Do you buy new or used cars?

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Helo80
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Re: Do you buy new or used cars?

Post by Helo80 » Sat Apr 21, 2018 1:30 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, but it happened.

People have it in their head that you can "save so much money" by buying a car 1-3 years old. While it's nearly universally true that a registered vehicle will go for less money than it went for new, so many cars and trucks are made so reliably today that people regularly shop "used" thinking they are getting a better deal than they are. Keep in mind, manufacturers incentives never apply to used vehicles.

There are certain makers and models that fall much quicker than others within 1-3 years such that if you're okay with going used, you can save some coin. I think over half of BMW's new car sales now are for leases --- such that BMW shoots themselves in the foot as a constant supply of 3-year off leases are always available. But, BHs tend to gravitate around brands and models that hold their values well such that I think it's a mistake to buy said cars used.

It creates an interesting marketing dynamic for sure.

I actually do wonder how many people whom regularly buy 1-3 year old cars to save money actually price out a new, comparably equipped model --- not MSRP on a website, but with a local dealer and just get a quote. I'm not singling anybody out here, just saying that if you're going to be spending $15K+ on a used car, it's worth determining if the new versus used is worth it.

goodlifer
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Re: Do you buy new or used cars?

Post by goodlifer » Sat Apr 21, 2018 2:54 pm

I have only purchased new cars. I want what I want and we usually have to special order our cars. We also financed our last two cars. With 0% on one car and .9% financing on the other, I had better things to do with my cash.

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friar1610
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Re: Do you buy new or used cars?

Post by friar1610 » Sat Apr 21, 2018 3:24 pm

I've bought both new and used over the years. But when used they've been realatively recent model years (1-3 years old) with low mileage (<20k miles). Like you, I set a $40K limit on the purchase of my most recent one about 6 weeks ago. I was paying cash, could have afforded more but saw no reason to pay that much.

I was replacing a 2005 Volvo XC70 bought used in 2006. We wanted another wagon, not a big SUV, although we did look at some smaller SUVs. Specifically, we looked at new Buick TourX, Subaru Outback, Honda CRV and Toyota RAV4. Also looked at used Volvo V60, XC60 and XC70. (New Volvos have pretty much priced themselves out of my market.) Ended up with a 2015 XC70 w/16,500 miles at a price definitely under $40K. If they still made the XC70 I might have stretched the $40K limit to buy one but there were no new Volvo models I liked well enough to do that for.

After more detail than you probably wanted, the bottom line is that I was open to either new or used but went with used because that was the car I really wanted.
Friar1610

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yukonjack
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Re: Do you buy new or used cars?

Post by yukonjack » Sat Apr 21, 2018 5:16 pm

learning_head wrote:
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
This. In the end it may or may not make a difference but the fact is when you buy used you don’t really know what the vehicle has been through. And since I almost always buy Honda and drive them for 10ish years I choose to buy new and get what I want. The only exception to this is when I have purchased a used vehicle from a family member.

harrychan
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Re: Do you buy new or used cars?

Post by harrychan » Sat Apr 21, 2018 7:11 pm

I'm in my upper 30's and between my wife and I, we bought 3 new cars. First car was probably the worst decision. Fresh out of college and my corolla was totalled. I took the money and used it as a downpayment for a new car. I didn't have much credit so I think I paid upwards of 15% interest. After a year, I refinanced it but the damage was done. So despite negotiating out the door price, I probably paid $3000 in interest. The other two cars had 0% and .9% respectively so it was ok. Now our cars are paid off and the only debt we have is our mortgage. In the future, I will only buy 2 year old cars.
This is not legal or certified financial advice but you know that already.

SrGrumpy
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Re: Do you buy new or used cars?

Post by SrGrumpy » Sat Apr 21, 2018 8:14 pm

I have owned 2 cars in my life, each 10 years old when I bought them. My current one, a BMW 318ic is a 1995. I'll probably ditch it at the end of the year when it fails its smog test and get a $1500 (or so) California low-income subsidy to buy another used convertible for well under $8,000.

Quite frankly, I would rather do Uber for a while, rather than commit upwards of $8000 in capital. I also think new cars look rather ugly and all appear to come off the one assembly line.

darrvao777
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Re: Do you buy new or used cars?

Post by darrvao777 » Sat Apr 21, 2018 8:27 pm

I buy new and pay for it in cash.

Tribonian
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Re: Do you buy new or used cars?

