Author Topic: Buying a good used car in today's market.  (Read 90300 times)

EchoStache

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Buying a good used car in today's market.
« on: May 07, 2023, 11:04:47 AM »
19 y.o. daughter has a 2009 VW Passat 140k miles.  Paid for, of course.  Her plan was to save for 12-18 months and pay cash for a newer used car that will last 10 years.  Went for an oil change, after which the car would not start.  This car is notorious for timing chain tensioner failure and has interference engine.  No compression in any cylinder.  Three shops have said timing chain, which basically means the engine is toast.  Yes, maybe the head can be pulled and repaired/replaced if we are lucky that pistons/engine not damaged,  but then we have a cost of $3k plus for parts and labor and a 140k mile bottom end.  Or  $4k+ for putting in a high mileage used engine.  And of course we still have a 140,000 mile 14 year old car.  We decided it was best to move on since there is other work the car needs as well.  She has only had the car about 6 months.  Ouch.

Settled on a 2019 Hyundai Ioniq PHEV for $24k.  Much higher price than I was hoping for her to pay.  Federal tax credit and PA state rebate brings this under $20k.  We considered cheaper alternatives, but even going back to 2015 or so, $15k+, high mileage, no warranty, ICE, fuel, etc.

With the <$20k PHEV, we have bumper to bumper warranty until 1/2025, powertrain until 1/2030 since factory warranty transferred due to certified pre-owned.  She will have essential 0 fuel cost since electric range is ~30 miles and daily round trip commute for work is 13 miles.

Since she is just starting out and recently working full time, she will live at home for free until this car is quickly paid full. 

I couldn't justify a $10k car since what I'm seeing for that is 10+ years old and 100k+ miles. 

I suppose I'll see if there is a way to salvage some value from the 2009 Passat which is a very nice car, if it had a good reliable engine.

Just thought I would share our recent car failure and buying experience. 
« Last Edit: May 07, 2023, 11:07:53 AM by EchoStache »

RWD

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Re: Buying a good used car in today's market.
« Reply #1 on: May 07, 2023, 01:06:31 PM »
My brother also got hit with that issue on his Audi (same engine, I think). I believe there was even a class-action lawsuit.

I think your replacement choice is very reasonable given the current market.

Just Joe

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Re: Buying a good used car in today's market.
« Reply #2 on: May 10, 2023, 03:12:52 PM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.

MattL

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Re: Buying a good used car in today's market.
« Reply #3 on: May 12, 2023, 06:38:42 AM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.
That's the way that lead me to my current car, i was looking for an used reliable 4x4 but Land Cruisers were simply too expensive here, after some research i've found the Hyundai Terracan (a truck based on the old gen Mitsu Montero), for 2000€ i can't complain.

GilesMM

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Re: Buying a good used car in today's market.
« Reply #4 on: May 12, 2023, 06:45:57 AM »
The car market is still pretty terrible for buyers, especially at the low end.  The Hyundai is a great choice and will be far more reliable than her German car!

rothwem

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Re: Buying a good used car in today's market.
« Reply #5 on: May 12, 2023, 06:48:32 AM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.
That's the way that lead me to my current car, i was looking for an used reliable 4x4 but Land Cruisers were simply too expensive here, after some research i've found the Hyundai Terracan (a truck based on the old gen Mitsu Montero), for 2000€ i can't complain.

I thought everyone in Italy that needed 4WD got a Dacia Duster?  When I visited several years ago, it seemed like half the vehicles on the road were Dacia Dusters.  We rode in a Duster Taxi in Milan and the dude made it HANDLE.  I don't think I've ever been around a roundabout so damn fast in a tallish crossover before. 

I, um, kinda want one.  I was surprised at how cheap they were, even brand new. 

cool7hand

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Re: Buying a good used car in today's market.
« Reply #6 on: May 13, 2023, 08:22:06 AM »
We had some good experience working within our network to work around the consumer market. We just started a dialogue with friends and family via email and found a match.

sonofsven

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Re: Buying a good used car in today's market.
« Reply #7 on: May 13, 2023, 09:02:38 AM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.

Toyota Avalon. "If Toyota made a Buick".

