Buying a used car in 2024 is stupid

[Anonymous]

In 2022, I bought a preowned 2021 Jeep Cherokee Lux with only 3,000 miles for 20k cash. I guess it was a good deal. Perfect condition and I love it. Previous owner used it as a vacation home car. According to Gabe at Jeep, they gained a bit of weight and it was “too tight.”

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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 is a very affluent attitude.

For many, likely more than half the country, the $10K difference might as well be $100K because they don't have an extra $10K or can't afford to spend the extra per month on their car payment.

Yeah that was my point, it’s no longer savvy to buy a used car. It’s now only the folks with no other options, or the old people who haven’t been keeping up and doing research on the market.

But there’s a lot to be said for not borrowing money, especially at a higher rate of interest.

We pay cash for used cars. The last one we bought was going to be junked and we paid our neighbor just a few hundred for it. It cost a bunch to fix up but it’s in pretty good shape.

Of course what makes all this possible for us is that we don’t drive very far at all. That’s a savvy move, but one that is more difficult as housing gets more out of reach. We bought at the end of the last financial crisis over 10 years ago.

[FPYCparent]

Purchased my last two vehicles (both were very low-mileage ... sub-30K ... and over 4 years old) via cargurus.com. Paid in cash. If you can avoid financing, this is a/the way.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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 is a very affluent attitude.

For many, likely more than half the country, the $10K difference might as well be $100K because they don't have an extra $10K or can't afford to spend the extra per month on their car payment.

Yeah that was my point, it’s no longer savvy to buy a used car. It’s now only the folks with no other options, or the old people who haven’t been keeping up and doing research on the market.

But there’s a lot to be said for not borrowing money, especially at a higher rate of interest.

We pay cash for used cars. The last one we bought was going to be junked and we paid our neighbor just a few hundred for it. It cost a bunch to fix up but it’s in pretty good shape.

Of course what makes all this possible for us is that we don’t drive very far at all. That’s a savvy move, but one that is more difficult as housing gets more out of reach. We bought at the end of the last financial crisis over 10 years ago.

What makes that possible for you is that you are either willing to drive clunkers or you are well-off enough to have tens of thousands of dollars saved up for a vehicle. The difference in cost between a reliable used car with good life left in it and new is not anywhere near what it used to be, and you tend to get better dealer incentives and rates with new. Someone who cannot afford to pay cash for a $45,000 (average new car price) new car is also unlikely to have $38,000 (average used car price) in the bank. I have hit the point in my life where I am no longer willing to drive a 10-year-old car with 100K miles on it and manual roll-up windows like I was when I was a kid paying three summer's worth of savings for my first car.

[Anonymous]

Sample size of one: Bought a '17 Lexus GX (for DW) in May 2023 for $36K. Had 50,000 miles. Comparable new 2023 was mid $60s. We service regularly and plan to get at least another 200,00 miles out of it, like we are doing with the 1996 4Runner it replaced, which I now drive at 357,000 miles. 4Runner is not a beater, no damage or rust or rattles or squeaks, keep up with the maintenance and your drive your major repair bills to almost nil.

Vehicle manufacturers vary in quality more than the used car prices suggest. Used BMWs and Audis seem cheap, but never are, and will not be lasting you for 20+ years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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 is a very affluent attitude.

For many, likely more than half the country, the $10K difference might as well be $100K because they don't have an extra $10K or can't afford to spend the extra per month on their car payment.

Yeah that was my point, it’s no longer savvy to buy a used car. It’s now only the folks with no other options, or the old people who haven’t been keeping up and doing research on the market.

But there’s a lot to be said for not borrowing money, especially at a higher rate of interest.

We pay cash for used cars. The last one we bought was going to be junked and we paid our neighbor just a few hundred for it. It cost a bunch to fix up but it’s in pretty good shape.

Of course what makes all this possible for us is that we don’t drive very far at all. That’s a savvy move, but one that is more difficult as housing gets more out of reach. We bought at the end of the last financial crisis over 10 years ago.

What makes that possible for you is that you are either willing to drive clunkers or you are well-off enough to have tens of thousands of dollars saved up for a vehicle. The difference in cost between a reliable used car with good life left in it and new is not anywhere near what it used to be, and you tend to get better dealer incentives and rates with new. Someone who cannot afford to pay cash for a $45,000 (average new car price) new car is also unlikely to have $38,000 (average used car price) in the bank. I have hit the point in my life where I am no longer willing to drive a 10-year-old car with 100K miles on it and manual roll-up windows like I was when I was a kid paying three summer's worth of savings for my first car.

I don't have this problem because I prefer smaller vehicles. So I'm never looking at the average-cost vehicle, because that average cost is dragged up by the 60-70k SUVs and minivans. There are lots of sedans and hatch backs available for less than 30k used, even late model with low mileage. If you trade in when you buy, you can get that cost down to 20-25k. It is not unreasonable for a middle class, employed adult to be able to spend that amount ever 10 years or so-- that's only around 2k a year in savings to pay for your primary means of transportation.

[Anonymous]

I wonder if these weird attitudes about cars are a East Coast thing?

I grew up out west and you had to have a car. There is not enough public transportation in most places to live without one, or it extremely limiting. I went through one year of college without a car and it was okay because I lived on campus. After that, I had to have a car.

As a result, lots of people drive practical used cars. No one considers them "clunkers." The weather and terrain (I lived in the mountains and the dessert at various times) mean you need a reliable car. Stuff is spread out, you can't risk your car breaking down driving between "neighboring" towns which might be 40 minutes apart.

Since moving to DC, sometimes I encounter people who say they can't afford a car, or that there are "no cars" at their price point. It is very confusing because the people saying this include associates at Big Law firms, people who own 800k row houses, etc. People with money. I think really what it is, is that they can get around without a car and therefore care about the status symbol aspect more, which means they are only looking at certain types of cars, which are more expensive and might be harder to find used.

Anyway, almost anyone can afford a car, but used is definitely the way to go for the vast majority of people. If you are focused on getting a car that conveys success or luxury, you'll have to pay more no matter what. But that's separate from whether or not you can afford a car.

[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 is not new. This has always been the case. Cheap and reliable cars like Toyotas and Hondas were never the better deals as used cars because they don’t depreciate a lot.
Luxury cars depreciate quickly during the first 3-4 years. This is still true today and you can find many certified preowned deals that are better options than buying new.

[Anonymous]

I won’t buy new again because of the personal taxes in VA! Just bought a fully loaded 2021 Lexus 20K miles (lease turn in) for almost half the original price.

[Anonymous]

Anonymous wrote:The used car market is predatory. The new car market is bad enough, but I wouldn't buy a used car from a dealer (with a few exceptions, maybe Tesla or polestar).

We hold onto our cars until they won't budge from the driveway because we hate buying cars that much.

[Anonymous]

We're looking and definitely buying used: it's for local driving and buying what I want used is 15k as opposed to 25k+ for models/makes I don't like as much, or 35k for the model I actually like. It's a huge difference! I can pay 15k cash very happily.

[Anonymous]

No, buying new is for people with more money than calculators. There may be certain in-demand cars that are as expensive as new because of supply/demand. But if you’re buying those new (likely going above MSRP) or used (priced close to MSRP), you’re burning money either way.