I bought a new car (Honda Fit in Bay Area) Evil (??)

[ice_beard]

Yes, I bought a new car.  Not a used one, although I looked, and looked.  I'm no rookie at buying reliable, old(er) cars for cheap and driving them until the wheels fall off.  This has been my go to since I was 16.  I was replacing a 1997 Subaru Outback that had been nickel and diming me for the past few years.  When I first caught the MMM bug about a year ago I thought it would be cool to do my own auto mechanical work.  I changed the plugs and plug wires which immediately reminded me why I don't like doing auto work, it's not fun to me.  While skinning my one remaining un-skinned knuckle, I suddenly remembered changing an alternator when I was in high school and much un-fun that was, so no more mechanical work for me.

Back to my rationalization for this car...  When I went to the Honda dealership and wanted to test drive some used cars they had listed, most were lease returns with 30-40k miles on them that were selling for $~2500 less than the 2017s.  They had just discounted the remaining 2017s and were pretty motivated to sell these cars.  I had test drove a handful of other models and the Fit was my favorite.  I'm very happy with the car.  Although my commute is minimal, I do a fair amount of driving around the Bay for a couple of hobbies of mine and the car suits me quite well.  We paid cash, no financing and the bump in insurance isn't really that significant. 

The used market wasn't really that great.  Yes I could have purchased a used Prius for much cheaper and I even saw a few Scions, but most seemed overpriced or at least not worth what I wanted to pay. 

I surprised myself by buying this car but am absolutely thrilled about my choice. 
I fully understand this is a depreciating asset and if I was smart i would have taken that extra 10k, bought a used car and invested that cash in some index funds.  I didn't, I bought a reliable car that I'm not going to have to worry if it's going to start every time I turn the key as was the case for the past 3 years with my old Subaru.  It's a good feeling.  Thoughts?? 

(it might help to mention that my wife and I are financially in a pretty good place, I could have certainly bought a lot more car than this.)

[ditheca]

I sold my minivan and replaced it with a barely used Fit.  I was surprised at how negative the forum response was at the time, suggesting that I should have looked in the 2-4k range instead of 10k.

I am capable of, and hate, doing my own mechanic work too.

Couple years later, and still no regrets.  Three growing kids still fit just find in the back.

[Khaetra]

Not evil at all.  I bought mine brand new back in October and I love it!

[Just Joe]

We made the same choice years ago. $2500 difference between a zero mile Honda and a 40K mile Honda. Easy choice.

Car shopping now. Same problem. We keep them forever...

[WinterSkies]

We just bought one too!  A 2016 showroom model, so they were selling it as a used car even though it has full warranty and only 200kms on it.  DH talked them down another $800 (it's a manual and it had been on Autotrader for a while), so we saved nearly $7k off the price of the 2017 model.  I love it - just enough power to make it fun to drive, but amazing on fuel consumption. 

[facepalm]

I live in the Bay Area. Used car valuations on some models are whack here. I have been pricing used Honda Fits, and have been completely unimpressed by what I see on the market. I almost purchased  one two years ago from the local BMW dealer, a very nice three year old model, but it still had almost 40K on the clock and they would not budge on price.

Now if you want a Camry, deals are to be had. Ask me how I know.

[JoeBlow]

I bought a new 2015 Honda Fit 2 years ago.  The payments + gas are far cheaper than the repairs plus gas I was spending on my 2000 Ford Ranger.  The truck was looking at a fresh 3k repair bill when I pulled the plug.  No regrets.

[WhiteTrashCash]

I also bought my car brand new for cash and while technically it wasn't the most frugal choice it ended up being a good decision for me. I've owned this car for six and a half years now and it has never needed any kind of major repair. The maintenance is minimal because it's a hybrid and this car is predicted to last for up to 500,000 miles because the engine only runs part of the time and almost always at less than 2000 rpm. The piece of mind is worth the purchase cost to me.

[Just Joe]

Your car sounds like it will get ugly before it wears out. ;)

[Monocle Money Mouth]

When the difference between new and used is that small, I think it is worth buying new. Most people that buy econo boxes don't take great care of them. At least if you buy it new, you won't be inheriting issues caused by neglected maintenance. If you stay on top of the maintenance, the new Fit should last a long time.

[ice_beard]

Thanks for the kind words everyone!! 

Peace of mind when it comes to having a dependable car is hard to put a price on. 