EchoStache

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Re: Buying a good used car in today's market.
« Reply #8 on: May 13, 2023, 12:15:33 PM »
OK, here's something a bit scary.  I did a google search to find ideas for the best place to sell a "junk" car in order to get rid of, and get a little cash, for her broke down 2009 Passat.   I got an offer for $435.  They come tow the car and hand a check.  This seems to be about the going rate.  I got another offer from a place called Clunker Junker/Cash for Cars.  $1,935.  Sounds pretty sketchy.  I specified that car does not run, even that we thought it might be the timing chain/tensioner.  They wanted VIN.  I called the local depot that actually comes to get the car....asked them to verify how much the check would be for.  They confirmed $1950.  I got the title notarized for sale Friday and will schedule pickup Monday when they open.  Fingers crossed this is not a scam, which I'm not 100% convinced it's not.  Or that they will show up with a $600 check or something. 

Will be a nice little chunk to pay towards the new car if legit, and gets it out of our yard. 

MrFancypants

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Re: Buying a good used car in today's market.
« Reply #9 on: May 13, 2023, 01:22:46 PM »
I have a high mileage (163k) Volkswagen with the exact same engine as your daughter's that I've spent a fair amount of time learning about and wrenching on.  Yes, the problem is almost certainly a worn out timing chain which skipped a tooth or three because it exceeded the maximum travel for the hydraulic tensioner.  This might be the #1 killer of the VW/Audi TSI/EA888 engine over the years, but especially the early ones like ours as they've revised the chain and tensioner multiple times over the last 14 years.

That's the bad news, which is not great.  The good news is that it's entirely possible, or even likely, that the pistons and cylinder walls are just fine.  The other good news is that the bottom end of these engines are very, very good and if it wasn't losing more than a quart of oil every 5000 miles you've almost certainly got a good one.

Ok I've typed all of this and finished reading your last post and see that you've made your decision.  I'll post the above anyway in case it helps prevent you from getting scammed if everything else on the car checked out I'd happily pay you $1,935 for it to fix it myself and flip it.  Mine is a GTI that I enjoy driving and have so much sweat equity in that I'm probably never going to sell it (I'm also an idiot); if the engine explodes I'll rebuild or replace it.

Also, I like cars, get bored, and spend too much time on Autotrader looking at used cars.  My first recommendation would be a Honda but even used there's a Honda "premium" tax that goes on even high mileage Civics and Accords, but they're still good bets and can't go wrong.  Camrys and Corollas are also good bets and in general they trend a bit lower in price compared to Hondas.  The sleeper brand you might want to check out, surprisingly, is Lexus...  I don't know what it is about them but where I'm at, for some reason, they seem to end up going for used Honda money.  A 100k mile Lexus IS model goes for very nearly the same price as a 100k mile Accord, and clean GS models can be found for close to the same or not much more than that (might be a few years older though).  For the bargain of the century have a close look at the Lexus ES or Toyota Avalon (same car under the skin)...  where I live $10,000 buys one in excellent condition with only 100k miles, equipped with a stone cold reliable Toyota V-6 at a price lower than the equivalent Honda Accord.

Good luck!
« Last Edit: May 13, 2023, 01:30:36 PM by MrFancypants »

EchoStache

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Re: Buying a good used car in today's market.
« Reply #10 on: May 14, 2023, 06:40:12 AM »
I haven't schedule the pickup yet.  I've checked several shops in the area; even the one that specializes in Audi/VW seems rather uninterested in tackling such a large project i.e. pulling the cylinder head to check for damage, replacing timing chain and tensioner, or entire engine if needed.  My concern is that I would *hope* it was just the tensioner.  Best case scenario would just be the labor, but realize that once they have the car disassembled, if its the cylinder head and/or complete engine, then I'm in it up to my elbows for $4-$5k, then lucky to make $2k profit.  If I get lucky and can get the car fixed for under $2k(no cylinder head or engine damage), then yes, I could make $4k profit with a $6k sale.  So I think I'm going to go the easy route and take the $2k and run.  I don't have the time or desire(and probably not the extensive tool set needed) to do the work myself.  If I really wanted to work more than 40 hours/week that badly, my OT rate is $150/hour, and I don't do that so.....

GilesMM

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Re: Buying a good used car in today's market.
« Reply #11 on: May 14, 2023, 07:19:30 AM »
OK, here's something a bit scary.  I did a google search to find ideas for the best place to sell a "junk" car in order to get rid of, and get a little cash, for her broke down 2009 Passat.   I got an offer for $435.  They come tow the car and hand a check.  This seems to be about the going rate.  I got another offer from a place called Clunker Junker/Cash for Cars.  $1,935.  Sounds pretty sketchy.  I specified that car does not run, even that we thought it might be the timing chain/tensioner.  They wanted VIN.  I called the local depot that actually comes to get the car....asked them to verify how much the check would be for.  They confirmed $1950.  I got the title notarized for sale Friday and will schedule pickup Monday when they open.  Fingers crossed this is not a scam, which I'm not 100% convinced it's not.  Or that they will show up with a $600 check or something. 

