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new car vs used car

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new car vs used car

Old 08-30-05, 03:03 AM
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new car vs used car

I've been in the market for a car and i've thought about it many times. If i should get a new car or a used car. I need it to travel to work and school. My budget is under 20, more like 17-18. I've thought about a new mazda3 or civic ex. Now a friend, who was leasing a acura TL, has to return it to the dealer, but i can buy it for around 15-16. Its really nice, but its a 2002 and has 45K miles. I like the idea of new but a good used car also favors nice with me. I just don't want to deal with repairs or major work. What other cars in my range should i concider? Any thoughts?
Old 08-30-05, 03:32 AM
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I would buy a used car. I've bought one new car in my life, and I don't know if I would do it again. At least not until I can afford to lose the money on it. I don't know about a leased or rented car, that seems like just asking for trouble. I know how most people drive cars that aren't technically theirs, and it's not very nice.

If you need a commuter car, buy a used one. It won't piss you off as much when it gets dinged or slides into a curb during winter. If you want something that you are going to keep a long time and keep really nice, buy new.
Old 08-30-05, 04:50 AM
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A used car is a better deal if you have a fixed budget to work with. A new car is nice for piece of mind, but it depreciates very rapidly and isn't really worth the money. Still nice to have though.
Old 08-30-05, 05:37 AM
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I'm of the mind buy a cheap used car and stick the rest (savings) into stocks and bonds. Your retirement will thank you.
Old 08-30-05, 07:25 AM
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I always buy one year used, that is where the biggest price drop is and if you are lucky they will not have a lot millage on them.
Old 08-30-05, 07:28 AM
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I am driving my first new car ever right now, which I purchased about a year and a half ago. Been there, done that. I think I am going to stick with lightly used again from now on.

Additionally, I really, really miss my old 1994 Ford Bronco and I wish I never sold it. I think I'll buy another one (which would cost almost nothing) and get a more practical 1-2 year-old used car.
Old 08-30-05, 07:34 AM
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IMHO it's worth the extra money for a new car (or maybe last year's models they are trying to dump when the new year comes out). I've usually had nothing but trouble w/ the used cars I've picked up and before long I'm dumping almost as much money into them as a new car payment would be. Probably just my luck though...
Old 08-30-05, 08:01 AM
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get the civic instead of the acura

the warranty is peace of mind that in case something happens the dealer will fix it. civic's don't depreciate as bad as GM's and keep their value pretty good. anyone complaining about depreciation usually does it because they own a GM, Chrysler or Ford.
Old 08-30-05, 08:06 AM
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I always buy used cars three to four years old and keep them for 10 years. Works for me. I just wait to find one that has a little less mileage than other cars in the same category.
Old 08-30-05, 08:17 AM
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Used cars all the way. The only caveat is that you buy a very good used car, that is, don't buy a 3 or 4 year old American car. (Unlerss it's a Jeep). You're just asking for trouble. My car is $40,000+ new and I got it for $15,000 used when it had 80,000 miles. I'm at 150,000 and I still have another couple of years life left in it. Sure beats having a Civic. *


* Previous car.
Old 08-30-05, 08:24 AM
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Unlerss it's a Jeep
Just goes to show everyone's got a different story. The most problems I've ever had w/ a car was a used Jeep. 5 year old Wrangler (I think it was don't really recall off hand now) w/ 27k miles on it. Within the first year it was in the shop 3 times for repairs of over $800/ea. Fortunately the warranty covered part of it but after the 3rd time I drove it straight from the garage to the dealership and traded it in on a new car. I know they depreciate fast but frankly I don't think I'm ever going back to buying used again.
Old 08-30-05, 08:34 AM
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NEW, I would look at a new Accord LX or a Hyundai Sonata. The warranty on the Hyundai's are great..

Do a KBB on that Acura. That price seems high..
Old 08-30-05, 08:41 AM
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Originally Posted by al_bundy
get the civic instead of the acura
Or a TopBunk
Old 08-30-05, 08:50 AM
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I've only owned 2 cars since I started driving -- one new, one used. I put about 115k miles on the new one, and about 20-30k on the used one. The used one went to the shop a LOT more, but only because I later found out it was a quasi-American car.

