Save $2K On 2012 Certified Used Car, worth it?

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Topic Author
bb
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Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

New:
$23.8K
3 year/36K bumper to bumper manufacturer's warranty

2012 CPO:
5K miles, $21.8K, 2 years of original warrany + 2 years/24K extended
manufacturer's warranty.

Which one is the better deal? Any opinions about buying 1-12 months used
vs 1,2, or 3 year old cars?

Brian
stan_the_man
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by stan_the_man »

What car model is this? Why is this low mileage care for sale?

Also, are you financing or paying cash? If financing, what is your interest rate and term on both?
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

All right - no laughing - VW GTI 6-speed manual - I know - a very
un-bogleheadish car choice!

No need to finance.

Several listings with around the same mileage.

Listing #1:
-------------
Employee of dealer bought the car and then traded 4 months later
for the same car - said dealership needed to make it's numbers for the month.
Did speak to employee in question.

Listing #2:
------------
Car bought at auction - leased vehicle. Why the car was turned in don't know - dealership
said not uncommon for people to lease a vehicle and then not be able to afford it.

Listing #3:
------------
Private party purchase and then traded. Don't know why. Could decide if I can't speak
to previous owner then not pursue.
Last edited by bb on Sat Aug 04, 2012 7:52 am, edited 1 time in total.
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

Is there a general thought that there must be something wrong with used cars
that are only a 12 months or less old or is the thought that assume there was
something wrong because it is out of the ordinary unless the reason can be
verified.
awval999
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by awval999 »

bb wrote:Is there a general thought that there must be something wrong with used cars
that are only a 12 months or less old or is the thought that assume there was
something wrong because it is out of the ordinary unless the reason can be
verified.
When I was looking for a car I noticed the same thing. What's with these 2012 used models? I personally decided against it. But you never know, if I was looking for a Corvette, Camaro or something like that I could imagine that the buyer just up and up couldn't afford it or whatever but I wouldn't buy a "normal" 2012 used car, I would just think somethings wrong with it.
kydan
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by kydan »

For a used 2012 I would either buy a brand new one (2013 models should be out soon) or buy a 2009 to 2011 used one for much more savings.

Check out car trader & craigslist to find good local ones near you.
Good luck!
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tim1999
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by tim1999 »

These low-mileage, current-year used cars are fairly common, though the reason for their existence does vary.

I once purchased such a car, with only about 5,000 miles on it. The prior owner was basically a serial car buyer who traded in/sold off his car every 6 months. The car was good to me for 50,000+ miles that I had it. However, that was in the time when a car lost a huge amount of value when it left the lot brand new, and you could get a good discount from the cost of a new one by buying slightly used. Not true in the current marketplace.

Other reasons I believe these cars exist: dealer "demo's" driven by dealership management; someone bought the car and realized they couldn't afford it; someone bought the car and realized it didn't meet their needs (too big, too small, bought a convertible in Alaska, etc.); rental car determined to be "excess inventory" by rental company and sold before usual replacement time; was a dealer service loaner car, etc.

If it were truly a lemon that the manufacturer had to buy back, repair, and re-sell, I think this would show up on a carfax or other type of report. I've seen this on reports for used cars offered at dealers before.
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cheese_breath
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by cheese_breath »

Scroll about 2/3 of the way down this page.

http://www.edmunds.com/car-buying/how-f ... aphic.html

It says on average a new car loses 11% of its value the moment you leave the lot. You’re only getting an 8.4% discount off the new car price for one with 5,000 miles on it. You can decide for yourself if it’s worth it to you.
The surest way to know the future is when it becomes the past.
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

I put the value of the extended warranty at $500-$1000. It is really the combination of the
purchase price discount + extended warranty that has me considering this. Probably a little
apprehension on my part regarding VW that makes the extended warranty attractive.
earlyout
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by earlyout »

Many of these cars are dealer service loaners. The VW CPO program is a corporate program, not a dealer defined certification so I don't think you have any reason to distrust the car. If the CPO car is the model, color, trim, etc., that you would buy new, I don't see how you can lose. I would try try to bargain the dealer down some more. A month from now, you would not be able tell the difference between the used and the new car and then you can pat yourself on the back for saving the $2000 and having the extended manufacturer's warranty.

EO
stan_the_man
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by stan_the_man »

Even for the GTIs, I think you should be getting a bigger discount on the used one.

If I were you, I'd find the best deal I could get on a new one and then set a goal price on the used one to try to reach -- if you can get it below that price, then buy it.

BTW -- Short term owners of performance cars tend to "enjoy" them (read: beat the living hell out of them).
delamer
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by delamer »

Has anyone ever perused one of those 'take over my lease' websites? The monthly cost for some luxury leases is astounding. $1,000 is common and $1500 is not unusual.

My point is that a lot of people buy/lease cars that they can't afford, so I don't think a low mileage, newish car for sale is necessarily a red flag.

