Hello all,

I've enjoyed reading through some very informative posts here at fitfreak. I ordered an 08 fit sport MT a month ago, and am anticipating having it in May. My first vehicle was an 83 honda civic wagon 5spd, so I'm really looking forward to having a zippy little car with decent cargo space again.

The trouble is, with the downturn of the US economy and all of the dire warnings about a recession, I worry sometimes about my decision to purchase a new vehicle. Buying a new car is the worst investment one can make, just buying and driving a car off the dealer's lot drops the value several thousand dollars. I've always owned cheaper cars, but made the decision to reserve a Fit because I enjoyed test-driving one and I like a lot about the car. But what do you all think? Is it worth it to take on more debt (I'm planning on setting aside 3-5k for a down payment) in the onset of a poor economy and a possible recession? I had considered an older Accord wagon, but they are impossible to find with lower mileage and manual transmissions. I'd looked at other wagon/hatch type cars, and mostly I was worried about reliability in an older model or cheaper brand.

These thoughts might just be early pangs of buyers' remorse, but I wanted to hear from everyone here. Is buying new worth the debt and monthly payments? Do the benefits of good mileage, cargo space, and reliability outweigh the higher insurance premiums and monthly payments? My question obviously will not seem like a big deal to some people here, who maybe lease or have always had a car payment, but this will be the first big debt other than student loans that I will take on in my life.

Your .02 would be greatly appreciated.

Thanks much!

-piper

 

You wont regret the Fit. Its a good buy when it comes to new cars in general. Its cheap, fuel efficent, and fun! You dont come about a car like that too often. The cost of ownership is extremly low!
It wouldnt be smart to buy a 50k$ truck that sucks gas, the Fit is the oppsite of that!

Tyler

 

It sounds to me like you've already decided what the right choice for you is.

Do you have a current car that runs fine? Are you looking at marriage/kids anytime soon that may not fit into your plan with your current car? As a worst case scenario you could always wait and save more for you down payment.

Personally, I think the Fit is a nice car. It has 4 doors and seats enough for a small family with storage room to boot. I average 36 mpg with a 5spd MT so that may be something to consider as well. Obviously the more you can do to stay out of debt the better, but sometimes you have to get into debt.... While are car isn't an "investment," it IS a decision that will effect you financially for years to come. Be wise and do what is best for YOU.

Good luck!

 

Kelmar,

yes, I already have $300 deposit down on the car, so I guess I'm pretty sure about my decision. However, I just wanted to hear from owners on this site.

I currently drive an 88 econoline van that I picked up for next to nothing (I do computer work on the side for a local used-car dealership). I'm involved pretty heavily in music and my band plays regularly, so it's nice to have the space to move gear. However, I have something of a guilty conscience driving a vehicle that is so horribly inefficient. I'm also moving to a larger city in a few months and need something reliable with better mileage to get around for interviews or commuting.

(Right now if the weather is ok I can bike to my day job. I usually try to minimize how much I drive my van.)


So after a test drive, I settled on reserving a Fit. I just worry sometimes about adding to the incredible debt on average that Americans as a country have.

But hell, I can't expect to take my van down to Austin and drive it around looking for a job or commuting.

-piper

 

Lol, enjoy the Fit! Do you have your heart set on a certain color?

 

I'm surprised you had to reserve/order a Fit. Is the inventory that low in your area?

 

Kelmar,

in a nostalgic attempt to be like my first Honda, I reserved a VBP Fit.

My first Honda was a great little car but sat for years unused before I started driving it and was never "as good as new" and had occasional problems when I drove it. I had to get rid of it when I left the country for a while, and I've missed it ever since.

Magnum,

All they have here on hand here are automatics. People in Kansas don't like to have to shift I suppose (manual transmission vehicles are fairly rare around here).

-piper

 

Everyone's financial situation is different, but nothing sounds alarming based on the facts you outlined. Depending on your driving patterns, I'd imagine you'll get a substantial discount on your payment every month in gas savings.

The investment depreciation portion of your worry also only comes into play if you plan on dumping the car in the near future. The longer you keep it, the better that scenario gets.

No worries man. You've picked a relatively cheap, reliable, versatile, and efficient vehicle that will hold value better than most. Can't really be too big a mistake.

 

Based on financial alone, if you plan on getting rid of the Fit in 3 - 4 years, buying new will cost more than buying a nice year old Fit by probably 20%. However, if you keep it til it 'dies' irretrieveably, lets say 100k miles, buying new will be less costly by 10% The one definite advantage of buying new is the warranty, which is in your name, not 'transferred'. Both rates and coverage may change to second owner.

 

I don't foresee getting rid of it after a few years. Isn't that the whole point of buying something like a Honda? I don't need and can't afford a new car every few years.

 

It all depends on what and when you need what you do.
For some its an unwise purchase for others the best decision they could make.
All cars loose money (old ones just not as quickly as new ones, but they dont last as long)
The Fit holds its value off the lot...very, VERY well. Even though the new Fit is around the corner...I dont believe the older on will fall off the map. Some have turned it around and sold it for above what they paid -the taxes registration/title and such. (maybe rare...but impressive none the less)

It didnt happen with the 7th gen civic after the 8th gen one. And there is a huge difference there!

