should I buy a new car now

[joesxm3]

I have a 2004 Acura TSX with 220,000 miles on it. It is in pretty good shape, but has needed some relatively expensive stuff in the past few years: a/c compressor, rear calipers and rotors, alternator, new set of tires coming due this year.

The TSX was basically a European Accord with a nicer interior and some features like passenger air bag that the Accord did not have at the time. I have gone to the Acura dealer for service and probably pay too much, but it is very convenient and they give me a loaner car.

Although it is a bit more than I would like to pay, I have my eye on the Acura TLX which replaced the TSX, moving it up the price scale. The alternatives would be the Accord or Camry. I suppose being new I would not have to leave them for long service, so I could put up with sitting in the dealer and not getting a loaner car.

What got me wondering is the idea that with all the money printing we are likely to have inflation and the price of the new car will probably go up.

I have heard that car dealers now are keeping prices high and not bargaining much.

The thought occurred to take a loan with the idea of paying for the car in devalued dollars down the road, but I have a rather large cash allocation so my money would not be earning more than the loan percentage unless it were a really low rate.

So, I guess just paying cash for the car or taking a loan and paying it off immediately (since I saw a video saying that the dealer might be more willing to negotiate on price if they are selling a loan) would be probably how I would do it.

Do you think I should keep the TSX or buy a new car? I suppose there is a lingering danger of having some sort of break down with the old car.

Thanks.

 

[yakers]

At 220k mi the TSX doens't owe you anything. If you have a pile of cash no reason not to update the car. I am someone who likes to run a car to its end but 220,000 is pretty much there. Sounds like you have one car so having one you can count on is advisable. Could you own two cars? Where I grew up in Chicago a lot of people had two cars, a nice, reliable one and a beater to leave at the airport, drive on salty roads and the like.

 

[cyber888]

Maybe it's time for that Lambo and enjoy the ride

 

[Souschef]

We recently replaced both of our cars. DW's 98 Caddy had the infamous Northstar engine which went out again at100K miles. Our grandson needed a car, as his had also died.
DW ended up with a Mazdz CX-5, which she loves, once she got used to it. I got a one year old Hyundai Accent from Enterprise.
We paid cash, and at our age, they will probably be the last cars we buy.

 

[joesxm3]

I forgot to mention that although I FIRE'd in 2016 and an isolating from the pandemic, I do drive a 3 hour round trip, taking my 94 year old mother with me, each week to drop food off for my step-father. So having a reliable car is important.

I think I would agree that maybe getting a new car and keeping the TSX for a beater would be the way to go.

My 94 year old mother says that the TSX is a nice car and that I should keep it and wait until I can buy a flying car.

 

[capjak]

Get a new car, with the new safety features. If it saves you or some else their life it will pay for itself.

Dump the old one...not needed.....why pay the insurance/upkeep.

 

[wolf]

3 hour round trip, 94 year old mother. Changes the whole equation.

Buy a New Car ! ! Of course. Enjoy......

 

[freedomatlast]

Now doesn't seem like a good time to get a new car to me. Due to the semiconductor shortage, many makes and models are in short supply, incentives are almost non-existent and dealer inventories are very low. All these things make it tougher to get a good deal. A dealer maintained Acura with 220,000 miles wouldn't cause me a bit of worry as far as reliability is concerned. With that said, with warmer weather approaching, more people receiving the Covid vaccine and with the pent up demand, I don't anticipate conditions becoming more favorable in the near future.

 

[Out-to-Lunch]

Buy one if you want. I wouldn't predicate the decision on fears of inflation, though.

 

[Ready]

It it really true that cars are in short supply? I thought I heard that Honda Accord sales were way down and they were discounting them heavily. In general I’ve been reading that car sales are down due to COVID because so many people are working from home now that they don’t use their cars nearly as much as they used to.

In general I would never spend more money on repairs to a car than the car’s current value. I’m guessing you are approaching that situation, if not already there.

 

[Dash man]

I recently ordered a new car and am awaiting delivery. I think I got a great deal based on my research. I think it all depends on the model you’re looking for and how in demand they are. SUVs are selling quicker than sedans, so you’ll probably get a better deal than on an MDX. Check out Edmunds and a few other websites to get an idea of what they’re selling for.

 

[cooch96]

I suggest a third option: trading it in for newer, used car. Most any Toyota/Lexus or Honda/Acura model with 40-120k miles on the clock should be a bargain compared to a new car and have a lot more life than your current auto. Just make sure to have an independent mechanic run a diagnostic on it before purchase. I also recommend searching for a local mechanic on Yelp with excellent ratings.

 

[EastWest Gal]

I forgot to mention that although I FIRE'd in 2016 and an isolating from the pandemic, I do drive a 3 hour round trip, taking my 94 year old mother with me, each week to drop food off for my step-father. So having a reliable car is important.

