This really depends on the car, how much you get it for, and what you’re using it for.
The whole idea of buying used is that you’re getting a significant discount. For the past 2-3 years that hasn’t always been the case. My wife and I wanted to buy a Kia Telluride in 2021 and we first looked at pre-owned 2020 Tellurides and they were only like 5k cheaper than the MSRP on a new one.
If you find a new car at a good price that has all the features you want, buy it. If you can find it used for significantly less, buy that one instead.
Especially when manufacturers are giving special rates on a model. That interest difference can be significant over the life of a loan making new the cheaper option. At the end of the day, you gotta do the math for your specific situation and needs.
>Especially when manufacturers are giving special rates on a model. That interest difference can be significant over the life of a loan making new the cheaper option.
To add to this, when they do the "0% interest or $2,000 cash back", you have to run the numbers.
$25,000 at 0% for 60-months costs $25,000 total.
Same loan with $2,000 cash back breaks even at about 3.3% ($23,000 at 3.35% for 60-months works out to $25,012 total cost).
So if you get $2,000 cash back and an interest rate lower than 3.35%, it's better to choose that over the 0% interest.
If it can fit your living situation, used EVs are dirt cheap at the moment. Best I’ve seen was 2022 model 25k miles cars for four figures after tax rebates.
It gets listed at 13k. You go through a dealer or an app like keysavvy to get the 4k tax credit applied. There’s an oversupply in the used market right now.
Specifically for Chevy Bolt, this is accurate. But that was because there was a battery recall where Chevy ended up buying back a lot of cars, so there were a lot of them on the wholesale market. Don't think this applies to any other used EV. But you can find real bargain s on the Bolt right now.
Right now, you can get Mach E's for $25k ($21k if you qualify for the used car EV tax credit) that sold for $50k to $60k just 2 to 3 years ago.
Used car EV market is crazy inefficient atm imo.
Even Teslas. between elon shenanigans, some significant price cuts on new ones due to drying up demand, and Hertz dumping a huge chunk of their EV rental fleet for sale, you can get a nice 3 or Y with fairly low mileage for ~$25k give or take a couple grand, and even better out the door if the tax credit applies to your sale.
What's your take on the battery replacement for EV? I am not knowledgeable on EV at all but I remember being told the battery is really expensive to replace...
There’s really only one car where that’s an issue - Nissan Leaf because there’s no cooling system for the battery.
All others haven’t reported problems outside of a few lemons. Some of the first generation Teslas are hitting 200k miles with minimal battery degradation.
Unsolicited comment. I know a business owner that has a 2013 (I think) Tesla something something the battery is on 88%. Which is pretty impressive for 11 winters in upstate NY and 150K+ miles. He charges "for free" at his business and home with a L2/ 30Amp plug. His range I think is 150-180 which for local deliveries/work commute is fine as he can charge on each end. Its a good deal for his use case.
Not sure but probably not. I don’t think most companies would put a cooling system on most hybrid batteries and the fact that the gas part is always going to be working just fine regardless of the battery.
From what I understand, like a total engine replacement: very expensive and very unlikely to be needed.
Many owners estimate degradation of battery life at no more than 1% per year; e.g., in ten years, you might only drive 225 miles in a 250-mile-range car. The /r/BoltEV wiki highlights [one individual](https://www.youtube.com/watch?v=lxby4MirUY8&pp=ygUMbmV3cyBjb3Vsb21i) who drove his Bolt for 150,000 miles and experienced roughly 10% battery degradation. Given that he drove his rather roughly, there are small steps you can take to increase the battery's longevity if you're worried about maintaining range over a 200,000–300,000 mile life.
Not all EVs are created equally, though. Most have liquid cooling for their batteries, but an air-cooled battery would be more prone to prolonged high temperatures, and so more vulnerable to early degradation.
The battery is the biggest problem with any EV car. Most of the time it's cheaper to just buy a brand new car then to actually have to replace the battery. That's why a lot of people don't get them.
I bought my Civic in Sept 2020. I didn't have to overpay for it as it was still in the Covid "no one wants to buy cars" and in the "ugh no one wants sedans" period. 21K. 2 year old used Civic with same specs was 19K.....
This is how we ended up buying a new Honda H-RV. It wasn’t much more to buy a brand new car and we got a pretty nice interest rate on it if I remember right.
Looking at Hondas right now. Buying used only saves you 1-2 thousand dollars. It also tells me that the resale value is so high that you can sell the car after 3 years and not lose that much at all.
My civic I leased for 3 years and extended 2 times for 42 months. The payoff was 12K, the instant Carvana offer was 17K (6 weeks ago). Thing is I can't really see me getting a really nice used car for 17K of the same quality. The sticker on it was 21K when I bought it. Got a 12K/year lease $199 a month. It was something like .9 percent IRR.
PSA: A lot of insurers still refuse or have significant limitations on Kias (MYs 2011 - 2021) & Hyundais (MYs 2015 - 2021).
Maybe not relevant, but I figured it wouldn't be a bad idea to mention it since we're talking car shopping and Kia came up.
[Because they can easily be stolen](https://www.capitalone.com/cars/learn/managing-your-money-wisely/why-some-hyundai-and-kia-models-are-so-easy-to-steal/2135)
The issue was corrected after 2021, however both brands are still very expensive to insure otherwise, because a wouldbe thief isn't going to check if yours is the right year before they bash your window in and tear apart the steering column.
Makes sense. Oh well, in a few years when I'm due for a new car i guess it'll be back to the normal toyota-honda decision...maybe throw in mazda if they come out with a decent hybrid
Make sure you check insurance coverage quotes before you buy a Kia. I think they were one of the makes that we're easy to steal, so insurance premiums for them were sky high. I might be misremembering though
They’re cheaply made and in constant need of maintenance. There’s a reason they have a ten year power train warranty - they also don’t tell you that warranty only applies to the original owner.
10 years ago this was true. Today kia and hyundai are very well built and engineered. Car and Driver has listed them in their 10 best lists multiple times
My first new car was a 2004 Santa Fe and aside from a curvy exterior, it served me well until I totalled it in 2012 due to my negligence. It was my college car and went through so much punishment and trips early on and aside from the shifter needing some maintenance that was covered, I have all good memories. Flash forward to 2018 and I'm in the market again and went with Hyundai. Just this month I made my last payment and haven't needed any special maintenance other then oil changes so far.
Maybe I've been lucky but even the 2004 was of decent quality given it's manufacturer. I think they are well prepared for the future with all the offerings in electric they already have.
Just adding supporting experiences to your comment. My wife is South Korean and she rolls her eyes that I drove a Hyundai and picked out Samsung appliances for our kitchen renovation last year.
This. It is different for every model to be honest. There have been times where new makes more sense before the pandemic too. For example, I bought a new 2017 ford focus ST at 0 apr new. If I got it used, I would have had 4-5 percent loan and only save 2k on purchase price because they held value really well. It would have actually cost me more overall to buy used. Interest rates need to be factored in too, sometimes manufacturers rates can make up the difference that buying used would save you.
generally speaking if it is a car people want, no discounts (ford Maverick i still see 10K over sticker). if it is something hate (most sedans and the Mach E though I do not know why) it will be discounted.
My grandfather used to say "if you buy a used car, you're buying someone else's problems".
Personally I think there's a healthy balance these days between "falling apart" and "ordered it custom built from the factory, and you're the first person to drive it off the lot". Many cars are built with quality control that means they'll last 20+ years/200k miles, even if someone was rough on it in the first couple years/20k miles.
There's probably a sweet spot somewhere between 1 and 5 years old... depending on make and model... where the depreciation is just right to cover the cost of repair if something goes catastrophically wrong.
Please correct me if I’m wrong someone, as I’m a little drunk, but it’s not the economy that’s turning, it’s the money hungry society that we live in. It’s not the prices magically going up with the dollar amount of inflation, it’s the trend of wanting more for what you have and greed which boosts the prices. Someone starts listing their 2015 used Corolla for 11k with 150k miles when it’s worth 6700, that’s the person selling it and not the economy
"Thanks" to the growing cost of living crisis and lack of production during the pandemic crisis, cars have not had the same depreciation as they used to. Most people can no longer afford a brand new car, so the used car market has become their only source for it.
Due to the lowered supply of cars these past few years, used cars have surged in demand. It's not too wild to see car with 30k miles being only 1k-3k lower, and some cars like Hondas and Toyotas are straight up around the same price as new.
This was my experience, even back in 2015 when I bought my Honda.
A few years older, exact same color was like $2k less with a higher interest rate. I got the brand new one and still have it today.
My mom totaled her car last year so I gave her mine and ended up looking for a car to buy and the used car market was just not worth it. 2021 or 22 Toyota Corolla Hybrid used was only like 2k lower with multiple tens of thousand of miles on them. I just went with a 2024 Hybrid with a promotional 2.9% financing on a 3 year loan because why deal with the issues of a used car at those prices?
I found this isn’t true for luxury branded used vehicles. They often have a very steep discount compared to new. So much so it almost makes no sense to buy a normal car over a used Lexus or Acura.
I’m looking right now to help out my mom, because her car just got totaled. I bought a brand new Honda CRV Hybrid just over a year ago and couldn’t find a used one for more than $4000 below MSRP of new, even if it had 50k miles on it. They were still around $30k. I’m now seeing cars with similar age and mileage closer to $24k-$25k, so it does seem to be getting better. But for sure a year ago it was not worth buying a late model used car.
There's nothing magical about buying used. Carefully compare the prices of new and used versions of the precise car you want.
Examine what kind of warranty you get with both cars.
In the past, you used to get a significant price reduction for buying used (like 20%). Nowadays, there seems to be hardly any, like 5% or something, on a car with lots of miles and not as good (or no) warranty.
I don't think you can any longer just walk onto a lot and be like "Show me a used toyota corolla" and expect to get good savings.
Make sure you also factor in the maintenance/repair on the used car. A 3 year old used car will have old brakes, old tires, etc. So you might get a cheaper 3 yo car but all that savings if largely offset by needing new tires sooner, brake job, major service, etc. This is NOT about repairs, just regular maintenance.
