General

[mrmag11]

So due to a new arrival in July, the wife and I need to upgrade my two door hatchback. We are not impulse buyers, so I am taking my time researching what to buy. My only dilemma is new vs used. My wife gets scared by cars with 60k+ miles on them, but that doesn't really bother me. She also got it stuck in her head by the dealer that a used car equals a higher interest rate when financing

So here's what I've come up with.

Used Pro's:

Lower cost/monthly payment

Used Con's:

Potential for higher interest rate
Potential for more repairs due to age/miles
Skimpy warranty
Less dealer incentives/offers/add ons

New Pro's:

First owner
Full warranty
Free service for X number of years
Potential for lower interest rate

New Con's:

Higher monthly payment

Am I missing something? I think we should go used especially since this car won't be driven that much, but she's thinking new. Thanks for everyone's wisdom in advance!

[Critical]

Used, especially if it's not going to be driven much. It also matters what kind of car you're looking at. A Honda with 80k+ miles? No problem. A Kia? Not so much. A strategy that I believe in firmly is to buy a used car that is fresh off lease. It won't be more than 3-4 years old, won't have more than 40-50k miles, and all the repair/maintenance records will be available since it most likely was serviced at a dealer.

[towerofcards.19]

If you happen to have a friend who is a mechanic, you can ask them to come with you to check out used cars.

I got my current car from Craigslist, of all places. It really is all about the previous owner, if he/she took good care of his/her car or not, maintained and serviced it regularly, etc. Sure finding a car like this is more time consuming, but you can end up with a great deal.

[singleshot]

The biggest problem with a new car is the instant drop in residual value. Let someone else take the hit.

The higher interest rates that you mentioned amounts to very little when compared to the higher cost of a new car & the loss of residual value.

Certified Pre-Owned (aka Used) Honda/Toyota for the win. They'll go 200k miles without breaking a sweat. We just sold a 2001 Acura TL with 225k miles for $4k (and bought a 2004 TL w/80k for $10k).

[brycelarson]

Find a mechanic you trust and have them look over anything you're going to buy. Then pick a reliable brand (toyota, honda, newer ford cars) and buy used.

[pillage]

If you are like me and drive 40k+ a year, buying a new car and driving it until it disintegrates negates the new car hit. If you change cars frequently or drive low miles annually, by used.

[Deuce]

Have you looked at some of the factory certified used offerings?

[mrmag11]

Originally Posted by Critical

Used, especially if it's not going to be driven much. It also matters what kind of car you're looking at. A Honda with 80k+ miles? No problem. A Kia? Not so much. A strategy that I believe in firmly is to buy a used car that is fresh off lease. It won't be more than 3-4 years old, won't have more than 40-50k miles, and all the repair/maintenance records will be available since it most likely was serviced at a dealer.

It's funny you mentioned that, one we are considering is an 08 Honda with 85k miles, but it's at Carmax so it's not "certified". The other we are considering is a 2012 jetta sportwagen TDI, mostly as a long term investment.

I'm new to the area so I haven't met any mechanics up here yet

[Kermit]

When you buy a new car, you are paying a LOT more and the vehicle depreciates significantly when you drive it off the lot.

Buying used, that sticker shock has been covered by someone else.

My parents were looking at a new minivan a few years back. The Caravan SXT they were looking at was about $27k I think, they found a used one on Craigslist for $12,000 with only two years old with 30k miles on it. Still looked, drove, and smelled new. Never had a problem with it other than a pump going out, which is expected for a 6 year old van.

Nothing wrong with going used

[alpha434]

Many of these modern cars are going 300+ thousand miles before giving up the ghost. Meanwhile, there's usually many factory recalls or problems in the first 100k...

Where's the sweet spot for you to own the vehicle?

The older the car, usually maintenance and mechanical work is more affordable.

The older the car, the cheaper parts are. To an extent.

But... The older the car, the less likely it is to have good interior/body, and more likely to have rust issues (in Virginia)

So again, where's the sweet spot? What should you consider in order to get the best value for your dollar?

It's not a new car. Any automotive professional or enthusiast will tell you that.


PS: As far as financing, it's worth it to get a personal loan instead of an auto loan, and then buy from a private seller rather than from a dealer. You can save hundreds to thousands of dollars instantly by avoiding the dealer. The best way to pay less interest is to borrow less money.