Opinions on New vs Used car - Page 4

sidsmom · ‎11-25-2011

Do rental companies sell their previous inventory?

I would think the miles they have on their cars

(Enterprise, Hertz, etc) would be long-trip miles...good cars.

That might be another avenue for used cars.

kiamom23 · ‎01-22-2011

We have gotten a better deal on cars by financing with the dealer. I really don't think they are impressed with you paying cash. They probably get a kickback from financing too. Check and see if there is any penalty for paying off early. I made a couple of payments and then paid it all off since I wanted to pay cash anyway. It can be shocking to see how much interest you end up paying. If you are lucky enough to have the cash no sense paying that interest needlessly.

Carmax has warranties that you can purchase if you do want to go that route. I was always a new car person but have gone with newer model used cars and been very happy, especially if you want a luxury model. Have them checked out or get a "certified" used car from a dealer. But don't settle on a car you don't really like if you are going to be spending lots of time in it. My deal breaker is smell. If I smell anything yuck like cig smoke or stink, it is a big NO.

Sooner · ‎03-10-2010

@Laura14 wrote:
You were all so wonderful with your suggestions on what to buy that I am weighing how to buy now.

I am a little in shock with new car prices. I have always bought small economy cars.
The most I have ever paid for a new car is $16,000 five years ago.

Now that we have so much technology mandated on cars the bottom rung price for Toyota's basic is over $20,000. You can go used for about half if you can even find one which I haven't yet but give up at least 30,000 miles or more on the engine.

I can afford the $20,000 but I am having a REALLY hard time with paying it for a basic economy car. I currently have a friend pricing a Honda Fit to see if they can do better.

So what would you do? Bite the bullet and pay the $20,000 for a brand new economy car you hope to run into the ground and have for 10 years or more? Or take your chances and save some money on a used car that won't last as long and may not be as reliable?

@Laura14 You need to figure in the resale value of a car if you are going to trade it in in say four years or so. Part of the cost of the vehicle is what it's worth is as you have it. If you are going to keep the car in good repair, it's value when you trade it in can be significant

I look up the value of used cars of the make and model I'm looking at to get some idea of how they will hold their value.

Also, sometimes a brand new car is not that much more than a used one. You just have to shop. Be in any case, think about the residual value of a car. Some make good trade in's later, some make very poor trade in's later.

Moonchilde · ‎05-23-2010

@Laura14, are you talking prices you’re being given with no negotiation?

You need to research the car you want on carsdirect and truecar, Edmunds or even Costco, though I was told by a car dealer that carsdirect’s price was lower than Costco’s. I never go to a dealership and let them tell me what I “have to pay.”

The sticker MSRP on my 2016 Elantra was $20,000 in January 2016. I could have walked in and paid $20,000 for it. I went through TrueCar and my cost was $16,000 - for a brand new, never-driven car that’s well-equipped if not top-of-line loaded, with a 10-yr, 100,000 mi warranty.

The brands like Toyota and Honda won’t come down that much, percentage-wise. The Fords & Chevys start out thousands higher and add extras to cost even more, with generally much shorter warranties.

Life without Mexican food is no life at all

NicksmomESQ · ‎08-19-2014

In the last 20 years DH & I have only bought new cars.We like the long warranty etc.If you decide to buy a used one I would definitely only consider a certified pre owned.If you can afford a new one I would still choose that.

Sooner · ‎03-10-2010

I'm a buy it new, keep it in great low mileage shape and trade it in four years. That way, I get a lot for my trade -in and have the warranty while I am driving the car.

Unless you will always buy used cars, I don't see driving one until you drive all the value out of it. The new cars keep going up in price and the gap just gets wider as that car gets older and you spend money on repairs.

I know we're all different about that thinking, but that's my take on it. Plus, I will spend money for the thrill of a new car! LOL!!! To me that's money will spent.

Laura14 · ‎06-09-2014

@Mominohio Thank you! I appreciate you taking the time to type that out and I read every bit of it. Good to know from someone with a mechanic in the family.

