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rated:
My husband and I are thinking of buying a new car, we only have one as of now and we have 3 kids who we bring to school everyday. It's really a problem for my husband since he has to adjust his time so he could drop the kids to school before going to work. We decided to get another car (a mommy car) that i could use to bring the kids to school and pick them up afterwards.we will be applying for a car loan and a friend informed us that credit unions offer lower rates than traditional banks. Is this true? Would it be more practical if we would apply for an auto loan in a credit union rather than a bank? Anybody here knows the requirements we need to be a member of a credit union?

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I test drove one when i was looking at a larger car for fitting two child-seats, and it was a lot smaller than I expecte... (more)

arch8ngel (Oct. 05, 2016 @ 12:39p) |

With 3 kids, it makes sense to have a removable 3rd row. That way, when them and their friends need to go somewhere, one... (more)

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It is true the maintenance records of the used cars are not usually complete and it is a big unknown about how the previ... (more)

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rated:
Do credit unions offer lower rates then banks? Uh...maybe. A big question is where you plan to buy the mommy car from, a dealership or private sale? If it's at a dealership, the indirect financing they offer can potentially be a better deal than the retail bank or the credit union. Overall, if I were you, because you are able to make it work with one car (even though it's a bit of a pain in the ass) and the majority of the new car's use is going to be running errands around town, I'd look for a cheap used vehicle, especially if you can pay cash for a $5,000-$7,000 vehicle. Don't buy a $40,000 minivan to drive kids to school and back or something equally silly.

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natosbourne said:   ...we will be applying for a car loan and a friend informed us that credit unions offer lower rates than traditional banks. Is this true? Would it be more practical if we would apply for an auto loan in a credit union rather than a bank? Anybody here knows the requirements we need to be a member of a credit union?
  Some credit unions have better loan terms than big banks but not all. We're members of 3 credit unions and one of them has pretty poor rates that are similar or worse than our main bank. So it'd pay to know exactly what rates the credit unions you consider applying to offer for auto loans. As for requirements, credit unions vary a lot on who is eligible. For some, you just have to live nearby, for some you need to be part of some professional or religious group (say be in the military or a member of some parish). There's no hard and fast rule. One requirement most credit unions have is to buy a share which is usually $5-25 as a one-time membership fee (bit like a stock of a company). You could search on the Credit Union Locator from NCUA to find out what's available near you.

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rufflesinc said:   
mwa423 said:   D I'd look for a cheap used vehicle, especially if you can pay cash for a $5,000-$7,000 vehicle. Don't buy a $40,000 minivan to drive kids to school and back or something equally silly.
  please post some 7k mommy vehicles!!

  There are tons of smaller used SUV's or minivans in this price range with right around 100K miles (or a few less). 

rated:
I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.

rated:
I'd buy a 3 row SUV over a 40K minivan to save money

or if you must have a minivan
then this:
http://www.mbvans.com/sprinter/commercial-vans/metris-passenger-...

rated:
jaytrader said:   I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.
 

  I realize that's true, but OP is clearly someone not well versed in personal finance if they are asking basic questions. Which means they likely haven't given much thought to the implications of buying the new car, or doesn't know the availability of used cars and how much money they could save.

Posts that suggest buying a used car are beneficial - while most people (maybe OP included) will just take whatever answer they want to hear, others may come across this, read the rest of the thread, and end up buying a reliable used car instead, setting themselves up to save $30k over the next 5 years.

If OP had said "I have plenty of cash, have done the new vs. used comparison, and I am looking to buy a new Sienna or a new Grand Caravan, which one do you recommend", then yes - the buy used comments would be senseless.

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needhelpplease said:   I'd buy a 3 row SUV over a 40K minivan to save money

or if you must have a minivan
then this:
http://www.mbvans.com/sprinter/commercial-vans/metris-passenger-...

  huh, you wouldn't think a M-B van would be 32k when their c-class is 40k and cla is 32k

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rufflesinc said:   
vnuts21 said:   
jaytrader said:   I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.
  I realize that's true, but OP is clearly someone not well versed in personal finance if they are asking basic questions. Which means they likely haven't given much thought to the implications of buying the new car, or doesn't know the availability of used cars and how much money they could save.

