Buying a used car in 2024 is stupid

[Anonymous]

Don't know why anyone would buy a used car, the only cars that depreciate a lot now are the ones with really bad issues/high maintenance like Range Rovers. The cars with good reliability and cheap upkeep barely depreciate. Want a 7 year old used Toyota RAV4 with 100k+ miles? That'll be $20,000. For only 50% more you can get the same car brand new with a lot more life left in it before big repairs start coming due.

The only people who buy used cars are those who cannot afford new, it's no longer the people who have high incomes but are frugal.

[Anonymous]

Agree, we tried to get a used one but the price difference with the miles and no warranty were not worth it.

[Anonymous]

This is what people told us last year and we got a 2020 Subaru Outback with 18k miles and luxury finishes for 30k. New it would have been 40k. Only one owner. That's worth it to me.

You have to be willing to wait and ship to find the low mileage cars, and pounce when they come available. But they do exist.

Also, we don't have daily car commutes so our cars stay low mileage. Had our last car 13 years and only hit 70k. So we don't mind going with a slightly higher mileage used vehicle, knowing we won't be piling on miles very quickly. For me the key is reputable dealer and getting a car with a few years left on major warranties so if there are major issues you don't get screwed.

I still think used is the way to go unless dealers are offering some special incentives to buy used. Like our last car was new, but we got it with a 0% loan that allowed us to pay for it over 5 years with no interest. Since we generally pay cash for our cars, that was worth paying more for a new vehicle. But you won't see a deal like that now.

[Anonymous]

I agree. It was the same in 2018 when I bought my car too. Used Honda odysseys had really suffered abuse and so many smelled like hot Cheetos inside (vomit basically). New vs used was like a 5k difference.

I figured it was had something to do with car loans or financing? I’ve never figured out why used are so expensive.

[Anonymous]

Agree. We bought our 16 year old a new car. I never thought we’d consider this but it didn’t cost much more than a used car so we figured we may as well buy new/

[Anonymous]

I started my car buying journey thinking i was going to get used by ended up getting new for only 10k more. It's crazy. For me it's the basic maintenence. With a new car i know the oil is getting changed

[Anonymous]

I was wondering how the used car market is this year! Still crazy I guess. I’ve gotten two random offers on my old car.

[Anonymous]

Buying any car except with cash right is stupid, the feds needs to cut the rates down which they are late doing

[Anonymous]

Oh man. This is just making me hope we can keep our used car limping along until this gets better. I have no interest in paying 20k or more for ANY car.

[Anonymous]

Anonymous wrote:This is what people told us last year and we got a 2020 Subaru Outback with 18k miles and luxury finishes for 30k. New it would have been 40k. Only one owner. That's worth it to me.

You have to be willing to wait and ship to find the low mileage cars, and pounce when they come available. But they do exist.

Also, we don't have daily car commutes so our cars stay low mileage. Had our last car 13 years and only hit 70k. So we don't mind going with a slightly higher mileage used vehicle, knowing we won't be piling on miles very quickly. For me the key is reputable dealer and getting a car with a few years left on major warranties so if there are major issues you don't get screwed.

I still think used is the way to go unless dealers are offering some special incentives to buy used. Like our last car was new, but we got it with a 0% loan that allowed us to pay for it over 5 years with no interest. Since we generally pay cash for our cars, that was worth paying more for a new vehicle. But you won't see a deal like that now.

This. I’ve been looking for over a month. Literally saw a Lexus come on the market two days ago and went to the dealership the day after it was advertised. They didn’t even have pics up yet. I was the first person to drive it and it had just come out of detailing. Bought it that day. Three years old and 40k miles. Certified, no accidents and pristine condition. 30K. Fully loaded and also dealer included two years of scheduled maintenance and extended the bumper to bumper warranty. New it would have been at least 20k more. You just have to be patient and watch the market and pounce like PP said

[Anonymous]

Oh, this is interesting. This is a completely new mentality than the one that was pounded into our heads our entire lives. We have always been told not to buy new cars.

[Anonymous]

Anonymous wrote:Don't know why anyone would buy a used car, the only cars that depreciate a lot now are the ones with really bad issues/high maintenance like Range Rovers. The cars with good reliability and cheap upkeep barely depreciate. Want a 7 year old used Toyota RAV4 with 100k+ miles? That'll be $20,000. For only 50% more you can get the same car brand new with a lot more life left in it before big repairs start coming due.

The only people who buy used cars are those who cannot afford new, it's no longer the people who have high incomes but are frugal.

This has been my thought too. However, I'm monitoring a used Telsa Model Y. New around $52K vs. 2021 w/ <40K miles for around $35K. I can't get the rebate so it's making me reconsider.

[Anonymous]

Anonymous wrote:Oh, this is interesting. This is a completely new mentality than the one that was pounded into our heads our entire lives. We have always been told not to buy new cars.

Yes, it turns the old advice on its head. But it is what it is.

Interest rates are high and folks who can't pay cash need to get the lowest principal amount possible when financing. This elevates pressure on the used car market and narrows the gap between used and new car prices.

The people who have to buy a used car would love to be getting a new car for only $8K more in principal. But they literally can't afford the monthly payment at these interest rates.

[Anonymous]

Anonymous wrote:Don't know why anyone would buy a used car, the only cars that depreciate a lot now are the ones with really bad issues/high maintenance like Range Rovers. The cars with good reliability and cheap upkeep barely depreciate. Want a 7 year old used Toyota RAV4 with 100k+ miles? That'll be $20,000. For only 50% more you can get the same car brand new with a lot more life left in it before big repairs start coming due.

The only people who buy used cars are those who cannot afford new, it's no longer the people who have high incomes but are frugal.

We're in camp frugal, have always bought low mileage barely used cars in cash like PP.

The only new car we've purchased (talked into because it was only a couple grand more than the used ones we were considering) is also the only car that's had to go back to the dealer for problems multiple times in the first year.

[Anonymous]

Anonymous wrote:Oh, this is interesting. This is a completely new mentality than the one that was pounded into our heads our entire lives. We have always been told not to buy new cars.

Here's a good thought exercise.

A family in Maryland needs a new minivan, they have $10K for a downpayment. They want a nicer trimline, because they've been suffering with a crappy old SUV for the last 7 years.

In 2019, they could get a $40K minivan at 1% interest for 60 months. Their monthly payment (including all taxes and fees) would be $512.81

In 2024? They need a minivan and have to keep the monthly payment under $525. The interest rates are now 8% for 60 months, even with their $10K downpayment. The max they can afford to spend is $35K to keep their payment affordable under $525K. But the new minivans with a nicer trimline are still over $40K.

What to do? Either (1) get the bare bones trimline (and likely sit on a waitlist for that since car makers are prioritizing pricer trimlines for manufacturing) or (2) let's look for a used van, with under 40K miles. Going with option (2) puts you squarely in the $34K-38K price range depending on the mileage. And that's what you can afford.

If you had another $10K in cash, you could get a brand new $45K car and afford the financing. But you can't and you're stuck paying elevated prices for a used minivan with 40K miles.