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Discussion Starter · #1 ·
Here's my dilemma...

Acadia we want (Red Jewel, SLT-2, titanium inside, DVD, 7 seating, 19" wheels) is sitting 40 miles away. We test drove it. LOVE IT! Dealer still hasn't sold it. I'm pretty sure I could get invoice price ($38009) minus trade in of $4500, with $12,000 down. I could keep my payment low with a home equity loan.

OR...

I can wait until fall when we have a bigger downpayment, may have a crack at a used model or maybe some great 2008 model with rebates/incentives. Payment would be low in the fall, too because of the bigger downpayment ($18,000).

What would you do?

Is the home equity loan a bad idea? would it somehow reflect poorly on my credit report? We will pay off the loan in about 18 months, but I like the cushion of such a low payment for those "just in case" events.

Are my chances of buying a used Acadia with those specs pretty much nil? (live in nebraska).

I'm 7 months pregnant and would love to have new vehicle for the new baby, but am also thinking maybe I should wait...

Heather
 

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All depends on if your wheels you have now are going to roll for another few months.
 

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Discussion Starter · #3 ·
yes, most likely. 98 buick regal, GS. The last two months we've had $250 and $400 repairs on it, which is REALLY annoying. But it probably would make it to fall with no big trouble. I hate making car payments, haven't had one in 4 years and not looking forward to more... but that Acadia is just beautiful in every respect... :)
 

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Questions to ponder......

Maybe you'll find what you want months from now. Maybe not.
Maybe it will cost slightly less. Maybe not.
Are you willing to risk a breakdown in a vehicle that's already showing it's age with a child on board?
Or is it worth a little extra $$ to have what you want now, and already there for when you need it? ???

I've come to believe that certain conveniences in life have their price. And you can bet that I will go for the sure thing over a maybe any old day of the week. But honestly, that's just the way I am. I got this way from all the old vehicles I owned that cost me time after time for repairs while still having the uneasy feeling of "what will go wrong next"? Having kids in the car only made that feeling worse. If you can pull it off financially, I'd say you have all the right reasons to make a move now.

PS don't worry about the equity loan. It's not going to hurt your credit. You plan to repay in under 2 years. Trust me, if there is any one thing us bankers like most, it is being paid back ;D
 

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Hi Heather,

I live in Nebraska and have been watching inventories for the last 6 months. I think if you've found what you want, you should probably jump on it. Otherwise, if you are patient, go ahead and order an '08 and be prepared to wait 6-10 weeks. I think your chances of finding exactly what you want on a dealer's lot in a few months are very slim. These things have been moving fast around here and even the bigger dealers rarely have more than 3-4 units in stock at a given time.

As for me, I ordered an '08 after finding out that my '07 order went in too late.
 

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rysamem said:
How would a home equity loan keep your payment low vs. a conventional car loan?
I think she's justreferring to the fact that the deductability of the home eq loan makes it cheaper if the interest rates are similar. However to me , the flaw in the logic is the comments about payments being reasonable in the fall (even though the price may be higher) because there will be an extra $6k for the down payment later. If you buy the one you like now, at what you have deemed a reasonable payment, why not have both use of the car for the time being and the $6k in your pocket?
 

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Discussion Starter · #8 ·
actually the payments can be lower with the home equity loan because I can set it up for 15 yrs instead of 4-6 yrs. I still intend to pay it off quickly either way, but with the 15 yr loan i get a $200 car payment vs a $360 payment with an auto loan. I may pay slightly more interest over the course of the loan (like about $200), but i get the comfort of having tiny payments with the option to pay it down fast instead of bigger payments and paying it down fast.

It works for us. :) Not to mention the added tax benefit but it won't be a big benefit since the loan won't be huge and we'll have paid it off in 18 months or so.

we plan to keep the acadia for 7-10 years, so will it matter much whether i have a one yr older model when it comes time to sell? or will all its value be depreciated out anyway?