Will be a nice little chunk to pay towards the new car if legit, and gets it out of our yard.


A check?  Tell them you require cash, Paypal or Venmo before signing over title.

ender

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Re: Buying a good used car in today's market.
« Reply #12 on: May 14, 2023, 07:43:13 AM »
I haven't schedule the pickup yet.  I've checked several shops in the area; even the one that specializes in Audi/VW seems rather uninterested in tackling such a large project i.e. pulling the cylinder head to check for damage, replacing timing chain and tensioner, or entire engine if needed.  My concern is that I would *hope* it was just the tensioner.  Best case scenario would just be the labor, but realize that once they have the car disassembled, if its the cylinder head and/or complete engine, then I'm in it up to my elbows for $4-$5k, then lucky to make $2k profit.  If I get lucky and can get the car fixed for under $2k(no cylinder head or engine damage), then yes, I could make $4k profit with a $6k sale.  So I think I'm going to go the easy route and take the $2k and run.  I don't have the time or desire(and probably not the extensive tool set needed) to do the work myself.  If I really wanted to work more than 40 hours/week that badly, my OT rate is $150/hour, and I don't do that so.....

It's also possible it's folks who are mechanics themselves who know what they can repair/resell the car for and are doing this calculation/work themselves.

I know someone who was in sales who partnered with a mechanic to flip cars like this. He found the cars/worked with people and the mechanic just liked doing the actual repair, so they split all the profit.


EchoStache

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Re: Buying a good used car in today's market.
« Reply #13 on: May 14, 2023, 09:11:54 AM »
OK, here's something a bit scary.  I did a google search to find ideas for the best place to sell a "junk" car in order to get rid of, and get a little cash, for her broke down 2009 Passat.   I got an offer for $435.  They come tow the car and hand a check.  This seems to be about the going rate.  I got another offer from a place called Clunker Junker/Cash for Cars.  $1,935.  Sounds pretty sketchy.  I specified that car does not run, even that we thought it might be the timing chain/tensioner.  They wanted VIN.  I called the local depot that actually comes to get the car....asked them to verify how much the check would be for.  They confirmed $1950.  I got the title notarized for sale Friday and will schedule pickup Monday when they open.  Fingers crossed this is not a scam, which I'm not 100% convinced it's not.  Or that they will show up with a $600 check or something. 

Will be a nice little chunk to pay towards the new car if legit, and gets it out of our yard.


A check?  Tell them you require cash, Paypal or Venmo before signing over title.

Yeah this is the part that worries me a bit.  The company (Clunker Junkers) says they gaurantee all checks if there is ever an issue, and that cash is often not an option due to the risk of drivers carrying a large sum of cash.  I suppose if the check bounces, then the car is essentially stolen and would be covered by insurance??? Maybe not.....ugg.  My thought is that I would immediately drive to the bank that the check is written from and cash it.  But if it isn't good then the car and title are gone.......

Again, reviews of the company I have found are mostly good.

RWD

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Re: Buying a good used car in today's market.
« Reply #14 on: May 14, 2023, 09:17:45 AM »
OK, here's something a bit scary.  I did a google search to find ideas for the best place to sell a "junk" car in order to get rid of, and get a little cash, for her broke down 2009 Passat.   I got an offer for $435.  They come tow the car and hand a check.  This seems to be about the going rate.  I got another offer from a place called Clunker Junker/Cash for Cars.  $1,935.  Sounds pretty sketchy.  I specified that car does not run, even that we thought it might be the timing chain/tensioner.  They wanted VIN.  I called the local depot that actually comes to get the car....asked them to verify how much the check would be for.  They confirmed $1950.  I got the title notarized for sale Friday and will schedule pickup Monday when they open.  Fingers crossed this is not a scam, which I'm not 100% convinced it's not.  Or that they will show up with a $600 check or something. 

Will be a nice little chunk to pay towards the new car if legit, and gets it out of our yard.


A check?  Tell them you require cash, Paypal or Venmo before signing over title.