@haddon9 I tried a Toyota Yaris along with a Hyundai Veloster for exactly the same reason. People including my mother have told me Hyundai is right there now with Toyota and Honda.

I love the look of the Veloster but when I got in it, I was sitting on the floor. It was way too laid back sporty for me in Atlanta traffic. I wouldn't feel safe. The way people run me over, I'd be gone within the next year I'm sure.

Can't beat the value though. The Toyota guy tried to stonewall me when I asked about the Hyundai which was a 2017 and on clearance for about $17,000 versus the $20,000 Yaris. They own both dealerships so what do you care what I buy?

I left after the game playing which I so don't need right now but can't beat the reputation of either one right now which is great.

QueenDanceALot · ‎04-18-2013

@sidsmom wrote:
Do rental companies sell their previous inventory?
I would think the miles they have on their cars
(Enterprise, Hertz, etc) would be long-trip miles...good cars.
That might be another avenue for used cars.

@sidsmom

That's what I bought last ime I bought a car.

It's been a great car, I've had it going on 5 years. Low upkeep so far, and I paid far less than I would have had I bought new. Car looked brand new when I bought it, too!

Laura14 · ‎06-09-2014

@kiamom23 wrote:
We have gotten a better deal on cars by financing with the dealer. I really don't think they are impressed with you paying cash. They probably get a kickback from financing too. Check and see if there is any penalty for paying off early. I made a couple of payments and then paid it all off since I wanted to pay cash anyway. It can be shocking to see how much interest you end up paying. If you are lucky enough to have the cash no sense paying that interest needlessly.

Carmax has warranties that you can purchase if you do want to go that route. I was always a new car person but have gone with newer model used cars and been very happy, especially if you want a luxury model. Have them checked out or get a "certified" used car from a dealer. But don't settle on a car you don't really like if you are going to be spending lots of time in it. My deal breaker is smell. If I smell anything yuck like cig smoke or stink, it is a big NO.

@kiamom23 I've always financed through the dealer. Since I buy cheap cars, they make close to nothing on the car itself and, instead collect the interest to make at least a little something off of me which is why the Honda guy said I had to finance through Honda for his deal I'm sure.

I have always paid my cars off early because, even though I have great credit and really nothing interest rates, I still don't like the payment. I've never had a penalty for doing that so Honda better not start it.

Laura14 · ‎06-09-2014

@Sooner wrote:
@Laura14 wrote:
You were all so wonderful with your suggestions on what to buy that I am weighing how to buy now.

I am a little in shock with new car prices. I have always bought small economy cars.
The most I have ever paid for a new car is $16,000 five years ago.

Now that we have so much technology mandated on cars the bottom rung price for Toyota's basic is over $20,000. You can go used for about half if you can even find one which I haven't yet but give up at least 30,000 miles or more on the engine.

I can afford the $20,000 but I am having a REALLY hard time with paying it for a basic economy car. I currently have a friend pricing a Honda Fit to see if they can do better.

So what would you do? Bite the bullet and pay the $20,000 for a brand new economy car you hope to run into the ground and have for 10 years or more? Or take your chances and save some money on a used car that won't last as long and may not be as reliable?

@Laura14 You need to figure in the resale value of a car if you are going to trade it in in say four years or so. Part of the cost of the vehicle is what it's worth is as you have it. If you are going to keep the car in good repair, it's value when you trade it in can be significant

I look up the value of used cars of the make and model I'm looking at to get some idea of how they will hold their value.

Also, sometimes a brand new car is not that much more than a used one. You just have to shop. Be in any case, think about the residual value of a car. Some make good trade in's later, some make very poor trade in's later.

@Sooner That's why I think I am leaning new. The used cars are only about $5000 less and since I keep them for 10 years or more resale doesn't matter. Since I have had a rash of people running me over, my car is being totaled because it didn't hold its value not that I expected a Fiat too. It was an expensive lesson to be sure which is why I am going back to cars that hold their value just in case I do want to let go early or am forced to.

Great point!