Do you buy new or used cars?

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Hulk
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Do you buy new or used cars?

Post by Hulk » Fri Apr 20, 2018 11:08 am

Just curious what all you responsible, wise bogleheads are doing. My budget for a new car for my wife is about 40K, which is totally arbitrary. I could spend more or less with cash and it really wouldn't change much, just how much more index funds I'll buy this year. I have never bought a new car and honestly never thought I would. I have always driven VERY used cars. My attitude was always find the best deal and who cares about the color, etc. But now that I am spending so much on a car it kind of irks me to not get exactly what I (my wife actually) really wants. Why would I drop so much money and not get the exact paint or interior color that she wants. Then there are all these extras packages (engine size, technology, vision, whatever) that you may or may not want/need/will-buy-happiness. I feel like Im trying to thread the needle on theses specifics for a 2 year old pre-owned car. Today my attitude has been, 'screw it! just buy new and get exactly what you want." But I feel kind of irresponsible buying a new car.

What do you do?? To be specific, Im asking those who are in a great financial spot and could really do anything they wanted, comfortably.

Thanks

BTW, the impetus to buy a new (new for us, not necessarily brand new) is move up to a 7 passenger car. We decided SUV over minivan. My wife really likes the XC90

adamthesmythe
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Re: Do you buy new or used cars?

Post by adamthesmythe » Fri Apr 20, 2018 11:17 am

As I got older and more financially secure the number of things I thought were "worth it" increased.

Early members of the list were the dishwasher and whole-house air conditioning.

Later was the new car. My last used car was a Subaru that rusted out, maybe 25 years ago. Since then I bought new. Yes, it costs more. But it is less "trouble"- fewer unexpected repairs, less uncertainty about condition and price, more safety features, and it doesn't cost THAT much more.

The thing is to get value for money when you spend money, whatever it is you spend money on.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Fri Apr 20, 2018 11:21 am

Years ago, I usually bought new - and kept cars a long time. We put a fair amount of miles on two cars (about 12k each). We wanted/needed specific features and we could get the exact car we wanted/needed - not too much and not too little - and willing to pay for.

Now, in retirement, much lower car use - but still want two cars, so we are buying and keeping (much) older cars - 15-20 model years old.

In the infrequent case of a trip where a newer car is needed for a few days, Enterprise offers a bargain for a car rental.

02nz
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Re: Do you buy new or used cars?

Post by 02nz » Fri Apr 20, 2018 11:25 am

I've bought new - but decided that the initial hit on depreciation isn't worth it. My next time car shopping I'll be looking at lightly used (1-3 year old) cars.

BTW Make sure you can really live with the infotainment system in the XC90. Try changing the temperature while driving. The car looks great but infotainment would be a dealbreaker for me.
Last edited by 02nz on Fri Apr 20, 2018 12:04 pm, edited 1 time in total.

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blueblock
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Re: Do you buy new or used cars?

Post by blueblock » Fri Apr 20, 2018 11:27 am

I buy "gently used" cars with as few miles as possible and are still under warranty. Other than that, I don't really care about model or color or options as long as my basic needs are met, which is to transport two dogs and two people, plus 4wd or AWD for snow days. I go for what I like the most among the vehicles available. If I really don't like the choice, I wait a few months and check back.

For example, in 2015 I bought a 2014 Xterra with 12,000 (accident-free) miles on it from Carmax. Been very happy with it.

Like you, I pay cash for vehicles.

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Alexa9
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Re: Do you buy new or used cars?

Post by Alexa9 » Fri Apr 20, 2018 11:27 am

I like Honda and Toyota. They are a bargain new but hold their value so well it's not worth it to buy used unless you negotiate a lot. The cost per year is not much different if you drive it for 10-15 years.

b42
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Re: Do you buy new or used cars?

Post by b42 » Fri Apr 20, 2018 11:32 am

My previous car was a 2004 Volvo S40, driven from 2006-2017 until yet another repair at 186,000 miles was enough for me to finally move on.

