Model Year End Clearance

[jdcfsu]

I know that you're never supposed to buy a new car, but are deals that arrive around the end of a model year (which is coming up I presume) worth buying "new?" I've never bought a car from a dealer, always bought from private sellers so I've never dealt with financing or the "off the lot" depreciation.

My car is a '94 with just over 86K miles on it but it feels like the transmission is starting to slip and while the milage is good and the car is in solid condition, I don't know how much more money I want to sink into it. I'm not sure if I'll buy anything coming up, but the fact that the model year is coming to an end will provide a lot of temptation and I want to know if anyone has any experience buying during this time of year -- namely if it's even worth it or should I just stick with the used market?

[torifile]

You can get a good deal on a new car as long as you know how to bargain and manage to get a good financing deal, if you're financing at all. Do your homework - look up invoice prices on edmunds.com, get quotes from dealers on cars.com, avoid dealing with the place you'll buy from until you're ready to purchase, etc. If you're good, you can do well for yourself.

Read the first post in this thread (http://www.fatwallet.com/t/24/444610/) for some great tips.

[Perfecting_Zero]

Fascinating read, torifile. Thanks for that link.

[Partial]

It's a decent time to buy, but keep in mind they aren't ever going to go below the invoice price so you're still paying a hefty mark-up to the company (say toyota, for example).

The best bet is getting a good, reliable 2 year old car. However, if your car only has 84k on it I would drive it into the ground. I foresee major innovations in car technology in the next 2-3 years.

Studies show the average man switches cars every 2 years for whatever reason. If this defines you, a new car is probably not a good move financially. If you're looking to get a car and keep it ten years, i'd probably go with a newer one.

edit: That is actually a fairly surprising link

[jdcfsu]

Interesting link torifile. I'll have to look into the invoice pricing and all that when I settle on a potential model.

tensdanny - If I do decide to buy something, I plan to have it for the long run. I bought my current car in college with the idea of running it into the ground but because of it's age, I don't really want to put any serious money into it (IE a new transmission). So I'm looking at options where I can still get a bit of money out of it in a trade/sale and get a decent deal at the same time.

[MCQ]

Auto makers have had a tough run this year in terms of sales - I'd imagine some are more willing to cut good deals this year.

Look for manufacturer to dealer incentives on Edmunds - they're not reductions you can get directly, but it's money in the dealer's pocket when they sell (kind of like a holdback), so you can lowball a little more and see if they're willing to part with some of those incentives.

This site (http://townhall-talk.edmunds.com/direct/view/.ef17997/) might be helpful to get a ball park of what deals some people are getting on different models. Different regions will have better deals than others.

[turtle]

Another tip I heard was to find a deal who's pushing to get a "top sales" award because they are more likely to push for sales with less of a profit. There are a few dealerships here in Tidewater that do it all the time.

[jdcfsu]

Another tip I heard was to find a deal who's pushing to get a "top sales" award because they are more likely to push for sales with less of a profit. There are a few dealerships here in Tidewater that do it all the time.

A friend of mine who works at a dealership just told me the same thing, they'll loose money on a sale just to steal it from another dealer. Very odd.

I've checked Edmunds and the car I'm looking at is only marked up about $1500 over invoice, so there isn't a lot of wiggle room. Though Saturday I'm going to go dealer shopping and see what happens. According to torifile's link, the end of the month might help.

The financing side is kind of interesting to me. My bank has approved me and so has Capital One (who is sending a "blank check" which is kind of scary). I'm still waiting on pre-approval for manufacturer financing and my credit union as well. It's kind of an exciting process but at the same time, it's kind of frightening. Thanks for your help everyone and I'll be sure to keep y'all posted.

[torifile]

Capital One's Blank Check thing is super convenient, but on a new car, you may be able to find much better rates.

[Yontsey]

Im the wrong cat to ask about that. Since June of last year, Ive had 3 brand new cars.

[alcimedes]

I've had really good luck just e-mailing the fleet manager for a region. They just care about how many cars they move, not what they sold them for. Gave me an excellent deal.

[Windswept]

If you go through the Costco car buying program, you tell them exactly which vehicle you want, and exactly which options.

They will then send you to a dealership, to a pre-arranged salesperson, and you will get the fleet price, if I understand the process correctly.

I wonder how much better the fleet price is than the invoice price.

Yeah, and be sure to read all the reviews on edmunds.com for the vehicle you're interested in. Also read up on the comparison vehicles.

There will be an overall review by a professional car reviewer, and then reviews from people who have bought the vehicle.

[jdcfsu]

Thanks to some of your suggestions, as well as talking with a friend who works at a dealership, I feel like I've completed a TON of research in the last two days.

The model I've decided upon is the '07 Civic Hybrid, and unfortunately because of their demand there are zero dealer/manufacturer incentives and they are only selling about 1-2K under sticker, which is just over invoice. My friend at the dealership said there aren't even any kickbacks going for the Hybrid model, which is probably why one salesmen I talked to today tried to UNDERSELL me to a traditional model Civic.

I've got quotes from three of the four dealerships in town and tomorrow I'm going to be test driving and possibly making a purchase. I'll also be calling the fourth dealership's sales manager to tell them they have lost my business as their salesmen told me he'd call me back in 10 minutes with a fully worked quote -- that was around 230pm. Perhaps the manager will take my lowest quote and counter it to try and keep the business, but if not, I seem to have found a nice salesmen that has been pretty friendly and currently has the lowest quote.

I feel pretty confident in making this decision and thank everyone who has participated so far in this thread. After tomorrow, I'll be sure to update with my outcome.