November 20, 2006 at 1:49 PM #7949newbizParticipant
I remember reading a lot of stuff about how auto companies are having a hard time moving their cars, but was surprised with the cold response I got from dealers when I started looking for a lease last week.
Checked with the Lexus dealership for a LS460, sales person, sounded like he was selling a lot of them and said that he absolutely had no incentives on that car. Had a peice of paper with two configuration listed with prices. Tha was it.
Spent some time with a BMW sales person, who showed me a 550i and a 750i, was quiet reluctant to push for a sale, it was like, we are selling them fast, if not you someone else will buy.
Submitted a online quote request for a 750i to another dealership, got a reply with a quote, Lady calls back, says you need to come to take this to the next step, I am too busy to talk to you on the phone.
So my observation is that Too many ppl in SD are buying 60K+ cars to keep these dealerships super busy.
Also, what is a good time to buy, after Xmas, before Xmas, when is the time when dealers will really try to sell?November 20, 2006 at 2:26 PM #40367lindismithParticipant
The best time to buy a car is on the last day of the month. (My mom used to work in a high-end dealership.) Dealers are willing to stretch a little further to make their numbers then. That’s to buy though. Do not know if it makes a difference to lease.
Interesting about them not jumping all over you. Maybe the sales people are all burnt-out ex-real estate agents?November 20, 2006 at 2:26 PM #40368anParticipant
Best time to buy is at the end of the year on the end model year. So, since you’re looking at hot cars that just got released, of course they won’t deal w/ you on the price.November 20, 2006 at 2:43 PM #40369VanMorrisonFanParticipant
Best time to buy would probably be after Christmas…say, the last day in January.November 20, 2006 at 3:52 PM #40374bubble_contagionParticipant
When I was looking for cars last July, BMW and Lexus didn’t have incentives but other brands had. Those brands are currently very hot with mostly new models.November 20, 2006 at 4:54 PM #40380sdrealtorParticipant
Call me crazy but anyone who spends 80K on a car is nuts unless they have way too much money. In that case they should have too much money to spend and should be buying real estate too. HMMMMMMM…..Note to self: Hang out at Lexus/BMW dealerships.November 20, 2006 at 4:59 PM #40381heavydParticipant
I don’t think you’re going to find any incentives on the new LS460 for at least a year. It’s a new, highly desirable model, and volumes tend to be limited at launch, so it’s a sellers’ market at least until they ramp up production. I would be surprised, however, if you could not get discounts on the 7-series as this has been around for several years and is due to be replaced fairly soon.November 20, 2006 at 7:01 PM #40387mixxalotParticipant
Good points. I drive a 1996 BMW 328is that I bought 3 years ago for 13k. It had 55k original miles and buy new car is waste of money. Yes, one has to pay for maintenance and repairs but its better to save than to throw money away.
I would love a new 335i coupe but with these cars selling for MSRP sticker at almost 50k new for a new BMW that might be worth 20k if that in a couple years why do something so foolish? To me, its better to invest in high growth funds that make me money than a depreciating car.
UNLESS you have a business there really is no point in paying a lot for a new car of course if you have money to throw away thats another matter.
I did notice the same issue with new BMW dealers in San Diego. Some guys like BMW of San Diego and Brecht BMW were arrogant and wanted full sticker MSRP on a new 3-series car. I did find Cunningham to be the friendliest dealer in town. Heck when I spent 3k on new suspension they gave me a new BMW to use for free while they spent 3 days fixing my car.
Even if I spent 15k over a few years its cheaper to maintain, insure and register a used BMW than a new one with thousand dollar car payments each month. God forbid how filthy rich those people with brand new Aston Martins, Porsches and Ferraris must be these days. Or deep in debt.
Lexus is overpriced Toyota. Nice car but would just as rather have a nice leather interior in a Toyota Avalon or loaded Camry for half the price. Same for Audi which is an expensive VW.November 20, 2006 at 7:19 PM #40389CAwiremanParticipant
Not that you’d want a US manufacturer’s car but if you wanted to see some drooling, ready-to- deal dealers, I think you’d easily find them at Ford or Chevy dealers.
The Foriegn auto’s (especially, BMW, Benz) are for whatever reason, nearly permanently trendy.
Maybe a year or so from now, the market for luxury cars will drop. But, just as the $ million dollar and above home buyers are insulated to some degree from the RE bubble (they aren’t as dependent on next week’s salary)they are also able to afford the luxury vehicles.November 20, 2006 at 10:25 PM #40398anParticipant
mixxalot, if that’s your argument against buying a new car, then why did you buy a $15k used BMW when you can buy a $3k civic and invest the other $12k? That $3k civic will be much cheaper to maintain and last a lot longer than your BMW will too.