I'm currently leasing a 2017 Honda Civic Ex with Sensing for 36 months ($0 down, $270 a month). I drive around 10k miles a year.

I wanted some of the new safety features (adaptive cruise control, crash avoidance, backup camera, lane departure warning and assist) and found the Civic was the relatively cheapest way to get all of these without going up to the next tier of cars in size and price.

Looking back over the last year I'm happy with my decision. I got a good lease price (comes about to about $10k total for 3 years) and have a warranty for the first time in case anything goes wrong. My total repair and maintenance bill for the first year was $100 (inspection and emissions test, oil change was free). The Volvo was anywhere from $800-$4300 a year in maintenance and repair costs.

The cost of leasing may be slightly more than buying, but I've had literally zero problems over the course of a year and I like the additional safety features that aren't yet on used cars off-lease. I could have saved some buying used, but at cars around this price point there is not much room to save (3 year old civics may only be worth $3-5k less than new, with the initial warranty gone).
Last edited by b42 on Fri Apr 20, 2018 11:33 am, edited 1 time in total.

warner25
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Re: Do you buy new or used cars?

Post by warner25 » Fri Apr 20, 2018 11:33 am

I've done both multiple times. I purchased our two current cars with the intent to keep them "forever," and in both cases I started looking at 2-3 year-old slightly used models but ultimately decided to buy new. To me, the "slightly used" discount wasn't enough to make up for the inferior features and limited availability of colors/trims. I agree that if you're going to spend that kind of money, it's silly to settle for a color you don't like, for example. On the other hand, when I just wanted a second car for commuting for a couple years during certain job assignments, I purchased at the lowest end of the used market (i.e. Craigslist for <$5,000) and I was satisfied with whatever appeared to be reliable.

I think a minivan is clearly the best choice for anyone who needs 7 seats, but to me a car is just an appliance. I guess some people can't live with a minivan and think it's worth spending 50% more for something less practical to avoid it.
Last edited by warner25 on Fri Apr 20, 2018 11:35 am, edited 1 time in total.

Mike Scott
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Re: Do you buy new or used cars?

Post by Mike Scott » Fri Apr 20, 2018 11:34 am

In recent years, new cars are often no more expensive and sometimes even cheaper than used versions of the same thing. Why buy a used car that costs more than the same thing new?

Perhaps this odd market is driven by the "buy used with cash" philosophy but it does not always make financial sense.
Last edited by Mike Scott on Fri Apr 20, 2018 11:36 am, edited 1 time in total.

beachlover
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Re: Do you buy new or used cars?

Post by beachlover » Fri Apr 20, 2018 11:35 am

We've done both new and used, depending on situation. For the last four cars we've bought (over about twenty or more years), two were late model used (about 1-2 year old on model year) with very low mileage and some factory warranty remaining. Two were new. For the new cars, both were popular models and the used prices were barely lower than new. Not worthwhile in our minds, particularly in light of new safety or other features included in the newer model's base package. We aren't big car buffs, but we usually have a good idea of what we want when it's time to buy a new car. We then decide based on what's available in our local market. Since we keep our cars for many years and only trade up when they're pretty well used up, the delta to new isn't a big issue if we can't find a much better deal on late model used. Our car budget also is much lower than yours, by choice, not by necessity.
Last edited by beachlover on Fri Apr 20, 2018 11:37 am, edited 1 time in total.

jehovasfitness
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Re: Do you buy new or used cars?

Post by jehovasfitness » Fri Apr 20, 2018 11:36 am

Have owned about 20 cars in my life and have never bought new.

We are looking at a replacement soon and going with a Jeep Wrangler.

sadly, dealers list 2017 models with 10k miles for $32k and 2018 0 miles for $32.5k basically ... so, we'll likely get a new one at some point

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Fri Apr 20, 2018 11:37 am

Mike Scott wrote:
Fri Apr 20, 2018 11:34 am
In recent years, new cars are often no more expensive and sometimes even cheaper than used versions of the same thing. Why buy a used car that costs more than the same thing new?
Although we no longer buy new, I agree that if we wanted/needed a higher use vehicle and higher reliability - getting a good price on a new vehicle can often be just as good as recent model used.

