Whats good to buy in this economy now???

[lookingforassistance]

Originally Posted by Albies5

Hi,
With this terrible economy -what are some items that are either crazy on sale or you can get great deals on now. Like cars? appliances? i dunno--
we want to get a new car and were thinking that car dealerships probably have great offers now- is that true? anything else a great buy now? thanks!

I've heard a lot about great deals on cars. Better car loans, cash back, and other incentives are out there for the informed shopper who is willing to spend a little time looking around. However loans may be hard to apply for so you're going to need a solid credit score to be in a good bargaining position.

Personally though I'd be looking for models 1-2 years old that have been returned from leases. I hate buying a new car because of depreciation and with the cost of leasing accelerating and increasing number of cars on the lot you can probably snag a good deal here.

Other big one is homes. With the new tax incetive to first time home buys and the drastic drop in real estate value it's a good time to shop around. Look for areas where there have been multiple foreclosure sales (or look outright for foreclosures). This is said to put a solid hit on a home's values. But be cautious with the volatile economy I would be wary about extending my means to far. It's a hard time to predict job security and losing a job at this point could do some serious damage.

I have another approach that has less risk and could still be a great investment (only for those whom already own a home). Many of those in the construction business are on hard times and are ready and willing to take on jobs at a lower cost as well as jobs that may have been to small for them to consider recent years. You still get a newer and more comfortable home just at a fraction of the cost. And then when it finally comes time to sell your market value will be increased.

[mia27walla]

hi bought a new car 1 year ago, the worst idea i have ever had. worth next to nothing now, and still paying it off.

[Pitman]

Originally Posted by mia27walla

hi bought a new car 1 year ago, the worst idea i have ever had. worth next to nothing now, and still paying it off.

Not that I'm singling you out or anything, but it still confuses the hell out of me why people buy brand new cars off the lot. Once you hit the exit sign of the stealership, your car is worth 40-50% less than what you just paid. 85% of brand new cars are leased, as opposed to buying them which makes more sense, since your only paying for the depreciation of the vehicle. If you’re looking into financing a car, I'll most definitely encourage any and everyone to buy used, preferably 1 - 2 years old. But financing new, is, personally, one of the worst moves someone can do, financially it just doesn’t make any sense. Again, I’m not singling you out at all, just voicing my opinion.

[Vladimir Vautov]

You saying that buying a cars doesnt make any sense at this time? You will not be angree if I ask a question? What does make sense right know?

[Pitman]

Originally Posted by Vladimir Vautov

You saying that buying a cars doesnt make any sense at this time? You will not be angree if I ask a question? What does make sense right know?

I'm assuming this is directed towards me.

I never said that buying a car doesn't make sense at this time. I clearly said buying a new car doesn't make sense, because of the depreciation factor. I can only speak for myself, obviously, but I won't buy a car new from the stealership, I'd rather buy a used car, preferably 2 years old, which would be dirt cheap especially now. Seeing as that I'm looking to get a new car, I'm looking into lease options, and crunching the numbers that’s not only right for me, but will save me thousands. 85% of brand new cars are leased for a reason.

[disneysteve]

Originally Posted by Pitman

85% of brand new cars are leased for a reason.

I'll have to disagree with your thinking here. The reason that "fleecing" is so popular is because most people are lousy at math and want immediate gratification. They want to drive new cars every 3 years. They want to drive cars that they can't afford to buy. They look no farther than the monthly payment. They don't run the numbers to see what the true cost of ownership is over the years.

With leasing, you have eternal car payments. I think it makes more sense to buy a brand new car and keep it for the long term than it does to lease a car every 3 years.

Both of our cars were bought used. I currently drive a 1998 Camry. I bought it used at the end of the model year (it was a dealer demo). I paid it off within 3 years and haven't had a payment since. Our other car is a 2000 Sienna, bought for cash in 2002. So we haven't had a car payment for nearly 7 years.

I don't want endless car payments so I would never consider a lease. I also don't want to go through the hassle of getting a new car every 3 years. I don't enjoy the process at all and choose to subject myself to it as infrequently as possible.