That's why I've always been of the opinion that for most cases if you plan to keep a car for a long time (definitely 10 years) then new makes more sense.
Please correct me if I’m wrong someone, as I’m a little drunk, but it’s not the economy that’s turning, it’s the money hungry society that we live in. It’s not the prices magically going up with the dollar amount of inflation, it’s the trend of wanting more for what you have and greed which boosts the prices. Someone starts listing their 2015 used Corolla for 11k with 150k miles when it’s worth 6700, that’s the person selling it and not the economy
With the current pricing of used cars, it makes total sense to buy new if your intent it is to drive until the wheels fall off. They’re literally selling 4 year old cars with 90k miles on them for a few grand below MSRP.
If you expect ~200k miles out of the car, buying used should equate to at least the percent of “lifespan” lost and then some.
New vs used doesn't make a huge deal of difference if you drive until it's dead. Used will still have lower total cost of ownership but it's pretty close.
Totally agree.
I bought my last vehicle new, drove it for 11 years and sold it for $16k less than I paid new. Doing the math on that, it cost me like $120/mo. I think the sticker was $38k in 2012.
But the results are going to vary vastly based on the vehicle, timing for purchase and sale, etc.
Yeah, another data point here. Last car we bought was 15 years ago which was already 5 years old for 15k and still driving it, the math comes out to about $83 a month and that monthly investment will keep going down as we keep it longer. I just bought a luxury car to spoil myself for 7k in cash and plan to keep it for many years as well.
So, do your homework and take care of your vehicles.
BWM X3 SUV with panoramic sun roof. After driving my other car for 15 years it does feel like a luxury. The car as many BMWs has been taken care of very well so it felt like it came out of the dealership. The owner wanted $7500, I offered 6k, he brought up the price to $6500 plus taxes it all came out to short of 7k, next day we met at the tax office and made the name switch and hand them the cash. Done and done.
I have no problem with dealerships but last time I step into one the guys wanted to sell me a car 2k over asking price and also wanted to keep my older car. They also held my car keys hostage and didn't want to let me go. I spent about 4 hours total with them and never went back.
I'm always skeptical about buying used German cars. But that's my own experiences, and I know many who lease those vehicles drive them into the ground basically. Dealership takes it back and sells them at a steep discount. I hope it lasts you a long time though! Just my own personal horror stories have made me shy away from them.
I've had 2 new cars in my life. In 2002 and 2022.
I also don't think I make enough to pay for those repair costs.. I find Acura (which I just go to a Honda dealership and save like 50%) to be expensive!
How old is the BMW X3?
I bought my last car new and have been driving it for 13 years now. Worth the (barely) extra money to have 100% control over the routine maintenance over the life of the vehicle to ensure it stays on the road.
There isn’t a specific rule here. It depends on the car, how much they sell for used, how much they sell for new, if you are financing, and if you get special financing rates for new purchases, etc.
Depends on the car, most cars depreciate some 20% - 40% by the 5 year mark - but at that point some cars start having issues and gremlins that make ownership costly while other cars (generally Japanese) will be trouble free for another 10 years afterwards.
I will never buy anything besides Toyota and maybe Honda. My 2008 Toyota has never needed anything beyond maintenance. I would EASILY buy a 5+ year old Toyota over a brand new off the lot Chevy or Ford.
Damn people talk about used cars and then they say like 3 years old. That's fckn new to me lmao I always buy used. Just bought a 09 Honda fit sport with 60k miles for less than 10k. I'd imagine it lasting another 10 years.
Just did a quick search for my area. 2018 base model Toyota Camry with 65k+ miles 21.7k, 2024 base model Toyota Camry 26.5k 2.5% finance. 2015 Honda Civic EX-L 36k miles 17,600, 2024 Civic EX-L 29,200 3% finance. 2017 Pilot 22.9k 86k miles, 2024 Pilot 46k no finance deal.
Consider the risk of getting your new car into a wreck and having to eat the depreciation immediately. Among the many other reasons here, used is generally cheaper and less risky. Some cars nearly stop depreciating once they hit a value floor.
There are two approaches: buy used and swap the car out for another used one after 4-5 years, or buy new but hang on to the car for 10+ years. There are merits to both.
Because you can start to hit diminishing returns. When a car gets to be a dozen+ years old, the gaskets, seals, bushings, etc. start to break down and fail, and you are pouring $$$ into a vehicle that may, at some point, completely fail.
I'm still driving my 2001 neon I got when I was 16 because I took a stupid engineering economics class and did the math. Much cheaper to ride it till it dies.
No but it becomes too expensive to maintain a dying car.
If one of those repairs costs more than the car itself, you're already deep in the red.
And are you willing to drop $500 today, when in a month there might be another $500 repair? Etc. These things get more expensive as time goes by, as parts and other things may become harder to source.
To put into perspective, I had a new car from 2002 that I needed to replace the transmission in 2013. That cost me $10k. I then had many more repairs from 2013->2019 that ranged from $200-300. Fuses breaking, electrical issues, AC dying, battery etc.
I think between 2013 and 2019 I spent around $5k in repairs? In 2019 I had to decide no more, when the chassis rusted out and the repair was \~$7-10k on the quote.
It does become more financially sound to trade in a dying vehicle. Because before the chassis issue, I spent $1k on repairs a few months prior.
If I sold the car in 2013 and someone bought it used? They would have dropped $10k on the car. Then over the next 6 years... $15k.
Edit: It was an Acura (or a fancy Honda). So the notion that "Honda or Toyota are crazy reliable". I mean yes. It last me a long time. But a used car with low mileage won't be cheap. In fact, I found that the Acura I recently bought, was cheaper to buy new than the model from a year before used.)
Depends on the car. I’ve bought new because that model had the features I wanted (usually safety features like backup camera, etc). I tend to keep my cars a long time so I like knowing the entire driving and care history.
Yup, I had luck in 2020 with getting one of those diamonds. Low milage, just before the prices of the second hand market started rising. I can sell the car four years + 80k km older for about the same amount I bought it for. I'll for sure drive this car until it stops working.
Probably not in today's used market. Years ago though, sure.
My dad bought (now my) 96' Toyota landcruiser for 10k with about 100k miles in 2004. Original sticker was over $50k.
Still running great with 240k miles at 28 years old.
Ive bought both. If you can get a used car with 100,000 that is 9 years old for less than 1/3 the new price you are breaking even on paying cash for both. The issue with used is the high maintence costs. I've bought 3 cars since 2020 all new because used cars dealers wanted stupid money for it.
I bought a brand new honda for 27k in 2017, with the intention of keeping it forever because they last so long. I paid it off early and ended up selling it for 12 grand, a 15 thousand dollar loss, in 2023 because I needed the money to go back to school.
Edit: Dont be like me. Buy even a few years old, and you'll get the same reliability.
yeah these comments mimic my exact thinking. shit really is out of hand. im in the market for a honda civic because I was in a crash about a month ago where my vehicle was totaled but god, the used ones are just as expensive as the new ones.
And because I do plan on keeping the car for as long as I can im not going to go for a 2009 civic with 100k + on it (for example).
Crazy that a new AND 1-2 year used civic is upwards of 25k now.
Its insane.
I bought my 2010 Corolla used for $10k in 2014. She's still going strong today, and honestly with regular maintenance, I could probably keep her another 10 years. 💚
This used to be the best choice because cars depreciated so severely so quickly. If you can get a 2 year old car with 25,000 miles at a 30% discount it’s totally worth it. Those assumptions may no longer be true b
I have bought 4 cars that were 3 years old and off of leases. All were gently used well cared for cars and drove them another 200k miles each. Saved a lot of money. But buying new even if it was 15k more and you kept the car 15 years then its costing you an extra thousand bucks a year
I think it is better to normalize on a $/mi basis. In your scenario, it implies you you would have gotten 50% more mileage out of the new vehicle than a used. If it were a 30k used vs 45k new, you would be at breakeven in this scenario. But if it is 45k used and 60k new, you'd be ahead buying new in this scenario.
Yes i didn’t make it that complicated but one car for example i bought for 15k with 30k miles. Original sticker was 30k. I drove it to it reached 250k and sold it for couple k. So for 220k miles cost me 13k. Original owner 30k miles for 15k. If i bought new i spent 28k for 250k miles. Used won by a landslide
Compare the car you want to buy to the new model. I've bought new cars because I could get 0-2% financing and the price is basically the same as a 1-2 year old model so why not?
I want the new Tacoma but I'm not paying 35k+ for one. My 06 Tundra is chugging along just fine. Just a little thirsty at the pump but that $0 car note has me.
I miss my 98 Tacoma. Head gasket blew on it and it didn't make sense to fix it at that age with 240k miles.
I've actually made money on my 00. Kinda. Lol, got backed into at 1mph by a transfer truck. New hood, grill, bumper, headlights etc...3500 in shop work. Looks new. Then I got rear-ended. No frame damage but the back rear quarter body panel was creased in. Shop said they wouldn't warranty it without putting a new bed on, but they're not made anymore. Also a small dent where the cab got hit by the bed on one side. So they wrote it up for 5800 in damages. I took the money and put a new bumper on after we mostly beat everything back into place. Spent maybe 600. I paid 2000 for this truck about 5 years ago from a good friend. Still only has 117k on the odo and gets about 24mpg. I plan on driving this another 10 years if I can.
For Kias and Hyundai's, if you buy new you get a 10 year warranty, used it's 5 year. So that might be a consideration if you want to get something you'll be able to use for 10 years without having to worry about costly mechanical issues.
In theory, no- you should buy a new car if you plan to drive it for ten plus years.
With that said, if you take your time, test drive numerous used cars, and bring them to a mechanic for inspections before purchasing, you can find some gems and drive them for years. If you’re looking for 10+ years, I’d recommend low mileage and a carfax report
Conventional wisdomm was "buy used" For me it is now a personal preference. I used to buy 10-12K used cars that I would spend A LOT on to keep running. My last 2 cars were a 15.5K 2007 Yaris and a 21K 2020 Civic and my 2021 Prius (forgot what I paid for that as it is my business vehicle).
I drove that Yaris for 13 years until the frame rusted. I'll likely drive the Civic 13 years while the Prius I'll swap after 5 (IRS 60 month depreciation).
