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-   -   New Car? Closeout or Current Model Year (https://www.early-retirement.org/forums/f28/new-car-closeout-or-current-model-year-37890.html)

chinaco 08-13-2008 02:20 AM

New Car? Closeout or Current Model Year
 
If you were buying a new car, would you purchase an end of year close out [2008] or a 2009 model.


There are a number of considerations. One consideration might be how long one intends to own the car. Another could be related to the style (new design of a model).

We drive cars until they darn near drop dead... I could look at it two ways: The extra cost of a 2009 is not much over a 10 year period or the $1500 or $2000 I saved and invested for the 10 year period helped pay for the next vehicle.


What would you do? How much of a % or $ savings would you require to go for a 2008 instead of a 2009?

Walt34 08-13-2008 04:03 AM

Since we also buy them new and keep them "forever" I go through the list of options and get exactly what we want. If the dealer has it in stock or can find it at another dealer, fine. If not I'll special-order it. The two that we had before the current ones we kept for 18 and 14 years respectively, and the ones we have now are both 6 years old. Barring accident or theft we expect to keep them ~15-20 years so the cost of the current model year amortized over that time period doesn't amount to much.

To us, anyway.

DW's car was found at a nearby dealer, the pickup I had to order. That was delivered in the promised eight weeks.

Frugality_of_Apathy 08-13-2008 04:03 AM

What's wrong with a 2006?

rs0460a 08-13-2008 06:36 AM

Quote:

Originally Posted by Walt34 (Post 697665)
Since we also buy them new and keep them "forever" I go through the list of options and get exactly what we want. If the dealer has it in stock or can find it at another dealer, fine. If not I'll special-order it. The two that we had before the current ones we kept for 18 and 14 years respectively, and the ones we have now are both 6 years old. Barring accident or theft we expect to keep them ~15-20 years so the cost of the current model year amortized over that time period doesn't amount to much.

Agreed. The Olds Ciera I had for 18+ years was bought off the lot, but it matched my "pre-defined wants".

My '02 Mustang GT Vert was customed ordered due to the color combination (the dealer did not normally order in the colors I wanted - however after they saw how it looked, they ordered more :rolleyes: for their own inventory..)

BTW, my son is looking to replace his '94 Chevy (with a Pontiac G5) but looking at "leftovers" he was unable to locate one with the options he wanted. He intends to order an '09 from the factory (once the model changeovers are completed).

- Ron

W2R 08-13-2008 07:09 AM

I would buy the 2008, personally, since you could probably talk down the price a little more than you could for the 2009.

But then, I tend to keep cars for 8-10 years, and at that point, there isn't much difference in resale.

I assume you have checked out both. Does one simply appeal to you more than the other? That is a valid factor to consider, as well.

Dawg52 08-13-2008 07:09 AM

Quote:

Originally Posted by Frugality_of_Apathy (Post 697666)
What's wrong with a 2006?

That's been my thinking. Save a lot more and still have a good ride. I do buy mine with some remaining warranty to see if there are any problems that need repairing. Has worked well for me.

To answer the OP's question, I would go with the end of year 2008 model if I were buying new. You have a new car with all the warranty at a better value.

2good 08-13-2008 07:12 AM

chinaco,
If the 2008 and the 2009 are basically the same model (no major upgrades) than I'd say go with the 2008. Although the 2009 is "only" $1500 to $2000 more you won't get any additional utility out of it. Resale value is close to zero anyway after a long time.

2good

W2R 08-13-2008 07:21 AM

Quote:

Originally Posted by 2good (Post 697685)
chinaco,
If the 2008 and the 2009 are basically the same model (no major upgrades) than I'd say go with the 2008. Although the 2009 is "only" $1500 to $2000 more you won't get any additional utility out of it. Resale value is close to zero anyway after a long time.

2good

And, if you take that $2K and invest it at 8%, you would have over $4300 after 10 years. Of course that has to be adjusted for inflation and so on, but my point is that the money you save is NOW, and worth more than if it was literally divided by the years that you own the car.

On the other hand, I still think that if one appeals to chinaco more than the other, he should take that into account. Most of us don't get to buy a new car every day.

HFWR 08-13-2008 07:38 AM

2008 if it's cheaper a better value proposition...

GatorBuzz 08-13-2008 08:07 AM

I'm not really sure how the warranty works on the make/model you've selected but I wonder about the typical 3 year/36,000 mile factory warranty (or whatever it is). If the three years starts from the date of the make of the vehicle, then the factory warranty on a 2008 would expire at the end of 2011 whereas the 2009 would expire at the end of 2012. May be worthwhile to check with the dealer to see how that works. That extra 1 year warranty might be nice to have in the 2009 model. Not sure if this would tip the scales in favor of the more expensive 2009, but it certainly a mark in the "pro" column.

audreyh1 08-13-2008 08:17 AM

warranties normally start from date of purchase.

