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Old 11-14-2014, 05:58 PM
 
Location: SC
8,387 posts, read 5,068,003 times
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Quote:
Originally Posted by Eastcoasting View Post
Just don't buy used baloney!

Trust me on this.
Thank you. LOL!
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Old 11-14-2014, 06:49 PM
 
Location: New Mexico U.S.A.
24,194 posts, read 39,065,053 times
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Quote:
Originally Posted by ippi76 View Post
Input welcome
After having grown up in a Chevy family, I left...

We bought a one year old Hyundai Sonata seven years ago for my wife to drive... She still loves it.

We have been buying one year old low mileage vehicles still under factory warranty for over 15 years with great success.

"one year old low mileage vehicles still under factory warranty" seem to be getting expensive...

Your experience may vary.
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Old 11-14-2014, 07:04 PM
 
48,519 posts, read 81,246,246 times
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It depends on person and their finances mostly.
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Old 11-14-2014, 07:32 PM
 
2,181 posts, read 2,044,433 times
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[quote=oceangaia;37277149]
Quote:
Originally Posted by tofur View Post
You still have to look at a car in economical terms, even if it's a depreciating asset. Buying a slightly used car thats a few years old is the obvious way to go, the first owner took the brunt of the depreciation for you. Minimizes the loss. Basic household finances, minimize expenses and maximize income.

The first owner also enjoyed the best years/miles of the car's life and probably spent little or nothing on repairs. The Focus in the first post, at 60,000 miles, is more than slightly used but even if it was lower ,iles the answer is not "obvious" if you factor in needed maintenance (new tires at $600 or so, timing belt at $800, etc.) and repairs out of warranty. And if you are unlucky and have a tranny or motor go bad, you just lost all the savings and then some.

Besides, there is more to the decision than pure economics. A car is something you will be spending a lot of time in over the years and the comfort and quality of the ride has to be considered as well as the reliability and peace of mind.
60k miles is a lot but it depends on the car. Performance cars, that mileage is the beginning of routine maintenance, pads, rotors, clutch, etc. Every car is unique in that sense though, each have their own wear patterns. You should get a significant discount over new for a 60k car, if the prices are anywhere close then its worth going new. 60k miles is 6 years of driving for most people, nothing to sneeze at and is totally worth a few grand extra.

An example of when used is a good idea: A e39 BMW m5 w/ 60k miles in great condition will cost you 20-22k. It was 90k in 2001, new m5's today are 100k+. Huge difference there. The trick is to catch one that's had its clutch, pads and rotors replaced, along with other routine maintenance like replaced hoses and seals and sensors n' such things. Basically one that's been enthusiast owned and cared for. Then you can drive it for years without any issue just like a new car, and it won't depreciate barely at all. If you buy one that hasn't had anything done to it then your going to be paying a lot in repairs until it's all replaced, then you'll be good to go for a long time.

It's all about the repair cycle. Modern cars will all go 300k+ miles no problem as long as you replace wear items and look after it. New cars are in the beginning of a cycle, cars at 60-80k miles that have had all the maintenance done on them are at the beginning of a cycle (not quite as pure as a new car though obviously).
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Old 11-14-2014, 07:46 PM
 
Location: Suburb of Minneapolis-St. Paul, MN
50 posts, read 47,538 times
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I always had that "never buy new" mentality, until it came time for me to buy my first car. Despite the fact that my mom actually buys new (one new Toyota when I was born, which she drove until it was near-kaput, and then another new Toyota, still going strong...), I had heard so much about how you lose a bunch of $$ when you drive the car off the lot, and it's always good to pay in cash, not take out a loan $$ for a car you can't afford etc etc.

However, I started a new career that required a dedicated car (I had been sharing a car), and suddenly had to find a car quickly and I was away from home training and ended up having very little time to do research. So I've heard you can get great used cars via the web, searching for that perfect car w/ the perfect owner and history... well I'm sure it's out there, but I looked at new car prices and used car prices (sub 20K mileage because this car is for driving around several states... est. 20-30k miles per year I will put on it), and the differences in price were not very dramatic. There is a peace of mind knowing your car is new, knowing no one else has had the chance to put the wrong oil in etc. I believe peace of mind is worth money... maybe not too much money, but it is definitely worth something to me.

So anyhow, due to my shortage of time to look at cars & contact private parties, and the ease of going to a dealership & having them provide financing and being flexible (they exist to make money off of you, vs. John Smith who just wants to sell his used car at some point and is busy and can only meet you on Saturdays after 3pm and can't give you a loan... (you get my point). Anyhow, I ended up buying a new car. Honda Fit. (Buerkle Honda, they awesome!!!) And I am very happy.

