Author Topic: Stop Overpaying for Lightly Used Cars  (Read 1430 times)

Dicey

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Stop Overpaying for Lightly Used Cars
« on: September 14, 2018, 10:53:11 AM »
A shout-out to JD Roth for this link today. Of course the author doesn't mention the higher cost of insurance, but it's excellent food for thought:

https://jalopnik.com/stop-overpaying-for-lightly-used-cars-1828576980

wheezle

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Re: Stop Overpaying for Lightly Used Cars
« Reply #1 on: October 02, 2018, 08:08:03 PM »
Totally agree. If you're on the market for a Corolla or something, you really ought to consider buying new.

Mississippi Mudstache

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Re: Stop Overpaying for Lightly Used Cars
« Reply #2 on: October 03, 2018, 02:25:47 PM »
A shout-out to JD Roth for this link today. Of course the author doesn't mention the higher cost of insurance, but it's excellent food for thought:

https://jalopnik.com/stop-overpaying-for-lightly-used-cars-1828576980

Interesting. I'm close to being in the market for a "new" car. I was nearly swayed when I found a 2016 Ford Fiesta, new (how did that happen?) for close to the price of the well-used Honda Fits/Accords that I've been looking at. I held back after reading some reviews of the Ford Fiesta, though. Makes me skittish to buy a Ford anyway, given that the only car they'll be producing in the future is a Mustang.

wheezle

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Re: Stop Overpaying for Lightly Used Cars
« Reply #3 on: October 03, 2018, 02:29:02 PM »
... given that the only car they'll be producing in the future is a Mustang.
Yeah, that bothers me. I'm driving a Ford right now, but I think I may turn to the dark side and go Japanese.

SweetRedWine

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Re: Stop Overpaying for Lightly Used Cars
« Reply #4 on: October 04, 2018, 10:29:11 AM »
I've frequently tried to feel the shame I've read that I should have due to buying a new Japanese economy car.  I didn't even contemplate used cars.  How can I consider myself frugal?  Every personal finance blog I've ever read extolls the virtues and intelligence of buying used cars.  I've tried so hard, but I can't feel the shame! 

I'm very happy with my new car.  My next car will more than likely also be purchased new.

SpacemanSpiff

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Re: Stop Overpaying for Lightly Used Cars
« Reply #5 on: October 10, 2018, 11:03:09 AM »
Ha - cool to see this when I just ran into this situation a month ago, and it seemed the prices I was looking at ran contrary to "typical personal finance wisdom" of the first couple years being so depreciation heavy that you'd be crazy to buy new.

One of our Civics just got destroyed after 10 years of loyal service (cumulative repairs of <$500) when it was rear-ended by an uninsured dingbat and insurance declared it a total loss. (was hoping to get another ~5 years out of it)

In looking at new Hondas and Toyotas (base level trim Civics, Corollas, CR-Vs, and RAV4s specifically) compared to any used ones (any trim from those models) that were 2-4 years old, this is exactly the scenario we ran into.  I pored through >50 used cars on Autotrader and other websites before we ended up deciding that even from a bottom line perspective, the new cars were the way to go for us because the price difference for the used cars was so low for base model Hondas/Toyotas.  Also now we have a higher likelihood that the car will last a long time as we know for sure that it will have been properly maintained from day 1.

golden1

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Re: Stop Overpaying for Lightly Used Cars
« Reply #6 on: October 10, 2018, 12:05:45 PM »
Yep used Toyota’s and Hondas are pricey because they have low depreciation, so I think there is definitely justification for buying new. 

SnackDog

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Re: Stop Overpaying for Lightly Used Cars
« Reply #7 on: October 10, 2018, 12:16:47 PM »
In 2008 I purchased a 2007 Outback for AU$32,000, saving $3000 over new.  By 2009 brand new ones had fallen to $31,000 due to the economic collapse.

On the other hand, the clown car I just purchased was a 60% discount to new, 2 years old and in mint condition.

Slee_stack

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Re: Stop Overpaying for Lightly Used Cars
« Reply #8 on: October 11, 2018, 08:31:48 AM »
You'll likely only overpay on lightly used, high-demand vehicles.

Anything in-demand you'll overpay for new as well.

Buy something no one wants and you'll do just fine.

We own a Lincoln (sedan) and a Saab (wagon).  We bought each when they were 3 years old.  They were seriously depreciated because almost no-one in the United states (or possibly anywhere) wants either one.

Both are actually quite nice vehicles too!

When you don't care about impressing even a single other person on the planet with a motorized vehicle, you can do very well on lightly used.  Just choose appropriately.

dcheesi

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Re: Stop Overpaying for Lightly Used Cars
« Reply #9 on: October 11, 2018, 08:45:21 AM »
You'll likely only overpay on lightly used, high-demand vehicles.

Anything in-demand you'll overpay for new as well.

Buy something no one wants and you'll do just fine.

We own a Lincoln (sedan) and a Saab (wagon).  We bought each when they were 3 years old.  They were seriously depreciated because almost no-one in the United states (or possibly anywhere) wants either one.

Both are actually quite nice vehicles too!

When you don't care about impressing even a single other person on the planet with a motorized vehicle, you can do very well on lightly used.  Just choose appropriately.
The demand for Toyotas and Hondas isn't about impressing anyone; it's about consistent reliability, as well as abundant/cheap(ish) repair options when they do break.

The odd-ball cars that no one wants are often expensive to repair (esp. European imports) and/or lack the track record of the aforementioned popular brands/models. Now you can certainly get lucky and wind up with solid non-lemon for a good price, but you're taking more of a risk there vs. the proven reliable models.