In all of my years, the only vehicle that I bought brand new off the dealers lot was a 1999 Tahoe which in hindsight, was the best and most reliable SUV I have ever owned. I sold that vehicle in 2014 when it had 250K miles on it. Now, I want to go shopping for another brand new one.

Assuming you have bought more new cars than I have, I am curious as to how you would go 'paying for the new vehicle'. Even if you have the means to 'pay all cash' at the dealership,....is this a smart thing to do?

Now, if you are going to use financing, how do YOU go about doing this? Does it make any difference if you get your financing from the dealership or from other sources?

For the sake of this post,...lets assume the new vehicle you want to buy cost $50,000 and since you have great credit, you qualify for whatever the best new car interest rates are.

How would you go about paying for a $50,000 new car? (There are no right or wrong answers here).

Brad20K - if you were to going to buy a brand new Corvette, how would you pay for it?

The last time I financed a vehicle I went to my credit union and got one of those blank check type loans. At the dealership I told them I was paying cash since in reality I was. I got my price. I then told them I was using a credit union loan. Of course the finance manager appeared out of nowhere. He swore he could get me a better deal and I told him to see what he could do. He actually got me a better deal than my credit union. It wasn't much and because they then wanted me to submit all kinds of paperwork (pay check stubs which I don't have, etc), I declined, wrote the check that was in my hip pocket and out the door I went.

Because I was able to pay cash but didn't want to, I took out that loan. I paid it back at $1000 a week. I had the cash and the income but was leery removing the $50,000 (this was years ago and it was actually $40,000) in one lump should something/anything go wrong in my life, the economy, the world, etc.

We keep our car for decades so I don't mind buying a new one these days. Especially with zero percent interest, it's like paying cash anyway.

My last car, a 2019 Suburu Outback, was $38k. I've been paying $800 a month for two years, a little more to go and done. Since we were prepared to pay cash, I was happy to go the zero interest route.

I bought 2 last year.. 21 ram an 21 traverse

1. Check with who you bank with for rates

2. Check other bank/cu rates by you

3. Have dealer give you options

Mine was 60 months 1.89 no money down

Cheaper than a heloc or loc. Less than I pay to borrow so made sence to borrow

We buy a "new" vehicle when people aren't confident in the economy, because the used lots are so picked over and people are hanging onto good cars longer, and the models we like on the used lot are comparatively close in price to what's on the new lot. We buy a "new-to-us" vehicle when the economy is good, the lots are full of low-mileage newer cars, and the savings make it worthwhile.

We use USAA for our insurance. They offer auto loans. The next time we need to buy a car, we'll call them ahead of time, get approved, and go shopping. Then a few months later when we're comfortable with the car and feel like paying it off, we'll pay it off in a lump sum.

Who's got what you want in new trucks? -- that's the question. Have you been looking lately?

I got a new RAM Limited edition 4 WDrive. Fully loaded last year. Told my salesman that the last truck I brought here sat for 6 months before you sold it to me at a fire sale price. I even knew they had put on 50 miles in test drives. NO BUYERS.

Lets not do that again.

I like working and restoring old classic vehicles. Being handy I almost always purchased for myself used or dead vehicles. In my life I've only purchased 3 brand new vehicles.

The first one was for my mother because my dad only purchased demonstrator or used models. The second new car I purchased was for my wife and for myself, when I turned 50 I purchased a new car for myself.

I was crazy. I should treated myself to a new vehicle a long time ago. The extended warranty did nothing because it ended long before I got any claims -- Japanese vehicles are designed to outlast their extended warranties.

A lot of great responses here,..keep them coming. I can buy a cheap house with no problem but when I am on a new car lot, I am no different than a 'kid in a candy store'.

Has anyone here ever bought online from Carvanna?

One of the local Ford dealers here is advertising for car buyers to come to his dealership and Order a new car from the factory. (I would assume this dealer has low inventory due to shortages). Has anyone ever ordered a car from the factory and they supposedly 'build it only with the options' you are willing to pay for ?

Nicole: Okay, Porsche applies here too. How would he pay for a brand new one? And what is the MSRP on a brand new Porsche 911 in candy apple red? Do Porsche dealers offer discounts on their new vehicles or does everyone have to pay the sticker price?

You are a landlord. You most likely qualify to contact the commercial salesman at a big dealership and get the commercial price.

You give them your wish list and they find the car located somewhere within a few states and get the car shipped to them. Price is good and non-negotiable because it is the dealer's best and final.

Allym - I am always so curious how someone of your age and life experiences has so many issues with so many of life's every day tasks.

