The Dream Car That Took 30 Years to Get

My first car was a 1974 Datsun B210. I was fifteen years old and forked over the cash from a multilevel babysitting service that I launched three years earlier. My folks firmly believed that I should pay my own way and it developed a “cash only” sensibility when it came to buying cars. Of course, my baby brother, didn’t have to pay for his car, but THAT is another discussion for another day!  Fast forward a few years (ok, a LOTTA years) and I was able to buy a dream car with that same philosophy. Buying used was the smartest way for me to go—but today, buying used could cost you MORE than buying new in some cases!

 This time of the year is a great time for looking into getting a car. Dealers have the 2013 models rolling in and at the end of the month, some salesmen are eager to deal in order to try and win the “salesman of the month” with all the perks associated with that coveted title. But which models should you look for in a new vehicle instead of used?

The gap between a one–year-old car and a new one can range as much as 20%, meaning the car you paid $25,000 for last year is worth $20,000 this year. Unless you purchase a car model that closes that gap such as a Chevrolet Camaro LT, where a one year old car cost only $126 less than the average price paid for a new 2012! Plus, if you finance, you usually pay a higher interest rate for used car than a new one, so if you include these expenses, a used car can cost more overall than a new one. For example, at we found a $452 payment for a used, one year old Honda Odyssey minivan versus a $445 a month payment for a new one!

  Here’s the list of cars you should consider buying new according to the Kelly Blue Book:

   Vehicle                                     Price Difference                          Percentage

                                                                    Vs. new                             difference

Chevrolet Camaro LT                         $126                                                    0.5%

Toyota 4Runner SR5                          $254                                                    0.8%

Toyota FJ Cruiser                              $244                                                    0.9%

Subaru Impreza 2.0i                            $150                                                    0.9%

Jeep Wrangler Sport                           $281                                                    0.9%

Honda Fit                                            $234                                                    1.3%

VW Gold TDI 4 door                         $438                                                    1.4%

Kia Rio LX                                         $283                                                    2.1%

Mazda2 4 door                                   $306                                                    2.2%

Chevrolet Equinox LT                        $540                                                    2.2%

If the car you want doesn’t fit in this category, and you are going to buy used, then be doubly safe by ordering a car history from Carfax, AutoCheck and the Justice Department’s new database at in order to see if the car has been in a wreck or flood. But don’t stop there, take it for a thorough inspection by an independent mechanic because it’s almost impossible, in some cases to determine if that car is one of the 12% that ends up being a “salvage” car and some of these can end up on a dealers lot. If the used car is a CPO (Certified Previously Owned), then you should be safe.

      Also, whether you are buying new or used, be sure to come to the dealership armed with a printout version of the car’s evaluation/price according to and/or

Finally, be prepared to negotiate the price of the car in THREE separate steps:

1)    PRICE – Negotiate the price of the car without a trade. Tell them you are thinking of selling your existing car yourself, and get the rock bottom price on the car you want to purchase without the bait and switch tactic of a dealer offering you a padded price on your trade to get you to go for the deal.

2)    TRADE – Once you’re satisfied you’ve negotiated the best price WITHOUT a trade, then negotiate the value of your trade-in vehicle SEPARATE from the price of the car you want to buy.

3)    FINANCING – Check out your own financing through a credit union or other resources before you look at what the dealership has to offer. If you walk in as a “payment buyer” meaning you have to secure a certain monthly payment, then they will work with you to get that monthly payment, even if you end up paying a lot more for the car.

Let me know your tips on how you get a good deal on a vehicle, I’d love to hear from you!

Ellie Kay

America’s Family Financial Expert ®

©2016-2020 Ellie Kay


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