Buying New vs. Used Vehicles

jeffparker · January 2008

Okay ..... I'm now about 90% sure that I'm going to fork over the $2000 and get my POS VW fixed and keep my fingers crossed that nothing happens over the next 3-5 years. I've been wrestling with this whole idea of buying an 06/07 Lexus GS for 38k vs. keeing my POS....... At this point, I'm not exactly salivating at the thought of coming up with 38k....

Quite honestly, the POS is a nice looking car and looks pretty sporty for a 1999 sedan.

xrunner2 · January 2008

That's what I plan on doing. I will sift through the phone calls/emails and try to get the most desirable person to deal with. I'll probably set up meetings/test drives a mile or 2 from where I live so that I don't have to have strangers coming to my door step

I have sold many cars in the past (most recent last Sept) in private sale from my house. I "always" go over everything about the car, features as well as warts and problems, with the potential buyers and the ultimate buyer. I can sleep well knowing that I have provided full disclosure.

isellhondas · January 2008

I know a guy who sold an Oldsmobile years ago. The car was, as I recall about 8 years old and the seller was totally upfront. He thought it was in great shape but he still pointed out a couple of minor things.

Two months later, the transmission went out. The buyer took the seller to Small Claims court and the judge made him split the cost of a rebuild!

Of course, this was California and no doubt one of Jerry Brown's appointees.

xrunner2 · January 2008

Two months later, the transmission went out. The buyer took the seller to Small Claims court and the judge made him split the cost of a rebuild!

Maybe I have been lucky and/or the cars I sell don't have anything major until years down the road. I always use a form that the buyer has to sign stating that he is buying the car "AS IS" with no warranties or guarantees.

wlbrown9 · January 2008

Well, if your are set on those 2 options....but for mid 20s to low 30s you could get a number of new (with factory warranty) CUVs, SUVs or sedans...not the Lexus GS you are looking at, but you could pick up something new and even get a factory backed extended warranty for less than the 38K you were talking about. If you can afford to go the 38K for the Lexus, you could afford to fix up the VW a couple of times over 3-5 year and not be any worse off moneywise. Thinking about it, would the Lexus be covered under warranty for the next 3-5 years? If not, then there is the possibility of some repairs on that, probably not as high a probability as the VW, but out of warranty Lexus repairs might not be fun either.

Good luck on whatever you decide.

the_big_al · June 2008

when the wheels fall off

- basically when the cost to keep it on the road out wiegh the purchase cost of a new vehicle in car payments.

I would be willing to drop 1500 in a transmission if it happened before 200K or a motor before 250K, but if I have to start dropping more money into keeping it on the road than a car payment a month would cost me, that's when I would dump the vehicle. It would not be cost effective in terms of down time and in lost finances to keep the vehicle operating. It would be like investing in a losing stock. Why not take that same money and invest it in something that is a little more reliable. It wouldn't have to be new, but I would say 2-4 years old with less than 50K on the clock. That way you wouldn't have to deal with the lost time to repair the vehicle your self, plus the parts cost, or the money spent and the time to find and or wait for the car to be repaired by your mechanic just so you can "squeeze" a few more miles out of the vehicle.

the_big_al · June 2008

Even though this post is a few months old - I'll throw in my 2 cents worth and say get rid of that car when the costs per month of keeping it on the road exceed the costs per month of a newer financed vehicle.

.....

Now that I think about that maybe I should clarify a little more since a financed amount can vary drastically and so can the monthly car payment. I would venture to say replace the vehicle when car repairs exceed 200-300 a month. The last 2 cars I purchased I finaced and the payment was around 300. If you are spending more than that to keep a car on the road, then there are probably some serious reliability issues and the security of having a car that won't break down in the middle of the road versus have a minimal car payment is worth it.

Of course if you shop well, you should be able to find any number of good reliable used cars that won't exceed a $300 monthly payment when financed.

It would be better to be able to pay cash for a vehicle, but as of yet I have been unable to. Hopefully that will change by the next time I am ready to purchase a vehicle..... And again hopefully I won't need a vehicle for a while since both of mine are paid off and running just fine.

m_thrizzle · March 2009

I live in California, which is considering passing a law to offer up to $5k for a clunker over 8 years old. Has anyone heard the latest news about this bill and details on it? I wonder if there will be a clause that states how long you must have owned the car before being able to use it for the rebate.

