New car? (talk me down...maybe!) About This Page:

[graygables]

I have a 2003 Kia Sedona, or a "Clunker" according to the government (maybe I should sue them for stereotyping me by using a derogatory name to describe my choice of vehicles... OK, maybe not...) Anywho, it qualifies for the $4500 deal if I buy the car I like, a Kia Soul.

Here's the deal. Long story, I'm upside down in this car loan, even with the $4500. It was a bad decision made at a very bad time in my financial life and made out of sheer desperation. I just put $1200 into this one for cooling system repairs and tires. I could probably come up with the payoff, but it would be tight and there is no guarantee that I could get any decent financing at this point (bad time in a financial life less than 7 years ago and less than a year here and at my job). I currently get 15MPG, the Soul claims 28-30. The new car will have a warranty. The Sedona is making noises and has started acting up again, although there are no "idiot" lights as of yet.

Another plus is the IRS is allowing a deduction for sales tax paid on new cars this year without having to itemize.

If you could get decent financing and it might be tight getting the upside down part taken care of, would you buy the new car? I'm struggling turning down $4500 for this one as it's worth a LOT less.

[tkm1005]

I think it would come down to the monthly payment and the overall impact. Will you have a 5 year loan instead of just paying off one that has only 2 more years...that sort of thing. It would be a tough decision. While the mileage may be better and the car would be nicer getting yourself into possibly a longer loan period when you don't know what your employment will be 6 months from now would be a difficult consideration.

[wheatenwalker]

Given the uncertainity of employment after your internship, I would wait till you know where you'll be- if you get a ft permanent job I woud say go for it but you really dont know what will be your status in a few months-- and I am a 'what if' kind of person when it comes to purchases like that

[wvugrrrl]

I'd also ask how "dedicated," you are to owning another Kia. Is there a reason why you wouldn't look into, perhaps, a Honda, or Toyota in the same price/mileage range? The only reason I ask is because my dad is in the car business, and does everything he can to talk family, friends, (basically anyone who'll listen ) out of buying Kias, for the simple fact that you'll end up putting a lot more money into them than you'll ever get out of them.

I brought up the Honda/Toyota question because that's what he's always bought our family (and he works at a Dodge dealership). My Civic is 10 years old, and I've literally not had to put any money into it other than the necessary maintenance. My sister has a 5 year old Matrix that, likewise, has had no work done on it.

I'm not knocking Kias because I've never owned one - I'm just trying to stop you from falling into another money pit!

[Minnie Lor]

I'm kinda with Molly on this. I don't know anything about a Kia. I have a '99 Chevy Lumina that hasn't given me any trouble other than replacing batteries every 4 years. My SIL has one and DH late-grandma had one - both late models. No problem's with them. (I know the family the bought Grandma's car) So my point is that maybe Kia doesn't hold up too well.

[tkm1005]

I'm not a Kia fan either. But I do love Honda - they last forever. Also, I don't know if you are going to the Kia dealership off of 192 in Kissimmee, but we once looked at cars there when they had "such a deal" and they were the snarkiest car dealers I have ever come across. They might be better now, but it definitely left a bad impression of Kia's in general.

[jimmymac]

I'd vote for a Honda Civic hybrid

[Huntermom]

I would not buy a new car with such an uncertain future. Car buying should not be an impulse purchase. Also if you are really concerned about getting the best buy for your money, think about buying a used car. Cars lose most of their value early on. You said your current car was a bad purchase made out of sheer desperation. Make sure you don't end up doing it again.

I think you also need to think about the impact the monthly payments will have. Will you end up owning another car upside down? Is is possible to pay eventually pay off you current car and go a few years without payments.

You can buy a decent used Honda, Toyota or other good Japanese car with 100K miles and easily expect to get another 100K miles on it with only maintenance repairs. And most of these cars are well under $5K.

My son is driving my 1994 Camry Wagon with 230+K. It runs extremely well, started reliably for all the long and cold northern New England winter, and drives very nicely. I did put almost $700. into a new timing belt/water pump but it had not previously been replaced. I was distraught when my 1997 Corolla was hit and totaled by the other driver's insurance. Sure it had 220K, but it had been well maintained and ran well. too.

I would also check and see why you only get 15 miles to the gallon. Even the old Camry wagon gets close to double that. Are your tires properly inflated? Is everything properly set? Clean filters, etc.?

Also I know you've mentioned pulling a trailer. Will you be able to do that with the Soul?

