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I come here and I see people buying all these BRAND NEW Mazda 6's for 15k, 17k, 19k, etc. which are all amazing deals, and yet when I do a quick search using cars.com for USED mazda 6's in my area that are comparable to the new car, they are all around 15-16k. Well, if thats the case you might as well buy a brand new one for roughly the same price (am I wrong here?) Are the dealers just trying to rip us off or do we just have to go and negotiate for them to significantly drop the prices?
 

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It's a combination of 2 factors:

1> Most people don't know how to deal on cars. They're happy to take the rebates straight off MSRP not knowing or caring that you can negotiate off MSRP then take off the rebates.

2> The Used market takes time to adjust to the market. Dealers take trade-ins and offer $15K for the car, they can't let it go for less than that. So, when the deals get good on new, they're stuck with these cars that they paid money for earlier in the year that they can't sell. And it's not like New where they're paid by the manufacturer to drop the price. Some will drop their price on Used cars this time of the year. But most will just wait out the rebate period until you can no longer pick up new cars for cheap, then the Used car looks like a good deal again.

This time of year, it's almost always a good idea to buy New. The Premium for New goes away or is minimalized to a very small number. Buying Used makes little sense when you can pick up New for $1000 more.
 

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Something else alot of ppl don't know, the older the vehicle you're financing, the higher the interest rate on it. When the car's over one MY year old the rates goes up a little bit.

Perfect example: I was told, when I looked at an 04 Mazda6i that the rate would be about 21% (granted I have shitty credit, but I digress..)

On a new one, I got 14%. Again, I know it's high. I have shitty credit.

The payments ended up being within $40 of each other on a 2 year old car vs. a brand new one. Which do you think I chose??
 

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People tell me to always buy used.....I don't know why
 

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Because new cars lose a big chunk of their value in the first year. Used cars that are one year old typically do not lose as much value. The first owner takes the depreciation hit.
 

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There are advantages and disadvantages to buying each type of car. Assuming you want to keep your payments to the smallest possible... you buy a new car and you are almost instantly upside down in your loan, and you will be for a while... so you are locked into that car unless you are making extra principal payments. This is okay if you plan on keeping that car of a long time.

A used car... depreciation is not quite as great, which means you wont be upside down so long. your interest rate is probably going to be higher though. But, someone has already put miles on it, and who knows what they have done to it before you got it.

Cars are shitty investments... which way you buy depends on your own situation.
 

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One more factor...it sounds like you are comparing the asking prices of used cars with actual selling prices of new cars. Dealers that are asking $15-16K may sell for thousands less.
 

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Shitty investments indeed.....but then again it's the only easily obtainable and affordable investment look at the value of homes lately!!!

It's easier to buy a car than a house.
 

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A used car... depreciation is not quite as great, which means you wont be upside down so long. your interest rate is probably going to be higher though. But, someone has already put miles on it, and who knows what they have done to it before you got it. [/b]
Not only that, but in 9 cases out of 10 you will be making payments on a used car AND paying repair bills as well. Of course, this seems to be the case with newer cars too as people drive more than they used to. So with a used car, you have less warranty coverage but a higher APR (making your payments higher) which sucks.
 

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Like someone else on the site said. A car is not an investment unless you buy a classic.
 

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It's a depreciating assett that you want >_<.....
 

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Like someone else on the site said. A car is not an investment unless you buy a classic.
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But a house will more than likely ALWAYS gain in value. Which is why I don't understand ppl who drive a Benz or BMW and rent. :sarc:
 

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To be able to afford a house these days ..YOU MUST have a spouse, or someone working with you to afford it.

People buy cars over houses because Cars are easily accessable. I do not agree with getting a BMW and renting, over a house but i could see why some people do it.

Although the smart thing would be to save your money and buy that house!!!
 

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But a house will more than likely ALWAYS gain in value. Which is why I don't understand ppl who drive a Benz or BMW and rent. :sarc:
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To be able to afford a house these days ..YOU MUST have a spouse, or someone working with you to afford it.

People buy cars over houses because Cars are easily accessable. I do not agree with getting a BMW and renting, over a house but i could see why some people do it.

Although the smart thing would be to save your money and buy that house!!!
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Well I just bought my first house, and you guys just killed my last fear... :D
 

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Well I just bought my first house, and you guys just killed my last fear... :D
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And what fear was that?

As far as having a spouse working with you, not really. If you save a big enough down payment or even look into an interest-only loan on the property you're looking at, you can do it alone. You do, however, have to have pretty good credit and a reasonable income though. I'd say minimum of at least $40,000 a year, and good job history.
 

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And what fear was that?

As far as having a spouse working with you, not really. If you save a big enough down payment or even look into an interest-only loan on the property you're looking at, you can do it alone. You do, however, have to have pretty good credit and a reasonable income though. I'd say minimum of at least $40,000 a year, and good job history.
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Nah, just abour doing the right thing... It's an awesome house, very stable, lots of character and a good price...

My wife and I make a good living for our area!

I have always been a renter, just because it seemed easier but I knew buying this house was going to investment, but it's just nice to hear other people confirm it!
 

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I know about the interest only loans, and all that shit..you are not understanding what I am saying....

they won't even give you a house if you don't follow all these criterias, but they will be more apt to give it to you if you have a spouse with you.

Not everyone can just say Oh I want a house, and then get one....you have to rent somewhere down the line, unless you wanna still live with Mommy and Daddy
 

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J, I am a credit analyst. I do this for a living. Trust me, you're not more apt to get a house with 2 signers if both of the peoples' credit isn't good. One person with excellent vs. 2 with borderline credit, the one person will get it every time. They're less of a financial risk if their income is enough to be approved that is.

Skating, you def made the right choice. Right now, the real estate market has gotten into a little slump lately, so I'm sure you got a great house for a nice price. Congrats on your purchase!
 

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J, I am a credit analyst. I do this for a living. Trust me, you're not more apt to get a house with 2 signers if both of the peoples' credit isn't good. One person with excellent vs. 2 with borderline credit, the one person will get it every time. They're less of a financial risk if their income is enough to be approved that is.

Skating, you def made the right choice. Right now, the real estate market has gotten into a little slump lately, so I'm sure you got a great house for a nice price. Congrats on your purchase!
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Yep - A Buyers market! :D

For us, my wife has had just about perfect credit and my sucked about 1 1/2yrs ago, we started fixing it and recently got a small personal loan and when we went for pre-approval my credit score over doubled!! We were SO surprised!

So with that we got a decent loan program and a great interest rate!

I could even get my own credit card now, which I haven't been able to do for atleast 6yrs!
 
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