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cfs
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Re: Do you buy new or used cars?

Post by cfs » Fri Apr 20, 2018 11:47 am

I still remember buying two used cars (Toyota Corolla and Nissan Maxima).

Total waste of time and money.

Good luck with your NEW car, y gracias por leer ~cfs~
~ Member of the Active Retired Force since 2014 ~

JHU ALmuni
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Re: Do you buy new or used cars?

Post by JHU ALmuni » Fri Apr 20, 2018 11:54 am

I buy well maintained used cars usually with less than 50K miles and price range 10-12K.

bloom2708
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Re: Do you buy new or used cars?

Post by bloom2708 » Fri Apr 20, 2018 12:00 pm

We have tried out all the ways to buy cars over the years. They all take your money in new/exciting ways.

New cars are great. They are new for a month or two. Then they are used. Insurance costs more. It is virtually impossible to keep things "nice". We have terrible, long winters. Ice, snow, sand, salt. It is like driving on sandpaper. Cars take a beating. Parking lots and other people take no care of your car. Door dings, fender scrapes, scratches. There are times when I think that people just don't want anyone to have something nice.

I have car fatigue. The time/energy/money to keep them in good shape and clean and issue free is not fun. We now have two kids driving. That adds a new element of fun. Higher insurance. 4 cars to maintain instead of 2. I know kids are not required to have cars. That is another topic.

We are driving older cars (mid-2000s) that were very expensive to the original owner. Not so much for us as second owners (bargains in fact). I keep them clean but don't worry about dings/scratches. They are 10+ year old cars. We only have one car with full coverage. If something happens to one of them, I'll buy another.

Our current strategy is to have the nicest, most reliable cars possible for the absolute least amount of money. When the kids are out on their own, I'll revisit. I like having one newer car and one older car. Maybe not brand new, but in the 2 year old range. An all electric car is intriguing, but there are limiting factors (long winters, ice, snow, cold) that are keeping us out of that market for now. Tossed a Leaf idea around, but not there yet.

Many paths with cars. Most find a way with whatever system works best for them. Adapt and change as needed.
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bottlecap
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Re: Do you buy new or used cars?

Post by bottlecap » Fri Apr 20, 2018 12:02 pm

If you can’t afford it, buy your wife a new car. It doesn’t matter if you feel irresponsible. It’s her car!

Buying a new car is every bit an emotional decision. People come up with all sorts of “logical” reasons to buy new. They are not really any. People will pay an emotional premium to buy new. Dealers know this. That’s why they hire salesmen. But if you can afford new, who cares?

I’m not at a point where I can buy anything I want, but I could buy new. Probably won’t, but could. Converse to your feelings, I’ve actually become less concerned with things like color and creature comforts as I age.

JT

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Doom&Gloom
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Re: Do you buy new or used cars?

Post by Doom&Gloom » Fri Apr 20, 2018 12:03 pm

New cars with good predicted reliability and that I think I can "live with" for years. Keep them well maintained and drive them until the maintenance costs become too much to bear or until they let me down on the road. My four most recent vehicles lasted ~10 years each and had at least 200,000 miles when I put them out to pasture.

SleepKing
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Re: Do you buy new or used cars?

Post by SleepKing » Fri Apr 20, 2018 12:08 pm

We've purchased both new and used. Recently, we have gone with new Toyotas. We did a cost analysis and felt it made more sense for us to get a new car. The 'savings' off a gently used model a couple years older was not worth it at the time. I feel it depends on what is available locally and the potential level of savings.

LiterallyIronic
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Re: Do you buy new or used cars?

