Last Blogger

Even as an adult. Some might even say that it’s even more important as an adult because if you don’t get it right, it can cost you a lot of money. Let’s look at an example.

I’m in the market for a newer car. Our 1999 Elantra has been treating us very well, but she’s showing a couple of rust spots. Rust tends to be like an iceberg where you only see 10% of it, the rest is hidden. Even still the rust alone isn’t a big deal. The added factor is that we’ve had some changes in our lives and I need something that I feel more confident in. We’re about to break 200K km on the car and that starts to bring it into slightly more unpredictable territory for me. Combine that with the fact that we only have one car and travel has become a far more vital part of our lives and it all points to a newer car.

I really like my Elantra and all the reviews indicate that the later models are even better than the 1999 model. So I’m leaning very heavily into buying another. That’s where the homework really begins. Now I need to find out what we can afford, what options are we want (A/C is a necessity for us now) and what model year those factors will steer us into. I began shopping around just to see what was out there. There are lots of 2003s available but far fewer in later years which is where I’m hoping to end up. One ad did stick out at me though. It was a one year old Elantra with low kilometres. Just one problem. The price!

If you check the ad, you’ll see that it may seem fairly innocuous until you start price comparing. So where would I price compare a lightly used 2007? How about with Hyundai themselves with a brand new 2008? Yep, that’s right. Lightly used 2007, $25000 + sales taxes at the DMV or brand spanking new, top of the line 2008 Elantra (which is a slightly improved model over the 2007) for $24540 + taxes at the dealership. Now I’m not 100% sure if there are tax savings to be had on the 2007 because I’m not that well versed in the details of used car taxes vs new car taxes, but surely it such a gap that would make the ‘07 a sensible buy? If you want to dig further into the question, the ‘07 is a 5 speed which means it’s standard. The top of the line ‘08 is an automatic. The top of the line standard transmission car for 2008 ends up with a price tag of $22340 + tax.

So that’s where homework can demonstrate its importance. If you were considering a lightly used 2007 Elantra, you could approach this particular ad in one of two ways. You could walk away because you feel the seller has unreasonable expectations or you can approach the seller with what you feel is a fair offer and have facts to back up that position.