PopSugar

Ask Savvy: Should I Buy a New Car?

SavvySugar — Wed, 11 Nov 2009 12:00:57 -0800

Dear Savvy,

I recently got a letter in the mail from a local car dealership requesting that I trade in my 2001 VW Passat, saying that they are getting lots of requests and stating the blue book value for my car. I wouldn't mind buying a new car, but promised myself I would drive my car until it is unrepairable or I graduate from college, whichever comes first. I still have two more years to go, but if this offer is legitimate, I don't want to let the opportunity go. Any advice?

Savvy says: The car dealership is reaching out to people who aren't in the market for a new car and convincing them to consider busting an auto move. That's a pretty successful campaign on its part, but are your best interests at hand? Find out what I think when you read more.

You have a car that isn't causing you headaches and you're still in school, which makes me assume that you're probably better off without the additional expense of an updated vehicle. While trading in your car would reduce the cost of the newer one, I'd put money on you walking out of the dealership with more bills to pay than when you walked in.

Car dealerships are fantastic at making us think the deals they're advertising right now are once-in-a-lifetime bargains that won't be seen again. They want you to worry that you'll regret not jumping on their current offerings so that you buy now instead of later, and as you put it, you don't want to "let the opportunity go."

Bottom line, a deal isn't a deal unless you're shopping for something in the first place and can afford the terms. And that lost opportunity? Think about the money you'll save by keeping your current ride for the next couple years, and don't be surprised when there are deals to be had when you're in the market for something different.

Have a question for me? Ask away by posting your questions in my Ask Savvy group and I may answer it on the site!

I'm Asking: What Kind of Car Was Your First Ride?

SavvySugar — Wed, 23 Sep 2009 06:30:30 -0700

Nearly everyone is embracing budgeting these days, even multi-millionaires. Bruce Bickel is a wealth adviser who says his clients have asked him for guidance on regulating spending and he's helping parents talk to children about the change without feeling guilty. He said, "They say, 'My teenager isn't driving a BMW; she has to drive a Ford Focus. I tell them not to worry about it. The need is the car. The desire is the BMW."

His comment got me thinking about my first car and the other rides in the high school parking lot and lining the streets of my college town. I got my first car, a 1993 Nissan Altima, in 1999. That car is long gone but it will always have a special place in my heart. What was your first car?

Do You Own One of America's Most Stolen Cars?

SavvySugar — Thu, 10 Sep 2009 04:30:06 -0700

The phrase hot wheels takes on a negative connotation when you're talking about stolen rides. The National Insurance Crime Bureau (NICB) has determined which vehicles were most reported stolen last year, down to the make, model, and year.

The NICB advises car owners to protect their wheels by using common sense and locking their cars; having a visible or audio warning device; getting an immobilizing device like smart keys; and hooking up a tracking device that can monitor the car's whereabouts via computer if the car is stolen. Do you own one of the most stolen cars of 2008? Find out when you read more.

1994 Honda Accord
1995 Honda Civic
1989 Toyota Camry
1997 Ford F-150 Pickup
2004 Dodge Ram Pickup
2000 Dodge Caravan
1996 Jeep Cherokee/Grand Cherokee
1994 Acura Integra
1999 Ford Taurus
2002 Ford Explorer

Match the Car to Its Base Sticker Price

SavvySugar — Mon, 31 Aug 2009 10:30:22 -0700

Can you guess the starting price for these cars (before adding any options)?

Question 1 of 6

What's the lowest possible price for a new 2010 Audi A4?

The Most Expensive Cars to Own and Drive

SavvySugar — Tue, 25 Aug 2009 10:30:53 -0700

Cost-conscious consumers are more inclined to test-drive the cheapest cars to own and operate, and when you're car shopping it can help to keep in mind vehicles on the other end of the spectrum. Using its True Cost-to-Own calculator, which takes into consideration average starting price and ongoing costs as an owner, Edmunds.com arms car buyers with more knowledge by calling out the rides that are known to cost the most to own and drive. See the Edmunds.com estimates for the costliest cars when you read more.

Mercedes-Benz SL65 AMG Black Series: Starting price: $301,750; 5-year total: $364,471; Cost per mile: $4.86
Mercedes-Benz S65 AMG: Starting price: $202,825; 5-year total: $244,363; Cost per mile: $3.26
Mercedes-Benz CL65 AMG: Starting price: $205,575; 5-year total: $230,771; Cost per mile: $3.08
Audi R8: Starting price: $126,400; 5-year total: $159,753; Cost per mile: $2.13
Porsche 911 Convertible Turbo: Starting price: $141,650; 5-year total: $159,393; Cost per mile: $2.13
Audi A8 L W12: Starting price: $122,625; 5-year total: $153,588; Cost per mile: $2.05
Chevrolet Corvette ZR1: Starting price: $106,620; 5-year total: $146,096; Cost per mile: $1.95
Porsche Cayenne Turbo S: Starting price: $125,775; 5-year total: $138,613; Cost per mile: $1.85
BMW M6 Convertible: Starting price: $111,725; 5-year total: $138,186; Cost per mile: $1.84
Mercedes-Benz CLS63 AMG: Starting price: $99,775; 5-year total: $137,749; Cost per mile: $1.84

The Cheapest Cars to Own and Operate

SavvySugar — Thu, 20 Aug 2009 06:30:14 -0700

Value is especially important when you're buying something that depreciates almost immediately. Namely, a vehicle. When you're considering how to get the most from your money, it's necessary to look at the overall cost of the car and how much money it will take to operate and maintain your purchase.

Edmunds.com is the expert on everything auto, and the website features a True Cost to Own calculator that estimates the total five-year cost of owning a particular vehicle and the cost per mile based on driving 15,000 miles per year. To see the top 10 cars currently on Edmunds' list of the most frugal cars to own and operate, read more.