Posts that suggest buying a used car are beneficial - while most people (maybe OP included) will just take whatever answer they want to hear, others may come across this, read the rest of the thread, and end up buying a reliable used car instead, setting themselves up to save $30k over the next 5 years.

 

  lol "reliable used car" smh, 100k miles is not "reliable".   with the discounts and rebates and zero/low rates on new cars, the only thing one should ever buy used is real estate.

On the contrary, 100k is reliable. There are plenty of cars people buy brand new that don't even make it to 50k /////////////////

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rufflesinc said:   
natosbourne said:    we have 3 kids who we bring to school everyday. 
  whom, you bring to school. whom.

  There is no official language of FW, nor is there one of the USA. Perhaps the OP's first language isn't English. Perhaps the OP just made a mistake. Or perhaps the OP just doesn't know the correct word in this case. We all know what she meant. I also don't think your comma was necessary. And you dropped a couple capital Ws.

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jaytrader said:   I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.
  I love it too. Especially when I was new here and didn't realize a lot of things that people posting these types of questions might not realize. OP is looking to maybe save a few hundred on interest. I don't think it's crazy to suggest a way to save possibly tens of thousands. 

rated:
BingBlangBlaow said:   
jaytrader said:   I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.
  I love it too. Especially when I was new here and didn't realize a lot of things that people posting these types of questions might not realize. OP is looking to maybe save a few hundred on interest. I don't think it's crazy to suggest a way to save possibly tens of thousands. 

  Then direct OP to the thread on negotiating for new car purchase. Used is apple n oranges

rated:
rufflesinc said:   
MrSamsung said:   
rufflesinc said:   
vnuts21 said:   
jaytrader said:   I love how every new car thread on FWF ends up with someone telling the OP to buy a used vehicle. The OP's question wasn't, "should we buy new or used?" It was simply asking where to find the best rate between a bank and a CU.
  I realize that's true, but OP is clearly someone not well versed in personal finance if they are asking basic questions. Which means they likely haven't given much thought to the implications of buying the new car, or doesn't know the availability of used cars and how much money they could save.

Posts that suggest buying a used car are beneficial - while most people (maybe OP included) will just take whatever answer they want to hear, others may come across this, read the rest of the thread, and end up buying a reliable used car instead, setting themselves up to save $30k over the next 5 years.

 

  lol "reliable used car" smh, 100k miles is not "reliable".   with the discounts and rebates and zero/low rates on new cars, the only thing one should ever buy used is real estate.

On the contrary, 100k is reliable. There are plenty of cars people buy brand new that don't even make it to 50k /////////////////

  How do you make the logical jump from "a lot of brand new cars don't make it to 50k" to "a car that makes it to 100k will be reliable for another 50k"?

Most bumper to bumper warranty is for 36k so 50k is kind of a strange bar.

  Its a BMW ///M joke

rated:
natosbourne said:   My husband and I are thinking of buying a new car, we only have one as of now and we have 3 kids who we bring to school everyday. It's really a problem for my husband since he has to adjust his time so he could drop the kids to school before going to work. We decided to get another car (a mommy car) that i could use to bring the kids to school and pick them up afterwards.we will be applying for a car loan and a friend informed us that credit unions offer lower rates than traditional banks. Is this true? Would it be more practical if we would apply for an auto loan in a credit union rather than a bank? Anybody here knows the requirements we need to be a member of a credit union?
  First things first.  What's your credit score? What's your husband's credit score?

With that being said, PenFed is a great credit union to join for great car loan rates, and mortgages as well.

https://blog.penfed.org/ways-to-become-a-member/

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rufflesinc said:   
mwa423 said:   D I'd look for a cheap used vehicle, especially if you can pay cash for a $5,000-$7,000 vehicle. Don't buy a $40,000 minivan to drive kids to school and back or something equally silly.
  please post some 7k mommy vehicles!!

  
Please think before you post, I know it's a lot to ask for you to completely change your posting habits, but it would do so much for the community.

