Recession Watch: $1,000 a month for a new minivan? No way
Filed under: Shopping, Transportation, Recession
This post is part of a series about real-life signs we're in a recession. It has been fun for the past year, since my son was born, driving around in a 1999 Ford Taurus with three kids crammed into the back seat. But the plan has long been to buy a minivan.
The only one my eight-year-old daughter, who loves our Taurus almost as much as my husband, would consent to is the new Dodge Grand Caravan, for 2008. That's because it is the one with the seats that spin and face backwards and the little pop-in table for in-van picnicking.
Am I a sucker for swivel and go seating? Yes! I thought we had an easy decision and I even joined Costco (more on that decision) to take advantage of their no-haggle car buying program. I had my special incentives and zero percent financing deals all lined up when I went to the nearest participating dealer, ready to buy.
Only problem: I thought I could buy a car for about $22,000. But when I got done talking to the salesman, he had me convinced I needed a model that cost $36,000. With my cheap financing deal, that was still $1,000 a month.
In more optimistic times, I might have rationalized the purchase. I mean, we'd probably have the van for 10 years. Maybe I'd let him convince me to lease one. Or take out a five year loan. But this year? When we're trying to cut back on evenings out, new clothes, vacations, anywhere we can, to suddenly take on that kind of expense? All I could think of was all the things I could do with that $1,000 a month.
Owning a Dodge Caravan paled in comparison. I decided to swivel and go myself -- right out of that dealership.
I talked it over with my wise and frugal colleague Sarah Gilbert. She advised waiting a year when I can buy one used at hopefully about half the price.
See, I'm still a sucker for swivel and go seating -- just not at a $36,000 price tag.
Update: Finally buying a minivan: Why we chose a three-year lease
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Reader Comments (Page 1 of 1)
5-08-2008 @ 12:40PM
tripletsmom said...
I currently own a 1999 Ford Windstar but my husband and I need a second car because I work too far and I currently borrow a car from my parents. At first I was going to go down that path of new mini-van-hood, paved with swivel and go seating and dual screen dvd entertainment. But reality kicked in and instead I'm buying a newer used mini-van (I'm in search for 2001-2003 model) to buy cash. With the way things are right now, the only payment anyone should have is a mortgage and the regular household bills. Car payments aren't worth it in the long run.
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5-08-2008 @ 12:48PM
Marti said...
Since when do we depend on children to help make such large (financial) decisions? If you need a minivan - and it sounds like you do - I'd suggest that you quit asking your 8-year old what she would approve of and look at what will fit, comfortably, in your budget. Will you get all of the lovely little options like swivel seating and a pop-in table? Probably not, but do you REALLY need them anyway? And, c'mon! Who picnics in their car? The point of a picnic is to be outdoors. It's great that you want to include your child in family decision making, but there have to be other, less financially burdensome, decsions she can help with.
I'd also suggest that you quit listening to the salesmen -remember that their purpose is to make as big a sale as possible. They are not there to "help" us, they are there to make money.
I'm not saying that you need to go with a low end piece of junk that barely has enough cup holders for everyone, but there has to be something else out there that would suit your needs without costing $1000/mo. When your daughter sees how nice it is not to be squished in the back seat, I think she'll get over the non-swivel issue.
And maybe you could even sit down with your kids and explain to them what is going on with our economy (if you haven't already and if they are old enough - I believe the 8 year old is) and why you have to make more financially sound decisions - and why you have to give up the swiveling seats and in-van picnic.
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5-08-2008 @ 2:31PM
SW said...
I agree completely!
5-08-2008 @ 7:24PM
Ann said...
Geez Marti, you took a look at Ms. Stone's article and read everything into backwards that you could. First of all, I get my son's opinion and I always have. It's called a LEARNING experience. Because afterwards, you sit down and explain the pros and cons of every decision. It doesn't matter how old your child is. Second, this was an article that pointed out how you can get suckered into a large vehicle purchase all too easily Me thinks that you have a negative attitude and keep a headache all of the time. Lighten up! If you read all of her article.....She didn't buy the damn van!
