Who is buying 1-3 year old used Toyotas and Hondas?

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Calico
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Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 12:55 pm

This is mainly a curiosity question. I've been car hunting and the Toyota Corolla and Honda Civic on my short list I figured I would buy new if I choose those cars. This is because the price for one that is 1-3 years old really isn't that much different from new (less than a $1000 difference for the trims I am looking at and in some cases, the trim I am looking at is cheaper new than a used one of a higher trim). I've been paying attention to commercials about the cars too and they advertise their high resale value as a reason to buy new. It just got me wondering, who is actually buying these lightly used cars that are nearly the same price as new and why? Does anyone know or do any of you buy these cars (they are a little cheaper than new after all, just not enough for my taste).

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Texanbybirth » Tue Apr 23, 2019 1:04 pm

Maybe they're really good at negotiating and get them for way cheaper than what you're seeing. I'm not sure where you're looking at the price, though.
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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 1:06 pm

That could be true and I didn't think of it. I am looking at prices on Carmax and Carfax as well as CPOs at dealers and comparing them to MSRP on the Toyota and Honda websites. Private sellers would be cheaper.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by RickBoglehead » Tue Apr 23, 2019 1:09 pm

Any car that is traded at a year is either a lemon, or the buyer isn't bright. There is no reason to buy a 1 year old vehicle.

The only exception might be someone that gets great deals and flips cars, like a family member. We can buy a Ford for a great price, and have to hold it for 6 months. However, I have no desire to flip a car every 6 months to make a small amount of money.
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by bloom2708 » Tue Apr 23, 2019 1:14 pm

The 1,2 and 3 year old Corolla or Civic are all within $1,000 of new?

Hmmm.

Buy new if that is what you want. Otherwise look for a private party car. Craigslist, eBay, Cargurus. Use every resource.

Maybe cast a 50 or 75 mile wide net. No reason really to find a "deal" if you want to buy new.

I did a Cargurus search in my area. 100 mile range. 2016 to 2019 for the year.

You can see the pattern about $18 to $20k new for a Corolla (LE). A 2016 with 25k miles is ~14k. 50k miles is ~$12k. You have to make sure to compare apples to apples. L, LE and other various higher end packages.
Last edited by bloom2708 on Tue Apr 23, 2019 1:34 pm, edited 2 times in total.
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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 1:21 pm

For example, I am looking at a 2019 Honda Civic LX. New it's $19k. Used on Carmax a 2016 LX on the first page of a search ranges from a low of $17k to a high of $18k (there is actually a 2016 for $19k as well, but that's a weird one. Only 2k miles). I just wonder why someone would buy a 2016 when the difference is so small (and also considering that Carmax is no haggle and you can haggle with a dealer so that MSRP really isn't what you end up paying unless you don't haggle with the dealer at all).

Then again, like Texanbybirth said, maybe they aren't paying what I am seeing online.

Edited to add, the lowest price one I found on Carmax was $14.5. That's a little better in price, you'd save $4,500 again assuming you paid the sticker price for new. Lowest price local one for me is $15k.
Last edited by Calico on Tue Apr 23, 2019 1:25 pm, edited 1 time in total.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Mike Scott » Tue Apr 23, 2019 1:24 pm

If you believe the mantra of buy one year old and never compare their prices to new...

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by ohai » Tue Apr 23, 2019 1:32 pm

I suspect that there are very few 1-3 year old Hondas and Toyotas for sale in the first place, as their owners might hold onto the cars for a long time. These are not like BMW or Audi, where the customers lose interest and trade in their cars after just a couple of years. Since lightly used Toyota or Honda are rare, they are expensive, and buyers will accept just a small discount to new cars.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by deltaneutral83 » Tue Apr 23, 2019 1:43 pm

That could be true and I didn't think of it. I am looking at prices on Carmax and Carfax as well as CPOs at dealers and comparing them to MSRP on the Toyota and Honda websites. Private sellers would be cheaper.
Bingo
Any car that is traded at a year is either a lemon, or the buyer isn't bright. There is no reason to buy a 1 year old vehicle.
Bingo again, plenty of people drive cars for a short amount of time, realize they don't like it, payment is strangling them, their financial profile has changed and they need to sell the car, etc. etc. Things change in a year or three.