Yeah this is the part that worries me a bit.  The company (Clunker Junkers) says they gaurantee all checks if there is ever an issue, and that cash is often not an option due to the risk of drivers carrying a large sum of cash.  I suppose if the check bounces, then the car is essentially stolen and would be covered by insurance??? Maybe not.....ugg.  My thought is that I would immediately drive to the bank that the check is written from and cash it.  But if it isn't good then the car and title are gone.......

Again, reviews of the company I have found are mostly good.

Are they not giving you a cashier's check? I would be more comfortable with that.

EchoStache

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Re: Buying a good used car in today's market.
« Reply #15 on: May 14, 2023, 09:56:00 AM »
I'll call them Monday and see if a cashiers check can be used.

Stay tuned.

sonofsven

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Re: Buying a good used car in today's market.
« Reply #16 on: May 14, 2023, 01:09:34 PM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.

Toyota Avalon. "If Toyota made a Buick".

I'll expand on this.
I found one for my daughter when she turned 16.
It's a Toyota, so very reliable.
It was marketed and built for a more elderly buyer, so it is quiet and comfortable.
It is new enough (2000 in my case) to have airbags.
It is not sporty at all and will never be considered cool.
It is a larger car and so it feels solid on the freeway.
It gets ok mileage, in the mid to high 20's, which as fine as DD is in college and not driving a ton.
They sold for a fairly high price (for a Toyota sedan) when new but sell used for a considerable discount.

I told my DD all the online reviews said it was basically a car for old folks to carry their golf clubs in and no teenager would be caught dead in one.
Her response: "I love it".

BicycleB

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Re: Buying a good used car in today's market.
« Reply #17 on: May 14, 2023, 01:27:52 PM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.

Toyota Avalon. "If Toyota made a Buick".

I'll expand on this.
I found one for my daughter when she turned 16.
It's a Toyota, so very reliable.
It was marketed and built for a more elderly buyer, so it is quiet and comfortable.
It is new enough (2000 in my case) to have airbags.
It is not sporty at all and will never be considered cool.
It is a larger car and so it feels solid on the freeway.
It gets ok mileage, in the mid to high 20's, which as fine as DD is in college and not driving a ton.
They sold for a fairly high price (for a Toyota sedan) when new but sell used for a considerable discount.

I told my DD all the online reviews said it was basically a car for old folks to carry their golf clubs in and no teenager would be caught dead in one.
Her response: "I love it".

As a parent, that must be very satisfying! Great job on the upbringing, @sonofsven

BicycleB

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Re: Buying a good used car in today's market.
« Reply #18 on: May 14, 2023, 02:04:32 PM »
19 y.o. daughter has a 2009 VW Passat 140k miles.  Paid for, of course.  Her plan was to save for 12-18 months and pay cash for a newer used car that will last 10 years.  Went for an oil change, after which the car would not start.  This car is notorious for timing chain tensioner failure and has interference engine.  No compression in any cylinder.  Three shops have said timing chain, which basically means the engine is toast.  Yes, maybe the head can be pulled and repaired/replaced if we are lucky that pistons/engine not damaged,  but then we have a cost of $3k plus for parts and labor and a 140k mile bottom end.  Or  $4k+ for putting in a high mileage used engine.  And of course we still have a 140,000 mile 14 year old car.  We decided it was best to move on since there is other work the car needs as well.  She has only had the car about 6 months.  Ouch.

...
Just thought I would share our recent car failure and buying experience.

Lol, I own a 2010 CC (very similar to a Passat). @EchoStache, laughing with you, not at you! My car has the same timing chain issue, so you very much have my sympathy.

Your case made me reflect on the question "How come that didn't happen to me?" On behalf of readers, I hope I'm not out of line sharing incidents that helped avoid the tensioner trouble.

1. Reading about the vehicle and also talking to experienced friends about car repair, found in general that German cars including VW have a reputation that scheduled maintenance must be done on time. They wear very well if it's done, badly if not.
2. IIRC, adjusting the tensioner is dauntingly expensive (over $1,000 even at the competent mechanics if, like me, the job is beyond your own wrench). But doing it around 100,000 miles or so is part of scheduled maintenance.
3. I've owned the car since it was new, which was stupidly costly in my pre-Mustache era. Until the dealer warranty ran out, I got the scheduled maintenance done free.
4. When I reached a point after 80,000 miles / 10 years or so where the scheduled maintenance was expensive out of pocket, I yelped to find the best third party VW mechanic in my city and had them "check what the car needs". The only expensive thing was - I didn't have to adjust the tensioner yet, but it needed to be done soonish, and they could do it cheaper now by combining with the other maintenance. I did it now.
5. In other words, I prevented the timing chain from breaking by doing the once-every-80,000-mile-or-so maintenance.