5-09-2008 @ 8:28PM
cjm said...
AMEN!!!!
She needs a mini-van but NOT some 36k platinum edition
A town and country (Chrysler version of a Dodge caravan) touring at 22-26k, is ALL that she needs.
My dealer is trying to talk me into a Platinum model at 36k... I told he is insane...
Who nees 2 dvd players/screens in a car...?
Who NEEDS a 40g hard drive in their radio?
Who need a gas sucking 3.8 liter engine?
The swivel seats can be justified for comfort as even consumer reports has noted that the swivel seats are better padded and WAY more confortable than the Stow & go's, (which have to be compact so that they can fit in the floor)
5-11-2008 @ 2:00PM
PatM said...
To Triplets mom...
If you are located in Massachusetts, I have a 2003 Dodge Caravan in good condition which I am looking to sell for about $5,000
My kids are grown and I need a much smaller car.
If you want more info.. or CONSTRUCTIVE ideas, please contact me directly.
Warmest regards
and HAPPY Mother's Day
5-08-2008 @ 1:41PM
ALD said...
I too desperately wanted a 2008 Dodge Grand Caravan minivan. I went to the dealers to look at them. Fell in love with it, it's design was so crisp and fresh, I felt I just had to have it! Then I looked closer. It was a sea of the cheapest plastic ever produced by mankind. Offended, and insulted that Chrysler offer such deplorable product to the public. I walked away. My new Toyota Sienna is hot!
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5-09-2008 @ 11:15AM
Stephanie said...
I completely agree ALD - our family thought the Grand Caravan would be a perfect fit as well and ended up with a Toyota Sienna. I whined about getting a mini van for months (I just turned 30... who wants to think mini van?) but the Sienna is hot and it makes me feel like one fierce soccer mom.
5-09-2008 @ 1:03PM
Andy said...
I am a Dodge salesperson and we can get you a swivel n go Grand Caravan that is not as well equipped and much less than $36,000.... Also did you provide them with credit info? They may have quoted you a worst case scenario... And what was the term? How much were you putting down? All these things come into play... With 20% down (suggested) and a 60mo loan and good credit they should have been in the $600 range....
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5-10-2008 @ 1:00AM
jay said...
Hey, Andy the salesman I agree,that the 1k a month payment was way too high a payment. We traded in a van w/negative equity of $3500 and very little down payment, for a brand new 08 Chry T&C Touring loaded similer to the Limited; and our payments are not close to a grand per month. And to you Toyota lovers, you continue to look a Dodge for its cheaper price and complain about how cheap it looks. Instead of looking at the Chrysler version. The differance is very noticeable
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5-10-2008 @ 8:50AM
Sarah said...
$600 a month car payment? That is a lot of money, in addition to your mortgage and regular household bills. I would never pay that much for a car! Instead, I would get a newer used car. I'll never buy a new car again!
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5-12-2008 @ 9:52PM
carman493 said...
The Dodge/Chrysler Minivans have always had great ideas and concepts, but are never excecuted as well as their Japanese stablemates. Our family will never have a minivan, as I would prefer a wagon like the E63 or M5 (if they ever sell it here) and my fiance prefers the SUVs even though they guzzle gas. I have driven many minivans over the years (friends vans, going with people to buy a van, or through my business) and I must say that the Dodge/Chrysler vans do give reasonable value for the dollar. I do agree with a previous comment about the cheap interior feel and my own opinion of a less refined drivetrain and road feel then the competition.
If price is the sole concern and you plan to own the vehicle for many years (more than 5), I think the Dodge is the way to go. If price is of no concern, I would get what makes you happy, even if that is a $40k + Honda/Toyota with all the bells and whistles. They have a much more refined platform/driving experience, and their materials are much more upscale than the Dodge/Chrysler. Also, one thing that hurts Dodge/Chrysler is their resale value has never held up like the Japanese vehicles do.