That being said, I think your parking situation should be the real focus on if you should buy new or used. If you're from NY (as your name implies), I'd go with used -- nothing like getting your car beat up day in and day out. I'd cry if I bought a brand new car and it started getting beat up on the streets of Chicago daily.
Old 08-30-05, 10:18 AM
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I'm of the mind that I'm not buying a car for investment reasons so I take that out of the discussion. I've bought new and used and I prefer new just because of the warranty situation. I'm also much more comfortable going in and negotiating a new car price then a used car price.
Old 08-30-05, 10:30 AM
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I chose used for one main reason,

-I have read three or four articles with the dealerships are busting at the seams with used cars. All this "employee purchase" on new cars has set record sales. But a lot of people are trading in their old cars and in many cases, these are a better deal.

If having a warranty is a big deal to you, just buy an extended on. Most dealers offer them or save money and see if you insurance company offers them or talk to friends/family. A buddy of mine alway bought the extended warranty. He liked the piece of mind. Never turned in a claim, then like 5 years after he started buying the warranty, his transmission went out. The warranty company replaced the entire transimission which almost paid for the prior 5 years of payments to the warrant. But keep in mind a warranty is for piece of mind, the idea is if you never do turn in a claim you did not throw your money away.
Old 08-30-05, 10:34 AM
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I vote Used.

First reason is buying a new car is the worst investment you can make. Second and in this case you know who owned the Acura. You know what has been done, how it was driven, the kind of care that was taken with the car, etc.
Old 08-30-05, 10:56 AM
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I buy used. Let someone else take the depreciation hit from the first three years. Then I can afford a car that would have been well out of my price range when new.

I don't like to buy from dealers, but from private parties. Most individuals aren't as skilled at scamming you as a dealer. It bothers me when I'm talking to a scammer, and can tell there's a scam going on, but can't put my finger on it. I tend to get that feeling when I talk to used-car salesmen.
Old 08-30-05, 11:38 AM
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Used or New is a personal decision that only you can make

Either way, buying a car is a money loser. Some just lose more money than others (in general new cars lose more than used).

Another thing to look at in buying an Acrua used compared to buying a Honda new.

The Acura is a luxury car, the Honda is not. EVERYTHING you do to maintain the Acrua (Tires, Brakes, etc, etc) will cost more to do than to the Honda. It will most likely also consume more gas. If you can only afford an $18,000 car, then you most likely can only afford to maintain an $18,000 car and not a $40,000 one.

Think of the cost of a car as the cost of total ownership =

Car initial price + taxes + insurance + maintenance/upkeep (parts and labor) + gas

You can see the price you pay to get the car is only one piece of the puzzle.

One way to look at the cost of a car is in terms of cost per mile. edmunds.com does a fairly good job of calculating what the car might actually cost you for every mile you drive. They break it down in the "True Cost to Own" section on each vehicle.

They use a 5-year estimate, based on 15,000 miles per year. The Acura TL comes out 57 cents per mile. The civic EX comes out to 36 cents per mile.

I am not sure what $ value they are using to estimate fuel, but that $ value will continue to rise

Of course buying used or keeping the car much longer than 5 years changes this
Old 08-30-05, 11:55 AM
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A car is not an investment and the decision to buy one depends a lot on your personal situation. A lot of people prefer to buy a used car because of the cost savings. I prefer to buy new cars because of the peace of mind. I have plenty of money in retirement, and I cut corners on a lot of other things, but having had used cars and having had new cars, a few extra grand for a new one is well worth it for me.

I don't usually follow the "You can't take it with you" mind set, but if you have the other parts of your financial life in order, a new car is awfully nice.
Old 08-30-05, 12:02 PM
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Originally Posted by kvrdave
A car is not an investment and the decision to buy one depends a lot on your personal situation. A lot of people prefer to buy a used car because of the cost savings. I prefer to buy new cars because of the peace of mind. I have plenty of money in retirement, and I cut corners on a lot of other things, but having had used cars and having had new cars, a few extra grand for a new one is well worth it for me.