I think I would agree that maybe getting a new car and keeping the TSX for a beater would be the way to go.

My 94 year old mother says that the TSX is a nice car and that I should keep it and wait until I can buy a flying car.

Is mom a fan of the Back to the Future movies?

 

[Stormy Kromer]

Buy the new car. This is coming from a guy who drives two vehicles with a combined 300,000 miles....take it for what its' worth.


Your Acura has done its' job well. Donate it to your charity of choice and thank you for taking care of your mom! She'll get used to your new car.


If you buy a new one you'll be set for another 250,000 miles without any previous owner headaches and a brand new warranty.


Take care.

 

[aaronc879]

I would buy the new car but don't do it just because you think inflation is coming. Everyone said inflation would go up after the bank bailouts and it never did. I don't expect inflation to go up any unusual amount due to the latest government spending either at least not within the payback of a typical car loan purchased today.

 

[dmpi]

Is this your only car? The trouble with these high mileage cars is that they can break down anytime and the cost to fix it might be worth more than the car. Don't wait until you're in that situation. It's stressful enough to deal with the salesman. You don't want to be under pressure when you buy. Both Honda and Toyota have some incentives going on. There's still some 2020 cars on the lot. I think its a good time to buy.

 

[RetireeRobert]

I suggest a third option: trading it in for newer, used car. Most any Toyota/Lexus or Honda/Acura model with 40-120k miles on the clock should be a bargain compared to a new car and have a lot more life than your current auto.

+1

A two to four year old "newer" used car saves you immediately the depreciation (at four years probably almost half the cost of new). But still gives you a newer car with lots of the new technology.

I bought a 2016 Hyundai Genesis that way last year. It was right at half the cost of brand new. Only had 31000 miles on it, had been a leased car, very well maintained exclusively at Hyundai dealers under the lease terms, and was sold after lease expiration by Hyundai Finance Corp. I love it, blind spot and rear cross traffic sensors and alerts, cushiest ride I have ever owned.

 

[Finance Dave]

Get the new car. But you're overthinking the financing thing and inflation. Car prices will go up...no matter what happens due to all the debt being added. And if you're going to get a loan with an interest rate, you'll be paying essentially inflated dollars due to the interest....so pay cash.

I posted on this website a couple times that I only borrowed money if I could get loans at zero percent interest, and a few people said "I'd like to see where you get these zero interest loans". Well, a nearby car dealer is offering it right now....

https://www.rayskillmanford.com/zero-percent-for-72-months/

Yes, you need "approved credit" and so on...but we've met all those in the past.

And congrats on getting 220k out of ANY car lol. We usually sell ours when they get around 130,000...but then we do mostly city driving.

 

[Dtail]

I would buy the new car. 220K miles is quite a bit already and can't see the maintenance getting better as it ages.

 

[DrRoy]

I would get a top of the line Honda instead of Acura. Honda rates much higher than Acura at Consumer Reports for overall score and also reliability specifically.

 

[bobbyr]

I drive a 2013 Altima with 120k miles on it...pretty happy with it, but do dream about a new ride with better technology.

However, living in a city with plenty of crime, I am not sure how much I want a flashy new car. There is something nice about knowing that my car is not so desirable. That's the impact of urban living I reckon.

also dropping collision coverage is a good thing for my lean fire sensibilities

 

[LiveBelowMeans]

If I were you I would check out the Honda CRV. The added functionality of a small SUV might be appealing as an only vehicle. Buy new. Jmho

 

[Out of Steam]

It it really true that cars are in short supply? I thought I heard that Honda Accord sales were way down and they were discounting them heavily. In general I’ve been reading that car sales are down due to COVID because so many people are working from home now that they don’t use their cars nearly as much as they used to.

SUVs are continuing to sell well, but there is discounting of sedans, which are not as trendy.

 

[finnski1]

If you do buy new you may want to wait to the very end of the month to do the deal.
It is the end of a quarter and they usually want to squeeze in a few sales to get certain bonuses ,quotas etc. Much more likely to get a better deal.

 

[Out of Steam]

+1 A two to four year old "newer" used car saves you immediately the depreciation (at four years probably almost half the cost of new). But still gives you a newer car with lots of the new technology.

I bought a 2016 Hyundai Genesis that way last year. It was right at half the cost of brand new. Only had 31000 miles on it, had been a leased car, very well maintained exclusively at Hyundai dealers under the lease terms, and was sold after lease expiration by Hyundai Finance Corp.

This doesn't work quite as well for trendy SUVs as it does for sedans. I look at used cars and find the prices of larger sedans, such as Acuras and Toyota Avalons, quite attractive.

A Honda CRV or Rav4 is probably better bought new. The savings for late model used ones don't pencil out well.