Post by LiterallyIronic » Fri Apr 20, 2018 12:08 pm

Hulk wrote:
Fri Apr 20, 2018 11:08 am
What do you do??
I have purchased three cars, all were under $1,000. We're talking cars at least ten years old and with at least 100,000 miles already on them.
Hulk wrote:
Fri Apr 20, 2018 11:08 am
To be specific, Im asking those who are in a great financial spot and could really do anything they wanted, comfortably.
Oh. Well, when I get into that position, I want to buy a DeLorean. So now we're talking 30+ years old, but they usually have less than 10,000 miles on them. If I couldn't get that for some reason, I'd go for a Corvette. But, again, not a current model. The current models aren't distinct enough for my taste. It'd have to be one from about 1992 or earlier.

So, used over new, now and forever. New cars are nice and all, I'm sure, but nobody ever says, "Hey, look, a 2018 Toyota Corolla!" If I'm spending that much on a car, I want to turn some heads.

bloom2708
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Re: Do you buy new or used cars?

Post by bloom2708 » Fri Apr 20, 2018 12:09 pm

jehovasfitness wrote:
Fri Apr 20, 2018 11:36 am
Have owned about 20 cars in my life and have never bought new.

We are looking at a replacement soon and going with a Jeep Wrangler.

sadly, dealers list 2017 models with 10k miles for $32k and 2018 0 miles for $32.5k basically ... so, we'll likely get a new one at some point
Do you do off-roading in your Wrangler? Curious how you landed on a Wrangler. 4 door model I assume. Co-worker has a new 4 door model with big tires. We went to lunch recently. Loud, bumpy, so much tire noise I couldn't hear the radio. Stiff ride. The two door models are worse with the short wheel base.

Clearly people love the utilitarian aspect of them. Modern day roughing it. A 1984 Wrangler rides just like a 2018 Wrangler. Look what the used ones go for. A Wrangler (2 or 4) would be just one step above a Hummer. But, they don't make Hummer anymore. :wink: But then, cars are very personal. If you off road a Wrangler, I can see it being more like a 4 wheeler that you also drive to work.
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carolinaman
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Re: Do you buy new or used cars?

Post by carolinaman » Fri Apr 20, 2018 12:16 pm

I normally buy new because the cars I like do not depreciate much and it is usually better to buy new, i.e Toyota Camry. However, we bought my wife's Toyota Avalon used. It was 2007 LTD with 38k miles when we bought in 2010. I did not buy it from Carmax but they told me that Avalon's depreciate a lot more in first few years than other Toyotas. If we ever buy another one, we will try the used route (the new are too expensive for us).

keystone
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Re: Do you buy new or used cars?

Post by keystone » Fri Apr 20, 2018 12:20 pm

Alexa9 wrote:
Fri Apr 20, 2018 11:27 am
I like Honda and Toyota. They are a bargain new but hold their value so well it's not worth it to buy used unless you negotiate a lot. The cost per year is not much different if you drive it for 10-15 years.
This is exactly as I see it, also coming from a Honda and Toyota family. I would take the cost of a car and divide it by the number of years I plan to keep it. If I were buying a car that was 5 years old, then my denominator would be 5 years less than that of the new car. This gave me a rough calculation of the cost of the car and I did not see a significant difference between new and used, assuming a 15+ year time horizon for the new car. Therefore, buying new seemed like the clear cut winner. I suppose with a shorter holding period, used might have worked out better.

ssquared87
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Re: Do you buy new or used cars?

Post by ssquared87 » Fri Apr 20, 2018 12:22 pm

If you're very specific in what options and colors you want though and you cant find it used, just go new. You'll kick yourself if you buy a car thats not exactly what you want to save a few bucks.

One of my cars was a 3 year old BMW 3 series. It had most of what I wanted but two things were off, It had AWD which ruins the handling, and it didn't have xenon lights. Those two issues always bothered me about the car. I ended up spending $2k to replace the suspension to fix the softer x-drive suspension, but I was never able to fix the xenon light issue and it always drove me crazy driving at night.

When that car was totaled, I wanted a 5 series but didn't like the older model, so I just got a new one with the exact options I want. No regrets, but if I was able to get the exact same 5 series except 3-5 years old, I would have preferred going that route than buying new. I wouldn't have enjoyed it any less than having a new one
Last edited by ssquared87 on Fri Apr 20, 2018 12:25 pm, edited 1 time in total.

runner3081
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Re: Do you buy new or used cars?

