Buy a new or used car?

[Parks 788]

Not sure the OP age or economic situation but here is my take on this topic. I'm 47 years old, have a great job that pays well with a smokin' hot wife that makes more money than I do, already maxing out our retirement and have little other debt. I deserve to purchase a new vehicle rather than a used one. Last new one I bought was my 2015 Ram Mega Cab. I could sell it for darn near what I paid for it. Had I bought something 3-5 years old in 2015 the truck would probably be worth mid/low $20Ks. That being said, my son will be getting a used truck for his first vehicle. He can earn himself a new truck after college.

 

[Legend]

I've been cursed on used car deals and blessed in life. I just drive new now.

 

[SlugSlinger]

I bought a new Tacoma in 2012 at a fairly good discount out of Colorado Springs. Excluding everything but my purchase price less my selling price, I paid $5,000 to drive it 5 years and 80,000 miles.

This is one reason why I have started to buy new instead of used. There is also the warranty, lower interest rates if you finance and you know 100% of the history.

 

[filbert]

Get used if you can, better price and same car. Don't go too a dealer. Look for about 3 or 4 year old, low miles, one owner.

 

[filbert]

I bought a new Tacoma in 2012 at a fairly good discount out of Colorado Springs. Excluding everything but my purchase price less my selling price, I paid $5,000 to drive it 5 years and 80,000 miles.

This is one reason why I have started to buy new instead of used. There is also the warranty, lower interest rates if you finance and you know 100% of the history.

Somebody paid you to much, happens all the time, people don't know how to buy used. That doesn't happen most of the time.

 

[SlugSlinger]

Somebody paid you to much, happens all the time, people don't know how to buy used. That doesn't happen most of the time.

With the internet you can find the right buyer if you are patient. Also like mentioned earlier Tacomas hold the resale value better than most vehicles. Especially the TRD Offroad package. It happens all the time on the right Tacoma and other vehicles like diesels. You just have to know what to buy that holds the resale value.

It’s just basic supply and demand economics.

 

[tRidiot]

I agree, if it's something you can easily afford, you're not stretching your budget and making the rest of your finances difficult in order to drive a brand spanking new vehicle, and that's something you want to spend the money on, good for you. You're in a better place (financially) than I am! lol

Personally, I have gotten to the place where I am really questioning what some of these monthly payments and such would cost me. Not in terms of cash, in terms of things I can do... with my family. My wife drives an 11-year old smaller SUV that has mechanically been VERY sound for us. I have 2 vehicles, one is a 15-year old Tahoe that has been pretty good mechanically - I have spent a lot on it from an electrical standpoint because of some of my hobbies, lol - and a 9-year old sports car that has mechanically been spectacular. I'm over 250k on my Tahoe, which is my daily driver, my 370Z is driven maybe a couple times a week. All of our vehicles are paid off.

But, if I sold all of those and got us 2 new (or newer) SUVs, we'd be paying $1000-1500 a month in payment (at least, I'd guess) and increased insurance cost. This would severely cut into our budget for doing family things and extras - like donating to charity causes, going to the theater regularly, taking my family to Italy in Nov, and helping pay for my office manager to go on a trip to the Holy Land. I don't want to give those things up, and my old(er) vehicles are getting the job done for me, as of now. They don't look as nice, they have a few niggly things wrong, but they overall are pretty good. I'd really really like to have a brand new, or nearly new vehicle - but damned if I'm paying for that. lol

So, to each their own, but that is my personal rationale.

 

[nich018]

I drove used cars all my life. In 1996 got my first new truck. Been buying new vehicles for my wife and I every since. Not worried about depreciation, we drive them for 10+ years or more.
Carfax is a BS scam and worthless imo. After every flood and hurricane, flooded cars and trucks make their way into the mkt also. My 2 cents

 

[Dave70968]

I bought a new Tacoma in 2012 at a fairly good discount out of Colorado Springs. Excluding everything but my purchase price less my selling price, I paid $5,000 to drive it 5 years and 80,000 miles.

This is one reason why I have started to buy new instead of used. There is also the warranty, lower interest rates if you finance and you know 100% of the history.

You're excluding some very important things: increased insurance cost, opportunity cost (what else could you have done with the money while it was tied up in the vehicle/what investments did you forego), etc.

 

[SlugSlinger]

You're excluding some very important things: increased insurance cost, opportunity cost (what else could you have done with the money while it was tied up in the vehicle/what investments did you forego), etc.

Yes, I intentionally excluded the other variables. I also excluded free maintenance for 36,000 miles under Toyotacare. I excluded borrowing interest free, using other’s money and investing my lump sum cash in my company’s espp. I didn’t want to cloud the air with dollars that might not come in to play with other’s decision making. So was investing an actual opportunity cost? Nope, it was as a benefit, it’s a minimum return of 15%.