Heather
 

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Discussion Starter · #9 ·
another problem my hubby pointed out is that I love the thrill of the hunt. I love searching dealer lots and internet sites trying to find that perfect vehicle. After we found his new truck a few years ago I was so bummed the hunt was over I went looking for a new semi for him (we're farmers). I just love hunting...

BTW, we already have a 3 1/2 yr old, and fitting 2 car seats in the Regal will be a tight squeeze... am I talking myself out of it or into it? It seems crazy to let a hormonal pregnant woman make such a big decision... :)

Heather
 

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Three weeks ago I was facing a very similar dilemma as you. The Acadias were flying off the dealer lots here and choices were getting slimmer. I too spent much time on "the search" and debated whether to save up more for a downpayment to lower my monthly and possibly order an 08 or get something off the lot now. Ultimately I would have liked to have waited another 6mos to a year and buy a slightly used Acadia, but once I knew it was the only vehicle I wanted there was no way I was going to wait that long.

Luckily one came in that was close to what I was looking for and the pricing via the Costco program along with the current rebates made it too good to pass up. My feeling is that the advantages to ordering an 08 is that you get a newer year vehicle where the kinks have been worked out and you get exactly what you want. However, the disadvantages are that the pricing is till unknown and with its surging popularity I have a hard time believing GM will offer any incentives on it for a while. If the vehicle is close to what you are looking for and has been sitting for a while, at least go talk to the dealer and see if he's willing to give you invoice. If he won't give you even close to invoice it may make your decision much easier.
 

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Discussion Starter · #11 ·
azfun,
you're exactly right and that's exactly what I did. He'd give me $800 over invoice, no rebates that I qualify for right now. I think I could do a bit better, and your other points are totally valid... I'm not pleased with the wait in front of me, but maybe i'll get lucky with something on the lot in august (of course i'm due to deliver a :binky: in august so i may not want to car shop! ;D) and maybe there'll be another small rebate somehow.

it goes against everything i've ever said about buying a car if i get one right now. i'd be paying for brand new (i always bought used) still paying interest (my rule was 0% on new) no rebates (ack!) and paying more than invoice. The newness of the acadia contributes to all these factors, but if i can learn some patience perhaps a few of those issues will swing back my direction and i won't have to break so many personal rules.

I'm NOT a patient person...

Heather
 

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bhpeters said:
azfun,
you're exactly right and that's exactly what I did. He'd give me $800 over invoice, no rebates that I qualify for right now. I think I could do a bit better, and your other points are totally valid... I'm not pleased with the wait in front of me, but maybe i'll get lucky with something on the lot in august (of course i'm due to deliver a :binky: in august so i may not want to car shop! ;D) and maybe there'll be another small rebate somehow.

it goes against everything i've ever said about buying a car if i get one right now. i'd be paying for brand new (i always bought used) still paying interest (my rule was 0% on new) no rebates (ack!) and paying more than invoice. The newness of the acadia contributes to all these factors, but if i can learn some patience perhaps a few of those issues will swing back my direction and i won't have to break so many personal rules.

I'm NOT a patient person...

Heather
I understand where you are coming from, I haven't had a car payment in ten years and have always bought slightly used. Buying a new vehicle, especially one in its first year of production goes against my better judgement, but I did enough research to know that this was the best vehicle for me and my family. I waited three months and realized that if I didn't get one now I was most likely going to have to wait till the fall and there were no guarantees what was going to be available then.

If you really want that Red Acadia on the lot, go back and give the sales guy your best counter offer and tell him that you'll give him three days and that if he wants to sell it then give you a call, otherwise then you'll be ordering an 08 from the other dealer in town.
 

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Well there's always a risk of wear and tear, depreciation, and more repairs ($$$) on your current vehicle which in turn can lower your future trade-in value and increase the amount you pay to fix potential future problems on it. Also, you may not find exactly what you want a few months from now and if you order one then, it may be a few more months before you actually get it. Again, adding the above to your current vehicle. So it's really up to you.

If you can really get the $6000 extra by fall you could always load that up on your loan payments. I would just read the fine print carefully. Sometimes there are fees for paying off a loan too early.

Please keep us updated!
 
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