Car buying/owning strategy/principle/philosophy

[M1Accord]

I have a total of 4 cars; 2 were purchased new and 2 were purchased very used. I haven't purchased slightly used vehicle before because I tend to keep cars as long as humanly possible so I tend to not needing "new" cars that often. I am in the market for a car in about 2-4 years, depending on commute arrangement and car condition when the older of the 2 commute vehicles, which was purchased new, turns 200k miles.

My approach now is to buy new but lower trim of reliable brand and model with lowest mainteance prediction and keep for at least 200k miles, which usually means 10 years or longer before making a decision to replace. Our commute is +20k and +25k annually. While some see the benefit of buying slightly used, there isn't much saving when doing so with Honda, Toyota, and Subaru. While slightly used cars are cheaper, the saving is negated by the miles and years of wears and tears already incurred. In addition, people tend to trade in cars too soon tend to not car about maintenance and are likely harsher on cars. I am also going to get a car when the model year change drastically now that I have some car shopping experience under my belt.

What's is your car shopping approach now? Had it worked out? My state requires bogus inspection so buying beaters and drive them to the ground is a risk I took once and lost dearly.

 

[JHZR2]

Originally Posted By: M1Accord
My approach now is to buy new but lower trim of reliable brand and model with lowest mainteance prediction and keep for at least 200k miles, which usually means 10 years or longer before making a decision to replace. Our commute is +20k and +25k annually. While some see the benefit of buying slightly used, there isn't much saving when doing so with Honda, Toyota, and Subaru. While slightly used cars are cheaper, the saving is negated by the miles and years of wears and tears already incurred. In addition, people tend to trade in cars too soon tend to not car about maintenance and are likely harsher on cars. I am also going to get a car when the model year change drastically now that I have some car shopping experience under my belt.

I totally agree with everything you said here, and in an older thread we calculated some pretty convincing numbers. You're right. Low mile nearly new cars are a poor value if they aren't a variety that drops like a rock, because all that happened is that you're amortizing wear, pm and long-term replacement items, everything from tires to brakes to radiators, suspension parts, etc. over fewer miles with the "low mile" used car than the new one.

Your approach is sound, a slightly reduced trim level is lower priced to buy, fewer things to fail, and then keep it up well. Your approach has worked very well for my family for the last sixty or seventy years and is working well for my wife and I as well.

 

[Kestas]

I like to buy cars with 30K to 60K. The thought is that if they at least kept up with oil maintenence, neglect wouldn't be that detrimental and one could easily catch up with the proper maintenance.

You're correct in noticing that the value of older models drops like a rock once they change the styling.

 

[hattaresguy]

I like to buy new and trade up after 8-10 years. My truck will be 10 soon so I'm getting the ich.

New vehicles are the cheapest to own if you don't play musical cars, and take care of them.

Used vehicles are a poor deal. For example my lumber guy is selling his 2010 Silverado with 75k on it and he will probably get around $20kish for it. A new one can be had for $10k more.

So for only saving $10k your trading 4 years and 75k of life, and not just that the cheapest mileage in terms of maintenance and repairs because it was all under warranty. Now his 2010 will probably need plugs, drive line fluids, coolant, brakes, and start needing repairs.

A 2014 for $30k is the better deal.

 

[opus1]

My philosophy:

Buy lower-end new.

Maintain religiously.

Drive into the ground.

Most lower-end vehicles today have more than enough for me. All I really want, besides the engine/brakes/etc are: A/C and a decent radio/cd/media combo. I don't need power windows, power locks, etc., but most of the cars seem to come with them even on the base models. I've had 2 used cars in my life; my first Impala, which was a hand-me-down from my parents when Mom got her new Caprice, and my second Impala, which I was in a rush to buy because the first Impala was stolen and I needed something while having very little cash on-hand. And I've never gotten rid of a vehicle with less than 13 years of ownership.

 

[JerryBob]

I tend to agree, especially with the trim level. My brother in-law paid thousands for leather seats, built-in GPS, and all that other stuff.

Not a good use of money, in my opinion, either now, or when it comes to sale time.

 

[Wolf359]

If you're going to buy used, it's best to buy an American car because they have a lot more depreciation than foreign cars. Some fee reliability is worse, but if you look at those JD Powers numbers, maybe foreign cars had 100-120 problems per 100 cars and American cars were in the 150 range, not a really big difference, plus American parts are cheaper, and most people know how to fix them. It all boils down to supply and demand, most people are brain washed into thinking that foreign cars are better, but Toyota leads the pack in recalls lately.

 

[Quattro Pete]

Originally Posted By: Wolf359
If you're going to buy used, it's best to buy an American car because they have a lot more depreciation than foreign cars.

There are some luxury foreign cars that depreciate quickly, too. This is one reason why we bought the C300 used. It was 2 years old and had 23K miles with extended CPO warranty, and it was 30% less than a comparable new vehicle.

But for a plain Jane commuter appliance, the OP's tactic makes sense, for sure.

 

[Pop_Rivit]

It depends upon the intended use of the vehicle.

I purchased my 1999 Dodge pickup for $5,000 when I bought it 4 years ago. It had 85,000 miles on it at that time and it now has 95,000 on it. It would have been foolish to purchase a more expensive pickup just to use it a few times/year.

We purchased our 2006 Durango last summer just for travel. We could have spent a lot more, but it only gets used for traveling, so it makes no sense to purchase something more expensive. The Durango will do everything a more expensive vehicle will do, and given the limited use it will last for a very long time.

