Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I consider myself very financially conservative but I like to buy new and keep my car for a VERY long time (10+ yrs, 150k miles at least). My current vehicle that I bought new in 2004 is almost 12 years old and I will change it when I hit 150k miles.
I think it's ok to buy new as long as you keep it for a decade at least. I like to buy new because I know how I have taken care of it from the beginning, and these days due to manufacturer rebates and aggressive pricing coupled with the fact that people are asking outrageous prices for used cars buying new is not that much more.
One other thing is the safety evolutions. The 2015 Sienna has frame upgrades that make it better in crashes then the 2014.
Dave pitches health, life and car insurance, but glosses over the fact that safer cars have better outcomes for the occupants. I mean if you're going to get those insurances "just in case" then your precieved risk would say hey get a safe car too so that when those things you are insuring against happen, your in the best bubble you can afford.
I consider myself very financially conservative but I like to buy new and keep my car for a VERY long time (10+ yrs, 150k miles at least). My current vehicle that I bought new in 2004 is almost 12 years old and I will change it when I hit 150k miles.
I think it's ok to buy new as long as you keep it for a decade at least. I like to buy new because I know how I have taken care of it from the beginning, and these days due to manufacturer rebates and aggressive pricing coupled with the fact that people are asking outrageous prices for used cars buying new is not that much more.
Ditto! Just want to add few more thing that we always try to buy the most reliable cars, find the best deal and pay cash.
People keep saying buy used...i'm willing to buy used ONLY if I get a HUGE discount over the new price. By huge I mean at least 25% off regardless of how "new" it is. Say it is a 2 year old car I am not paying 5% under the price of a new car, I am paying 25-30% off for a car in GREAT condition with ALL service records then it is a good deal to me otherwise why the heck would I take the risk of buying someone else's problem? Who knows how they treated their car?
But you're not going to get those deals.
People trade in cause it's easy and they can roll over their underwater debt into the next car. Getting a year or two old car private party doesn't happen often, and is super hard if you don't have cash (sellers don't like waiting the few days it takes to get a bank draft).
The used car lot is going to pad the price and doesn't care about the records.
I can trade my $26,000 ($30,000 msrp)car in for $23,000 right now (or a year from now, price doesn't change). The dealer is going to ask $26,000, that's what I paid new), and the new buyer won't get the special financing or the full use of the warranty as the car could have 1,000-12,000 miles on it.
And there's no incentive for me to sell private party. I get more in sales tax credits than what private parties want to pay for my car, plus the hassle of tire kickers isn't worth it.
Last edited by MDrenter223; 04-03-2015 at 11:05 AM..
I say, the guy is just trying to sell books, and tapes, and seminars and needs a radical hook to lure people in. Sometimes I buy new, mostly I buy used - but to rule one out completely is just silly.
Dave Ramsey targets people who are in debt up to their eyeballs, have no money, manage money poorly, or all 3. The chance of those people buying more new car then they can afford is pretty high, thus his advice. I also think he means buy a $7,000 several year old used car instead of a $25,000 new one, not a year-old low mileage used car that's $22,000 instead of $25,000.
How do you feel about Dave Ramsey's philosophy on saying no to new cars and always buying pre-owned? Do you feel it's a bit radical?
I always buy new. I also keep a vehicle until the wheels fall off. I am also a 100% believer in the age-old adage that purchasing a used car is purchasing someone else's problems.
Anyone who claims buying new is a "bad investment" is an idiot. Cars are not financial investments, as their resale value depreciates every year. Seriously... Would you "invest" in a stock that consistently lost money year after year? The only reasonable return one should expect from a vehicle is how reliable it will be when you need to get to work on time on a cold winter morning. As such, a brand new car with roadside assistance and a solid warranty will trump a 7 year old beater any day of the week. One needs only to review the past winter's threads about not needing to warm a car up in winter to know that buying a used vehicle from the average rube is a serious financial gamble. If you are too daft to understand why warming a car up in winter is necessary, you are likely too daft to understand why scheduled maintenance such as oil changes and tune ups are necessary as well.
Caveat emptor.
***Edit*** I just wikipedia'd Dave Ramsey and found out he's the Tom Vu of personal finance lol.
I say, the guy is just trying to sell books, and tapes, and seminars and needs a radical hook to lure people in. Sometimes I buy new, mostly I buy used - but to rule one out completely is just silly.
This. I think the key is understanding all options, and then make your decision taking into account both financial, safety, and personal factors.
I've never actually bought a used car. All of mine were new. Does this mean I've been foolish? Maybe, if you look at it from a purely financial perspective. But the piece of mind I had in buying exactly what I wanted (color, options, etc.) and knowing almost exactly how the car was taken care of was worth it IMO. That said, I also didn't go into debt in making said purchases. They were either cash purchases, or 0-1% promotion rates.
Depreciation is based on MSRP so it really depends on how much discount you got. I think the biggest mistake shoppers make is they look at the MSRP on new cars and automatically think they cant afford it. Then they walk across the street to the preowned lot and buy used for $3k off when even a slightest bit of research wouldve netted $5k discount on new.
I've had this happen numerous times where I would buy new cars at deep discounts then couple years later I would see used ones advertised at the same price I paid for new... 2 years earlier!!!!
Remember dealers make more profit on used than new because they buy low and sell extremely high. Compare real selling price of new (MSRP - discounts) with used car proces and the difference is much smaller than everyone thinks. Most would probably buy new.
I've seen enough people with money who are fickle with their car ownership that I'm comfortable with purchasing a newer used car. I've heard stories of people who go into the dealership with a tire inflation indicator and come home with a brand new car. Don't forget the employee cars and fleet cars. Well maintained cars that are updated by their companies.
buying an older car with high miles might get you into trouble with poor maintenance or inherent trouble. I looked at the carfax this morning of a 2013 Ford Fusion and it was getting tires replaced every 10k miles. probably some kind of weird problem with that car.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
