Is it prudent to buy an American (or co-branded) vehicle right now?
Asked by
shilolo (
18085
)
November 18th, 2008
I am considering buying a second car for the growing family. I had a few wagons in mind, such as Subaru, Volvo, Audi and Saab. However, Volvo was acquired by Ford, and Saab by GM. Given the current climate of potential bankruptcy by the big 3 automakers (and their potential dealers and suppliers), should I forgo buying a car right now, or stick to more solvent companies like the German and Japanese carmakers? In the same vein, many of the American carmakers are slashing prices, so it might make for a great buying opportunity as they try to get rid of inventory.
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4 Answers
We just got a car. It is used….we got it for a song as it was a chevy product purchased from a chrysler dealer. In other words, it was a trade in for someone else….We didn’t worry about the auto industry crisis.
Here are some things to consider, that may or may not be relevant to your current situation.
If you are buying a new vehicle, you shouldn’t need any significant service on the vehicle for quite some time.
If you do need service or aren’t an oil change kinda guy…. hopefully you have a reliable mechanic that you know that could help you w/ any issues that you might have….
Consider how you are going to pay for the car. If you are going to lease or finance your vehicle, financing is tighter in the current economic climate.
If the above two issues aren’t a concern and you can afford to buy….you are in the driver’s seat. (sorry, I couldn’t help it….) Car dealers are getting desperate to sell right now, as there are so few buyers.
Bear in mind that American cars typically have lower resale values than foreign (non-econobox) competitors. You’ll likely get more money out of an Audi than a Saab down the road, and probably a better car anyway (Saabs have been lightly discredited for their “GM DNA”, as Car and Driver has put it). Compare the warranties and service track records as well, since you’re buying new.
Incentives are nice, but I always look at huge price cuts with a bit of skepticism. There’s a reason they’re having to try harder to sell you a car than their competitors are.
Imagine the growth of the money you will spend on a car if invested over time. A 30k car, = 225k over 20 yrs…..Volvo!
@Mizuki. I’m not sure I quite understand your answer. Are you suggesting not buying the car and investing it elsewhere in order to maximize returns? Sounds like sound financial advice, but seeing as how we really need a second car as both my wife and I work and have different schedules, this is not an option. Then you suggest a Volvo, which sounds great, but again, I’m not sure I follow your logic. Please explain.
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