I'm curious about this bill because I've been looking to buy a newish used car (06-08) but if this goes through, I think it would make it worth it to buy a new car instead. My '96 Accord is worth ~$3k private party, so if possible, I'd rather buy a real clunker for <$1000 and use that for clunker money, and also sell my Accord.

explorerx4 · March 2009

there is a thread about this on the news forum.

isellhondas · March 2009

I seriously doubt this would pass, even in California.

Is Jerry Brown back or something? :confuse:

Kirstie_H · March 2009

He never leaves. He just hides in various corners, awaiting a comeback opportunity.

isellhondas · March 2009

As a native CA guy I remember Gov. Moonbeam and all of the trouble he caused and I remember some of the judges he installed.

Still around, is he?

kyfdx · March 2009

Well.... he did have good taste in music..

isellhondas · March 2009

Yes he did

I wonder what Linda is up to these days?

kyfdx · March 2009

About 195?

cccompson · March 2009

At age 70 Brown is now the Attorney General of CA.

kyfdx · March 2009

Wow... thanks!

It's amazing that I've never heard that.. :surprise:

isellhondas · April 2009

For awhile I think he was the mayor of Oakland and I thought that was a good place for him!

freet3 · March 2010

My 2007 sahara 4d 4x4 jeep wrangler lease is ending . I can buy it for 19,200 at 8.4 that is $393 a month with 42,000 miles (trying for a better rate ). I went to a dealer and i can buy a new one for $450 a month. Whats the better deal ? I m thinking the new one ???

Kirstie_H · March 2010

You're missing some key variables -
How long is the loan term on the 2007 Jeep deal you're being offered?
What is the purchase price (the price you've agreed on with the dealer) for the new Jeep? What model year is that Jeep? How long is that loan term?

Monthly payment alone doesn't give enough info for folks to advise you.

fezo · March 2010

Yeah, we'd need to know more.

As a rule slightly used is always better but someoen has to buy the new stuff to keep us cheapskates supplied.

I just picked up an 07 Camry with loads of the bells and whistles on it for less than a new stripper. Sure it already has its first scratch and then some but it is in wonderful shape and I'm expecting many years out of it.

Disclaimer: I have bought new vehicles; it's just that most of the time I go the used route.

freet3 · March 2010

the term for my 2007 jeep is 5 years The new jeep is 2010 unlimted sport islander and the mrsp is 30,000.the dealer is taking off 3,200.the new loan is for 60 months

fordfool · March 2010

You can shop around for financing on the lease buyout. You don't have to take the dealer's rate. If you go this route you will OWN the 2007 Sahara. It will be yours.

If you choose to lease a new Sahara, then at the end of the lease period you will own a bill for turning back the lease and nothing else.

Are the number of months on the buyout and a new lease the same?

freet3 · March 2010

the new jeep islander is a buy not a lease.the rate to buy my leased jeep sahara is 8.4

dtownfb · March 2010

The difference between the two loans (2007 vs. 2010) is about $3,500. One thing you have to factor into the 2007 is the cost of the lease. Even though you aren't paying that money going forward, it has to be factored into the total costs. Basically you are paying the 3 year lease plus the 5 year loan on the 2007.

Also remember that at the end of the loans, you will have either a 8 year old car or 5 year old car. Either way the 2010 is the better value,

Good luck.

podunk1 · November 2010

Researching 2010 RAV4 and have found a few with similar prices, the new is ~2k-3k more, (the 2011 is even more). I wanted low mileage (varies from 6k-15k) used, but am confused about the warranty.

Does the original 3yr/36k bumper to bumper transfer with the vehicle?
Or do I only get the 3month 3k with the CPO from a dealer? One of my options is thru a private seller, but it seems a big risk if there's no warranty on a 1 year old car that costs almost as much as new. (all are ~$20k+..hey, it's alot to me!)

jipster · November 2010

Does the original 3yr/36k bumper to bumper transfer with the vehicle?
Or do I only get the 3month 3k with the CPO from a dealer?