You go in and tell them you are buying outright. No trade in. You get your price. You then tell them you decided to trade in and get the new price. You now know what you are paying for the new vehicle. You now know what they are giving you for your old vehicle.

NE,

I am pretty sure my 1999 Tahoe lasted 15 years without any major repairs is due to my changing the oil at every 3,000 interval. When I buy a used vehicle, I have to pray that the previous owner(s) changed the oil and did any other required maintenance like changing the Transmission fluid which a lot of people do not do. So this is the advantage of buying a new vehicle with a clean slate that you plan to keep until the wheels fall off.

I have tenants who make payments on new cars/trucks that cost twice what the house they rent from me does!

Several ways to approach this, but probably three main methods that for lack of better naming convention I will attribute these to two well-known financial personalities.

1) The Robert Kyosaki method: finance the car on the longest term note possible and buy enough houses to make the payments on the car you want. Let the house "buy the car" for you.

2) The Dave Ramsey method: pay all cash. If you don't have enough cash to pay for the car you want now, use the "step ladder" plan to buy the car you can afford while you save up for the next level up, then swap out the old car (cars?) plus cash to get the car you want. Repeat this as often as necessary

3) The Joe 6 Pack method: buy the car on terms and pay for it out of existing cash flow.

I'm not going to tell you what to do, but I know which one I prefer. Cars, to me, are ultimately tools, but they have many features I define as "toys". The urban cowbow with his Ford F450 with fake stacks and bed that's never seen a load is a perfect example. It's easy to be lured into buying stuff you don't need, don't really want, and ultimately just inflates the car dealers profits at your expense. If you've got the cash, bu all means. If not, then I question why one would increase work load and risk by devoting more resources to something that provides you little to no value.

I now pay cash and buy one year used and below 5000 miles. This gives me a great price for the vehicle, lower insurance cost and lower license plate state fee.

Whether you finance or not more than likely depends on your stage in life. Me, I don't need the cash for more investing so I'd rather not have the debt. Different story from when I was young and growing the business.

I ordered a vehicle years ago. I don't remember why but inventory was low like it is now. I sat with the sales manager and configured it to my specs then we haggled on the price and finally I put down $500 and waited about 2 months for it to arrive. Worked pretty well.

Your going to spend about $70k on a Tahoe. I wouldn't shop for a vehicle until the end of next year with the shortages if you can get a Tahoe you will probably be $5k-$10k over MSRP.

Like Chris said, I wouldn't buy now with the vehicle shortages. Next year, when the massive shipments of chips finally arrive and there's a glut--that would be a good time to buy!

NE,

A year ago, I bought a used 2006 pick-up truck that had originated from a dealership in Washington, DC. where they have salty roads. First used vehicle I have ever bought that had rusted out rocker panels on it. That was the only thing wrong with it and so I bought it anyway for $5K. Down here they put sand on icy roads/bridges but not salt.

I turned 16 and got my drivers license, I went to a Honda dealer to buy myself a new car. I had worked a part time job since I was 14, after school, Saturdays and during the summer full time.

The Honda was $7,000, plus sales tax, destination charges, registration and insurance. Totaling around $9,000. I asked the sales women what could I sell the car for in 1 year. She explained that I'd loose the $2,000 for insurance, tax, exc., and on the purchase price of $7,000, I'd only get around $5,000. I was NOT going to buy a new car and loose $4,000 in 1 year -- I worked too hard for that money. So I purchased a used car from a friend.

Then when I was approaching my 18th birthday I went looking at houses with a realtor. Joyce would manager the house if I purchased it from her and agreed to sell it through her. So on my 18th birthday we looked at 4 or 5 houses and I made an offer on one. A three bedroom two bathroom home with a heated pool in Canoga Park, CA for $72,000. My offer was accepted and within 45 days I was the new owner, putting around $15,000 as a down payment, back in 1978.

So instead of buying myself a new car at 18, I had myself my first rental.

In 1986, rentals with pools were no longer a hot item. So I did a 1031 exchange for a 5 bedroom 3 bathroom house without a pool, and no garage. Just a carport. After it was all said and done, I pulled $80,000 out tax free in the way of the loan --1st mortgage refi. So I already made $65,000 tax free.