Post by Tribonian » Sat Apr 21, 2018 8:44 pm

We’ve had good luck buying the prior model year new in January when many dealers are looking to clear spaces on the lot for the newer model year. Basically getting the full touring or whatever package for base price.

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pennstater2005
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Re: Do you buy new or used cars?

Post by pennstater2005 » Sat Apr 21, 2018 8:53 pm

As with all threads like these it is so very subjective......

I was looking at new 2018 Toyota Camry LE's which were $24k. I looked for a used one and found a mid 2015 Camry LE with 30,000 miles for 13K. I just couldn't stomach paying 11K more for something only 2.5 years newer. I know it's because of the cheaper model but that amount of depreciation just blows my mind.

That said, I always buy used 1-3 years old.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

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jimmyq
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Re: Do you buy new or used cars?

Post by jimmyq » Sat Apr 21, 2018 8:55 pm

I prefer to buy new, but pay cash and hold on to them for a while. My last car was a Civic which I kept for 17 years. Current car is an Accord and have had it for 5 years and counting.

Traveler
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Re: Do you buy new or used cars?

Post by Traveler » Sat Apr 21, 2018 8:59 pm

I've only had four cars in my ownership life (age 18-46) and the last three were bought new. I tend to keep them a long time. Last car was 12 years old with >200K miles on it. My current car is almost four years old and only has 20K miles. When I bought the latest one, used cares weren't much less expensive than the new ones. I'm not opposed to buying a used car and will consider it next time I need/want to buy something different. Also, I financed the middle two cars but paid cash for this last one. I will never have another car payment.

hmw
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Re: Do you buy new or used cars?

Post by hmw » Sat Apr 21, 2018 9:27 pm

It's a mix for us.

We bought our Subaru new, and bought our Mercedes used. Japanese cars tend to depreciate very little in the first couple of years, and I didn't think it made much sense buying used.

cashmoney
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Re: Do you buy new or used cars?

Post by cashmoney » Sat Apr 21, 2018 10:28 pm

learning_head wrote:
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


You left out the other main reason to buy new - the new care smell !

billy269
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Re: Do you buy new or used cars?

Post by billy269 » Sat Apr 21, 2018 11:20 pm

runner3081 wrote:
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.
Completely agree. I buy 3-5 year old cars with under 50k miles for almost half off new. Also like the perk of having most of the toxic new car smell finished with off gassing.

PhilosophyAndrew
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Re: Do you buy new or used cars?

Post by PhilosophyAndrew » Sat Apr 21, 2018 11:25 pm

For most of my life, used. As I’ve approached or reached financial independence, new — in part because the expense is less of a burden, in part because safety and convenience automotive technologies are improving so rapidly.

Andy.

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randomizer
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Re: Do you buy new or used cars?

Post by randomizer » Sat Apr 21, 2018 11:27 pm

Neither.
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Dandy
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Re: Do you buy new or used cars?

Post by Dandy » Sun Apr 22, 2018 7:18 am

Being retired and not usually putting much miles on cars is my current situation. In my younger days I usually bought used cars or cheap new cars e.g. a ford Pinto. :oops: As I gained some financial independence and had to buy cars for the whole family I bought an occasional new car and kept my eye out for decent used cars. e.g. a friend's father in law passed away after buying a new Camry and I said if he was going to sell it let me know. Another time a co-worker had a nice relatively new Malibu 2 door and needed to buy a car better suited carry his new born. Again I suggested I was interested.

In retirement I decided to buy a new Forester which was rated high for safety. Since I would be driving my grand kids often that tilted me toward safety. When our second car needed to be replaced I bought a 3 year old Kia Soul with 40k miles. This was for around town and it is my wife's favorite car ever.

My car buying philosophy has changed from trying to squeeze the maximum dollar value, miles and years owned to making sure I have a car that is safe. I think if you can afford to, paying up for safety features is a good use of your assets. If it saves even on minor accident it could pay for itself in dollars and/or the time and trouble of dealing with insurance companies, auto body shops, arranging for alternate transportation, time spent etc. I think the wise use of money when it comes to vehicles has tilted toward safety and accident prevention vs the traditional get the most value by driving the car for decade(s) or 150,000 miles. I goes against my frugal nature but I have come to that conclusion.

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Go Blue 99
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Re: Do you buy new or used cars?