I bought a Honda privately for $17,500 that MSRP'd for $28,900 with 41k miles that was 4 years old a few years ago. I knew the condition of the vehicle and had my mechanic look over it. I am not going to kill it as far as average yearly depreciation (if I keep it 8 years vs owning it new for 12 years as I anticipate my 8 year average depreciation at $300-$350 per year lower than owning new for 12 assuming car was purchased for $28k outright), but it was money for just a few hours of work. Hondas and Toyotas are the cars that hold resale for much longer and can also go 200,000 miles without many problems but if I see some easy money, I'll sacrifice the new car smell to save a few bucks. The private sale of Hondas with 90-150k miles on them is huge too so that's more of a seller's market in my experiences.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Watty » Tue Apr 23, 2019 2:00 pm

Calico wrote:
Tue Apr 23, 2019 1:06 pm
.....I am looking at prices on Carmax and Carfax as well as CPOs at dealers and comparing them to MSRP on the Toyota and Honda websites. .....
Two thing to remember to get an "apples to apples" comparison.

1) Some CPOs come with an extended warranty that may go for longer than the normal manufactures warranty.

2) New cars may also have significant destination charges in addition to MSRP(or other average selling price).

For people with marginal or bad credit the financing may be a big factor too and dealers will give them lower interest rates on cars with a huge markup.

For at least the last ten years I have bought new Honda's and Toyota's since late model ones were so expensive.

A few years ago I sold a nine year old Camry with 130k miles on it for about a third of what it cost when new. It was well maintained, good records, no accident, etc so it was a good car but I would not have paid that much for it.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by northtexan » Tue Apr 23, 2019 2:30 pm

At least for the older Hondas they had a different engine, not the current turbo engine. Some, I have heard are concerned about the new engines not being as reliable as the older one. If you look at the CRV, it has had engine problems and that engine is the same/similar to the ones in the new civics and accords. I purchased a 2017 accord after looking at the 2018. I liked the shape of the car better.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by whodidntante » Tue Apr 23, 2019 2:44 pm

I've wondered the same thing. So buy something new if you can afford it in the Boglehead ultra conversative sense of you have 50x expenses saved or whatever. Or buy somethinig that has depreciated if you can't. It would probably be ok to buy something else. One wod: ThunderCougarFalconBird.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by N10sive » Tue Apr 23, 2019 2:51 pm

CarMax also isn’t a good metric. They tend to have higher prices than other dealerships.

At least with a 1-3 year old car as long as it’s not a lemon it will pry come with a CPO warranty which adds some value. Albeit with Toyota and Honda I wouldn’t worry too much about that.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 2:53 pm

whodidntante wrote:
Tue Apr 23, 2019 2:44 pm
ThunderCougarFalconBird.
Haha, love it! I had a bird once. My first car! Skyhawk (okay, I suppose that doesn't count).

I am looking at new and used cars. I have cash to pay for either. The Civic and Corolla new and Mazda 3 used. I am leaning towards the Mazda for overall value and so I don't worry about door dings and scratches (because I will fret over it and my car will get dinged up living where I live in a high population area). I am a bit leery of buying from a private seller for personal safety reasons. I am not only a perfectionist, but a bit paranoid too I suppose (in all fairness to me, I've had a stalker once in my life and been groped and flashed in public more times than I can remember. So I have a reason to be a little paranoid being alone with a stranger). If I find someone I actually know selling a car, I would buy from that person though (co-worker or neighbor maybe). Not some random person off Craigslist though.

I might add Impreza to the mix soon. I need to test drive one first. They hold value too, so most likely I will go new with that one.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by yangtui » Tue Apr 23, 2019 3:02 pm

I bought a 1 year old Honda Civic with 13K miles on it from Hertz. You can check their inventory online and see if any values pop up. I have been driving it for 4 years now without any issues.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Nate79 » Tue Apr 23, 2019 3:45 pm

You really need to compare apples to apples prices. Out the door prices for the used car vs out the door price for the new car. Of the same model. That makes it more difficult with used vs new because you need to compare trim and options. The other issue is that on a $20k car, 10% savings is $2k. 10% sounds like a decent savings but $2k doesn't.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by WhiteMaxima » Tue Apr 23, 2019 3:53 pm

For japanese brand, buy 1 - 3 year won't save you a lot. 1st, they don't depreciate a lot, 2nd you cant finance at 0.9% low interest for 36 month or 1.9 for 60 months. But, you can get a good deal in CPO German vehicle or a used American vehicle. normally they lost 50% after 1st three years.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by noraz123 » Tue Apr 23, 2019 3:58 pm

Calico wrote:
Tue Apr 23, 2019 12:55 pm
...the price for one that is 1-3 years old really isn't that much different from new ...
I found this to be the case, too. Hondas and Toyotas (+ Subarus and Jeep Wranglers) *hold their value too well* if looking to buy a slightly used car. I have found buying these brands new, or buying different brands that depreciate faster, to be a "better deal."