Then I sold that house in 2015 and pulled out $520,000 after taxes. With the rent profits over the 37 years of ownership, I had banked $65,000 + $520,000 + (rents after expenses and taxes) $200,000 = $785,000

I bought a new truck in November, so I could take advantage of tax code 179. My wife and I now have 7 cars/ trucks, it’s and addiction, much like buying houses. Many dealers are charging above MSRP, but I was able to get one for a whopping $250 under MSRP. Lol. It’s a bad time to be in the market for a new auto, but the wife wanted a truck, so she got a truck, Nissan was offering 0 percent for well qualified buyers for 36 months. Out the door with TTL, it was 40k, so I put 20 k down, and took the 0 percent for the rest. You should head over to Heritage in Rome and check out the Frontier, with crew cab. The GVWR is just over the 6000 lb requirement for 179. Dad almost bought one from there in December, but didn’t pull the trigger. Apparently they aren’t charging over MSRP, but they do have some dealer ad ons, but with some push

I would not be buying now as there are not enough trucks to go around so you would be paying a premium.

Instead I would lease one for two years and buy time. I would also want to lock in a purchase price now for the truck so you can buy it after the lease is up. With that option, you are able to play both sides of the game.

Roy,

I ONLY pay cash. It's like I taught my kids who wanted expensive sneakers- If you don't have the money you cannot afford it.

I learned Rule #1 when buying a car...NEVER tell them you will be paying cash. The price goes up because they won't make money on the financing.

Without going into my whole life here's my auto history.

1964 I stole my first car. A 1962 T bird. Pushed it out of the driveway and a little down the street at 2AM with my sisters girlfriend-- who was sleeping over! We drove around for an hour and brought it back.

Fast forward to 1966 I got my first real car a 1950 Merc with flat head 8. Yanked off the grill and bumper - put those chrome shackles on the rear springs to jack it and drove it for 2 years. It had more beer and coke cans wrapped around the muffler along with asbestos wrap and clamps then you could imagine. Who had money for new pipes?

When I left for boot camp I parked it in the front yard and 3 months later when I got out it was gone-- mom sold it for 50.00.

I made my living on snap on tools so every car I brought was a Junker or rat rod. Until 2001-- when I brought my first NEW car. (I was 50) A Plymouth Prowler (which I still have). I brought a investment property- put 500 into it and sold it in 6 weeks for a 40K profit. I used that money for my Prowler.

Myob,

Roy at 14.5 I was hitchhiking into NYC to the village. (70 miles) My mom thought I was at my aunts house-- staying there-- but was out going to the coffee houses. My girlfriend lived in New Hyde Park and she would take the train into NY. I gotta say Roy those were the very best times of my life. Til I was 15 when she called my aunt and found out I wasn't there. THE END!

All our married lives we drove "other people's cars." First we were very lucky to have company-supplied cars for years! And we always bought my FIL's cars when he wanted to trade up: he liked to drive new Volvo's, so we would buy his old ones (a few year old only) for whatever trade-in price he was offered. One of them went more than 250k miles before it started smoking and died, but we had his next one by then.

When my FIL died he was driving a new Prius and we ended up with that, and still had one of his old Volvos. Drove both for 10 more years. In 2019 we both bought new vehicles for zero down, zero interest, and his (a work van) earned a 179 deduction.

Myob,

Go to CarMax and Carvana and have them give you a price to buy your car. The highest offer is the lowest you should accept for a trade-in price for your car.

Here in California there is NOT SUCH THING as a Certified Vehicle. A dealer can call it anything they like, but since there is NO SET STANDARD that anyone has to follow, some say:

100 point Certified Inspection

Certified

Passed our rigorous Inspection process, now Certified.

The could mean they gave the vehicle a car wash and vacuuming.

It could mean they looked at the color of the engine oil, trans fluid, break fluid and power steering. Oh and added air to the tires.

The few new vehicles we purchased at year end, twice on New Years Eve, off the lot and a year old with under 100 miles as we've found the best deals at that time. My last new car was purchased at a small dealership an hour out of town, $3500 less than in Milwaukee. One year, I had test driven 7 models of cars to find "the one". I have a hard time parting with my cars. The model I kept coming back to didn't have a sunroof; my car at the time ran well, was just rusty. Two years later the Honda I wanted was made with a sunroof so it was time to buy...for $3500 less than in town and less than it was two years prior without a sunroof. Got $500 off to finance it, and paid it off a week later. I sold my rusty Mazda to our next door neighbor so I can see it anytime I want.

I'm starting to see Ram and Toyota truck inventory trickle in. A broker I know has Ram Big horn quad cabs around $50k MSRP for lease at $450 a month. Its not great but I have seen far worse.

Tundra and Tacoma inventory is showing up as well. I suspect by March because of there high residual a decent Tundra lease might be available.

You can get OK deals on Volvo SUV's and the new Nissan truck as well.