Post by runner3081 » Fri Apr 20, 2018 12:24 pm

Have never bought a new car and likely won't.

Four main reasons:
1) Insurance usually costs more with a new car
2) Licensing is always more with an new car
3) You have to pay tax on a new car (private party used car sales in our state have $0 tax)
4) We like to keep things nice. Less stress to have a used car with a few bumps and bruises than worrying about keeping a new car pristine. Also, if anyone asks about a dent or curb rash, I can always say, "the previous owner did it". :)

Keep in mind with those reasons we mainly buy used cars >5 years old.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Fri Apr 20, 2018 12:27 pm

In the early days of minivans, we decided a minivan fit our family needs very well. In test driving several times, because of my wife's short stature, a power seat soon became a "must have" - so we ordered just what we wanted (including the power seat) but without other common features often delivered when the vehicle had a power seat.

jehovasfitness
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Re: Do you buy new or used cars?

Post by jehovasfitness » Fri Apr 20, 2018 12:28 pm

bloom2708 wrote:
Fri Apr 20, 2018 12:09 pm
jehovasfitness wrote:
Fri Apr 20, 2018 11:36 am
Have owned about 20 cars in my life and have never bought new.

We are looking at a replacement soon and going with a Jeep Wrangler.

sadly, dealers list 2017 models with 10k miles for $32k and 2018 0 miles for $32.5k basically ... so, we'll likely get a new one at some point
Do you do off-roading in your Wrangler? Curious how you landed on a Wrangler. 4 door model I assume. Co-worker has a new 4 door model with big tires. We went to lunch recently. Loud, bumpy, so much tire noise I couldn't hear the radio. Stiff ride. The two door models are worse with the short wheel base.

Clearly people love the utilitarian aspect of them. Modern day roughing it. A 1984 Wrangler rides just like a 2018 Wrangler. Look what the used ones go for. A Wrangler (2 or 4) would be just one step above a Hummer. But, they don't make Hummer anymore. :wink: But then, cars are very personal. If you off road a Wrangler, I can see it being more like a 4 wheeler that you also drive to work.
Nope, no off-roading.

But, I enjoy top down or off. Just sold a 2 door because we now have 3 large dogs that require more space.

I test drove a 2018 model and it rode like a cadillac imo... granted, I drive a 2001 cherokee and sports cars all my life.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Fri Apr 20, 2018 12:28 pm

2) Licensing is always more with an new car


Never had that experience. We pay the same on our older cars as we did or would have on new car.

jehovasfitness
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Re: Do you buy new or used cars?

Post by jehovasfitness » Fri Apr 20, 2018 12:30 pm

dm200 wrote:
Fri Apr 20, 2018 12:28 pm
2) Licensing is always more with an new car


Never had that experience. We pay the same on our older cars as we did or would have on new car.
same in MD

Murgatroyd
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Re: Do you buy new or used cars?

Post by Murgatroyd » Fri Apr 20, 2018 12:30 pm

Two weeks ago bought a car for #1 son. There are a LOT of incredibly clean off lease cars out there. We found multiple 3 & 4 YO cars with 20,000ish miles on them. Half off vs new. If you want a Toyota or Honda forget it. But anything else is available. easy to find out. Go on car gurus or your choice of website, pick a model or type of car then limit the search to say no newer than 2016. Then toggle it to show lower miles first.

Two of the 3 cars we drove were indistinguishable from new. I have always bought new - I will never do that again!

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Re: Do you buy new or used cars?

Post by Jack FFR1846 » Fri Apr 20, 2018 12:33 pm

My wife and I were talking last night. Once my older son graduates college (about 1 year from now), I'm going to buy a "nice" car again. My son actually sent me this and I think it fits well with your requirements. All wheel drive. It has back seats. Plenty of power. With some hard ball negotiating, you'll get them to $40k.

https://www.autotrader.com/cars-for-sal ... lCode1=911
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Re: Do you buy new or used cars?