Diane

[graygables]

Here was part of my thought process (and thanks for all the food for thought!). ~I've been happy with my Kia so far. We've had a few repair issues, but nothing unexpected with hauling a cargo trailer and nearly 90,000 miles. Our dealer back home was great for warranty repairs and even covered quite a bit post-warranty. Don't know about the dealer here...have an appointment to meet them on Wednesday.
~The idea of the longer warranty appeals to me.
~The $4500 from the gov't is ONLY good for the purchase of a NEW car and a new Honda/Toyota would be pretty far out of my range. My van is not in the best condition (slight hail damage, door dings, salt rust underneath) and it's resale value isn't nearly $4500.
~The payment would most likely be pretty close to what it is now, so no big stretch, but would extend my payments by another 2-3 years
~My mechanic can't figure out why the mileage is so bad. Everything seems to be in good order, tires are new and inflated properly, air/oil filters new, fresh, etc. He's as baffled as I am.
~I don't need to pull the trailer anymore for business, since it's done. If I wind up staying here, I won't need to pull it at all. Right now, it's our storeroom, but if I stay at WDW, I plan to find a different home, so I will most likely sell it and the stuff in it will go elsewhere. If I don't stay, I'd probably still sell the trailer and rent a u-haul to go back.
~Doing the math, I'd save about $25-$30/mo in gas which isn't all that significant in the scheme of things.
~I still need a "wagon" or something bigger than a sedan. I'm not a sedan kinda person.

Still thinking, but leaning toward sucking it up and sticking with my "clunker" until I absolutely have to get rid of it. With my luck, though, it will be the week AFTER the gov't money runs out and I'll lose at least a couple thousand $$ there...

[Huntermom]

Dawn,

Have you tried using mid grade gas? It really does make a difference in the milage I get in my cars, especially my 6 cylinder. My DS1 spent part of his summer associate position in Energy Regulation, and based on his knowlege of gas regulation and price, he said it is actually be best gas to buy.

Good luck.

Diane

[eff051102]

I would stick with your car until you know what is going to happen with your
Disney future. Once you know then you can make a better choice and not be
desperate at the time. Also since you won't be pulling the trailer I would go
with a smaller vehicle. I know you like your larger ones but gas mileage is
so much better with the smaller cars/wagons.

I own an SUV so I'm not that concerned with gas mileage but I used to be
and drove a smaller Hyundai. Going certified used is a great option to get
out from under the upside down financing. I had to do this and I'm so glad
I did. Once it was over (after college) I felt so much better when I bought
my SUV.

[JoanW]

I have a friend that just tried to get the $4500 deal by trading in his Chrysler Town and Country 2003, and it did not qualify for the government deal. Make sure your car would qualify too before you make and decisions.

[elisa1006]

We have a 2005 Kia Optima. The resale value sucks! We have almost traded it in for another kia before with the deals they offer, but then we really don't want to be so upside down with something that doesn't hold its value. - This is our reason for not getting another kia.

BUT I'd be tempted in your situation. With the high mileage, it not being worth $4500, being able to claim the sales tax, your note not really going up much, saving on gas... I think I may be the only person to say go for it.

Good luck in your decision.

[HiddenMickey]

Don't do it. Be strong. Keep going as you are. Pay off the current car when you can and be done with car payments for awhile. Run it into the ground if you have to....meanwhile saving for your next car several years down the road.

FYI: My Honda Odyssey gets 17mpg when it was supposed to get more than that. I was not happy with that since my old van (Oldsmobile Silhoutte) got 21mpg. Their stickers had the exact same mileage estimate on them. Ha. I won't be swayed by mileage estimate on cars in the future.

[CRCrazy]

Just an FYI - the "Cash for Clunkers" program doesn't give the money based on YOUR mileage, but the combined average mileage for that particular model/year. And, yes, the 2003 Kia Sedona shows a combined mileage of 16 mpg. So - your van is definitely eligible.

I can't help you with your decision to replace or not - but I did want to put my two cents in as far as replacement vehicles. I totally agree with Molly - you don't really want to commit to another Kia - their reliability is not good.

Also - the Soul is REALLY small - and you do a lot of cross-country driving. I drive a Pontiac Vibe (twin to the Toyota Matrix - in fact it IS a Toyota engine, etc.) Although it's a small car - it's amazingly roomy on the inside. The seats fold flat, with molded not carpeted backs - so you get an amazing amount of room for cargo that is easily cleaned - and you can comfortably fit 4-5 adults. My Vibe is a 2005 (I think) but it's got 90,000 miles on it - and other than a couple of O2 sensors the first three months I owned the car (till they finally fixed it correctly - at their expense) I have done NOTHING but routine maintenance. No engine troubles of any kind, no exhaust, no brake troubles other than replacement pads. It's been a dream! The difference in price isn't significant enough between the Kia and a similar sized Honda or Toyota to make up for the difference in operating costs and resale/trade value.

You should take a hard look at your finances, and your needs - and do all the calculations - and then make your decisions.

Tough choices - but then again - the big ones usually are.