Audrey

HFWR 08-13-2008 08:17 AM

The warranty starts on the date of purchase, afaik...

FinanceDude 08-13-2008 08:20 AM

Buy a current model year, unless the 2009 is an UPGRADE in safety and features over the 2008. Also, I would be somewhat leery if the 2008 is a brand new design. With brand new models, there's always model improvements that occur in the 2nd year.

OP may WANT a new car, not a 2006 or 2007. last time I looked, they wanted almost as much for a used low mileage 2007 Accord as a new 2008 Accord..........

Art G 08-13-2008 09:23 AM

Buy at the end of the year, lease at the beginning.

cute fuzzy bunny 08-13-2008 09:33 AM

I've found that unless theres a significant change to the model or a redesign, you can get the same price on next years model as last years model, it just takes longer to negotiate it.

GatorBuzz 08-13-2008 09:37 AM

Quote:

Originally Posted by audreyh1 (Post 697711)
warranties normally start from date of purchase.

Audrey

That is not how Toyota works. They work off the model year. If you buy a 2008 model now, your "clock" started ticking on January 1, 2008. I was pretty sure that that was how it was explained to me when we bought our 4Runner, but I just called them to verify. He stated that all their 2008 models have effectively lost 7 months of their warranty. Of course you get all your miles, though.

Still, this alone isn't something that should be the sole factor in determining whether to get a 2008 or 2009 but it is something to consider.

Again, you might want to check with the dealer to determine how their company handles the warranty.

Texas Proud 08-13-2008 09:44 AM

Quote:

Originally Posted by cute fuzzy bunny (Post 697739)
I've found that unless theres a significant change to the model or a redesign, you can get the same price on next years model as last years model, it just takes longer to negotiate it.


I have had this experience also... but to tell the truth, the salesman told me the same price when I asked... "how much for next years model?"...

BTW, there IS a difference as someone pointed out... IF the car is stolen or totaled... there is a difference in value so your insurance payment will be different... and also a reason to buy a car that holds it's value... if you buy an American car that drops 50% in 3 or 4 years... and a wreck totals the car... you only get the check for the remaining value even if you planned to own it for 15 years... and you KNOW that the other guy did not take as much care as you did so you can not buy one that is as nice.....

cute fuzzy bunny 08-13-2008 09:48 AM

Quote:

Originally Posted by GatorBuzz (Post 697741)
That is not how Toyota works.

Toyotas warranty is started on the "in-service date", which is the date the vehicle is sold, not from january first. I'm unaware of any new car manufacturer that starts the warranty prior to the original sale.

Art G 08-13-2008 09:53 AM

OK, obviously some information is needed here. First off,
A car's warranty starts the day the car is put into service. So, if it's a dealership demo, it's not in service, however, if the car was driven by a district rep or for promotion purposes it probably is. Factory warranty starts from that date and mileage, so even if a car has 3,000 miles, the warranty starts there.
As to deals, auto companies often offer end of year rebates either to the dealer, or direct to the buyer, so it is almost always cheaper at the end of the model year when dealerships are trying to clean up their inventory. Not to mention that cars are being charged interest while sitting on the lot, so a dealer is more motivated to sell an older unit.
FWIW, I buy most of my cars on New Year's Eve, as dealerships want the car off their books rather than pay a tax on the new year.
Also, if leasing a car, new residual rates come out three times a year, so you want to lease when the residual value is the highest, thus you're much better off leasing in the first trimester. Of course the negative is, you're on a limited mileage with a lease, so if you think you may go over the mileage allowance, this should be considered.

GatorBuzz 08-13-2008 09:56 AM

Quote:

Originally Posted by cute fuzzy bunny (Post 697746)
Toyotas warranty is started on the "in-service date", which is the date the vehicle is sold, not from january first. I'm unaware of any new car manufacturer that starts the warranty prior to the original sale.

Well, I bought a 4Runner and was told that. I just called Gatorland Toyota in Gainesville, Florida less than thirty minutes ago and was told the same thing. Call your local Toyota and check it out. Maybe they've changed their policy since you last purchased? I don't know. And this is not one Toyota either. I actually bought my 4Runner at the Jacksonville location and was told the same thing. I dunno why I was told the same thing by two different dealers if it is not true...


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