I don't usually follow the "You can't take it with you" mind set, but if you have the other parts of your financial life in order, a new car is awfully nice.
But that is just it, you can get a year old car (1 owner/dealer) with under 10k miles and save big, still have some piece of mind, and have a basically new car.
Old 08-30-05, 12:09 PM
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Originally Posted by kvrdave
A car is not an investment and the decision to buy one depends a lot on your personal situation. A lot of people prefer to buy a used car because of the cost savings. I prefer to buy new cars because of the peace of mind.


Exactly.

You are buying a car for one main reason: to get from point a to point b is the most important. You may have other reasons like looking good, showing off, etc. But you are getting a car mainly to take you somewhere. You are not going to make money off of a car that you will be using every day. A car is going to depreciate.

In my experiences, buying new is the only way to go. The first couple of cars you own should be used, but after that there is no reason, in my mind, to not buy new. It is worth it knowing that you should be free of worries for the next few years (atleast). Any used car I have bought always seems to have problems within a year or so. Also, from talking to a number of people that lease cars they never seem to take care of them. A coworker of mine never changes the oil or does anything on their leased cars. They don't care because it won't be their problem in 36 months or whatever.

I am now on my second new car, I just bought it a month or so ago. Before that my car lasted me a good 8 years until it got to the point where I would need to start dumping money into it. Before that car I had only used cars and they wouldn't last me that long at all.

Edited to add:
I just don't trust people. Even if someone owns a car for only a year and trades it in you have no idea what that persons has put that car through. Majority of people just don't care knowing that they will eventually dump the car on someone else and it will become their problem.

Last edited by fnordboy; 08-30-05 at 12:11 PM.
Old 08-30-05, 12:27 PM
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Originally Posted by Michael Corvin
But that is just it, you can get a year old car (1 owner/dealer) with under 10k miles and save big, still have some piece of mind, and have a basically new car.
Meh, I would be wondering, "Did they get rid of a 1 year old car with 10k miles because they are the type that need a new car every year, or because it had given them a bunch of problems?"

In the end, I would pay the extra few grand for new. If I were buying Lincoln Towncars, etc. I would buy used, but a new Honda, Toyota, etc. isn't going to depreciate enough (compared to others) to keep me from buying new.

Looking at a Certified Used Honda Accord EX V6 on Edmunds, I get a price of $24,967. A new 2005 EX V6 has a list price of $26,850. Assuming that you can deal down on both, you are still only talking $2,000 and you are talking about a 1 year old car with mileage already on it.. Assuming you can find a used one from a private owner (2004 EX V6, silver, 10,000 miles in outstanding condition from edmunds.com), you will still pay $21,560 or $23,340 from a car dealer (not certified, like above). Assuming that you still have to drive something, and that all things being equal, the 1 year newer care will last 1 year longer, etc. you can put an arbitrary figure on the first year of ownership of around $2,500 which would be equivelent to having a payment of $208 a month. So even buying from a private owner, I would only be paying less than $3,000 more to have absolutely brand new, no miles, full warranty. I gotta' say that I would still prefer that.
Old 08-30-05, 12:39 PM
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A friend of mine went shopping for a new or used car just last week. She found a Jeep Liberty 2 or 3 years old and was trying to get that. Her credit sucks so luckily the deal fell through. She ended up going to a Jeep dealership and got a brand new 2005 Liberty for only 2k more than the used car would have cost her.
Old 08-30-05, 12:43 PM
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Originally Posted by fnordboy
A friend of mine went shopping for a new or used car just last week. She found a Jeep Liberty 2 or 3 years old and was trying to get that. Her credit sucks so luckily the deal fell through. She ended up going to a Jeep dealership and got a brand new 2005 Liberty for only 2k more than the used car would have cost her.
She obviously wasn't getting a very good deal on the used one.

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