New car

[nick__45]

Anyone here believe in buying new cars? When was the last time you bought a car new and is your next purchase new or used?

[Frügal]

Anyone here believe in buying new cars? When was the last time you bought a car new and is your next purchase new or used?

30% of me says yes.
70% of me says ABSOLUTELY NOT!

Pros of Buying New
- Full warrantee
- Untainted vehicle

Cons of Buying New
- Instant depreciation of around 15% (depending of vehicles dep value)
- Huge debt, usually of the negative equity type... YIKES!

When it is okay to buy new
- When you have 20% down-payment to negate the instant depreciation (or 0% financing)
- Even better, when you can purchase outright - If you can do this, then by all means, buy new!

When it is not okay to buy new
- When you cannot meet the above terms
- I don't have time to list all the reasons that could go here...

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You're asking a very broad question. It really depends on your financial position. Personally, I will only EVER purchase a brand new car if it means the following terms:
- It is a hybrid/electric w/ new tech that has not been seen in previous models (Prius C, anyone?)
- It is a Mini Cooper S (my dream car)

And, of course, if I have 20% down, can buy outright, or can get 0% financing.

I have yet to purchase a new vehicle, and have had a total of eight (I am 24 years old). It has to be a real gem in order for me to even consider it, and I have to meet my own specific financial terms. Otherwise, no dice.

There are great deals to be had out there. Cars with low mileage. Cars below book value. Almost always, there is no reason to buy new.

[LivingAlmostLarge]

We've only bought new cars. I am looking to buy used and not sure where to start. 1999 Toyota Corolla, 2000 Ford Focus, and 2010 Subaru Outback.

Next car? Used. Plan on keeping 2 years then buying probably another new car.

[kork13]

Anyone here believe in buying new cars? When was the last time you bought a car new and is your next purchase new or used?

Absolutely. I prefer it, in fact.

I've only owned 3 cars... 2 used (including current), 1 new. The new car was an '07 Civic Si (bought June '07), which I mournfully had to sell in '10 when I moved overseas. I bought it with every intention of keeping it for as long as it lasted me... at least 7-10+ years. I sold it to a friend, and he mentioned to me in November that it was still doing great, running perfectly, with zero problems since I sold it to him. I really wish I could have kept it...

My problem with used cars is that in most cases, I can never trust the previous owner to have cared for it properly. When you pick up a used car, you also pick up the previous owner's problems and accept potentially spotty car care that can be extremely hard to detect, like abusing the engine, transmission, or brakes. Even mechanics can't always see over-worn parts without opening up the engine or tranny entirely. Plus, as mentioned, you get a good warranty on a new car. I hugely prefer to buy new, break it in myself, keep it well maintained, and enjoy a quality car that I make last.

My next car will also be new. I'm expecting to move back to the states this summer, and I'm going to be buying a 2012 VW GTI. Yes, I'm going to be paying alot for it ($30k), but I've saved up the cash for it since July '11, and by Aug '12 I'll have the full $30k to buy it outright. It's a slight stretch and admittedly a part-luxury purchase on my part, but I'm also going to enjoy it tremendously and keep it for years on end (next time, if I have to move overseas again, I'm getting the car into storage).

Am I willing to buy used? Sure. But I will always prefer new.

[disneysteve]

Anyone here believe in buying new cars? When was the last time you bought a car new and is your next purchase new or used?

I think the guidelines for car purchasing apply to new or used: Pay cash if you can. If you must finance, do so for no more than 3 years with a montly payment of no more than 10% of your monthly income. If you can meet those guidelines and get a new vehicle, go right ahead if that's what you really want.

What have we done? Our current vehicles, a 1998 Camry and a 2000 Sienna, were both purchased used. The vehicles before that, a 1991 Camry and a different 2000 Sienna, were both bought new, though my parents bought the Camry for me.

Next time around, I'll almost certainly buy used. I just don't see the point in spending more than you have to to get a car. I have read, though, that the price curve has been kind of weird and sometimes the used cars aren't that much cheaper than the similar new models.In that case, the new car could actually be the better deal, so it will really depend on market conditions when it is time to buy and on the specific model I'm looking at.

I'm not opposed to buying new. I just understand that typically, it isn't a good deal financially. It can cost you thousands of dollars more than buying used and that just seems to be a tremendous waste of money to me.

[kork13]

Personally, I will only EVER purchase a brand new car if it means the following terms:
- It is a hybrid/electric w/ new tech that has not been seen in previous models (Prius C, anyone?)

