New Or Used?: Family Sedans Under $40k Edition

Andy writes:

Hello, my wife and I are looking for a new car. We have a 20 month old and another on the way in April. Anyway, we’re looking for a sedan that’s roomy, reliable, safe and quick. Our budget is in the $40s. For new cars I was looking at the Taurus, Genesis and M35 (due to the incentives). On the used side, I was looking at Audi A8s and Volvo S80s. We live in Northern Indiana so traction is occasionally a concern. Do you have strong feelings about any of these candidates? Any other cars you would consider? Thanks!

Sajeev Answers:

If you want your kiddo to attend private schools, I’d avoid the limited production rides like the A8. Audi’s in general are far from the pinnacle of cost effective motoring, and the A8’s uniqueness makes parts and labor even more painful when the time comes. But if you enjoy having a new car every few years, you can’t go wrong buying certified pre-owned A8s, running like hell when the warranty expires.

The Volvo S80 is similar, but to a far lesser extent. That said, your choices are fine: there are no bad cars in your price range. Provided you’re talking about the V8 Genesis, since the V6 model smells funny: I blame the junky leather. I’d also recommend a used M35 to take advantage of that model’s disappointing resale value. Ditto the Lexus GS350, take that one out for a spin too. Honestly, I like the Lexus better than the M35.

But if you aren’t a badge snob, a somewhat-loaded Taurus SHO is the best performer and the best long-term value. Plus, it has that new car smell and a lot of time before the warranty expires. (Change the oil regularly, lest turbo failure attack you in the future.) And having AWD in your climate never hurts. It’s my first pick from that litter, especially since your kid will really, really want it about sixteen years from now. They can thank me later.

Steve Answers:

The last thing your kid will want is a full-sized car for the 40 and up crowd. But that’s besides the point. Virtually any near-luxury sedan can do with your requirements and you’ve hit five good candidates right on the head.

I would suggest driving all of them. Then figure the following.

1) Are you paying cash?

If you’re not, then stop. You shouldn’t be blowing $40k+ on any car. Please cut your budget considerably because having kids and owning depreciating assets is a very nasty mix. Kinda like drinking straight alcohol and lighting up your own mouth with a Zippo. You’re gonna be in a world of hurt for quite a while… and the recovery takes time. If you do have cash please pretend I never said this.

2) Am I buying based on fear?

Again with the lecture. But you know what? I’ve been where you were… and the dirty little secret of our industry is that anything short of an Aveo is perfectly safe. My wife and two kids are riding around in a late-model Civic. It may not be as much of a tank as an 15 mpg full-sized Canyonero. But it’s surprisingly strong in a crash. If you want to look at the ‘best fit’ I really wouldn’t rule out a midsized or compact vehicle.

3) Shop and wait…

Election years tend to be pretty rough. This year you get the benefit of the stimulus money running out. A steep reduction in state government hiring and benefits, and the general uncertainty that comes with elections. I’m already seeing cracks in the foundation of ‘tax season’ where wholesale prices are now declining substantially. Usually this doesn’t happen until May. If I were you, I would take your time and make sure your next car is your best car.

Since you’re new car folk looking for value, get a near-new car with a better warranty. There are plenty of one to two year old models around and demos that will be loaded with all the options you desire. Get one the way you want it and enjoy it. Better yet, make it a car that is about to be phased out and replaced with wafer thin cheap crap. Oh wait. You’re not in the market for a Chrysler. In fact nobody is. Just pick what it is you like and enjoy it. Just remember that happiness is short and debt is a barnacle bitch.