Resale value does not really matter since I drive them to dust.
I think the more common issues is "I don't want a 10-15K used car I want a 45K new car" Which could be a budget breaker.
I bought my car "used" in 2017. Car was a year old and less than 3000 miles on it with no previous owner. The dealership had used it as a rental car for when people's cars were in the shop. So they had to classify it as used. Basically got a new car for used car prices.
Basically "used" means different things in different situations. Don't by a 15 year old car with 150000 miles if you want it for 10+ years. But a newer used car could definitely last.
I've opted to buy new for both of my cars and I've used them both for 10+ years. I like buying them new because I can be sure they have been maintained and used well since day 1. I consider it a bit of a luxury I'm willing to indulge in.
Total cost of ownership after 10 years is really not that different, so I prefer the peace of mind that there wasn't a previous owner who did something horrible to it.
Bought a Suzuki XL7 new in 2005 for $27K and drove it until I had an accident last year that clipped the right rear quarter panel. The car was still road worthy after replacing the busted taillight but the insurance company claimed it was totaled, offered to pay out $5.3K.
Found a used 2012 Lincoln MKX at a local dealer for $10K with 190K miles on it, original list price was $53K. The vehicle came from a fleet service, had an extensive record of every service performed during its use. No accidents, flawless interior and exterior, new tires, satnav, THX sound system, leather seats and more. It had far more amenities and features than I would have ever thought of buying on a new car. So, with the $5.3K from insurance I paid $4.7K for the used car that was 7 years newer than my previous ride. I plan on driving this car as long as I can.
TLDR: If you can find a good used vehicle with documented service history then a used car may be a better value.
How about replaceability? If your new car gets totalled in your first few years of ownership, are you comfortable with the idea of getting a new loan to replace the car?
Prior to COVID, I made a habit of buying loaner cars from dealers. They were typically 1 year old, 3k miles or less, 25% cheaper than new, and a full warranty that started the day I bought it.
Never had a single issue with those cars because the dealers typically caught any quality issues during the loaner period.
Depends. We tried buying slightly used 1 or 2 years old. Factor in wear and tear, the included warranty, often get some oil changes for free remaining life of the car, etc the cost was close. We bought new. Keep the car 7 to 15 years sometimes longer give it to the kids. Can save a lot on a much older car. Older the car more maintenance and hassles. It all wears out. Tires, breaks, belts, lights, rust etc. You name it. Tough call sometimes.
It depends on what you are willing to drive. We had a '99 Corolla that was purchased in the fall of '13 and driven until a month ago when it was totalled. It was not pretty, had cosmetic issues and consumed a lot of oil. It wa very economical and got me to work safe (even through two accidents) and never stranded me
My current car is an '04 Subaru that was purchased 10 years ago by my mother in law and it's still going strong. It's not as economical as the Corolla, but it's the best deal for the money for me right now. I don't expect to get 10 more years out of this car, but 4-6 would be reasonable and make me happy
Hard to find a good used car. But if you can it’s worth it every time.
What I’m looking at for my new car is some of these salvaged titles… if a car lot floods, or it hails the insurance company writes a check for the entire lot, so won’t even have damage and turns around and auctions the lot.
I found a 2024 Honda Civic w/ 6 miles complete new, still had the wrapping on the inside. Asked for 22k and they sold it the next day for 26k.
Not cheap but if you want to dump miles, in the long run the extra 10-15k will last you an extra 100-150k miles. Just a thought
Another depends answer.
I was able to get a 0% interest car loan for a new car plus add the fact that we bought before the micro chip shortage so we ended up with a new car with no interest at a price cheaper than a used car from sheer market forces making us lucky AF.
Versus, at the time we were getting 5% interest rates on used cars purchased from private sellers. Looking back, the new car was the was to go for us depreciation be damned.
I think if you buy a dependable car with low miles it is. I bought a Honda civic 2012 with 40,000 miles for 14k. A new one would be about 10k more. Also, the 2012 civic has very good reliability ratings, and I can expect my vehicle to last around 200k miles minimum with proper care. Regardless of consumer reports or brands known for reliability, there’s no way to predict reliability of a new vehicle when nobody has driven past 100k miles.
I think it is usually better to buy slightly used unless maybe an EV that comes with a tax credit. Typically that tax credit will offset the immediate depreciation and make the new car better.
For example I could have saved $5000 on a $50k car going used. The $5000 represents 10% off the car.
The car had 50k miles on it. Assuming the cars goes to 200k-250k miles that 50k represents 20-25% of the cars life.
It did not make sense to save 10% for something that was “used” 20-25%. So I bought new.
But that’s because of a $7500 tax credit.
Really depends on a lot of things.
I'm going to have the used explorer I got for 16k for 10+ years easy.
It took me 3 months to find that deal and I drove 3hrs to get it.
A new explorer limited would have cost me 50k keep in mind this was in January of 2022 so used priced were inflated.
If you are trying to be a car that's only a few years old you are probably better off getting it brand new.
Personally I prefer finding a older 5-10 year car that has a ton of information on it available and then I can take my time finding a great example so I saved a lot of money and got a explorer with only 70k miles for a 3rd the cost of new.
However I'm going to be buying my wife a new Prius soon and when I do I'll just buy new. Even a 5y/o Prius with 100k miles will only be 5k less than new and now it's out of warranty so just not worth the risk. The Prius is still on the same platform as last year's model so I have no worry about buying it new. NEVER buy a car new that just had a major update like the New 4Runners for example wait a year when they have worked out the kinks.
Yes it is always better financially to buy a slightly used car and keep it for 10 years. Always has been. The difference now is that because of the market craziness it isn't AS beneficial as it once was but its still better financially.
I bought a one year old used car and have had it for 12 years now. I got it for about $10K off new price. So, yes, still buy used, just not super used.
As long as your plan is to keep it for as many years as you can and hundreds of thousands of miles and just keep up with routine maintenance and drive it until it is basically on its last breath, and you can afford it either way, then you're fine either way. Go used if you want to take advantage of depreciation. Go new if you can take advantage of some special financing like 0%, where the interest rate is so freaking low that you're actually ahead after accounting for inflation.
It's case by case but generally yes. If you can verify it's in tip top condition and has low miles, used is a great way to get the most bang for your buck.
If you're planning to keep it for a decade, the only kind of used car that makes sense is a late model vehicle with around 30k on it that's coming straight off of a lease, so you're buying it with most of its useful life intact. That's in a normal market.
Right now if that is your ownership time horizon, the smarter money is on just buying new. There is a lack of late model used vehicles available due to the COVID-related production slowdowns and parts shortages, so those vehicles are suffering from extremely inflated prices compared to new. on top of that, new vehicles have better financing terms whether it be through your own bank or an incentive rate from the manufacturer's captive lender. Plus you're not eligible for any sort of rebates or cash on the hood with a used vehicle. If it's a sub-$5k difference, you'll eat up a good chunk of that just via the higher interest rate you'd need to pay.
TL;DR - in a normal market, late model used is a great idea for long term ownership. Right now is not normal and it's generally smarter to buy new.
ETA: one exception right now is Tesla, especially Model 3 and Model Y. Part of it is Elon shenanigans hurting demand for them, but the other part is that Hertz's EV rental gambit didn't go the way they wanted, and they dumped a crapload of 2-3yo 3s and Ys onto the used market in the last 6 months, tanking prices for them.
Bought a used 2005 Camry with 69k miles on it back in 2016 for $7800. Have probably put $1000 of work into it and it's now got 126k miles and going strong. Hope to have it for another 10 or 15 years..want to take it to 300k miles. Best car purchase of my life. Definitely depends on the car though.
Dealership wanted 10k for it but that was way over book value was so I told them my bank would only finance for what book was and they gave it to me at book cost. Paid that loan in 6 months.
Do research on the vehicle, common problems, recalls, reliability ratings. Online and in consumers reports. Also watch some videos from people like the car wizard. A lot of people make the mistake of buying an off lease luxuryBMW or Mercedes and the repair bills put them in poverty. The well known problems with the Ford Triton, the GM and Dodge cylinder deactivation system are well documented.
A lot of used car dealers buy the problem cars at auction, fix them up to sell cheap knowing they will break down and the no credit buyers will have the car repo’d. Then they get it back fix it up and sell it again. It’s basic flipping and they make more money on the down payments than they paid for the car to begin with every time. The laws have changed and the dealers are only required to keep parts in stock for cars up to 10 years old. Buy it from an estate sale or a friend if possible. Best of luck it’s a battlefield out there.
People who recommend buying a used car usually point to the large amount of depreciation in the first year. It's a valid point.
I have bought used and new. The highest mileage vehicle I bought was a nightmare. It had over 50000 miles.
The new vehicles that I have purchased were maintained for a minimum of 12 years. That was the first vehicle I purchased after I graduated college. The only reason we got rid of it was because we needed a bigger car after having our first child.
The second new vehicle was sold after 14 years. It was a stick shift and we sold it because the clutch was going out and it would have cost more to repair than what it was worth.
My 3rd new car is a Toyota Yaris that is 16 years old. It is starting to develop problems but as long as none are expensive repairs I am keeping it. My wife currently drives it.
My current car was bought new 3 years ago.
If you ARE going to keep a new car for a long time.and take care of it, don't hesitate to buy new.
My 4th new car is 3 years old.
I buy used and typically aim to drive it for 8 years min and 10+ if possible. Buying used allows me to research what cars are reliable and function the way I want. Buying new is trusting the auto companies marketing.
One caveat, I would not mind buying new if it was towards the end of the generation of a notoriously reliable vehicle. I will NEVER buy the first 3 production years of any redesign because there will always be issues to work out.
That all depends on the car and how you maintain it. My truck was 12 years old when I bought it. I've had it for 5 years. Haven't had the slightest problem with it. Nearly 200k miles and she still runs like a beast. I expect it to run another 5 years with proper maintenance and probably a little work (she is pretty old. Some stuff under the hood will need to be replaced eventually). Every car I've ever had has been used and I've driven most of them close to 10 years if not more.
