Author Topic: older vs newer model car  (Read 463 times)

Mellabella

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older vs newer model car
« on: January 17, 2020, 01:18:34 PM »
My partner and I don't have a car at the moment. We are travelling and will be moving to a new country where will both need to get a job. We have savings but would obviously prefer not to dip into them too much.

Do you think it makes more sense to buy a recent model second hand car (5 years old for example) and keep it for a long time, or buy an older model (say 10 years old) and then upgrade in 3 years? My partner prefers not to keep old cars due to maintenance where as I have always had old cars.

Thanks for your thoughts.

SailingOnASmallSailboat

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Re: older vs newer model car
« Reply #1 on: January 17, 2020, 01:46:57 PM »
Why not buy an older model and keep it for a long time? Our rationale with car buying has been to look at what the important features are and make sure we're buying a model that has those. For us, that's cruise control and electronic stability control. Other stuff is relatively easily added after the fact if we decide we need it.


Mellabella

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Re: older vs newer model car
« Reply #2 on: January 17, 2020, 04:37:41 PM »
I donít think weíd consider keeping an older one due to the maintenance costs for an older car going up over time. Thatís my partners thinking anyway no disrespect to your decision. I actually just found this video which may have answered my question re the sweet spot.

https://youtu.be/TmpICSpni1A

ReadyOrNot

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Re: older vs newer model car
« Reply #3 on: January 17, 2020, 04:46:39 PM »
Buy the most reliable used car in the most recent model year you can, as safety systems have advanced significantly over the years.

If you get into an accident and avoid massive injuries thanks to electronic stability control, side airbags, advanced crumple zones, etc., it'll be well worth the higher amount you pay for a newer model car than an older one.

In my view that's a Toyota or Honda, and the most recent model year but 2-3 old preferably.

Cadman

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Re: older vs newer model car
« Reply #4 on: January 17, 2020, 05:51:27 PM »
If you do go for an older Honda, ask for proof that the airbag recall has been done. Last thing you want is a random face-full of shrapnel. Here's a list of vehicles affected: https://thomasjhenrylaw.com/blog/product-liability/takata-airbag-recall-a-complete-list-of-affected-vehicles/

JAYSLOL

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Re: older vs newer model car
« Reply #5 on: January 17, 2020, 07:38:16 PM »
If you get a reliable used car, the maintenance cost are much lower than what you would lose to depreciation on a newer car.  Shockingly, 2-3 year old cars wear out brakes, shocks, tires, batteries, belts and need fluids changed at the exact same rate as 15-20 year old cars.  So really the only thing costing you extra on an older car are the big ticket items like an engine or transmission needing major repairs, which isnít common (or that expensive) if you are talking about a reasonable car like a Honda Civic or Toyota Corolla.  Even if you do have a big ticket repair (or a couple) over the span of 5 to 10 years owning an older car you come out way ahead of the depreciation + opportunity cost of a newer car.   

Iíve got a 25 year old Toyota Tercel that Iíve had for 18 years, the purchase price in 2002 when the car was at 170k was $5k, 18 years later itís at 330k+, still running fine and worth ~$1k, and over all that time the only repairs were a new clutch @310k, Iíve had the timing belt done twice, had the rear shocks replaced, spark plugs a few times, a couple new batteries over the years, one cv shaft, and oil changes.  Oh, and I had to have the muffler welded back on after I damaged it on a logging road.  Thatís it.  Maybe I spent $5k in 18 years on total maintenance.