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Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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A new car depreciates by about 9% the minute you drive it off the lot, then another 10% after the first year. Save that money if you buy a one-year old car that, if the mileage is low, still has much of the factory warrant. I have a 2007 that still has 5 months/10k miles on the power train warranty.
Source: Edmunds.com
Also, many of the dealers offer a warranty on their "certified used" cars that is better than the original factory warranty. Make sure it's a true factory-certified.
A new car depreciates by about 9% the minute you drive it off the lot, then another 10% after the first year. Save that money if you buy a one-year old car that, if the mileage is low, still has much of the factory warrant. I have a 2007 that still has 5 months/10k miles on the power train warranty.
Source: Edmunds.com
Also, many of the dealers offer a warranty on their "certified used" cars that is better than the original factory warranty. Make sure it's a true factory-certified.
Ok, so where do you find a "gently used" car? I know, used car lots, Carigs List, etc, I'm not that lost,!
but, how do you find a really good used car/ whos' going to sell a good used car/ In know the bit about depreciation, etc, but since we tend to keep our vehicles for about 10 years, that early depreciation doesn't bother us.
I just had a terrible experience with a used car, one problem after another, since then I always buy new, not someone else's headache. but, the prices of new vehicles are sky-high! Perhaps get someone going into bankruptcy, selling their vehicle?
If you want to save a bit, look to a Certified Pre-Owned car as opposed to a used car. Manufacturers have varying levels of coverage with the extended warranties and such with respect to a CPO, that are added to an existing factory warranty in many cases. Lexus has a very good CPO program, for example, where many of the vehicles may be lease returns. That's the type of vehicle that I would want to consider if I were looking to a used vehicle, because there are stringent requirements for a lease, and the car has to be maintained; however, it helps if you are looking at a make/model that has a degree of reliability when considering a CPO. You will pay slightly more for a CPO vehicle, and depending upon the manufacturer and the details of their individual program, it could well be worth the added expense when compared to a private party used car sale.
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~William Shakespeare (As You Like It Act II, Scene VII)
Certified pre owned would be a good route to follow. Brand new, you take such a hit the first couple years of owning it you would have to run it out 3 to 5 years absorb the hit in value.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Depends on your make / model and budget.
I buy used ($35 bid at abandoned vehicle auction). I have never been towed home or towed to a dealer and have about 3 million fleet miles on my fleet (28, hey they're cheap!) of 50 mpg 1976-1997 cars.
I have a friend who buys NEW every two yrs. I can't count the number of times he's been towed or left w/o a car while under warranty repair.
I bought ONE new truck in 1973, what a mistake... I'll stick with used. YMMV, , ,
What I suggest is a certified used car from Toyota or Honda. You can typically find a 2 yr old lease return for several thousand less than new.
A friend of mine just bought a 2009 Camry with 18K for $21,000. Car has the V6, sport package, leather, moon roof and every other option you can think of. Original sticker was almost 33K. That's 15K off the original sticker for 2 yrs of service.
The best place to shop is an actual franchised dealer (meaning, Ford, Chevy, Toyota, Honda, Volvo, etc., not "Bob's Cars"). There you will have a selection of new, certified used and used cars to pick from.
The sweet spot financially is to buy the newest lowest mileage certified car you can find. It has already taken the depreciation hit and you still get the full benefit of any remaining factory warranty, plus the extended warranty the manufacturer gives you for buying certified. It is actually possible to buy a certified car that has BETTER warranty coverage than a comparable new car. This is also not a "funny" warranty as it is through the actual manufacturer and is equal to the new car warranty as far as claims go, just take it to any dealer for that brand.
Buying new is generally a case where you are trading some money for the "feeling" of buying a new car. However, there are times it can make sense to buy new versus certified. If there are strong cash back and financing offers available on the new car it can actually make buying new versus preowned a wash. In that case, I would buy the new car. However, that is an extremely rare occurrence.
Interesting thread. I will be in the market for a minivan in the near future. I had been leaning towards used and this thread has helped me lean even more towards that. I was planning on either Toyota or Honda. Obviously very reliable cars. So I was thinking why not go with a low mileage used (certified) when at the end of the day I will almost certainly get rid of it before it actually runs its total life.
So if I can find something with say 20K miles on it and get a decent discount, why not do it when over the life of the car the 20K miles will probably be completely meaningless to me.
Interesting thread. I will be in the market for a minivan in the near future. I had been leaning towards used and this thread has helped me lean even more towards that. I was planning on either Toyota or Honda. Obviously very reliable cars. So I was thinking why not go with a low mileage used (certified) when at the end of the day I will almost certainly get rid of it before it actually runs its total life.
So if I can find something with say 20K miles on it and get a decent discount, why not do it when over the life of the car the 20K miles will probably be completely meaningless to me.
That's the right way to think of it. The only thing you need to do is be patient and be willing to actually shop for the one you are looking for with the features you want. New car prices are pretty consistent among most dealers and you can always get exactly the one you want. Shopping used requires a little more effort to find the one you want and a little more negotiation to get a good price as well as some flexibility to give up on a feature or take your second color choice if it means snagging the best deal.
The last used vehicle I bought literally encompassed a 2 month search at mutliple dealers until I found exactly what I wanted at a good price.
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