Interesting point here... Normally, I've always heard the opposite, that you never want to buy the first model of a car using parts, systems, or technology that's new and untested (by the harshest critic -- American roads). In fact, I believe the Prius itself is a case in point... Didn't the initial model year or two have longevity issues with the batteries? I dunno, I think I'd prefer a car model that's had at least 2-3 years and iterations of improvements behind it before buying... Basically, the thought of "let 'em work the kinks out." Or perhaps that's just me?


p.s. Totally agree on the Cooper-S... I've heard it's a blast to drive, and I've definitely considered one as well... My only contention with it is that the option packages are so vast, somewhat mutually exclusive, and so expensive! Getting a Cooper-S with all the goodies jacks the price up beyond the cost of similar, if not better, competing cars. May as well spring the last bit and get a JCW! (just my opinion though)

[disneysteve]

Personally, I will only EVER purchase a brand new car if it means the following terms:
- It is a hybrid/electric w/ new tech that has not been seen in previous models

I've always heard the opposite, that you never want to buy the first model of a car using parts, systems, or technology that's new and untested

I'm totally with kork on this one. NEVER buy the first year of a new model or a substantial redesign. They need time to work out the bugs. We made this mistake once back in 1996. That car was recalled 5 times in the 4 years we owned it before it was destroyed by a fire caused by a manufacturing defect, and it was later recalled for that but ours was scrap by then.

Actually, you can often get a great deal on the last model year of a vehicle that has been redesigned for the new year. The dealers want to clear them out to make room for the new ones.

[MonkeyMama]

I'm not opposed to buying new. I just understand that typically, it isn't a good deal financially. It can cost you thousands of dollars more than buying used and that just seems to be a tremendous waste of money to me.

So true. The primary reason we have never bought new is just financial. BUT, after decades of buying used cars, it's also kind of hard to see the point of buying new. We might be at the point where we can plop down cash for a new car, next time we buy, but so many better things we can do with that money. We could also just pay half as much for a car just as reliable that will last just as long. *shrugs*

For reference, both our current cars were bought "barely used" (low miles, 1-year-old) and we saved a fortune doing it that way. It's been hit and miss. My husband's vehicle is the best car we have ever owned (comparing to older cars I had bought that had very few miles). BUT, my car is the worst we have ever owned, and the most expensive we have ever bought. It leads me to want to buy more used the next round. Sure, the more used you go the more problems you may end up with. But the truth is we have never had any problems with our cars, except when going so new we just went on make/model reputation - we ended up with a year that had a lot of problems. If we bought a year or two older, we'd be aware of those potential problems and could have made a better decision. My car was also hit (parked, hit and run) the day after I got it. I'd be upset either way, but it was extra upsetting with a newer car. I am just not a "new car" person, I guess. Probably never will be.

I know a few people who had tons of issues with new cars. So that kind of seals the deal for me. I might know more people who had more issues with used cars, but they also didn't do any due diligence. As I Said, we have never had any problems buying used. A little diligence goes a long way. (& we've saved a fortune over the years - so one lemon would be kind of a *shrug* Financially I don't think I'd even care if we got a bum deal on a used car- we might have saved $40,000+ over the years already. One bum car and we'd still be miles ahead).

[Frügal]

The Prius C is on the Yaris platform, with a normal Prius engine. It is only different in that it is smaller and more efficient. As for first gen tech, I'm with you guys! Horrible battery issues with first gen Prius. Issues with the new Chevy Volt. However, if it is a first gen to the States, but is already a hit in Japan, UK, EU (what-have-you), then it's a go!

As for the Cooper S... Yes. They are super fun to drive. I had a 2003 S when I was 19, and ended up giving it up for a truck that I got rid of half a year later. What an idiot I was!

[disneysteve]

So true. The primary reason we have never bought new is just financial. BUT, after decades of buying used cars, it's also kind of hard to see the point of buying new.

One argument people sometimes make for buying new is that they plan to run the car into the ground. Well I bought my 1998 Camry one year old with 11,000 miles on it. It is now 15 years old so I've certainly gotten my money's worth. Buying it one year earlier wouldn't have changed much except it would have cost me an extra $4,000 or so. My wife's van was 3 years old with 34,000 miles. It is now 12 years old so again, we saved thousands and still got plenty of life out of it.

[GREENBACK]

[QUOTE=disneysteve;317710] Well I bought my 1998 Camry one year old with 11,000 miles on it. It is now 15 years old so I've certainly gotten my money's worth. QUOTE]

This is how I buy vehicles. If it's a year or two old and has low mileage I don't worry too much that it won't last. I always have them inspected and I do my own inspection. This hasn't failed me for 8 vehicle purchases over 30 years. I never have bought new but am not against it. I think you get a better deal with slightly used.

