Automotive

Is it a good time to buy a car?

  • Last Updated:
  • Jul 7th, 2020 9:26 pm
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[OP]
Newbie
Jun 4, 2019
66 posts
67 upvotes

Is it a good time to buy a car?

Hello Everyone

With the coronavirus affecting the economy, i am wondering if it is a good time to buy a car. I am considered essential services hence I am not affected financially too much.
I assume prices of vehicles should go down but they actually are pretty steady compare to a few months ago(Both New and used vehicles).
Do you think I should wait longer?

I am in the market to look for a smallish SUV, something like the Subaru Crosstrek or Hyundai Kona. Currently, I am leaning towards the Kona Luxury or essential.
This vehicle is for my SO and i think Hyundai has a pretty good safety system for their car. This will be the second vehicle in the household.

Please let me know your thoughts.
132 replies
Deal Fanatic
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Apr 23, 2007
9828 posts
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Mississauga
Buy today, sign 0% @ 84 months. Best financial decision ever
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Deal Expert
Jan 15, 2006
15716 posts
13452 upvotes
Richmond Hill
XxXSnake23XxX wrote: Buy today, sign 0% @ 84 months. Best financial decision ever
Would be better if it was 96 months.
Sr. Member
Jan 28, 2017
732 posts
784 upvotes
Markham
So many threads asking the same thing. TLDR - manufacturers have halted assembly lines, dealer lots are full of inventory and no new vehicles going on dealer lots until assembly lines open back up.

Yes you prob have more wiggle room (0% interest, extra freebees thrown in, free maintenance) but dont expect firesale prices, especially on popular makes/models.

If financing/leasing, Kona will likely have better rates and incentives. As a 19 Crosstrek Sport owner, no major complaints, except that engines in this class are underpowered. I don't have Eyesight system so can't comment on first hand experience, but have heard good things about it.
Member
Dec 28, 2017
296 posts
110 upvotes
Burlington
Luxury brands seems to have more discount than economy brands .. Honda only have payment deferrals and Nissan only have 0 interest for 7 years.
Lexus have no interest payment deferral, 0 interest, and cash incentives

Also, easier to bargain price for all dealers
Member
User avatar
Jul 29, 2019
366 posts
247 upvotes
What bear20 said!

I also want to caution the temptation to finance/lease a vehicle for 84 months. It is always recommended that if you can, to finance/lease at a maximum of 5 years. 5 years is the ideal time period as you don't want to still be paying off the car when you start having to pay for maintenance. Typically cars would last 5 years with no issues but we do have more electronics and more sensors on the cars and those are costly to repair/replace. If you take a 7-year finance/lease, for example, by about 5 and a half years, you will owe more money than the car is actually worth. Also not just the maintenance after 5 years, but 7 years is a long time and you may want to change your car for whatever reason or you no longer need the car or you can no longer afford the car. So be very cautious with the 0% finance/lease for 84 months.
Deal Expert
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Oct 28, 2004
21501 posts
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Toronto
Things are looking bleak financially for a lot of people....

Thinking you might be able to score a good deal on leases that people are trying to get out of due to financial hardship and trying to conserve cash flow at the moment...especially if things drag on and economy doesn't open up soon...

Thinking decent deals if you keep your eyes open....but nothing like fire sales....

FS: Nothing at the moment
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[OP]
Newbie
Jun 4, 2019
66 posts
67 upvotes
Thanks everyone.
I was trying to contact car dealerships yesterday but a lot of them didnt' respond to me.
Hyundai Mississauga seems to be closed and Richmond hill didn't return my call.

I am going to talk to Subaru today and see what deal they can offer. Personally i still love Subaru(i drive a wrx and my family have had multiple subarus in the past) however in a bang for buck vehicle, i feel like Hyundai has done alot.

Thanks everyone ; i appreciate your advice.
Member
Feb 8, 2010
356 posts
289 upvotes
Malicium wrote:
I am going to talk to Subaru today and see what deal they can offer. Personally i still love Subaru(i drive a wrx and my family have had multiple subarus in the past) however in a bang for buck vehicle, i feel like Hyundai has done alot.

