Buy new or used?

[wn1998]

My wife and I are looking for a new car for her and we are torn. should we buy new or should we save some coin and buy a used car.
We can swing a $275-$300 car payment now but are not sure what may come 2-3 years from now (Kids, layoffs, etc).

We are currently looking at buying a new Mitsu Lancer, Dodge Journey (we like the lifetime power train) or maybe a Honda civic. Our choices are much broader looking for a used car. Used cars we may step up a get something with 4wd to help us with these midwest winters

My wife currently drives 25 miles to work each way so mpg is important.

I am just not sure if saving 5-10k on a used car is worth the potential headaches of buying used.

We have also seen some high mileage used cars and trucks with 100k or more going for peanuts (2002 Impreza with 110k for $5k) might that be a good investment? I am just totally confused.

 

[daves87rs]

Do you work on your cars? If you do, buying used might not be a bad idea....

 

[wn1998]

I am a shade tree mechanic. I have done alternators and oil changes and things of that nature. However, I hate doing the work and only do it if I have a day or two

 

[bepperb]

You're all over the place. What do a Lancer, a Journey and a Civic have in common?

I'd say, find a car you really like, and define your needs more clearly (to yourself, not us). If it's a new model that can't be bought used, you'd have to go new. If it's later in the cycle, it's hard to go wrong buying a car with 30~40,000 miles and saving half the cost. Especially the Dodge or Mitsu, where the resale value is so bad (good for you, though). The Civic, you might as well buy new. You won't get a deal on a three year old Honda, and the current gen is much better than the last gen.

If you're having kids, the Civic or the Lancer won't allow a rear-facing child seat and an adult sitting in front of them with anything but the seat all the way forward.

 

[StevieC]

What kind of driving needs do you have and how many miles per year will you drive this vehicle?

 

[tomcat27]

I agree with bepperb's copmments; any dodge or mitsu is a bargain used; a honda wont be. also, if u want the lifetime powertrain warranty, you gotta move qwik, as they are dropping it with the 2010 model year. I've had good luck buying used - altho I try to keep the miles under 20k. many used cars are off-lease units and you'd be suprised how many people dont change the oil on a lease. why should they? its not their car?!?!? I have some friends who bought an 06 ford focus with 40k miles.... and the original oil and filter. the motor puked the 2nd day they had it.

also, even tho has prices are not bad right now, they could jump up if our economy improves. so, give alot of thought to your desire for 4WD. dont get me wrong, its nice, but do you really NEED it? it will cost you in initial cost, lower MPG, higher insurance, higher maintenance....

 

[Fazzone]

If you're not in a really big hurry, you can probably find a real nice used car with low miles and save a ton. I took a couple months to find my last truck, but it was sooo worth it. Found a year old truck with 7,000 miles on it. Saved prob $7000 compared to getting the same thing new. Take your time and let the dealership(s) know what you are looking for, if you can narrow it down.

 

[Audi Junkie]

We just got a Saturn Astra for my wife. It's such an amazing car it's silly. As long as your wife can handle a stiff ride, I would check it out. No way I would trade it for a Civic, and I drive an Accord Coupe. If anything, get a Accord Value package over a Civic. Anyway, check out the Astra, they can be had for $14k LOADED. You can always try for less, maybe as low as $11-$12k.

 

[Jason2007]

Id look at a used Ford Fusion and you can get it w/ AWD.

 

[postjeeprcr]

Originally Posted By: bepperb
You're all over the place. What do a Lancer, a Journey and a Civic have in common?

I'd say, find a car you really like, and define your needs more clearly (to yourself, not us). If it's a new model that can't be bought used, you'd have to go new. If it's later in the cycle, it's hard to go wrong buying a car with 30~40,000 miles and saving half the cost. Especially the Dodge or Mitsu, where the resale value is so bad (good for you, though). The Civic, you might as well buy new. You won't get a deal on a three year old Honda, and the current gen is much better than the last gen.

If you're having kids, the Civic or the Lancer won't allow a rear-facing child seat and an adult sitting in front of them with anything but the seat all the way forward.


A Lancer, a Journey and a Civic have nothing in common but it is called variety. People do not have to decide from one kind of vehicle.

 

[bretfraz]

I'd buy used if I were in the market for a Journey or Mitsubishi. Their depreciation rate is steep in the first couple years. I've seen '08 Journeys with mileage in the teens sell at auction for $13000-15000. '08 Lancers can be had from $10000-15000 depending on mileage and options.

I agree the best deal on a Civic is new, take advantage of any promotions or rebates.