That said, I would definitely check the CarFax report (or equivalent) for any used car before purchasing. We had a salesman 'disclose' that a car had been in a fender bender as if he was being very upfront with us. Turned out that CarFax reported two accidents within a short period of time. Even with just minor damage, either the previous owner was extremely unlucky or was not a very careful driver. We passed.
Default User BR
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by Default User BR »

Cherokee8215 wrote:Other reasons I believe these cars exist: dealer "demo's" driven by dealership management
The first vehicle I bought was a year-old Chevy Blazer, and that turned out to be its story. I found out a few years later because the guy who originally had it recognized it at a convenience store and we discussed it.


Brian
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

I don't believe any of the 3 listings I have encountered were dealer demos - all 3 were private party
sales.

Granted as a requirement of purchase I may personally need to be able to speak to the previous owner
before feeling comfortable with the car - in cases where that is not possible then quite possibly no sale.
plnelson
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by plnelson »

bb wrote:New:
$23.8K
Is that the MSRP or invoice price? Nobody pays MSRP for a new car except for rare, hard-to-get or backordered cars, so if you're giving us MSRP that would make the deal look better than it really is.
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Watty
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by Watty »

One way to look at this is to assume that you will keep either car until they are 10 years old and have a resale price of say $6,800 ( I just a made up that number). By this I mean that you would keep the new car for ten years but only keep the used car for 9 years. The nice thing about looking at it this way is that the insurance, maintence, etc should all be the same years 2 through 10.

The new car would have cost you 23800-6800=17,000 for ten years or $1,700 a year for 10 years.

The used car would be kept for 9 years and cost you 21800 -68000=15,000 or 1,666 er year for a savings of $34 a year over the 9 years that you have the car.

If the used car is considered to only be six months old then the cost would be 1,570 per year for a yearly savings of $130 over the 9.5 year life of the car.

You would need to play with these numbers and your best guess of how long you will keep it and what it will sell for when you do sell it.

To me saving $34 a year does not look like a big enough discount and even the $130 a year might not be enough to make the risk that there is some problem with the car worthwhile since that car model does not have the best reputation.
donall
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by donall »

Usually new has a discount, loyalty bonus, incentives, etc. and prices seem to more negotiable. The warranty is also longer on a new car. The almost new car has mileage, is used, doesn't have incentives, has a stickier price .... so that the selling price is often not much different than the price of a new car. VWs are nice (owned 2), but they do seem to have gremlins in the electrical system that sometimes take over and open windows during the night.
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

New: $23.8K

That price is (dealer invoice - destination fee).
Busting Myths
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Location: So Cal

Re: Save $2K On 2012 Certified Used Car, worth it?

Post by Busting Myths »

bb wrote:New:
$23.8K
3 year/36K bumper to bumper manufacturer's warranty

2012 CPO:
5K miles, $21.8K, 2 years of original warrany + 2 years/24K extended
manufacturer's warranty.

Which one is the better deal? Any opinions about buying 1-12 months used
vs 1,2, or 3 year old cars?

Brian
Have them provide you the service records for the CPO. If it is clean then go CPO due to the longer warranty and cheaper price. I have had a 2012 VW GTI 6MT for a year and have not had a single problem with the car. This generation has been around since 2009 and reliability has been superb. Main complaints are some rattles and elevated wind noise (blown out of proportion)
Busting Myths
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by Busting Myths »

bb wrote:All right - no laughing - VW GTI 6-speed manual - I know - a very
un-bogleheadish car choice!.
Quite the opposite. It is a great value for under 25K in terms of performance, every day driviability, and utility. It has the trunk space of a mid size car with the rear seats up and 45 cubic feet of storage with the rear seats down. Its the anti-prius for people who like to drive.
scone
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by scone »

bb wrote:All right - no laughing - VW GTI 6-speed manual - I know - a very
un-bogleheadish car choice!
That's what I'm planning to buy next year. I don't think the GTI is particularly unwise-- it's a popular car that holds it's value well, it's extremely refined in its details, and it's a lot cheaper than many other sporty cars. It's also more practical, as a hatch, and the 5-door version is nice for a family. The only extra expense AFAIK is synthetic oil and premium gas. And the GTI has a stealth factor. It doesn't scream "I'm a sports car! Steal me! Ticket me!"
"My bond allocation is the amount of money that I cannot afford to lose." -- Taylor Larimore
Topic Author
bb
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by bb »

Yea - next year - the other issue I struggle with. For 2014 the next gen of the
gti is supposed to be out with significantly more power, lighter weight, and
expectations of same price (my opinion) based on cheaper for VW to produce.


But my 2001 vehicle is rusting out hence I don't really want to put any money into it.
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ejvyas
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by ejvyas »

Usually get better deals on 3+ yrs certified cars
scone
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Re: Save $2K On 2012 Certified Used Car, worth it?

Post by scone »

bb wrote:Yea - next year - the other issue I struggle with. For 2014 the next gen of the
gti is supposed to be out with significantly more power, lighter weight, and
expectations of same price (my opinion) based on cheaper for VW to produce.
It should be here in 2013. But the Audi bits may come with their own bugs, you never know. Also, I personally like the looks right now. If they make it more of a poser boy racer, like the WRX, not so much. See "steal me! ticket me!" above.
"My bond allocation is the amount of money that I cannot afford to lose." -- Taylor Larimore
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