Buying a car- negotiation struggles

How do I decide if we should get a 2-3 year old car or a 8 year old+ car? It seems like the 8 year old will be a maintenance nightmare, or it could be worry free for 120k miles

The age is not as important as the mileage as far as mechanicals are concerned. The biggest depreciation usually takes place in the first four years or so and then levels off.
 
The cars that are the most reliable (Hondas, Toyotas, and most Subarus) don't depreciate very much. That means that buying a 2-3 year old one won't save you much money. If you get a car that tends to depreciate at a higher rate (Cadillac, most Chevy models, etc), then getting one a few years old might still let you get a deal. But you may pay later in higher maintenance.
If this is a car you plan to keep for a long time (8-10 years), at least give some thought to buying a new, reliable brand and make do without all the bells and whistles. A Honda CR-V is considered by some an SUV, but its a small one--it weighs within 150 lbs of the TDI you are looking at. You can get a brand new one for about what this dealer is asking for the several year old TDI. No funky maintenance problems, etc. And made int he US, not Mexico, if that's important.
 
VW Golf

John, Its the TDI that is kicking you - I just bought a 2013 VW Golf hatchback, 4 dr auto, gas at $19,500, two, three years free maintenance. Bought it because I could fit my bike in the back and it would hold the two kiddos, and stroller. I'd also seriously consider a Mazda 3 or a Toyota Matrix, both in the same price range. I am a loyal Toyota fan, but I love the way the Golf drives.
 
How do I decide if we should get a 2-3 year old car or a 8 year old+ car? It seems like the 8 year old will be a maintenance nightmare, or it could be worry free for 120k miles

When I buy used vehicles, I try to find vehicles that still have a little bit of bumper-to-bumper warranty left and a powertrain warranty that extends at least a couple years after the bumper-to-bumper warranty. That way if I have a problem during the remaining bumper-to-bumper period I am covered and I am also protected from any expensive power train problems.
 
Have you researched prices on an online used car sales site?

I would check out price range for same production year and mileage, then make an offer at the lower end. Throw in a few hundred more if dealer is still offering remainder of new car warranty and other perks
 
Be absolutely certain to negotiate net price.

By that I mean net of any additional charges such as administration fees, dealer prep, security package....whatever.

Last time I negotiated for a new car, 17 years ago, we did the deal like that and then the dealer tried to sneak in another 700 dollars for PDI. I walked. A day later we did the deal at the price negotiated. Nor were they very happy when I said no to the $1000. extended warranty.

DW's car was purchased used from a dealer a few years ago. It took us 3 months to find the 'right' car. We agreed to a price. Then they added a $250. administration fee. I felt ripped off. We needed the car. We will never deal with that dealership again-for either a new or a used vehicle.

You have two big sticks. You have the money. You have the ability to walk away.

Understand the market but do not be afraid to use these attribrutes to your advantage. But never forget...the dealer does have to make a profit otherwise they won't be in business in a few months to honor your warranty.
 
Great advice and comments. Thanks!

Car buying is very tough. My 2010 Jetta TDI has a kbb value of 16k.

I'd love to be a one car family pushing for ER, but I travel a lot for work (they give me $500/mo for my car after taxes). I need the car to drive somewhere for days on end - and that leaves the wife With no car. My car is paid off.

If my Jetta could fit the jogger in the trunk I'd let her have that and I'd get a tiny car with good mpg. I'm looking at these Honda Fits- but not sure if the trunk space is enough and they still run 19k new.

Should I follow MMM and get a 2004 forester? I'm lost.
 
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