[skeeder]

Honestly, I feel that buying a new car can be very mustachian IF you keep it long enough.

[slugline]

Honestly, I feel that buying a new car can be very mustachian IF you keep it long enough.

You've got to be in a position where your driving needs won't prompt you to upsize/downsize every few years, but that's my thinking too. My Honda is going on 18 years and each additional year of utility I'm getting out of the vehicle now takes more of the sting out of those first years of depreciation.

[Just Joe]

Exactly!

[zolotiyeruki]

I think one of the factors driving higher prices for used cars is the fact that from 2007-9, new car sales tanked. So there aren't as many used cars on the market.   Sales rebounded strongly in subsequent years, so I'm hoping to get some really good deals in 5 years or so, when my car and our van hit 250k and 200k, respectively.

[MayDay]

I think one of the factors driving higher prices for used cars is the fact that from 2007-9, new car sales tanked. So there aren't as many used cars on the market.   Sales rebounded strongly in subsequent years, so I'm hoping to get some really good deals in 5 years or so, when my car and our van hit 250k and 200k, respectively.

Good point.

My civic (bought new in 2003) is 14 years old and I expect I'll drive it five more years, or maybe more. Was buying new dumb? Maybe but it was financed at either 0 or 0.5%, and I've never upgraded it, and it's needed virtually no maintenance.  So, meh.

When we looked at 1-3 year old civics, the prices were outrageous.

[Monocle Money Mouth]

I think one of the factors driving higher prices for used cars is the fact that from 2007-9, new car sales tanked. So there aren't as many used cars on the market.   Sales rebounded strongly in subsequent years, so I'm hoping to get some really good deals in 5 years or so, when my car and our van hit 250k and 200k, respectively.

Good point.

My civic (bought new in 2003) is 14 years old and I expect I'll drive it five more years, or maybe more. Was buying new dumb? Maybe but it was financed at either 0 or 0.5%, and I've never upgraded it, and it's needed virtually no maintenance.  So, meh.

When we looked at 1-3 year old civics, the prices were outrageous.

That's the flip side of cars that hold their resale value. They aren't a great value when you actually want to buy one used.

I don't think you need to beat yourself up for buying a new econobox that you intend to keep for a long time. I think where most people get themselves in to trouble is when they finance a new car that is way more expensive than they can actually afford. They don't think I can't afford a $35,000 car, they think, I can afford $400 a month payment and I'll repeat the process every 4 or 5 years and roll the balance from the previous loan in to the new loan.

[NoraLenderbee]

Welcome to the dark side! I just bought a new car, too. It replaces my old car, which I also bought new . .  20 years ago.;)

[joonifloofeefloo]

Me too! Wildly happy :)

[Chris22]

"Buy new, keep it for a decade +" is the old money way to buy cars, and I heartily endorse it.  Buy something high quality, take care of it, and it will last a long time.  Not the absolute cheapest route, but frugal in its own way.

[Guilherme]

Hello there!

First post here!

I'm from Brazil, and I am happy to say that I am also a happy owner of this same type of car - Honda Fit - since 2010! Almost seven years... and counting!

Every year some people ask me: "when you will buy a new car?" They don't believe that I do differently than most people do, in this sensitive area of the household budget, which is the cost of cars.

You have to have a strong mindset not to fall into the temptation to waste money with it.

[zolotiyeruki]

Every year some people ask me: "when you will buy a new car?"

You can honestly reply by saying "I already did!" :D

[Dicey]

Every year some people ask me: "when you will buy a new car?"

You can honestly reply by saying "I already did!" :D

Love it!

DH bought his Ford F150 TRUCK brand-new in 2002. It has 70k miles on it and still looks like new. We found a shell for it on CL for $300 and he painted it to match the truck. We love it and plan on driving it for another decade. Bonus, when we go to the theater, we get to park in the overheight section on the ground floor of the parking garage. We literally laugh out loud when we see how long the exit line is behind us.

Yeah, it's a truck, but he's a painting contractor, so he gets a pass. Plus he walks to work now, so that baby's going to stay sub-100k miles for quite a while longer.

Under the right circumstances, I see no problem with buying new. Too many people do it for the wrong reasons, or worse still, without thinking it through. Doesn't seem like you did either of those things, so I'm giving you a Dicey Pass.

[Guilherme]

Every year some people ask me: "when you will buy a new car?"

You can honestly reply by saying "I already did!" :D

Great!!!!!