How do I know if I should purchase a new 2013 or 2014 vehicle?
This is always an interesting question that people ask at year-end as there are incentives to buy the new year-end models, sometimes competing with incentive to buy the new models as they hit the lots. It some cases it is a personal decision. At Jaffarian Volvo Toyota Scion, our sales consultants are here to help you make that decision—without any pressure.
Our goal is to help you make the decision that makes the best financial decision for you. We depend on word-of-mouth recommendations and we want to turn your purchase into a relationship. We understand you want the best deal possible, and we will do what we can to work with you to get you into the right vehicle for your needs and your budget. TrueCar.com predicts strong end-of-year sales on 2013 models with an increase of 6.3% and we’d love the opportunity to earn your business.
When comparing new 2013 vs. 2014 vehicles, of any make and model, compare the following:
• Incentives and rebates, if any, on both model years may help you save a lot of money.
• Know what is included in terms of service and warranties. For example, Jaffarian Volvo offers our unmatched “High 5” plan with a -year, 50,000-mile warranty. If you buy a 2014 Volvo, the manufacturer offers a $0 down, sign and drive deal.
• Interest rates—for example a new Toyota Corolla is 1.9% APR for 60 months; 24-month leases start at $109 per month and 36-month leases start at $149 per month. There are 0% A.P.R. deals available on the 2014 Toyota Camry and 2013 Prius.
• Look at close-out prices on 2013 models and see what the dealership will do for you since we’re all trying to move the 2013s off the lot.
• Keep in mind the depreciation rate on a new vehicle, especially the first year. As you drive your new vehicle out of the lot, it depreciates as much as 20-30% the first year only. After that it depreciates only about 15% per year. That is actually the largest vehicle cost, especially the first year. AAA estimates that the average new vehicle depreciates $3392 in the first year.
• Know that some manufacturers, like Toyota, offer special rates or incentives for someone who graduated within the last two years, veterans, active military and households that already own a Toyota.
• Come in with a budget in mind. At Jaffarian, our commitment is to help get you in the right vehicle for your budget. Know how much cash you have available to put down and whether or not you want to trade-in your current vehicle. Know what is comfortable for your monthly payment. If you need help, Toyota’s website has a Financial Tools section to help you determine your budget.
• Know how many miles your drive per year. That is important is helping to determine whether you should buy or lease. Ask your sales consultant to price out the vehicle both ways if you’re uncertain as to whether you should buy or lease. Buying generally works better than leasing for high-mileage drivers. Leasing generally suits people who drive lower mileage and/or want a new car every two or three years. Please watch this You Tube video to help make an informed decision about leasing vs. buying.
• Feel free to shop the models on line. We expect you to do your homework prior to coming into the showroom. But keep in mind that price isn’t everything—especially the advertised price. The reputation of the dealer and the service department are also important. (Jaffarian wouldn’t be in business for 75 years if we didn’t have a great reputation in the community and among our customers!)
Let your sales consultant and manager work for you, and with you. If you feel pressured or don’t understand the numbers, or you don’t feel you’re taken seriously, then it is not the right dealership for you. Come visit us at Jaffarian Volvo Toyota Scion and you’ll experience the difference. That’s why I always say: “You have a friend in the car business.” The red phones in the dealership are a direct line to my cell phone. If you need me, pick it and call me. I’m here to help and advise you, as is our sale team.
Be safe out on the roads this week.