I'm in the market for a new car, and looking for suggestions based on your experiences. I'm looking to pay under 20k.
Right now, the top of my list is a Honda Civic. While it's a bit smaller than I'd prefer, the price isn't bad and the maintenance track-record is quite good. It was my mechanics top choice.
Others on my watch-list include (in no particular order):
Hundai Sonata
Nissan Sentra
Nissan Altima
Honda Accord
Ford Fusion
Honda Civic has also been the number one car for resale value for years.
If the civic isn't large enough I would consider the Sonata or Accord.
I like that you asked your mechanic, working on these things sure lets you see what's behind the marketing, good call.
As far as new vs. used I like to evaluate the deals.
When I bought my $50K Denali they offered .9% for 4 years on a year end deal sticker was $60K.
Earning 6% on my invested money means that $50K earns $3K per year or $13K over 4
The new loan will cost me $924 over 4 years
So I make a net $12K over the 4 year loan keeping my money invested
Payment is $1000
There was about $10K in price difference vs. a two year old version with about 30K miles. Used was $40K with a loan rate of 4%.
Still earning 6% on my $50K budget I get the same $13K over 4
The used loan $40K at 4% would cost me $3,350 over 4 years
So I make $9.7K over four years keeping my money invested.
Payment is $900
So for an extra hundred a month I can drive a two year newer car. I also earn an extra $3.3K on my investment so the real delta is $1500 over the 4 year term. For that $1500 I get the free maintenance, year of XM, newer tires, 3 years of full warranty, etc.
The new car was a better deal no question.
I guess I could have skipped all that and just said used cars are for suckers!
Excel is your friend when looking at cars. Make sure and check the used prices for residual as well.