For example, a 3-year old Kia Optima is likely a better deal than 3-year old Toyota Camry, even with the greater (real and/or perceived) reliability of Toyota.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by irdgas66 » Tue Apr 23, 2019 3:59 pm

I bought my last one on Carvana. They are great, no questions asked if you don't like the car within 7 days, just have them come get it. You can find many of these types of cars on their site at reasonable prices. They are super great at documenting any defects, since you get them delivered, before you test drive it. They will bring it to you, do some paperwork, test drive it and if you are satisfied, they drive away empty and you have a new vehicle. Easy and no hassle at all.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Jags4186 » Tue Apr 23, 2019 4:01 pm

There are manufacturer and dealer subsidies on new cars. There aren’t on used cars. Therefore the price is dislocated on new vs used. I suspect most of the used cars are not selling for the prices advertised—it’s a way of pushing someone to a new car....


“Why buy used when you can get new for the same price and a better interest rate!?”

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by adamthesmythe » Tue Apr 23, 2019 4:02 pm

ohai wrote:
Tue Apr 23, 2019 1:32 pm
I suspect that there are very few 1-3 year old Hondas and Toyotas for sale in the first place, as their owners might hold onto the cars for a long time. These are not like BMW or Audi, where the customers lose interest and trade in their cars after just a couple of years. Since lightly used Toyota or Honda are rare, they are expensive, and buyers will accept just a small discount to new cars.
Right. OP is asking the wrong question. Ask why no one is SELLING Toyondas after 1-3 years.

In addition to good reliability, most people who buy these things are after an automotive appliance, and are unlikely to sell a car because they got bored with it or because there is a new design.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by likashing » Tue Apr 23, 2019 4:09 pm

My theory is:

1) people buying 1-3 year old Toyotas and Hondas from dealerships are being ripped off.
2) new car dealers make more money from used cars than new cars - especially new Toyota/Honda vs 1-3 yo Toyota/Honda

Many people buying 1-3 year old Toyota/Honda do not even consider new because:

1) the general belief that buying used saves you money vs buying new
2) they are not aware that new car prices are highly negotiable. Car salesmen make easy used car sales pitch by showing the new car MSRP to the used car shoppers, when the new cars can be had for much lower than MSRP
3) many people do not have good credit to qualify for the new car finance deals. in addition to buying an over-priced used car, they get sold some bad car loans as well. double whammy

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Katietsu » Tue Apr 23, 2019 4:18 pm

I agree with the OP. A few years ago, I test drove a few vehicles at a local used car dealership. Thought we might want to purchase a <1 year old Honda Pilot with 13,000 miles. I contacted the Honda dealership and, without any haggling, offered me the same exact same Pilot for only $600 more. I was comparing exact models and features, the used vehicle was a no haggle fixed price, the used vehicle had only the remainder of manufacturers warranty and the used dealership sold no new cars. All I could think of is that it was like a warehouse store that sells product at a higher price per weight in bulk based on a perceived value.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by WhiteMaxima » Tue Apr 23, 2019 4:18 pm

The only 1 year old car you should buy actually is new when new model come out. Usually is between July and Sept. Or Later Dec when dealer need to make sale number for the year. Car manufacturer usually give huge discount on last year model vehicle. You can ask 15% -> 20% off MSRP plus 0.9% finance. It is still new car which carries 3 year warranty.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by beardedbrit » Tue Apr 23, 2019 4:47 pm

ohai wrote:
Tue Apr 23, 2019 1:32 pm
I suspect that there are very few 1-3 year old Hondas and Toyotas for sale in the first place, as their owners might hold onto the cars for a long time. These are not like BMW or Audi, where the customers lose interest and trade in their cars after just a couple of years. Since lightly used Toyota or Honda are rare, they are expensive, and buyers will accept just a small discount to new cars.
Not true around here (Boston area). Lots of desirable cars come off-lease at 2-3 years old and pricing for those is pretty competitive as the dealers want to move them. Got a very good deal on a lightly used 2014 Camry in 2016 which was around $5K less than I would have paid for a new model, with commensurate savings in excise taxes and insurance.

ono8ono
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by ono8ono » Tue Apr 23, 2019 4:55 pm

