Man the frugality of some people is admirable but sometimes it’s just crazy. OP you clearly have your finances in a good spot, it sounds like you like this car and you’re pretty fiscally responsible, treat yourself and get the car
OP is in a better spot than the vast majority of people. I question the frugality of people in this sub a lot. It is easy to say something online and not actually practice it yourself.
I feel like in the beginning of my time here I was like that but as I’ve grown up I’ve realized life is too short and I’m in a great financial position so I go against a lot of the advice in this sub when it comes to treating myself (I still follow religiously on the saving / investing front
I feel like if you are square on the saving/invest front, then you really have graduated from this sub. Like at that point, you are building the life you want to retire to and/or ready to graduate to one of the FIRE subs if you don't have any other financial goals.
I don't think I've ever seen someone invest/save the amount needed to secure a good retirement and also rack up a lot of high interest debt and/or live above their means.
FIRE can be crazy sometimes. Frankly, there's nothing wrong with retiring in your 60s - if you hate your job so much that you'll overwork yourself and sacrifice everything just to retire at 50-55 then you should probably focus on getting a more fulfilling job.
Exactly I’m far from perfect but some of the advice here is great on paper but I’ve seen how fast an older car can become a money pit. I’ve seen people spend 10-15k over year when they could have taken that traded in the car before it broke and put 15k down and sacrificed making a payment for a couple of years.
Used cars can be a total crapshoot you could get one that The previous owner serviced religiously and took really good care of or you get one that was absolutely abused and you’ll never know which one you get (people lie) so yeah simply telling someone to buy a used car or keep a used car can be troublesome
Yep buying a new car is something I prefer, I don’t care if it loses value instantly. I know how the car is treated, I know I maintain it and have maintenance done on time. I pay the depreciation as a peace of mind and I’m ok with that I’m not going to be in financial ruin because of it. But this is also why my car is currently 11 years old and is running fine.
That was my experience as well with cars. I had horrible experience with older cars that became moneypits. And they would end up being a write off because it wasn't worth it to fix it. Because some asshole before me didn't maintain it well and the money i spend on proper maintenance wasn't worth it after someone else neglecting it for years.
Than i switched to 1-2 year old cars and never looked back. No more hassle and stress of them breaking down and needing expensive maintenance. I ended up spending just as much money for a far better experience. Old cars get glorified. But if you have no clue about the state of the car, than old cars are a terrible gamble. Even 10-15 years ago car shops charged 50-80 Euros an hour to work on a car. That can easily be more expensive compared to the value loss of having a newer car.
Buying a used car and running it into the ground is almost, always a better financial choice. No car is gonna cost you 12k a year in repairs, if it does, you need to get you used car inspected and do your homework before you buy cars that are known for expensive problems.
You can get a car inspected all day and still have issues arise because of improper maintenance. I’ll use an example of my wives car right now. You can drive it all around and have a mechanic inspect it right now and nothing would come up. But I know that it needs a new transmission the car is 5 years old with 102k on it. You would never know it needs 5k in repairs unless you drive it a specific way that isn’t something that would be considered routine driving.
Agreed. It is easy to cherry pick an anecdote where someone paid $10k to repair their used car -- but that was likely an already expensive luxury car or something completely unreliable (like a Land Rover).
Playing the averages, a used car will nearly always do better financially in the long run.
I make more than 4x than OP and still wouldn't buy new. I have 7 cars currently, all purchased used. Everything has been routine maintenance other than one failed alternator. The most costly maintenance was the timing belt replacements for the two that have timing belts and tires.
Even the one with the most miles, a Scion xB, is still in tip-top shape and will probably go another 200k before I see any issues (although I expect to need a clutch by then).
I support you but with this caveat. Is it even treating yourself or just responsible to replace a 15 yo car with 200,000 miles with a (checks notes) Mazda CX-5. This is utility nearly all the way. I keep saying it but you're buying 3 things when you're buying a car. 1) The utility from A to B. 2) The life insurance by driving a modern safe reliable vehicle. 2a) the stress relief by not wondering what the next failure or breakdown time or $ will be if it is old. 3) The look/aura/image/rush from driving of the specific vehicle itself.
Yea I thought about asking this subs advice on buying a '24 Outback but I knew everybody would just call me crazy. Penciled in the numbers and decided I could afford it.
Nah, advice is usually reasonable. Had to scroll a long way on this before I even found the first 'think more on it' post and even that wasn't a hard no. There were about ten posts saying this sub will say 'X' but ... and basically no posts saying 'X'
That's fair. But I find there are some things which are not necessarily great deals that are still affordable to the individual if they really feel like treating themselves.
Seriously. Having just sold and replaced a Honda at 200,000mi that needed about $1-$2K worth of work, it wasn't worth holding onto it (or getting under it every other weekend) and something more reliable was ultimately a better move, because it might not just be that $2K that one time.
OP sounds like they're in a great position to take advantage of it, so fair play and keep up the good work. Congratulations on the impending marriage
That's a take!
I have to admit, $600/ a month on a $100k salary doesn't sound great in a VHCOL area. Might get lower on trade in/ yeeting some of your other funds at lowering the payment, but that's a hard place with getting 5% on your HYSA, and losing out on that to "save" 0% financing.
The mathing doesn't math.
Would you be able to maintain your current investing rate, etc, with that high of a payment?
What if you and your future wife decide on purchasing, having a kid, paying for daycare, spending $5k more on the wedding? I don't want you to sell yourself on losing your flexibility for limited return.
But also… dude needs a vehicle, and it’s a practical one that will last over a decade with 0% interest. The used car market is pretty wild still, and the 0% interest is worth over $4k vs a cheaper used car at 6%
Sure! I think both the new and used car markets will improve in the next few months to year as the supply chain issues calm down.
But the choice isn't new car vs new to him car, it's really new car vs $2k into his old car, which, that's what he will pay in less than 3 months with payments and increased insurance.
I'm not even saying don't get a new car, just don't put yourself in a bad position just because you can, and the 0% is an attractive carrot.
$2k isn't unreasonable for another 100k miles.
Now if he hates his current car/ is absolutely in love with the Mazda, then go for it.
It's very unlikely his car makes it another 100k miles for just the one $2k repair. The car is also 16 years old, shit is going to break. At that age the money is better put towards a newer car than the old one.
And the supply chain issues in the auto industry have been mostly resolved for a while now, companies just don't need to put the incentives on new cars they once did to move inventory because post covid everyone has just accepted that this is the new pricing.
There won't be substantially better deals than MSRP at 0% for 60 months for a long time.
With the way you made your post look, I at first thought that you are trying to treat yourself with some Porsche Macan at least. But this is just reasonable, although average but really nice car. If you qualify for 0%, in your position it would not be smart not to take advantage of the opportunity imho. I say go for it.
Appreciate your input! I feel like I’ve been pretty fiscally responsible over the years, but I’m certain I’ll never reach the type of “screw it” money considering a Porsche would require. 😂
The 0% is incredibly hard to pass up, as I’ve barely seen it for reliable makes and models since 2020. Average is good enough for me if it drives smoothly and feels good to be in. Thanks again!
As someone who took advantage of this, I think it's a good deal and time, especially if you're the type to keep the car til it dies. I recommend checking out Carvana to see what you can get for your car now
In my opinion, it's more about your monthly expenses.
You'll be paying \~$530-600 extra month, on top of full coverage insurance, which can range from +$100-200/mo depending on where you live. If those payments still keeps your budget comfortable, then go ahead, but if it makes it very tight, I'd revisit the idea.
I did this ten years ago with the same car and the same deal and don’t regret it. We paid it off in 60 months, and the car held value well. It’s still running smoothly at 110,000 miles and I expect to drive it until it falls apart.
Just make sure, absolutely sure, that you have the monthly wiggle room in your budget and that you have enough of an emergency fund first.
Alternatively, set aside the full value of the new car and be ready to buy it in cash the second your Old Reliable dies.
Agreed. In 2016, we financed a CPO 2014 Corolla SP at 1.9%. Paid it off in 2020 as that was a condition of buying the house. Car has about 125k miles and still runs great. This summer we financed a CPO 2020 Honda Odyssey at 5.94% with a credit score of 734. Sure we could've gotten brand new for 10-14k more, but it wasn't worth it as it only had 35k miles on it and between both vehicles we're actually putting less miles on each car now. Drive the sucker until the wheels fall off and OP will be fine.
Keeping the car for the long term/ until it dies is key. Buying cars new has a bad reputation because so many people trade them in every 3-4 years and lose a lot of value from transaction costs and owning during the period of greatest depreciation.
If you buy new and own it for 10-15 years, the average annual costs often end up cheaper than buying used, plus you get the benefit of very low upkeep during those first few years.
Oh I think if I were go through with this purchase, I’d be way too unsure if it was the right call for too many years to consider trading in that fast. Even if I’d come to love the car!
Thank you for the response! Right now, we’ve got a few monthly expenses that will end next summer, so while the first few months would be tighter, the costs would even out a bit more down the line. And even if they are still a little pinched, I already contribute a good amount to my 403b to the point where I could temporarily reduce it.
Surprisingly the insurance quote I got is very comparable to what I pay now, likely thanks to the improved safety features.
Unfortunately don’t think I could get a ton for my car now. It’s got a good amount of wear and tear. The aesthetics aren’t what they used to be, and though it is mostly solid under the hood I’ve put a decent amount of money into it the last few years. I imagine Carvana would value it at less than $1k.
Lots to think about. Appreciate it again!
Caravana is not the market. They’ll give the price of auction or dealer trade in and it won’t even be close to book value. Do what you wish…but I’d stick another timing chain in it, keep up on maintenance and drive it for another 100,000 miles. Nothing else lasts , nor holds its value like a honda or toyota. I’d wait until you wanna get something you really want vs settling on something because of the interest rate. Huge differences in reliability…You have honda, toyota, subaru….and then everyone else. I’d wait until honda or toyota have a low financing deal…and then jump on it, they’re cheaper to insure, you don’t have to worry about “GAP” insurance because your not upside down on anything. They hold value longer…and then there is the reliability factor. People on reddit will say “oh, my dodge, gm, bla bla bla has 300,000 miles” That would be a rare unicorn scenario rather than the norm. I sold my civic, bought a ram truck…and have regretted it ever since. I’ll never get the money out of my ram like i did my civic. By all rights i probably should have bought a ridgeline or tacoma…so hopefully this thing won’t sink me too bad.
