Story Highlights:
As some of you may know, I love cars.
As a kid, I subscribed to Motor Trend and Car and Driver magazines. Each month, I looked forward to reading the famous head-to-head car reviews.
To this day, I love going to car shows and keeping up on the latest designs and innovations in the auto industry.
And its one reason Ive always owned my own cars.
I prefer financing over leasing, because once a car is paid off, its yours to do with as you please. You can drive it for years with no monthly payment (except for maintenance costs), sell it at any time or trade it in for another vehicle when the time is right. In short, its an asset.
Also, there are no restrictions on the number of miles you can drive. Plus, you can modify the car to your liking.
Now, there are good arguments for leasing a vehicle, and Ill get to them later. But if youre like me and you prefer to purchase your own car, the upcoming Labor Day weekend provides an ideal opportunity to do so.
In fact, if youre in the market for a new car, this year may prove to be the most cost-effective time to buy than any other decade.
According to a recent CNBC report, car dealerships are overrun with cars from not just 2019, but also 2018.
According to J.D. Power: A full 3.5% of all Julys new car sales were 2018 model years. That means roughly 49,000 of the 1.4 million new cars sold in the U.S. in July were last years models.
Its the highest percentage of older models of new cars since 2005 when J.D. Power first started collecting data. The percentage of new 2017 models that sold last July was 2.5%.
And there may be another 30,000 cars from 2018 still waiting to be sold.
The reason: Car dealerships need to make room for brand-new 2020 models, but these older models are clogging up available space.
So that means you can save potentially thousands of dollars on a 2018 model. Ive seen firsthand how bargains like this can be had
One of my family members was in the market for a new car and visited a dealer on Labor Day. They were able to get $7,000 off the sticker price of a current-year model.
So, if youre in the market for a new ride and hoping to capture a great deal, dont let this weekend pass you by.
Youll have multiple factors working in your favor, including the fact that the average interest rates for new car loans have now hit their lowest point of 2019, according to Consumer Affairs.
Even though Im hyperfocused on technology and innovation as investment research director here at Bold Profits, I still get a thrill from visiting dealerships and negotiating good deals on a car purchase.
Apparently, Im not alone. Per CNET, a recent study by Urban Science surveyed 2,000 car shoppers and 200 dealerships and found Generation Z and young Millennials go to 3.8 dealers on average when looking for a car.
So, if youre in the market for a new car, here are my quick takes on the advantages and disadvantages of buying or leasing a vehicle:
If you are considering financing a car, one of the first things to do is calculate the true cost of owning the vehicle. Edmunds.com offers a helpful tool that allows users to research the true cost of owning any late-model vehicle.
In addition, Kelley Blue Book has published its 2019 5-Year Cost to Own Awards list. This well-researched article highlights the best brands and category winners for 2019.
Purchasing a vehicle can be a significant financial life event.
The experience can be exciting and memorable. I wish you all the best with your future car purchases and a happy Labor Day weekend!
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