DON'T BUY any cars with CVT transmission. These are not reliable transmission. Even Toyota are recalling Corolla hatchback due to CVT problems!!
If you don't believe, try google it.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by petulant » Tue Apr 23, 2019 4:59 pm

ohai wrote:
Tue Apr 23, 2019 1:32 pm
I suspect that there are very few 1-3 year old Hondas and Toyotas for sale in the first place, as their owners might hold onto the cars for a long time. These are not like BMW or Audi, where the customers lose interest and trade in their cars after just a couple of years. Since lightly used Toyota or Honda are rare, they are expensive, and buyers will accept just a small discount to new cars.
Bingo. People like me buy an Accord brand new with no intention of selling in the first three years.

ester
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by ester » Tue Apr 23, 2019 5:01 pm

I bought a 2017 Avalon in December 2017. It was a CPO with 24,000 miles. I paid $22,000, vs. $34,000 new, and got an extended warranty to 100,000 miles. No problems with the car at all.

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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 5:07 pm

Nate79 wrote:
Tue Apr 23, 2019 3:45 pm
You really need to compare apples to apples prices. Out the door prices for the used car vs out the door price for the new car. Of the same model. That makes it more difficult with used vs new because you need to compare trim and options. The other issue is that on a $20k car, 10% savings is $2k. 10% sounds like a decent savings but $2k doesn't.
I am comparing the base models to base models. That may be part of the issue too. When a new base model is that cheap, there isn't a lot of room to go down.

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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 5:10 pm

ono8ono wrote:
Tue Apr 23, 2019 4:55 pm
DON'T BUY any cars with CVT transmission. These are not reliable transmission. Even Toyota are recalling Corolla hatchback due to CVT problems!!
If you don't believe, try google it.
I am actually hoping to get a manual transmission. I admit it, I don't know what CVT is exactly and a lot of the cars I am looking at have it for their automatic models.

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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 5:13 pm

ohai wrote:
Tue Apr 23, 2019 1:32 pm
I suspect that there are very few 1-3 year old Hondas and Toyotas for sale in the first place, as their owners might hold onto the cars for a long time. These are not like BMW or Audi, where the customers lose interest and trade in their cars after just a couple of years. Since lightly used Toyota or Honda are rare, they are expensive, and buyers will accept just a small discount to new cars.
That's my plan too. I bought my last car used and still have it (and have no intention of selling it). The only reason I am looking for another car is because my daughter will be turning 16 and I want a car for her to drive to and from her practices and such (so I don't have to keep leaving work early and rushing home). When I get my "new" car (whether it's new or used), I plan to keep it until it needs to be towed to the junk yard.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Cycle » Tue Apr 23, 2019 5:15 pm

People who are allergic to the New Car Smell are forced to pay a premium to get one that's been broken in but like-new
Never look back unless you are planning to go that way

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by simplextableau » Tue Apr 23, 2019 5:16 pm

It makes sense if you buy private party, not from a dealer. Took me six months of Craigslist searches though. Most slightly used cars are sold by dealers, so it was hard to find.
Last edited by simplextableau on Thu Oct 03, 2019 11:38 pm, edited 1 time in total.

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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 5:17 pm

ester wrote:
Tue Apr 23, 2019 5:01 pm
I bought a 2017 Avalon in December 2017. It was a CPO with 24,000 miles. I paid $22,000, vs. $34,000 new, and got an extended warranty to 100,000 miles. No problems with the car at all.
That's pretty good (good deal). Congrats! An Avalon is too big for my needs. I haven't been lucky enough to see a one year old car for nearly 35% off the MSRP. I hope to be as lucky!

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Calico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Calico » Tue Apr 23, 2019 5:23 pm

Cycle wrote:
Tue Apr 23, 2019 5:15 pm
People who are allergic to the New Car Smell are forced to pay a premium to get one that's been broken in but like-new
LOL. I actually hate "new car smell." It smells like chemicals and glue to me. I don't get the appeal. I won't pay a premium for the smell to be gone though.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by retiredjg » Tue Apr 23, 2019 5:24 pm

Over the years, I have bought 4 Toyotas (station wagon with 98k miles, two 4 runners, 1 Highlander) and 1 Ram truck that were used and "certified" at a significant cost less than new. I think most were about 3 years old - maybe largely lease returns.

They were all outstanding vehicles and I've been very happy with all of them. I used dealers 3 times and Carmax 2 times for these purchases.

