New v Used Car

[MichaelWeston]

Hi Guys. Looks like its time for me to replace my car, Wondering what people think about buying new v used cars.

 

Some background. My car is 15 years old with 160K miles and I hope to drive the next one just as long.

Looking for an SUV because we will have kids soon. Wife drives a smaller car and wants one that can fit kids and the dog.

Always thought I would go used but the wives car ended up being a great deal.

I really hate dealing with car problems so I would probably get a warranty on a used car.

Just about to buy a house so that's a factor as well.

 

Saw two cars and they are listed comparably at

22,713 at .9 APR for 5 years a new car

22,422 at 0 APR for 6 years a new car

 

Used at

18,500 at my guess around 3.5 or 3 with 28K miles

 

Also

I have a 98 SUV that Kelley says the trade in value is 1500, that seems high. What do you think?

[sois]

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[Jason]

If you can afford new, go new.

 

Don't buy someone else's problem.

[Go Skins]

From experience, even with Carfax, I am not convinced you know what someone did with an old car prior to a new person getting it.  I had a lot of issues the one time I bought used and I told myself I would never buy used again, as I know when buying something new you can follow the maintenance manual and hold on to receipts to keep a running log. 

 

I know the value of a new car drops several thousand instantly.  I got a 2012 Accent last year and Hyundai has one of the best warranties in the industry.  When I bought a used car, even with the extra warranty, it didn't pay off.

[Jason]

From experience, even with Carfax, I am not convinced you know what someone did with an old car prior to a new person getting it.  I had a lot of issues the one time I bought used and I told myself I would never buy used again, as I know when buying something new you can follow the maintenance manual and hold on to receipts to keep a running log. 

 

I know the value of a new car drops several thousand instantly.  I got a 2012 Accent last year and Hyundai has one of the best warranties in the industry.  When I bought a used car, even with the extra warranty, it didn't pay off.

 

Some things you just can't look at as an "investment".  To me a car is about getting from place to place, and having fun. 

[mullichicken25]

i dont think I'll ever buy a new car

 

if having a brand new vehicle is of that much importance to me, i'll lease

[MichaelWeston]

I am leaning towards new and with this logic. (which may be flawed so I am dropping it here)

 

We will likely keep it for 10 years+ so I will likely get to keep it longer then the used car.

I hate taking care of cars and getting a new car gets me a warranty and a little bit more assurance that the car is good quality.

The price difference isn't that much especially when you consider per month basis (which I hate doing but it makes sense here)

[MichaelWeston]

I keep reading about depreciation and thinkt hat this really shouldn't matter to me because I will have the car so long. Is that a correct assumption?

[Go Skins]

I am leaning towards new and with this logic. (which may be flawed so I am dropping it here)

 

We will likely keep it for 10 years+ so I will likely get to keep it longer then the used car.

I hate taking care of cars and getting a new car gets me a warranty and a little bit more assurance that the car is good quality.

The price difference isn't that much especially when you consider per month basis (which I hate doing but it makes sense here)

 

I got a '02 Lancer back in August 2001, replaced everything including the engine and made it 204K miles before a truck backed into it and totaled it.

 

I think I got my money's worth.

[mullichicken25]

 

We will likely keep it for 10 years+ so I will likely get to keep it longer then the used car.

 

I hate taking care of cars and getting a new car gets me a warranty and a little bit more assurance that the car is good quality.

The price difference isn't that much especially when you consider per month basis (which I hate doing but it makes sense here)

 

the first bolded line contradicts the second, imo

 

i think buying a new car might slightly delay the inevitable work that you will have to put into it, but id have to imagine that over 10 years+ of ownership the statistical differnece in what you'd have to spend/do on a new car vs a 2-3 year old low milage used is nearly nonexistant

 

you're eventually going to have to do work on it anyway, i'd rather save a few bucks upfront

[Vol_Bengal]

Buy a 1 year old vehicle (could be a dealer program car or whatever) and you'll right off the top be saving yourself about 15-18% on the price of the car.

 

And, most any of your credit unions don't differentiate between a "brand new" car and one that is up to even 3-5 years old from an interest rate standpoint.  And, that used car will still have the balance of the original warranty and depending on manufacturer that could still mean up to 5 years, 100,000 miles.  If it had problems they'd show themselves in that time.

 

To each his own - my dad swears by new cars... I've bought new and used and it gauls the shit out of me to buy a car brand spanking new and spend thousands of dollars more than a car that is 1 year old and has 22,000 miles on it.

[Actium]

We just got a new Hyundai Sonata about a month ago.  I had been driving a Ranger for ten years that had nothing on it--no power locks, no power windows, not even cruise control.  I absolutely love my Sonata and all the features.  I hope to be driving it for 10 years.  

 

I do miss the no-payments, but honestly it is worth it.  I'm not a huge car guy or conspicuous consumer, but sometimes you need to have nice things to justify all the crap you go through at work

[Actium]

Buy a 1 year old vehicle (could be a dealer program car or whatever) and you'll right off the top be saving yourself about 15-18% on the price of the car.

 

And, most any of your credit unions don't differentiate between a "brand new" car and one that is up to even 3-5 years old from an interest rate standpoint.  And, that used car will still have the balance of the original warranty and depending on manufacturer that could still mean up to 5 years, 100,000 miles.  If it had problems they'd show themselves in that time.

 

To each his own - my dad swears by new cars... I've bought new and used and it gauls the shit out of me to buy a car brand spanking new and spend thousands of dollars more than a car that is 1 year old and has 22,000 miles on it.