Thoughts:
6. If I were buying used, I'd ask what maintenance had been done.
7. As far as I know, the big 3 expensive things that this car* is likely to need between 80,000 miles and 180,000 miles are:
  a. Adjust timing chain (tensioner)
  b. There's a spot where the oil enters the engine block (something like that) - it doesn't always break, but sometimes the seal goes bad, and because of the internal location, replacing it is a $2000-2500 job. Mine had that. (If all the easilly accessibe seals are tight, oil cap tight, hoses tight and you're leaking oil, you might have this problem!) I went through the fix-or-sell analysis and chose to keep the car, therefore did the repair.
  c. Major transmission repair. I don't know if these vehicles per se are "likely"/"unlikely" to need it, only that it's expensive and not uncommon.

In my own case, with a and b complete, I do expect another 5 to 10 years of good driving available with maybe only one repair in the $1000-plus range. The total cost of repairs and forgone sale cost is less than the $10,000 that I think you paid above, so keeping would be cheaper. In future, perhaps more reading about the car's specifics and determining which repairs were done could help in projecting which repairs to do preventively after taking possession of the vehicle, and also in realizing when future costs will likely be low because you completed the probable repairs.

My personal case is a bit different bc I have only 102,000 miles and another 10 years will likely still be less than 180,000 miles, but hopefully the preventive maintenace and the "cost for keeping" calculation are worth considering for future purchases.



*Passat and CC are close enough that I assume it's the same for both; will defer to more knowledgeable posters
« Last Edit: May 14, 2023, 02:16:05 PM by BicycleB »

reeshau

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Re: Buying a good used car in today's market.
« Reply #19 on: May 14, 2023, 03:25:10 PM »
Toyota Avalon. "If Toyota made a Buick".

Not a coincidence--it was designed in Michigan.

MattL

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Re: Buying a good used car in today's market.
« Reply #20 on: May 15, 2023, 08:40:26 AM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.
That's the way that lead me to my current car, i was looking for an used reliable 4x4 but Land Cruisers were simply too expensive here, after some research i've found the Hyundai Terracan (a truck based on the old gen Mitsu Montero), for 2000€ i can't complain.

I thought everyone in Italy that needed 4WD got a Dacia Duster?  When I visited several years ago, it seemed like half the vehicles on the road were Dacia Dusters.  We rode in a Duster Taxi in Milan and the dude made it HANDLE.  I don't think I've ever been around a roundabout so damn fast in a tallish crossover before. 

I, um, kinda want one.  I was surprised at how cheap they were, even brand new.

You should see how many Dusters there are in Iceland, btw i have to admit that Dacia (Renault) did a good job on that car!

sonofsven

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Re: Buying a good used car in today's market.
« Reply #21 on: May 15, 2023, 12:24:06 PM »
I'm starting to look at potential future cars for our offspring when they start college. Just casually window shopping.

Doing what I often do, start with less popular cars - cars that are reliable but not at the top of anyone's lists. I'm only considering 100K+ mile vehicles. Mostly four cylinder engines.

Needs to be interstate capable vehicles, no go-carts this time so no Miatas or Minis and probably no Fits or Fiats.

Toyota Avalon. "If Toyota made a Buick".

I'll expand on this.
I found one for my daughter when she turned 16.
It's a Toyota, so very reliable.
It was marketed and built for a more elderly buyer, so it is quiet and comfortable.
It is new enough (2000 in my case) to have airbags.
It is not sporty at all and will never be considered cool.
It is a larger car and so it feels solid on the freeway.
It gets ok mileage, in the mid to high 20's, which as fine as DD is in college and not driving a ton.
They sold for a fairly high price (for a Toyota sedan) when new but sell used for a considerable discount.

I told my DD all the online reviews said it was basically a car for old folks to carry their golf clubs in and no teenager would be caught dead in one.
Her response: "I love it".

As a parent, that must be very satisfying! Great job on the upbringing, @sonofsven
Thanks, I felt the same way!

sonofsven

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Re: Buying a good used car in today's market.
« Reply #22 on: May 15, 2023, 12:25:04 PM »
Toyota Avalon. "If Toyota made a Buick".

Not a coincidence--it was designed in Michigan.

