Why do some people think it’s better to buy used cars?
libra23
I am in the process of buying a vehicle (1st for me), and people have recommended buying used versus new because they say new cars depreciate (sp?). I don’t really understand the concept because wouldn’t you be getting a better deal if you bought a new one? After all, with used cars you have to worry about mechanical issues and wonder if there might be something wrong with the car. However, new cars are just off the line. I’m kind of confused now and am not sure which one to choose. Which would you recommend? New or used? I don’t really care I just want something that works and won’t break down as soon as I start driving it.
I am in the process of buying a vehicle (1st for me), and people have recommended buying used versus new because they say new cars depreciate (sp?). I don’t really understand the concept because wouldn’t you be getting a better deal if you bought a new one? After all, with used cars you have to worry about mechanical issues and wonder if there might be something wrong with the car. However, new cars are just off the line. I’m kind of confused now and am not sure which one to choose. Which would you recommend? New or used? I don’t really care I just want something that works and won’t break down as soon as I start driving it.
June 25th, 2008 at 4:54 pm
I would recommend getting a used car. It’s nice to have a new car, but if it’s your first, then try to find something you are pretty sure will be reliable. Research the cars you are considering thouroughly, and buy it from a dealer, so if anything goes wrong then you can go back to them rather than a private seller. You also may want to try getting a Carfax report on a used car. As for depreciation it all depends on the car, but obviously all cars depreciate. A used car would probably be worth less if you went to sell it because it had more than one owner. If you were selling a new car you would be the original owner, so it tends to be worth more. The best thing to do would probably be to get a car that is a couple of years old, however, base your decision on your budget, the information you have gathered, and what you feel you will be happy with!
June 28th, 2008 at 12:47 am
Used is better because depreciation starts the minute you drive the car away from the dealer’s. The depreciation is quite a large perscentage of the price paid (as much as 10 to 15% or more), so if you buy a year old used car for 85% of it’s new cost, you’ve eliminated that depreciation. Most year or two (or more) years old used cars, are just as mechanically sound as new cars and are often in better shape as they may have been recalled and safety items rectified. I would definitely recommend buying a year old used car at 85% or less of its new car cost.
June 28th, 2008 at 4:45 pm
If you want a car that’s 100% reliable and aren’t too fussed on the cost then a new car is best for you. Depreciation is basically how much the value of the car drops over time; and in the first year or so that drop in value is greatest. It’s not going to matter to you until you want to sell your car in a few years and want to recuperate the money you spent on that car. If you go buy a new car from the showroom then go straight to the car yard to sell it you’ll understand depreciation
July 1st, 2008 at 10:09 pm
New cars break, used cars break. Difference is a four year old Honda has maxed out the plunge in depreciation and will still go over two hundred thousand miles with minimal mateinance and upkeep. A new Honda (or any other vehicle) loses 20% of it’s value the second you drive it off the lot, 15% the next year and 10% the year after that. With the 6K + dollars you save buying a clean used car you can afford to pay for any repairs and upkeep yourself and still save a ton.
July 4th, 2008 at 8:06 am
there are many aspects to it. I would also rather buy a used car in very good condition, than a brand new one. Of course the new car depreciates the moment you take it out of the car agency. If you paid 20000 dollars for it for example, the minute you drive down the ramp onto the street it is at least 15 % less worth. Imagine how much money you lost right away. So I would look for a car in very good condition, maybe even a demo car. Don’t think that buying a new 0 miles car guarantees no mechanical flaws or problems… that is often just a matter of luck. But most US and Japanese cars have very good services and will respect and attend any problem you might have even after 36 months. So i would get a used car, maybe a 2005-2006 model.
Good luck and have fun shopping
July 7th, 2008 at 4:34 am
Depreciation means you pay $15,000 for the car. As soon as it is registered or is driven off the dealer’s lot it just went down about 15% and is worth $12,750 or less.
With a used car you buy it at $12,750 and drive away and it is still worth $12,750 at the end of the day , the month and until the year.
With a new car purchase you are making payments on the 15% of value that vanished.
July 8th, 2008 at 4:28 am
It is true in many accounts that a new car as with most things in life the value drops as soon as you drive /take it away.
Not all new cars are with out fault i remember my Dad buying a new car.very excited first new car ever had but his worst also as was always back to the garage being fixed.
Second hand cars and usually just as good.Get one from a garage with warenty,our take a mechanic to look around a private car sale.
Best thing is look at a new car then look at value on same car a year later and so on ie using car guides..Then decide if its worth getting new or the same car but second hand.Also once a car reaches a certain age the value goes down less in most cases..
July 10th, 2008 at 7:23 am
New cars do depreciate. You buy it for 10,000 and drive off the lot. Turn right back around and they will tell you it’s only worth 7,000. The minute you drive off the lot you lose a good percentage of it’s value.
Unless you have good credit, get a low rate, a good price on the car, good downpayment and large enough payments each month, to cover the depreciation, you will always owe more than it is worth.
A used car depreciates much slower. Whoever bought it first lost the most on it. You could buy a “used” car with 100 miles on it for a lot less than a brand new one. Simply because it has another owner.