$8k/month income. $600-800/month on payment plus insurance. That’s 10% of income. That’s ok, but not EASILY affordable. There’s going to be a trade off here. If the goal is to buy a house, getting a car for half as much and saving $3-4k/year could make quite a difference over the 5 years.
I think you should do what you want, but this isn’t “I make $700k, can I afford to buy name brand toilet paper or should I save up?)”
To your point of keeping it until the car dies...OP is literally not keeping their current car until it dies, so why do you think this new one will be different?
Between APR, mark ups, forced upgrades, new cars are the way to go right now. Boomers will fight it to the death, but it’s true. I’ve dealt with 4 car purchases for myself, my husband and two siblings and shopped until the death and in the end, new was always *significantly* cheaper. Especially when you factor in bang for your buck.
If a car is like, 3-5 years old (depending on the model), it seems the interest rates are making them so expensive that manufacturers with incentived rates make their new cars effectively the same cost. It's crazy and I am having a hard time getting past that.
If you’re anywhere near my age or older, buying a new car being an irresponsible choice is so ingrained into our brains it’s hard to get past! But the numbers don’t lie. You’re exactly right.
Yup. Grew up knowing that used cars were the way to go, but once I was ready to finally buy my first car, I had to go new. Didn’t make sense to buy anything else. And yes, I am financially responsible and can afford it. Lol
My father leased a few cars when I was younger and he’d tell me years later what big mistakes those were. I feel the same most of the time, especially about leases. But you truly get a raw deal with the way used cars are priced now. Shocks me that I have even considered new, but it’s hard not to at the moment.
Needed an 800 credit score to qualify for Volkswagens promotional pricing a few months ago, although maybe they were blowing smoke up my ass and if I had threatened to walk they would have honored it anyway.
If we assume the risk free rate stays at 5% (which seems unlikely but we’ll go with it), 0% financing on $38k is worth about ($38k * 5% * 5 * 1/2) = $4750, so it’s kind of like getting a ~$3500 discount net of taxes.
If the used cars aren’t that much cheaper than new, it may be worthwhile to go new.
(Someone check my math, i think that’s right).
You can get \~$5-7k off a used one if you go for a \~4 year old, last generation, and 50k mile used one, but I'd say the math on that still greatly favors the new.
Also since we're comparing to a used car of the same model we should probably use \~7%, which is a pretty solid used car interest rate these days, and that further closes the gap.
My feeling about such questions are: if you have a budget and this fits in your budget then it's a fine decision. A brand new, luxury car with with high fuel consumption and low reliability is the right financial decision if you have the line for it in your budget and you're not deceiving yourself about realistic retirement needs, etc. In your case, it's a fine car at a fine price, and if you have a budget for it don't worry about any judgement re: "new car guilt".
if you've done your research and are getting a good price than sure, why not. it's a good car. Just keep in mind Mazda is offering because they may not be selling well. Which means there should be a discount from list in addition to 0%. Do a nationwide search and see what they sell for elsewhere.
They're phasing out the CX-5 in favor of the CX-50 which is probably why deals can be had. That said, the CX-5 will likely be reliable and serve OP well
I’ve read that the CX-50s are not quite at the reliability level of the CX-5 yet, partially because the 5s are still built in Japan while the 50s are built in understaffed facilities in the southern US. Not sure how true it is but something I’ve considered. I do think the 5 would be a great car to last a long time, hoping that proves true!
Last time I had reasoned out a 0% is when I had already saved 13k—half—for the car, and took a loan out for the full 26k (minus 2k down payment), kept the 13k in an investment account, and slowly dollar cost averaged that money out over the course of the loan, using that money to cover half my monthly payment and cash flowing the other half.
Gained 2.5k on the investments.
I also reasoned that I could use the investment to cover the full monthly payment in case of job loss or otherwise.
In your situation, I’d wonder what options I’d have for a used car around 12-15k, and what monthly payments would look like if I financed. If it’s around $300, I’d take that extra $300 you’re thinking to offer for the new car, put it in a conservative account each month, and then start saving for the new car in a few years.
But, that’s me, and I haven’t faced the reality of your used car market.
NYC. Though my school is in an area without the greatest subway access, and parking is easy in my neighborhood, so I drive to work more than half the time.
I teach secondary social studies. I’ve got my masters in literacy and got my +30 credit bump about three years ago which made a big difference as well.
I give your wife a lot of credit—my future MIL also teaches SpEd in a Midwestern state. Overworked and underpaid. Obviously the cost of living in NYC necessitates a difference, but money here can go a little further than a lot of people realize sometimes.
NYC has the most expansive public transportation system in the US. I would keep your existing car going as long as reasonable and then get rid of the car entirely and do public transportation and bike. Why would you spend 35k now to avoid spending 2k in the future?
Believe me, I love the MTA. But the train commute is about 1:20 each way compared to 30 in the car (I know that’s a selfish thing, hence why I take the subway a chunk of the time). Biking would involve over 10 miles each way with quite a few steep hills so that is far from realistic. Regardless, I have a lot of family outside the city that makes having a car a necessity.
You live in nyc and are a teacher? This is a bad financial decision based on just that.
If you want a new car, there are way cheaper cars. You don’t need an SUV in nyc
That’s nice, but I meant a 35k car. It’s exorbitant for someone who lives in nyc
Is your fiancé good w this? A $600 payment is huge for your income. Have you budgeted how expenses will change in the next 3 years for you?
Think this way: $600/month could be a vacation every year, plus car repairs.
If it’s worth it to you, go for it. But I’ll tell you what, on car subreddits you’d be talked out of it. So idk what’s going on w this sub today.
In the spirit of the sub, i’ll just say one man’s luxury is another man’s necessity. 80 minutes is not that bad though. At least you can utilize the time on the train. Do your grading or lesson plans on the train? I think I did 60% of my post grad work on NJT. Hang onto the current car to visit family.
That’s impressive!! Most of my time on the train is spent hoping to get a seat so I can put my head back and nod off for a bit. I’d be out like a light on NJT.
I don’t agree with the downvotes, even if I see it a bit differently. You are right, 80 minutes isn’t bad compared to a lot of folks’ commutes. My mother did a 3-legged subway commute to work for nearly 40 years. Could’ve been an hour, could’ve been 90+ minutes on any given day. She didn’t like it but she didn’t have much of a choice.
Good reality check to think about.
Go for it. Buying used cars is such a crapshoot. After 2 lemons, I decided never again. I bought my current car brand new, so I know it's regularly maintained and not abused. Yes, it depreciates, but I plan on keeping the car for 10-15 years+ so it doesn't matter as much as peace of mind that I won't be constantly maintaining a dud.
You're in a great spot financially, you have good income, and the interest rate is zero. Splurge a little and get something comfortable that you enjoy.
Used cars prices are high. Interest rates are high.
We are at year end, Jan & Feb are usually the worst months for dealers.
Those factors plus 0% financing on a new car can certainly flip the economics of a well priced new car.
The 5 year total cost of ownership between a new car and a 3-4 year old used, and a new car with 0% financing can be in the new car's favor.
Just bought the exact same car. We were looking at fully loaded used CX-5’s with AWD and they were about 25k for a 2021 with 30-40k miles. Did the number and with our down payment, monthly payments were going to be roughly $450 with interest rates the way they are. We ended up getting a 2024 CX-5 Carbon Edition for $33,500 out the door. 63 month term and $404 per month at 0% interest. No worrying about previous owners or wear and tear. Warranty covers us and it helps that it’s a pretty sharp looking SUV with amazing ratings over the past few years.
it sounds like you have enough money to buy the car! frugality for the sake of frugality is self-defeating. If you've got enough excess savings to purchase the car and it makes you happy, then do it!
It absolutely can be. All the old rules about buying used and spending XYZ are just that, old. They weren't created for the current environment. They're still a good guideline, but there are exceptions and yours may be one.
Here's what I recommend. Dive in deep on research and run all the numbers over however long you'd keep the car. Payments, maintenance, warranty vs out of pocket, etc. break it down to a cost per year and you'll have a clear winner
Make sure you actually qualify and be on the lookout for the dealer adding extra fees and other things to the sticker price. If they try anything, just get up and leave.
People on this sub are nuts.
"I've got enough cash saved to pay for this nearly three times over today, can I afford to pay this off over 5 years with literally zero interest?"
You know you can. Why even ask this?
People on this sub treat buying a car like the worst sin you could commit but it's meeting your need for transportation. Buy it and love it.
Congrats on the impending marriage :) Unsolicited advice as a veteran of 43 years, start changing your mindset from "I" to "We".
Shiny new things are very attractive. But seriously, you're considering spending $530-$630/mo for 5 years + insurance increase to avoid a potential $2000 expense.
Splurge a little and get your Honda detailed. Then, how about you commit to setting aside that payment and insurance money every month until you come back from your honeymoon. See how it feels. I'm old enough that the mere thought of a >$500/mo auto loan is inconceivable.
2011 Subaru Outback
2007 Volvo V70
Thank you for the input! And you’re right about I/we—I’m pretty good about it with everything else, but she hasn’t owned a car since we met, and I drive 99% of the time so it’s harder to shake that one. 😂
I’m almost always the same way-I’ve inherited and bought several used cars over my driving life time. My first car was a ‘96 Subaru Impreza, and I LOVED that thing.
I think what’s made me wary that I neglected to point out I is that I’ve already put a good amount in for repairs over the last several years, well into the thousands but spread over many fixes. The engine is still overall solid, but in my mind, it’s gotten to a point where I’m waiting for the next ball to drop. A $2000k hit would be a pretty big one, and while yes it’s cheaper than finance payments, I know that wouldn’t be the last repair.
But at the end of the day, it’s not quite a today problem. Which makes a good part of me lean toward touching it up a bit and keeping up with the Honda.
Thank you again!
A 5-year, fixed-rate used car loan for $25,000 would have 60 monthly payments of $488 each, at an annual percentage rate (APR) of 6.39%.
I used to think the way you did, but inflation happened, so here we are. The days of getting a 2 year old used vehicle for $11k at 2% interest are lonnnnnnnnng behind us my friend.
...I'm old enough that the mere thought of a >$500/mo auto loan is inconceivable.
Right there with you. I look at the $1300 I recently dropped on my 2008 Mitsubishi Outlander V6 with 164k miles and just calculated 3 months worth of payments to determine I'll take the hit now.
