Author Topic: Advice about buying a car (maybe a new one)  (Read 1012 times)

BlueHouse

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Advice about buying a car (maybe a new one)
« on: June 07, 2018, 09:48:50 AM »
I'm ready to buy a replacement car.

I always hear all about how "you lose $xK the minute you drive it off the lot", and I get the argument, but for what I'm looking for (newer safety technology which currently falls under semi-luxury class), I can't buy these vehicles used for any significant amount less than it would be to buy a brand new car.  Am I missing something?  Or is the fact that I want high-grade tech eating into any savings I would see buying used? 

Based on comparing vehicles with the features I want, there is not significant difference in price between used and new, so why not just buy new from a dealer? 

Any advice welcome!  Thanks! 


RWD

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Re: Advice about buying a car (maybe a new one)
« Reply #1 on: June 07, 2018, 10:01:12 AM »
New (especially from a dealer compared to private party used) often comes with additional fees and taxes. Depending on your state sometimes you don't even have to pay sales tax on a private party used vehicle purchase. Make sure you're comparing actual out-the-door prices to get the whole picture.

But it is true that the discount for just slightly used (1-2 years old) may not be that significant for a lot of models.

catccc

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Re: Advice about buying a car (maybe a new one)
« Reply #2 on: June 07, 2018, 10:07:58 AM »
What safety features do you want and why?   We are considering replacing our 2005 Toyota Matrix, and we are finding even the most basic of cars that are a few years old are plenty safe.  Why do you need tech that is just available now when you lived without it just fine thus far? (I assume you are not posting as a ghost...)

Check out this post:https://www.mrmoneymustache.com/2012/06/07/safety-is-an-expensive-illusion/
I found if after a coworker kind of made a possibly passive aggressive remark indicating that I cared less about my kids than she cared about hers because I think my car is perfectly safe, whereas she prefers to be in a new SUV with her child for safety reasons.  I think she just likes a fancier newer car than me, which is totally fine.  Maybe she felt the need to defend her choice, if so, I feel bad for her.  I know my values are not the mainstream consumer type, but if hers are, she should be comfortable with them.

So think about what you really want/need, and if your $ is well spent going towards that.  If semi-luxury cars are your thing, whatever.  You do you.  But if semi-luxury cars are your thing, along with McMansions, frequent fine dining, pricey vacations, and designer clothes, you may want to rethink what forums you visit...

BlueHouse

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Re: Advice about buying a car (maybe a new one)
« Reply #3 on: June 07, 2018, 10:52:10 AM »
New (especially from a dealer compared to private party used) often comes with additional fees and taxes. Depending on your state sometimes you don't even have to pay sales tax on a private party used vehicle purchase. Make sure you're comparing actual out-the-door prices to get the whole picture.

But it is true that the discount for just slightly used (1-2 years old) may not be that significant for a lot of models.

Thanks RWD.  I am sure I would have forgotten about fees and taxes.  Will add that to my spreadsheet.

What safety features do you want and why?   We are considering replacing our 2005 Toyota Matrix, and we are finding even the most basic of cars that are a few years old are plenty safe.  Why do you need tech that is just available now when you lived without it just fine thus far? (I assume you are not posting as a ghost...)
I actually want to get a shit load of cameras all the way around the car in addition to cross-traffic and blind-spot sensors.  Here's why:  I live in an area where there are a lot of people walking in between cars and on the road.  There are also bicyclists and now electric scooters everywhere.  I just don't want to hit someone if I can avoid it.
I also have a very difficult entry into a garage and my current car is beat to shit on all four corners because when there are obstacles in the way to entering the garage (other vehicles, a dumpster, etc), then I don't have a lot of room to maneuver the car.   A front/side camera may make it so I don't have to scrub the paint off the house every time I scrape my car on the side of the garage door.  It may even help so I don't scrape the bottom of the car on a curb that sticks out to protect the gas meter. 

But if semi-luxury cars are your thing, along with McMansions, frequent fine dining, pricey vacations, and designer clothes, you may want to rethink what forums you visit...
Ah yes, the obligatory "you're in the wrong place" comment.  Thanks for the heads up...I must have gotten lost when I was in the forum for spendypants R us.  I just love it when people tell other posters that they don't belong.   

lbmustache

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Re: Advice about buying a car (maybe a new one)
« Reply #4 on: June 07, 2018, 11:28:50 AM »
To answer your question without any additional commentary: no, you probably would not save a significant amount buying used. In fact, you can likely get a better interest rate on a new car, thus negating any minor savings by going used (assuming the car is financed).

catccc

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Re: Advice about buying a car (maybe a new one)
« Reply #5 on: June 07, 2018, 11:34:46 AM »
Don't get your panties in a bunch, operative word was "if."  I never said you don't belong; please don't put words in my mouth.

Generally speaking, I worry that all the advanced safety features these serve to allow drivers to be less alert and less cognizant of their surroundings.  I also like to avoid striking objects and people in my car, but the good ol' eyes work pretty well for me.

The only way I would suggest a new car v. old is if incentives and tax savings (PHEV) put the cost below the cost of a used car based on cost per mile for remaining life of car.  If it is anything higher to buy a new car, unless you like new car smell, just buy used.  What is a "significant amount" in your analysis?  I've always found it funny how when buying groceries, I scrutinize unit prices to save pennies.  But when looking at cars recently "only $1,000 more for new" went through my head at one point.   But a buck is a buck, and thousand of them is a thousand, whether you are talking cheese or autos.

RWD

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Re: Advice about buying a car (maybe a new one)
« Reply #6 on: June 07, 2018, 11:35:59 AM »
To answer your question without any additional commentary: no, you probably would not save a significant amount buying used. In fact, you can likely get a better interest rate on a new car, thus negating any minor savings by going used (assuming the car is financed).

I got 1.69% from my local credit union on a used car refinance, so the great rates are not reserved for new car purchases.

lbmustache

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Re: Advice about buying a car (maybe a new one)
« Reply #7 on: June 09, 2018, 11:21:18 AM »
To answer your question without any additional commentary: no, you probably would not save a significant amount buying used. In fact, you can likely get a better interest rate on a new car, thus negating any minor savings by going used (assuming the car is financed).

I got 1.69% from my local credit union on a used car refinance, so the great rates are not reserved for new car purchases.

Correct. However, 0% or 0.9% are usually (only?) found on new cars financed through the dealer. That is what I was referring to. Now, over the life of a traditional loan, is there a huge difference between 1.7% and 0.9%... no.

RWD

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Re: Advice about buying a car (maybe a new one)
« Reply #8 on: June 09, 2018, 11:30:40 AM »
To answer your question without any additional commentary: no, you probably would not save a significant amount buying used. In fact, you can likely get a better interest rate on a new car, thus negating any minor savings by going used (assuming the car is financed).

I got 1.69% from my local credit union on a used car refinance, so the great rates are not reserved for new car purchases.

Correct. However, 0% or 0.9% are usually (only?) found on new cars financed through the dealer. That is what I was referring to. Now, over the life of a traditional loan, is there a huge difference between 1.7% and 0.9%... no.

0% (or close to it) new car loans are essentially discounts off the purchase price, and not generally available financing terms. In other words, it's only available as a promotional deal with certain models. If a dealer is offering a 0% deal on a specific car then that means they've baked the loss they are taking on financing into the price.