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It depends, just like leasing vs. buying. It depends on you, how much you drive, what you use the vehicle for, the vehicle you are shopping for, and everything else. The big luxo-barge flagships all depreciate faster than other lower models in the same line. The Lexus LS460 is the best used buy in the whole Lexus lineup.
Personally, I prefer to buy lightly used flagships and roll up the most miles on them. I also keep them longer. I buy new SUVs and sports cars because they get driven less and my return is better (I usually beat lease payments by a lot by purchasing them). My last new car was traded at less than 2 years old, at a dealer, with 11k miles, and I ended up beating the best lease payment for that vehicle by $100/month given what I spent on it during the time I had it. I got a newer updated model and I plan to do the same thing with that at less than 2 years old. And, even though I paid invoice for the new car, and traded the old one for only 5k less than I originally paid ($1000 under invoice), the dealership sold my car 2 days later. So obviously someone thought it was a good value to buy it used.
I presume the same thing goes for all used cars that are sold. They represent a better value for someone, because everyone's wants and needs are different.
Also buying at dealer makes less sense in used car world. First three prices of used cars
Wholesale
Private party
Dealer Price
Dealer is the highest plus in a Private Party transaction you often pay zero sales tax which is a big deal.
I try to buy used private party with a clean car fax and still under warranty. Hard to find but worth the look.
For instance I bought a 24 month Jeep Wrangler with 4k miles once used off daughter of owner as owner died of a heart attack. Estate sales are usually good cars. Also old folks, current car is a Caddie I bought used with 5k odometer from an 86 year old guy.
Also rich folk are good to buy off. I bought a 5 series used off a guy in a Mansion in Greenwich CT. Was his weekend car and always garaged. Super mint looked like new when it was four years old.
I wouldn't buy a used Volvo. They are not very reliable and the parts are very expensive.
But a used 3 year old Camry or Accord makes sense. At that age and mileage ~40K they still have a lot of life and can be bought for a reasonable discount to a new car. But I also pay cash. No reason to pay 11% interest.
Volvo, not reliable? Are you kidding me? They are great cars and very simple to work on if you ever need to, but I doubt you will need to much. Here is a Volvo with over 3 million miles.
Volvo, not reliable? Are you kidding me? They are great cars and very simple to work on if you ever need to, but I doubt you will need to much. Here is a Volvo with over 3 million miles.
Conventional wisdom says that buying new cars is a bad idea, and I think conventional wisdom is dumb (and so am I)
LOL at that. I love it when people can admit they made stupid decisions. We all screw up sometimes, OP. I'm not sure you made an unwise decision, however. It's all about cost/benefit ratio. Buying cars is a risk any way you slice it. One can spend a lot of time making mathematical calculations and make your brain explode in that endeavor when the question you're trying to answer is a very simple one:
Is it worth it to me to spend more money on a car up front in order to avoid paying money on repairs in the near future?
There are numerous factors which can affect whether you are making a prudent financial decision by buying new. A major one is, are you going (not just planning) to keep the car at least 10 years? Car loans are so lengthy now that most people don't pay them off for at least 6 years, so you won't even even finish paying off the thing for a very long time. Heck, car loans last longer than a lot of marriages! And the warranty typically lasts only 3, after which, you're on your own in repairs unless you buy an extended warranty. So you're still paying for a "new" car 3 years after it becomes a tired piece of road ass.
Now, I have heard from my other female friends (especially the single ones) that they would rather pay a hefty car payment than risk having car repairs and nothing to drive to work since they aren't mechanically inclined. I don't agree with that POV, because those car notes are so high, they could just be saving all that car note money and putting it into a nest egg for a mechanical rainy day, and if they need something to drive while the car is in the shop, they can pay for a rental. And unfortunately, there is no way of predicting what repairs your car might or might not need in the future. When I found out my boss was paying a $523 car note on her Jeep, I mentally patted myself on the back for choosing to buy an '06 Toyota RAV4 and having a $150 car note on it. I happily duplicate the new car smell with my $2 "new car scent" pine tree deodorizer hanging from my rearview mirror
Buying a used car from a Stealership and taking out a loan to pay for it has NEVER made sense.
A "Stealership". That's a new one!
It all depends on what that vehicle is. If you want a fully loaded Chevy Silverado 2500, but don't have $60,000 to invest in a brand spanking new one, you're going to have to buy it used. Either that or just never buy one and chalk it up as a "luxury" vehicle that you'll never own.
Personally, I love the idea of having as many people buying brand new and ditching the vehicle after 3 years as possible, because that means having more options of fairly new vehicles to choose from for half the price. Most any vehicle in today's world should last to 200,000 miles, so if you're ditching yours before 90,000 miles, then that's music to my ears!
I can't imagine ever purchasing a brand new car with the drop in value right off the lot.
Try comparing brand new car against 1-2 year old of the same model. You'll soon find out that brand new cars are a better value especially with 0% financing and/or cashback and full warranty.
Buying a used car from a Stealership and taking out a loan to pay for it has NEVER made sense.
That is why I generally go and buy cars in small towns where I have a few connections, FAR BETTER than going to a dealership to purchase a used car. My last purchase at the car lot- they let me TAKE IT to a mechanic to have it looked at before I decided if I actually wanted to buy it. Also, because I was paying cash they marked down the price of the car even further.
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