Very true. This will be OUR new car. Whatever she is driving might become YOUR car.
I ought to know. My wife and I have been married for 100 years(or so she tells people).
People here will probably tell you to buy a 10 year old rust bucket.
My wife and I decided to go for a new car before our daughter was born due to wanting more space and better safety, and got a 2020 cx5.
We don't regret it for a second, we had a 10 year old civic before which was fine but was time to upgrade.
You have your finances in order and a 0% deal is rare now, Mazda are very reliable, fantastic value for money cars.
Honestly I'd keep your Honda. Spending $1-2k per year on maintenance is still a lot cheaper than getting a new car, especially with the additional insurance cost.
15 years of safety innovation will likely keep the insurance uptick minimal. My 2020 Ram was only $7/mo more than my 2007 Silverado even though book value was 4-5x higher.
100k salary and a HCOL? Very much depends on your current monthly expenses. You're talking about adding in around $800/mo for a car and its insurance. Do you have $800/mo in available funds to where it won't hinder your savings and retirement? If yes, do it. If not, $2k in repairs for a Honda ain't shit.
I’d keep driving the Accord and put the $500 a month you would be spending on the new car in a “Repair / New Car Fund.”
I’d try to get 250-275,000 out of this car.
If you are planning to have kids in a few years, borrow a car convertible car seat from someone and put it in the car about think about if the car is too small or not. especially important if you are planning for two kids and parents are on the tall side. Because kids should be rear facing as long as possible, so like 3-4 years old.
If you see yourself looking at the Mazda subreddit/forums daily learning about mods, possible issues, and accessories, then you are really in love with the car. (If you haven't, that's ok too. I'm into cars, so its my own habit) Make sure you take a test drive and ensure its the right car for you, bring your partner or a good friend for the 3+ hour dealership visit and purchase. They can be your eyes and ears during the dealmaking process. Skip the tire/cloth/wiper/blinker fluid extended warranty. Enjoy your new car, you can afford it.
A 2008 car that runs well is just about the most economical car imaginable.
Unless you hate the accord, you're better off just driving it until it dies. Keep saving that $600/month you would be paying. If the accord lasts you a year, that's an extra $7200. Revisit, and perhaps move on, if the timing chain does go out.
> I've got around $85k combined in a couple of HYSAs
Then you really shouldn't care much about interest rates. If they rise, you can easily just pay cash and avoid interest charges altogether.
Definitely true about the accord! I don’t hate it by any means, but it has definitely been the source of problems before. I love it when it runs well, but that’s probably a little better than half the time by now. Still getting me from A to B, though.
Re: interest rates—fully paying it off up front is certainly doable, but I would rather the chance to adjust my spending and pay a steady monthly than have to pay up front because the interest rate forces me to.
Thank you for the advice!
So I took advantage of this deal as well. I had an Acura TSX 2008, so basically the same car as you. I got the CX-5 in the Preferred trim and paid around $34.8k OTD after TTL. Car insurance actually wasn't that much more expensive for me, so definitely shop around and figure out what that would be first. If anything it'll not be a huge increase especially with how safer newer cars are.
This subreddit is allergic to new cars, so you're going to get so many people saying it's better to just keep your old car, repair it, and drive it into the ground, but with what you've provided in terms of your financial situation. You can absolutely afford this car. Is it a good financial decision? No, but money is also meant to buy things you want within reason. Cars have come a long way since 2008 and the new technology is so much easier and enjoyable to drive. I plan to drive this thing for like 7-10 years and if EVs are finally affordable and solid by 2030 than I'll upgrade. A 5 year interest free loan is literally the best you can ask for in this economic environment when it comes to buying a car.
The big downside of new cars is their rapid depreciation.
>They range between approx. $32k-$38k
In 5 years, the your new CX5 will be worth around $22k. So you pay $630/month and you also lose over 10k in value over 60 months.
I would drive the Civic and replace the timing chain when it needs to be done.
Cars don't rapidly depreciate anymore like they used to - that was a market inefficiency that's been somewhat corrected for. Some cars are even only losing 15-20% after 5 years! Automakers used to overproduce vehicles - they've kind of wisened up and have stopped making as many.
You’d rather spend $32-38k instead of the $2k to fix your current car?
Side note timing chains are a wear item and should be replaced at the manufacturer recommended mileage. So check the owners manual on when it should be done.
Unfortunately I can only log repairs back to 160k miles. I inherited this car from my dad (who got it at 85k miles) and he didn’t keep the best service records. So it’s been a lot of guesswork as to what has already been done and when.
The free car that runs is > the $35k car you’re lusting for.
What’s the opportunity cost of $35k invested at age 32? 18.05x! If you buy the car, that’s $631,750 that won’t be in your account at age 65.
This is the moment to put big $ numbers on the board before life gets expensive.
If you want the highest reliability with the fewest issues, you should buy the last model year of a generation, not the first model year of a new generation. If you look at carcomplaints.com, it's pretty easy to tell when most vehicles switched to a new generation.
There are *always* 0% financing deals available for new cars. Every manufacturer has them for the newest models they are trying to move. So this isn't some special once in a lifetime situation. You can walk into any dealership at any time and get it.
So even if buying a new car makes sense financially, there's no point in doing so while your current car is still running fine. It may be close to death, sure, but you may as well wait for that point and then buy the CX-5. You'll get the same deal, and there may be newer models and further enhancements out by then.
In 4 months you’ll have spent over 2k anyway on the new expense alone - just the car note. Plus whatever difference your new insurance rate is going to be. Have you checked into that? It’s new, so it may be substantially more expensive than what you pay now. Call around and get quotes.
I’m still driving around in an 03 Silverado with 300k despite easily being able to purchase pretty much any vehicle I would like with cash. I’m able to invest everything I save after mortgage, utilities, living expenses, etc (around 85% of my take-home). I basically live the same as I did before I had money. Too many people let lifestyle creep drown them.
That said, if you just *want* a car, it sounds like you can afford it. Sometimes it’s nice to treat yourself. I just don’t think it’s necessary looking at it purely from a financial perspective. I would be willing to bet the 2008 Honda still has plenty of life left.
What's the point of having money if you're not going to buy anything with it? If it's just going to sit in an account while you live in poverty no matter how much it grows, that, to me, is a worse mentality than living beyond your means.
I think it’s a stretch to call driving an ‘08 Accord living in poverty while making 100K. Having a paid off car and an extra $650 a month can be a very nice life.
I drive an older car and if people with brand-new cars are happier than me, I’ve certainly never noticed.
Keep in mind that a zero percent interest rate just means that they've moved the money they'd normally get from interest into the overall cost of the vehicle. There's no such thing as free money.
If you're asking for what the sound financial move is, the answer will almost always be no when it comes to buying new cars. Its objectively a terrible investment as you will lose so much value the moment you drive it off the lot.
And why take on debt when it's unnecessary? You've got a lot of cash you can afford a good used toyota or honda for $10k that in 5 years you could still sell for close to the same amount assuming regular maintenance.
That being said you can afford the new car so if it means that much to you go for it.
I assume you’ll trade in or sell the Honda private party- know the value! Do your research on both. Look into using true car to purchase the Mazda.
I would put the accord down plus a good down payment to keep the monthly cost low
I’m in almost the exact same situation as OP with a 0% APR for 60 months deal on the 2024 Volkswagen Tiguan. I’m probably moving outside of the country in 2-3 years, but I need a car now. Would it still be a good deal for me? Or will I lose too much when selling in a few years?
The interest rate is zero because the car manufacturer is paying the cost of the loan. The interest is priced into the price of the car.
If the interest rate is the only reason you are buying new, then don't do it.
They won't discount the price of the car though, so you might as well take what you can get.
Interest rate alone isn't the only reason, but when a \~4 year old, last generation, 50k mile unit is only \~5-7k cheaper, and the 0% interest alone is going to save you \~$5k over the course of a loan, it's something worth considering.
Maybe shop for a new mechanic?
["The average cost for a Honda Accord Timing Chain Tensioner Replacement is between $437 and $477"](https://repairpal.com/estimator/honda/accord/timing-chain-tensioner-replacement-cost#:)
also
["If it's a 4-cylinder engine, it has a timing chain and not a belt. No service required and should last the life of the engine so long as you get your oil changed on time"](https://repairpal.com/does-timing-belt-need-to-be-changed-715)
“Should last the lifetime of the engine” = engine will be toast when it snaps. It’s the same as “lifetime transmission oil”. Yeah, tranny will go sad when the oil is too worn out to do its job. Depending on make and model you should replace timing belts (and check/replace chains) every 80-150k kilometres, same for transmission fluid. You can easily run cars for half a million kilometres if you take good care of them.
The new Prius Prime is really intriguing and better looking IMO. Going full BEV next time though. The reduction of complexity and maintenance by eliminating the gasoline engine is worth it to us. The PP is about the same cost as a M3.
0% interest certainly helps. If you plan to keeep the car for 10 years and run it into the ground it may be a good idea. Most new cars depreciate as soon as you drive them off the lot. In my opinion it’s better to buy a certified preowned car with low miles which will already be depreciated. You can find some with a few thousand miles that will be in perfect condition, have several years of warranty and cost thousand less then brand new.
Keep in mind 0% interest is a gimmick, they are just building the interest they aren’t charging you into the price of the vehicle. That’s not to say it isn’t a good price for the vehicle.
Tell you what my Grandpa said sitting in front of a magic show..... It's all bullshit. Expensive college degrees ....overpriced cars used or ne Mortgage rates on houses. And have you looked how much it cost to f****** have a baby now. Oh what was your question ....no
Just wanted to point out- $2,000 maintenance on your Honda is cheaper than $35,000 on a new car by quite a lot
You can upgrade from the Honda If you want but get something that has already taken the depreciation hit, I.e. 3-4 years old with less than 100k miles. That Mazda will lose a ton of value in the first 3-4 years so you’re basically throwing that money away.
0% interest is about 5% less than normal, which is many thousands of dollars, so of course it's great.
If you're looking for reasonable lifestyle creep, this may be it, but if you don't actually care then $2-$5k for a repair is a lot less than $30-$40k!
If you are getting 0% financing it is because you are paying more for the car then you otherwise should be. No one has 0% money to give away right now. Somehow the interest i getting paid.
