We did it, we bought the 2011 Ford Escape!
it will take a few days before we can pick it up - but here's a stolen internet picture.
For those who missed it, we made the decision before my scrap heap of a vehicle could make the decision for us. Being able to take advantage of the Retire Your Ride program in Canada, was a big incentive. My car has needed several hundred dollars worth of repairs every couple of months for quite a while now - with no end insight (burning oil, cracked windsheild, steering problems ect).
We wanted to find a vehicle that would work for us now and for the next ten plus years. With that in mind, as well as Jordan's access to X Plan pricing through work and the above mentioned Retire Your Ride Program - we decided to go with Ford.
The escape seemed to fit well with our lifestyle now and what we forcast in the future - I'm sure you know though, that there are sooo many different options. I won't go through them (you know what they are if you're interested) but I will tell you what we chose:
Ours is the XLT 4WD 3.0L (V6). Notable features include:
- Installed winter tire package (as well as standard seasonals)
- Ford Sync
- SIRIUS Satellite Radio w/ 6 month paid subscription (Jordan can have my current radio)
- Canadian Winter Package
- Leather interior
- Heated Seats
- 6 way driver seat adjustment
So, on to the good stuff - how much are we paying?
Through incentives and negotiations we carved off $7,186.76 from the MSRP. The breakdown:
- $1686.76 (from x plan)
- $3,500 from extended term financing
- $2,000 from retire your ride program
....and so maybe everyone gets that good of a deal - but we feel pretty good about it.
We're looking at an interest rate of about 6.99% (though the finance guy is looking to get that down today). Paid over 84 months our bi-weekly payment will be $189.88.
What we are losing (1.99% interest rate) in going extended term is worth about $2,200 in additional interest expenditure - though we are gaining an upfront discount of $3,500. Our solution? Make an additional payment of about the same amount within the first year of financing, and we'll get the term down. We'll continue to make additional payments as the opportunity arises. As the loan is open ended, we can pay it off any time without penalty.
I am shocked that you would buy a brand new car. I recently needed to replace my car because the engine died and would have cost over $3000 to fix my 1999 Cavalier. I did a lot of research and test-driving. There are incredible deals out there. I was looking at a Nissan Versa Hatchback. A 2011 sells for between $13,520 - $16,900.
ReplyDeleteAt one dealership, a 2010 Nissan Versa Hatchback with less than 1000 km on it (was part of a deal that fell through) was selling for $11 995. That is an 11% different off the base model.
PLUS, on a used car, you do not need to pay the freight fees, you pay less taxes, and you still get all the benefits of a new car including warranties, financing, and the Retire Your Ride program.
Also, on a used car, you never pay for the asking price, you can bargain down. On a new car, you really cannot.
Did you look at 2010 models?
Did you look at used cars with warranties?
Wow, you basically made it 3 months without debt.
ReplyDeleteI can't seem to type this without sounding snarky but I genuinely hope you are happy with your decision going forward. I will say that your current sidebars would be really depressing to me.
Congrats on your new Escape!
ReplyDeleteMy 2010 was around $23K plus taxes (although I didn't have the sync or the winter package - I have the same engine but a lower trim level). I looked around and my local dealership was selling a 2008 with 60,000 kms on it for $20K. I figured the extra $3-4 was worth it for 60,000 kms worth of driving. Plus I had the added insurance of a warranty.
I hope you enjoy it!
I can see from the above that not everyone is happy with your choice, but in the end it's your choice and if you're happy, then who cares?! You've done a lot of thinking and talking about this and have made the best decision for you two. Enjoy your new ride!
ReplyDeleteI'm glad you'll have a safe ride when you come home now. No more midnight tows!
ReplyDeleteI don't want to criticize, but I don't really understand this decision. I think there definitely comes a point where an older car no longer makes sense - both financially and safety-wise.
ReplyDeleteBut, you've just committed to these payments for the next 7 years. Yes, its an open loan, but lets be realistic....other things always come up. I have been keeping an eye on the car market since my older vehicle may give up the ghost at some point, but I can't imagine spreading the payments out that way. Still making payments when the vehicle starts needing repairs just doesn't appeal to me, I guess.
Joining the small choir who are wondering why you chose to buy a 2011, when new vehicles lose an average of 20% of their value the instant they are driven away from the dealership. When coupled to the average yearly depreciation of 7% to 12%, your first year's loss is anywhere from 25% to 35%.
ReplyDeleteI understand the need to replace your aging car, but as others have asked in previous posts - why not explore the possibility of buying used? I bought my last vehicle when it was just shy of 3 years old, and still on warranty. I saved over $15,000, and I've never been sorry.
While I hope you're happy with your decision, I don't understand it. From where I'm sitting, it looks like throwing money away.