Is a new car preferable if they are offering 3k off this labour day weekend? (insurance, luxury)

[Londonteacher]

That is it really.
After much searching and great input from many of you knowledgeable people on here we came to the conclusion that rather than pay 8/9/10/11 grand for a used car on Craig;s List with an unknown history we might be better off just going new and breaking in our own car and not inheriting someone else's problems.

This is radical for me as i always assumed that new cars are just a waste as in you drive off the forecourt and they are worth %30 less straight away....but not in the US at this time in history it would seem- the used cars still cost plenty and you have plenty of miles already.

So with that we went to find a gas efficeint car for my husband to commute in-however our current jeep is not totally suitable for the family as it has a tiny trunk and bought used we had problem after problem until we changed the entire computer on it and since then.....no problems but we would never buy a jeep again after this experience.
Research suggested the chevrolet spark was the lowest cost to buy and one of the most gas efficent in that price range.
Big discounts this weekend mean they are offering 2500 off the spark meaning pre tax we can get one for 10500. But then we drove the sedan sonic- same engine as the spark and we think we may go for that instead= very smooth and lovely big trunk that will be better for family runs when we pack up the car.

Anyway that comes in at 12K pre tax, this weekend.

It just feels so strange to get a new car as i always though they were a rip off but we are finding the used cars seem more like a rip off.
Has something happened in the US that means new cars are not the rip off they used to be perhaps?
Is this just a great deal due to the holiday?

I know many will say get a honda or a toyota- yes they are great but they are all several thousand more and we really do not want to go into that territory as this biting into our savings that we will need towards a house in the new year.

Has anyone any input. I would have been happy with an old beater but my husband thinks we should prioritise reliability and safety plus it would not be great for him to drive to work in an old beater so i would end up driving that with the kids.
If we could find a good used car with 20-30 k on the clock that was significantly less but the more we search the more we are convinced that used cars are not the bargain they used to be.

Any thoughts??
Thanks folks.

[sunsprit]

Many used cars are at historic highs for retained value in the marketplace, especially the cars that deliver better fuel economy.

This means that the immediate depreciation on the purchase of a new car isn't as bad as it used to be if you are planning on keeping the new car for awhile.

Put this in the perspective that when you buy a used car, you're buying the remaining service life of the vehicle.

If a manufacturer's warranty and zero miles on a car are worth the price premium it takes to buy one over an unknown quantity used car, then a new car sold at a deep discount promotion may be your better buy if it's only a little bit more than the comparable used car.

[Hesster]

The reason used cars are so expensive at the moment has to do with the poor economy over the past few years. People generally sell their old cars when they buy a new one. Bad economy means people can't afford new cars so they are making do with their current car, which means there are fewer used cars on the market. Cars also last a lot longer than they used to, so fewer people feel the need to upgrade if their old car is still running fine. Simple supply and demand.

Don't sacrifice the money you could put toward a house for a car. Buy a cheap car. Once you have the house and are comfortable financially, revisit the car issue.

[Londonteacher]

Thanks guys- hesster...i know my position was your position too but i think the time is right for us as a family to have one reliable car that we can actually fit stuff in. We got screwed once with a 2 year old used car from a dealer and honestly after calling 30 odd used cars on c list and all the dealers and even a broker they are just not offering anything cheap enough to give us reason to buy used....and the real cheap stuff like 2-3 k has very high miles and is just maybe like chucking 3 k away if the car goes on to cost a lot in repairs a year down the line.
It will not prevent us getting a house - i saved the money from years of sacrifice of all that stuff that people normally do in their 20s with their money- I rode a bike through London for a decade then drove two super cheap cars so I have never spent much money on a car but i think the time is right and of course in the grand scheme 12k on a car is...well it is pretty much the cheapest new car you can get right.......we have now broken down on two big family holidays in the lemon jeep( now sorted out after new computer put in) and honestly the stress of driving a car where you are wondering what will go next- and we paid nearly 10K for that one 4 years ago......i do not trust these dealers- they must buy a lot at auction and who knows why an owner sells a jeep compass with only 40K on the clock but that car has brought us repair after repair and some hairy moments broke down in the fast lane of the LA freeways I have to drive.
We will play it safe this time and use a little of our savings to enjoy the luxury of a known quantity and a safe vehicle for our small kids with a trunk where the groceries do not all disperse because you have to cram them in.
I actually think we should have done it sooner the more i think about it. Signing off from 88 degree night in LA- the next thing we want is a house with central air!)

