Sunday, February 26, 2012

When is the best time to buy a car for saving my money (Toyota clearance model 2007)?

As you know rigth now some dealer off price up to couple thousand dollars for each model year 2007 for Toyota. I dodn't know buy model 07 during this year or wait until next year. Which one I can save my money when I buy a car model 07?When is the best time to buy a car for saving my money (Toyota clearance model 2007)?Here is the Issue. That 2007 depreciates at a rate of 2% of List price a month from introduction (usually october) so if the car lists for 25,000 its value is dropping about $500 a month. It is now August. So unless you can get about $6000 off list it is not a good deal. In todays market unless you like wasting money I would buy a 2-3 year old Camery like program car or a off lease unit. Let some one else pay for all that depreciation a car goes through in the first 2 years. If your hell bent on having a new car get a one when they first come out in the fall and don't buy a left over you never really get that great a deal on a left over and the selection is limited. Also do not get financing more the 48 months 60 at the most. If you follow these rules you will never be in a position to have a car worth less then your payoff. This, in the industry, is called being "UP-Side Down" in the car. Here is a senario I have seen time and time again. You go to a dealer, you think you have such a great deal, you got a loan for (0) down. You have a real low payment for 72 months or (6) years. In two years you have an accident and total the car not even your fault. Could be hit while its parked or even stolen. The insurance company gives you NADA retail for the car. One major problem. The lending company will not turn over ownership to the car to the insurance company untill you pay off the difference on the loan. Many times this difference is thousands of dolllars. Now you have no car and still have a loan to pay. DO NOT GET A EXTENDED TERM LOAN, GET A CHEAPER CAR. Your car payment should not be any more then 1/2 of one weeks NET pay. So if your making 500 a week your payment should not be anymore then about $220 a month. Also your payment should be a minimum of what the car actually depreciates per month plus the loan interest. Most Toyotas, Honda's and some Nissans depreciate 1.78% of list a month most other foreign cars its 2.25% and american cars are 2.5-2.78% of list a month. So if you buy a $25,000 camery with (0) down your payment should not be less then $500 a month. If you buy a $40,000 Caddy with (0) down the payment should be no less then $1100 a month. If you can't afford those numbers then you should be buying a cheaper car. Naturally if you put money down then the numbers drop as well. Take the $$ down divide it by the loan term and subtract that number from my monthly payment guidelines. If have further questions on this feel free to contact me direct.When is the best time to buy a car for saving my money (Toyota clearance model 2007)?The end of each month is a good time to buy a car because many of the lots want to get rid of their inventory. Also just before Christmas or the beginning of a new year.



Just before Christmas is slow, and the beginning of the year the new models are coming out and they want to get rid of the older ones. Pick Fridays to set up a deal on a car you may be interested in.



Fridays are usually good days for most because of the weekend coming up. Even though car salesmen work hard and on commission and most weekends they still go out for drinks and have a good time ... so pick that Friday if you can.

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