Post by adamthesmythe » Fri Apr 20, 2018 12:34 pm

dm200 wrote:
Fri Apr 20, 2018 12:28 pm
2) Licensing is always more with an new car


Never had that experience. We pay the same on our older cars as we did or would have on new car.
This is true in my state (AZ). The registration cost declines with time (and is related to the initial cost of the vehicle). One reason why I bought my car new in the east a couple years before I moved.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Fri Apr 20, 2018 12:38 pm

adamthesmythe wrote:
Fri Apr 20, 2018 12:34 pm
dm200 wrote:
Fri Apr 20, 2018 12:28 pm
2) Licensing is always more with an new car


Never had that experience. We pay the same on our older cars as we did or would have on new car.
This is true in my state (AZ). The registration cost declines with time (and is related to the initial cost of the vehicle). One reason why I bought my car new in the east a couple years before I moved.
Here, in Virginia, there is a personal property tax on the value of the car each year. That is different than licensing fee.

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lthenderson
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Re: Do you buy new or used cars?

Post by lthenderson » Fri Apr 20, 2018 12:56 pm

Done it both ways many times. While I think it is easier to get a better deal buying used, I find it a much easier process buying a new car. Give me two hours and I can by driving a new car off the lot. Buying used generally takes me a few days to a few weeks depending on how specific the vehicle.

Sockpuppet
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Re: Do you buy new or used cars?

Post by Sockpuppet » Fri Apr 20, 2018 1:10 pm

I bought a new car because the model I wanted was selling for more used than new.

Not sure how this is possible, but it happened.

bloom2708
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Re: Do you buy new or used cars?

Post by bloom2708 » Fri Apr 20, 2018 1:14 pm

Sockpuppet wrote:
Fri Apr 20, 2018 1:10 pm
I bought a new car because the model I wanted was selling for more used than new.

Not sure how this is possible, bur it happened.
New car dealers keep used cars with low miles. I'll call them "seed" cars. They keep the price close to new and possibly with incentives more than new.

Why do they do this? To get you to buy a new car. Look, this used one is the same, more, only a little less. The new one is a better deal. What if someone buys the used one? Well, they just sold the used one for a high price. Not a bad problem to have. What if both the used one and the new one don't sell? Well, something has to give. The used one heads off to auction. The new one gets a new incentive, etc.

Now, finding a 1 year old private party sale or going to a "used only" car dealer may likely net you a lower price.

"Seed cars". Much like farmers keep "Seed corn". :wink:
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Fletch
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Re: Do you buy new or used cars?

Post by Fletch » Fri Apr 20, 2018 1:15 pm

Do your research. Get what you want (and your wife). Life is short.
“Meaningless! Meaningless!” says the Teacher. Whoever loves money never has enough; whoever loves wealth is never satisfied with their income. This too is meaningless.

md&pharmacist
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Re: Do you buy new or used cars?

Post by md&pharmacist » Fri Apr 20, 2018 1:23 pm

Currently own 4 cars:

Ferrari F430 spider purchased on Ebay with about 6,000 miles - 5 years old when purchased, paid about 50% of original MSRP.
BMW M6 convertible purchased online with about 6,0000 miles - 4 years old when purchased, paid about 40% of original MSRP.
BMW 750Li purchased online with about 25,000 miles - 4 years old when purchased, paid about 35% of original MSRP.
Toyota Sienna Limited purchased at dealership with about 25,000 miles - 2 years old, paid about 65% of original MSRP.

I tend to go with the oldest acceptable body style to save, but the lowest mileage I can find to avoid excess repair issues. Develop a relationship with a trusted, qualified mechanic and keep up on the maintenance. Request vehicle history reports before purchasing anywhere (if vehicle used).

My worst experience (still not bad) was the purchase at the dealership. I hate wasting a day negotiating prices, muck quicker and easier to negotiate by phone. Even if you buy new, would negotiate on the phone/online rather than being pressured at the dealership.

