New car vs used car

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tc101
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New car vs used car

Post by tc101 » Wed Aug 09, 2017 11:40 am

For most of my life it was a no brainer that buying used cars made more sense financially. Then used cars got more expensive and for a while it was a toss up. Someone told me that this had changed and once again, it is a much better move to buy a car that is a two years old than to buy a new car. What do you think?
. | The most important thing you should know about me is that I am not an expert.

sport
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Re: New car vs used car

Post by sport » Wed Aug 09, 2017 11:43 am

If you select a brand/model that depreciates a lot, buying used can save a lot of money. If you choose one that does not depreciate much, a late model used one may cost almost as much as a new one. So, it depends on what car you are talking about.

DSInvestor
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Re: New car vs used car

Post by DSInvestor » Wed Aug 09, 2017 11:44 am

I think it depends on the car and your location. In my area, Subaru Outback hold their value very well so there may not be much of a price difference between new and a 2 year old car.

sport
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Re: New car vs used car

Post by sport » Wed Aug 09, 2017 11:44 am

Also, this is late in the model year, and good deals can be found on some of the remaining 2017 models.

DiMAn0684
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Re: New car vs used car

Post by DiMAn0684 » Wed Aug 09, 2017 12:05 pm

Really depends on the car you're looking to buy. I was recently looking into Subaru Crosstrek and had a gentlemen who has access to car auction data do some research with me. The average price for 2014 Premium trim models with 30-40k miles on them was $16,500 (that's before dealer and auction fees) while from my research I saw people were able to buy new 2017 vehicles for ~$22,000, and perhaps even less now since the redesigned 2018 model was presented. The potential risk of buying at ac auction, lack of manufacturer warranty and the fact that the vehicle would be used was not worth the potential savings to me in this case. I am sure there're three year old vehicles from other manufacturers that cost closer to 50-60% of the original price, so savings might be worth it in that case.

fasteddie911
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Re: New car vs used car

Post by fasteddie911 » Sat Aug 12, 2017 8:02 am

Make a spreadsheet showing the overall cost of ownership with your personal criteria and see what you come up with. I went through this recently for a car purchase, assuming we'd keep the car long term, and the used car didn't end up being dramatically cheaper, so I went new.
Last edited by fasteddie911 on Sat Aug 12, 2017 8:18 am, edited 1 time in total.

Rupert
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Re: New car vs used car

Post by Rupert » Sat Aug 12, 2017 8:08 am

I've been looking at this issue as well, as I'm in the market for a new Toyota or Honda. The prices for gently used cars (approx. two years old; 30,000 miles or less on the odometer) are really not much lower than the price for new ones, particularly when you take into account the end-of-model-year incentives mfrs are presently offering. Toyota, for example, is presently running a 0% financing/$1000 cash back offer on 2017 models.

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Alexa9
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Re: New car vs used car

Post by Alexa9 » Sat Aug 12, 2017 8:15 am

Luxury vehicles depreciate by a larger amount since they're more expensive. Although if it's a sportscar, who knows how it was driven.

keystone
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Re: New car vs used car

Post by keystone » Sat Aug 12, 2017 8:27 am

fasteddie911 wrote:Make a spreadsheet showing the overall cost of ownership with your personal criteria and see what you come up with. I went through this recently for a car purchase, assuming we'd keep the car long term, and the used car didn't end up being dramatically cheaper, so I went new.
That's what I do and I reached the same conclusion as you. For example, I assume I will keep a new car 15 years but if I buy a 3 year old used car, then I assume 12 years. When I did this exercise the new car was only slightly more but then I get the peace of mind that comes with a new car.

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dm200
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Re: New car vs used car

Post by dm200 » Sat Aug 12, 2017 8:30 am

Over the many decades, when we drove more miles, I concluded that there were many times when buying new made sense (for us). The factors that I believe favor "new" include:

1. You get the exact car you want, need and are willing to pay for.

2. All new cars are the same - no matter how much you pay or whch dealership you use. It is easier to know and get the best "deal"

3. Usually (not always) maintenance and repair costs the first few years are lower.

We almost always kept the new cars for 12-18 years.

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