What are the most important considerations when deciding whether to buy new or used?

Question

We need a new car. My car is only 3 years old, but we just had a baby and need something bigger. I've found a car I that love and I'd like a new car. My husband says we should consider used. He'd like to save a few thousand. But to me, late model used isn't too much less in cost than new. Given that we probably will drive whatever car we get for a very long time, I think new is better. What would you do in my situation?

Answer 1

I am not sure what kind of car you are looking at, you are right, if you are looking at a Honda or Toyota they do hold there value very well. You will find a 2 year old accord at a used car lot for only 2%-4% lower then new. You may find that same used car in the paper for a lot cheaper, always buy from a private when you can, get the car checked out by a GOOD mechanic before you buy. If you are looking at an American car, or a high line car, they lose there value very fast and you should save thousands when you go used. Buy used, always a good idea to save some money when you can, the fact is if you buy a used car with low miles you should be just fine. Even if you buy a new car, it becomes used the second you drive it off of the lot, let some else lose that money.

Answer 2

Plenty of people have made arguments for used cars, so let me give some for getting a new car:



1. You can get exactly what you want. Depending on the size of your market, there may not be many used cars to choose from that are equipped the way you would like them to be.



2. You can control the care that the car receives. It is important to break a car in properly and maintain it correctly from new. How well do people take care of cars they are planning on trading in a year or two, particularly if they are leasing them? I knew someone who financed a new car, barely made a payment from day 1, and treated it horribly, just waiting for the day that the repo man came.



3. You can finance a new car from now until doomsday at a low interest rate. You can't get as long a term or as low an interest rate on a used car in most cases. Also, if you're looking for a largish family car, chances are the dealers can't give them away with gas at $4.00 a gallon, so you'll get mad incentives to take it off their hands. Used cars were purchased under different market conditions, so every big one is a hardship case where people who are dropping them because of gas prices owe more than they're worth. Why get involved when you can pick up a new one with thousands in discounts?



4. Warranties. Any new car is going to have a decent warranty standard. Warranties for used cars cost thousands of dollars, offsetting much of your savings from buying used in some cases.



These are just considerations. The right used car can still make sense. I often go to look at used cars for friends. You'd be surprised how often I spot signs of abuse and poorly repaired damage that hasn't been reported. I did just help one friend buy a Mazda 3 with 29,000 miles that was all it should be and all it was advertised to be. It was about $6,000 less than an equivalent new one would have been. It was about $8,000 less than one equipped the way she really wanted would have been though, so if money was less of an object a new one still would have been preferrable.

Answer 3

A new car will give you bragging rights plus new cars are not selling well so you can probably get some deals out there. If you look for a used car, many people trade in or turn back the lease after two or three years so there is a good selection. You would definitely get a good deal on a SUV (AKA gas guzzler) whether new or used but may have to take out a loan to fill up the tank. Consumer Reports puts out a yearly car guide that has some good tips and repair history on new and used cars so that is a good place to start off at.

Answer 4

Anyway you determine costs, the new car is going to be much more expensive. If you have the money to spend on a new car and the higher insurance they are nice to have.



It is very common for a new car to lose 20-25% of it's value in the first year and to lose about a third after 3 years.



In these uncertain economic times do you really want a to take on the extra debt and costsa of a new car? It is already going to be bigger which means poor gas mileage compared to what you get now.



Babies are also expensive also. Now might not be the best time to increase debt more than is necessary.

Answer 5

Save your money and get a used!! lol. You know, when you drive your car off the lot it depreciates by a few thousand! Sure you love the new car smell, and excitement of buying a brand new car, I know I do! But you can buy a car with very small mileage on it, with a little bit of smart shopping, at much less than new sticker price! We had the same situation, more kids, need bigger car. We searched and settled on a used car two years old with only 19k miles on it, practically new engine, at much less than new.

Answer 6

You lose about $5,000 the minute you drive the new car off the lot. If you should have an accident in it, you will lose that much money trying to replace it.



Buy one about two years old with low mileage on it, and in good condition, and it is much more worth it. Your husband is right.



And I learned this by experience. Our new car was totaled after having it only a few months. The only way we could

"somewhat" keep from losing too much was to have the insurance company find another car, exactly the same as ours

with the same mileage, etc.....so we didn't lose the cash put into it. But we never bought another new car again. It just wasn't worth it. And the accident wasn't our fault...it just happens.

Answer 7

UNLESS I WON THE LOTTERY........i would never buy new again . why pay the vat and new price margin, its silly'



buy a 6 month to 2 year old car with 1 owner all the extras you would req very low milage stunning condition



and buy a model that you couldnt possibly quite afford new a top quality model and make ,so it will go for a long time without any troubles, like a mazda honda LEXUS merc bmw toyota vw. and it will still work out cheaper than buying new ,



theres a lot of superb almost new cars out there at fantastic prices, there desperate to sell them at moment,



good luck im excited 4 u ........

Answer 8

Definitely NEW. The money he'll save, it's going to turn in a greater expenditure for repairs in the used cars. Is always the same. From three years on, damages are going to begin. Imagine not really knowing what was the care taken to it. Forget it, bad idea a used car.

Answer 9

You save alot on used. But make sure it has a great history report. Remember, someone else could have pushed that car to the limit and traded it in. With a new, its all yours, you put the miles on, you take care of it. With used, yes you save money, but you take the risk of losing that money if stuff goes wrong. Also on used cars there sometimes isnt warranties. On new, you can get a 5 year,100,000 mile warranty. It all depends. Check the history on the used car, see if there is a warranty,test drive it. ALWAYS test drive. But in my opinion...go new...

Answer 10

Trust me don't buy a new car at all! You just lose money right off the lot. I would never buy a new car at all. Just make sure the car you buy is checked out by a mechanic.

Answer 11

go on carfax.com and enter the amount you want to spend. compare the used to the new at that rate and see what the best deal is. sometimes new can be cheaper. i did this today and saw a car 2008 that i like cheaper than some of the used later models

Answer 12

go with the new.new baby new car.i've had used cars that really are someone else's problems.good luck