Meadbh
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 22, 2006
- Messages
- 11,401
My Honda Accord (which I love dearly) is almost 14 years old and is in good condition except for rust. I recently had some bodywork done and was advised that its safe lifespan is limited, that I should not invest large amounts of money in it, and that I should start researching my next vehicle. No panic, though.
This weekend I've been surfing the web and doing the spreadsheets. I would like a new, reliable, fuel efficient vehicle, preferably a hybrid, either a Honda or a Toyota. My goal is to spend no more than I spent last time, adjusted for inflation. Right now I can get a $2000 rebate from the Federal government for purchasing a new 2008 hybrid, or a lower rebate for other fuel efficient cars. I can also get a $2000 rebate from my Provincial government. But these programs will end later this fall.
With the rebates, a 2008 Toyota Prius or a Honda Civic Hybrid are within my price range, ignoring the resale value of my old car. Replacing my old car with an identical new Accord would cost about the same (no rebates). I would pay cash as I do not believe in borrowing to finance a depreciating asset. Buying now would mean depleting my cash reserve. Cash flow would be tight for several months. I do use the car for business, so I guess there may be some tax relief next year. My job is pretty recession proof.
If I wait, I will still have a serviceable but aging Honda and an accumulating cash reserve. Next year there will be more hybrids to choose from. The rebates will be gone, but as hybrids become commotized, prices may fall, especially if there is a recession.
I plan to stay away from dealerships until and unless I decide to buy. I want to keep emotion out of this as much as possible.
Should I buy now or hang on till my old car really needs to be replaced in 1-2 years?
This weekend I've been surfing the web and doing the spreadsheets. I would like a new, reliable, fuel efficient vehicle, preferably a hybrid, either a Honda or a Toyota. My goal is to spend no more than I spent last time, adjusted for inflation. Right now I can get a $2000 rebate from the Federal government for purchasing a new 2008 hybrid, or a lower rebate for other fuel efficient cars. I can also get a $2000 rebate from my Provincial government. But these programs will end later this fall.
With the rebates, a 2008 Toyota Prius or a Honda Civic Hybrid are within my price range, ignoring the resale value of my old car. Replacing my old car with an identical new Accord would cost about the same (no rebates). I would pay cash as I do not believe in borrowing to finance a depreciating asset. Buying now would mean depleting my cash reserve. Cash flow would be tight for several months. I do use the car for business, so I guess there may be some tax relief next year. My job is pretty recession proof.
If I wait, I will still have a serviceable but aging Honda and an accumulating cash reserve. Next year there will be more hybrids to choose from. The rebates will be gone, but as hybrids become commotized, prices may fall, especially if there is a recession.
I plan to stay away from dealerships until and unless I decide to buy. I want to keep emotion out of this as much as possible.
Should I buy now or hang on till my old car really needs to be replaced in 1-2 years?