Whaaaat? The seller typically knows within a couple of minutes if the buyer is trying to get something for nothing or the buyer is broke and just kicking tires. My wife and I have chosen not to buy a new vehicle since our last new one in 1995. We are blessed/fortunate enough to be able to write a check for any vehicle we desire but choose to not spend excessive $$$ on an object of diminishing value. My wife’s last few cars have been Lexus certified pre owned lease cars that we paid about 1/2 of the original MSRP for with a warranty, 3 free oil changes, free wash/detailing, valet pick ups etc. They have never given us any problems of any significance. Her 2013 ES350 was bought in 2016, currently has 82,000 miles and looks and runs like new. She typically drives her cars until they are around 10 years old then we rinse and repeat. All detailed history and service receipts go a long way when we sell her cars. Thankfully, at least for us, rational reality trumps emotional wants!
What is the value of being the original owner of a car?
- Thread starter PeterGreen
- Start date
You guys are proving my point! Used car buyers are looking for a deal and won't pay a premium for things like a 1 owner car. If you have two identical cars with one being a 1 owner and the other having 2 owners, are you going to pay $2,500 more for the one owner?
A quick look at ES350s, brand new they are going for $41k, used 3 year old with mileage in the 30k's are $33k. That's not near 1/2 and not enough of a savings from new to make it worth buying used (imo).
Of course things have changed since 2016.
I don't think it's fair to cherry pick and to use these really bizarre times to argue against a traditional economically sound point. I've owned a LOT of vehicles, mostly used, and the traditional wisdom is to buy a 5-10 year old well maintained documented and excellent condition used car because the savings are significant across the board.
BTW if you're having to finance a vehicle, you're going to pay about 30% premium on top of the price of the car, and that's on top of huge depreciation hits when buying new. Here's a real world example.
In 2003 I bought a brand new $30,000 vehicle, that I financed at around 4%. There were all manner of financing fees too. I was recently going back thru records. I paid around $5,000 on top of the vehicle in interest for the 4 years until I repaid the loan (early). That $30,000 vehicle cost me $35,000. Yet within a couple years it was depreciated to about $20,000. That is a $15,000 hit on a $30,000 purchase... That is the last new vehicle I bought because it was a financially stupid decision.
Under very limited circumstances should one buy a brand new vehicle. It's rarely economically smart, so only do it for special situations, or if you just have too much money and money has no value to you. Or if you require a very unique customized vehicle that is unavailable in the used market.
Used truck prices are pretty close to new truck prices even prior to the current craziness. Made more sense to buy a new truck with a full warranty instead of a 3-4 year old one. Just looking real quick, models that are a 2 model years older but otherwise identical are going for the same price I paid for my brand new one, like a 2017 with 43,009 miles on it. $10,000 in savings over a new one doesn’t hit till you’re looking at 4-5 model years older and nearing or over 100,000 miles.
The president of the company I work for is a millionaire several times over. Incredibly smart man, has dealt in billions of dollars in real estate throughout his career. I consider him to be a very smart man, and he buys certified pre-owned luxury cars. You won't catch him kicking tires on the new car lot, even though he could whip out his credit card for a new S-Class if he felt like it. He thinks it's insane to pay the depreciation. He may be right....he prefers to let some other sucker pay it for him.
And, again, we are in an unusual situation with massive shortages. While trucks do hold their value, clearly there is a reason people buy used trucks because traditionally there were good savings. I know, I've purchased several and there were significant savings over new trucks.
In 2017, a used pickup truck that was a few years old, comparable to a new one was 1/2 price.
Bingo. Also, not sure about now but some companies like Honda used to provide a BETTER 7-year warrant on a certified used car than they had on their new cars. So there was a period, maybe still is, where used cars were the better deal. Cheaper and a better warranty!
I started seriously looking for trucks in mid-2019 long before the current market and shortages, they wanted ridiculous prices for used ones even then. Bought my truck during all the “stay at home” orders for my state (late March/through April). There was a little more of a spread, but still not enough to justify buying a lower mileage used used one IMO.
Benefit to being original owner? If it is an EV plenty; YUGE tax break!
