WaPo -- New cars out of reach for many

[Anonymous]

Anonymous wrote:

Anonymous wrote:Some car don’t depreciate that quickly or it’s hard to find good quality use ones. Unless I know the previous owner/car history I am hesitant to buy anything more than two years old used now.

For example People that buy Subarus tend to hang on to them for a long time. In the past their have typically been few good used options.

There is no need to limit yourself to 2 year old cars for that reason. Many manufacturers offer an extended for warranty for their used cars.

Read those extended warranty plans carefully.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People who buy new cars are either rich or bad with money. Sometimes both.

This used to be true, but cars last a lot longer now and these days buying used is not always a better deal.

+1

I've never purchased a new car, but right now my choice is:

(a) New 3 row SUV in mid-range trim for ~45K.

(b) Same car 2 years used for ~$36K.

I typically keep cars for approximately 8 years, would extend to 10 with a new car.

Looks like pretty much a wash to me:

Used: $36K/8 years = $4,500 per year ownership cost
New: $45K/10 years = $4,500 per year ownership cost

I assume residual value after ownership would be roughly a wash.

And with a new car, you know what you are getting. I always question why someone would be selling an originally $45K car after 2 years? Whats wrong with it? IMO much better to buy new and have the full warranty.

You know what you're getting all right...ripped off. There is nothing wrong with buying a new car, but anyone somewhat knowledgable about cars can get a much better deal on a used car purchased from a private party. I've bought 3-5 year old Corollas and Camrys at a cost of approx 50% of retail. Most bit the dust around 300-350k miles. This was several years ago, so maybe things have changed since the pandemic and all of the supply chain issues.

I encourage you to shop around online and see if you can still get 3-5 yo Corollas and Camrys at 50% of the new retail price. I think you'll find that's harder than it used to be.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:People who buy new cars are either rich or bad with money. Sometimes both.

This used to be true, but cars last a lot longer now and these days buying used is not always a better deal.

+1

I've never purchased a new car, but right now my choice is:

(a) New 3 row SUV in mid-range trim for ~45K.

(b) Same car 2 years used for ~$36K.

I typically keep cars for approximately 8 years, would extend to 10 with a new car.

Looks like pretty much a wash to me:

Used: $36K/8 years = $4,500 per year ownership cost
New: $45K/10 years = $4,500 per year ownership cost

I assume residual value after ownership would be roughly a wash.

And with a new car, you know what you are getting. I always question why someone would be selling an originally $45K car after 2 years? Whats wrong with it? IMO much better to buy new and have the full warranty.

You know what you're getting all right...ripped off. There is nothing wrong with buying a new car, but anyone somewhat knowledgable about cars can get a much better deal on a used car purchased from a private party. I've bought 3-5 year old Corollas and Camrys at a cost of approx 50% of retail. Most bit the dust around 300-350k miles. This was several years ago, so maybe things have changed since the pandemic and all of the supply chain issues.

The used car market has been much tighter during the pandemic- we just couldn't make it make sense last summer. It was not worth dumping more $$ for repairs into our 2001 car, but 3-5yo cars just weren't that discounted enough to be worthwhile, especially if the warranty was done. People were even selling 1-2yo Subarus for the exact price we ended up purchasing new from the dealership.

THIS^^^

Unless you know someone selling a used car privately, the cost difference between new and used is minimal.
Older cars can be harder to repair in the pandemic. I have a 13 yo vehicle, runs great, engine was rebuilt around 60K (for free by the dealer--known issues and the dealer ultimately did a recalls for the oil leaks---I got it done before any other damages). But now everything going wrong is electrical and thanks to the pandemic and the waitlist for getting the parts is unknown timeframe---manufacturers can barely make electronics for new cars, they dont give a shit about products for 10+ yo vehicles. So for now my vehicle is not actually alarmed (unless I want it going off all the time randomly and draining my battery due to a bad sensor) and some electronics with the Handsfree is bad (sensors again)---so I live without that for now, with no chance to ever really fix it. So now I will be getting a new car in the next year. Had hoped to keep car for another 2-4 years but not willing to do it now.