However, with the online purchases I had to go to the local DMV to pay taxes on the purchases.

If you buy online, buy from a reputable dealership. There are scammers out there. Once the wire transfer is made, your money can be stolen. I've seen it happen to others.

Sockpuppet
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Re: Do you buy new or used cars?

Post by Sockpuppet » Fri Apr 20, 2018 1:29 pm

bloom2708 wrote:
Fri Apr 20, 2018 1:14 pm
Sockpuppet wrote:
Fri Apr 20, 2018 1:10 pm
I bought a new car because the model I wanted was selling for more used than new.

Not sure how this is possible, bur it happened.
New car dealers keep used cars with low miles. I'll call them "seed" cars. They keep the price close to new and possibly with incentives more than new.

Why do they do this? To get you to buy a new car. Look, this used one is the same, more, only a little less. The new one is a better deal. What if someone buys the used one? Well, they just sold the used one for a high price. Not a bad problem to have. What if both the used one and the new one don't sell? Well, something has to give. The used one heads off to auction. The new one gets a new incentive, etc.

Now, finding a 1 year old private party sale or going to a "used only" car dealer may likely net you a lower price.

"Seed cars". Much like farmers keep "Seed corn". :wink:
I looked for private sales within a 100 mile radius and tried to negotiate price. Could not beat the dealer offer.

People must really like Jeeps!

(Also, it was newer model so there was only 2 years of used vehicles available).

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DaftInvestor
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Re: Do you buy new or used cars?

Post by DaftInvestor » Fri Apr 20, 2018 1:33 pm

Alexa9 wrote:
Fri Apr 20, 2018 11:27 am
I like Honda and Toyota. They are a bargain new but hold their value so well it's not worth it to buy used unless you negotiate a lot. The cost per year is not much different if you drive it for 10-15 years.
This is what I do. Last purchase was a brand new Toyota Camry - bought under invoice priced new for a similar price to 2-year old models and only slightly more than a 4-year old used car.
I also like Subaru.
Toyota, Honda, Subaru hold their value so well that it is hardly worth buying used especially if you keep for 10 years. Especially if you are buying a car that has higher inventory with large dealer incentives (Camry was in this category last year - very ease to buy under invoice price).
In any case - if you can afford it - why not - provided you are hitting all your savings goals.

Dottie57
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Re: Do you buy new or used cars?

Post by Dottie57 » Fri Apr 20, 2018 1:40 pm

I have always bought new.

I am probably going to buy a new vehicle next week. It will be a car which is comfortable to drive, has as many safety features as I can reasonably get. No fancy hubcaps. I know the financial guy will try to sell everything gap insurance, an extra warranty, etc.which I will not buy. I keep my cars for 10+ years. Car will be bought with cash.

learning_head
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Re: Do you buy new or used cars?

Post by learning_head » Fri Apr 20, 2018 1:50 pm

My main reason to buy new is that you never really know what accidents / damage the used car had. Not all are reported.

Other, smaller reasons:
- recent price difference between new vs used does not seem as big as it used to be
- latest safety features
- I'd keep a car that was bought new for longer, meaning less car buying/selling transactions over lifetime
- newer cars start breaking later, providing longer issue-free ownership

learning_head
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Re: Do you buy new or used cars?

Post by learning_head » Fri Apr 20, 2018 1:59 pm

md&pharmacist wrote:
Fri Apr 20, 2018 1:23 pm
... 50% of original MSRP ... 40% of original MSRP ... 65% of original MSRP.
I always view MSRP about as useful as "Provider Charges" line on medical bills...

Example from a recent one: Provider charges $2,007, "Contractual allowance" and other meaningless (to me) deductions $1657. Insurance paid $100, patient due $250. I guess insurance and I combined saved 83% :-)

FootballFan5548
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Re: Do you buy new or used cars?