A quick search for minivans in my local area on autotrader popped up more than 20 with <100k miles and <$7,000. My point remains valid (unlike yours), they're looking for something that (I assume) can ferry the kids around to soccer practice around the city more conveniently than what they have now. Even if they're buying a 10 year old vehicle, if it's in the shop every few months for something minor, they can obviously survive for a day or two with one vehicle.  

The op did say they are looking for a "new car", though most of us understand that somebody will describe any vehicle that is newly in their possession as a "new" vehicle, there was far from enough detail to determine whether they wanted a brand new 2016/2017 model year "mommy vehicle" or just need something that works well enough, we didn't get that much detail in the OP.

But let's expand on that statement to show how little you actually know and how bad your advice is about accepting 0% manufacturer. OP's question was who has the best interest rate, which is a reasonable question, but only half the question which should be considered. If OP is actually buying a brand new car, there will often be $x,000 cash back OR discounted financing.  A customer can often pay less over the life of the loan by not using manufacturer financing and taking the cash back and getting outside financing.  Stop me if I'm going too fast, now we're getting into a thing I call math:

Assumptions: $35k amount financed, OP has top tier credit, 60 month term (pretty standard loan terms):
2017 Toyota Sienna has 1.9% financing or $1,000 cash back. If OP were to find their own financing at anything under 3% APR, then they are money ahead by taking Toyota's $1,000 cash back.

1.9% Financing - $611.94/month - $36,716 total paid
2.49% Financing - $621/month - $37,260 total paid
3% Financing - $628.9/month - $37,734 total paid

So, as the math shows, OP is money ahead anywhere under 3%, which if he has top tier credit, he should be able to find with dealership indirect financing, retail bank or credit union financing.  This doesn't even include any price breaks that a dealership can give out of their financing commissions which puts OP even more money ahead.

rated:
Crown Vic... Perfect family car...

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mwa423 said:   
rufflesinc said:   
mwa423 said:   D I'd look for a cheap used vehicle, especially if you can pay cash for a $5,000-$7,000 vehicle. Don't buy a $40,000 minivan to drive kids to school and back or something equally silly.
  please post some 7k mommy vehicles!!

  
Please think before you post, I know it's a lot to ask for you to completely change your posting habits, but it would do so much for the community.

A quick search for minivans in my local area on autotrader popped up more than 20 with <100k miles and <$7,000. My point remains valid (unlike yours), they're looking for something that (I assume) can ferry the kids around to soccer practice around the city more conveniently than what they have now. Even if they're buying a 10 year old vehicle, if it's in the shop every few months for something minor, they can obviously survive for a day or two with one vehicle.  

 

 when you write <100k miles you mean 9X,XXX miles.  I wouldn't trust my kids in a 90k mile car unless I was broke. And even then, I'd buy a new(er) econobox over a used minibox. Then again, I don't think it's a good idea to have kids until you're in a financial position to drive new cars.
But let's expand on that statement to show how little you actually know and how bad your advice is about accepting 0% manufacturer.

Assumptions: $35k amount financed, OP has top tier credit, 60 month term (pretty standard loan terms):

You assume too much. I was making a generic statement about the fact that there's ooddles of incentives on new cars and none on used cars.

rated:
rufflesinc said:   
mwa423 said:   
rufflesinc said:   
mwa423 said:   D I'd look for a cheap used vehicle, especially if you can pay cash for a $5,000-$7,000 vehicle. Don't buy a $40,000 minivan to drive kids to school and back or something equally silly.
  please post some 7k mommy vehicles!!

  
Please think before you post, I know it's a lot to ask for you to completely change your posting habits, but it would do so much for the community.

A quick search for minivans in my local area on autotrader popped up more than 20 with <100k miles and <$7,000. My point remains valid (unlike yours), they're looking for something that (I assume) can ferry the kids around to soccer practice around the city more conveniently than what they have now. Even if they're buying a 10 year old vehicle, if it's in the shop every few months for something minor, they can obviously survive for a day or two with one vehicle.  

 

 when you write <100k miles you mean 9X,XXX miles.  I wouldn't trust my kids in a 90k mile car unless I was broke. And even then, I'd buy a new(er) econobox over a used minibox. Then again, I don't think it's a good idea to have kids until you're in a financial position to drive new cars.

