New Cars vs. Used Cars

[MizzouSnives]

reading zosostein's thread on getting a new car made me think: what are some specific advantages to buying a new car vs. a used car? i'm getting a new car after graduation and i was wondering what everyone's opinion was on this issue. here's what i've come up with so far:

new:
PROS--no hidden damages, you are first owner so you know how the car will be driven (no teenage racer owners before you), better chance of having no problems for a few years, newest styles
CONS--higher price, faster depreciation

used:
PRO--lower price, less depreciation
CONS--unknown history, higher rate of mechanical problems

is this really a case of price vs. possible problems? i would like to get more car for my money, but not at the expense of repairs all the time. thoughts?

 

[Mizzou415]

Buy a used car still under warranty or a certified used car with an extended warranty.

 

[runner]

Let's see....I bought a 1999 Chevy Suburban brand spanking new. I wrote a check for about $36,000. Today it is for sale, and I will probably get about $9,000 for it. Excluding repairs, tires and oil changes, it cost me $4,153 / year to drive (I have owned it for 6-1/2 years). It was a great car.

I just bought a 2001 Jeep Cherokee for $8,000. I will probably drive it for three years and sell it for, say, $4,000. It will cost me $1,333 / year to drive, excluding repairs, tires and oil changes.

Looked at another way, even assuming $1,000 / year in repairs, I'm still almost $2,000 / year ahead.

I'll never buy another new car again. Buy a certified pre-owned if you are concerned about prior damage. Or have a used car thoroughly checked out by a mechanic that you trust. The amount of money that you can save is staggering. And don't fall into the trap of comparing a price per month "well, a new car will last longer, so I'll get a 72 month loan, and it's only $425 compared with a used car at 48 months and $395... It's only $30 more per month!" You should write a check for the car anyway (or at least compare what you'd write a check for).

I understand the allure of buying a new car -- I've fallen into the trap and done it myself. If I think about how much money I could've saved over the years, it is staggering.

 

[lowery21]

What runner and mizzu said. I've come to really love the certified used cars.

 

[Bernard]

New cars are for suckers and people with bad credit. You get WAY more for your money with a used car.

Far the same price as a brand new 4-cylinder Honda Accord, you could buy a Lexus ES300 with 40k miles.

Don't want a Lexus? Just buy a 40k mile Honda for $12k instead of $20k. Any repair cost to the used car will be DWARFED by what you spend on depreciation.

Bernard

 

[Bobbs40]

I agree with most everything that's already been said, but there are some good reasons to buy a new car.

First off, you can get exactly what you're looking for. You'll be able to choose the color, trim and options that you want. Buying used you may spend a lot of time shopping around or end up settling for something else.

Also, there are times when new cars are a really good deal. At the end of the model year when there are tons of incentives being offered, you may be able to get a new car for just a few thousand more than the same car that's 2 or 3 years old.

So, I'd say buy used when you can't but pay attention to what new has to offer.

 

[BrntOrngBld]

In reply to:

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[HoustonHorn93]

I bought my wife's Suburban new last year. I was planning to buy used like I always do but it worked out better for me to buy new this time around. I always buy something that's about 2 years old and has 25k miles on it or less. I found a nice used Suburban that fit our requirements except it didn't have the dvd system for the kids. I planned on adding it after I got it for between $500 to $1000 depending on the type of system I got. When I buy used I always check the new market for what's out there deal wise. It turns out that at the time that I was buying the Burb (May 2004) Chevy was offering some killer rebates on Burbs. That combined with the GM Supplier Discount that I get through my work made the price difference between the new Burb and the used Burb only $1500 but I got the built in DVD system, sunroof, and leather in the new one. I couldn't pass on that deal.

But, like I said I normally buy used. In fact, about 3 weeks ago I bought a '95 F150 extra cab with 102K miles on it for $4k as a weekend errand runner for myself.

 

[Used2btexaslover]

Used make so much more sense, especially CPO.

Sure, it may not have that new car smell, but is that really worth thousands of dollars?

 

[NameAlreadyInUse]

Heard an interesting stat a few nights ago on the radio.

Buying a new car and keeping it 10 years will allow you to retire 5 years earlier than replacing it every 3 years as is the custom in the US.

Buying a used car and keeping it 4 years will do the same thing.

Don't know where the numbers came from and I'm sure it assumes that what you would've spent on a car payment is going towards retirement, but I found it interesting.

 

[Curt Hennig]

i've never owned a 'brand new' car nor do i need to. i bought my current car used. 2003, less than 5000 miles last summer. bought it for less than blue book.