New Cars vs. Used Cars

[chrisj]

When I was a young kid here in South Jesus, Kentucky, my daddy always taught me that you should never buy a brand new car, and should always wait to get one a couple of years old because of how much the car devalues in the first two years.

I have owned only 3 brand new cars in my life. In 1974, a gold Camaro. In 1983, a silver Subaru hatchback, and in 1999 a tan Corolla.

I had no idea about values of the Camaro and Subaru, as my daddy took them off my hands for a couple of different reasons. In both cases I couldn't make the payments. In the 1999 Corolla's case, I paid $14,000 for it new, and traded it in 2 years later for my Tacoma. The trade-in allowance I got was $8,000, which seemed like a rip-off to me, especially since it was a Toyo.

So, when I got our latest "new" car, it was indeed coming up on 2 years old, and I got a pretty good deal on it.

Any thoughts on the brand-new vs. used idea?

[BluYrs]

Mine had been registered for just over half a year when I bought it. It was a dealer demo/replacement car and had decent mileage.

For me, it seemed no worse than a new car and since it was being sold for over 20% less than its sticker price as new, I felt it was a pretty good deal. For the same price I could have gotten a brand new but bare-bones entry-level Yaris, which would be more difficult to get rid of later (less equipment = less desirable as a used purchase). Haven't regretted the decision since.

[UTVitz]

Ten years ago I bought a jeep wrangler brand new and within that day got cold feet about it. The dealer refused to cancel the deal and I knew the financing would go through since I'd put 5K down. Long story short I sold the jeep back to the dealership and lost $1250 in value, and that was supposedly with me buying it at $500 over invoice and losing another $1250 in taxes and fees. I learned my lesson about the facts of driving a new car off the lot and now don't even consider new vehicles. Unless you plan to keep it for many years, if makes no financial sense to buy new.

[chrisj]

Even though we plan on keeping ours for up to 10 years (that's right!), we still bought one nearly 2 years old. We had a specific budget for a car, and the 2009 Yaris fit right into that. It will be wild seeing our little car as an OLD car one of these days.

[BailOut]

I have always had used cars until the Yaris. I would have bought a used Yaris but two things stopped me:

1) There were no used Yarii to be had in early 2007 as that's when the car first came to the U.S.

2) I gained a rather extreme commute in January 2007 which involves climbing over a mountain that receives up to 400 inches of snow each year. Much of the twisting 2 lane highway has no shoulder and the speed limit is 50 MPH so breaking down in the wrong place can be quite hazardous. I wanted to have the best possible chance to complete each commute and in today's world that means a brand new Toyota built on proven technology (the Yaris inherited most of it's inner workings from the Corolla, Prius and MR2).

Now that we all know just how solid the Yaris is, if I had to repurchase today I would go used.

[chrisj]

^ I don't think there is a car out there more solid than the Corolla. The style though...ummm. I had a 1979 and a 1999 at different times, and never ever had a problem. One thing I never liked about the 1999 model was having to lift my legs to get out of the car. I tripped several times trying to get out with that lip at the door.

[DebbyM46227]

I've lost count of the number of cars I've purchased since 1971 - I think maybe 16 or 17, and all but 3 have been brand-new. I prefer new because I don't know how the used one has been treated. I really haven't cared much about loss of the value - and I guess that's why I'm not a millionaire today.

[silver_echo]

uhhhh, most of the inner workings came up to the yaris from the echo, which got the idea from the paseo and the tercel...

[kustom play]

not worth it to ever buy new,

Here in AZ there is no tax on private sales, buy an 2010 used though private sale and pay no tax. That alone saves a killing!

I usually buy older cars, even if you have to put an engine in, your still ahead of the game with an older brand new car

[.Kevin.]

To me new is low kms and in good condition, my dads echo is 2005 40k kms thats new to me.

Id never go with old, only old car I have is a weekend driver first gen fastback mustang fully restored and it guzzles gas like balls though I do get lots of head turns for it.

[nemelek]

My first new car was an 88 Toyoyta SR5 Truck. Paid with tax and some 4X4 upgrades around $14,000. Sold it 200,000 miles and 16 years later for $2,500. Plus I netted $3,000from an accident that I fixed my self. The truck cost $531/year plus gas and maintenance.

I plan on keeping the Yaris for 20 years. Hopefully it will be as cheep as the truck to own.

