Isn't Buying Used Usually a Much Better Deal.... (vehicles, fuel, buy)
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Not really when you consider that you can get a brand new 2016 Accord EX-L for $25k after discounts.
The initial difference is also negligible when you factor in financing rates, resale value, warranty, etc.
Highly doubtful that you can discount a $29K Accord to $25K. Even if you can, I am sure you can discount the $19K used to $17K. Regardless, there is still a $6,000 to $10,000 discount.
Let's say you don't care about the new car smell, isn't buying used a much better deal?
For example, a 2016 Honda Accord EXL costs about $29K, but if you buy the 2013/2014 version with 20,000 miles on it, you can buy one for about $19K. That's a $10,000 saving.
My car is down $3,000 in a year from what I bought it at, $8,000 down from MSRP. That's over 25% off MSRP and 12% less than I paid before taxes.
But I've only done one oil change for 19.00 and zero other maintance.
$3,019 + $1,300 in gas + $600 in insurance = $4,919 to drive this car for 10,000 miles, that's just 49 cents a mile, still cheaper than running.
Do I hate my car and wish I bought it used? Yep. But I wanted safety and model year I got was the first year of a substantially safer car, so that wasn't an option. And, well I don't really care. Some one will get a steal on this carefully broken-in and well maintained car when I sell it just as the odometer rounds 100,000 miles, but I'll have got my use out of the car and that's what matters to me for my commuter cars (a big, safe box to help keep distracted drivers from killing me).
Let's say you don't care about the new car smell, isn't buying used a much better deal?
For example, a 2016 Honda Accord EXL costs about $29K, but if you buy the 2013/2014 version with 20,000 miles on it, you can buy one for about $19K. That's a $10,000 saving.
If you can get that deal you should take it.
On the other hand, in recent years I've looked at cars and sometimes you only save a couple of thousand (asking price for both new and used, because I didn't get that far into it) on a two-three year old car. I don't think that level of saving is worth it.
Both of my last trucks were bought new. One was 2 wheel drive and then I traded it in for a 4X4 in 07. Both times looked at used, 20/30,000 miles or so and 1 -3 years old - the time in which everybody claims a vehicle takes the biggest hit of depreciation. Prices were ridicules plus had higher used car interest rates. I was putting a descent bit down for a lower payment, keeping cash and planning to pay off early. New trucks had pretty good rebates and low interest rates so after putting to paper it was a "no-brainer". Buying a low mileage "newer" used truck was actually more expensive then getting a brand new one. Couldn't care less about a new car smell but it sure is nice not having someone elses 20 to 30,000 miles already on it. In my driving (having 2 vehicles) that is equivalent of 3 to 4 years. Why would I want to buy a vehicle that has it's life already cut short by a few years?
My car, not much different. Bought a new fiesta in 2012. Was looking at other assorted "roller skates" used and the prices were high. 8/9 grand for cars with 50/60,000 miles on them. The cheapest new auto I found was a fiesta for about 15 grand. Lower interest rate with a decent amount down and it was the better way to go.
Did I see depreciated costs in the price of used vehicles? Yes, I did, But when I added everything up with the rebates, interest rates and the method I was using, the newer ones were the better buy. All had about 5 miles on them. Much better, IMO then starting out with 20, 30, or even 50,000 miles!
I can see it not always being better to buy new but don't just assume it is more expensive either. Do the math. All of it and don't leave out anything. The newer one just may surprise you!
I have found that buying high end cars Certified Pre-Owned is a great deal. I saved $ 22,000 on a 2 year old car with 9,100 miles on it and I saved $ 35,000 on a 3 year old car with 19,000 miles. Both came with a 100,000 mile warrantee.
I have found that buying high end cars Certified Pre-Owned is a great deal. I saved $ 22,000 on a 2 year old car with 9,100 miles on it and I saved $ 35,000 on a 3 year old car with 19,000 miles. Both came with a 100,000 mile warrantee.
Not exactly "high end," but I used Accord EX-L instead of Accord LX.
Highly doubtful that you can discount a $29K Accord to $25K. Even if you can, I am sure you can discount the $19K used to $17K. Regardless, there is still a $6,000 to $10,000 discount.
Truecar has it for $25k.
2016 has also been refreshed with a better design inside & out, better gas mileage (thanks in part to all new aluminum hood) and now is compatible with Android Auto and Apple Carplay. Comes with 5yr/60k miles warranty and you don't have to wonder if it was broken in properly, maintained properly or been in an undisclosed accident. A 2013 was most likely sold in 2012 so its bumper to bumper warranty has already expired and powertrain will expire next year.
Plus when you sell it in 7 years it'll be worth a few thousand more so you will recoup some of that money. So to me a brand new car would be worth paying $3k extra for.
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