Car help- was totaled

[Anonymous]

My kid was an in accident and luckily is ok but car i s totaled and we need new one quickly for college. It was a 2022 and almost paid off.

I was planning to get a used or certified pre owned but the CPO are way too close in cost to new ones. Not to mention, the interest rate on new is around 1.9 or 2.9. So then a regular used can be possibly 4k cheaper but has no warranty or very little left.

Would it be crazy to not buy a warranty on a used NON. CPO car? We plan to keep the car for many years but it's going with my kid to college and they will be driving it long distances. So I need safety and not to worry. It's a Mazda.

Seems dumb to buy brand new but at the same time, I don't know if I have the wherewithal for a used and any issues. (As in it was rental to super high mileage, buying extended warranties or independent inspections). Worth noting: the model tie changing for 2026. J can get about 3k off MSRP but was going ot try for more.

Insurance hasn't told us settlement amount yet.

[Anonymous]

Sorry this is OP- so question is do I just buy new or used with higher mileage and forego warranty? Accident was not kids fault.

[Anonymous]

I wouldn’t buy a kid going off to college a new car especially if he’s already been in an accident. A car should be earned nof just given.

[Anonymous]

Your post is a little unclear.

CPO vehicles are indeed cherry-picked to be good vehicles. But at the dealer where I buy (who does a high volume of business), they will reduce the price by a couple hundred dollars and un-CPO the unit.

Mazda new vs. slightly used could be financially a good deal. I remember observing that situation with Honda long ago.

If Mazdas are not selling well, you may be able to shop around and find an even better model year closeout deal at another dealer.

Consider the trim level you are looking at. That can raise the price a lot.

[Anonymous]

Anonymous wrote:I wouldn’t buy a kid going off to college a new car especially if he’s already been in an accident. A car should be earned nof just given.

I would agree and so does the kid but the numbers aren't making sense is my point. He's a great driver and this accident wasn't his fault. So I guess my question is: is buying an old one with 30k + miles and no warranty smarter than just getting a new one? It's about 30k for used with 30k miles vs 33k for new which also has lower interest and full warranty. The totaled car was a 2022 w 35k miles. So upset.

[Anonymous]

I would buy used without an extended warranty Have you looked at private sale used?

[Anonymous]

Anonymous wrote:I would buy used without an extended warranty Have you looked at private sale used?

No only at dealers. Private sale makes me nervous and the interest rates are maybe 9-11% vs 2.9%
We drive our cars for a decade so I've only ever bought new bc of incentives and rates and used cars not being much cheaper unless super high miles.

[Anonymous]

OP here - this car also kept my kids safe in the highway accident so I am definitely buying her trans make and model.

[Anonymous]

if the car was totaled, the insurance company should be giving you the value. I am curious what model of car dropped that much in 3 years, that it is that much less than cost of paying cash or close to it for a new vehicle.

My 2021 $70k car is prob worth $25. I can easily buy a car close to that. Of course, not the exact model, but def a “lesser” car.

[jsteele]

Anonymous wrote:OP here - this car also kept my kids safe in the highway accident so I am definitely buying her trans make and model.

If there is only a $3k difference, the new one seems like a no brainer. Although, the new one will probably have a higher insurance cost.

[Anonymous]

Mazda cx5.

Paid about 31k in 2022

Don't know what insurance will try and give me now. We do not have that gap insurance. I'm hoping 23-25k

[Anonymous]

Get him a new car. All these uncertainties are not worth 3k. Are you sure he will need a car? Freshmen usually don’t bring cars in most cases.

[Anonymous]

Anonymous wrote:Get him a new car. All these uncertainties are not worth 3k. Are you sure he will need a car? Freshmen usually don’t bring cars in most cases.

Yes he's a sophomore. He does need one not urgently of course but will be helpful off campus and for job.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Get him a new car. All these uncertainties are not worth 3k. Are you sure he will need a car? Freshmen usually don’t bring cars in most cases.

Yes he's a sophomore. He does need one not urgently of course but will be helpful off campus and for job.

Then it seems like an easy call.

[Anonymous]

Anonymous wrote:if the car was totaled, the insurance company should be giving you the value. I am curious what model of car dropped that much in 3 years, that it is that much less than cost of paying cash or close to it for a new vehicle.

My 2021 $70k car is prob worth $25. I can easily buy a car close to that. Of course, not the exact model, but def a “lesser” car.

I had a CPO 2017 totaled with fewer than 30K miles. I had to pay $8K out of pocket to replace it with a 2022 with slightly more safety equipment.

I would prefer used for a new driver but I think it could be rational to just get new for $3K more.

I actually ran some math on my spending and on average a car costs me about $3-4K per year of life. Including parts and repair when old and high mileage. So paying $3K more for zero miles vs. 30K miles is acceptable. I've never purchased a new car more than $30K and have started buying CPO because of good deals. But those were under 20K miles and $8K or more less than new.