I would recommend getting that used Elantra if you can though... that sounds like a happy medium :-)

I wouldn't buy a used rental either, though I am sure there are many good ones out there... but I am timid about such things. Good luck!
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Old 11-14-2014, 08:59 PM
 
7,257 posts, read 3,755,206 times
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Quote:
Originally Posted by Wndy View Post
I had heard so much about how you lose a bunch of $$ when you drive the car off the lot
That's a myth. Show me a car listed for sale that was driven off the lot less than 30 days ago (much less a day) for a couple thousand less than you could bargain for the car brand new from a dealer. You can't. They don't exist in the marketplace. Nobody sells a car less than a month after they buy it unless it's to their insurance company because it was totaled.
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Old 11-14-2014, 10:40 PM
 
623 posts, read 412,338 times
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Quote:
Originally Posted by ippi76 View Post
Hi all,

I'll make this brief-

2013 Ford Focus or Chevy Cruze with 60,000 miles can be bought from Hertz rental for around $10,500 all cash.

2014 Hyundai Elantra brand new with all the loyalty bonus holiday cash extravaganza can be had for around $16,500 all cash, they won't let you have 0% finance at this price and also 2015 is not this price.

Assuming you can buy either one all cash and it's okay financially, which you would do? Conventional says "used is better, let some other sucker waste the depreciation yada yada". I also see new 2014 would depreciate really quick given its already 1 year old.

Insurance is about the same, however you'd be able to drop the comp/colli faster on the used, this is a long term purchase, my current car is 11 years old, so planning on keeping whatever I buy at least 6+ years.

Input welcome
I would buy the new car for those prices. The warranty is good on the brand new car. The mileage on the other cars is too high for those prices, forget it!
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Old 11-15-2014, 01:35 AM
 
Location: Poshawa, Ontario
2,986 posts, read 3,168,796 times
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Quote:
Originally Posted by tofur View Post
You still have to look at a car in economical terms, even if it's a depreciating asset. Buying a slightly used car thats a few years old is the obvious way to go, the first owner took the brunt of the depreciation for you. Minimizes the loss. Basic household finances, minimize expenses and maximize income.
The only time you see any depreciation is if and when you go to sell the car. If you are flipping cars every two years, you should be leasing them rather than purchasing. The only "investment" in a vehicle is its reliability. That's it. All the savings in the world won't mean squat when you are broke down on the side of the road. Owning a new car, driving it responsibly and being aware of its entire maintenance history is a giant step toward assuring such reliability. Purchasing a "cheap" used car from a rental agency that has had the crap beat out of it for the last two to five years is 100% counterproductive toward that end.

Quote:
I was under the impression that most used cars are bought with cash. Unless your buying it from a dealer, then I can see setting up a payment plan. Private sales want the money upfront.
That depends on whether you are buying a disposable car or not. For example, a $40,000 Jeep Wrangler Unlimited is not going to depreciate anywhere near as fast as say, a $20,000 Honda Civic. As such, many people may be able to purchase a two year old Civic with cash, but be unable to do the same for a two year old Jeep (or pickup truck, for that matter) without getting a loan from a bank first.

Quote:
Originally Posted by Merc63 View Post
Why? Most people switch out cars every three to five years, for something new, simply because they want something new, or the lease is up, or whatever.
I currently own and drive a 2003 Ford F150 I purchased new in 2002 and a 2014 Jeep Wrangler Unlimited I purchased new last December. I plan on keeping both until they literally fall apart. The truck currently has 175,000 kms on it and has required very little in the way of repairs outside of normal wear and tear. I haven't owned the Jeep long enough to give an accurate opinion of its inherent reliability (or lack thereof). However, I have (and plan on) treating it exactly how I treated my truck and am confident it will provide me many years of reliable service. I don't buy vehicles I plan on selling before I get my money's worth out of them. After all, the cheapest vehicle to operate is the one that is already paid for.
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Old 11-15-2014, 06:42 AM
 
Location: North Port, Florida
774 posts, read 1,832,987 times
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Quote:
The only time you see any depreciation is if and when you go to sell the car. If you are flipping cars every two years, you should be leasing them rather than purchasing. The only "investment" in a vehicle is its reliability. That's it. All the savings in the world won't mean squat when you are broke down on the side of the road. Owning a new car, driving it responsibly and being aware of its entire maintenance history is a giant step toward assuring such reliability. Purchasing a "cheap" used car from a rental agency that has had the crap beat out of it for the last two to five years is 100% counterproductive toward that end.
Amen...I don't buy into the whole "it holds it value" argument. Look at how cars like Mercedes and BMW drop like a stock market crash. It's unbelievable really.

Mileage and condition hold the key to resale.
I keep my cars a long time and they are in exceptional condition.

When I'm thinking of selling I've got people I know coming to me saying: "If you're going to sell that, let me know first".

Mikey
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Old 11-15-2014, 06:46 AM
 
Location: Miami, FL
8,088 posts, read 7,349,356 times
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I bought new the last two cars. It was end of year closeouts with mucho cash back and very low finance rate.(1.5%) I was lucky I got what I wanted in both cars. Held onto the first for twelve years and the second still own at the ten year mark.

I may have done as well if not a bit better in terms of overall amortization if I had purchased a slightly used car perhaps one-two-three years old and gambled the original owner conducted proper maintenance in that time period. But both were performance cars so the ragging done to the cars was by me and not another person.

It is win-win either way.

Last edited by Felix C; 11-15-2014 at 07:26 AM..
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