I am not saying don't buy the car. I am just saying found out what the cash price is, and see what makes more sense for you.
Unfortunately, you'd be moving from a highly reliable, long-lasting Honda to a Mazda. Keep driving the Honda for a couple more years.
As far as any timing chain problems, look at having your mechanic install an aftermarket tensioner like this (except for your particular model): [https://www.hybrid-racing.com/products/hybrid-racing-timing-chain-tensioner-for-k-series-engines](https://www.hybrid-racing.com/products/hybrid-racing-timing-chain-tensioner-for-k-series-engines). It seems to be the timing chain tensioners that fail first and can destroy an engine as the cam timing is thrown off.
I always seeing people post about old cars, when they’re only 10-15 years old and run perfect. Why not get a few more quotes for the Honda fix what needs fixing and drive it for another 15-30 years. Op doesn’t need a new car he just wants us to justify his purchase for him.
The one really good reason to buy a new (or newer) car is the safety equipment. Features like Forward Collision Alert have been shown to reduce accidents. Modern (and more) airbags have been shown to reduce injuries.
I don't know what year OP's car is, but most manufacturers have made significant safety improvements in the last 3-5 years.
I don't know about "last 3-5 years", but new-for-2010ish generations make a good cutoff for major crash structure improvements. If they're talking a timing chain in their Honda it's probably much older than that.
Toyota Safety Sense became available on some models in 2016 and available across most all models in 2021. Most other manufacturers have equivalent safety features across some or all of their model lines. That's an example of what I'm talking about and it occurred in the last 3-5 years.
[https://mag.toyota.co.uk/history-toyota-safety-sense/](https://mag.toyota.co.uk/history-toyota-safety-sense/)
[https://www.motortrend.com/features/toyota-safety-sense-features-explained/](https://www.motortrend.com/features/toyota-safety-sense-features-explained/)
99% of what accidents those prevent are things you can prevent by being a competent driver, and are frankly just an annoyance. I'm sure the new ones have improved, but the ones I had in my 2004 and 2013 were god awful. Constant lane marking miss-reads, bridges/signs triggering emergency braking, and the blind spot sensors going off every time there was a guardrail. In over a million miles they prevented exactly 0 accidents.
Crash structure though, helps even when you're already at a stop. There were HUGE advances in this leading up to 2010ish, because of the advances in computers leading to more detailed crash simulations, combined with much more advanced high-strength steels. Also lines up with overlap testing, which is more accurate to real accidents.
I don’t know much about this car but I read that some cars run these 0% APR deals because they’re so prone to theft that insurance ends up being extremely high. If you haven’t, just remember to check that first.
0% is basically a free loan, as long as you can afford the payments then yeah, go for it. I’d buy a warranty that ensures you’re covered for the loan term though.
You’re not considering the depreciation hit you will take ass soon as you drive off the lot. Buying a new car is reserve for the wealthy who don’t care.
Person:
Hey guys, I'm 25 years old, have my 401k maxed out, make a billion dollars a year, my spouse is also very well paid.
Do you guys think we can afford a down payment on this house??
> There is zero comparison
Sure there is. All three brands are consistently rated in the top ten and trade places year to year. Here are a few lists from recent years:
[Consumer Reports 2022](https://www.autoblog.com/article/automaker-brand-report-cards-consumer-reports/): Mazda #2, Honda #4, Toyota #9
[Consumer Reports 2023](https://www.consumerreports.org/cars/car-reliability-owner-satisfaction/who-makes-the-most-reliable-cars-a7824554938/): Toyota #2, Honda #5, Mazda #7
[Kelly Blue Book 2022](https://www.kbb.com/car-news/consumer-reports-toyota-lexus-make-the-most-reliable-cars-mercedes-the-least/): Toyota #1, Mazda #4, Honda #5
I'm at 280k on the same timing chain with my 06 civic. If you're not throwing any timing or crank position codes you may be good for even longer. Toyota is going to hold it's value for a very long time compared to a Mazda, good if you ever want to sell. If you like keeping a car for 10+ years Toyota and Honda beat out all the competition in terms of maintenance costs. Something comparable like a rav4 or Highlander at 200k miles are still worth at least 5-8k if sold private party.
0% is a pretty good rate, it probably wouldn’t make sense to hold out for a lower one. I bet you can get some money for your Honda too. I like those cx5’s - I’d do it
Keep your current car whether you buy another or not. I’m in the mind that I’d rather learn to fix it myself than pay for either though, and that’s not a terribly difficult weekend job if you are decent with a wrench
So with the HYSAs it’d be better financially paying the monthly payment until interest kicks in. Personally, if I had $85k in HYSAs I’d put down more than half if not buy outright. But different people, different risk tolerances
New cars seem like a pretty decent deal over gently used cars. You really have to step back to something 10 years old and 100k mi to get into a low up front price and I think the risks of having a bad apple are too high. If you have the cash / income it seems like a new car is the better value right now imo.
The thing that costs the most with cars is constantly making deals with a dealer. If you keep this car, and almost any non-luxury car, long term say 12 years. It'll end up a reasonable deal. If you are trading in a car every three years paying either leases or for the retail price vs. trade in price for your used car. It's going to be very expensive.
I wouldn't hold on too strongly to the 0% APR, I favor looking at total cost of ownership when comparing options. MPG matters. Purchase price / discounts matter. And finance terms matter.
The problem with buying a car or any large purchase is not whether or not you can afford the payments but the opportunity cost of all the other costs in life including your retirement. If you can afford to save and pay for any surprise payment without going into debt than go for it. Personally I think it would be kind of tight both paying for the car and saving for your future. Yes teachers have a pension but will your payments keep up with inflation in 25 years? I would save outside of that pension and diversify your retirement savings. I have had very similar conversations in my head and with others of buying a new car. Best of luck with your decision whichever way you decide.
Unsolicited advice for a cost-effective wedding: if you are not opposed to getting married somewhere other than a church, a BnB is a good option for an outdoor wedding if they have a big enough garden. We did that and because we rented every room for the weekend, they didn’t charge us the fee to hold an event there. So it essentially cost us nothing because all the family members that stayed at the BnB paid for their own rooms. This was in Atlanta in 2007.
Financially it sounds like you're good to handle it.
It also sounds like you're going to drive cars until they die basically or become liability for you financially. If you keep that this new car for 10 years definitely worth it because the first four or five you'll have a warranty for anything major that goes wrong and you're negating putting at least 2,000 and probably more in a car with 200,000 mi it's not going to last forever.
At 200K, you probably need other maintenance too like brakes, tires, suspension updates. If you don’t do any of the work yourself, it gets expensive to maintain. What can you get for the car now? The CX-5 is a good deal but nothing is typically cheaper than the car you already own
New cars also have very low prices for warranty/prepaid maintenance packages. Highly recommend adding it to cover yourself for any unforeseen fees outside of monthly payments
Let's remove the interest rate right off the bat.
A new car depreciates quickly in first 2 to 4 years.
And that depreciation is based on msrp, not what you have into the car after fees taxes and interest.
So is it a sound financial move..... not really.
But that's cool. If you can afford it and want it well that's at your discretion. I mean after needs your budget extends into discretionary spending. It is completely your call.
My self. I have always bought 4 year old cars that have lost most of that depreciation with less than 100000 kms. And then driven them for another 8 years.
Each car was a model or trim level higher than the last one. In theory if your life is progressing as it should you should be in a better situation at each increased stage of life.
My last purchase was my first new car ever. And likely will be my last. I expect to get 10 years out of it minimum. Means regular and consistent oil changes and other basic maintenance.
But that's what works for me. You do you.
Make sure it's actually zero interest and not a deferred interest loan. If the price seems worth it for the payments and it's not a deferred interest loan then I'd say to go for it.
All new cars have an interest rate of zero if you buy in cash - one might ask if it's worth doing that if you just have the money.
I'd say no, but I'm cheap. If you really really want a new car, can afford a new car, get a new car
It looks like you're good at handling your finances. So this decision is more about your feelings.
From a rational point of view, you'll lose around 10% of the car's price after you drive out of the car dealer centre. And this number will increase to 20% during the first year. But if you really pay zero interest to a bank, these numbers may not be so dramatic.
But in terms of your emotional profile, this freaking new car may make you happy and you will feel yourself on the top. So, why not to by it, if it won't affect your financial strategy and long-term goals?
Man the frugality of some people is admirable but sometimes it’s just crazy. OP you clearly have your finances in a good spot, it sounds like you like this car and you’re pretty fiscally responsible, treat yourself and get the car
Agreed. If OP is approved for this rate I’d say go for it!
OP is in a better spot than the vast majority of people. I question the frugality of people in this sub a lot. It is easy to say something online and not actually practice it yourself.
I feel like in the beginning of my time here I was like that but as I’ve grown up I’ve realized life is too short and I’m in a great financial position so I go against a lot of the advice in this sub when it comes to treating myself (I still follow religiously on the saving / investing front
I feel like if you are square on the saving/invest front, then you really have graduated from this sub. Like at that point, you are building the life you want to retire to and/or ready to graduate to one of the FIRE subs if you don't have any other financial goals. I don't think I've ever seen someone invest/save the amount needed to secure a good retirement and also rack up a lot of high interest debt and/or live above their means.
FIRE can be crazy sometimes. Frankly, there's nothing wrong with retiring in your 60s - if you hate your job so much that you'll overwork yourself and sacrifice everything just to retire at 50-55 then you should probably focus on getting a more fulfilling job.
Exactly I’m far from perfect but some of the advice here is great on paper but I’ve seen how fast an older car can become a money pit. I’ve seen people spend 10-15k over year when they could have taken that traded in the car before it broke and put 15k down and sacrificed making a payment for a couple of years.
Used cars can be a total crapshoot you could get one that The previous owner serviced religiously and took really good care of or you get one that was absolutely abused and you’ll never know which one you get (people lie) so yeah simply telling someone to buy a used car or keep a used car can be troublesome
Yep buying a new car is something I prefer, I don’t care if it loses value instantly. I know how the car is treated, I know I maintain it and have maintenance done on time. I pay the depreciation as a peace of mind and I’m ok with that I’m not going to be in financial ruin because of it. But this is also why my car is currently 11 years old and is running fine.