[ukrkoz]

OP, if you want to go intelligent in this post, as I am assuming, based on your name, HISTORICALLY speaking, time is never right to buy from a dealer.
You will inherit debt and instantly depreciated vehicle. You instantly are at LOSS.
But, you see, it also goes down to personal situation. PERSONALLY, I buy used and save, but I am content with this, as I know cars and work on them myself.
For one, who does NOT know cars and is NOT capable of working on them, mental peace of having warranty and believing that no hassle ownership is ahead is likely worth financial loss.
Hence, as any other decision made, it is very personal. You happy? Good for you and enjoy.
Just always keep in mind old British wisdom - we are not rich enough to buy cheap things.
Be well and enjoy your new vehicle.
At least, try killing your loan asap, no need to feed 1%-ers with your money too much. They have plenty.

[jtur88]

If there is actually a $3,000 reduction in what you would otherwise pay. But I bet all or most of that $3,000 somehow gets added back in to the final out-the-door price, by padding other routine costs or making the discount contingent on some other package, or that the discount is "up to" $3,000, or increase the original "asking price" by $3,000. They are not going to just make the same deal they would on any other day, and then just hand you $3,000 with a smile when you drive off the lot. The bastards are sneakier and slimier than that.

[GarageLogic]

First of all, the "$3,000 Off This Weekend Only!!!" gimmick is just that - a gimmick. It could be their way of trying to unload last year's cars - which is okay. But they're not just giving you the best deal possible, minus an additional $3,000.

The bottom line is this: You have to pencil it out and do the math. Be sure you include every expense, including higher sales tax, higher annual license fee, higher insurance premiums, etc., that come with buying a new car. Factor in how much more or less you'll be spending for fuel, with a new versus used car.

The fulcrum point new versus used is this: You will pay more per month for new, but the warranty period frees you from potentially expensive repair bills.

Personally, I will never - under any circumstances - buy a new vehicle. But that's largely because I'm cheap, and I do all my own mechanical work. For people who are not mechanically include, a new car might make more sense than late-model used.

If you are going to hold on to this car, and drive it for 5-10 years, you may be money ahead by buying a new car.

[theatergypsy]

I bought one new car in my life. All the others were handed down from my parents. My new car was a 1990 Toyota Corolla LX. It cost me just under $11,000.00 I loved it. It was a comfortable car to drive on trips and it didn't cost much in maintenance/repairs. It got me from "here" to "there" and back to "here". Many late-night trips home from a play/post-play party.

It gave up last week. Now, I'm looking for a used car, since I don't think I'll outlive the payments on a new one. Ideally, I'd like a Toyota or a Honda, but I'm not optimistic. Saw two Nissans - one with 38,000+ miles and one with 58,000+ miles. Both out of my price range but I have to wonder why Nissans are traded in with such low mileage. I thought they were supposed to be good cars.

Anyway, if I could afford it, I'd buy a new car again without a second thought. Do I think the "$3,000 off" deal is legit? Nah. They'll make it up somehow.

[kharing]

You should continue to look for a reliable used car. Chevy Spark, really?

[Londonteacher]

Thanks guys.....taking it all on.
Ok so we buy cash....no finance....so no debt but we use some savings up.
Kharing......you don,t like the spark...actually we are sold on the sonic now or even the cruze.....they are offering 4500 off on the cruze but thanks for drawing my attention to the good chance they will claw it back...will call the two dealers and check out be door price.
So the sonic which does better than our other option the honda fit on consumer reports for safety and for fuel economy........is 12 k plus tax.
Just for counter we paid 9500 for a two year old jeep compass four years ago...used but only44 k on clock. Nothing but problems with it every year a big repair ....even the entire computer had to be exchanged last year. We are so over lemons that dealers sell on...who knows if they knew what a problematic car that jeep would be for us....our heart used to drop every other month a light came up and we had to pay to diagnose and pay to fix it.
So in our view 2500 more for a cheap bottom of the range chevy with 3 year warranty and 100 000 power train guarantee is pretty good going. No stress, no lemon inheritance......we are not mechanical minded at all and have to pay others to do everything...I can change oil and spark plugs and that is about it but with two little kids at my feet, it is not happening.

I know if you are a petrol head as we call them in the uk you would not touch a humble little chevy sonic, but we are a boring family if four who take our holidays in the us, putting 2000 miles on every annual road trip we do. We want safe, economical to buy and run, a big trunk and a smooth enough ride. We care not for interiors or what the plastic knobs look like or whether the seats are leather. We would rather but that potential extra car money we could spend in our kids college fund or towards the stupidly expensive houses in LA.....I think the chevy ticks our boxes surely.