Post by Go Blue 99 » Sun Apr 22, 2018 9:03 am

We've always bought new Asian cars and kept for 10+ years. We also buy fully loaded as I like the tech features and having all of the safety options.

With our next car, we are (gasp) actually considering leasing a European car. We'll see if I actually go through with it.

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Toons
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Re: Do you buy new or used cars?

Post by Toons » Sun Apr 22, 2018 11:00 am

For 40 years we bought a new one about every ten years (base model)
Age 67
We saved and invested for those decades
We bought a new one in
2011,12,13,15,17,18
traded each time.
The clock is ticking,
:mrgreen:
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dustinst22
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Re: Do you buy new or used cars?

Post by dustinst22 » Sun Apr 22, 2018 2:16 pm

Toons wrote:
Sun Apr 22, 2018 11:00 am
For 40 years we bought a new one about every ten years (base model)
Age 67
We saved and invested for those decades
We bought a new one in
2011,12,13,15,17,18
traded each time.
The clock is ticking,
:mrgreen:
Haha I like it! Might wanna consider a lease :)

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jabberwockOG
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Re: Do you buy new or used cars?

Post by jabberwockOG » Sun Apr 22, 2018 3:47 pm

Buying a new car is almost always significantly more expensive than buying the same model used car 2-3 years old. Toyota and Honda are no different than any other used car except they are usually more popular and in demand used cars so it usually takes more patience and work to find and buy a used Toyota or Honda at a fair price but it certainly can be done.

Our last 5 cars have been low mileage 2-3 year old used car purchases either bought privately and from dealer - in each case the discount from new cost (not list price) was very significant. But it took quite a bit of research, patience and effort waiting for the right car and then executing on the deal at a fair price.

Used cars are always priced at silly high retail in order to maximize profits from the few suckers who roll up to the lot and are foolish enough to pay list or close to list price. It is way better to buy new if you are not willing to do 1) the work to research what your target purchase car actually sells for as a 2-3 year old used car; 2) drive a hard bargain and negotiate for a fair price.

In most cases buying a car comes down to time and effort versus cost equation. The highest effort least cost deal is to sell your old car privately and then find and buy a reliable gently used car to replace it. The easiest buy (and the very most costly option) is to go down to the new car dealer, buy a new car and trade your old car into them. That transaction is easy and fast but it is expensive...anyone telling themselves they saved money in this kind of transaction is kidding themselves.

It should also be said that in general buying new with a warranty is safer than buying used with no or short lived warranty. But there are exceptions - used cars are not always riskier than new cars - go check out the oil/fuel dilution issue posts on 2016-2017 Honda CRV forum. And there are other well know examples where some new car purchases are a nightmare.

island
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Re: Do you buy new or used cars?

Post by island » Sun Apr 22, 2018 3:56 pm

We've always bought new, paid cash for all except early on when couldn't afford to. Always keep long term, nothing fancy. I couldn't care less what I drive as long as it's safe, presentable, and runs well. So when time to replace the new one I'm happy to keep the old.
We can afford some very expensive cars, but not interested.

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msi
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Re: Do you buy new or used cars?

Post by msi » Sun Apr 22, 2018 5:41 pm

I used to lease until buying CPO for my current car. Really come out ahead this way.

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Re: Do you buy new or used cars?

Post by honduranhurricane » Sun Apr 22, 2018 6:06 pm

We have 2 cars, one purchased new, one used (2 years old 23k, no major problems). We plan to replace the 'bought new' car when wife retires (will have nearly 150-160K mile on it then) in a few years then replace my used car with a new one when I retire a year or two later.

Up to my early/mid 40's never bought a new car. Now I lean towards them for the reasons others have posted; know how they are treated, price drop is not material enough to push me to used , can pick the features we want etc.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Sun Apr 22, 2018 6:09 pm

Folks here seem to be moving is different directions. Some have purchased new during working years and used or older used in retirement (like DW and I).

Others bought used during working years - then decided new in retirement.

likegarden
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Re: Do you buy new or used cars?

Post by likegarden » Sun Apr 22, 2018 6:13 pm

We always buy new and then drive the cars for 11 to 12 years / 110,000 miles. When repairs get too much, at around 110,000 miles, then we sell and buy new. This works for us.

