I’m a car enthusiast – I love high-performance sports cars with rich leather interiors and tires that cost more than my mortgage payment.
The thing is, I’m also a cheapskate.
When it comes time to actually signing on the dotted line for a daily driver, I almost always opt for the least expensive new car I can possibly stand driving. Known as the “stripper” model or loss-leader, it’s the car frequently advertised in the paper with a ridiculously low payment and/or MSRP. Most dealers have only one or two in stock, and you have to be aggressive to get the bargain price.
Fortunately, if you can actually find one on a dealer lot, driving a basic car isn’t nearly the sacrifice it used to be. As recently as the mid-1980s, a bare-bones model usually lacked things we consider essential today like air conditioning and power steering. Chevrolet even offered a "Scooter" trim level on the ’70s-vintage Chevette that did away with the rear seat and glovebox door.
Today, while air conditioning can still be found on the option sheet, most base-model new cars feature amenities like power windows and door locks. Government mandates have also standardized essential safety equipment like antilock brakes, multiple airbags and stability control. With such niceties included, it makes life easier for bargain hunters who are willing to sacrifice the heated leather seats and power moonroof.
Resale value and car-lot reality
On the down side, unless you’re planning to lease your cheap car, opting for the least equipment possible can bite you when it comes time to sell or trade the vehicle. Used-car customers (and lot managers at car dealerships) love fully loaded low-mileage vehicles, so your bargain-basement model might end up valued thousands of dollars below what a fully equipped version of the same vehicle would net. If you’re trading your car in, the hit will be worse than if you’re selling to a private party.
Finally, remember that automakers and dealers arrange things so they sell the models they want to sell. If you go bargain hunting, you’ll likely find rebates and other incentives are set up so a nicely equipped version of the car you’re seeking will cost just a few dollars more per month than the basic model. It’s not exactly a trick, but the pricing structure is carefully arranged to overcome your resistance.
Be aware, watch the numbers carefully, and remember that you’re in control of your money.
Here are a couple of our favorite base-model bargains on the market today. For a closer look at some actual purchases, check out our next installment — Cheap cars: Two case studies.
