Welp, so far SD has helped me decide what type (http://boards.straightdope.com/sdmb/showthread.php?t=297320) of car to buy, but now I could use some help making the new/used decision. The only type of used car I would consider would be 2-3 years old with 30-50 KM (20-40 thousands miles I think?). I could perhaps save 20-25 % compared to buying new.
Now the logical side of my brain is saying that its worth it, and that especially for high-quality (near luxury class) cars buying new is wasteful. Of course the emotional side counters that having my very own brand new (nice smelling) vehicle is worth paying a premium for…
This is going to be my first car purchase so I have no experience to go on…
Logical is right particularly if the car is still covered by the new car warranty. If you buy a new car it is worth the same as a 1 year old car (roughly) the minute you drive it off the lot.
I just bought a 2000 model car with 68 thou km on the clock. Would’ve cost me twice as much for the new version at least. I got not only a 3-year warranty from the s/hand dealer but also the new car smell still lingers. So, I think you are on the right track, IMHO.
That is a pretty large premium that you would be paying for a few months of new car smell. I always buy used nice cars that are 2 - 3 years old and have had good luck with them. I also think your estimate of 25% savings for a 3 year old car is generally too conservative. My savings have been 40% - 50% by shopping around.
I’ve purchased one car new (an '81 Monte Carlo), and I doubt I’ll buy new ever again. Since that Chevy (which was stolen and stripped), I’ve adopted a friend’s strategy, that being to buy a few years old model of a car I know to be of good reputation and condition. That’s been the plan for the last three cars, and it’s worked out well.
My current car was purchased with 70K miles, for 35% of its new price, with a three year warranty, two years ago. I’ve had no significant problems, the warranty performs, and in about a year, as the warranty nears termination, I’ll start shopping for 2003 models of the same car. I did check the car out before purchase, and it was a one-owner vehicle with nothing of note in its VIN history.
I found my most recent two cars, as well as one my sister and I purchased for my mom, on AutoTrader.
Ok maybe theres a few other things I like about new cars than the smell (latest gadgets, no chance of latent-defects, cheap maintanace for a while). So are there really no significant concerns I should have about a slightly used car?
Except for certain models & years (90’s VWs come to mind), virtually any used car is fine as long as it’s been well-maintained. I paid bluebook ($1000 at the time) for an '89 Dodge Shadow with 103,000 miles. It lasted us three years and except for needing a new pair of U-joints, all maintenance was routine. The only reason we got rid of it is because it suddenly needed repairs which would have costed more than it was worth.
It makes a lot of sense to buy used. Mr. Pundit always buys used cars and has had good luck so far. He just bought a 2002 BMW X-5 (??) SUV. It costs 50% less than what it would have cost new. He did pay our mechanice $100 to give it his seal of approval.
These guys, Click and Clack, host a weekly call-in show on NPR called Car Talk. They swear that no one should ever buy a new car if they are concerned with value.
I’m 37 and have never purchased a new car in my life. I’ve saved 10’s of thousands of dollars doing this. Furthermore, I’ve never made a car payment – I pay 100% upfront, in cash.
In addition, I do almost all the maintenance myself, which really saves money.
I’m 46 have owned cars since I was 17 and have never in the less than a dozen cars I’ve owned over the years paid even CLOSE (including repair and maintanence) to the price of just one new car.
Let someone else have eaten the ridiculous customer raping depreciation and interest on a new car. Particularly if you’re planning on buying one only a few years old.
I’m 45 and have never bought a new car, either. I just don’t care that it be “new”.
I’ve bought everything form a $100.00 beater to and newish (40,000 mile, $17,000) vehicle and do not plan to ever pay full price for a “new” car.
I’ve been watching my neighbor and his car purchases lately. About 2 years ago he got Hummer (H2) and he’s been waiting for weeks to get his new Nissan truck which recently arrived. I guess he either special ordered it or was waiting for the release of this particular truck- either way he waited many, many weeks for this truck. He had it about 2 weeks when someone keyed it (he says- looks like he drove through some brush to me). While I hate to see him unhappy with his new truck, I really don’t understand the need to have the biggest, newest vehicle on the road.
(BTW, the hundred dollar car ran for about 3 months before it threw a rod. I left it on the side of the road and walked home. Sometime later, I got a notice that it would go to action if I did not pay the storage fees- ha ha.)
I buy cheap used cars partially because I’m po’, partially because the idea of paying full coverage makes me queasy. Take me with a grain of salt.
Go for used. Cars depreciate so why pay thousands of dollars more just for the sake of having a brand new model? In 15 years it’ll be worthless, and there’s no guarantee that a new car won’t break down on you in the first month.
If you can afford to buy a new car, why not get the used, make extra payments and pay that sucker off really quickly?
Another thing I must throw in: don’t go to a car lot. Stay at home and start calling different dealerships in your area (the more, the better). Tell them exactly what you’re looking for and ask for a quote. (You’ll need access to a fax machine, of course.) Make them bid against each other, then make more calls asking each place if they can beat the other dealer’s price; keep doing this until you’re down to the lowest bidder. This will involve a lot of calling and time, but if you’re patient you’ll end up paying a lot less than you would if you go on one lot and submit to their tricky sales tactics.
My best advice on cars - cars are an expense, not an investment. We’ve been doing the research to buy another car for almost a year now, and we’re probably going to buy a car that is a couple of years old and drive it until it’s done. A car with a reliable reputation should go for a long time even if it is a couple of years old.
I would never buy a new car (in any reasonable scenario I can think of). They depreciate instantly. I have either ridden in or owned used cars all my life, and it’s always worked out great. Also, I have no car payments.
Any advice about a former rental (Hertz, Avis) car? I knew a guy who used to buy these, and he always seemed satisfied. On the plus side, these cars are usually better-maintained than a private owners. On the negative, a LOT of people abuse rental cars.
Also, is it wise to buy a used exotic (like M-B or Jaguar)? I would assume that these cars depreciate a lot less, so buying used may not be such a great deal.
I bought my first car new, but I learned my lesson and have never made that horrible financial mistake again. Do your research and find out what models are dependable, and then buy a slightly used one. I’ve had a string of dependable used cars and saved a bundle over the years.
And if you break down after the warrenty expires, expect your repair bill to cost a small fortune. One of our neighbors has an older BMW; he says just about any maintenance work on that car is a $1500 job.