Things may have changed since then, but that's my experience so far. I'm still driving the last one. :happy

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by BeneIRA » Tue Apr 23, 2019 5:25 pm

OP, the sweet spot on Toyotas and Hondas is when a redesign happens. I agree with the poster above about disliking CVTs. I would look at 2013 Honda Civic LXs with 50,000 or fewer miles. Those should be significantly cheaper than the current redesign of the Civic and it was the year before they put in a CVT. When the Civic gets redesigned again, I expect the 2016 and 2017 Civics to drop in price. In my area a 2013 Civic LX would run you about $12,000 with around 50,000 miles.

Honda corporate values these cars very highly. I had a Honda Fit that had a sticker of $17,000. Three years later, Honda resold it for a touch over $14,000, so people are buying these cars. The car had been driven nearly 50,000 miles and lost $3,000 of value, which is insane. The new Honda Fit had also been out for a year and a half already.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Wings5 » Tue Apr 23, 2019 5:31 pm

I bought in this range. We plotted all Toyota Corollas within 75 miles and ran an average depreciation spreadsheet for the model we wanted.Ours was 2 years old when we bought it and noticeably below the pricing curve that we found.

The depreciation was roughly linear.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by retiredjg » Tue Apr 23, 2019 5:45 pm

Regarding CVT, I had that on a Subaru product. I liked it during the test drive, but grew to dislike it over the next few months. CVT is one of the main reasons I sold that car after less than a year (not because it was bad but because I just did not like the way it drove/changed gears).

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by Chris K Jones » Tue Apr 23, 2019 5:50 pm

About 2 years ago, I bought a 2 year old Toyota Camry that had been used as a rental. It had about 20000 miles when I bought it. I have put 36000 in the past 2 years and have been very pleased with it. I don't remember the exact details, but was probably 20 to 25% cheaper than the then current models.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by abonder » Tue Apr 23, 2019 6:57 pm

There’s been a lot
Of good insights shared here. I think that, overall, the new vs used issue should be addressed by particular vehicle. The OP noted that he was thinking used for Mazda 3 vs more likely new for civic/corrola. I think that sounds about right although there certainly can be exceptions that change the calculus. In general, luxury cars take a bigger depreciation hit, as do cars with (perceived) poor reliability. There are plenty of good vehicles with solid reliability records that have above average depreciation which makes them a good candidate for being purchased used. Of course, with a used car, there are so many variables so it’s definitely harder to do an apples to apples comparison.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by vshun » Tue Apr 23, 2019 7:25 pm

BTW its the same for Subarus. I had all 3 and always buy new and never saw truth in "car loses this amount the moment you drive it of the lot".
I usually pay invoice price - dealer holdback/incentives + 2% dealer profit so hard negotiation with quite a few dealers in the area. The price I pay for new is usually lower than what I see quoted for 1 year cars even on Craiglist (I realize I can negotiate it down but why bother).
So negotiate hard, buy new, hold to it for a long time, maintain it to manufacturer recommended maintenance and enjoy the long life (10+ years) of a car.

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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by kilkoyne » Tue Apr 23, 2019 7:38 pm

I've been looking at 2016 Honda Civics and seeing some for 16K range with lane change monitoring and back up cameras.

2019 base models I'm seeing almost 20K while the 2017 models for 20K are the SI or Touring models.

I know because I am going to visit my daughter this week and will have about a week to help her find a new/used car.

kjvmartin
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by kjvmartin » Tue Apr 23, 2019 8:29 pm

ester wrote:
Tue Apr 23, 2019 5:01 pm
I bought a 2017 Avalon in December 2017. It was a CPO with 24,000 miles. I paid $22,000, vs. $34,000 new, and got an extended warranty to 100,000 miles. No problems with the car at all.
Toyota dilutes their value a bit more than Honda by selling extensively to rental fleets. Also, 2017 Toyota's are woefully behind in technology.. No CarPlay option. Very good deals if you want a basic car, but not great if you want the latest in safety and infotainment.

zeal
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by zeal » Tue Apr 23, 2019 8:38 pm

My first and only vehicle I’ve ever owned is an ‘06 Corolla, bought a year old in ‘07, 25k miles on it. Knock on wood, no major problems. Recall on the computer was fixed for free. I change the oil every 3k-6k miles and put on about 7k-8k miles per year (it is up to ~110k miles now), change tires as needed, etc. Check engine light comes on sometimes in the winter when it’s really cold and I don’t have much gas in the tank (just the oxygen sensor picking up condensation in the gas tank, my own fault for letting fuel level get too low). A relative put over 400k miles on her Corolla station wagon years ago and it still worked fine—she only sold it because she was tired of it. Provided I continue taking good care of it, who knows, this car just might outlast me.

