Tips on Buying Cars: 2008 Honda Civic Sedan Si, honda civic sedan si, 2008 honda civic

Question

Hello,

I thank those of you who helped me make a decision. I am leaning hard towards the Si. I would now like to hear what you experts think about buying the car…

I am writing from Canada. The MSRP of the 2008 Honda Civic Sedan Si here is $26,680. This is
the first new car I will be purchasing and I would like to get the best
deal possible.

For 0 down, 2.9% interest rate, 48 month lease, each payment would be
$409.48.

To finance, also 0 down and 2.9% interest rate, 60 month term, each
monthly payment is $575.75.

I should mention that I'm 20 years old and I'll probably want a new car
in 4 years; however, I might just as well keep it for 6 or 7 years.
It's difficult to make that kind of prediction so far in advance because
there are so many variables involved. In any case, my primary concern
is to get the best deal on this car, regardless of how I finance it.

So I have two questions:

1. Based on these numbers and the little information you know about me,
do you think I should lease or finance?

2. What price do you believe I should be aiming for? Any additional
tips on negotiating? Any advice in this area would be greatly appreciated.

Thanks,
Jamie


Answer
Jamie,
Let me start by suggesting you buy a cheaper used vehicle at your age. No need to be over 20 grand in debt on a car that will lose a lot of value simply by driving it off the lot. You would be MUCH better off buying a cheap car with cash.. or at the very most - financing a 10,000 dollar or so car and paying it off ASAP. (the 2000 civic Si - just so you know - featured a more advanced suspension than the new one has, and the rev happy engine is awesome) - (you should also be able to find used WRX's for ~10-12k).

Now that i've spoken my opinion on that (trust me, I was 18 when i had a similar choice, let me say.. I still have the car I paid cash for... while my friends still owe money on the car they bought new before college... and they owe way more than the car is worth - no payment rocks)

If you simply must have a new car.

Leasing is useless unless you just have money to throw around into a long term car rental. You never earn any equity on the car - you are simply paying to use it - so you spend 300-500 a month to rent a car you will never own. (thus, you can't ever sell it.. and you never get any money back... ever...)

I also wonder if you made a typo? your 60 month lease should have smaller payments than the 48 month one....

As for negotiating, read this:
Http://thestealership.com/newcarguide1.html

That is a nice complete guide to buying a new car... with a lot of time spent on haggling.

Hope this help! (PS. if you decide to consider my advice on a cheaper used car.. i can give you a good run-down on sporty cars that would fit in that price range - just reply if you wish)