Hyundai Accent GS: Starting price: $10,690; 5-year total cost: $25,958; Cost per mile: 35 cents
Nissan Versa Base: Starting price: $10,710; 5-year total cost: $27,196; Cost per mile: 36 cents
Chevrolet Aveo5 LS: Starting price: $12,685; 5-year total cost: $28,360; Cost per mile: 38 cents
Suzuki SX4 Sedan: Starting price: $13,994; 5-year total cost: $28,965; Cost per mile: 39 cents
Pontiac G3: Starting price: $15,055; 5-year total cost: $29,049; Cost per mile: 39 cents
Mazda3 iSport: Starting price: $15,360; 5-year total cost: $29,271; Cost per mile: 39 cents
Honda Fit: Starting price: $15,460; 5-year total cost: $29,420; Cost per mile: 39 cents
Pontiac Vibe: Starting price: $16,735; 5-year total cost: $29,512; Cost per mile: 39 cents
Toyota Yaris: Starting price: $12,955; 5-year total cost: $29,595; Cost per mile: 39 cents
Nissan Sentra: Starting price: $16,070; 5-year total cost: $29,623; Cost per mile: 39 cents

Avoid These 10 Foods While Driving to Keep Insurance Down

SavvySugar — Tue, 04 Aug 2009 06:30:50 -0700

Grab 'n' go, quickie stops, and drive-throughs are a given in our fast-paced society, but one auto insurance agency says slowing down can save you money. And they're not talking about lightening your lead foot. In response to a study released by the National Highway Traffic Safety Administration, Insurance.com prepared a list of the 10 most dangerous foods to eat while driving because they tend to distract drivers.

If you've ever been in an accident, then you're well aware of how much it can impact your insurance. Decrease the likelihood of an accident by enjoying these foods while you're not trying to steer a car.

Coffee. "Even with a travel lid, hot coffee can find its way out of the opening when you hit a bump."
Hot soup. "Many people drink it like coffee and run the same risks."
Tacos. "Any food that can disassemble itself will leave your car looking like a salad bar."
Chili dogs. "Huge potential for drips and slops down the front of clothing."

Learn what else to avoid when you read more.

Hamburgers. "From the grease to the toppings, it could end up on your hands and the steering wheel."
Ribs and wings. "What's more distracting than licking your fingers?"
Fried chicken. "More greasy hands. You've got to wipe them off while you're driving."
Jelly donuts. "It's not possible to eat one without watching the center ooze out."
Soda. "Carbonation. Fizz in the nose. Lids that leak. Disaster."
Chocolate. "Try to clean melted chocolate off the steering wheel without swerving."

I never thought of soda as particularly dangerous, and am in disbelief that people really eat ribs and wings while driving! Do you have a habit of eating at the wheel?

$4,500 For a New Car Could Be Coming Your Way

SavvySugar — Mon, 22 Jun 2009 04:30:23 -0700

Car manufacturers have been holding on for dear life and coming up with creative ways to sustain their businesses during the recession. The economy has already driven major car companies to bankruptcy, and President Obama is close to signing a measure that would afford more Americans the ability to purchase new vehicles and hopefully prevent more damage to the auto industry.

The $1 billion "cash for clunkers" measure would provide credits to car buyers who trade-in their vehicles for more fuel efficient models. Assuming Obama's anticipated signature, car dealers could begin honoring the rebates worth up to $4,500 beginning July 1. Learn more about the legislation when you read more.

Trading in a vehicle getting 18 miles per gallon or less for one getting at least 22 mpg: $3,500 voucher.
Customers could get an additional $1,000 (so $4,500 total) if the new car’s mileage is 10 mpg higher than the old vehicle.
Trading in sport utility vehicles, pickup trucks, or minivans for a new truck or SUV: $3,500 if new vehicle gets at least 2 mpg higher than old one; $4,500 if mileage is 5 mpg higher.

The program makes sense for people driving cars with trade-in values less than $3,500 or $4,500, and the program's critics argue that despite the vouchers, people driving these types of cars won't be able to take on new car payments. Car dealers, however, think the program will lure shoppers in and they plan to combine the government vouchers with other incentives.

Your Two Cents: Would You Buy the World's Cheapest Car?

SavvySugar — Fri, 05 Jun 2009 08:30:37 -0700

We know the Nano as a small Apple iPod, but the name is shared by another tiny product. India's Tata Motors' version of the Nano, with its $2,300 price-tag, is known as the world's cheapest car.

The four-seater vehicle will be sold in India starting in July, and the manufacturer's chairman hopes the cars will make it to US dealers within two years. He said, "It will need to meet all emission and crash standards and so we hope in the next two years we will be offering such a vehicle in the U.S."

Would you want a Tata Nano to call your own?

Source

Ford and GM Will Make Car Payments If You Lose Your Job

SavvySugar — Wed, 01 Apr 2009 04:30:44 -0700

Hyundai started it, and now Ford and GM have announced their own variations of Hyundai's offer designed to sell cars to a cautious population. While Hyundai's walkaway program offers to absorb car payments for three months and will accept a returned car without any additional payment if a buyer loses her job, Ford and GM have developed slightly different ideas for getting cars off the lots and into the hands of people worried about unemployment.

Ford's program includes paying $700 a month up to one year for new vehicles if buyers lose their jobs, while GM is offering to cover up to nine payments of $500 each in case of unemployment. Ford will extend its program through June 1 and GM's offer is only good through April 30. Perhaps the marketing tools will prove successful in selling cars to tentative customers and help the auto industry dig itself out of an expensive collapse.

Source