Dug through my paper work and found some numbers from 2016. My wife’s 2013 ES350 has the “ultra luxury package” which includes the glass roof, perforated leather heated and cooled seats front and rear, drivers seat power cushion extender, power rear sunshade, rear door window shade curtains, memory system for steering wheel, seats, mirrors, proximity lighting yadda,yadda. Base model price in 2013 was $36,620 with the ultra luxury package adding $11,180 and the total msrp being $47,800. I gave $26,000 for it in 2016 With 48,000 miles and almost $22,000 off msrp in 3 years so not quite half but still much less than msrp. I know the msrp isn’t set in stone but we still save a lot of $$$ by buying certified used IMO!
Sorry, but that is a very uneducated generalization. Or you are very misinformed.
A good friend of mine is a very successful business owner. He owns a few restaurants, a bakery that supplies upper scale restaurants, and a couple organic grain mills. He can buy any car he wants. And he does. He has bought quite a few premium used cars for he and his wife, but he also buys new cars when he plans on keeping them for some time. HIs wife likes Lexus GX and LX models. He bought his Audi RS7 new
But when his children are old enough to drive, he has bought each of them a rebuilt title car.
You can tell my his lifestyle that he does not fit into either of your criteria. He is far from a cheapskate, as he has many beautiful things and will pay what it takes to have others build and provide them. He absolutely has the money to spend. But he is also very smart. He understands that cars are not an investment, and have immediate depreciating value from the moment you take ownership. So he makes wise decisions.
Sounds like you need to meet him and learn a thing or two.
Market value and demand determine the price. There is no deduction or addition for the number of owners in any price guide I've seen like they have for mileage. Would you expect the seller of the 2 owner car to take off $2,500 just because of that? A 10 year old one owner car will sell quicker than one with 5 owners, but below a price point, most buyers don't even check.
Exactly and that's topic of this thread. Year, make, model and mileage basically determine the price of a used car. Condition factors in, but a pristine example of a mass produced common 2-3 year old car isn't going to bring a penny more than an average car that is similar. Everyone will try to price the pristine car as average. If a used car buyer of such a vehicle really wanted a pristine example, they'd pony up and buy the new one.
There are some unique vehicles that depreciate heavily and can make buying used worth it, but I've seen used cars on Carmax's website selling for more than a new one going as far back as the early 2010's.
Yes-there is not a category in the Blue Book for Adult Owned, All Maintenance receipts, Only driven to church on Sunday by my wife, etc.,and other nonsense those on here think adds value.
I would go further. 1. Number of owners is not indictive of condition or treatment. 2. More owners *might* increase the odds of maintenance being done. Many people, when getting a car, view it as an investment and bang out many maintenance items, like fluids, brakes, belts, plugs, etc. and put a few hundred dollars or more into their "new" car. So, really, it's not a set rule but it's also not an immediate turnoff.
False. Have you, like, actually ever bought a car before? lol.
There is a condition category that adds or subtracts value. And, there's a subjective view. A buyer will pay more for one in pristine condition but a lot less or nothing for one that's trashed...
I've found about a 20-30% benefit to being the second owner. I buy locally sourced trade ins with less than 50K miles, clean car fax, clean dipsticks and clean whatever I can see down the oil fill opening, no dirt, mud or black paint underneath, and PERFECT interiors. If somebody has taken the care to not spill coffee all over the carpet and not scratch up the plastic panels in the cargo area then they probably took the care to have it serviced on schedule too. It usually takes several months to find these unicorns but EVERY one has been as good as a new car at significant $$$ savings.
Buying older higher mileage stuff, 6 yrs/100k and beyond, has proven to just be a crapshoot.
There is value to buying a new car when the price difference between a new one and a 1 year old is very minor. Pickup trucks, Honda sedans, GM end of year fire sales etc.
Buying older higher mileage stuff, 6 yrs/100k and beyond, has proven to just be a crapshoot.
There is value to buying a new car when the price difference between a new one and a 1 year old is very minor. Pickup trucks, Honda sedans, GM end of year fire sales etc.
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I said pristine vs. average...I said nothing about trashed. And no, I've never bought a car before. /s
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