Post by FootballFan5548 » Fri Apr 20, 2018 2:17 pm

To OP, last year (exactly last year, April 30 we bought) we were in the same boat as you. We were between a 1 year old new model XC90 for $45k with 10,000 miles, or a brand new GMC Acadia Denali, with all the bells and whistles for $45k with no miles. We went back and forth and back and forth. She wanted the Volvo XC90.

We ultimately went with the new Acadia, got a slightly better deal on it, and here we are one year later, with 7,000 miles on it, and still below the mileage of the Volvo.

VonRyan
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Re: Do you buy new or used cars?

Post by VonRyan » Fri Apr 20, 2018 3:27 pm

I am in my 50s and still buy cheap used cars, for lots of reasons: I am cheap, I am relatively poor in my Northern Virginia county, there is a steep annual personal property tax on cars where I live, I don't drive very far from home, I don't drive to work (use mass transit), and I rent cars for trips. About being cheap--I just do not personally find any value in a new car.

My method: I research a lot, trying to find what is older and still reliable, and watch the market closely. I prefer to find something sold by someone I know or someone in the neighborhood but I have purchased cars on EBay and Craigslist. The last car I bought on-line cost $2,900 and survived with me for 14 years. The one before that cost $6,500 and is still going 15 years later.

I just bought a 11-year-old Camry for $4,000. It was under 100,000 miles and I knew the owners. Hope to keep it for 10 years.

investor4life
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Re: Do you buy new or used cars?

Post by investor4life » Fri Apr 20, 2018 4:00 pm

I've bought both new and gently used. In market for a car again. This time considering new (or CPO) to avoid possible lemons still circulating from Houston and Miami floods.

3dream3
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Re: Do you buy new or used cars?

Post by 3dream3 » Sat Apr 21, 2018 11:22 am

Our last two cars were new and previous to that was used. Similarly, I think that if we will be spending a lot of money on a car, we want what we want from colors, options, etc. Buying used wasn't bad at all but it also just seemed that we hit higher mileage faster of course which meant other maintenance costs. Also, when we compared the same model used vs new, we were willing to pay the additional difference for new since it wasn't really too far off than what we're comfortable with. Additionally, It was actually nice not having to spend/do much on the cars over the last few years and having a warranty. Other than fluid changes, I do most of the other work myself so it is a nice break not working on cars during this time. I think the other key here is also being able to pay off a brand new car in 3 years or less makes a difference too. I had a coworker that bought a new car but also financed over 7 years! :oops: I didn't think that was even possible.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Sat Apr 21, 2018 12:13 pm

had a coworker that bought a new car but also financed over 7 years! :oops: I didn't think that was even possible.
Yes - seven year new car financing has become very, very common.

theplayer11
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Re: Do you buy new or used cars?

Post by theplayer11 » Sat Apr 21, 2018 12:18 pm

bought new when I was younger..I'm 53 now and my next purchase will be used. Buying new is wasting a lot of money IMO...

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tadamsmar
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Re: Do you buy new or used cars?

Post by tadamsmar » Sat Apr 21, 2018 12:37 pm

I prefer to buy used.

There are 2 features I want: (1) electronic stability control (ESC), and (2) durable seat upholstery like leather is similar.

The first because it's one of the most important safety features in history. The other because the used car seats will look like new. ESC is standard on all cars after the 2011 model year and available on many non-economy trims before that.

You usually find both features on the more luxury trims.

Helo80
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Re: Do you buy new or used cars?

Post by Helo80 » Sat Apr 21, 2018 1:23 pm

learning_head wrote:
Fri Apr 20, 2018 1:59 pm
md&pharmacist wrote:
Fri Apr 20, 2018 1:23 pm
... 50% of original MSRP ... 40% of original MSRP ... 65% of original MSRP.
I always view MSRP about as useful as "Provider Charges" line on medical bills...

Example from a recent one: Provider charges $2,007, "Contractual allowance" and other meaningless (to me) deductions $1657. Insurance paid $100, patient due $250. I guess insurance and I combined saved 83% :-)

And everybody made a profit along the line... amazing how this works.

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