Okay, I graduate from college in May and am moving to Cali shortly there after. I’m going to be at either Berkeley or Davis, so the SF Bay area. I’m currently working my fingers to the bone (okay, not really, but you know) to have enough money to buy a new car. I’m thinking the bottom of the line hyundai, but my father wants me to consider other cars. Right now, as I drive a 13 year old station wagon with more than 160 K and more rust holes than ugly blue paint, anything is a step up. Here are my criteria, in order of improtance:
Cheap
Good warranty (preferably my entire time in grad school)
Good gas milage
A company I’ve heard of (only to insure that I can get parts)
Some none hideous color
You can see I’m horribly choosy. What do you drive that fits this bill?
Hyundais are considerably better than they used to be. During the early years, when only that one model the Excel was available, I thought they looked tinny and cheap, and for some reason they were almost always dirty. It seemed that the owners never washed them, and it was so noticeable that I thought it was bad PR for the company, and that maybe they should do something about it.
IMO, however, the benefit of a “brand new” car is overrated; you just end up paying thousands in depreciation. I’d suggest going for a late-model used car; that’ll give you a lot more options, and you’ll be able to consider a little bit what you want and not just what you can afford.
For instance, the last time I went car shopping, in mid 2001, I could have bought a spanking new Nissan Sentra, or a slightly used Altima, for the same money. The Altima, IIRC, only had a couple of thousand miles on it, and had been a Nissan corporate car. We went with the Altima and have never regretted it. It’s more comfortable and better equipped by far than the Sentra was.
Funny, when I saw the thread title I immediately thought of my car, which is a Nissan Sentra.
I agree about being willing to buy used: almost one year ago (on 1/1/04) I bought my '02 Sentra for approx. $10K, and it only had 12,000 miles on it. Pretty good deal, and a year later I have no regrets. I bought from one of those used car clearinghouses, though, and got an extended warranty, so be careful if you decide to buy used from individuals.
I have a 2004 Hyundai Elantra 5-door. It came fully loaded automatic around $14,000. The Accents are cheaper and a little smaller.
My Elantra GT Hatchback has 10 year/100,000 mile warranty, 4 airbags (front and side), side impact beams, traction control, ABS, 4-wheel disc brakes, cruise control, heated mirrors, fog lights, leather interior, MP3 player, power moonroof, power windows and doors, keyless entry, huge trunk, roomy backseat, plenty of storage, and it’s a cute color!
I love the car, it’s a little peppy for a 4 cylinder but certainly not the power of a Nissan. Safety, reliability, and value are most important to me.
Hyundais are probably the best new car for the dollar at the moment. Kias are cheaper, but are trash.
But if price is an issue, why are you even considering buying new? The depreciation on the first few years of a car’s life costs thousands. It makes far more sense to buy something even a couple years old.
How do the jacked up interest rates on used cars make them a better deal overall, though?
Shop well, you might find a brand new one with incentives and 0% financing that allows you to buy more vehicle than you would have bought used with no dealer cashback and a 10+% rate.
Don’t forget emp. discounts if you know anyone working for any of the big 3, and if you buy a Ford you can use me!
Another vote for a Nissan Sentra - love my 2001! The steering and handling still feel very tight, I get great gas milage, and the insurance is cheaper than for a Honda.
I’ve done nothing other than replace brake pads (once), windshield wiper blades(once), and semi-regular oil changes. I have 38,000 miles on it and plan to drive it another 3 years, until my son gets his license (OMG - only 3 years left!!!) and buy myself another to replace it.
I like standard transmissions because I think they are more fun to drive. My daughter has the same year, make and model with an automatic transmission and it’s been very reliable for her as well.
The interest rate on my used Sentra, from a commercial bank, is maybe .5 higher than the interest rate that was being offered for new cars by my credit union. I would never have agreed to financing that was more than 1% higher than my credit union was offering, but then my credit is good and I knew there was no reason to pay a higher rate.
Everything I’ve ever read about 0% financing says “don’t do it.” I read something recently in Consumer Reports about it, but the best web cites I can find are this credit union site (not from my credit union, btw) and this 2003 Motley Fool article.
Sure, they’re saying don’t trade 0% from the automaker/dealership instead of a 2% loan from somewhere else + the dealership rebate. Without good credit, you’re not going to qualify for either the 0% or the low rate from something like a credit union though, right?
I’m just saying work the math, bring along the accountant friend to crunch the numbers. I bought new in November, in my case I decided recently to forego a $2000 rebate and take 0% and stretch it to six years for the lowest monthly payment, because the lowest rate from anywhere would still run me nearly $4K in interest.
I know a lot of younger friends and relatives who haven’t had time to establish good credit who got locked into horrific interest rates buying used. gfloyd’s already said he wants to buy new, I was just reiterating that buying new isn’t necessarily a bad investment.
IF (heavy on the if) you can find a new Toyota Echo get that. Its MSRP is the same as a Hyundai Accent but because its a toyota it is reliabl as hell. Plus i’ve seen the insides of both the Echo and Accent and the Echo is much better and roomier. Ask Toyota dealers if they can help you find a 2005.
I want a new car because I’ve spent my life fixing cars with my dad and I’ve seen all that problems that a car with even 12K on it can have. I will entertain a used car, though, if it has a good warranty. And financing isn’t a big issue, as I will have almost enough money if not enough to buy it when it’s time and figured I can ask my parents for a small short term loan if need be, using the “You didn’t pay a dime from college or grad school for me, could you loan me a little money until I get my feet under me” line. Especially since I paid for my current car out of my own pocket, something my brother is yet to do.
I actually am planning to look at the just off lease cars, too.
Ummm, Hyundais are reliable too you know. The only reason they are inexpensive is because the company OWNS the ships that transport them, saving them dough on transport. Remember, they have a 10 year/100,000 mile bumper-to-bumper warranty.
But I agree, avoid Kias for a few years until they make them better. Toyota models last, like the Camry. Almost every single Honda lasts over 200,000 miles.
I wouldn’t trade in my Hyundai for anything in the same class. I love my car, I have far more options on mine for less money than any other car in the same class can offer, it’s just a better deal overall.
The last two kinds of cars I’d ever look at buying are: former rental cars and off-lease cars. I’d recommend looking at a Honda Civic or Toyota Corolla that’s a couple years old. They are both very reliable cars, and the money that you will save compared to buying new would more than pay for the possible advantages of a warranty. I think that would be a much, much better use of your limited grad school funds.
Odd that Kia and Hyundai have such different reps here - Hyundai owns Kia, and has for many years. In Korea, Kia is the sporty division while Hyundai is the sensible economy-car operation, but somehow the roles have been reversed in the US.
Agreed that the best value is in recent-model used cars, which can often be had with warranties comparable to new cars.
Yeah I know, I wasn’t comparing Hyundai vs Toyota and saying Hyundai wasn’t reliable I was saying that Toyota is reliable as hell. I read Hyundais are up there with Hondas and Toyotas in regards to the number of problems in the first 3 months. However if it came down to an Accent or an Echo I’d take the Echo because the interior of an accent is not as nice as an Echo’s interior. Plus even though Hyundai is reliable I trust a Toyota to last 200k miles more than a Hyundai. T