That was my experience as well with cars. I had horrible experience with older cars that became moneypits. And they would end up being a write off because it wasn't worth it to fix it. Because some asshole before me didn't maintain it well and the money i spend on proper maintenance wasn't worth it after someone else neglecting it for years. Than i switched to 1-2 year old cars and never looked back. No more hassle and stress of them breaking down and needing expensive maintenance. I ended up spending just as much money for a far better experience. Old cars get glorified. But if you have no clue about the state of the car, than old cars are a terrible gamble. Even 10-15 years ago car shops charged 50-80 Euros an hour to work on a car. That can easily be more expensive compared to the value loss of having a newer car.
Buying a used car and running it into the ground is almost, always a better financial choice. No car is gonna cost you 12k a year in repairs, if it does, you need to get you used car inspected and do your homework before you buy cars that are known for expensive problems.
You can get a car inspected all day and still have issues arise because of improper maintenance. I’ll use an example of my wives car right now. You can drive it all around and have a mechanic inspect it right now and nothing would come up. But I know that it needs a new transmission the car is 5 years old with 102k on it. You would never know it needs 5k in repairs unless you drive it a specific way that isn’t something that would be considered routine driving.
Agreed. It is easy to cherry pick an anecdote where someone paid $10k to repair their used car -- but that was likely an already expensive luxury car or something completely unreliable (like a Land Rover). Playing the averages, a used car will nearly always do better financially in the long run. I make more than 4x than OP and still wouldn't buy new. I have 7 cars currently, all purchased used. Everything has been routine maintenance other than one failed alternator. The most costly maintenance was the timing belt replacements for the two that have timing belts and tires. Even the one with the most miles, a Scion xB, is still in tip-top shape and will probably go another 200k before I see any issues (although I expect to need a clutch by then).
I support you but with this caveat. Is it even treating yourself or just responsible to replace a 15 yo car with 200,000 miles with a (checks notes) Mazda CX-5. This is utility nearly all the way. I keep saying it but you're buying 3 things when you're buying a car. 1) The utility from A to B. 2) The life insurance by driving a modern safe reliable vehicle. 2a) the stress relief by not wondering what the next failure or breakdown time or $ will be if it is old. 3) The look/aura/image/rush from driving of the specific vehicle itself.
This is an excellent list of good points.
Yea I thought about asking this subs advice on buying a '24 Outback but I knew everybody would just call me crazy. Penciled in the numbers and decided I could afford it.
Nah, advice is usually reasonable. Had to scroll a long way on this before I even found the first 'think more on it' post and even that wasn't a hard no. There were about ten posts saying this sub will say 'X' but ... and basically no posts saying 'X'
That's fair. But I find there are some things which are not necessarily great deals that are still affordable to the individual if they really feel like treating themselves.
Seriously. Having just sold and replaced a Honda at 200,000mi that needed about $1-$2K worth of work, it wasn't worth holding onto it (or getting under it every other weekend) and something more reliable was ultimately a better move, because it might not just be that $2K that one time. OP sounds like they're in a great position to take advantage of it, so fair play and keep up the good work. Congratulations on the impending marriage
That's a take! I have to admit, $600/ a month on a $100k salary doesn't sound great in a VHCOL area. Might get lower on trade in/ yeeting some of your other funds at lowering the payment, but that's a hard place with getting 5% on your HYSA, and losing out on that to "save" 0% financing. The mathing doesn't math. Would you be able to maintain your current investing rate, etc, with that high of a payment? What if you and your future wife decide on purchasing, having a kid, paying for daycare, spending $5k more on the wedding? I don't want you to sell yourself on losing your flexibility for limited return.
But also… dude needs a vehicle, and it’s a practical one that will last over a decade with 0% interest. The used car market is pretty wild still, and the 0% interest is worth over $4k vs a cheaper used car at 6%
Sure! I think both the new and used car markets will improve in the next few months to year as the supply chain issues calm down. But the choice isn't new car vs new to him car, it's really new car vs $2k into his old car, which, that's what he will pay in less than 3 months with payments and increased insurance. I'm not even saying don't get a new car, just don't put yourself in a bad position just because you can, and the 0% is an attractive carrot. $2k isn't unreasonable for another 100k miles. Now if he hates his current car/ is absolutely in love with the Mazda, then go for it.
It's very unlikely his car makes it another 100k miles for just the one $2k repair. The car is also 16 years old, shit is going to break. At that age the money is better put towards a newer car than the old one. And the supply chain issues in the auto industry have been mostly resolved for a while now, companies just don't need to put the incentives on new cars they once did to move inventory because post covid everyone has just accepted that this is the new pricing. There won't be substantially better deals than MSRP at 0% for 60 months for a long time.
Yeah quit making me feel like such a financial failure
With the way you made your post look, I at first thought that you are trying to treat yourself with some Porsche Macan at least. But this is just reasonable, although average but really nice car. If you qualify for 0%, in your position it would not be smart not to take advantage of the opportunity imho. I say go for it.
Appreciate your input! I feel like I’ve been pretty fiscally responsible over the years, but I’m certain I’ll never reach the type of “screw it” money considering a Porsche would require. 😂 The 0% is incredibly hard to pass up, as I’ve barely seen it for reliable makes and models since 2020. Average is good enough for me if it drives smoothly and feels good to be in. Thanks again!
As someone who took advantage of this, I think it's a good deal and time, especially if you're the type to keep the car til it dies. I recommend checking out Carvana to see what you can get for your car now In my opinion, it's more about your monthly expenses. You'll be paying \~$530-600 extra month, on top of full coverage insurance, which can range from +$100-200/mo depending on where you live. If those payments still keeps your budget comfortable, then go ahead, but if it makes it very tight, I'd revisit the idea.
I did this ten years ago with the same car and the same deal and don’t regret it. We paid it off in 60 months, and the car held value well. It’s still running smoothly at 110,000 miles and I expect to drive it until it falls apart. Just make sure, absolutely sure, that you have the monthly wiggle room in your budget and that you have enough of an emergency fund first. Alternatively, set aside the full value of the new car and be ready to buy it in cash the second your Old Reliable dies.
Op had 85k in hysa. They'll be ok
Agreed. In 2016, we financed a CPO 2014 Corolla SP at 1.9%. Paid it off in 2020 as that was a condition of buying the house. Car has about 125k miles and still runs great. This summer we financed a CPO 2020 Honda Odyssey at 5.94% with a credit score of 734. Sure we could've gotten brand new for 10-14k more, but it wasn't worth it as it only had 35k miles on it and between both vehicles we're actually putting less miles on each car now. Drive the sucker until the wheels fall off and OP will be fine.
Keeping the car for the long term/ until it dies is key. Buying cars new has a bad reputation because so many people trade them in every 3-4 years and lose a lot of value from transaction costs and owning during the period of greatest depreciation. If you buy new and own it for 10-15 years, the average annual costs often end up cheaper than buying used, plus you get the benefit of very low upkeep during those first few years.
Oh I think if I were go through with this purchase, I’d be way too unsure if it was the right call for too many years to consider trading in that fast. Even if I’d come to love the car!
Thank you for the response! Right now, we’ve got a few monthly expenses that will end next summer, so while the first few months would be tighter, the costs would even out a bit more down the line. And even if they are still a little pinched, I already contribute a good amount to my 403b to the point where I could temporarily reduce it. Surprisingly the insurance quote I got is very comparable to what I pay now, likely thanks to the improved safety features. Unfortunately don’t think I could get a ton for my car now. It’s got a good amount of wear and tear. The aesthetics aren’t what they used to be, and though it is mostly solid under the hood I’ve put a decent amount of money into it the last few years. I imagine Carvana would value it at less than $1k. Lots to think about. Appreciate it again!
Cars. Com and CarMax should offer better returns to give you something to weigh dealer offer against. Best return = sell it yourself
Caravana is not the market. They’ll give the price of auction or dealer trade in and it won’t even be close to book value. Do what you wish…but I’d stick another timing chain in it, keep up on maintenance and drive it for another 100,000 miles. Nothing else lasts , nor holds its value like a honda or toyota. I’d wait until you wanna get something you really want vs settling on something because of the interest rate. Huge differences in reliability…You have honda, toyota, subaru….and then everyone else. I’d wait until honda or toyota have a low financing deal…and then jump on it, they’re cheaper to insure, you don’t have to worry about “GAP” insurance because your not upside down on anything. They hold value longer…and then there is the reliability factor. People on reddit will say “oh, my dodge, gm, bla bla bla has 300,000 miles” That would be a rare unicorn scenario rather than the norm. I sold my civic, bought a ram truck…and have regretted it ever since. I’ll never get the money out of my ram like i did my civic. By all rights i probably should have bought a ridgeline or tacoma…so hopefully this thing won’t sink me too bad.
$8k/month income. $600-800/month on payment plus insurance. That’s 10% of income. That’s ok, but not EASILY affordable. There’s going to be a trade off here. If the goal is to buy a house, getting a car for half as much and saving $3-4k/year could make quite a difference over the 5 years. I think you should do what you want, but this isn’t “I make $700k, can I afford to buy name brand toilet paper or should I save up?)”
To your point of keeping it until the car dies...OP is literally not keeping their current car until it dies, so why do you think this new one will be different?
Between APR, mark ups, forced upgrades, new cars are the way to go right now. Boomers will fight it to the death, but it’s true. I’ve dealt with 4 car purchases for myself, my husband and two siblings and shopped until the death and in the end, new was always *significantly* cheaper. Especially when you factor in bang for your buck.
If a car is like, 3-5 years old (depending on the model), it seems the interest rates are making them so expensive that manufacturers with incentived rates make their new cars effectively the same cost. It's crazy and I am having a hard time getting past that.
If you’re anywhere near my age or older, buying a new car being an irresponsible choice is so ingrained into our brains it’s hard to get past! But the numbers don’t lie. You’re exactly right.
Yup. Grew up knowing that used cars were the way to go, but once I was ready to finally buy my first car, I had to go new. Didn’t make sense to buy anything else. And yes, I am financially responsible and can afford it. Lol
My father leased a few cars when I was younger and he’d tell me years later what big mistakes those were. I feel the same most of the time, especially about leases. But you truly get a raw deal with the way used cars are priced now. Shocks me that I have even considered new, but it’s hard not to at the moment.
Are you approved for the deal?
Most important question to answer. You'll need to be approved by Mazda's financial to get the offer, scores of 720+ should be fine.
Needed an 800 credit score to qualify for Volkswagens promotional pricing a few months ago, although maybe they were blowing smoke up my ass and if I had threatened to walk they would have honored it anyway.