Another main factor in the buying decision is reliability and longevity of the items the vehicle is equipped with. In the past, the Toyota and Honda minivans have less rattles, squeeks, creaks, and noises than the American vans discussed here. They also tend to be more economical and less needy with maintanence and repairs.
If price is your sole concern, get what you NEED at the price you NEED to pay. A used Dodge/Chrysler is still a great choice. But if longevity, reliability, resalability, and your personal wants are more important than price, get the goodies in the Sienna and enjoy a Minivan that is wearing the wrong badge. It should really have that badge with big L on the grill instead of that Toyota logo. The Sienna loaded reminds me more of their luxury division, than the division that sells Camrys and Corollas.
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5-13-2008 @ 2:31AM
George Decker said...
Why buy a new van etc get a good used one and the woman with the ford touris maby a used toris wagon would be nice. Buying new is a big waste of money beter spent elsewhare. You loose way to much buying new like maby 10k when u drive off the lot depending on which vehical u get. I just traded my 1995 Dodge Dacota for another dodge and i bought it 7 years ago from a private party for 5k and traded it an dgot 2.5 k on it with 240k miles it still ran well and NO rust grate for minnesota. GO USED AND IF U MUST GO CERTIFIED USED . YOU WILL SAVE MONEY AND HAVE A GRATE CAR WIT ALL THE EXTRAS U CANT AFORD NEW
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5-13-2008 @ 8:45AM
Kyymberlyn said...
cjm,
I have an 06 Town & Country Mini Van Touring edition. it was 32K. the 22s are bottom of the barrel. Also I broke a lease 1 year early with my 2005 Liberty so rolled some negative equity into it, but my lease is still only $450 Sign & Drive. I NEVER put money down on a lease, they are full of it when they say you have to.
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5-24-2008 @ 2:39AM
pete said...
I bought a 1994 Nissan Quest last year!! It had 107500 miles on it and runs like a champ! All leather seats, power windows, moon roof....all for $2500. The original sticker price was still in the glove box, it sold for $27,500 way back in 94!!!
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5-26-2008 @ 7:17PM
lordairgtar said...
I recently bought a new car as my 25 year old Mercury Marquis (yeah, I keep them a long time) was seeing its final days. As a DJ of classic car shows, I needed something that looked cool, could carry my stuff, and be reliable and economical to boot! I bought the 2007 Chevrolet HHR Panel. 30 mpg and cool. I did not need the SS version or the 2.4 engine. Works great with the 2.2 and is cheap as far as the payments go
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5-31-2008 @ 2:25PM
Dby said...
I was taught that if you buy a new car you are a companies ginnie pig. You are the test dummy because all recalls are on you. If they recall. All problems they did not want to fix or did not see are on you and you are stuck with them if they did not recall. And who can afford 400.00 per month with gas, etc....I wanted a new can and decided to wait then i did research a year later to see who bought the van and their comments and found out it had electrical problems the company did not recall so everyone was trying to fix the problem. Not just 400.00 now is it.
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6-20-2008 @ 12:42PM
Jennifer said...
I just got a new Chevy Equinox. The dealers gave me 4 thousand off (they cut the price from 23,980 to 19,980). Great buy! I got the base model. The Equinox is practical, affordable, and an all around good car. Plenty of space for 3 kids in the back, too, so you might wanna check it out.
My father got a new Chrysler Town and Country base model last year. Cost him $14,900! Got a fantastic deal. Nothing wrong with the Chrysler. I don't think the interior looks cheap. And he gets close to 30 on the highway! Just as good as most sedans.
So, if you don't want a brand new Chrysler Town and Country or Dodge Grand Caravan, you could also look into used ones. I still think you could get a good deal on a new Dodge Grand Caravan though. Just bring in a newspaper ad (the car section) and they should be able to match the price. The fancy shmancy Grand Caravans usually cost from the high 20s to low 30s, according to the ads.
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7-02-2008 @ 8:37PM
Lindee said...
My '05 Grand Caravan (bought new) payment is only $238.00 a month. Why? Because I bought a normal one without all the bells and whistles. Plus I put $8000.00 down on it.
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