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

Post by 3funder » Sun Apr 22, 2018 6:18 pm

I'm 33. Up until this point, I have purchased gently used vehicles (Toyota/Honda) and found each to be a good value. That said, my wife and I recently purchased a new Toyota Sienna. We were careful about what we paid, and we'll drive it a long time, just as we did with our other vehicles. We paid cash for the Sienna, but any loans we took for the other cars were modest in both amount, duration, and interest rate. Both approaches work just fine as long as you do your homework beforehand, which, thanks to the internet, is much easier to do than it was 20-25 years ago.

capjak
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Re: Do you buy new or used cars?

Post by capjak » Sun Apr 22, 2018 6:37 pm

ssquared87 wrote:
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
My last care was new but I usually bought used certified. The BMW had what I wanted mostly and it was the end of year model plus came with 4 years 50,000 miles of maintenance (includes everything but tires). I have a 2013 BMW 328 Xi M Sport AWD and really enjoy the HUD but agree about not getting the Xenon lights, the old headlights are less than good.

Pigeon
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Re: Do you buy new or used cars?

Post by Pigeon » Sun Apr 22, 2018 6:54 pm

We've always bought inexpensive, new, base model Toyotas or Nissans and kept them for a very long time. In recent years, I'm leaning toward a Subaru Forester with Eyesight. My Corolla is terrible in the snow, much worse than any other car I've had. It will be by far the most expensive car we've ever bought, so we'll see if I can actually force myself to do it.

dknightd
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Re: Do you buy new or used cars?

Post by dknightd » Sun Apr 22, 2018 7:02 pm

My last car purchase was used. 2002 BMW 330cic (convertible). That was 6 years ago. It was the cheapest car I've bought in 20+ years. Before that I bought new, mostly because a similar used vehicle would have cost 1/2 as much. Why would I buy a 10 year old car for 1/2 the price of a new one. I figure 20 years for a car. Before that I bought used because that was all I could afford.

GCD
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Re: Do you buy new or used cars?

Post by GCD » Sun Apr 22, 2018 7:41 pm

When your income goes up and you can spend money on things you previously found frivolous there's always an acceptance curve. It takes awhile to get used to it.

Until I was 38 I bought used cars. My wife and I jointly bought a nice new F150 14 years ago and we still have it. Good move deciding on a SUV instead of the minivan!

If you have the money there's no reason not to get a brand new car. It's ok to live a little.

GCD
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Re: Do you buy new or used cars?

Post by GCD » Sun Apr 22, 2018 7:52 pm

jabberwockOG wrote:
Sun Apr 22, 2018 3:47 pm
In most cases buying a car comes down to time and effort versus cost equation. The highest effort least cost deal is to sell your old car privately and then find and buy a reliable gently used car to replace it. The easiest buy (and the very most costly option) is to go down to the new car dealer, buy a new car and trade your old car into them. That transaction is easy and fast but it is expensive...anyone telling themselves they saved money in this kind of transaction is kidding themselves.
This is absolutely true and it's what these used car threads always come down to. People who are still scrounging for money, or just have it in their nature to get the very best deal they can, spend countless hours finding a great and cheap used car. Then you have people who buy new and don't bargain because their time is worth more than what it would take them to negotiate a better deal. It all depends on where you are in life. Presumably most of us start to value our time more than money as we get older.

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

Post by md&pharmacist » Sun Apr 22, 2018 8:29 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% :-)
Ha! Yes, since my services are discounted that much maybe next time I buy a car with 6,000 miles I'll as for an 83% discount. It's only fair.

But really, paying $54,000 for a BMW with 6,000 miles and an MSRP of $130,000 delivered to my door was nice. It's a spectacular car but unfortunately I purchased the Ferrari a few months prior, so it blows the 500 hp V10 M6 out of the water. Oh how life is a struggle.

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jabberwockOG
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Re: Do you buy new or used cars?

Post by jabberwockOG » Sun Apr 22, 2018 9:44 pm

GCD wrote:
Sun Apr 22, 2018 7:52 pm
jabberwockOG wrote:
Sun Apr 22, 2018 3:47 pm
In most cases buying a car comes down to time and effort versus cost equation. The highest effort least cost deal is to sell your old car privately and then find and buy a reliable gently used car to replace it. The easiest buy (and the very most costly option) is to go down to the new car dealer, buy a new car and trade your old car into them. That transaction is easy and fast but it is expensive...anyone telling themselves they saved money in this kind of transaction is kidding themselves.
This is absolutely true and it's what these used car threads always come down to. People who are still scrounging for money, or just have it in their nature to get the very best deal they can, spend countless hours finding a great and cheap used car. Then you have people who buy new and don't bargain because their time is worth more than what it would take them to negotiate a better deal. It all depends on where you are in life. Presumably most of us start to value our time more than money as we get older.