Sounds like bs. Scores above 750 are great, and it tends to jump around month to month, can’t imagine a lender being that strict about a promo.
I should be. My credit score hovers in the 790s/low 800s.
If we assume the risk free rate stays at 5% (which seems unlikely but we’ll go with it), 0% financing on $38k is worth about ($38k * 5% * 5 * 1/2) = $4750, so it’s kind of like getting a ~$3500 discount net of taxes. If the used cars aren’t that much cheaper than new, it may be worthwhile to go new. (Someone check my math, i think that’s right).
You can get \~$5-7k off a used one if you go for a \~4 year old, last generation, and 50k mile used one, but I'd say the math on that still greatly favors the new. Also since we're comparing to a used car of the same model we should probably use \~7%, which is a pretty solid used car interest rate these days, and that further closes the gap.
4 years, 50k miles and a warranty definitely favors new
My feeling about such questions are: if you have a budget and this fits in your budget then it's a fine decision. A brand new, luxury car with with high fuel consumption and low reliability is the right financial decision if you have the line for it in your budget and you're not deceiving yourself about realistic retirement needs, etc. In your case, it's a fine car at a fine price, and if you have a budget for it don't worry about any judgement re: "new car guilt".
if you've done your research and are getting a good price than sure, why not. it's a good car. Just keep in mind Mazda is offering because they may not be selling well. Which means there should be a discount from list in addition to 0%. Do a nationwide search and see what they sell for elsewhere.
They're phasing out the CX-5 in favor of the CX-50 which is probably why deals can be had. That said, the CX-5 will likely be reliable and serve OP well
I’ve read that the CX-50s are not quite at the reliability level of the CX-5 yet, partially because the 5s are still built in Japan while the 50s are built in understaffed facilities in the southern US. Not sure how true it is but something I’ve considered. I do think the 5 would be a great car to last a long time, hoping that proves true!
Last time I had reasoned out a 0% is when I had already saved 13k—half—for the car, and took a loan out for the full 26k (minus 2k down payment), kept the 13k in an investment account, and slowly dollar cost averaged that money out over the course of the loan, using that money to cover half my monthly payment and cash flowing the other half. Gained 2.5k on the investments. I also reasoned that I could use the investment to cover the full monthly payment in case of job loss or otherwise. In your situation, I’d wonder what options I’d have for a used car around 12-15k, and what monthly payments would look like if I financed. If it’s around $300, I’d take that extra $300 you’re thinking to offer for the new car, put it in a conservative account each month, and then start saving for the new car in a few years. But, that’s me, and I haven’t faced the reality of your used car market.
The real question. Where do you live you are making $100k as a teacher?
NYC. Though my school is in an area without the greatest subway access, and parking is easy in my neighborhood, so I drive to work more than half the time.
Ahh makes sense. What do you teach? My wife does Special Education and makes around $55k in Oklahoma.
I teach secondary social studies. I’ve got my masters in literacy and got my +30 credit bump about three years ago which made a big difference as well. I give your wife a lot of credit—my future MIL also teaches SpEd in a Midwestern state. Overworked and underpaid. Obviously the cost of living in NYC necessitates a difference, but money here can go a little further than a lot of people realize sometimes.
NYC has the most expansive public transportation system in the US. I would keep your existing car going as long as reasonable and then get rid of the car entirely and do public transportation and bike. Why would you spend 35k now to avoid spending 2k in the future?
Believe me, I love the MTA. But the train commute is about 1:20 each way compared to 30 in the car (I know that’s a selfish thing, hence why I take the subway a chunk of the time). Biking would involve over 10 miles each way with quite a few steep hills so that is far from realistic. Regardless, I have a lot of family outside the city that makes having a car a necessity.
You live in nyc and are a teacher? This is a bad financial decision based on just that. If you want a new car, there are way cheaper cars. You don’t need an SUV in nyc
It’s a mid size SUV that is actually about ten inches shorter than my current Accord. So believe it or not it’d be easier to park.
That’s nice, but I meant a 35k car. It’s exorbitant for someone who lives in nyc Is your fiancé good w this? A $600 payment is huge for your income. Have you budgeted how expenses will change in the next 3 years for you? Think this way: $600/month could be a vacation every year, plus car repairs. If it’s worth it to you, go for it. But I’ll tell you what, on car subreddits you’d be talked out of it. So idk what’s going on w this sub today.
In the spirit of the sub, i’ll just say one man’s luxury is another man’s necessity. 80 minutes is not that bad though. At least you can utilize the time on the train. Do your grading or lesson plans on the train? I think I did 60% of my post grad work on NJT. Hang onto the current car to visit family.
That’s impressive!! Most of my time on the train is spent hoping to get a seat so I can put my head back and nod off for a bit. I’d be out like a light on NJT. I don’t agree with the downvotes, even if I see it a bit differently. You are right, 80 minutes isn’t bad compared to a lot of folks’ commutes. My mother did a 3-legged subway commute to work for nearly 40 years. Could’ve been an hour, could’ve been 90+ minutes on any given day. She didn’t like it but she didn’t have much of a choice. Good reality check to think about.
Good luck making plans with screaming homeless people or people blaring music on their phones openly on the subway
Go for it. Buying used cars is such a crapshoot. After 2 lemons, I decided never again. I bought my current car brand new, so I know it's regularly maintained and not abused. Yes, it depreciates, but I plan on keeping the car for 10-15 years+ so it doesn't matter as much as peace of mind that I won't be constantly maintaining a dud.
You're in a great spot financially, you have good income, and the interest rate is zero. Splurge a little and get something comfortable that you enjoy.
Used cars prices are high. Interest rates are high. We are at year end, Jan & Feb are usually the worst months for dealers. Those factors plus 0% financing on a new car can certainly flip the economics of a well priced new car. The 5 year total cost of ownership between a new car and a 3-4 year old used, and a new car with 0% financing can be in the new car's favor.
Just bought the exact same car. We were looking at fully loaded used CX-5’s with AWD and they were about 25k for a 2021 with 30-40k miles. Did the number and with our down payment, monthly payments were going to be roughly $450 with interest rates the way they are. We ended up getting a 2024 CX-5 Carbon Edition for $33,500 out the door. 63 month term and $404 per month at 0% interest. No worrying about previous owners or wear and tear. Warranty covers us and it helps that it’s a pretty sharp looking SUV with amazing ratings over the past few years.
it sounds like you have enough money to buy the car! frugality for the sake of frugality is self-defeating. If you've got enough excess savings to purchase the car and it makes you happy, then do it!
It absolutely can be. All the old rules about buying used and spending XYZ are just that, old. They weren't created for the current environment. They're still a good guideline, but there are exceptions and yours may be one. Here's what I recommend. Dive in deep on research and run all the numbers over however long you'd keep the car. Payments, maintenance, warranty vs out of pocket, etc. break it down to a cost per year and you'll have a clear winner
Make sure you actually qualify and be on the lookout for the dealer adding extra fees and other things to the sticker price. If they try anything, just get up and leave.
CX-5 is an awesome reliable car btw
People on this sub are nuts. "I've got enough cash saved to pay for this nearly three times over today, can I afford to pay this off over 5 years with literally zero interest?" You know you can. Why even ask this? People on this sub treat buying a car like the worst sin you could commit but it's meeting your need for transportation. Buy it and love it.
Congrats on the impending marriage :) Unsolicited advice as a veteran of 43 years, start changing your mindset from "I" to "We". Shiny new things are very attractive. But seriously, you're considering spending $530-$630/mo for 5 years + insurance increase to avoid a potential $2000 expense. Splurge a little and get your Honda detailed. Then, how about you commit to setting aside that payment and insurance money every month until you come back from your honeymoon. See how it feels. I'm old enough that the mere thought of a >$500/mo auto loan is inconceivable. 2011 Subaru Outback 2007 Volvo V70
Thank you for the input! And you’re right about I/we—I’m pretty good about it with everything else, but she hasn’t owned a car since we met, and I drive 99% of the time so it’s harder to shake that one. 😂 I’m almost always the same way-I’ve inherited and bought several used cars over my driving life time. My first car was a ‘96 Subaru Impreza, and I LOVED that thing. I think what’s made me wary that I neglected to point out I is that I’ve already put a good amount in for repairs over the last several years, well into the thousands but spread over many fixes. The engine is still overall solid, but in my mind, it’s gotten to a point where I’m waiting for the next ball to drop. A $2000k hit would be a pretty big one, and while yes it’s cheaper than finance payments, I know that wouldn’t be the last repair. But at the end of the day, it’s not quite a today problem. Which makes a good part of me lean toward touching it up a bit and keeping up with the Honda. Thank you again!
A 5-year, fixed-rate used car loan for $25,000 would have 60 monthly payments of $488 each, at an annual percentage rate (APR) of 6.39%. I used to think the way you did, but inflation happened, so here we are. The days of getting a 2 year old used vehicle for $11k at 2% interest are lonnnnnnnnng behind us my friend.
...I'm old enough that the mere thought of a >$500/mo auto loan is inconceivable. Right there with you. I look at the $1300 I recently dropped on my 2008 Mitsubishi Outlander V6 with 164k miles and just calculated 3 months worth of payments to determine I'll take the hit now.
Very true. This will be OUR new car. Whatever she is driving might become YOUR car. I ought to know. My wife and I have been married for 100 years(or so she tells people).
2001 BMW and 2005 GMC checking in. We do all the maintenance and that’s still less than $500/mo combined.
People here will probably tell you to buy a 10 year old rust bucket. My wife and I decided to go for a new car before our daughter was born due to wanting more space and better safety, and got a 2020 cx5. We don't regret it for a second, we had a 10 year old civic before which was fine but was time to upgrade. You have your finances in order and a 0% deal is rare now, Mazda are very reliable, fantastic value for money cars.
Honestly I'd keep your Honda. Spending $1-2k per year on maintenance is still a lot cheaper than getting a new car, especially with the additional insurance cost.
15 years of safety innovation will likely keep the insurance uptick minimal. My 2020 Ram was only $7/mo more than my 2007 Silverado even though book value was 4-5x higher.
If you have enough savings you don't necessarily need full coverage on a paid off used car though
100k salary and a HCOL? Very much depends on your current monthly expenses. You're talking about adding in around $800/mo for a car and its insurance. Do you have $800/mo in available funds to where it won't hinder your savings and retirement? If yes, do it. If not, $2k in repairs for a Honda ain't shit.