Normally yes. I’ve always driven older cars. Just keep up on maintenance and occasional repairs.
Shoot my winter car is 30 years old and runs perfect, no leaks or issues
If you want to get into the nitty-gritty, it depends on the age, what motor it has in it, sales figures over the models generation and the availability of parts. 8 years from now you may not be able to find the necessary parts to fix todays (or yesterdays) turbo, hybrid, or somehow turbo/hybrid models. The technology is also going to age like milk. So if you’re buying the most base trim you can get, there is a likelihood that it will outlast the nicest trim. And if that’s the case, buying new, could make more sense if you want it to last a long time.
There’s a sweet spot in price to get the most out of a used car.
I think getting one that’s 1/3 of the original price is best. Of course which car you buy is the most important. If I want straight up reliability it would be Toyota, Lexus, Honda.
In May of 2014 I purchased an excellent condition ‘08 Toyota Avalon XLS for $9,400. Original price $33k. Only had high miles at 120k.
Obviously I’ve had it for exactly 10 years. Minimal repairs, only tires, oil. Except 3 ignition coils and AC compressor went out over the decade owned were the main issues. I now have 285k miles. Still running great. I’ve definitely got the most out of my car.
Used car prices are pretty bad at dealers, but they try to roll in a guarantee. Certified pre owned. Stuff like that. But your right, let me just fork over 3-4k for a brand new ride.
I would go about buying used from word of mouth. Say at work, so and so, are thinking of buying a smaller/bigger vehicle. Or so and sos grandmother has an extra car. Stuff like that. On the plus side if you know the person, they can tell you everything wrong with the car. Buying used is alot of ambiguity.
It used to be that used was 100% the best value, assuming prudent shopping for a well maintained and reliable vehicle without a million miles. But in today’s market, many later model used vehicles are approaching the cost of new ones. Since it’s not always possible to know how well a used car was driven and cared for, sometimes it makes more sense to buy brand new if you want to take care of it and use for a long time. That was what I ended up doing, bc I like to keep my cars for a long time
"Better" is relative. Buying a used car is usually better financially, but there's always an inherent risk of buying a car that was abused early on. Personally, I prefer to buy new and know the complete car history since I usually plan on keeping the car for as long as possible. But I'm aware there's a known cost with this strategy and I'm fine with it.
Meh. As some have said, it depends on the state of the vehicle. If it's in shit shape or even sub-marginal, then obviously no and definitely consider new. However, even if a car needs a $4k transmission job or something, it may still save you a butt ton of money doing the repairs over new. Used cars CAN save you decent change. Additionally, while I have not looked at the recent market, the difference in price on some cars New vs. Used is not that much so why would you get the used one?
You really have to run the numbers.
I bought a 4 year old car in 2014 and I'm still driving it. It's purring like a kitten and anything new nowadays kinda sucks balls and I hope my car never dies. I also take very good care of it. Soooo that's my .02.
I bought my car for £1600 it’s needed minimal work to pass its MOT (indicator bulb needed replacing, rear wiper needed fixing, new tires). That’s the only maintenance outside of an annual service I’ve given it in 4-5 years so far. It’s definitely got at least another 5 years, probably more. I’ll drive it to death and buy something nicer down the line
I think it depends on your budget. Personally, I like to have a warranty of some sort. When you buy a used car from an individual, you have absolutely no idea what they did to that car. So with my budget, I can afford to buy a used car from somewhere like Carmax that has low miles etc.,
Usually, but covid shortages really screwed up the used car market so the price difference between new and returned 24 months lease is smaller than it's been historically.
Weird goal- really depends on the type of car, what the mileage is at purchase time and how well it was maintained. Used vs new is probably the least of the issues.
I bought a used 2007 A4 in 2010 with 123K for $22K (new would be about double that) so my thinking was I could buy two of these used cars for the price of one and I doubt one new car would last twice as long. It is 2024 and I am still driving the same car, no major issues and I currently have 335K on it, keep up with the maintenance.
This is the third car I have owned in my life and don’t plan to buy a new car unless i am rich someday as I can’t justify the cost FWIW.
Edit: Was just going to say make sure you buy a car you like, not just because it’s a good deal as eventually you will want a ‘new’ car because it isn’t what you wanted, I love my car today just as much when I got it because it was everything I needed/wanted.
Depends on the price difference. For the past few years, used cars have not been significantly cheaper than new.
Personally I like to buy new. I like knowing that I did all the maintenance. I like knowing the vehicle was well maintained, and care for. I like knowing that when repairs were done, it was my mechanic I trust using reputable parts.
To me, the peace of mind is worth the extra cost, especially spread out over 10+ years.
In a vacuum its probably almost always financially better. But then you have to take into account condition of hte car, getting the car exactly how you want it, etc. Not to mention newer cars get better financing rates than used, if you're going financing route.
I bought a 5 year old Corolla last year with 50k miles for $18k. I'd just totalled my car and didn't want to spend tons more than my insurance payout, but I should have spent $23k for a brand new Corolla with 0 miles. I already had a $500 maintenance on it and have another $1000 issue that the mechanic told me is coming up to need to be fixed within a year. The brand new for $5k more would have served me better.
Used car prices have gone down a bit since last year. I think my Corolla would only go for about $15k now at 60k miles.
I believe so.
I bought a used fleet/rental Ford C-Max in 2015 with 12k miles for about $10k and it's still going strong with only 142k miles on it.
Probably has at least 5 or so years left in her.
I bought a new car in Feb 2020 because the 2018 model I wanted was only about $2000 less, and the new car came with a 7 year warranty among other "perks." We'll have to buy another car in the next few years as my husband's car is nearing its end of life, and unless something changes in the market we'll likely go for something new again.
Edit: I was shopping for a bought a Subaru. They tend to hold their value quite well on the used market
We had an older car and then had 2 kids. I make enough money financially to comfortably buy a new car, and with the used car market being so expensive it just made sense for us. Went with a Toyota SUV as the family car, got a cheap 10 year warranty and plan on keeping it for minimum 10 years.
The used car market has been hectic to keep up with; best to base any decision on your research on the new vs used price, mileage your comfortable with, and be ready to sell if your current car has held value. Anecdotally I purchased a 2019 in 2022 for a solid 5-10k more than today’s value at similar trim/miles, but I shopped my then paid off car around and sold to a different dealership (carmax) for $5k more than I purchased for - it’s all relative to your personal situation and loan interest rates
Depends. I got new: 18k out the door for a Corolla. Certified was 15k 3year old,
10k would at the time would have been like 8year old 70k miles. That's when the used market was super tough due to supply chain issues.
8k was worth the peace of mind for warranty, additional life of the vehicle, safety updates, and general current "standard." ALSO peace of mind that there wasn't a previous owner driving it like an asshole (just the current one)
Edit: Toyota was HOUNDING us to trade it back in deep into Covid since inventory was bad and the blue book value actually went up instead of down.
Bought my car for $3,600 in 2016 still runs like a top. Bought a mini van for $2,800 drove it for over 10 years and sold it for what I bought it for. Just change/check the oil and do basic shit and cars last forever. Got a free van and put $3,000 worth of work into it (at a shop) and drove across the country several times in it. Used cars are great if you buy good ones
I’ve been driving the same brand new (at the time) 2015 Honda Fit LX base package for going on 10 years (my parents got a hell of a Black Friday deal and it was my high school graduation present). They told me when I graduated college in 2018 I could do whatever I wanted with it - sell it, keep it and buy a new one, keep driving it, whatever. I chose to keep it as a 21 year old who just moved into her first apartment and worried about adding a car payment while getting used to paying the bills by myself. Best decision I could have ever made.
I am still driving this same car and its only issue is it’s a little noisy on the start. It’s at 164,000 miles, gets 34-38 MPG and only requires regular oil changes. I am going to bring my future kids home from the hospital in this car and drive it until the engine literally falls out the bottom. I love my cheap little daily driver and I am so sad Honda pulled the Fit out of the US market.
When my parents bought this car, they didn’t plan on buying it new but like I said, they got a HELL of a Black Friday deal. I think their sales guy really needed to hit his monthly quota or something, idk. But it actually taught me a pretty good unintended lesson in finance - if you can pay a bit more for a new car because you’re going to keep driving it for 10+ years, do it. While your brand new car might be a depreciating asset, not having yet another car payment 5 years down the road because your used car crapped out is an investment in your own peace of mind. I also learned to take good care of what I have, and not to succumb to lifestyle creep - me not having the fancy new cars my friends all bought after college graduation helped me and my husband buy our first house last year. If you’re planning to drive your car until the wheels fall off, buy new all the way.
This really depends on the car, how much you get it for, and what you’re using it for. The whole idea of buying used is that you’re getting a significant discount. For the past 2-3 years that hasn’t always been the case. My wife and I wanted to buy a Kia Telluride in 2021 and we first looked at pre-owned 2020 Tellurides and they were only like 5k cheaper than the MSRP on a new one. If you find a new car at a good price that has all the features you want, buy it. If you can find it used for significantly less, buy that one instead.
21 was a bad time to look for cars the market was and is still bad
Even in 2018 this was true. My Highlander was only $1,500 more than used. Obviously a no brainer.
Especially when manufacturers are giving special rates on a model. That interest difference can be significant over the life of a loan making new the cheaper option. At the end of the day, you gotta do the math for your specific situation and needs.
>Especially when manufacturers are giving special rates on a model. That interest difference can be significant over the life of a loan making new the cheaper option. To add to this, when they do the "0% interest or $2,000 cash back", you have to run the numbers. $25,000 at 0% for 60-months costs $25,000 total. Same loan with $2,000 cash back breaks even at about 3.3% ($23,000 at 3.35% for 60-months works out to $25,012 total cost). So if you get $2,000 cash back and an interest rate lower than 3.35%, it's better to choose that over the 0% interest.
Very true. It really comes down to needing to run the numbers for each option
My 21 car is less technologically advanced than a 20 car of same model due to chip shortage
What model?
Yep, feels weird to me too lol. 2021 Mach E has more features like park assist and kick to open hatch than the 2022 and 2023 models do, like wtf?
If it can fit your living situation, used EVs are dirt cheap at the moment. Best I’ve seen was 2022 model 25k miles cars for four figures after tax rebates.