I agree. I have no issue with the "trade in old car and buy new car" method folks as long as they are clear eyed about the nature of the transaction and what it is costing them. Even though cost is significantly less for sequentially buying and owning used cars instead of new cars this is not for everyone, especially not for folks that are not mechanically inclined and/or have no interest in cars as anything other than a transportation appliance.

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Portfolio7
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Re: Do you buy new or used cars?

Post by Portfolio7 » Sun Apr 22, 2018 11:50 pm

I bought used when I was single.

When I married, we bought two new toyotas. Sienna went 16 years and 265K miles before a massive oil leak while traveling, and I ground the gears to make it to the hotel. We gave it to a radio station and rented a car back. The Camry went 20 years and 305K miles, engine still strong, replaced because it needed multiple expensive safety/comfort repairs beyond my capability (or available time) to manage. TCO was pretty darn low.

We replaced one car with another toyota, 4Runner more upscale. By the time we were ready to replace the 2nd car, cash flow was tighter than we'd anticipated, and I didn't see a car I really wanted to buy, so we leased one. I consider the flexibility worth it - I decided I really like the car, but if a better model comes out in the 3 year lease period, that's an option too.

About a year later, we realized we could sell the toyota for $7K more than we owed on the loan. We did that and purchase a used Lexus that was about 10 years old, but great reputation for reliability, and I expect it'll go another 100K miles easy. If all works out, I'll probably give it to my son when he leaves college.
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LawEgr1
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Re: Do you buy new or used cars?

Post by LawEgr1 » Mon Apr 23, 2018 7:23 am

Very early 30's here, married. Until recently, neither one of us had to buy a car until my 2004 was getting to be challenging to drive. I couldn't stomach a new vehicle purchase with the features I wanted, so I went used and bought a 1.5 year old '14 Taurus that I had to haggle on a bit but had a great deal on for the ride, space and features.

Fast forward to last weekend, the '06 other car was just replaced. Again, we wanted to stay in the 20-25k miles range with specific features for under or around $20k. Long story short, we ended up settling on a brand new 2018 Sonata because they had $4,000 in rebates on them already, which brought the OTD price down into our range for something brand new with more features and a great warranty. :shock:

Note we drive cars for quite a while (10+ years -see previous model years) and plan to do so with these.

I realize we're four days in, but we're very pleased with the amount of content we got on that vehicle at that price. Pretty great.


So that's my long way of saying, we buy both pending conditions of the market / features / availability.

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fandango
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Re: Do you buy new or used cars?

Post by fandango » Mon Apr 23, 2018 7:32 am

I negotiate hard and buy new Toyotas or Hondas. Drive 200,000 miles (about 12 to 15 years), then sell at a premium and do all over again.

Nowizard
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Re: Do you buy new or used cars?

Post by Nowizard » Mon Apr 23, 2018 7:43 am

I am not a car person, my wife is to the extent that she wants the latest features, though that may mean a sporty car at one point or a very practical one at another. For example, she now drives an Odyssey even though our children are adults ("Why not? It has great gas mileage, uses regular, drives like a car and has lots of space when we want to haul things or several other people"). That being said, we have always bought new cars and driven them to about 100,000 miles, me, or 80,000 miles, her. That takes about nine years or six years for us.

Tim

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TierArtz
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Re: Do you buy new or used cars?

Post by TierArtz » Mon Apr 23, 2018 9:56 am

New (used if temporarily not living in the mainland US). Our present vehicles and last two purchased are a 2005 Lexus SUV and a 2010 Toyota minivan bought when we were expecting the 1st and 3rd baby. We saved up cash for the Lexus and used a really low-rate 3-year loan for the van rather than sell taxable investments. The vehicles presently have about 85,000 and 90,000 miles, respectively. We'll likely keep them until they become unworthy to repair or the kids leave home. I'm thinking that stage in life may include an Avalon (vs van) and a 3/4 ton pickup pulling a camper (vs SUV).

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jharkin
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Re: Do you buy new or used cars?

Post by jharkin » Mon Apr 23, 2018 10:38 am

Ive bought new and used over the years... really depends on the situation each time.