We have 3 cars in our household (for 2 drivers, I know, I know, wasteful, but Licensing + Emissions + Insurance on the 3rd car is $18 per month).

Anyways, those cars have 107,000, 119,000 and 240,000 miles. All very reliable and all 3 were purchased for a total of $15k.

It is more about finding a car with good maintenance records and ownership history. I have never owned, nor will I ever own a new car. We have a car seat in all 3 of them for my daughter as well.

Your last statement about not having kids until you can afford a new car is a joke. You know, there are $10K new cars out there. Not sure buying a brand new Suzuki says you are financially ready for kids. 

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letsspendlotsofmoney said:   Crown Vic... Perfect family car...
  
 +1 this answer.  You could fit 3-6 kids in the backseat and 1-2 up front.  Cheap insurance, no loan, cheap repairs and ditch the car when you no longer need it.
 

rated:
themew said:   
letsspendlotsofmoney said:   Crown Vic... Perfect family car...
  
 +1 this answer.  You could fit 3-6 kids in the backseat and 1-2 up front.  Cheap insurance, no loan, cheap repairs and ditch the car when you no longer need it.

  Only one downside to a Crown Vic. People are more likely to drive slow in front of you.

rated:
At the rate recalls are coming out these days there's a case to be made there are known unknowns with the new cars too. At least the weak points and safety recalls have had a chance to make themselves known on a vehicle 3-4 years old.

ETA: If you don't do a proper inspection, you'd be shocked to learn what can still be sold as new.

rated:
Car threads always turn into "You should buy a Crown Vic, get a cash car, etc.".   I have a family.  Wife, myself, 2 kids and 2 dogs.  We looked at minivans, but didn't really like any of them and we've wanted a PHEV.  We got a great deal on an XC90 T8 and couldn't be happier.  It nice, fits our needs and I haven't put gas in it in 40+ days now thanks to our short commute and the car's 20 mile EV range.  Had I known about the Chrysler Pacifica PHEV, we possibly would have waited and purchased that instead. 

Not everyone on FW is scraping by rubbing nickels together hoping to make a quarter.  This isn't directed to the OP, but everyone in general.  If you're in the position to buy a new car and keep it for 7+ years, go for it.  I've never been a fan of dirt cheap cash cars because my wife I have to get to work without fail and I hate fixing cars on the weekend.  I did that with in our early 20s and wasted a lot of time maintaining two cars that I had no prior history on.  You'd be surprised what you'll find rigged up in a car, especially electronics in newer cars.  I had to re-initialize the TPMS monitor on a friend's Ford F-150 because the previous owner turned it off because he was too lazy to buy sensors for the aftermarket wheels. 

Wrenching isn't for everyone.  If you have the time to work on your car or don't mind going to a mechanic, by all means.  I've been there and didn't mind doing it then.  At 32, I do mind.  I'd rather be playing with my son and daughter on the weekend instead of wrenching on a car. 

rated:
RailroadTrack said:   
Not everyone on FW is scraping by rubbing nickels together hoping to make a quarter.  This isn't directed to the OP, but everyone in general.  If you're in the position to buy a new car and keep it for 7+ years, go for it.  I've never been a fan of dirt cheap cash cars because my wife I have to get to work without fail and I hate fixing cars on the weekend.  I did that with in our early 20s and wasted a lot of time maintaining two cars that I had no prior history on.  You'd be surprised what you'll find rigged up in a car, especially electronics in newer cars.  I had to re-initialize the TPMS monitor on a friend's Ford F-150 because the previous owner turned it off because he was too lazy to buy sensors for the aftermarket wheels. 

Wrenching isn't for everyone.  If you have the time to work on your car or don't mind going to a mechanic, by all means.  I've been there and didn't mind doing it then.  At 32, I do mind.  I'd rather be playing with my son and daughter on the weekend instead of wrenching on a car. 

  Implicit in that explanation is that it's not obviously cost effective to buy a used car and pay someone (trustworthly) to make repairs on it.

rated:
rufflesinc said:   
  Implicit in that explanation is that it's not obviously cost effective to buy a used car and pay someone (trustworthly) to make repairs on it.

  
I know a few mechanics.  They love repeat customers.  Make of that what you will.  People may not acknowledge it, but they're in the same category as used car salesmen. 