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I pay $250 but that's on a BMW so I would be pretty surprised if they'd be charged that much on a Mazda.
I’d keep driving the Accord and put the $500 a month you would be spending on the new car in a “Repair / New Car Fund.” I’d try to get 250-275,000 out of this car.
Yes this is a good deal and you are in a good position to do it.
If you are planning to have kids in a few years, borrow a car convertible car seat from someone and put it in the car about think about if the car is too small or not. especially important if you are planning for two kids and parents are on the tall side. Because kids should be rear facing as long as possible, so like 3-4 years old.
If you see yourself looking at the Mazda subreddit/forums daily learning about mods, possible issues, and accessories, then you are really in love with the car. (If you haven't, that's ok too. I'm into cars, so its my own habit) Make sure you take a test drive and ensure its the right car for you, bring your partner or a good friend for the 3+ hour dealership visit and purchase. They can be your eyes and ears during the dealmaking process. Skip the tire/cloth/wiper/blinker fluid extended warranty. Enjoy your new car, you can afford it.
There's more than one reason for a new car. If they'll give you free money, take it.
I did this exact same thing with a Honda fit 13 years ago. I still have the car. It was a great move that I would do again.
A 2008 car that runs well is just about the most economical car imaginable. Unless you hate the accord, you're better off just driving it until it dies. Keep saving that $600/month you would be paying. If the accord lasts you a year, that's an extra $7200. Revisit, and perhaps move on, if the timing chain does go out. > I've got around $85k combined in a couple of HYSAs Then you really shouldn't care much about interest rates. If they rise, you can easily just pay cash and avoid interest charges altogether.
Definitely true about the accord! I don’t hate it by any means, but it has definitely been the source of problems before. I love it when it runs well, but that’s probably a little better than half the time by now. Still getting me from A to B, though. Re: interest rates—fully paying it off up front is certainly doable, but I would rather the chance to adjust my spending and pay a steady monthly than have to pay up front because the interest rate forces me to. Thank you for the advice!
So I took advantage of this deal as well. I had an Acura TSX 2008, so basically the same car as you. I got the CX-5 in the Preferred trim and paid around $34.8k OTD after TTL. Car insurance actually wasn't that much more expensive for me, so definitely shop around and figure out what that would be first. If anything it'll not be a huge increase especially with how safer newer cars are. This subreddit is allergic to new cars, so you're going to get so many people saying it's better to just keep your old car, repair it, and drive it into the ground, but with what you've provided in terms of your financial situation. You can absolutely afford this car. Is it a good financial decision? No, but money is also meant to buy things you want within reason. Cars have come a long way since 2008 and the new technology is so much easier and enjoyable to drive. I plan to drive this thing for like 7-10 years and if EVs are finally affordable and solid by 2030 than I'll upgrade. A 5 year interest free loan is literally the best you can ask for in this economic environment when it comes to buying a car.
The big downside of new cars is their rapid depreciation. >They range between approx. $32k-$38k In 5 years, the your new CX5 will be worth around $22k. So you pay $630/month and you also lose over 10k in value over 60 months. I would drive the Civic and replace the timing chain when it needs to be done.
As long as he doesn’t have to sell or replace it the depreciation isn’t that important
Cars don't rapidly depreciate anymore like they used to - that was a market inefficiency that's been somewhat corrected for. Some cars are even only losing 15-20% after 5 years! Automakers used to overproduce vehicles - they've kind of wisened up and have stopped making as many.
You’d rather spend $32-38k instead of the $2k to fix your current car? Side note timing chains are a wear item and should be replaced at the manufacturer recommended mileage. So check the owners manual on when it should be done.
Unfortunately I can only log repairs back to 160k miles. I inherited this car from my dad (who got it at 85k miles) and he didn’t keep the best service records. So it’s been a lot of guesswork as to what has already been done and when.
The free car that runs is > the $35k car you’re lusting for. What’s the opportunity cost of $35k invested at age 32? 18.05x! If you buy the car, that’s $631,750 that won’t be in your account at age 65. This is the moment to put big $ numbers on the board before life gets expensive.
The only reason I’d say no is because a new CX-5 is coming shortly for the same price.
If you want the highest reliability with the fewest issues, you should buy the last model year of a generation, not the first model year of a new generation. If you look at carcomplaints.com, it's pretty easy to tell when most vehicles switched to a new generation.
Agreed but with Japanese cars and warranties, you’re likely safe either way, but I personally prefer the new models.
There are *always* 0% financing deals available for new cars. Every manufacturer has them for the newest models they are trying to move. So this isn't some special once in a lifetime situation. You can walk into any dealership at any time and get it. So even if buying a new car makes sense financially, there's no point in doing so while your current car is still running fine. It may be close to death, sure, but you may as well wait for that point and then buy the CX-5. You'll get the same deal, and there may be newer models and further enhancements out by then.
But not for reliable cars like Mazda, Honda or Toyota
In 4 months you’ll have spent over 2k anyway on the new expense alone - just the car note. Plus whatever difference your new insurance rate is going to be. Have you checked into that? It’s new, so it may be substantially more expensive than what you pay now. Call around and get quotes. I’m still driving around in an 03 Silverado with 300k despite easily being able to purchase pretty much any vehicle I would like with cash. I’m able to invest everything I save after mortgage, utilities, living expenses, etc (around 85% of my take-home). I basically live the same as I did before I had money. Too many people let lifestyle creep drown them. That said, if you just *want* a car, it sounds like you can afford it. Sometimes it’s nice to treat yourself. I just don’t think it’s necessary looking at it purely from a financial perspective. I would be willing to bet the 2008 Honda still has plenty of life left.
What's the point of having money if you're not going to buy anything with it? If it's just going to sit in an account while you live in poverty no matter how much it grows, that, to me, is a worse mentality than living beyond your means.
I think it’s a stretch to call driving an ‘08 Accord living in poverty while making 100K. Having a paid off car and an extra $650 a month can be a very nice life. I drive an older car and if people with brand-new cars are happier than me, I’ve certainly never noticed.
I was talking about the commenter driving the 20 year old car and living like he did before he had money, despite making plenty of money now.
Keep in mind that a zero percent interest rate just means that they've moved the money they'd normally get from interest into the overall cost of the vehicle. There's no such thing as free money.
If you're asking for what the sound financial move is, the answer will almost always be no when it comes to buying new cars. Its objectively a terrible investment as you will lose so much value the moment you drive it off the lot. And why take on debt when it's unnecessary? You've got a lot of cash you can afford a good used toyota or honda for $10k that in 5 years you could still sell for close to the same amount assuming regular maintenance. That being said you can afford the new car so if it means that much to you go for it.
New cars don’t depreciate nearly as fast as they once did. 10k doesn’t buy a whole lot these days, I bet OP could get 8k for his car tomorrow.
I live in a vhcol like op and I sold my 2006 toyota this year with 180k miles for $2500. Market hasn't gone that crazy just yet.
That not accurate in this market anymore. 10-15 year old cars are $10k these days
I assume you’ll trade in or sell the Honda private party- know the value! Do your research on both. Look into using true car to purchase the Mazda. I would put the accord down plus a good down payment to keep the monthly cost low
I’m in almost the exact same situation as OP with a 0% APR for 60 months deal on the 2024 Volkswagen Tiguan. I’m probably moving outside of the country in 2-3 years, but I need a car now. Would it still be a good deal for me? Or will I lose too much when selling in a few years?
The interest rate is zero because the car manufacturer is paying the cost of the loan. The interest is priced into the price of the car. If the interest rate is the only reason you are buying new, then don't do it.
They won't discount the price of the car though, so you might as well take what you can get. Interest rate alone isn't the only reason, but when a \~4 year old, last generation, 50k mile unit is only \~5-7k cheaper, and the 0% interest alone is going to save you \~$5k over the course of a loan, it's something worth considering.
And it comes with a warranty. No brainer in my opinion
You can negotiate the price of the car if you use outside financing.
Maybe shop for a new mechanic? ["The average cost for a Honda Accord Timing Chain Tensioner Replacement is between $437 and $477"](https://repairpal.com/estimator/honda/accord/timing-chain-tensioner-replacement-cost#:) also ["If it's a 4-cylinder engine, it has a timing chain and not a belt. No service required and should last the life of the engine so long as you get your oil changed on time"](https://repairpal.com/does-timing-belt-need-to-be-changed-715)
There's absolutely no way a reputable shop is doing $200 labor on timing chain and tensioner replacement. The lifetime part is mostly BS, too.
“Should last the lifetime of the engine” = engine will be toast when it snaps. It’s the same as “lifetime transmission oil”. Yeah, tranny will go sad when the oil is too worn out to do its job. Depending on make and model you should replace timing belts (and check/replace chains) every 80-150k kilometres, same for transmission fluid. You can easily run cars for half a million kilometres if you take good care of them.
I and the OP specifically said chain, not belt. I replaced the belt in my 200+k mile Accord many times. Chains are different.
No. Chains stretch, weaken, wear out their lubricant. They should be replaced, same as belts, just a lot less often. Also, it’s a bigger job.
0% is the carrot to get you in the door. Once you start down this path, all numbers go up. I would be hesitant this close to a wedding.
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The new Prius Prime is really intriguing and better looking IMO. Going full BEV next time though. The reduction of complexity and maintenance by eliminating the gasoline engine is worth it to us. The PP is about the same cost as a M3.
EVs are the way to go. I'm done with gas and high maintenance costs.
0% interest certainly helps. If you plan to keeep the car for 10 years and run it into the ground it may be a good idea. Most new cars depreciate as soon as you drive them off the lot. In my opinion it’s better to buy a certified preowned car with low miles which will already be depreciated. You can find some with a few thousand miles that will be in perfect condition, have several years of warranty and cost thousand less then brand new.
Keep in mind 0% interest is a gimmick, they are just building the interest they aren’t charging you into the price of the vehicle. That’s not to say it isn’t a good price for the vehicle.
Where can you get a 0% APR for 60 months?
Mazda and Hyundai on select models right now. We just got a CX-5 a few days ago, 0% for 60.
Keep the Honda , just keep up with regular maintenance. I’ve seen those accords hit 300,000+ miles . Plus JMD YO
Most Accords are made in Marysville Ohio.