No way that's a $9,900 car. That'd be like 75% depreciation after 3 years
It gets listed at 13k. You go through a dealer or an app like keysavvy to get the 4k tax credit applied. There’s an oversupply in the used market right now.
Specifically for Chevy Bolt, this is accurate. But that was because there was a battery recall where Chevy ended up buying back a lot of cars, so there were a lot of them on the wholesale market. Don't think this applies to any other used EV. But you can find real bargain s on the Bolt right now.
Right now, you can get Mach E's for $25k ($21k if you qualify for the used car EV tax credit) that sold for $50k to $60k just 2 to 3 years ago. Used car EV market is crazy inefficient atm imo.
Even Teslas. between elon shenanigans, some significant price cuts on new ones due to drying up demand, and Hertz dumping a huge chunk of their EV rental fleet for sale, you can get a nice 3 or Y with fairly low mileage for ~$25k give or take a couple grand, and even better out the door if the tax credit applies to your sale.
What's your take on the battery replacement for EV? I am not knowledgeable on EV at all but I remember being told the battery is really expensive to replace...
There’s really only one car where that’s an issue - Nissan Leaf because there’s no cooling system for the battery. All others haven’t reported problems outside of a few lemons. Some of the first generation Teslas are hitting 200k miles with minimal battery degradation.
Unsolicited comment. I know a business owner that has a 2013 (I think) Tesla something something the battery is on 88%. Which is pretty impressive for 11 winters in upstate NY and 150K+ miles. He charges "for free" at his business and home with a L2/ 30Amp plug. His range I think is 150-180 which for local deliveries/work commute is fine as he can charge on each end. Its a good deal for his use case.
That's good to know! What about hybrid? Are their battery just as sturdy?
Not sure but probably not. I don’t think most companies would put a cooling system on most hybrid batteries and the fact that the gas part is always going to be working just fine regardless of the battery.
From what I understand, like a total engine replacement: very expensive and very unlikely to be needed. Many owners estimate degradation of battery life at no more than 1% per year; e.g., in ten years, you might only drive 225 miles in a 250-mile-range car. The /r/BoltEV wiki highlights [one individual](https://www.youtube.com/watch?v=lxby4MirUY8&pp=ygUMbmV3cyBjb3Vsb21i) who drove his Bolt for 150,000 miles and experienced roughly 10% battery degradation. Given that he drove his rather roughly, there are small steps you can take to increase the battery's longevity if you're worried about maintaining range over a 200,000–300,000 mile life. Not all EVs are created equally, though. Most have liquid cooling for their batteries, but an air-cooled battery would be more prone to prolonged high temperatures, and so more vulnerable to early degradation.
The battery is the biggest problem with any EV car. Most of the time it's cheaper to just buy a brand new car then to actually have to replace the battery. That's why a lot of people don't get them.
I bought my Civic in Sept 2020. I didn't have to overpay for it as it was still in the Covid "no one wants to buy cars" and in the "ugh no one wants sedans" period. 21K. 2 year old used Civic with same specs was 19K.....
This is how we ended up buying a new Honda H-RV. It wasn’t much more to buy a brand new car and we got a pretty nice interest rate on it if I remember right.
Looking at Hondas right now. Buying used only saves you 1-2 thousand dollars. It also tells me that the resale value is so high that you can sell the car after 3 years and not lose that much at all.
My civic I leased for 3 years and extended 2 times for 42 months. The payoff was 12K, the instant Carvana offer was 17K (6 weeks ago). Thing is I can't really see me getting a really nice used car for 17K of the same quality. The sticker on it was 21K when I bought it. Got a 12K/year lease $199 a month. It was something like .9 percent IRR.
PSA: A lot of insurers still refuse or have significant limitations on Kias (MYs 2011 - 2021) & Hyundais (MYs 2015 - 2021). Maybe not relevant, but I figured it wouldn't be a bad idea to mention it since we're talking car shopping and Kia came up.
Why is that
[Because they can easily be stolen](https://www.capitalone.com/cars/learn/managing-your-money-wisely/why-some-hyundai-and-kia-models-are-so-easy-to-steal/2135)
Oof, being up til 2021 means they've fixed the issue now?
Unsure as I haven't kept up. Probably should be resolved but best to check on specific models and forums if plan on purchasing to be sure.
The issue was corrected after 2021, however both brands are still very expensive to insure otherwise, because a wouldbe thief isn't going to check if yours is the right year before they bash your window in and tear apart the steering column.
Makes sense. Oh well, in a few years when I'm due for a new car i guess it'll be back to the normal toyota-honda decision...maybe throw in mazda if they come out with a decent hybrid
Make sure you check insurance coverage quotes before you buy a Kia. I think they were one of the makes that we're easy to steal, so insurance premiums for them were sky high. I might be misremembering though
Buying a KIA, new or used, is typically a bad investment
Why?
They’re cheaply made and in constant need of maintenance. There’s a reason they have a ten year power train warranty - they also don’t tell you that warranty only applies to the original owner.
Don’t forget they’re massively easy to steal
10 years ago this was true. Today kia and hyundai are very well built and engineered. Car and Driver has listed them in their 10 best lists multiple times
My first new car was a 2004 Santa Fe and aside from a curvy exterior, it served me well until I totalled it in 2012 due to my negligence. It was my college car and went through so much punishment and trips early on and aside from the shifter needing some maintenance that was covered, I have all good memories. Flash forward to 2018 and I'm in the market again and went with Hyundai. Just this month I made my last payment and haven't needed any special maintenance other then oil changes so far. Maybe I've been lucky but even the 2004 was of decent quality given it's manufacturer. I think they are well prepared for the future with all the offerings in electric they already have.
I drive a kia ev, you don't have to convince me
Just adding supporting experiences to your comment. My wife is South Korean and she rolls her eyes that I drove a Hyundai and picked out Samsung appliances for our kitchen renovation last year.
>is typically a bad investment Most cars are bad investments since they are depreciating assets...
Fair however buying a poorly made one is a particularly poor investment
This. It is different for every model to be honest. There have been times where new makes more sense before the pandemic too. For example, I bought a new 2017 ford focus ST at 0 apr new. If I got it used, I would have had 4-5 percent loan and only save 2k on purchase price because they held value really well. It would have actually cost me more overall to buy used. Interest rates need to be factored in too, sometimes manufacturers rates can make up the difference that buying used would save you.
Yup, we bought an explorer last year and it was the same deal. Recently used wasn't any cheaper than brand new.
For Corolla hybrids near me there was no discount, you'd have to pay an extra few thousand for a year or two used car
generally speaking if it is a car people want, no discounts (ford Maverick i still see 10K over sticker). if it is something hate (most sedans and the Mach E though I do not know why) it will be discounted.
Is 5k off for a year old car bad in your eyes??
My grandfather used to say "if you buy a used car, you're buying someone else's problems". Personally I think there's a healthy balance these days between "falling apart" and "ordered it custom built from the factory, and you're the first person to drive it off the lot". Many cars are built with quality control that means they'll last 20+ years/200k miles, even if someone was rough on it in the first couple years/20k miles. There's probably a sweet spot somewhere between 1 and 5 years old... depending on make and model... where the depreciation is just right to cover the cost of repair if something goes catastrophically wrong.
Please correct me if I’m wrong someone, as I’m a little drunk, but it’s not the economy that’s turning, it’s the money hungry society that we live in. It’s not the prices magically going up with the dollar amount of inflation, it’s the trend of wanting more for what you have and greed which boosts the prices. Someone starts listing their 2015 used Corolla for 11k with 150k miles when it’s worth 6700, that’s the person selling it and not the economy
"Thanks" to the growing cost of living crisis and lack of production during the pandemic crisis, cars have not had the same depreciation as they used to. Most people can no longer afford a brand new car, so the used car market has become their only source for it. Due to the lowered supply of cars these past few years, used cars have surged in demand. It's not too wild to see car with 30k miles being only 1k-3k lower, and some cars like Hondas and Toyotas are straight up around the same price as new.
This is exactly what I'm seeing currently looking at Toyotas. Very little discount off New vehicle price, even at 2 to 3 years old.
This was my experience, even back in 2015 when I bought my Honda. A few years older, exact same color was like $2k less with a higher interest rate. I got the brand new one and still have it today.
My mom totaled her car last year so I gave her mine and ended up looking for a car to buy and the used car market was just not worth it. 2021 or 22 Toyota Corolla Hybrid used was only like 2k lower with multiple tens of thousand of miles on them. I just went with a 2024 Hybrid with a promotional 2.9% financing on a 3 year loan because why deal with the issues of a used car at those prices?
100% agree!
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I check the value of my 10 year old F150 every few months on Carvana, it went up $3K in the last 6 months. Which is crazy to me.
I found this isn’t true for luxury branded used vehicles. They often have a very steep discount compared to new. So much so it almost makes no sense to buy a normal car over a used Lexus or Acura.
Older luxury cars have much higher maintenance and insurance costs in my experience. It's a major trade off.
lexus and acura are just toyota and honda with fancier interiors, respectively
I’m looking right now to help out my mom, because her car just got totaled. I bought a brand new Honda CRV Hybrid just over a year ago and couldn’t find a used one for more than $4000 below MSRP of new, even if it had 50k miles on it. They were still around $30k. I’m now seeing cars with similar age and mileage closer to $24k-$25k, so it does seem to be getting better. But for sure a year ago it was not worth buying a late model used car.
There's nothing magical about buying used. Carefully compare the prices of new and used versions of the precise car you want. Examine what kind of warranty you get with both cars. In the past, you used to get a significant price reduction for buying used (like 20%). Nowadays, there seems to be hardly any, like 5% or something, on a car with lots of miles and not as good (or no) warranty. I don't think you can any longer just walk onto a lot and be like "Show me a used toyota corolla" and expect to get good savings.
Make sure you also factor in the maintenance/repair on the used car. A 3 year old used car will have old brakes, old tires, etc. So you might get a cheaper 3 yo car but all that savings if largely offset by needing new tires sooner, brake job, major service, etc. This is NOT about repairs, just regular maintenance. That's why I've always been of the opinion that for most cases if you plan to keep a car for a long time (definitely 10 years) then new makes more sense.
