Settle a debate for me

SavsMom · Jun 5, 2013

My Prius lease is coming to an end in a few months. Oddly enough we will be having our 2nd child about the same time.

My plan has been to turn my lease in and purchase a 2012 Mazda5 at the dealer auction (my dad has his license and I can purchase vehicles at will under his license). I can get a 2012 Mazda5 for $13-14k with around 20-30k miles. I am okay with that as the Mazda would still have the balance of factory 5 year / 60k warranty. Financing through our bank our payment would be $230-$250 month.

WELL - b/f now doesn't want a used car. He wants to put me in a new 2013 Chrysler 200. He works for Chrysler and gets great pricing. However we would be financing about $18k with a payment of $350/mo.

His argument = new car, full factory warranty, good price.

My argument = Mazda is more family friendly, still will have a good balance of factory warranty, $100 less per month, slightly lower payment than my current Prius lease.

I know that the minute we take the new 200 off the lot it drops about $4k in value. Buying the Mazda at the dealer auction we will not be in a negative equity position.

So who is right? Lol!

TXDani · Jun 5, 2013

Will you be negative even with his great pricing?

I side with you....can would not want to do two small kids in a small sedan.

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Brianna · Jun 5, 2013

The amount that my car has depreciated in the almost 2 years I've had it make me sick- and it was 3 years old when I bought it. I wouldn't consider buying a brand new car unless I could look at the amount it was going to depreciate in a year and be completely okay with that. I don't see that happening anytime in the near future.

The base model 2012 200 starts TMV at $14,000. 2013 is listed at $19,000. No way would I want to be the person to eat that $5,000 for driving it the first year. That's $416 a month in depreciation

For reference my car's average monthly depreciation after 21 months is $190 (and I think that's too much). But that's just my opinion.

SavsMom · Jun 5, 2013

TXDani said:
Will you be negative even with his great pricing?

I side with you....can would not want to do two small kids in a small sedan.

Sent from my iPad using Car-Seat.Org

Yep. I can buy a 2013 Chrysler 200 at auction in the $13k range. That tells me we wit take a $5k hit just driving it off the lot.
Purchasing the 5 at auction there would be no depriciation and we would still be under warranty.

nannykates · Jun 5, 2013

I wouldn't want to spend an extra $100 a month for a vehicle I liked less. What does he drive? The only real reason I would see is because he already has a big vehicle so you want something smaller for you.

SavsMom · Jun 5, 2013

nannykates said:
I wouldn't want to spend an extra $100 a month for a vehicle I liked less. What does he drive? The only real reason I would see is because he already has a big vehicle so you want something smaller for you.

He drives a Jeep Wrangler Unlimited (4 door). We often swap vehicles as he commutes 54 miles to work and we do so to keep from getting too many miles on any one vehicle, which is fine.

Honestly I don't care what I drive as long as it has 4 doors and is safe. He keeps saying "For $4k more you can be in a new car" He isn't seeing that the $4k is really more like $8k or more when you take the huge depriciation into account. All he is seeing is new v. used. I just think it is a financially smarter move to be in a vehicle that won't drop in value that is $100/mo less.

bubbaray · Jun 5, 2013

Your car, you get the final vote. Life is too short to drive a vehicle you don't like.

SafeDad · Jun 5, 2013

I think you are both right, but just a different point of view. Ultimately, you have to find a car you want to drive at a price you can afford. If they both meet those criteria, then you have a tough choice!

If a full warranty is the issue, consider that you may be able to buy a factory extended warranty (usually at half retail price at online dealers) on the same 1-2 year old used car (that is still under the remaining factory warranty) at wholesale and still save a lot of money over the employee friends&family price on a new one.

In Chrysler products, I really like the 2011+ Jeep Grand Cherokee (or Dodge Durango), but I know they are much pricier:-(

SavsMom · Jun 5, 2013

CPSDarren said:
I think you are both right, but just a different point of view. Ultimately, you have to find a car you want to drive at a price you can afford. If they both meet those criteria, then you have a tough choice!

If a full warranty is the issue, consider that you may be able to buy a factory extended warranty (usually at half retail price at online dealers) on the same 1-2 year old used car (that is still under the remaining factory warranty) at wholesale and still save a lot of money over the employee friends&family price on a new one.

In Chrysler products, I really like the 2011+ Jeep Grand Cherokee (or Dodge Durango), but I know they are much pricier:-(

I can purchase the extended through my dads dealer license for super cheap.

I should add we are trying to pay off some hefty cc debt and I really feel that extra $100 should go towards that.