[LivingAlmostLarge]

Looking at used cars i've noticed it takes like 3 years for depreciation to really finish hitting, although it depends on the model of cars and where you live as well. The car we bought? I see the same one for sale for $20K and we paid $24k and it's 2 years old. To save $2k per year of depreciation? Not a big savings.

But then other cars I've seen take a huge hit for 3 years then at 3 years it seems to depreciate very little the next few years.

I think that if you are going to buy a car that depreciates a lot it works well.

[LuckyRobin]

I think it depends on the car. And what you are using it for. And how long you are going to keep it. And whether or not the things you really, really want in it are available used or only as new. We've bought both ways. I have had 3 used cars in my life and two new. Only one of the used cars did not work out well. The first new one we got was great, we just out grew it. DH has owned several before meeting me, but the ones he got never lasted long. Right now I own a car that is twenty years old that I've had for 15 of those years and a minivan we bought new last year (no problems so far), but we intend to keep it until it won't go anymore. We practically live in our main vehicle at certain times of the year and we do driving vacations in the summer and it has made a huge difference in our comfort level and my physical disabilities in getting in and out of it. We were willing to pay a little extra to get the comfort and the bells and whistles of buying it new. Our car on the other hand has been a good workhorse for years and our daughter will be driving it later this year when she gets her license. She does not need a new car, nor would we consider buying one for her.

[Frügal]

I see the same one for sale for $20K and we paid $24k and it's 2 years old. To save $2k?

I think you need to bone up on your math skills. Kinda need that for a place like this.

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Good luck with your vehicle search. I think I provided some good info, as have others. Remember, do your research.

[nick__45]

OP here. I personally don't like buying or owning new cars because they usually come with stresses of possibly getting them scratched or dinged up. That being said, my last first and last 2 vehicles left a lot to be desired. The first used vehicle was a panic buy when gas hit 3 dollars and I was commuting 150 miles a day. So I bought a tiny car with 33-35 mpg fuel mileage. While it has proven to be somewhat reliable and relatively low maintenance to keep running, it needed a lot of part replacement as it was toward the end of a major mileage cycle. Things like brakes pads, rotors, and even caliper had to be replaced. Somewhat major items were axles as the CV boots split and I got tire of repacking the grease and the rebuilt kits didn't fit very well. It still needs shocks and struts as well as timing belt and water pump within the next year or so. While those are considered wear and tear items, it still are items needing replacement. If I could do it over again, I would have gone with a newer used vehicle. This vehicle is 1992 and I bought it in 2006. I give myself a C+ for buying this vehicle.

My second used vehicle is a complete disaster. It was pure incompetent on my part. I bought a vehicle that didn't pass inspection and would require a lot of work. Of course, I was naive and figure I would do the work myself and didn't know that state inspection is an catch-all scam by repair shops. It was suppose to be my 4x4 off-road vehicle. I used it rarely for less than a year and it is now sitting in my garage with a broken door. The engine and transmission are good but the body is is very rough. It is truely a big waste of money. I am going to use it as a vehicle to learn how to work on. I probably will figure out how to haul it to trails to use do light off-road duty until the body completely wear out and will put the transmission and engine into an rebuilt vehicle. Either that or learning how to fix things myself. I give myself an F for this purchase.

My first vehicle in my driving career is a brand new vehicle with every option possible. It did cost me pretty pennies but I still have it. It is more than 10 years old and the engine, transmission, drive-train, and many mechanical parts are as good as new. I give myself an A for this purchase as it falls into a "cry once" category. I am thinking of making another such purchase and just buy new to avoid any possible problem. The idea of owning a Honda or Toyota sounds very good to me as they are what I view as quality product. For these brands, buying new actually makes more sense as their used vehicles are pretty high. Financially, I can purchase vehicles up to $30k outright; therefore, I am only thinking about making the right purchase decision by knowing what vehicle that would fit all the things I want. For that, I haven't come up with the answer as I want and need a vehicle that can function as a SUV/truck and equipped with 4x4. The only vehicle coming up on the list is the Tundra but I can't find the bare-bone version with Crew Max cab. It can haul 6 people comfortably, has a large enough bed for a ATV or 2 dirt bikes, can be used to haul old furniture and lumbers which I will be doing to save money (I refuse to buy new furniture.)

For me, buying new makes a little more sense as I get good price via USAA buying new versus a slightly used vehicle. However, the idea of owning a new vehicle stress me out and my state loves to tax the heck out of vehicle yearly with personal property tax. Insurance will be high too. For me, the best option is actually a used truck that has been fully restored. However, I don't have the skill to pick one.