I had a 2010 G37 Coupe some years ago.  I needed to get a state inspection (Virginia) because my nearest dealer was 40 minutes away, so I went to a Goodyear.  After the inspection, he told me my injectors were dirty and he could hear it and I needed to put some fuel additive in it.

I told him to go pound sand, but I'm sure he'd gotten a few suckers well before he tried that line on me. 

rated:
needhelpplease said:   I'd buy a 3 row SUV over a 40K minivan to save money

or if you must have a minivan
then this:
http://www.mbvans.com/sprinter/commercial-vans/metris-passenger-...

  We just went through this process, and I couldn't agree less. The list of 3 row SUV's with any space whatsoever behind the rear seat is pretty small.  Of those, you can't touch one new for 40k.  I new suburban is going to cost you a LOT more.  Factor in the dismal gas mileage and it was impossible to justify an SUV over a van.  

rated:
Get a Porsche turbo 911. You only live once!

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letsspendlotsofmoney said:   Crown Vic... Perfect family car...
 

  Now it's an official FW thread!

OP, I don't know if your question was answered (I feel like only partially).  Credit unions in many cases can be cheaper but not in all instances.  Shop around.  Bankrate.com is one place to start, also most bank's and credit unions will post their standard rates for auto loans so you can visit the websites of financial institutions local to you for an idea of what they're offering.  After you get an idea of what's available from external financing, look for the vehicle you're interested in and see what sort of dealer financing is available. 

rated:
drodge said:   
needhelpplease said:   I'd buy a 3 row SUV over a 40K minivan to save money

or if you must have a minivan
then this:
http://www.mbvans.com/sprinter/commercial-vans/metris-passenger-...

  We just went through this process, and I couldn't agree less. The list of 3 row SUV's with any space whatsoever behind the rear seat is pretty small.  Of those, you can't touch one new for 40k.  I new suburban is going to cost you a LOT more.  Factor in the dismal gas mileage and it was impossible to justify an SUV over a van.  

  
For three kids, I agree.  You are definitely better off buying a van.   If you have 3 kids and you have a boat or trailer to tow (before someone says it, you don't want to tow a trailer with a minivan), then you should kill two birds with one stone and buy a Suburban or similar.  

We have two kids so we didn't go with a van, but we did consider it.  We never use our third row. 

rated:
www.ussfcu.org is open to all and has auto loan rates starting at 0.99%.

rated:
rufflesinc said:   
so ... if you only have three kids, why wouldn't you just buy a crown vic and stick all three in the back?

  
Probably because I absolutely despise the Crown Vic.  It is a terrible car and it's been a terrible car for a long time.  I fail to understand why people recommend them so often.  I can name dozens of other cars that are just as space efficient, fuel efficient and reliable than a body on frame car designed in the 70s with updated sheet metal and running gear. 

I'm telling you all how I really feel, now.  It's an awful car.  Every time I see one, I think to myself, "You know, they could save probably $1k/yr on fuel easily if they'd bought a something like an old Fusion, Altima, Accord, etc., instead of buying that old geezer of a car with that awful wheezing 4.6L V8 gas hog motor that makes as much power as a modern 2.0L turbo. 

PSA: Don't ever buy a Crown Vic, ever.  You can do so much better. 

rated:
Assuming the OP is even still reading amid all bickering above:

1) Shop for something you can afford. It's better to buy a 10k car that you can afford to repair, than a 25k car that is parked because the payment leaves you car-poor.
2) A car with zero miles loses several thousand dollars in value when you drive it off the lot. Because of this, the 'smart money' is usually on buying slightly used (2-4yrs old)
3) Have your bank/CU pre-approve you for a car loan in the price range you're looking at. Carry that approval letter with you. If a dealer's finance department can beat the rate, take it. If not, use your own bank/CU.
4) Turn down any extras (clear coat protection, and in many cases, extended warranty). Money is best spend on having it inspected by your mechanic beforehand, rather than soaking money into a warranty.

If you're still tempted by "Buy Something Brand New", go back and read #2.

Good luck!

rated:
I just refinanced my car purchase using DCU. They had a 1.7% rate that I qualified for. I did have to open a bank account with them and also do a direct deposit into that account to get the rate. If you don't do the direct deposit I think the rate is 2.4%.

