a good time to negotiate on a purchase of a used car. Granted the most fuel efficient or smallest models may not be the best example to try and negotiate a lower price due to their higher popularity at the moment, there are other vehicles that one can get a better price on. There are plenty of models out there that get great gas mileage, and /or are not large cars, trucks or SUVs.
I've seen recession before dating back to the 1970's and this one is by far the worst of them. Add to that the increase number of used car dealers and new tools like the Internet for comparison shopping, and the "ball can be in the buyer's court" when it comes to negotiating a better price on a used car.
I've been reading books by Dave Ramsey, as well as seeing him on some news shows. He talks about financial issues that people meet and ways to deal with them. I like his insight into buying vehicles. Much of what he professes can be applied during this time of a souring economy. To get the best price, make sure you have your money or financing up front before entering the dealership. Show no emotion while looking at vehicles or talking to any salespeople and be prepared to walk out of the dealership if they aren't prepared to or unwilling to deal with you. You'd be amazed at how many times a dealer will contact you if you follow those steps. Also if you can afford to wait and do a little research on any vehicle you are interested in, and have a ball park figure you think is fair, chances are you may get that price if the situation is right.

[Ray paulsen]

The moment I submitted my post I knew you were not going to lie down and roll over,lol, maybe next time I visit your area we will have a few beers and get aired out about this subject.

As for Dave Ramsey he is a financial planner and knows dick squat about what is a fair price for a car, or how the inner wheels work at a dealership, sure I agree with his statement to lease is a bad investment, and he knows the best way to finance a car, but your getting of track, where does he fit in as to having insight into buying a car beyond the financial area getting a good deal paying cash.

['97ventureowner]

Because in an economy such as this cash is king. It is easier to negotiate if you are paying in cash, or in many cases have your financing already lined up. The trick is to not get yourself further into debt. Today's society is more of a "me" generation with impulse buying and instant gratification (aka "I gotta have it now!) the norm. No wonder we are worse off in the debt department than our parents and grandparents. If you have a rough idea of how much you're willing to pay for a vehicle based on your research and pay with cash, more than likely you will end up paying less than what the person selling the car wants for it. True, this may be more common with private owner sales,(who says you have to buy your vehicles only from a dealership?)
I volunteer my time working for a local non-profit agency whose main clients are low income families. I have counseled many families in money management and getting more bang for their buck. I have written some of the materials that are used in seminars that this agency holds, and I recently discovered Dave Ramsey. I found out that we share a lot of the same ideas, and those booklets, and teaching material I wrote mirrors what Dave says in his books. Funny thing is I wrote that material way before I read Dave Ramsey.
Without going further off topic I wanted to conclude by saying that if you can afford to , paying with cash can in most cases garner you a better deal, as well as buying a used vehicle. Do a little research, know what the going prices are , and available options, then see if you can get a better deal on the price.And if you can afford to don't rush the process.

[Ray paulsen]

I have known for over the past year that one day you and I would lock horns on a subject and I must admit I love it,,, your good but it's not your main profession as it have been mine for over 35 years

Yes cash is king as you don't have to waste money to finance , but I thought this whole thread was about getting the best price on a car, and that's where cash don't come into play buying from a dealer or privately.

Your statement " It is easier to negotiate if you are paying in cash " according to you I should delete this link on my website ? http://www.usedcartips.org/CASH.html

PS,,,SPD5512,,, whom started this thread must be really confused by now,,,lol