The original manufactures 3 year/36k mile warranty transfers. Dealerships will often add the CPO to their "newer" used cars. The high resale value of Hondas and Toyotas make them poor choices for used car buys. I'd buy new.

carbuyhelp · November 2010

If you are a smart car buyer and you know how to check the vehicle pretty well, you can get the best used vehicle. There are certain precautions you need before buying a used car and it's worth all that when you can get it cheaper than a brand new one.

Also buying used will make you experience other models as you can sell them again. Just keep them clean and well-maintained so the value will not depreciate that much. As human beings, we have the tendency to grow bored of something in the long run.

Kirstie_H · November 2010

A reporter wants to interview a recent carbuyer who considered new and used, and decided on new because the deal was better. Please email pr@edmunds.com by Nov 17, 2010 with your brief story and your daytime contact info.
Thanks,
Jeannine Fallon
Corporate Communications
Edmunds.com

oldfarmer50 · November 2010

Honda--new

Kia-used

Toyota-new

Chrysler-used

Nissan-new

Hyundai-used

Audi-new

BMW-leased

Almost anything else buy used as a 3 y/o used car will save you 40-50% off new.

qbrozen · November 2010

Audis depreciate like rocks. (just a quick comparo... new A4 2.0T premium auto for ~$35k vs trade value of an '08 w/36k miles at $18k.) CPO is the way to go there, if at all.

Not sure about Nissan, either. I think it depends on the car.

jproc · November 2010

I agree with oldfarmer regarding buying Toyota's and Honda's new and american made cars used.I looked for a 2-3 year old used civic for my daughter last year annd was shocked at what the dealers were asking> I thought the asking prices were so outlandish that there wasn't even a starting point for negotiations.Same thing happened when I looked at 2-3 yr old corollas.

fezo · November 2010

The Audi are the odd one. Yeah, they depreciate like rocks but those first couple of years they are likely to run....

oldfarmer50 · November 2010

"...Audis depreciate like rocks..."

I have to agree with you there. A friend just bought a 2005 (A4 I think) with 50K for under $10,000. I was thinking more about the mechanical problems I've heard about as they age.

I guess I'd put Audi in the "lease" category but then again, if they drop like a rock...ahhh... forget it, don't touch 'em. :mad:

qbrozen · November 2010

forget it, don't touch 'em.

probably the best option.

stever · May 2011

Did you go looking for a used car and find that prices were so high that it made more sense to buy a new car instead? Or found that your trade-in was worth a lot more than you expected?

If so, a reporter wants to interview you. Please email pr@edmunds.com no later than 3pm Eastern on Thursday, May 5, 2011 and include your daytime contact information.

robbieg · May 2011

Just wanted to get others thoughts about a car purchase. My budget is 25,000 if I am buying a new car and not a penny more. I want a SUV. I am open to used and new cars. However, I reallly don't want a a striped car. I like the Outback but the midlevel, premium is over my budget. I also don't mind the Sorento but again a midlevel Sorento is over my budget. Same goes for a Pilot. I priced the LX AWD on true car and id came in at 26,700 or something like that. CRV is set to be replaced and I have no faith in the EX AWD being priced below 25,000. The Equinox is pretty pricey. I have looked at used models but the asking prices are insane.

So, if I am going to spend 20-22000 on a used SUV what should it be? What year?

Can I get a fairly loaded 2009 Murano or Pilot for 20,000?

qbrozen · May 2011

2009 Mazda CX7 Grand Touring with moonroof, leather, etc, with ~30k miles will run you about $21k-$22k after negotiations.

That same price for a Pilot EX-L AWD would require you step down to an '07 with ~50k miles.

And '09 Hyundai Santa Fe LTD with ~30k would be more like $23k.

'09 Rogue SL w/ leather and moonroof with 30k would be $20k-$21k.

'07 Murano SL w/leather, dual pwr seats, moonroof and 50k = ~$20k.

robbieg · May 2011

Cars have gotten pretty expensive. I think the Rogue is a pretty good buy new. I have priced them and loaded up they are about 26,500. I also think the Pilot LX AWD is a good buy and it is priced the same. I would just rather spend less than 25,000 so my payment would be south of 400 after trade and a little money down. The problem with dropping to 07 for the Pilot and Murano is that they both are old models. I am trying to trade a 05 Subaru GT with 60,000 miles so I can't really bring myself to spend 20,000 on a car with 10,000 less miles on it.