I donated $5 into one of their causes to qualify for the DCU account.

rated:
First try finding a dealer that offers 0% interest financing, if not try Unify Credit Union, formerly known as Western Credit Union, which has a 0.74% interest rate on new auto loan up to 3 years: https://site.western.org/Rates/rates_loan.aspx

rated:
Logan71 said:   Assuming the OP is even still reading amid all bickering above:

1) Shop for something you can afford. It's better to buy a 10k car that you can afford to repair, than a 25k car that is parked because the payment leaves you car-poor.
2) A car with zero miles loses several thousand dollars in value when you drive it off the lot. Because of this, the 'smart money' is usually on buying slightly used (2-4yrs old)
3) Have your bank/CU pre-approve you for a car loan in the price range you're looking at. Carry that approval letter with you. If a dealer's finance department can beat the rate, take it. If not, use your own bank/CU.
4) Turn down any extras (clear coat protection, and in many cases, extended warranty). Money is best spend on having it inspected by your mechanic beforehand, rather than soaking money into a warranty.

If you're still tempted by "Buy Something Brand New", go back and read #2.

Good luck!

  
Have you looked at the prices of used vehicles lately?  Used vehicles aren't cheap and quite often, it's a better deal to buy new.  OP has 3 kids, so let's use a used Honda Odyssey for example.  

2016 Honda Odyssey EX-L @ 0.9% (Honda Finance)  with 10% down  = $570.86 for 60 months ($36,200)
2014 Honda Odyssey EX-L @ 2.9% (PenFed) with 10% down = $436.53 ($27,000)

So for $134 per month, you get an older car with a lot less perks (new car warranty, maintenance, tires, peace of mind as the first owner).  All depends on your perspective, but I'd spend the extra $134.  I didn't even take negotiation into account with the new Odyssey, which you should easily be able to take a grand or two off that MSRP of $36.2k.
 

rated:
Currently Chevrolet is offering 0% up to 6yrs on all their new 16's. That's the lowest rate for the longest term & gives you the flexibility of what size of car & budget. Buying something used then credit unions do have very competitive rates. Depending on where you live you may have some great local options or PenFed is always a way to go. All of the above options are based upon having good to excellent credit. If credit is above average & below & you are unsure about new or used & just want to know what you would qualify for then Capital One offers pre-approvals & a great place to start. They are linked to dealers all over the country. Hope this helps & best of luck.

rated:
Repair condition of a car just seems so far down on the list of safety factors. The kind of things that are problems with used or unreliable cars just don't seem to contribute to accidents in my experience. Safety is important, but I think it's much more influenced by things like:

Amount of time spent driving
Your driving habits
The habits of drivers around you

I don't think I'd even include repair/replacement type issues on the list. And through general frugality (not limited to avoiding new car purchases) we've been able to minimize our time spent driving by comfortably affording homes close to work and school.

rated:
RailroadTrack said:   
Logan71 said:   Assuming the OP is even still reading amid all bickering above:

1) Shop for something you can afford. It's better to buy a 10k car that you can afford to repair, than a 25k car that is parked because the payment leaves you car-poor.
2) A car with zero miles loses several thousand dollars in value when you drive it off the lot. Because of this, the 'smart money' is usually on buying slightly used (2-4yrs old)
3) Have your bank/CU pre-approve you for a car loan in the price range you're looking at. Carry that approval letter with you. If a dealer's finance department can beat the rate, take it. If not, use your own bank/CU.
4) Turn down any extras (clear coat protection, and in many cases, extended warranty). Money is best spend on having it inspected by your mechanic beforehand, rather than soaking money into a warranty.

If you're still tempted by "Buy Something Brand New", go back and read #2.

Good luck!

  
Have you looked at the prices of used vehicles lately?  Used vehicles aren't cheap and quite often, it's a better deal to buy new.  OP has 3 kids, so let's use a used Honda Odyssey for example.  

