The Joys of Buying a Car

by Cynthia, posted in Taking Care of Business

My [third] beloved 2014 Toyota Camry is reaching 120,000 miles. So far, I have had no major repairs. I faithfully have kept up with the recommended maintenance, have occasionally replaced tires and a battery or two, and consistently vacuum and wipe down the interior. These cars last forever. Still, I decided to replace the Silver Bullet, if only so I can use the trade-in as a down payment, thus avoiding significant out-of-pocket expense.

Truth be told, I want a luxury vehicle. I will admit it. After years as a single mother, caregiver, and generous grandmother, I had decided it was time to treat myself. In the past I have been perfectly satisfied with a mid-range car. I have never been one to feel a need for a new car every few years, having had my last three Camrys 11, 10, and now almost 12 years, respectively. The cars look fine (although this last one suffered a couple of door dings and a scrape). They have been safe and reliable.

I spent several weeks reviewing cars, crossovers, and SUVs online. I read reviews, looked at features, searched for ratings.

Out I went in search of a new ride. Loving a good road trip, my goals were standard: safe, reliable, and comfortable. Those features that seemed like bells and whistles in years gone by are now standard in almost every [new] vehicle for sale.

I headed first for the Toyota dealership, being familiar with the brand. As is the case in most cities now, one owner holds the license to sell multiple manufacturers’ products. The autoplex or automall is not uncommon. On the way to Toyota, I stopped to look at other manufacturers’ offerings.

Admittedly car shopping is overwhelming. I dreaded the “hard sell” – but was pleasantly surprised that I received none of that. Some places had an abundance of inventory. Toyota had very little. What I found interesting was how similar cars are and how varied the prices can be. For the day, I settled on two that I test drove – one was a smaller SUV, and one was a larger, more elegant model. The larger was, as you may guess, almost $12,000 more, but still under what I believed I would have to pay.

I came home and searched for more information. The salespeople both gave me a printout of the car I drove. The printouts included the VIN and basic information about the vehicle. I used that information to find out more on the U.S. Department of Transportation National Highway Traffic Safety Administration website. https://www.nhtsa.gov/  It has a wealth of information. You can look up safety ratings and additional information. You can enter the VIN of your car to get full information on it, which I found was invaluable.

I was hoping to take advantage of the new provision to take an income tax deduction on the loan interest. The deduction is phased out for taxpayers who have a modified adjusted gross income of over $100,000. My research yielded the following additional criteria that must be met to take the deduction (even if you do not itemize.) https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors . To summarize the vehicle interest deduction:

  1. The vehicle must be new and purchased in after December 31, 2024, or in 2025 – 2028.
  2. The vehicle must be for personal use and must be secured by a loan, not a lease.
  3. The weight of the vehicle must be less than 14,000 pounds.
  4. The vehicle must be made in or put together in America. Use the NHTSA’s VIN decoder to discover the vehicle’s plant of manufacture. https://vpic.nhtsa.dot.gov/decoder/
  5. The lender must report the interest paid to the IRS and provide a statement to the taxpayer, similar to a home mortgage.

I am fascinated by how much information is available, yet one must be informed to know to look for certain results. At least one thing has significantly changed in car buying. Dealers are no longer allowed (by law) to play around with extra fees, unclear interest rates, and other deceptive practices they used in the past. Once you sit down to pen the deal (supposedly) everything is open and on the table. So, off I go to finalize a purchase.

Wish me luck!