Saved 35k for a new car - recommendations?

What new car dealer do you know that has a cash incentive?

They will take the check from you or from the finance company.

They dont care where the check comes from.

The dealer is not provideing the financing themselves.

Like someone said, the manufacturer may offer a choice of a low rate or a discount/rebate.

The people that take the discount still may finance the cost at whatever rate they can find on their own.

You are confusing that with a cash incentive.

I think there is some confusion in verbiage here. You cannot generally negotiate price and get incentive financing. The incentive financing vs rebate are one or the other. They will consider any discounts on the price the same as rebates. If you can get some private bank to do 0% financing I'd like to know which bank that would be. I've only ever seen dealer financing with 0%.

RunningRough wrote:

I think there is some confusion in verbiage here. You cannot generally negotiate price and get incentive financing. The incentive financing vs rebate are one or the other. They will consider any discounts on the price the same as rebates. If you can get some private bank to do 0% financing I'd like to know which bank that would be. I've only ever seen dealer financing with 0%.

You really think you can’t negotiate on price if you take finance deal?

So, when manufacturer is running 0% interest special, you have to pay msrp? Lol

Come on, you gotta know that’s nuts.

Yea you can take a rebate instead of finance deal and you can also negotiate for lower price.

What you’re saying is if you take rebate or finance deal, you can’t negotiate on price.

Sure you can but you aren't going to get as low a price if you take that incentive financing offered by the dealer. Theyll either make their money on the purchase price or interest from financing. If you get outside financing then you'll never get 0%.

Invest wrote:

Unless you're a multi-millionaire, foreign luxury cars are a fools errand. Bad money. Cars are actually always a poor investment.

Buy a used prius. Invest the remaining $25K. That's how to get rich.

I would really hesitate dumping a solid $35k into a car.

That is like saying leather dress shoes are terrible running shoes.

Cars are not a poor investment because they are not an investment, they are an expense.

To OP: Model 3 ? I believe that would be in your range...?

there really no good reason to buy an outback over a mazda 3 hatchback unless you drive in heavy snow for much of the year.

otherwise Mazda, no question

duh2 wrote:

you should invest the 35k, and find 0% financing with a small downpayment. Doesn't make a lot of sense to just blow that amount of capital on something that starts depreciating immediately.

This is probably the best advice here....

Reading between the lines it sounds like you want to have something semi practical with a little prestige. Go with a used 2015-6 BMW. It’s taken the biggest depreciation hit yet has some warranty left on it. Since you mentioned the desert you must be in or not be too far away from Cali - a place with a glut of used BMWs coming off leases.

As someone correctly mentioned cars are not investments (unless certain classics) so you should decide how much of the 35K can be allocated towards a used car. George Best, one of the greatest soccer players of all times said this about money,

“I spent a lot of money on booze, birds and fast cars. The rest I just squandered.” So 25K- 35K will get you a solid used European “luxury” car. For BMWs this ranges from a nicely optioned 3/4 series to an X5.

Pony up whatever money you want and get a used X5.

The current X1-2s are nice but feel cramped. The 2018+ X3 is light years better than its predecessors and captures the original BMW essence but may not be big enough.

Also in the 35K range you could get a used Porsche Panamera, Cayenne, Cayman, or Boxster of varying ages and types.

For what it’s worth I’ve owned a 1990 Nissan Maxima, 93 Infiniti G20, and 2002 Acura RSX. Leased a 2009 BMW 328xi Coupe, 2012 BMW 328i Sportline, 2015 BMW 428i Gran Coupe. Currently leasing a 2018 BMW X3 M40i.

Just buy used Honda Accord, Fit, Civic Toyota Camry Corolla Prius and be done with it. Invest the savings.

Before looking at any other responses, my instinctive reaction to this question is to NOT throw the money away on a car. there are SO MANY better ways to use your money.

That said, if cars are what floats your boat (I get that some people are car people, not me...), I'm not sure 35K is really enough to scratch that itch. Which me brings me back around to my initial feedback...

I was actually in your boat about 8 years ago. I had always driven a “practical” car, and I wanted to try a nicer car to see if it was worth the money. What I did is got a 24-month lease on an Infiniti sedan with over 300hp. For less than $10k out of pocket, I got to have a 2 year rental. Then, in 2 years, I could re-evaluate what I “wanted” with a little more actual experience. I ended up going back to a “practical” car, but maybe you won’t.

If that’s the situation you’re in, I’d recommend a 2 year lease. You sound like your more interested in an SUV. Go test drive a few. I have friends that have the Q5, X5, X1, 4Runner, highlander, and the high end trims of the 4 door Jeep wranglers, and nicer trim F-150’s. They all love them for different reasons.

I also had a friend that did a 1 year lease on a brand new Porsche 911 turbo, because that was always his dream car.

Technically, these aren’t “practical” but it’s ok to live a little. Every couple years, I splurge and go on an expensive, international vacation. It’s not the best idea if my goal is to retire as early as possible. But I want to live a little while I’m young, even if that means working an extra year or two. I’m on target to retire at 55. If I cut out all “fun” spending, I could retire at 52 or 53. But I don’t hate my job, and life is a lot more enjoyable when you have an extra ~$10k per year to “waste” on things or experiences that you enjoy. Whatever they may be.

duh2 wrote:

you should invest the 35k, and find 0% financing with a small downpayment. Doesn't make a lot of sense to just blow that amount of capital on something that starts depreciating immediately.

Any 0% deal they put the missing % on sale price of the car. They are not as stupid as some buyers

eg Cash Buyer 18k

0 % Finance deal 20k

Whatever you do?

Search the car manufacturer, model for recalls in their respective countries.

I would say, tread carefully with servicing...lots of auto repair shops won't touch hybrids/electrics.

Also, can you get a "repair (think Chilton's) manual" for it?

good luck.

Unless you can find an E30 M3 for that money, I'd just buy a used Corolla and save the rest.

Invest wrote:

Unless you're a multi-millionaire, foreign luxury cars are a fools errand. Bad money. Cars are actually always a poor investment.

Buy a used prius. Invest the remaining $25K. That's how to get rich.

I would really hesitate dumping a solid $35k into a car.

That's what I did.

I'm poor, bought a used Prius for less than $10,000, and own my own house free and clear.

Throwing away money on new and/or expensive cars is not a smart thing to do.

UsedToBeKnowItAll wrote:

If that’s the situation you’re in, I’d recommend a 2 year lease. You sound like your more interested in an SUV. Go test drive a few. I have friends that have the Q5, X5, X1, 4Runner, highlander, and the high end trims of the 4 door Jeep wranglers, and nicer trim F-150’s. They all love them for different reasons.

can i test drive used cars?

knowledgable posters only wrote:

can i test drive used cars?

Of course.

Actually pretty solid advice that straddles the line between being a complete penny pincher and living a little bit.

For a guy that is more on the side of penny pinching and focusing on growing net worth, i actually like this post. Two year rental to decide what you want is not a bad idea.