2016 Honda Odyssey EX-L @ 0.9% (Honda Finance)  with 10% down  = $570.86 for 60 months ($36,200)
2014 Honda Odyssey EX-L @ 2.9% (PenFed) with 10% down = $436.53 ($27,000)

So for $134 per month, you get an older car with a lot less perks (new car warranty, maintenance, tires, peace of mind as the first owner).  All depends on your perspective, but I'd spend the extra $134.  I didn't even take negotiation into account with the new Odyssey, which you should easily be able to take a grand or two off that MSRP of $36.2k.

While I agree with you for the most part, the price differential greatly depends on the car.  Your example of a Honda and a lot of Toyotas will not depreciate a lot.  But if someone is shopping for a Range Rover, Jeep, BMW, etc., the difference can be huge.
 

  

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RailroadTrack said:   
natosbourne said:   My husband and I are thinking of buying a new car, we only have one as of now and we have 3 kids who we bring to school everyday. It's really a problem for my husband since he has to adjust his time so he could drop the kids to school before going to work. We decided to get another car (a mommy car) that i could use to bring the kids to school and pick them up afterwards.we will be applying for a car loan and a friend informed us that credit unions offer lower rates than traditional banks. Is this true? Would it be more practical if we would apply for an auto loan in a credit union rather than a bank? Anybody here knows the requirements we need to be a member of a credit union?
  First things first.  What's your credit score? What's your husband's credit score?

With that being said, PenFed is a great credit union to join for great car loan rates, and mortgages as well.

https://blog.penfed.org/ways-to-become-a-member/

OP a lot of dealers will offer a discount if you get the car loan from them. When I got my new car 4 years ago, I got $750 off by getting the loan from the auto manufacturer. I confirmed with the dealer that I can paid off the load anytime without penalty. Then I got a new auto loan from PenFed (I think it was like 2.25%) and paid off the manufacturer loan.

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rufflesinc said:   
SlimTim said:   Repair condition of a car just seems so far down on the list of safety factors. The kind of things that are problems with used or unreliable cars just don't seem to contribute to accidents in my experience. Safety is important, but I think it's much more influenced by things like:


 

  Again, repair condition is a known unknown. The cost delta , with 100k miles, is just not worth it, especially considering how much you are already going to be spending by having kids
Amount of time spent driving
Your driving habits
The habits of drivers around you

I don't think I'd even include repair/replacement type issues on the list. And through general frugality (not limited to avoiding new car purchases) we've been able to minimize our time spent driving by comfortably affording homes close to work and school.

The first two things, like you said, I can control. The third I can partly compensate by leaving more space between car in front, checking before entering intersection when just turn green, etc.

I compensate for the unknown history and condition of used cars by not buying them.

  I'm not sure if you're serious or not.

Outside of scheduled maintenance (oil, fluids, timing belts, etc.) modern cars need almost no repairs.

The work they most often need -- tire and bulb replacement -- only requires visual inspection. The next most common repair, brake pads, also only requires minimal visual inspection.

Skipping 7 Messages...
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rufflesinc said:     Again, repair condition is a known unknown. The cost delta , with 100k miles, is just not worth it, especially considering how much you are already going to be spending by having kids
The first two things, like you said, I can control. The third I can partly compensate by leaving more space between car in front, checking before entering intersection when just turn green, etc.
I compensate for the unknown history and condition of used cars by not buying them.
 


  It is true the maintenance records of the used cars are not usually complete and it is a big unknown about how the previous owners treated their cars. Though all of the maintenance related issues can be detected by the experienced mechanic and thorough test drive. It's not a black box.
Cars with 100k+ miles do have things such as axles, differential, CV joints, ball joins, tie rods, stabilizer/swaybar linkage, radiator, heater core, exhaust components that could fail due to wear and rust. Though they can be easily detected either by visual or other form of examination. The true safety concerns only applies to cars with defect (GM ignition, Takata airbag inflator, etc) that have not been made public and not easily detected, which is going to be in both new or old cars anyway. Being new is also not the guarantee to have issue-free experience. It just mean the repair is free. Therefore I do not consider the safety reason is a good one for not to buy used cars.
It's more the matter of personal opinion and feelings in this topic. IMO I won't buy a new car until I have at least 1m in net worth so I can afford to throw away money in the form of depreciation in the first 3-5 years of car ownership. 
 

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