Shockingly, I am almost considering an 2008 Audi A4 Avant. If they are priced close t the sedan it could be good buy. Sedans are priced at 20,999 with 38,0000 miles. I wonder if the premium for a wagon is about a grand? Unsure from the listings if this is a CPO. I would rather have an 2008 Audi wagon than 2007 Pilot. If only my wife didn't hate VWs and Audis so much.

euphonium · May 2011

Determine what you want. If the price is too high, advise the seller what you will pay. Offering to pay less than the asking price compliments the seller by letting him know your are at least interested. Often the asking price by the seller is so damn high that when he receives an offer lower, that offer is actually higher than he could sell the unit for and so he makes a very good profit while you think you struck a deal. In making any purchase, the Buyer is the Controller and the Seller wants your $$$ so make him earn it. If your limit is $25,000 why not shop what you want up to $35,000? The Buyer has no idea just what the Seller will agree to until your offer is communicated. When the Seller attempts intimidation, walk away.

robbieg · May 2011

I understand that it never hurst to make an offer but at the same time if the asking price is so high then they may not be open to a reasonable offer. For example, I searched the Audi CPO website and there is an 2008 A4 quattro with 38k miles for 20,999 in Virginia. My local Audi dealer has the same car for 25,999. Big difference in price. I can't imagine that they will knock 5000 off of price. So it probably isn't worth my time to drive to the dealer and make an offer.

qbrozen · May 2011

An '08 2.0T Avant with leather and 40k'ish miles is worth between $20k-$21k as a trade. So CPO for such a car is probably in the $25k range.

A comparable sedan (gotta add quattro to be comparable) is actually $3k less.

The CX7 seems like a good buy to me, which is why I listed it up top. I mean, that's a $32k vehicle new. So $22k for one with 30k miles ain't bad at all, IMHO.

euphonium · May 2011

" So it probably isn't worth my time to drive to the dealer and make an offer. "

The above attitude, approach, & thinking is not appropriate in buying.

There is no fear in making your offer regardless of any posted price.

Confront the Sellers and state your offers. You have no idea what is on their balance sheet and when they will jump on your price. Be Bold! :mad:

fushigi · May 2011

If you're considering the Rogue, have you also looked at others in it's class? Outlander Sport, Tucson, and Sportage are all comparable in size & price though all three offer better fuel economy & warranty than the Rogue.

Personally, I keep my cars for 8+ years so the question that springs to mind is why are you looking to trade in now? Is there something about the Subie you can no longer live with or are you just ready to move on?

robbieg · May 2011

Time is money. I have more important things to do tham make an offer that has little chance of being accepted.

robbieg · May 2011

I was in a wreck last year and the car was fixed. My wife doesn't like this fact. Also, sort of want a bigger car or a car that isn't a sedan. Basically, have two boys and a big dog. So a SUV even a small one would help. Our other car is a minivan but because of our schedules we frequently need two cars that can hold the kids and dog.

euphonium · May 2011

Your first statement is true.

qbrozen · May 2011

I agree with the OP. Unless it is a hard to find vehicle, I'd rather spend my time focusing on cars with more realistic asking prices.

fushigi · May 2011

Well, I can certainly understand that. Even a repaired vehicle will often leave an accident "aftertaste".

Also, my sister-in-law had issues with a post-accident-but-supposedly-repaired pickup. The truck ran fine but in a followup accident some time later the airbags never deployed. :mad:

I think you're on the right track with a small SUV/CUV or a wagon.

bigram03 · March 2013

Hey all,

Looking to get a car here fairly soon and wanted to ask which is a better value car to buy (new or used)

With the way the used car market is right now which would be the best way to buy taking into account that we drive our cars till they die? We plan to keep anything we buy 15+ years are have concerns buying a used car that already has a chunk of its life used up only to save a few thousand bucks. Any advice is welcome

Buying New vs. Used Vehicles

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