My wife's 2006 Outback was 2 years old when we purchased it in 2008. It was $6,000 less than the same vehicle new, and it had around 30,000 miles on it. For our purposes that 30,000 is meaningless; we'll keep it the same amount of time no matter what the mileage.

My 2006 Elantra was purchased in 2008 strictly as a commuter car and at a significant discount over new. It had (if I remember correctly) 65,000 on it when I purchased it, and it now has about 140,000. I'll keep it until it no longer makes financial sense.

 

[Tdbo]

Totally agree with what you said here and I tend to practice that philosophy on my primary vehicles.
Only variation on my roster is the pickup. Bought it used @ 5 years old w/56k (got a good deal) and use it as my utility vehicle.
Only thing that I would add is to buy last years model several months into the next years model run and aim for used book value as a target price.

 

[Claud]

Originally Posted By: M1Accord
My state requires bogus inspection so buying beaters and drive them to the ground is a risk I took once and lost dearly.


What do you mean by "bogus"?.
Do you mean you have required inspections you don't like that weed out worn out unroadworthy cars?
Or in your state there are authorised shysters that can legally rip you off?.

I've yet to pay more than $1k for a car, I buy old cars that someone no longer wants and keep it going until something major goes wrong, then junk it.
I have owned my current 1995 Nissan for four years now, I paid £200 for it (approx. $320), so far over 22k miles I have replaced a broken headlamp, wiper blades and a few blown bulbs. I have also flushed out the cooling system and replaced the coolant and serviced the car. I will need to replace some tires soon other than that it has cost zip in repairs and I would be happy to fill it with gas and drive it across Europe at five minutes notice. My neighbour bought a new Ford Focus about the same time I bought my Nissan, he also has had no issues with his car, but he paid £15k for his.

Claud.

 

[SwampSurvivor]

I like the buy as low end as possible and keep for as long as possible. The good news is, I will never have to wear out a vehicle ... they'll just rust out.

When I got my Focus, I tried to get the "S" model Focus, but there were none left. I did get the SE model , VERY well discounted, because they were selling 2012s at that point.

Around here, used cars aren't that good of a value. I *could* get a nice mid sized car for what I got the Focus new, but it would be 8 years old and starting to succomb to the rust. On top of rust issues, used cars just aren't cheap.

You will lose $20K in value buying a $40,000 car. .. you will NEVER lose $20K in value on a $12000 Nissan Versa.

 

[HTSS_TR]

New Honda and Toyota can be purchased for about the same as 1 year old used, at least it was in So Cal. 2-3 years old Toyota and Honda were only 10-15% less than new, I think buying new is a better choice in the case of Honda and Toyota.

 

[jaj]

The base model in a category of any brand will usually be the best deal on cost - they have the fewest things to go wrong and they depreciate the slowest.

 

[gfh77665]

Originally Posted By: hattaresguy

Used vehicles are a poor deal.


I bought a Ford Ranger, drove it for 4 years and 80,000 miles, and sold it for $200 more dollars than I paid for it.

 

[AcuraTL]

I bought my '06 Acura TL new and I'm very happy with the decision to buy new. I know it's been well taken care of since day one. It's never had a mechanical issue. I've never had to put money into it except for an alternator that I most likely caused. All I've had to do is put fuel in it and keep up with the maintenence for 125,000 miles. It's been paid off for 4 years and most people think it's a new car still. I can't imagine it not going well over 200k and 15 years.

 

[Mykl]

Buy as new as I can afford and keep it for at least 200k miles.

 

[MCompact]

As others have stated, it depends.

I bought the Club Sport new because it was a limited production model(less than 400) and I wanted to order one sans a hole in the roof. No plans for selling it. Ever.

I bought the Wrangler in 2002. It's also a keeper.

The X3 was a one owner CPO(purchased in 2005 for less than a loaded new Escape) which has since been commandeered by our son. At 159,000 miles he's moving to an E90 3er or Z4.

In 2007 the Mazdaspeed 3 was brand new- no used ones were available. I just wanted one. It now has 133,000 miles on it; I'm probably going to keep it a while longer- although the Abarth 500 has caught my eye...

The 2002 was an inadvertent eBay purchase. I made a low bid and ended up with it. It made for an interesting breakfast conversation: "Honey, did I mention that I bought another car last night?" All's well that ends well, however- my wife enjoys driving it as much as I do.

The 328i was another one owner CPO and once again, depreciation was my friend; I paid less than I would have for a top of the line Accord, Camry, or Fusion.

As for the future, once again- it depends...

 

[spasm3]

Originally Posted By: gfh77665
Originally Posted By: hattaresguy

Used vehicles are a poor deal.


I bought a Ford Ranger, drove it for 4 years and 80,000 miles, and sold it for $200 more dollars than I paid for it.

If you keep a good used car in good shape, currently you can sell it for what you paid for it 2 years later.

 

[KitaCam]

I used to buy 3-4yr old cars @ 50k miles...and keep them 'til repaircost/2 yrs was as much as a down payment on a newer used car...e.g. "traded up" from 9yr old 175k miles to 4yr old 55k...

...but technologically, to my mind, this century's cars' 100k is last century's 50k....so when the last 14yr old ride got totaled @ 195k I got a 7yr old/97k mile replacement and expect it to go 10-12 years, to 250k before it's time to trade...