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stevewolfe
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by stevewolfe » Tue Apr 23, 2019 8:42 pm

I bought a one year old Corolla. It wasn't a lemon and I don't think of myself as not being very bright.

It was a demo car driven by a Toyota district manager who put 5,400 miles on it. I sold it 11 years and 239,000 miles later. I did have to replace the drivers side seat belt as it wore out. No other repairs besides routine maintenance. A friend bought it for their daughter to commute to college. Her boyfriend drove it to work when she graduated. Last I talked to them, they had put an additional 50,000 miles on the car.

Steve

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ClevrChico
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by ClevrChico » Tue Apr 23, 2019 9:32 pm

People that falsely believe used cars are always the better value are one group. The reality is that the dealer is probably losing money on new car sales, but making up for it with used cars and service.

I helped a family member buy a used Honda last year. They were set on used, so they could get top trim model and stay within budget. Buying used was quite painful compared to new, and I'm not sure the value was great. But, they are happy with their car. And their old model has a proven engine vs. one with oil dilution issues, so maybe it was the right choice in this edge case.

CurlyDave
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by CurlyDave » Wed Apr 24, 2019 12:33 am

RickBoglehead wrote:
Tue Apr 23, 2019 1:09 pm
Any car that is traded at a year is either a lemon, or the buyer isn't bright. There is no reason to buy a 1 year old vehicle.

The only exception might be someone that gets great deals and flips cars, like a family member. We can buy a Ford for a great price, and have to hold it for 6 months. However, I have no desire to flip a car every 6 months to make a small amount of money.
I think the largest source of late model used cars is car rental companies.

I remember reading years ago that this was a sore point with many dealers. Rental companies buy in bulk from the factory and can get very good prices.

I don't know what the story is now, but it used to be cheaper for the companies to sell the cars before the first service was due.

FireSekr
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by FireSekr » Wed Apr 24, 2019 1:04 am

Calico wrote:
Tue Apr 23, 2019 5:23 pm
Cycle wrote:
Tue Apr 23, 2019 5:15 pm
People who are allergic to the New Car Smell are forced to pay a premium to get one that's been broken in but like-new
LOL. I actually hate "new car smell." It smells like chemicals and glue to me. I don't get the appeal. I won't pay a premium for the smell to be gone though.
Me too. The only exception for me is higher end cars with extremely high quality leather. The smell from the natural leather is great. Most lower end cars use non-aniline coated leather though so you can’t smell it since the leather is basically coated in plastic.

I also don’t understand why anyone would buy a used Toyota or a Honda that’s less than 3 years old at the normal prices they’re asking. Yeah, if you get enough of a discount definitely but as you mention most of the prices are within $4k of new so I’d rather just get new.

The only thing that’s even more stupid than buying a 3 year old Honda to save $2k is leasing a new Honda. Yeah...apparently some people actually do that. A colleague couldn’t understand why I was astonished he leased a civic instead of buying it outright. I was even more astonished when I asked him if he leased it cause he thought he would want something different in 3 years and he said he’d just get another civic :oops:

jlawrence01
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Re: Who is buying 1-3 year old used Toyotas and Hondas?

Post by jlawrence01 » Wed Apr 24, 2019 3:42 am

CurlyDave wrote:
Wed Apr 24, 2019 12:33 am

I think the largest source of late model used cars is car rental companies.

I remember reading years ago that this was a sore point with many dealers. Rental companies buy in bulk from the factory and can get very good prices.

I don't know what the story is now, but it used to be cheaper for the companies to sell the cars before the first service was due.

That is correct. Hertz is currently selling 2018 Toyota Corollas with 30k miles for about $14k and 2017 Toyota Corollas with 40k miles for $13k. Prices are generally lower in the Midwest than the West.

Currently, Hertz is offering 2019 models with 15k miles. I am not sure what the reason for Hertz for dumping the cars that early.

Many of the people who say that they would never buy a rental car actually have. I have showed them some of the modifications that have been required by certain auto rental fleets.

Personally, I prefer to buy rental cars directly from the source as rental car fleets will allow you to test drive a vehicle (as a rental) for up to three days. This will allow you to take the car to a dealer for a proper inspection and in a weekend, you will be able to drive the car is the way that you would normally drive the car.

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