used versus new cars

[Goldy1]

I am 38 and my husband just turned 43 last month. I feel so old typing that. time flies!! He just bought a brand new black charger. It is a 2014. He didn't buy a base model. He avoided the more expensive engine due to it not being needed and higher gas costs. He did get the upgraded hib caps and spoiler

It costs about 24 or 27K. I forget exactly. I think it was 27 K.
we paid for it in cash.

We didn't buy anything we'll be in debt for. However, it just seems so pricey.
We took 17K out of savings to buy it.
My parents gifted him 5K to put toward it.

He got about 3 grand for his rather beat up 2003 model car he had been driving since buying it new in 2003.

My point is I just felt like I always read buy used. let someone else take the initial hit in depreciation.
That hasn't worked for us.
It seems wrong though.
If he bought a slightly used car(say 2 years) it ended up being almost as much money as a new(there are no rebates on used)
If he had bought say a car 5 years old, we figured we'd have to start repairing it possibly often in a few years. We didn't want to pay 17 grand and end up fixing it all the time in 5 years!
So we bought him a new car. He got something cool too. The plan is to keep it as long as we can.
The 2003 model was needing repairs often. WE had to spend $400 to fix it in the shop and then drive it straight to dealer to trade it in.

[Goldy1]

I'm just confused bc all the finance books I read when younger preached old cars!! buy those!!!!!
I know he got a cool car, but we didn't want to spend like 22 grand on a base model that was like ehh boring. lol

[disneysteve]

What's your question?

[JoeP]

Sounds like your husband (and you) are willing to pay money to avoid owning a driving a "boring" car. Not for nothing, but if you consider that money well spent, then go for it! It is absolutely your money.

Maybe I'm showing my age or values here, but we're ok with "boring" cars because they are generally: less expensive, cheaper to own, more reliable, easier to repair, less costly to insure, easier to find for sale used, and do not hold any sentimental value.

[disneysteve]

My point is I just felt like I always read buy used. let someone else take the initial hit in depreciation.
That hasn't worked for us.
It seems wrong though.
If he bought a slightly used car(say 2 years) it ended up being almost as much money as a new(there are no rebates on used)

There is some truth to this, especially in recent years. After cash for clunkers and because of the recession and people holding on to their cars longer, the prices for used cars climbed and manufacturers were having trouble selling new cars so they kept price increases modest and offered great incentives. That did sometimes create a situation where a new car was almost the same price as a used model of the same car. That is an aberration though. That isn't the usual situation.

Certainly, your husband didn't "need" a 27K car. We've purchased 2 cars within the past 2 years and didn't spend that much on either - not even close. And yes, both were bought used. A 27K car is a WANT plain and simple. And that's okay if you can afford it.

[MonkeyMama]

It depends on the car.

Both our current cars were bought at 1-year-old for 60% of the cost of new. No brainer. Both cars will easily last 20 years. They probably cost less because they are boring, as Joe mentioned.

Our prior cars were more of the "old clunker, teenage and college student purchases". I drove my first car for 7 years. It cost about 5% of the cost of new. I share because the next thing people tend to say is that "used cars don't last as long". I don't know if the average person keeps a new car for even 7 years. Certainly not where I live (which makes used cars abundant and cheap, where I live).

[Goldy1]

I guess my question is has the conventional wisdom I read about of buying used no longer as true? We got a few thousand in rebates and chysler discount.

[disneysteve]

the next thing people tend to say is that "used cars don't last as long".

I bought a used 1998 Camry and kept it for 14 years.
My wife bought a used 2000 Sienna and kept it for 11 years.

[disneysteve]

We got a few thousand in rebates and chysler discount.

It is possible that in this instance with the rebate and discount, the new car wasn't much more than a comparable used model.

But as a general rule, the "conventional wisdom" is still the way to go.

[Goldy1]

Chargers and equinox (what I drive bought new last year) certainly were not 60% cheaper than new. Maybe a few grand. After incentives, it was coming up like 2 grand cheaper or so.

It seems like a waste of money, but we didn't want frequent repairs.

He was considering a challenger, but we have a four year old and the back seats are too tiny even tho he will be in it rarely.
Challenger and car seat= lol not to much.

[bjl584]

Nothing wrong with a new car if you can afford it.

[disneysteve]

It seems like a waste of money, but we didn't want frequent repairs.

I don't know why people insist on equating used car with frequent repairs.

My current car is a 2006 Toyota Camry. I bought it in July 2012. So far, I have had nothing but routine service performed on it. I'll probably keep it for 10 years. It was far cheaper than buying a brand new Camry.

[MonkeyMama]

Chargers and equinox (what I drive bought new last year) certainly were not 60% cheaper than new. Maybe a few grand. After incentives, it was coming up like 2 grand cheaper or so.

That is why I said it depends on the car. You are just talking about one experience and two models of cars. Certainly there are *many* used cars out there that are a better value than brand new.

Though I think the used car market got compacted in the recession, it seems like new car sales are fairly hot and heavy again. Which drives down the cost of used cars, when less people are shopping the used market. OF course, last I car shopped, it was not my experience that most 1-year-old cars were so inexpensive. We bought those cars because they were the best value.

[JoeP]

I share because the next thing people tend to say is that "used cars don't last as long".

A car has a finite lifespan.

If a car will last 20 years before being salvaged, then buying it new you'll get 20 years out of it. If you sell that car after owning it for 12 years, then the next owner will get 8 years out of it.

So of course used cars have a shorter life span!

What's probably more important is the overall cost to the owner over the years of ownership.

[MonkeyMama]

@Joe - my point is that a lot of people presume that any "used car" is only going to last 2-3 years. I have had this conversation with many many people over the decades. Since we are willing to keep a car for 20 years, we will get a better value out of a used car then someone who is not willing to keep a car beyond its 5th or 7th year. As such, they don't understand what is so great about a used car. The conversation is always like comparing apples to oranges.

I know I didn't clarify that - but that is what I meant. I don't know if many people believe that you can buy a used car (any used car) and drive it for 10 years. This forum is the exception to the rule. (& even then I often feel that I come off a little crazy, here. But we live in a region that is very gentle on cars. & even so, most locals don't take advantage of that - they want to trade up every 5 years. I am happy to keep my cars for 20 years - is a nice trade-off for the high cost of living).