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.
If true, that scenario is not normal. Definitely the exception to the rule. No sane seller/dealer would sell a new truck for less than a used truck if both trucks are identical content-wise. If so, you'll never sell that used truck and it'll sit...and sit....and sit. (Costing the dealer floorplan interest every day....tick...tock...)
Did you try to negotiate the used truck? You can't compare a purchase of a negotiated new truck versus an asking price (not negotiated) of a used truck.
Carmax is a perfect example of used cars/trucks costing more than new.......
I bought this identical truck (but white in color) new in Dec 2013 for $18,600, Window sticker (MSRP) was 24+++. Carmax wants 17,998 for the truck used with 31K miles on it and it is essentially 5 years old now! This is a base truck (WT) series, rubber floors, crank windows etc so it is nothing special.....
Depends on what your buying and how your buying it.
Used to be, that virtually all the time, that buying used was the more affordable route. Older car, cheaper price.
But in reality your doing two things when buying a car. Buying the car, and getting a loan.
Since most people finance a car, that cost is (or should be) a consideration. Since the lowest (or no interest) loans are generally offered only on brand new cars, it muddies the waters. Sometimes it ends up costing about the same to buy the new one then buying a less expensive one or two year old used car with a higher priced interest rate on the loan. So for the few folks that qualify for that low or no interest loan, you can get the new one for about the same cost. That probably isn't too many people though, since most people don't have the nearly perfect credit you need for that really low (or no) interest rate.
Most vehicles are generally less expensive used, especially if you pay cash. That removes the second part of buying a car, which is getting a loan. So what the car costs is the only consideration. No loan, no cost there.
That's why its often not the best idea to buy and finance in the same place. You tie the two too closely. It may be the right car, but not the right loan. Or the opposite, the right loan, but not the right car.
So I think for most people buying used is still the better financial thing to do. Its always best to have a smaller loan then a larger one.
There may be a few exemptions to that rule. For example you want the less loaded model of a vehicle that is mostly sold as a loaded model. If most of the used ones are loaded, they still have a high price especially if they hold their value better then average. For example a half ton pickup truck. The base model of a new ford f 150 is 27k and some change. But most sell for over 40-50k because most have many options on them. So a used one that is loaded is likely still in the 30k range. So if you are happy with the base model, and you can find one (they are hard to find new even) you could get it new for the 27k. But that is probably one of the few times, since there are likely few used base model F 150's out there.
That is very useful information. I never thought of it that way. I just automatically assumed I should buy used, when in reality, it is somewhat more complicated. From what you wrote, buying new might be better for me based on my driving habits/credit. Thanks!
Carmax is a perfect example of used cars/trucks costing more than new.......
Carmax also does not negotiate on the price
We have both Carmax, and Carsense in my area. Carsense is close by so I went in there to check out what they had. The prices of three year old cars were close to new. Maybe $1K, or $2K less. I ended up buying new. It was a joke. They get cars off of three year leases at auto auctions, detail them, and sell them for close to new. I don't know why people buy from them.
I bought this identical truck (but white in color) new in Dec 2013 for $18,600, Window sticker (MSRP) was 24+++. Carmax wants 17,998 for the truck used with 31K miles on it and it is essentially 5 years old now! This is a base truck (WT) series, rubber floors, crank windows etc so it is nothing special.....
Carmax also does not negotiate on the price
CarMax is a joke...their model is to sell at inflated prices to those who don't know any better.
That being said, you can't compare buying a new truck in 2013 to the price of a used truck 4 years later. That's not an apples to apples comparison. The real question is what would have a lightly used truck similar to the one you bought cost back in 2013. Depending on what that difference was then someone could make a decision on what was best.
I understand what a depreciating asset is. A car IS an investment. It's an investment in transportation, not a a fiscal instrument that's going to make you money.
An 'investment' assumes a return on funds greater than supplied. That just doesn't happen with a vehicle... you're right, it is transportation, but only that.
Now, one could buy a used or new, vehicle, take a bus, take a train, bike, motorcycle or walk for your transportation needs. The only ones that will actually pay a dividend is walking and biking.
If true, that scenario is not normal. Definitely the exception to the rule. No sane seller/dealer would sell a new truck for less than a used truck if both trucks are identical content-wise. If so, you'll never sell that used truck and it'll sit...and sit....and sit. (Costing the dealer floorplan interest every day....tick...tock...)
Did you try to negotiate the used truck? You can't compare a purchase of a negotiated new truck versus an asking price (not negotiated) of a used truck.
Sticker on my truck was 32, used truck was 29. Bought my truck for 28.
Location: San Ramon, Seattle, Anchorage, Reykjavik
2,254 posts, read 2,737,417 times
Reputation: 3203
Quote:
Originally Posted by normstad
No car is an investment. Get that out of your head.
A car is an article that you either need or want. How big your need or want is determines what you are willing or able to spend. After you buy it, it is an expense, and will continue to be an expense until you sell/trade it.
My last new car was in 1974. I will never, ever again buy a new car. I spend less on repairs on my cars than most new car warranties mandatory inspections cost such a buyer.
Amen. And financing a car is for broke people. Financing allows people to buy a car they can't afford for money they don't (and may never) have. There is a reason why so many Americans can't afford to retire yet lived the high life (on credit) through their working years.
Sticker on my truck was 32, used truck was 29. Bought my truck for 28.
Again, either the content of the two trucks was not the same, or you ran into the exception to the rule. (And was $29K really the price of the used? How much real negotiation did you really do on that besides asking them how much it was?) You understand it makes absolutely no sense for a new truck to cost less than a used one that is just like it, right? Even if true that is not a normal occurrence and you can't make a blanket statement of "new is better than used" based on a freak exception to the rule.
Eventually, that $29K used truck is going to be sold for less. No other way around that. Otherwise it will be expensive yard art for that seller.
Again, either the content of the two trucks was not the same, or you ran into the exception to the rule. Other than the color, yea, they were the same. (And was $29K really the price of the used? I'm going by what the salesman told me. How much real negotiation did you really do on that besides asking them how much it was? None, really, I was looking at the others while waitng for him to get the keys.) You understand it makes absolutely no sense for a new truck to cost less than a used one that is just like it, right? I have found they have MORE negotiating room on new vehicles. Even if true that is not a normal occurrence and you can't make a blanket statement of "new is better than used" based on a freak exception to the rule. I didn't say that, did I?
Eventually, that $29K used truck is going to be sold for less. No other way around that. Otherwise it will be expensive yard art for that seller.
I'm not going to argue with you, just stating the fact that I bought my truck for less than the asking price of a used one.
I always say I won't buy new again. Then I get excited over something new and buy.
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.