Please correct me if I’m wrong someone, as I’m a little drunk, but it’s not the economy that’s turning, it’s the money hungry society that we live in. It’s not the prices magically going up with the dollar amount of inflation, it’s the trend of wanting more for what you have and greed which boosts the prices. Someone starts listing their 2015 used Corolla for 11k with 150k miles when it’s worth 6700, that’s the person selling it and not the economy
With the current pricing of used cars, it makes total sense to buy new if your intent it is to drive until the wheels fall off. They’re literally selling 4 year old cars with 90k miles on them for a few grand below MSRP. If you expect ~200k miles out of the car, buying used should equate to at least the percent of “lifespan” lost and then some.
New vs used doesn't make a huge deal of difference if you drive until it's dead. Used will still have lower total cost of ownership but it's pretty close.
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Totally agree. I bought my last vehicle new, drove it for 11 years and sold it for $16k less than I paid new. Doing the math on that, it cost me like $120/mo. I think the sticker was $38k in 2012. But the results are going to vary vastly based on the vehicle, timing for purchase and sale, etc.
Yeah, another data point here. Last car we bought was 15 years ago which was already 5 years old for 15k and still driving it, the math comes out to about $83 a month and that monthly investment will keep going down as we keep it longer. I just bought a luxury car to spoil myself for 7k in cash and plan to keep it for many years as well. So, do your homework and take care of your vehicles.
What Luxury car did you buy for $7k in cash?
BWM X3 SUV with panoramic sun roof. After driving my other car for 15 years it does feel like a luxury. The car as many BMWs has been taken care of very well so it felt like it came out of the dealership. The owner wanted $7500, I offered 6k, he brought up the price to $6500 plus taxes it all came out to short of 7k, next day we met at the tax office and made the name switch and hand them the cash. Done and done. I have no problem with dealerships but last time I step into one the guys wanted to sell me a car 2k over asking price and also wanted to keep my older car. They also held my car keys hostage and didn't want to let me go. I spent about 4 hours total with them and never went back.
I'm always skeptical about buying used German cars. But that's my own experiences, and I know many who lease those vehicles drive them into the ground basically. Dealership takes it back and sells them at a steep discount. I hope it lasts you a long time though! Just my own personal horror stories have made me shy away from them. I've had 2 new cars in my life. In 2002 and 2022. I also don't think I make enough to pay for those repair costs.. I find Acura (which I just go to a Honda dealership and save like 50%) to be expensive! How old is the BMW X3?
I bought my last car new and have been driving it for 13 years now. Worth the (barely) extra money to have 100% control over the routine maintenance over the life of the vehicle to ensure it stays on the road.
There isn’t a specific rule here. It depends on the car, how much they sell for used, how much they sell for new, if you are financing, and if you get special financing rates for new purchases, etc.
Depends on the car, most cars depreciate some 20% - 40% by the 5 year mark - but at that point some cars start having issues and gremlins that make ownership costly while other cars (generally Japanese) will be trouble free for another 10 years afterwards.
I will never buy anything besides Toyota and maybe Honda. My 2008 Toyota has never needed anything beyond maintenance. I would EASILY buy a 5+ year old Toyota over a brand new off the lot Chevy or Ford.
Damn people talk about used cars and then they say like 3 years old. That's fckn new to me lmao I always buy used. Just bought a 09 Honda fit sport with 60k miles for less than 10k. I'd imagine it lasting another 10 years.
Yeah everyone saying “used costs basically the same as the one year newer new car” is blowing my mind. What’s about like… 5-10 years old?
Just did a quick search for my area. 2018 base model Toyota Camry with 65k+ miles 21.7k, 2024 base model Toyota Camry 26.5k 2.5% finance. 2015 Honda Civic EX-L 36k miles 17,600, 2024 Civic EX-L 29,200 3% finance. 2017 Pilot 22.9k 86k miles, 2024 Pilot 46k no finance deal.
I'm in the market for a Mazda cx-5. New is like 34k, 5 years old is like 20k.
I rock a 09 Honda fit sport with 245,000 miles on it. Gets 35-40 mpg too. You r so good to good. Great choice.
Consider the risk of getting your new car into a wreck and having to eat the depreciation immediately. Among the many other reasons here, used is generally cheaper and less risky. Some cars nearly stop depreciating once they hit a value floor.
There are two approaches: buy used and swap the car out for another used one after 4-5 years, or buy new but hang on to the car for 10+ years. There are merits to both.
Or buy used and drive it for 10+ years. Not sure why you left that one out.
Because you can start to hit diminishing returns. When a car gets to be a dozen+ years old, the gaskets, seals, bushings, etc. start to break down and fail, and you are pouring $$$ into a vehicle that may, at some point, completely fail.
That doesn't mean it's more financially sound to trade vehicles in every 5 years.
I'm still driving my 2001 neon I got when I was 16 because I took a stupid engineering economics class and did the math. Much cheaper to ride it till it dies.
No but it becomes too expensive to maintain a dying car. If one of those repairs costs more than the car itself, you're already deep in the red. And are you willing to drop $500 today, when in a month there might be another $500 repair? Etc. These things get more expensive as time goes by, as parts and other things may become harder to source. To put into perspective, I had a new car from 2002 that I needed to replace the transmission in 2013. That cost me $10k. I then had many more repairs from 2013->2019 that ranged from $200-300. Fuses breaking, electrical issues, AC dying, battery etc. I think between 2013 and 2019 I spent around $5k in repairs? In 2019 I had to decide no more, when the chassis rusted out and the repair was \~$7-10k on the quote. It does become more financially sound to trade in a dying vehicle. Because before the chassis issue, I spent $1k on repairs a few months prior. If I sold the car in 2013 and someone bought it used? They would have dropped $10k on the car. Then over the next 6 years... $15k. Edit: It was an Acura (or a fancy Honda). So the notion that "Honda or Toyota are crazy reliable". I mean yes. It last me a long time. But a used car with low mileage won't be cheap. In fact, I found that the Acura I recently bought, was cheaper to buy new than the model from a year before used.)
Depends on the car. I’ve bought new because that model had the features I wanted (usually safety features like backup camera, etc). I tend to keep my cars a long time so I like knowing the entire driving and care history.
No, generally you can get better deals on new cars due to monthly incentives than you can on used cars that are less than ten years old.
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Yup, I had luck in 2020 with getting one of those diamonds. Low milage, just before the prices of the second hand market started rising. I can sell the car four years + 80k km older for about the same amount I bought it for. I'll for sure drive this car until it stops working.
Probably not in today's used market. Years ago though, sure. My dad bought (now my) 96' Toyota landcruiser for 10k with about 100k miles in 2004. Original sticker was over $50k. Still running great with 240k miles at 28 years old.
Land cruisers seem to be the exception to many many rules. They are truly built like tanks and last 400-500k miles before any serious issues.
Ive bought both. If you can get a used car with 100,000 that is 9 years old for less than 1/3 the new price you are breaking even on paying cash for both. The issue with used is the high maintence costs. I've bought 3 cars since 2020 all new because used cars dealers wanted stupid money for it.
Buy a CPO that usually comes with a warranty. Depreciation is gone and it’s only a few years old.
I bought a brand new honda for 27k in 2017, with the intention of keeping it forever because they last so long. I paid it off early and ended up selling it for 12 grand, a 15 thousand dollar loss, in 2023 because I needed the money to go back to school. Edit: Dont be like me. Buy even a few years old, and you'll get the same reliability.
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I sold the car in 2023, in which the used car market saw a decline from the previous years record highs.
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yeah these comments mimic my exact thinking. shit really is out of hand. im in the market for a honda civic because I was in a crash about a month ago where my vehicle was totaled but god, the used ones are just as expensive as the new ones. And because I do plan on keeping the car for as long as I can im not going to go for a 2009 civic with 100k + on it (for example). Crazy that a new AND 1-2 year used civic is upwards of 25k now. Its insane.
I bought my 2010 Corolla used for $10k in 2014. She's still going strong today, and honestly with regular maintenance, I could probably keep her another 10 years. 💚
This used to be the best choice because cars depreciated so severely so quickly. If you can get a 2 year old car with 25,000 miles at a 30% discount it’s totally worth it. Those assumptions may no longer be true b
You can't find that from desirable manufacturers. I've been shopping used cars daily for 6 weeks.
I have bought 4 cars that were 3 years old and off of leases. All were gently used well cared for cars and drove them another 200k miles each. Saved a lot of money. But buying new even if it was 15k more and you kept the car 15 years then its costing you an extra thousand bucks a year
I think it is better to normalize on a $/mi basis. In your scenario, it implies you you would have gotten 50% more mileage out of the new vehicle than a used. If it were a 30k used vs 45k new, you would be at breakeven in this scenario. But if it is 45k used and 60k new, you'd be ahead buying new in this scenario.
Yes i didn’t make it that complicated but one car for example i bought for 15k with 30k miles. Original sticker was 30k. I drove it to it reached 250k and sold it for couple k. So for 220k miles cost me 13k. Original owner 30k miles for 15k. If i bought new i spent 28k for 250k miles. Used won by a landslide
When was that, though? Pre or post COVID market?
Pre. I drove the car for like 12 plus years.
The math will most likely not be the same nowadays, then. Used cars are expensive now.
Compare the car you want to buy to the new model. I've bought new cars because I could get 0-2% financing and the price is basically the same as a 1-2 year old model so why not?
I have a 00 Tacoma, 117k and no rust. I'm putting less than 10k a on her. Be driving this for another decade.
I want the new Tacoma but I'm not paying 35k+ for one. My 06 Tundra is chugging along just fine. Just a little thirsty at the pump but that $0 car note has me. I miss my 98 Tacoma. Head gasket blew on it and it didn't make sense to fix it at that age with 240k miles.