Enjoy the Fit....errr if/when it arrives
And Welcome BTW (unless its redundant.....in which case hello again)

 

hey man, what part of kansas are you from? scholfield honda in wichita said they had some MTs if I remember right

but to stay on topic, I think that if you were really worried about a recession you may as well find an older car. personally I'm not worried about a recession, lol.

but honestly, like the other people have said, you'd be buying an economy car for well under $20,000.

first: it's a honda. it's going to last you to 2020.
second: it gets excellent gas mileage. driving 200 miles/week even if gas prices go up 50 cents you'll be paying less than $20/week in gas money.
third: your debt won't be heavy. split it up to 5 years and you're paying in the $200 range
fourth: it sounds like you've been out of college a few years, once you hit 25 and get married you can cut that insurance in half and then some.
lastly: the majority of people I've seen think the new generation of fits are ugly. you may end up with a car rising in value rather than depreciating.

I'd say enjoy your new fit!

 

It's all about your debt to income ratio. Without divulging into your finances, can you afford monthly payments of $235 to 275. Thats based on a down payment of $3 to 5K.

Also, how is your credit score? That will set the tone for your APR.

On another note, hows your present vehicle? Is it high maintenance?

 

Buy it before inflation makes the US dollar worthless.

Actually, that's kinda sad, my poor savings. (no cry icon?)


Seriously, I think getting a new car is a feel good thing. There is no real value to it other than knowing your the first owner of the car and that it makes you feel good. Whether the higher price is worth it, that's really up to you, no one can give you the "right" answer. What's your feel good price?

I got my Fit new as a present to myself after 5+ years of working after college. And boy did that feel good!!

 

Sounds just me...after researching for almost a year (couldn't do a test drive due to limited supply) I too, wanted a manual and since it was my first NEW car, I wanted the color I wanted and was unwilling to settle for anything less. I don't think you've made a wrong decision, but then I just might be biased!!! LOL
VBP Sport 5MT

 

drzenitram,

Scholfield does have some MTs, but if I'm buying a new car, I really don't want anyone else to test drive it or thrash it. Not to be silly, but I remember how hard the Mazda dealership drove their car when I test drove the 3 with them. By reserving one, I can have it set aside (I've already asked), no one abuses it, and I can put up with my current vehicle for another few months.

bluecivic107,

I make about 33k a year and have very few expenses (splitting living costs with others and the cost of living in Kansas is very low), I have no problem affording the payment or insurance. I checked my credit score a while ago, but I didn't have a credit card at the time (I've always used debit), and my credit was just based on my student loan payments and I didn't get a score that I can remember. My current vehicle needs about $600 of work, has no muffler, has a plexiglass window in the back that rattles at highway speeds, the front power windows quit working a while ago, the heater and defrost don't really work (nor does the A/C), I'm lucky to get 15 mpg, and it has troubles going into the wind or uphill. I look forward to getting rid of it.

However, if push came to shove, I could always live in it down by the river...

Thanks for all of your input!

-piper

 

There is not going to be a recession. IT is just a media thing to bring up in time for election season. Honestly there might be a recession if we talk ourselves into it, but even that is highly unlikely. Trust me my dad is a very conservative financial adviser, and a smart dude. It takes him a lot to get mad at fox news, but when they claim recession he gets rather irritated. Its just market fluctuations.

Buy your fit, you will not regret.

 

amen to the above post.

the u.s. economy is actually quite sound.

media bias and hysteria is at work. it's really quite disgusting and reprehensible.

most economists dont believe there will be any recession, and those who think it might happen, believe it will be short lived.

 

My wife and I also went back and forth on the "buying new" issue. My commute is 20 miles each way and the car I traded it in has very high maintenance costs (3.0 L v6 Dodge Stratus). If we bought used, we'd want a Toyota/Honda and you can end up spending 10k+ for something 3+ years old.

If you're confident you'll drive it a long time and you'll utilize the high gas mileage and storage, go for it.

Your credit score might be higher if you responsibly used credit cards. A low credit score can result from not having any credit history. If you want your current score, you can sign up at one of the appropriate websites (myfico.com) for a 30-day trial of their scorewatch program (just make sure to cancel with 30 days!). If you use annualcreditreport.com to get your free credit report, you can also buy your score for like $7.

 

Piper...

5-Speed Sport. Get it. Look at the used Fit's for sale - almost all of them you find are automatic. (Sorry auto folks.) As much as you are worried about economics - I think you'll regret the auto decision later on. The Fit is a small car - and I just think auto's and small cars aren't the best match.

The guys at the dealership are ragging out the Civic Si's - not the Fits. Don't worry about someone driving your 5-Speed before you get it...

I've moved into a Fit, and my wife is getting ready to as well (She's moving from an automatic accord to a manual Fit)- for the same reasons you are looking - it's a good bet for an unpredictable economy.

A good car is a must. The Fit is the most sensible new car driving on the roads today. Get it - take good care of it, and keep it for a long time.