As for the problems…. I personally think that buying a new car is nothing but problems. It takes a few months or so before people start finding problems with the new car. Yeah, they were tested, but not in real life situations. So since it is new, you don’t have an idea of what problems you can expect. Just because it is under warranty doesn’t mean it wont be a problem. You still have to take it to the dealer, usually multiple times, wait around forever, get a rental or whatever. It’s a hassle, no doubt.
So as far as that goes, I don’t see much advantage of the new car warranty. On the plus side, you know how the vehicle has been maintained and what problems it has had (which doesn’t really help you after you have already purchased it, but you usually don’t have to worry about something major happening due to lack of maintenance), which you can’t really know when buying a used car.
I would always go with a used car, even if it is just slightly used. You can find 1 year old used cars for great prices. You wont lose as much in depreciation as a new one, and you can usually get the maintenance records very easily. They are easier to finance and easier to pay off.
New or Used, you can never be sure it wont break down as soon as you start driving it.
If you really want a new car, you might try leasing first.
July 11th, 2008 at 7:44 pm
New cars break down too. Depending on how used some can still have a warranty. Let some other shmuck lose the $4000 or more the second they drive it off the lot. Used is cheaper to register and insure too.
July 14th, 2008 at 6:39 am
The problem with used cars is you never know what you are getting. It could have been hit, flooded, new engine, not maintained, whatever, people can be very clever in covering up this stuff.
Alot of people say, “buy a low mileage, excellent condition, one or two year old car” But i have to wonder, why did they get out of it so early, knowing they will take a huge depreciation hit.
I’m a new car fan, but if you must get a used car, get a certified factory car, with a mfg warranty still in effect, from an authorized dealer in good standing with the better business bureau.
July 16th, 2008 at 8:07 am
if you buy a new car, and it breaks, the dealer fixes it for you.
if you buy a used car and it breaks, you pay to get it fixed.
if you buy a new car for $20,000 and drive it for 10 years, it costs you $2,000 a year.
if you buy a used car for $2,000 and drive it for 4 years, it costs you $500 a year.
a used car is a gamble.
if you pick well, it’s much cheaper.
but it’s likely that a cheap used car is for sale because somebody else doesn’t want to fix it.
good luck.
July 19th, 2008 at 10:58 pm
Why waste so much money on a ugly new car when you can buy a near new used dream car from government seized auto online auction, where you can buy a used car 90% off Retail Value?
This may help you:
July 23rd, 2008 at 12:42 am
They don’t… they are just cheaper and better on gas. I don’t know anyone who would rather have an old used car as opposed to anything new…
unless it is any year Chevy from 1950 to 1980
July 25th, 2008 at 6:16 am
RECENT EXAMPLE:
2007 GMC ENVOY 2WD 4.2 SLE VERY WELL EQUIPPED, $31,789.00.
SAME VEHICLE LESS ONSTAR WITH 9000 MILES, $21,000.00.
FULL WARRANTY BUMPER TO BUMPER OF 3 YEARS OR 36,000 MILES BECAUSE IT IS A CERTIFIED VEHICLE.
FULL WARRANTY ON DRIVE-LINE FOR 5 YEARS OR 100,000 MILES.
DEPRECIATION!!!!!!!!!!!!!!.
July 26th, 2008 at 4:45 am
Well, there are two ways to look at this. If you have good credit. 700’s +… If you buy used, yeah, you wont have to worry about depreciation. That is if you do your homework and dont over pay for the vehicle. But usually the financing on a used car is usually higher on the percentile basis. Now, if you buy a new vehicle, and have good credit. You will pay less on your financing, but you will loose money due to its depreciation. Typically 2000-5000 dollars. pending on what you’ve bought. So, you may buy cheaper in used, but pay more in financing. Or buy lil more in new, and pay cheaper.
I personally have bought from both ends. What I really look for is basically what am i going to pay in the end. The total is always king. If i can buy a new car, reasonably priced with ample warranty, close to what i can pay for a used car with financing charges included. Then i will buy new. But if i see a used car, at a good price, and can swing a deal my way. Im likely to walk away with a used one. Like the fram oil filter ad says,”pay me now, or pay me later”. Either way, you are going to pay.
Now if you have questionable credit. Good luck……
July 26th, 2008 at 11:39 pm
The best way to go is to get a Certified pre-owned vehicle. They have been put through a inspection and usually come with some type of warranty.
Even though new cars are “just off the line” they can have just as many problems as a used one. You just have to be patient and take your time looking for a used car, and you will find the one that is right for you.
July 29th, 2008 at 6:18 am
New cars are great,but the crap I have seen coming out of detroit lately,I would be leary at the thought of buying one.With a {low-mileage}used car,someone else has already experienced the new car break in problems,and hopefully taken care of them at the dealer.Look for a used car with maintenance records,oil changes,tuneups etc.And above all,take it to a reputable shop to have it gone over extensively[before you buy]If the people or place you are interested in buying from wont allow you to do this leave Quickly!.