Buying new is expensive. Trading in costs more. Selling the used car yourself can defray the cost.

However, buying a used car without proper research can cost a fortune. I am amazes at the people who will buy a two year old used car with 40k on the odometer and brag about the price they pay. They have no idea if the oil was ever changed.

Buying used from a dealer cost a lot more than buying from a privet party.

I have owned over 25 cars in my lifetime. The only thing that I know for sure is that the cost of transportation is not cheap. Do your research before buying new or used.

[tomato]

Originally Posted by chrisj

When I was a young kid here in South Jesus, Kentucky, my daddy always taught me that you should never buy a brand new car, and should always wait to get one a couple of years old because of how much the car devalues in the first two years.

My Dad taught me the same thing. As a matter of fact, he's pushing 80 now and I don't think he's ever owned a new car in his life, but he had a lot of cars. His current car is close to new but probably had some miles when he got it.

And I followed the same principle. The Yaris was close 2007 when I got it (early in 2009), so technically a little over 2 years, and had more than $50,000 miles on it already which by my book is practically new .

I made that decision because :

1) Affordability. At the time, there was no sale, no 0% financing, and I wanted a deal .

2) I don't drive much these days. I commute by public transportation about 70 to 80% of the time, so I myself don't put in very many miles on my car right now.

3) I park her in the streets all day long.

For those reasons, I didn't see the need to get anything real fancy or completely new because it'd just be kind of a waste in my case

As it turns out now, close to 2 years later, I'm real happy with my decision.

[chrisj]

^ My dad will be 80 in January! He got some kind of "fever" from his dad that made him trade cars a lot. I never understood it, but he would (still does) roll in with a "new" car after going out for milk or something. He is always on the lookout for another car, although he and my mom have a couple of Toyotas now. He is nearing 80 and drives a 2002 Tacoma, and WILL NOT allow anything to be hauled in it. Tinted the windows and everything.

One more thing about buying new is that you are forced to get full coverage insurance on the vehicle if it's financed. I hate, hate, hate financing anything and that was one reason for picking the Yaris in the first place. Lower initial cost and lower ongoing costs in fuel. I have liability insurance on the car along with comprehensive, but no full coverage. I paid on my house for almost 10 years, only to discover that I still owed a fortune on it. I paid extra on the principal every month until I paid the sucker off. Since then I have vowed never to finance anything again. Buying used helps to buy for cash in some cases.

[tomato]

I didn't know that about the insurance. That is good info.
I don't have the maximum insurance package either (again, I drive very little)

The dealership tried to push financing on me but I was already prepared and walked in the place ready to cut out a check, so they didn't get me there. One thing they almost nailed me for was the extended warranty but in the end I didn't get that either.

I hear you, buying used and saving money FTW

[chrisj]

Yeah. If I paid $1,000 for a car I would expect about that much out of it (and I have had several of those in my life!). But if you are careful, pick a car a couple of years old with reasonable mileage, and you get a Toyota (!), then you will probably be fine. Before the Yaris, I bought an Avalon and a Tacoma, both with a little over 50,000 miles on them. No problems. Now, would I have bought an American car with that many miles? Probably not.

[Kal-El]

Nice debate topic.


New or used certainly is the age old question.

I generally lean toward used, but there are definitely arguments for the new purchase.

When you buy used, extra homework is required and you have to run the numbers in relation to mileage to be sure it's worth it. Dealers are often holding used car values very high (particularly on cars with under 36K on them). You'll often have to argue them down.

I bought my Yaris used at the very worse time as my hand was forced into dumping my previous gas guzzling pile of problems. Yup, in the summer of '08 when gas was $4.00 gallon and small cars were gold. Finding a new Yaris was nearly impossible and most dealers were lucky if they had even one used Yaris. My dealer had one, and it just happened to be the S I wanted in the color I wanted so I pulled the trigger. Needless to say, I payed a good price. Not too far from a new car price for a car with 35,000 miles. But those were unusual circumstances.

The argument for new is:

- Assurance that it wasn't abused or not maintained properly.
- That unmistakable brand new car feel/smell
- Longer potential ownership
- When you must have that latest model and used aren't available yet.
- The obvious absence of any wear and damage
- Full factory warranty

[chrisj]

^ Good points for new!

[BailOut]

Originally Posted by chrisj

... drives a 2002 Tacoma, and WILL NOT allow anything to be hauled in it.

Ah, yet another air hauler.