When our first kid came along we bough a used SUV CPO because the deal was good and it fit our budget. The last 2 vehicles (Honda and Toyota) we bought new because the specific models we bought hold value so well there is little financial benefit to used.

(If I was buying European luxury brands I might be less inclined to buy new because of the steep deprecation. But not toooo used because of the expensive maintenance as they age...)

In general I lean more toward new because we drive a lot and I'm picky about cars. I cant stand to drive around in a model I dont like, without features I want, or an ugly color just to save a buck.

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TeamArgo
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Re: Do you buy new or used cars?

Post by TeamArgo » Mon Apr 23, 2018 11:01 am

I was 54 years old before I bought my first (and only) new car. Before that I have purchased used cars from dealerships, directly from previous owners, from used car lots, from Enterprise Car Sales, from government auctions, and from a wholesale auction house that had a retail auction once a month. All in all, the only lemon was a cheap one from a used car lot when I was desperate. The worse deal was from CarMax where I paid too much for the car I now own, but I was able to get a rare option that was no longer available (solar cells and a sunroof on a Prius).

What have I learned? Well, the new car lost more value by far during my ownership, including several cars I "drove into the ground" and ended up selling them directly for scrap. When buying used cars I have been unafraid to walk away from anything odd (a puff of blue exhaust, a rattle or odd ticking, an odd odor, unexplained damage, etc.). I have also been well served by asking people to come along who knew more about automobiles than I, until I learned enough to know the warning signs myself. Whenever I spend money on an inspection or a repair, I mentally compare the repair cost to what a payment cost would be, and then go ahead and spend the money and "keep on truckin' ". Finally, I run a vehicle until it has a BIG problem (say a transmission failure or bad internal engine failure) where the repair cost would come close to or exceed the value of the vehicle. That is when I tow them away for scrap.
I used to think I was indecisive, but now I'm not so sure.

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dm200
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Re: Do you buy new or used cars?

Post by dm200 » Mon Apr 23, 2018 11:10 am

I had an uncle (recently deceased at age 100) who (as long as I can remember back into the early 1950's) always bought a new car every two years. He and my aunt lived modestly - but that was a high priority for him. He also took excellent care for the cars. When one of his sons was old enough, the son would get the two year old car from his father - win/win.

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Re: Do you buy new or used cars?

Post by deltaneutral83 » Mon Apr 23, 2018 11:31 am

I love the emotional aspects of car experiences even from the most staunch conservative BH. "I pay cash for new and drive for 12 years." I gather that these statements are justifications for buying new. These are emotional justifications, but not mathematical as this does not preclude you from buying 2-3 years old, and driving until the car is 12 years old, while pocketing the difference of brand new and 2-3 years old.

Yes, I know Toyotas and Hondas hold value better used than luxury cars and margins are thinner on these used. The math still stands (on the whole), and if the money is not an issue, then that's fine too. The statement (and sometimes quite forcefully made I might add) that driving brand new for 12 years as a way to justify the math of buying new does not compute. Was telling a buddy of mine about the loaded funds he'd been purchasing in his taxable. Told him you've already paid the front end loads, only thing that matters now is do you think your funds will beat their index at NAV, loads have already been spent, don't factor them into why you continue to hold if you know indexing is the way to go.
Last edited by deltaneutral83 on Mon Apr 23, 2018 11:32 am, edited 1 time in total.

ddurrett896
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Re: Do you buy new or used cars?

Post by ddurrett896 » Mon Apr 23, 2018 11:32 am

Hulk wrote:
Fri Apr 20, 2018 11:08 am
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.
Only drive Toyota and Honda and purchase new. They don't depreciate and the last vehicle we purchased new was about $3k more than the 3 year old like vehicle.

Factor in financing options on the new (normally 0%) and it's a no brainer.

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Re: Do you buy new or used cars?

Post by Whakamole » Mon Apr 23, 2018 12:44 pm

I've only bought new, twice. Both were cars I intended to keep for a long time (10+ years), the current car is still going strong as it closes in on 150K miles. Both cars were inexpensive "economy" cars but that is what I prefer to drive anyway.

I think if you are buying Toyota or Honda (or Subaru if you are living in the Pacific Northwest), it makes sense to buy new because recent models cost almost the same, and I think it's worth it to pay a little extra and know how the car has been treated.

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Re: Do you buy new or used cars?