Thanks everyone ; i appreciate your advice.
Previous KIA owner here. I bought my Kia Optima from an out of town dealer at very deep discount in 2017.

If you get a Hyundai and plan to keep it for 5 years, get the mid-high-end trim. The motivation to buy a Hyundai/Kia is the amount of features for the dollar. Nobody shop a Hyundai/Kia for its reliability or re-sell value. Lower trims get lower quality interior, less features to enjoy and you will start to hate the decision very soon.

Call the dealerships, there might be a fully loaded showroom car with 400km on ODO meter, at crazy discount.

It is overall just the same crap as kia. Get whichever cheaper.
Deal Addict
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Mar 10, 2009
2409 posts
163 upvotes
Mississauga, ON
People are financing with 84 or 96 months? LOL interest at the end will be worth as much as the car Face With Tears Of Joy I know "0% finance" but there is some sort of profit for them at the end.

I personally think 60 or 72 months is the best if a person can afford the monthly payments.
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Apr 23, 2007
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win-star wrote:
I personally think 60 or 72 months is the best if a person can afford the monthly payments.
People sign for 72 months?!?!

I thought the unspoken "rule" was 48, max 60.
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Deal Fanatic
Jun 24, 2006
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XxXSnake23XxX wrote: People sign for 72 months?!?!

I thought "rule" was 48, max 60.
24-36 tops. Preferably 0 though.
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Apr 23, 2007
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Gutty96 wrote: 24-36 tops. Preferably 0 though.
well i think 0 is unattainable for 99% of canada... even those of us RFDers making 100k and own 1M home.
unless ur buying a 3K 1995 corolla or civic
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Deal Fanatic
Jun 24, 2006
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XxXSnake23XxX wrote: well i think 0 is unattainable for 99% of canada... even those of us RFDers making 100k and own 1M home.
unless ur buying a 3K 1995 corolla or civic
Agreed. Most people, by nature, are typically terrible with money, and making sound financial decisions.

I used to be, until my wife took over the major financial decisions.
Deal Addict
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Mar 8, 2006
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Richmond
XxXSnake23XxX wrote: People sign for 72 months?!?!

I thought the unspoken "rule" was 48, max 60.
Last time I checked, Tesla was even offering 96 months with decent rates!

The "rule" doesn't make sense. If you can afford the entire amount to begin with, and the interest rates are low, you should stretch out the loan for as long as possible. You can always do a lump sum payment anytime.

This frees up cash flow and you can leverage the money to more productive uses like investing. Of course, if you're the typical financially unintelligent person who only looks at the minimum payment to determine what to afford, then yes I guess you should pick a shorter loan term to limit your liability versus actually just figuring out what you can afford.
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Sep 1, 2004
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EP32k2 wrote: Would be better if it was 96 months.
120, do I hear 120?
ayufan wrote: Luxury brands seems to have more discount than economy brands .. Honda only have payment deferrals and Nissan only have 0 interest for 7 years.
Lexus have no interest payment deferral, 0 interest, and cash incentives

Also, easier to bargain price for all dealers
Acura/Audi/BMW/MB are all holding firm with nothing special other than typical spring discounts of year past. If anything, I think 2020 GLC deal is worse right now than Dec/Nov 2019.

And no, I'm leaving Caddy and Infiniti out of this, since they always put $10-$15K on the hood to move their products. Sounds like Lexus wants to join that club.
Last edited by Xtrema on May 6th, 2020 6:07 pm, edited 2 times in total.
Sr. Member
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Apr 15, 2014
965 posts
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Toronto, ON
At 0% financing I would go 50 years payment if I could. Deferring payments saves you in the end.
Please respond
Member
Sep 15, 2017
484 posts
470 upvotes
UrbanPoet wrote: Great time! I heard on RfD theres going to be 50% off sales on cars due to covid19.
Strange I read on here that cars were assets due to covid and would increase with price and age!
Deal Fanatic
Jun 24, 2006
9164 posts
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CardinalComb wrote: At 0% financing I would go 50 years payment if I could. Deferring payments saves you in the end.
Go on......

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