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Looking for my next car. I plan to keep the new vehicle for at least 10 years. Knowing that, would you buy new, used or certified pre-owned?
My budget is around $30k out the door... I know that I could probably get a luxury car if I go the pre-owned route. I'm looking for a Japanese sports sedan or a sporty compact SUV..open to suggestions.
My vote is used or pre-owned. Save a couple of bucks, and certified pre-owned vehicles usually come with better warranties than the car would come with brand new. Used is slightly more risky, but if you do your research and know what to look for when you go to check out the vehicle, it's no big deal.
Case in point, out latest purchase (2010 Ford Flex) stickered for $48,500. Bought it with under 30K miles on it back in May for $26,500 from a private party. For peace of mind, we bought a Ford Extended Service Plan that covers almost bumper-to-bumper for well past 100K miles. Aside from a couple VERY minor blemishes, the car is basically brand new. So, as far as I'm concerned, we came out WAY ahead.
if you're going to keep your car 10+ years, I'd go NEW just because if you don't garage your vehicle the clear coat can start to fail and peel around the 8 to 10 yr mark. Even if your car is mechanically fine after a decade, you might be inclined to get rid of it sooner if the paint is faded & looks shabby. Of course if you do have a garage at home & work you don't have to worry.
Used or pre-owned. As someone who keeps cars a long time as well, it doesn't make sense to take the depreciation hit of buying new. I tend to buy luxury sports cars and SUV's, some with stickers well over $100k new. But, buying them just a couple years after can be much cheaper, and as a bonus, most have low miles since higher end luxury cars are less often used daily.
the problem is that people are asking ridiculous amounts for used cars..i've seen 3 year old cars advertised for almost new prices. As a general rule what should be the depreciation percentage by age assuming 15000 miles/yr allowance and a car with good resale value (Japanese - Acura/Lexus/Infiniti)
1 yr - 20% (initial depreciation hit)
2 yr - 25%
3 yr - 30%
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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redrocket is right, used car prices have stayed high due to a shortage with people keeping cars an average of 11 years lately. With better loan interest rates and good competitive discounts on new I would not buy used.
I think the ideal scenario would have you looking at a 2013 closeout (new) or a 2014 model with a lightly used 2011-2013 car to compare to - preferably on the same lot. Negotiate the best price you can on each one and choose from there.
If opting for a used car, then yes, go the CPO route for the warranty. However, I would still have the car checked out by a 3rd party mechanic. The "certification" is only as good as the dealer integrity.
Given the higher prices of used cars, I don't think they are as good a deal as they used to be, but the other posters are right, there is still a depreciation hit in the new car.
Go with a new car if you plan on keeping it for 10 years or more.
On the contrary, I bought my 97 VW from the original owner with 127k on the clock....Ive had it for just over 7 years now. Doing all the maintenance myself. Has 194k on it now.
It depends on what make you plan on going with, some are very good purchases as a used car, some are bad. I would go with a Honda or Toyota, possibly Acura depending on what model...
But normally I would stay away from the "luxury" Japanese rubbish. Japan does not make luxury cars..Just "high end" disposables.
Let the first owner take the depreciation hit. A year old car, if cared for and inspected, can be almost like new. My Son bought an 08 Ram pickup in 09 and you literally could not tell it wasn't brand new. It still looks the same way and has been a great truck, and he saved thousands over new.
Be somewhat careful about extended warranties, some are great and some not so great. Do some research on them.
Don
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