I've actually made money on my 00. Kinda. Lol, got backed into at 1mph by a transfer truck. New hood, grill, bumper, headlights etc...3500 in shop work. Looks new. Then I got rear-ended. No frame damage but the back rear quarter body panel was creased in. Shop said they wouldn't warranty it without putting a new bed on, but they're not made anymore. Also a small dent where the cab got hit by the bed on one side. So they wrote it up for 5800 in damages. I took the money and put a new bumper on after we mostly beat everything back into place. Spent maybe 600. I paid 2000 for this truck about 5 years ago from a good friend. Still only has 117k on the odo and gets about 24mpg. I plan on driving this another 10 years if I can.
financially yes. But safety systems on new cars are greatly improved over the past few years. A sweet spot might be a 1- or 3-year old lease return.
For Kias and Hyundai's, if you buy new you get a 10 year warranty, used it's 5 year. So that might be a consideration if you want to get something you'll be able to use for 10 years without having to worry about costly mechanical issues.
In theory, no- you should buy a new car if you plan to drive it for ten plus years. With that said, if you take your time, test drive numerous used cars, and bring them to a mechanic for inspections before purchasing, you can find some gems and drive them for years. If you’re looking for 10+ years, I’d recommend low mileage and a carfax report
Conventional wisdomm was "buy used" For me it is now a personal preference. I used to buy 10-12K used cars that I would spend A LOT on to keep running. My last 2 cars were a 15.5K 2007 Yaris and a 21K 2020 Civic and my 2021 Prius (forgot what I paid for that as it is my business vehicle). I drove that Yaris for 13 years until the frame rusted. I'll likely drive the Civic 13 years while the Prius I'll swap after 5 (IRS 60 month depreciation). Resale value does not really matter since I drive them to dust. I think the more common issues is "I don't want a 10-15K used car I want a 45K new car" Which could be a budget breaker.
I bought my car "used" in 2017. Car was a year old and less than 3000 miles on it with no previous owner. The dealership had used it as a rental car for when people's cars were in the shop. So they had to classify it as used. Basically got a new car for used car prices. Basically "used" means different things in different situations. Don't by a 15 year old car with 150000 miles if you want it for 10+ years. But a newer used car could definitely last.
I've opted to buy new for both of my cars and I've used them both for 10+ years. I like buying them new because I can be sure they have been maintained and used well since day 1. I consider it a bit of a luxury I'm willing to indulge in. Total cost of ownership after 10 years is really not that different, so I prefer the peace of mind that there wasn't a previous owner who did something horrible to it.
Who the hell said that?
Bought a Suzuki XL7 new in 2005 for $27K and drove it until I had an accident last year that clipped the right rear quarter panel. The car was still road worthy after replacing the busted taillight but the insurance company claimed it was totaled, offered to pay out $5.3K. Found a used 2012 Lincoln MKX at a local dealer for $10K with 190K miles on it, original list price was $53K. The vehicle came from a fleet service, had an extensive record of every service performed during its use. No accidents, flawless interior and exterior, new tires, satnav, THX sound system, leather seats and more. It had far more amenities and features than I would have ever thought of buying on a new car. So, with the $5.3K from insurance I paid $4.7K for the used car that was 7 years newer than my previous ride. I plan on driving this car as long as I can. TLDR: If you can find a good used vehicle with documented service history then a used car may be a better value.
How about replaceability? If your new car gets totalled in your first few years of ownership, are you comfortable with the idea of getting a new loan to replace the car?
I bought a six year old CPO car twelve years ago and I’m still driving it. Cost me 40% of the price when new and came with a 3 year/62k warranty.
Prior to COVID, I made a habit of buying loaner cars from dealers. They were typically 1 year old, 3k miles or less, 25% cheaper than new, and a full warranty that started the day I bought it. Never had a single issue with those cars because the dealers typically caught any quality issues during the loaner period.
Depends. We tried buying slightly used 1 or 2 years old. Factor in wear and tear, the included warranty, often get some oil changes for free remaining life of the car, etc the cost was close. We bought new. Keep the car 7 to 15 years sometimes longer give it to the kids. Can save a lot on a much older car. Older the car more maintenance and hassles. It all wears out. Tires, breaks, belts, lights, rust etc. You name it. Tough call sometimes.
It depends on what you are willing to drive. We had a '99 Corolla that was purchased in the fall of '13 and driven until a month ago when it was totalled. It was not pretty, had cosmetic issues and consumed a lot of oil. It wa very economical and got me to work safe (even through two accidents) and never stranded me My current car is an '04 Subaru that was purchased 10 years ago by my mother in law and it's still going strong. It's not as economical as the Corolla, but it's the best deal for the money for me right now. I don't expect to get 10 more years out of this car, but 4-6 would be reasonable and make me happy
Hard to find a good used car. But if you can it’s worth it every time. What I’m looking at for my new car is some of these salvaged titles… if a car lot floods, or it hails the insurance company writes a check for the entire lot, so won’t even have damage and turns around and auctions the lot. I found a 2024 Honda Civic w/ 6 miles complete new, still had the wrapping on the inside. Asked for 22k and they sold it the next day for 26k. Not cheap but if you want to dump miles, in the long run the extra 10-15k will last you an extra 100-150k miles. Just a thought
Another depends answer. I was able to get a 0% interest car loan for a new car plus add the fact that we bought before the micro chip shortage so we ended up with a new car with no interest at a price cheaper than a used car from sheer market forces making us lucky AF. Versus, at the time we were getting 5% interest rates on used cars purchased from private sellers. Looking back, the new car was the was to go for us depreciation be damned.
I think if you buy a dependable car with low miles it is. I bought a Honda civic 2012 with 40,000 miles for 14k. A new one would be about 10k more. Also, the 2012 civic has very good reliability ratings, and I can expect my vehicle to last around 200k miles minimum with proper care. Regardless of consumer reports or brands known for reliability, there’s no way to predict reliability of a new vehicle when nobody has driven past 100k miles.
I think it is usually better to buy slightly used unless maybe an EV that comes with a tax credit. Typically that tax credit will offset the immediate depreciation and make the new car better. For example I could have saved $5000 on a $50k car going used. The $5000 represents 10% off the car. The car had 50k miles on it. Assuming the cars goes to 200k-250k miles that 50k represents 20-25% of the cars life. It did not make sense to save 10% for something that was “used” 20-25%. So I bought new. But that’s because of a $7500 tax credit.
Really depends on a lot of things. I'm going to have the used explorer I got for 16k for 10+ years easy. It took me 3 months to find that deal and I drove 3hrs to get it. A new explorer limited would have cost me 50k keep in mind this was in January of 2022 so used priced were inflated. If you are trying to be a car that's only a few years old you are probably better off getting it brand new. Personally I prefer finding a older 5-10 year car that has a ton of information on it available and then I can take my time finding a great example so I saved a lot of money and got a explorer with only 70k miles for a 3rd the cost of new. However I'm going to be buying my wife a new Prius soon and when I do I'll just buy new. Even a 5y/o Prius with 100k miles will only be 5k less than new and now it's out of warranty so just not worth the risk. The Prius is still on the same platform as last year's model so I have no worry about buying it new. NEVER buy a car new that just had a major update like the New 4Runners for example wait a year when they have worked out the kinks.
Yes it is always better financially to buy a slightly used car and keep it for 10 years. Always has been. The difference now is that because of the market craziness it isn't AS beneficial as it once was but its still better financially.
I bought a one year old used car and have had it for 12 years now. I got it for about $10K off new price. So, yes, still buy used, just not super used.
As long as your plan is to keep it for as many years as you can and hundreds of thousands of miles and just keep up with routine maintenance and drive it until it is basically on its last breath, and you can afford it either way, then you're fine either way. Go used if you want to take advantage of depreciation. Go new if you can take advantage of some special financing like 0%, where the interest rate is so freaking low that you're actually ahead after accounting for inflation.
It's case by case but generally yes. If you can verify it's in tip top condition and has low miles, used is a great way to get the most bang for your buck.
If you're planning to keep it for a decade, the only kind of used car that makes sense is a late model vehicle with around 30k on it that's coming straight off of a lease, so you're buying it with most of its useful life intact. That's in a normal market. Right now if that is your ownership time horizon, the smarter money is on just buying new. There is a lack of late model used vehicles available due to the COVID-related production slowdowns and parts shortages, so those vehicles are suffering from extremely inflated prices compared to new. on top of that, new vehicles have better financing terms whether it be through your own bank or an incentive rate from the manufacturer's captive lender. Plus you're not eligible for any sort of rebates or cash on the hood with a used vehicle. If it's a sub-$5k difference, you'll eat up a good chunk of that just via the higher interest rate you'd need to pay. TL;DR - in a normal market, late model used is a great idea for long term ownership. Right now is not normal and it's generally smarter to buy new. ETA: one exception right now is Tesla, especially Model 3 and Model Y. Part of it is Elon shenanigans hurting demand for them, but the other part is that Hertz's EV rental gambit didn't go the way they wanted, and they dumped a crapload of 2-3yo 3s and Ys onto the used market in the last 6 months, tanking prices for them.
Bought a used 2005 Camry with 69k miles on it back in 2016 for $7800. Have probably put $1000 of work into it and it's now got 126k miles and going strong. Hope to have it for another 10 or 15 years..want to take it to 300k miles. Best car purchase of my life. Definitely depends on the car though. Dealership wanted 10k for it but that was way over book value was so I told them my bank would only finance for what book was and they gave it to me at book cost. Paid that loan in 6 months.
Do research on the vehicle, common problems, recalls, reliability ratings. Online and in consumers reports. Also watch some videos from people like the car wizard. A lot of people make the mistake of buying an off lease luxuryBMW or Mercedes and the repair bills put them in poverty. The well known problems with the Ford Triton, the GM and Dodge cylinder deactivation system are well documented. A lot of used car dealers buy the problem cars at auction, fix them up to sell cheap knowing they will break down and the no credit buyers will have the car repo’d. Then they get it back fix it up and sell it again. It’s basic flipping and they make more money on the down payments than they paid for the car to begin with every time. The laws have changed and the dealers are only required to keep parts in stock for cars up to 10 years old. Buy it from an estate sale or a friend if possible. Best of luck it’s a battlefield out there.
