Buying a vehicle in residency

We are in desperate need of a reliable vehicle. Right now we have a 1990 Dodge Grand Caravan that has seen beter days. It is good for around town but it is not reliable to travel at all. It has broken down on every trip longer that 5 hours! ANYWAY ... money is a big issue too being in residency so I was wondering if any of you have experience with getting good deals for cars. Is there any good physician deals out there and where do I find them? Russ joined some doctor's group for the sole purpose of their car program only to find that the sponsoring dealers are Lexus, BMW and Mercedes. Uhh .... Not quite what we are looking for! Any advice?

Robin

[Cumberland]

What do you think about leasing? We have a honda accord special edition with the works, that we pay 230 a month for, with option to buy at the end. we got it at a point when we were desperate for a car and had absolutely no money. it was either ask my dad for a loan, or do a lease where we had to put no money down. we put the registration and first month on the credit card. leasing is not my preference, but we have a safe and reliable car that we dont pay too horribly much for.

[DCJenn]

I'd recommend CarMax- they have newer 'used' cars and everyone that I know who has either sold their car to them or bought a car from them has been very pleased. Most car dealers don't require any money down, especially these days.

Jenn

I have looked at leasing but they all have a mileage cap of about 10,000 to 12,000 miles a year. I am afraid that we would go over that being that we are in Texas and all our family is out west. The main reason we need to get a newer minivan is because we can't afford to fly out to see everyone. SO ... this seems the best alternative.

Jenn - You are the third person to mention Carmax to me. I am on their website daily seeing if something new has come in. Thanks!!

Robin

[SueC]

They just opened a carmax in our city and I'm dyeing to go check it out. My husband is trying to keep me from going becuase I think he's worried I will get my heart set on something that I can't have since we absolutely cannot afford a new (used) car until he finishes. Good luck Robin! I'm sure great deals are out there if you know where to look!

[PrincessFiona]

cars

Oh Robin...Don't LEASE!

It was the only way that we could afford a car during residency and we ended up paying double what we would have paid for the car if we had just bought it. We had a 12,000 mile/year cap too....it sounds like a lot of money until you realize that just driving to the grocery store, taking the kids to school, etc can put 50 miles on your car. We only had that car and we were WAY over on the miles...We ended up having to buy it after the lease...and it was just a mess. I think leases work well for people who use the car less frequently and have a good 'slider' vehicle for the longer journeys. Besides the mileage issue...kids are so hard on cars....it was so much stress to worry about dirt from their shoes, etc.

Since Russ is military, I'd suggest going to USAA about a used car loan. We have USAA because my dad was career military and it has been a life saver. We didn't figure it out until we were almost done with fellowship and we wished that we had used them sooner. They offer great rates. It wouldn't hurt to call and see if you could qualify for a loan through them. Getting a loan through the car dealers is easier...but more expensive.

What a BUMMER.....Let us know what happens!

kris

Thanks for the confirmation Kris about leasing. I know we would put over 12,000 miles on a van. I am the chauffeur and soccer games alone have me traveling all over the place. San Antonio is so spread out that the mileage adds up quick.

Russ isn't military so we won't get the deals there. They offer some great rebates right now if you are military. Our credit union looks like they might have a pretty good loan program. We are looking into that.

Part of me is excited to get a newer vehicle. Our poor van looks like it has been through World War III. The paint is all chipping off thanks to the blistering hot Arizona temperatures for four years. It was dark blue but now it has lots of white all over it. It hasn't broke down since we have been in San Antonio and I am very grateful for that. It has almost 160,000 miles on it and we just can't trust it for a long trip of any sort. It was the top of the line at its time so it has lots of bells and whistles that we won't be able to afford on a new vehicle but we are ready for a change. As long as my job holds out, we should be okay. We are cutting back in other areas right now and it seems plausible at this point anyway.

Thanks for the comments.
Robin

Hey Robin,

I agree with Kris on this topic as well! A lease works for folks that drive short distances and turn the cars over in 3 year periods.

As far as loans, credit unions will work harder for your business and usually have a slightly better rate than a commercial bank (generally speaking).
I used to work in the auto industry on several different sides in a former life, so I have been on the each side of the coin! I haven't been to Carmax, as Sue said they did just open one here in KC, but I have only heard great things about them.

Good luck on the hunting!!

A dear friend of ours got her car through Carmax, and she's living on the very tight budget of a graduate student (even tighter than that of a resident!). Definitely worth checking out.

I also bought a car about 18 months ago (when my trust old Corolla finally bought the farm) by carefully combing the car ads in the newspaper and looking for places offering low interest loans on affordable new and used cars. I also scrupulously read Consumer Reports (well worth the small fee if you're looking to buy a car). I ended up with a nice, reasonably priced and safe car and a zero percent interest loan (!) for four years. If you do your research, you might have some similar luck.