 

[Liquid_Turbo]

From a financial perspective, it makes no sense to buy a brand new vehicle.. (a depreciating asset)

 

[fdcg27]

Hi wn,

I have bought new and used over the years.
Cars I would never have spent the money for new I found quite cheaply used.
Cars I would have bought new I have sometimes found used at really cheap prices. For example, I bought our '97 Accord when it was six years old and had 64K on it. I paid 6K for it, and we have driven it another 90K since buying it.
I would not hesitate to buy used in the case of a car still under factory warranty. Unless the last owner seriously abused the car, you shouldn't have much to worry about.
OTOH, when you buy a car new, you get its best (first) 100K of use, where nothing of any consequence will break or give trouble, or at least that has been my experience.
Also, no one else will have touched the car much, so you can drive and maintain it in a manner that assures long life.
If you consider the cost of new vs used, the difference is not all that great if you keep the car at least ten years and maintain it well so that you don't see big expenses down the road as a result of neglect.
Now, if you really think you want AWD for your wife (I did last time we bought something new), you should be looking at Subarus. Subarus represent a great value for what you get. The Subie AWD system is about as good as it gets, handling is pretty good, and the cars have solid stucture. Subarus do very well in crash tests.
If you don't need a lot of room, an Imprezza would probably suit you. If you need more space, a Forester would work well for you. If you need even more room, there is always the slow-selling Tribeca, which offers really lousy fuel economy, but has a smooth flat six and no T-belts to require future expenditure.
Subarus are not especially economical in their fuel use, but fuel expense per mile is only a fraction of the ownership cost of any vehicle. Look beyond fuel economy when buying anything.
If you want room and better fuel economy, an Accord LX is a good buy. AWD is nice, but no Honda will give you a hard time in the snow. It is very difficult to find a decent buy on a late-model used Honda, so you may as well buy new. Also, the Accord is absolutely worth the price premium over the Civic.

 

[rpn453]

Originally Posted By: Liquid_Turbo
From a financial perspective, it makes no sense to buy a brand new vehicle.. (a depreciating asset)


True, but if you keep it twenty years it's not a big expense either. Are there people who buy a new car and don't expect to keep it until it's no longer usable?

 

[rjundi]

The Lancer and ANY Chrysler product have horrible resale. You definitely want to buy either used. The cost savings will be significant.

A Honda is pricey if not overpriced in the used market, look real close at new vs used there. Same is true with Toyota.

Personally I don't think I will ever buy a new vehicle again. I will stick to a 2-5 year old model with at least 50% depreciation at that point and hang on for another 5 years and toss it out.

 

[Saturn_Fan]

Originally Posted By: rjundi
The Lancer and ANY Chrysler product have horrible resale. You definitely want to buy either used. The cost savings will be significant.

A Honda is pricey if not overpriced in the used market, look real close at new vs used there. Same is true with Toyota.

Personally I don't think I will ever buy a new vehicle again. I will stick to a 2-5 year old model with at least 50% depreciation at that point and hang on for another 5 years and toss it out.







It is almost always a losing proposition. I bought my Corolla in 08 brand new, but I bought it with for 14,000 with a factory rebate. Most importantly, I will be keeping this car for ten years at least, possibly longer. My wife drives this car 11,000 miles a year so 10 years x 11,000 is only 110,000 miles. I will still be able to most likely sell this car very easily with that amount of mileage if she is sick of it, or we'll keep it and go from there.

 

[Saturn_Fan]

Originally Posted By: tomcat27
I agree with bepperb's copmments; any dodge or mitsu is a bargain used; a honda wont be. also, if u want the lifetime powertrain warranty, you gotta move qwik, as they are dropping it with the 2010 model year. I've had good luck buying used - altho I try to keep the miles under 20k. many used cars are off-lease units and you'd be suprised how many people dont change the oil on a lease. why should they? its not their car?!?!? I have some friends who bought an 06 ford focus with 40k miles.... and the original oil and filter. the motor puked the 2nd day they had it.

also, even tho has prices are not bad right now, they could jump up if our economy improves. so, give alot of thought to your desire for 4WD. dont get me wrong, its nice, but do you really NEED it? it will cost you in initial cost, lower MPG, higher insurance, higher maintenance....


A Daewoo is a real bargain for the second purchaser. I have seen these go for 6,000 bucks with around 25,000 miles and only a few years old.

 

[Liquid_Turbo]

Originally Posted By: rpn453
Originally Posted By: Liquid_Turbo
From a financial perspective, it makes no sense to buy a brand new vehicle.. (a depreciating asset)


True, but if you keep it twenty years it's not a big expense either. Are there people who buy a new car and don't expect to keep it until it's no longer usable?

There are. I say purchase a one or two year old car. Let someone else take the full brunt of the worst depreciation. Puts thousands of dollars right in your pocket, and your car is virtually new anyway.

 

[PT1]

I buy lots of new cars but shop shop shop....at least 5-10 dealers until I find the best price then give my local dealer a chance to beat it by a small margin. rebates are real big with me as I bought on the Toyota rebates last year. Demos are great too as you can usually expact a 10-15% discount for 2-3000 miles.

It is October...left over model time. Great time to buy IMO.

 

[rpn453]

Originally Posted By: Liquid_Turbo
There are. I say purchase a one or two year old car. Let someone else take the full brunt of the worst depreciation. Puts thousands of dollars right in your pocket, and your car is virtually new anyway.


Around here, that only works well if you want a domestic with an automatic; near-new imports have very little depreciation. That's why they ship so many used cars here from out east (it's best to avoid those ones). I checked the used vehicle market before buying my car and I wasn't willing to let someone else get the best years of a car's life for such little money. When my car was t-boned last fall, our public insurance company valued it at $16,000, so was willing to spend up the $12,000 to fix it (ended up at around $9000). That was a 4.5 year-old car with an MSRP of $22,500! You also have to pay tax on any used car purchased here anyway.