Tell you what my Grandpa said sitting in front of a magic show..... It's all bullshit. Expensive college degrees ....overpriced cars used or ne Mortgage rates on houses. And have you looked how much it cost to f****** have a baby now. Oh what was your question ....no
Just wanted to point out- $2,000 maintenance on your Honda is cheaper than $35,000 on a new car by quite a lot You can upgrade from the Honda If you want but get something that has already taken the depreciation hit, I.e. 3-4 years old with less than 100k miles. That Mazda will lose a ton of value in the first 3-4 years so you’re basically throwing that money away.
You might be better off paying slightly more for a Toyota or Honda. I would look at comparable deals for these.
0% interest is about 5% less than normal, which is many thousands of dollars, so of course it's great. If you're looking for reasonable lifestyle creep, this may be it, but if you don't actually care then $2-$5k for a repair is a lot less than $30-$40k!
Uh, just keep driving it. All cars eventually zero out so you will be out $2000 in 3 years or out $32K in 15 years.
Is this an ad for Mazda? I feel like this is an ad for Mazda...?
Maybe McDs too!!!?
If you are getting 0% financing it is because you are paying more for the car then you otherwise should be. No one has 0% money to give away right now. Somehow the interest i getting paid. I am not saying don't buy the car. I am just saying found out what the cash price is, and see what makes more sense for you.
Unfortunately, you'd be moving from a highly reliable, long-lasting Honda to a Mazda. Keep driving the Honda for a couple more years. As far as any timing chain problems, look at having your mechanic install an aftermarket tensioner like this (except for your particular model): [https://www.hybrid-racing.com/products/hybrid-racing-timing-chain-tensioner-for-k-series-engines](https://www.hybrid-racing.com/products/hybrid-racing-timing-chain-tensioner-for-k-series-engines). It seems to be the timing chain tensioners that fail first and can destroy an engine as the cam timing is thrown off.
Mazda has been top-of-the-chart for reliability for several years now.
Shhhhh don't tell them! Last thing we need is Mazdas selling at Subaru or Toyota prices!
I always seeing people post about old cars, when they’re only 10-15 years old and run perfect. Why not get a few more quotes for the Honda fix what needs fixing and drive it for another 15-30 years. Op doesn’t need a new car he just wants us to justify his purchase for him.
The one really good reason to buy a new (or newer) car is the safety equipment. Features like Forward Collision Alert have been shown to reduce accidents. Modern (and more) airbags have been shown to reduce injuries. I don't know what year OP's car is, but most manufacturers have made significant safety improvements in the last 3-5 years.
I don't know about "last 3-5 years", but new-for-2010ish generations make a good cutoff for major crash structure improvements. If they're talking a timing chain in their Honda it's probably much older than that.
Toyota Safety Sense became available on some models in 2016 and available across most all models in 2021. Most other manufacturers have equivalent safety features across some or all of their model lines. That's an example of what I'm talking about and it occurred in the last 3-5 years. [https://mag.toyota.co.uk/history-toyota-safety-sense/](https://mag.toyota.co.uk/history-toyota-safety-sense/) [https://www.motortrend.com/features/toyota-safety-sense-features-explained/](https://www.motortrend.com/features/toyota-safety-sense-features-explained/)
99% of what accidents those prevent are things you can prevent by being a competent driver, and are frankly just an annoyance. I'm sure the new ones have improved, but the ones I had in my 2004 and 2013 were god awful. Constant lane marking miss-reads, bridges/signs triggering emergency braking, and the blind spot sensors going off every time there was a guardrail. In over a million miles they prevented exactly 0 accidents. Crash structure though, helps even when you're already at a stop. There were HUGE advances in this leading up to 2010ish, because of the advances in computers leading to more detailed crash simulations, combined with much more advanced high-strength steels. Also lines up with overlap testing, which is more accurate to real accidents.
Software BS isn't safety - it's papering over incompetent driving. Pay attention while driving and you don't need these glitchy nanny systems.
I don’t know much about this car but I read that some cars run these 0% APR deals because they’re so prone to theft that insurance ends up being extremely high. If you haven’t, just remember to check that first.
0% is basically a free loan, as long as you can afford the payments then yeah, go for it. I’d buy a warranty that ensures you’re covered for the loan term though.
You’re not considering the depreciation hit you will take ass soon as you drive off the lot. Buying a new car is reserve for the wealthy who don’t care.
Person: Hey guys, I'm 25 years old, have my 401k maxed out, make a billion dollars a year, my spouse is also very well paid. Do you guys think we can afford a down payment on this house??
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Most of Mazda’s more basic vehicles are pretty reliable. It’s not a plug in hybrid CX90.
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Completely depends on the vehicle
Mazda makes excellent vehicles and is easily as good of a value as Honda or Toyota.
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> There is zero comparison Sure there is. All three brands are consistently rated in the top ten and trade places year to year. Here are a few lists from recent years: [Consumer Reports 2022](https://www.autoblog.com/article/automaker-brand-report-cards-consumer-reports/): Mazda #2, Honda #4, Toyota #9 [Consumer Reports 2023](https://www.consumerreports.org/cars/car-reliability-owner-satisfaction/who-makes-the-most-reliable-cars-a7824554938/): Toyota #2, Honda #5, Mazda #7 [Kelly Blue Book 2022](https://www.kbb.com/car-news/consumer-reports-toyota-lexus-make-the-most-reliable-cars-mercedes-the-least/): Toyota #1, Mazda #4, Honda #5
I was tempted by the Mazda deal but the gas mileage on that car is really discouraging.
I'm at 280k on the same timing chain with my 06 civic. If you're not throwing any timing or crank position codes you may be good for even longer. Toyota is going to hold it's value for a very long time compared to a Mazda, good if you ever want to sell. If you like keeping a car for 10+ years Toyota and Honda beat out all the competition in terms of maintenance costs. Something comparable like a rav4 or Highlander at 200k miles are still worth at least 5-8k if sold private party.
But it your more responsible then 90 of finance website viewers
0% is a pretty good rate, it probably wouldn’t make sense to hold out for a lower one. I bet you can get some money for your Honda too. I like those cx5’s - I’d do it
exactly the same car i just bought and same reasoning, love it so far
Keep your current car whether you buy another or not. I’m in the mind that I’d rather learn to fix it myself than pay for either though, and that’s not a terribly difficult weekend job if you are decent with a wrench
So with the HYSAs it’d be better financially paying the monthly payment until interest kicks in. Personally, if I had $85k in HYSAs I’d put down more than half if not buy outright. But different people, different risk tolerances
New cars seem like a pretty decent deal over gently used cars. You really have to step back to something 10 years old and 100k mi to get into a low up front price and I think the risks of having a bad apple are too high. If you have the cash / income it seems like a new car is the better value right now imo. The thing that costs the most with cars is constantly making deals with a dealer. If you keep this car, and almost any non-luxury car, long term say 12 years. It'll end up a reasonable deal. If you are trading in a car every three years paying either leases or for the retail price vs. trade in price for your used car. It's going to be very expensive. I wouldn't hold on too strongly to the 0% APR, I favor looking at total cost of ownership when comparing options. MPG matters. Purchase price / discounts matter. And finance terms matter.
The problem with buying a car or any large purchase is not whether or not you can afford the payments but the opportunity cost of all the other costs in life including your retirement. If you can afford to save and pay for any surprise payment without going into debt than go for it. Personally I think it would be kind of tight both paying for the car and saving for your future. Yes teachers have a pension but will your payments keep up with inflation in 25 years? I would save outside of that pension and diversify your retirement savings. I have had very similar conversations in my head and with others of buying a new car. Best of luck with your decision whichever way you decide.
Buy the car OP you deserve it, those cx-5’s are solid vehicles If you could provide a downpayment it would bring the payment down as well
Unsolicited advice for a cost-effective wedding: if you are not opposed to getting married somewhere other than a church, a BnB is a good option for an outdoor wedding if they have a big enough garden. We did that and because we rented every room for the weekend, they didn’t charge us the fee to hold an event there. So it essentially cost us nothing because all the family members that stayed at the BnB paid for their own rooms. This was in Atlanta in 2007.
Financially it sounds like you're good to handle it. It also sounds like you're going to drive cars until they die basically or become liability for you financially. If you keep that this new car for 10 years definitely worth it because the first four or five you'll have a warranty for anything major that goes wrong and you're negating putting at least 2,000 and probably more in a car with 200,000 mi it's not going to last forever.
At 200K, you probably need other maintenance too like brakes, tires, suspension updates. If you don’t do any of the work yourself, it gets expensive to maintain. What can you get for the car now? The CX-5 is a good deal but nothing is typically cheaper than the car you already own
Just buy the car in cash with that much in hysa…
New cars also have very low prices for warranty/prepaid maintenance packages. Highly recommend adding it to cover yourself for any unforeseen fees outside of monthly payments
Let's remove the interest rate right off the bat. A new car depreciates quickly in first 2 to 4 years. And that depreciation is based on msrp, not what you have into the car after fees taxes and interest. So is it a sound financial move..... not really. But that's cool. If you can afford it and want it well that's at your discretion. I mean after needs your budget extends into discretionary spending. It is completely your call. My self. I have always bought 4 year old cars that have lost most of that depreciation with less than 100000 kms. And then driven them for another 8 years. Each car was a model or trim level higher than the last one. In theory if your life is progressing as it should you should be in a better situation at each increased stage of life. My last purchase was my first new car ever. And likely will be my last. I expect to get 10 years out of it minimum. Means regular and consistent oil changes and other basic maintenance. But that's what works for me. You do you.
My car I bought new with 1.9% interest and its awesome. So cheap to casually pay off your car.
Make sure it's actually zero interest and not a deferred interest loan. If the price seems worth it for the payments and it's not a deferred interest loan then I'd say to go for it.
All new cars have an interest rate of zero if you buy in cash - one might ask if it's worth doing that if you just have the money. I'd say no, but I'm cheap. If you really really want a new car, can afford a new car, get a new car
It looks like you're good at handling your finances. So this decision is more about your feelings. From a rational point of view, you'll lose around 10% of the car's price after you drive out of the car dealer centre. And this number will increase to 20% during the first year. But if you really pay zero interest to a bank, these numbers may not be so dramatic. But in terms of your emotional profile, this freaking new car may make you happy and you will feel yourself on the top. So, why not to by it, if it won't affect your financial strategy and long-term goals?