So if you’re saying Lexus is overpriced Toyota, then you’re saying everyone should buy a Yaris since a Camry or Avalon is just an oversized overpriced Yaris. I wonder why anyone would buy anything else than a used Civic.November 21, 2006 at 7:50 AM #40407BikeRiderParticipant
At Bankrate.com they state- “For most people, 15% of after-tax monthly income is appropriate for total monthly car payments.” So, that should determine how much car (or cars) you can afford in the family. If your household income is $4k after tax, then you can afford a $600 car payment. One expensive car or a couple of Civics.
Most people lose their mind when they enter a car dealership. My wife and I were buying a Mazda 626 years ago and the dealership was a Mazda/BMW place. In the cube beside us was this young guy, with I think his wife, and he really, really wanted this new BMW model. He was already upside down in some other BMW they had and was trying to work a deal on the new one, trading in the older one. I actually heard the salesman say to him that he would be crazy to buy the new car because they were going to add even more money to the loan to pay off the current car he was driving. He’d be so upside down that it just didn’t make sense. He’d be stuck in the new BMW for years and the car would end up costing him about three times the sticker price. The salesman asked him to not buy the car, but the young guy would not be swayed.
I restore old machinery and take it to tractor shows. I wanted a powerful truck to haul my tractors. My current truck is wearing out. I’ve been looking at Ford F250’s with diesel engines. New they sell for $46,000. I can afford the truck, but it is just too crazy to buy new. You lose so much money. I found a five year old F250 that had been very well maintained with only 32K miles on it. I paid cash and got it for $21,000. Less than half the cost of new and very low miles considering that the 7.3L diesel has a life expectancy of 300K miles. Plus, property tax will be much lower, as is insurance on the vehicle.
The best deal is a one to two year old vehicle. Let someone else take the hit on paying for the new car smell. People saw my truck and thought I had bought a brand new truck.November 21, 2006 at 1:07 PM #40443PerryChaseParticipant
I read somewhere that luxury cars are the fastest growth segment of the auto industry. People have come to expect to drive a luxury car as part of self-fulfillment. It’s psychology more than anything else. Especially, in Southern California, we are judged by the kind of car that we drive so people are willing to make sacrifices to be own a nice car.
It used to be that we bought expensive cars for reliability. But now, all cars are pretty much very reliable. So we buy car as an extension of our personalities.
I’d like a Maserati because they are sexy looking. …but they are too rich for my blood.November 21, 2006 at 1:40 PM #40455poorgradstudentParticipant
Man, I feel fortunate that I view cars as a tool rather than some sort of statement on who I am, or method to make up for some inadequacy.
15% of monthly after tax income sounds really high for a car. I spend 0% of my monthly income on a car. It’s a ’96 Grand Am I bought used for $1500 cash a year and a half ago after my last used car needed $3000 worth of repairs just to stay on the road.
Maybe at some point in my life I’ll value nice cars more. I’m lucky right now that I can ride a convienient, short bus ride to work, so I only drive to my friend’s houses and places like the grocery store (I could walk or bike, but I like to make large shopping trips less frequently).
It’s so beneficial to my financial situation not to have a car loan.November 21, 2006 at 2:51 PM #40471PerryChaseParticipant
I’m with you poorgradstudent. I don’t mind biking or walking. Given a choice, I wouldn’t have a car.
Yeah, looking at cars to judge people is shallow. But the reality is that we live in a consumer-driven society. People do judge you by what you drive. America is a country of social climbers and people forget very quicky where they came from.
I’m sure that as you get your graduate degree and take on a professional job, you’ll get “assimilated” very quickly.
Years ago, a friend of mine was in medical school and driving a rusted old Ford. Now he’s a big shot and one day we were riding in his car. We were at a stop light and he made a snide remark about the car next to us “Geez, how can people drive such old crappy stuff?”November 21, 2006 at 10:21 PM #40513mixxalotParticipant
I agree that people spend too much on cars given their financial ability. For me, I drove beater cars for years and always liked BMW since I was a kid for their sporty design and fun engineering. Not for status. Now I enjoy the solid build and handling and keep it running. New BMW not worth the expense. Of course, I could buy a Yaris for 12k but its a tin can on wheels and if some fool hit me, I would end up in a casket. My car is paid off and all major service up to date. Now saving for home and waiting for downturn.
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