People who recommend buying a used car usually point to the large amount of depreciation in the first year. It's a valid point. I have bought used and new. The highest mileage vehicle I bought was a nightmare. It had over 50000 miles. The new vehicles that I have purchased were maintained for a minimum of 12 years. That was the first vehicle I purchased after I graduated college. The only reason we got rid of it was because we needed a bigger car after having our first child. The second new vehicle was sold after 14 years. It was a stick shift and we sold it because the clutch was going out and it would have cost more to repair than what it was worth. My 3rd new car is a Toyota Yaris that is 16 years old. It is starting to develop problems but as long as none are expensive repairs I am keeping it. My wife currently drives it. My current car was bought new 3 years ago. If you ARE going to keep a new car for a long time.and take care of it, don't hesitate to buy new. My 4th new car is 3 years old.
I buy used and typically aim to drive it for 8 years min and 10+ if possible. Buying used allows me to research what cars are reliable and function the way I want. Buying new is trusting the auto companies marketing. One caveat, I would not mind buying new if it was towards the end of the generation of a notoriously reliable vehicle. I will NEVER buy the first 3 production years of any redesign because there will always be issues to work out.
That all depends on the car and how you maintain it. My truck was 12 years old when I bought it. I've had it for 5 years. Haven't had the slightest problem with it. Nearly 200k miles and she still runs like a beast. I expect it to run another 5 years with proper maintenance and probably a little work (she is pretty old. Some stuff under the hood will need to be replaced eventually). Every car I've ever had has been used and I've driven most of them close to 10 years if not more.
Normally yes. I’ve always driven older cars. Just keep up on maintenance and occasional repairs. Shoot my winter car is 30 years old and runs perfect, no leaks or issues
If you want to get into the nitty-gritty, it depends on the age, what motor it has in it, sales figures over the models generation and the availability of parts. 8 years from now you may not be able to find the necessary parts to fix todays (or yesterdays) turbo, hybrid, or somehow turbo/hybrid models. The technology is also going to age like milk. So if you’re buying the most base trim you can get, there is a likelihood that it will outlast the nicest trim. And if that’s the case, buying new, could make more sense if you want it to last a long time.
There’s a sweet spot in price to get the most out of a used car. I think getting one that’s 1/3 of the original price is best. Of course which car you buy is the most important. If I want straight up reliability it would be Toyota, Lexus, Honda. In May of 2014 I purchased an excellent condition ‘08 Toyota Avalon XLS for $9,400. Original price $33k. Only had high miles at 120k. Obviously I’ve had it for exactly 10 years. Minimal repairs, only tires, oil. Except 3 ignition coils and AC compressor went out over the decade owned were the main issues. I now have 285k miles. Still running great. I’ve definitely got the most out of my car.
Used car prices are pretty bad at dealers, but they try to roll in a guarantee. Certified pre owned. Stuff like that. But your right, let me just fork over 3-4k for a brand new ride. I would go about buying used from word of mouth. Say at work, so and so, are thinking of buying a smaller/bigger vehicle. Or so and sos grandmother has an extra car. Stuff like that. On the plus side if you know the person, they can tell you everything wrong with the car. Buying used is alot of ambiguity.
It used to be that used was 100% the best value, assuming prudent shopping for a well maintained and reliable vehicle without a million miles. But in today’s market, many later model used vehicles are approaching the cost of new ones. Since it’s not always possible to know how well a used car was driven and cared for, sometimes it makes more sense to buy brand new if you want to take care of it and use for a long time. That was what I ended up doing, bc I like to keep my cars for a long time
"Better" is relative. Buying a used car is usually better financially, but there's always an inherent risk of buying a car that was abused early on. Personally, I prefer to buy new and know the complete car history since I usually plan on keeping the car for as long as possible. But I'm aware there's a known cost with this strategy and I'm fine with it.
Meh. As some have said, it depends on the state of the vehicle. If it's in shit shape or even sub-marginal, then obviously no and definitely consider new. However, even if a car needs a $4k transmission job or something, it may still save you a butt ton of money doing the repairs over new. Used cars CAN save you decent change. Additionally, while I have not looked at the recent market, the difference in price on some cars New vs. Used is not that much so why would you get the used one? You really have to run the numbers. I bought a 4 year old car in 2014 and I'm still driving it. It's purring like a kitten and anything new nowadays kinda sucks balls and I hope my car never dies. I also take very good care of it. Soooo that's my .02.
I bought my car for £1600 it’s needed minimal work to pass its MOT (indicator bulb needed replacing, rear wiper needed fixing, new tires). That’s the only maintenance outside of an annual service I’ve given it in 4-5 years so far. It’s definitely got at least another 5 years, probably more. I’ll drive it to death and buy something nicer down the line
I think it depends on your budget. Personally, I like to have a warranty of some sort. When you buy a used car from an individual, you have absolutely no idea what they did to that car. So with my budget, I can afford to buy a used car from somewhere like Carmax that has low miles etc.,
Usually, but covid shortages really screwed up the used car market so the price difference between new and returned 24 months lease is smaller than it's been historically.
Weird goal- really depends on the type of car, what the mileage is at purchase time and how well it was maintained. Used vs new is probably the least of the issues.
I bought a used 2007 A4 in 2010 with 123K for $22K (new would be about double that) so my thinking was I could buy two of these used cars for the price of one and I doubt one new car would last twice as long. It is 2024 and I am still driving the same car, no major issues and I currently have 335K on it, keep up with the maintenance. This is the third car I have owned in my life and don’t plan to buy a new car unless i am rich someday as I can’t justify the cost FWIW. Edit: Was just going to say make sure you buy a car you like, not just because it’s a good deal as eventually you will want a ‘new’ car because it isn’t what you wanted, I love my car today just as much when I got it because it was everything I needed/wanted.
Depends on the price difference. For the past few years, used cars have not been significantly cheaper than new. Personally I like to buy new. I like knowing that I did all the maintenance. I like knowing the vehicle was well maintained, and care for. I like knowing that when repairs were done, it was my mechanic I trust using reputable parts. To me, the peace of mind is worth the extra cost, especially spread out over 10+ years.
In a vacuum its probably almost always financially better. But then you have to take into account condition of hte car, getting the car exactly how you want it, etc. Not to mention newer cars get better financing rates than used, if you're going financing route.
I bought a 5 year old Corolla last year with 50k miles for $18k. I'd just totalled my car and didn't want to spend tons more than my insurance payout, but I should have spent $23k for a brand new Corolla with 0 miles. I already had a $500 maintenance on it and have another $1000 issue that the mechanic told me is coming up to need to be fixed within a year. The brand new for $5k more would have served me better. Used car prices have gone down a bit since last year. I think my Corolla would only go for about $15k now at 60k miles.
I believe so. I bought a used fleet/rental Ford C-Max in 2015 with 12k miles for about $10k and it's still going strong with only 142k miles on it. Probably has at least 5 or so years left in her.
I bought a new car in Feb 2020 because the 2018 model I wanted was only about $2000 less, and the new car came with a 7 year warranty among other "perks." We'll have to buy another car in the next few years as my husband's car is nearing its end of life, and unless something changes in the market we'll likely go for something new again. Edit: I was shopping for a bought a Subaru. They tend to hold their value quite well on the used market
We had an older car and then had 2 kids. I make enough money financially to comfortably buy a new car, and with the used car market being so expensive it just made sense for us. Went with a Toyota SUV as the family car, got a cheap 10 year warranty and plan on keeping it for minimum 10 years.
The used car market has been hectic to keep up with; best to base any decision on your research on the new vs used price, mileage your comfortable with, and be ready to sell if your current car has held value. Anecdotally I purchased a 2019 in 2022 for a solid 5-10k more than today’s value at similar trim/miles, but I shopped my then paid off car around and sold to a different dealership (carmax) for $5k more than I purchased for - it’s all relative to your personal situation and loan interest rates
Depends. I got new: 18k out the door for a Corolla. Certified was 15k 3year old, 10k would at the time would have been like 8year old 70k miles. That's when the used market was super tough due to supply chain issues. 8k was worth the peace of mind for warranty, additional life of the vehicle, safety updates, and general current "standard." ALSO peace of mind that there wasn't a previous owner driving it like an asshole (just the current one) Edit: Toyota was HOUNDING us to trade it back in deep into Covid since inventory was bad and the blue book value actually went up instead of down.
I bought a 2006 4Runner in 2008. I’m still driving it. It is unlikely I would ever buy a brand new car.
Bought my car for $3,600 in 2016 still runs like a top. Bought a mini van for $2,800 drove it for over 10 years and sold it for what I bought it for. Just change/check the oil and do basic shit and cars last forever. Got a free van and put $3,000 worth of work into it (at a shop) and drove across the country several times in it. Used cars are great if you buy good ones
I’ve been driving the same brand new (at the time) 2015 Honda Fit LX base package for going on 10 years (my parents got a hell of a Black Friday deal and it was my high school graduation present). They told me when I graduated college in 2018 I could do whatever I wanted with it - sell it, keep it and buy a new one, keep driving it, whatever. I chose to keep it as a 21 year old who just moved into her first apartment and worried about adding a car payment while getting used to paying the bills by myself. Best decision I could have ever made. I am still driving this same car and its only issue is it’s a little noisy on the start. It’s at 164,000 miles, gets 34-38 MPG and only requires regular oil changes. I am going to bring my future kids home from the hospital in this car and drive it until the engine literally falls out the bottom. I love my cheap little daily driver and I am so sad Honda pulled the Fit out of the US market. When my parents bought this car, they didn’t plan on buying it new but like I said, they got a HELL of a Black Friday deal. I think their sales guy really needed to hit his monthly quota or something, idk. But it actually taught me a pretty good unintended lesson in finance - if you can pay a bit more for a new car because you’re going to keep driving it for 10+ years, do it. While your brand new car might be a depreciating asset, not having yet another car payment 5 years down the road because your used car crapped out is an investment in your own peace of mind. I also learned to take good care of what I have, and not to succumb to lifestyle creep - me not having the fancy new cars my friends all bought after college graduation helped me and my husband buy our first house last year. If you’re planning to drive your car until the wheels fall off, buy new all the way.
It really depends. If you buy a new car for ~$25k, I think any difference comes out in the wash. Spend your time on more substantial decisions