New car vs. used

[Anonymous]

DH and I are considering purchasing a new car, something we've yet to do (always had used so far). Despite the ultra fast depreciation in first few years, there's the warranty (and possible extended warranty) that appeal to us. We're careful people, and would treat the car well. Getting a 2010 (possibly sedan, maybe SUV ... still weighing pros/cons/what we need) is of interest, to hopefully snag a good deal, if one can still be had on this year's cars. I know it'll be highly variable, financial situation specific, etc, but are there any new car owners out there who perhaps regret their decision? Or, would you advocate going with the assurance/security of being the first-time owner?

[Anonymous]

I've had two new cars and one used car. I'm somewhat surprised with how happy I am with the used car. When we buy a used car, we buy "certified used", which means it is still under the original warranty and we can buy an extended warranty if we'd like. Another benefit of a used car is that the model has been around for a little while so you can find out if it is problematic.

Not sure if we'll ever buy a new car again. For the dollars, we can get a better built, safer, more reliable, nicer car if we buy used.

[Anonymous]

I know the rationale behind buying used - why pay that high price when the price drops as soon as you drive it off the lot. But I've never found quality used cars to be priced low enough to make it worth buying a used car. Even if certified, they are older and closer to the age where they start to break down more often.

I bought new twice. I buy reliable, but economical cars. We still have the first car I got - it is 13 or 14 years old. My theory is you buy new, take care of it, and drive it until it is no longer cost effective (the repair bills become more than a car payment).

Now, if you are people who will plan to change cars in a few years, I'd look at used or even leasing.

[Anonymous]

So much depends on the car and its resale value. We are a Honda family, and buy new because frankly, the cars' resale value is so high, that we wouldn't be saving that much money and we have the peace of mind of the new car.

[Anonymous]

Get a n-used car (less than 10,000 miles) from a dealer that offers extended warranty. Not only do you get the benefit of the orig. warranty, you get a few more years added to the coverage. The total price (including ext warranty) is still less than the price of a brand new car.

[Anonymous]

There's also the issue of whether you want to have all the latest bells and whistles. I just bought a new car, which I hope to drive for 8-10 years, so I knew I wanted a nav system, bluetooth, iPod hook-up, steering wheel controls, plus the usual pluses like heated seats and moonroof. Many models earlier than two years ago don't have bluetooth, iPod interface, and steering wheel controls. If you don't care, then a used car might work fine.

[Anonymous]

No regrets on my new Acura (now 5-years old). Great warranty and we got 7 years of basic maintenance for free on it, which helped sell us on it. Like the Honda driver, resale value was a factor for us.

[Anonymous]

A little about used cars- 1st I will only buy used

Most of the used cars you see on a lot at a good quality dealer, Car Max, Fitzgerald etc are bought at an auction. They are not traded in by the little old lady who only drove it on Sunday. Each Thursday they go to auctions -no not your city auciton, these auctions are for cars that are coming off leases, rental cars, fleet cars. They are good quality cars -rentals might be a bit worn but they make them look nice.

Get the VIN # before you buy it and run your own carfax.

We have a friend who goes to the aucitons and saved us a lot. We would have been perfectly happy buying it from a dealer but we had the friend.

[Anonymous]

I had always bought used and always had tons of problems. First, I was financing them, so I had both monthly payments PLUS repair costs, and that sucked. Second, even if I treated the car like gold, the previous owner may not have. I bought a two year old car once only to have it die -- the previous owner apparently "never" changed the oil. Not once.

So I've only bought new Hondas since then and run them into the ground (well, I keep them about 8-10 years). Never regretted it, and get a surprising amount for trade-ins.

The next vehicle I want is outside my price range new, so I'm seriously considering buying used in the manner people here describe (certified, etc.). But no, I've never regretted buying new. I do like having the latest safety gadgets too -- like side air bags, anti-lock breaks, vehicle stability assist, and TPMS (last car didn't have those). However, those are things that doing lots of research can help with.

[Anonymous]

I bought a new car and it was the first model year, and although I enjoyed it, I had a lot of repairs to do both in and after warranty.

[Anonymous]

If you're not one to put many miles on a car: used. If not, new.

We travel a lot and this was the main reason we got new. My brother bought their car used with 30k on it. Before they knew it the car had 100k on it, still should have felt "new to them, but was hitting bigger mechanical issues.

[Anonymous]

http://online.wsj.com/article/SB10001424052748704129204575506051919012596.html?mod=WSJ_hpp_sections_personalfinance

Article in the Wall Street Journal on saving money.\

Regarding cars the advice is:
Rethink the two cars. Are you leasing them? How much are they costing you a month? This is one of the biggest ways middle class families blow their cash. I can't believe the number of people who think these moving white elephants are a status symbol. When I see an expensive car go by, all it tells me is that the owner is (a) insecure and (b) has no sense. These days you can get a decent set of wheels for a lot less than $10,000. Buy used. Pay cash. Run it till it dies.

[Anonymous]

I think NPR did a thing recently about how right now it's hard to find good deals on used cars, because the economy has caused more people to buy new instead of new. Something to think about.

[Anonymous]

I'd never had a new car in my life, so when it came time to buy my current car (2003), I bought a new one. I was considering a used Volvo S60 or Acura TL, but the acura TSX had just come out (that month!) and it had all the features I wanted, was within my price range, was smaller than the TL and cheaper than a used one, and it was available that day in the color i wanted. So I took the plunge.

I drive my cars about 10 years, 10-12K miles a year, and figured that over ten years, the extra cost of buying new would not be that much. I haven't regretted the decision. I still like my car, paid it off a couple years ago, and hope to drive it till my daughter's in public school, about 4 more years. My only regret was that I didn't really have any bargaining power because it was a hot new car. I suck at bargaining anyway. Either way, I probably overpaid by a couple thousand. oh well.

Before that I bought a used car and that was fine too. I kept it about 7 years and then traded it in.

[Anonymous]

Hi everyone, OP here, thanks for this great discussion ... There certainly are pros/cons for both sides of the question. Likely if we buy new, we will pay in cash ... So, that is a big expenditure all at once (but we are prepared for this possibility). We've had great success with one used car, though a more recent purchase has caused us lots of trouble. (Both were private sales, so maybe the certified route through a dealer is a good idea.)