 

That is certainly something to consider, especially with all the certified pre-owned deals out there

[|Elflocko|]

We have always purchased new cars because we keep them for at least 10 years (or at least try) and as such I want to be able to break it in right.  As previously mentioned, I've never like buying used cars because I have no idea how the previous owner treated or maintained the vehicle.  Well, that and we get the employee discount through Ford and GM through our fathers working there which knocked the price down considerably.  We will no longer be buying any of their products, but we'll still be buying new regardless of the manufacturer.

 

Just my 2 shekels... 

[|Elflocko|]

We just got a new Hyundai Sonata about a month ago.  I had been driving a Ranger for ten years that had nothing on it--no power locks, no power windows, not even cruise control.  I absolutely love my Sonata and all the features.  I hope to be driving it for 10 years.  

 

I do miss the no-payments, but honestly it is worth it.  I'm not a huge car guy or conspicuous consumer, but sometimes you need to have nice things to justify all the crap you go through at work

 

My brother had one of those, and put nearly 200,000 miles on it before it was totaled in a wreck.  When that happened he went out and bought another one.

 

Funny story about that car.  He was having trouble with it starting\turning over, and the engine was running a little rough, so he took it in to the dealer.  The mechanic was looking at the engine and calls my brother over.  

 

He says "Uh, sir, these spark plugs have serial numbers on them"

 

My brother "OK, what does that mean?"

 

Mechanic "That means these are the original spark plugs that were put in at the factory".

 

The car had 167,000 miles on it... :doh:   :lol:

[|Bunghole|]

I'd buy a newer used car with very low mileage on it. In the Summer of 2011 I bought my 2008 Mustang GT and it had only 9,000 miles on it. That way you avoid paying for the immediate depreciation that occurs the moment you drive it off the new car lot. I'd be very picky though, and shop around a LOT until you find a pristine, low-mileage and warrantied example of a model you like.

[Jason]

The ideal if you can swing it is a dealer Demo model.  My third car was one of those and it saved me a few thousand bucks, and had less than 1000 miles on it.

[|Elflocko|]

The ideal if you can swing it is a dealer Demo model.  My third car was one of those and it saved me a few thousand bucks, and had less than 1000 miles on it.

 

That's not a bad idea either; my dad bought a couple of those over the years... 

[MichaelWeston]

Another thing that I didnt really admit earlier, is that I hate dealing with car salesmen and I feel more confident with the new car vs the used car. I feel like there is less room to scam me.

[Orange 'n Black]

If you are able to get into a new one at a 6yr term with 0% APR, that's a big thing to consider. You are paying less value than the $22k sticker price than if you forked over $22k cash today, or even financed a little less on a used car at a higher APR. I will buy just about anything if I can finance it for 0%.

 

You would need to run the numbers and make an educated guess at inflation to know which was absolutely better, but for me personally, having a new car warranty and the other associated little perks makes up the difference. Bonus points if you can negotiate extra things like free oil changes, maintenance, etc.

[Jamie_B]

Another thing that I didnt really admit earlier, is that I hate dealing with car salesmen and I feel more confident with the new car vs the used car. I feel like there is less room to scam me.

 

 

If you dont want to haggle, you might consider a website like www.truecar.com

 

I used it when finding exactly what I wanted in my current car and they gave me a number of options for dealers, I didnt have to haggle about the pricepoint because they already had it listed, the only thing I had to do was choose which dealer had the best deal on my trade in.

[|Elflocko|]

 

 

If you dont want to haggle, you might consider a website like www.truecar.com

 

I used it when finding exactly what I wanted in my current car and they gave me a number of options for dealers, I didnt have to haggle about the pricepoint because they already had it listed, the only thing I had to do was choose which dealer had the best deal on my trade in.

 

Very interesting.  I might be giving that site a try in the next 6 months...

[gatorclaws]

I don't trust truecar anymore now that they are partnered with dealerships. I liked it better when they were an independent site that just gave you the numbers. I remember looking in 2010 and brought a truecar printout only to be told by the salesman that the site was fake and they couldn't get close to the number, but another dealer did.

 

My recommendation for best price:

- go to the edmunds.com price paid forums for the car you want. People post what they just paid at their dealer so you know roughly what price you should be able to get. This is more just for your own info.

- Email the online sales department of the 5-10 closest dealers asking for a quote on a specific model and set of options. They will give you the best price without any need to haggle. Some will offer to beat your best offer received by say $250 or $500.

 

I helped family members do this and was able to significantly beat the price they were able to negotiate in person with a simple email. I believe one of them beat the truecar price by about $1500.

[MichaelWeston]

If you are able to get into a new one at a 6yr term with 0% APR, that's a big thing to consider. You are paying less value than the $22k sticker price than if you forked over $22k cash today, or even financed a little less on a used car at a higher APR. I will buy just about anything if I can finance it for 0%.

 

You would need to run the numbers and make an educated guess at inflation to know which was absolutely better, but for me personally, having a new car warranty and the other associated little perks makes up the difference. Bonus points if you can negotiate extra things like free oil changes, maintenance, etc.

 

They have alot of the free oil changes etc.

 

When I called and asked about the 0% down, he told me that was for a different price then the one I was quoted on through the internet. Which didn't make much sense to me. He said it was a buy down rate 72 months is at 2.79%. Then you get it at the sticker price....huh? Said he can't combine offers then.

[Actium]

Another thing that I didnt really admit earlier, is that I hate dealing with car salesmen and I feel more confident with the new car vs the used car. I feel like there is less room to scam me.

 

A friend of mine gave great advice before we bought the car.  "Forget about everyone who says they got $10,000 knocked off--they are full of shit.  Just acknowledge that you are going to get screwed, but at the end of the day, you will have an awesome vehicle to console you."  You can minimize the scam, but they are still gonna get you somehow on something.