Dillipop · Jun 5, 2013

Something to consider is that Mazda only has a 3 year warranty. With an inexpensive extended warranty, that might not make a difference to you.

We have a 2012 mazda5 that we paid 18,500 for in December. We plan on keeping it until it dies, so depreciation doesn't factor in for us. We will get our money's worth out if it! We have 3 kids and I absolutely love it!

twolittlebroncos · Jun 6, 2013

A used Mazda5 is a better financial choice and a better vehicle choice than anything new, even with an employee discount. The most expensive part of car ownership is depreciation.

Curious why you're not considering buying the Prius off lease? Prius can handle 2 kids fine, right? Should have plenty of reliable life left in it. Seems like it might be the best financial choice considering the gas savings.

SavsMom · Jun 6, 2013

The buyout is extremely high, which is often the case in a leased vehicle. Very rarely would I recommend someone purchase a lease.

I love my Prius but honestly with 2 kids I want something with more space.

I was born and raised in the car business, I also worked in internet sales for a large Toyota dealer for 7 years, so I know the ins and outs. My b/f has worked in the car business for 12 years now - I just think he has the "new" car itch. I have the "lets get something at a good price, that fits our budget" itch. Lol!

cantabdad · Jun 6, 2013

SavsMom said:
I love my Prius but honestly with 2 kids I want something with more space.
QUOTE]

Changing the subject slightly, are you finding that the Prius just isn't big enough for your family -- is that in terms of backseat space or cargo space? We have 2 kids and had put the Prius on our "short list" as a replacement for our aging Honda Civic. I was surprised at how seemingly roomy it was -- but I would be interested in your first-hand experience.

On your original question - I agree that the Mazda5 is a more practical vehicle, that a good deal on a solid low-mileage used car is a better move than buying new, and that you can use some of the savings to purchase an extended warranty if that's really an issue. And ultimately it's your car and you've got to be happy with it.

That being said, I have been astonished at the asking prices for some low-mileage used cars compared to their new counterparts -- e.g. around here a 1-2 year old Subaru Outback with 10,000+ miles is priced at 90% to 95% of a brand new one. At that point, a new car (with no miles, more warranty time, and maybe some new technology & features) starts to sound like a good option. Unless perhaps this is just sticker price and there is more room for downward price negotiation on the used model?

SavsMom · Jun 6, 2013

I do really like the Prius, its been great and you can't beat the mpg. However with another child coming I really want a little more room. By the time you put two kids in car seats, two adults and all of our stuff in the Proud it gets a bit tight.
Now I don't need a van or huge SUV but I do want a comfortable family vehicle. Our other vehicle is a 2011 Wrangler Unlimited - its a fun car, not a family car.

Currently used car prices are fairly high, however there are some vehicles that can be bought at the dealer auction for a good price. Now keep in mind I pay the wholesale price. So a 2012 Mazda5 with 32k just went for $13,200 at the dealer auction - however you would be hard pressed to find a used one at that price on the lot at the dealership as dealers take on additional costs in making the vehicle retail ready (detailing, maintenance etc).

In regards to the Subaru - they maintain a very very high resale value, as do some others. There are some late model vehicles that I wouldn't even consider looking at used but would buy new in a heartbeat because of the value they retain.

AZmamaof2 · Jun 6, 2013

I would love to be able to buy a mazda5 2012 at wholesale pricing. If you end up with buyers remorse, just head west and we can make a deal!

SavsMom · Jun 21, 2013

Well, he saw my point and we are getting a 5

SafeDad · Jun 22, 2013

Congrats, Good luck finding a nice one in a color you like!

SavsMom · Jun 23, 2013

CPSDarren said:
Congrats, Good luck finding a nice one in a color you like!

I'm leaning towards a red one with beige interior. Found one available on the dealer vehicle exchange in pristine condition, only 31k for $13,300. Prices for the 2012s are dropping a bit more now that the 13s are showing up at auction too. A gray 2012 just sold at our local dealer auction for 12,700 with 35k - gray isn't my first choice (my Prius is gray and I am sick of it) but for the right price I will deal with it, lol!

SavsMom · Jul 9, 2013

I found my 5....it goes up for sale on Thursday - send some good car buying/auction vibes my way because we really want this one, it is super nice, 1 owner, low miles, clean CarFax and AutoCheck - just hoping it goes in our price range *fingers crossed*

Luckily I have my dad bidding on it as I have to work and he knows I would probably end up bidding on emotion rather than logic / budget at this point, lol!

SafeDad · Jul 9, 2013

Good luck!

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