[Pitman]

Originally Posted by disneysteve

I'll have to disagree with your thinking here. The reason that "fleecing" is so popular is because most people are lousy at math and want immediate gratification. They want to drive new cars every 3 years. They want to drive cars that they can't afford to buy. They look no farther than the monthly payment. They don't run the numbers to see what the true cost of ownership is over the years.

I didn't really expect anyone on this site to agree with my way of thinking towards car purchasing. I feel like I'm on a Vegan site, and I just made a post saying hey once in a while I like to eat a nice T-bone steak, and everyone gasps. lol

I do disagree with those examples of people who lease. As much as I love the advice I've received from this site, I don't listen to everything. I know a slew of people, who I've discussed leasing with, and none of those reasons pertain to them, shucks, they don't pertain to me neither besides that I don't want a car for more than 3 years. I personally hate the misconception that because people lease, they can't afford to buy, I'm sorry but that’s ridiculous. I'm not talking about everyone, but I sure can afford to buy the vehicle I'm going lease.

The reason why the "leasers" don't run the numbers for true cost of ownership is because they're leasing, so they don't care about ownership, they just want the car for three years, and be done with it.

Originally Posted by disneysteve

I don't want endless car payments so I would never consider a lease. I also don't want to go through the hassle of getting a new car every 3 years. I don't enjoy the process at all and choose to subject myself to it as infrequently as possible.

This is your opinion, and I would never say what you think is best for you is wrong. You don't enjoy the process of choosing a new car every 3 years, I love it. Actually when I bought my used car about 3 1/2 years, I told myself on the next go around I'll look at the lease options, because I knew I didn't want to keep this car for more than 3 - 4 years tops. Now that the economy is in the toilet, car shopping feels like Black Friday with all the deals floating around and I will capitalize.

[disneysteve]

Originally Posted by Pitman

I know a slew of people, who I've discussed leasing with, and none of those reasons pertain to them, shucks, they don't pertain to me neither besides that I don't want a car for more than 3 years. I personally hate the misconception that because people lease, they can't afford to buy

The reason why the "leasers" don't run the numbers for true cost of ownership is because they're leasing, so they don't care about ownership, they just want the car for three years, and be done with it.

Please note that I didn't say my comments applied to everyone, but rather to "most people" and I would stand by that. I think the majority of people who lease don't realize what it is actually costing them. Certainly, some people like yourself understand exactly what is involved and what the process is costing them and they are okay with those costs.

While you know many people like yourself, I know plenty who fit my description. I work with a 22 year old girl who owned a perfectly good car that was less than 3 years old. She decided that she wanted something different for no good reason so she went out and leased a new car (that she couldn't possibly have afforded to buy). That was less than a year ago. Just this week, she was talking about what car she'd like to get next. She actually mentioned a Solara which I know is well over 30K. She totally doesn't comprehend the fact that she is flushing away thousands and thousands of dollars in the process. I tried to explain that I haven't had a car payment since 2001. Mind you, she never has any money. She still lives at home with her parents who pay many of her bills even though she has a perfectly good full-time job. With all due respect to you and your informed leasing decision, I think lots of people are much more like her.

I've had many conversations over the years with people who leased in order to move up a model or two on the chain. They leased a Camry instead of buying a Corolla, or something along those lines. They decide what they can afford to spend each month and get the best car they can for that payment. They simply don't seem to care that the payments will never end.

I actually had a patient ask me why I was still driving my car (and that was 2-3 years ago). Why, they asked, haven't I gotten a new one? I told them that it was paid for, it worked well and I liked it. Why should I go out and spend thousands to replace it?

[rennigade]

Pitman...I do agree that a lot of people lease simply for the fact that they want a new automobile every couple years. The sad part about that is these are the people who can hardly save money at the end of each month if at all. For some reason they'd rather throw money away and put themselves into more debt than buying a car and keeping it for a long period of time. But hey...at least people will see them in a newer model vehicle. I guess that's cool?

I personally couldn't give two sh*ts about the car I drive. I simply need a form of reliable transportation I can drive all year round from point A to point B. And yes I know the above does not apply to everyone, just the majority.

[B.J. Johns]

personally i wouldn't be spending too much money of extras right now. i think it's wise to let the economy normalize a bit. unless u have large reserves i wouldn't jump just because u see a deal.