Post by gator1 » Tue Apr 24, 2018 6:51 am

I always buy used with cash. And I am always patient and wait for a good deal. Cars depreciate in value, and with this approach I feel I suffer the least amount of depreciation. My "new" car I just bought is a Lexus GS 350 sport sedan with every feature add-on you could imagine. I got it for $1,500 less than the person was asking for it, and it was in the color I wanted (White). It looks basically brand new, but is 8 years old. I get tons of compliments on how beautiful the car is and the handling and ride comfort is phenomenal. My only complaint is absolutely terrible gas mileage(like, old SUV gas mileage). The best part: This car was almost $70,000 brand new and I got it for 75% off that. Several years from now, I will probably "upgrade" into the exact same thing.

For comparison: Neighbor just bought a brand new Honda CR-V. It's fugly looking, they paid over $12,000 more than I paid for my Lexus, and it's a boring looking and boring vehicle to drive. To each their own, of course.

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Re: Do you buy new or used cars?

Post by bloom2708 » Tue Apr 24, 2018 8:24 am

gator1 wrote:
Tue Apr 24, 2018 6:51 am
I always buy used with cash. And I am always patient and wait for a good deal. Cars depreciate in value, and with this approach I feel I suffer the least amount of depreciation. My "new" car I just bought is a Lexus GS 350 sport sedan with every feature add-on you could imagine. I got it for $1,500 less than the person was asking for it, and it was in the color I wanted (White). It looks basically brand new, but is 8 years old. I get tons of compliments on how beautiful the car is and the handling and ride comfort is phenomenal. My only complaint is absolutely terrible gas mileage(like, old SUV gas mileage). The best part: This car was almost $70,000 brand new and I got it for 75% off that. Several years from now, I will probably "upgrade" into the exact same thing.

For comparison: Neighbor just bought a brand new Honda CR-V. It's fugly looking, they paid over $12,000 more than I paid for my Lexus, and it's a boring looking and boring vehicle to drive. To each their own, of course.
Sshhh. Used Lexus vehicles are a hidden gold mine. Don't tell everyone. :wink:

Are you using Premium fuel in your GS? AWD model? If I use non-premium in our 2 LS, gas mileage drops quite a bit and they don't run quite as smooth. The AWD GS won't get quite as good gas mileage. You should still get 18-19mpg avg in town driving. New air filter, clean mass airflow sensor.
"We are here not to please but to provoke thoughtfulness" Unknown Boglehead

clutchied
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Re: Do you buy new or used cars?

Post by clutchied » Tue Apr 24, 2018 10:55 am

as I became more financially secure I've become much more comfortable with used cars.

The other issue too is that cars from when I was younger are getting older now and since I kinda grew up with them I find them to be a comfortable "risk".


I love used cars right now.

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Re: Do you buy new or used cars?

Post by audioaxes » Tue Apr 24, 2018 11:22 am

always used for me. The few features I really care about are pretty easy to find in most later model cars and as long as the car isnt green or some funky color Im fine with it. I am continually lowering the maximum amount of miles I'd accept a used car to have as I have put a greater premium and avoiding constant repair issues.
I used to buy used cars with 80-100K miles but now Id probably wouldnt touch a used car over 45K miles, unless its something indisputably dependable like a Camry.

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Re: Do you buy new or used cars?

Post by jharkin » Tue Apr 24, 2018 11:51 am

deltaneutral83 wrote:
Mon Apr 23, 2018 11:31 am
I love the emotional aspects of car experiences even from the most staunch conservative BH. "I pay cash for new and drive for 12 years." I gather that these statements are justifications for buying new. These are emotional justifications, but not mathematical as this does not preclude you from buying 2-3 years old, and driving until the car is 12 years old, while pocketing the difference of brand new and 2-3 years old.
But the thing is, on some Honda and Toyotas the differnece between new and 2 years old is practically nothing. People who dont own them tend to not believe it, but its true.

Toyota ownership is a very different world from BMWs that depreciate 50% in the first 3 years.

Prime case in point is the Tacoma pickup. They fly off the lot and you almost always have to order and wait for one. I bought mine, paid just over invoice, and had to wait 6 weeks for delivery. When it was a year old I was getting dealer offer letters trying to buy it back for what I paid new. Used ones a year old where selling for more than I paid new- im completely serious! - probably a reflection of the short supply. I would look at it every 6 months and it was only when it got over 2 years old that the KBB used dealer retail price estimate was less than new invoice.

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