I didn't know that, and that's just the kind of useless trivia I love.

EchoStache

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Re: Buying a good used car in today's market.
« Reply #23 on: May 22, 2023, 04:41:05 PM »
Update:

Tow truck came and hauled off the 2009 VW Passat(that isn't running), and handed us a check for $1945.  Written on Bank of America in the name of the company: Copart.  They advertise as Clunker Junkers with a google search. 

Daughter applied for the PA rebate of $1500; I'll update if/when this comes through.  There's a chance this will be $1,000 higher due to low income......depends if they base it off 2022 tax return or current wages.

As far as the $4,000 federal tax rebate, her income and tax liability for the year aren't 100% certain as she is a trainee at work and her pay scale will change somewhat.  Minimum income this year will be ~$30,000 but could go up to $40,000 I suppose.  So the tax rebate should be $2-$4k?

$26,000 purchase price
-$1945
$24,055 current net cost.

ChpBstrd

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Re: Buying a good used car in today's market.
« Reply #24 on: May 23, 2023, 09:05:44 AM »
It's really hard for me to justify spending $10k on a decade-old car with maybe 30-40% of its reliable lifespan remaining when you can just go to the Toyota dealership and order a brand new Corolla, completely stripped down but still luxurious, for about $22k. For this price, you can be reasonably assured it will last 15-20 years with maintenance, and the Corolla already has the cheapest cost of ownership of any car sold in the US, roughly tied with the Civic, Elantra, etc. The price per unit of remaining utility seems to favor the new stripped down car, and there are many beaters in the US market (SUVs, trucks, luxury vehicles) with a higher total cost of ownership than a brand new Corolla or Civic.

The best argument I can think of in favor of the beater is that you'll save a few thousand over the years on insurance, depreciation, and taxes. But with the beater, you'll need to be prepared to pay a couple thousand every now and then to fix timing chains, transmissions, head gaskets, radiators, etc. Plus with the beater you don't have to worry about door dings, scratches from roof racks, minor accidents, etc. The cheaper beater lifestyle involves accepting the whole deal and not balking when the "payments" and repair hassles come due.

reeshau

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Re: Buying a good used car in today's market.
« Reply #25 on: May 23, 2023, 09:29:02 AM »
I do think buying used can easily be "penny wise and pound foolish" currently.  Leasing was severely curtailed 3 years ago with the onset of the pandemic; those that did lease will often buy out their vehicle, because the financing is harder to get now.  Likewise, rental companies are still net buyers in the used market, taking away supply instead of their typical providing it.

Car lots are filling back up, but with the vehicles prioritized in the last few years--trucks and SUVs.

Financing is stingier, both in terms of approved purchase (due to increased interest rates, and therefore payments) and in terms of credit quality concerns as auto financing defaults are increasing.

If you can afford it and are looking at the right vehicle, @ChpBstrd 's math works out quite well.

Paper Chaser

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Re: Buying a good used car in today's market.
« Reply #26 on: May 23, 2023, 09:42:11 AM »
The best argument I can think of in favor of the beater is that you'll save a few thousand over the years on insurance, depreciation, and taxes. But with the beater, you'll need to be prepared to pay a couple thousand every now and then to fix timing chains, transmissions, head gaskets, radiators, etc. Plus with the beater you don't have to worry about door dings, scratches from roof racks, minor accidents, etc. The cheaper beater lifestyle involves accepting the whole deal and not balking when the "payments" and repair hassles come due.

The used car option is a lot like "self insuring". You're paying less upfront, and you'll likely have lower carrying costs with the understanding that you're on the hook for any expenses that arise. That saved money can then be used for investments rather than lost opportunity cost.

2sk22

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Re: Buying a good used car in today's market.
« Reply #27 on: May 23, 2023, 09:51:36 AM »
The used car market is bad but it just occurred to me that it may get worse in the future for a couple of reasons:

1. Covid/supply chain related production shortfalls - especially Toyota and Honda. Fewer new cars means fewer and more expensive used cars
2. Used EVs with degraded batteries - See https://www.kbb.com/car-advice/hybrid-ev-battery-warranty/ I’m not sure I would be willing to buy a used EV with over 100k miles

EchoStache

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Re: Buying a good used car in today's market.
« Reply #28 on: May 23, 2023, 10:37:53 AM »
The used car market is bad but it just occurred to me that it may get worse in the future for a couple of reasons:

1. Covid/supply chain related production shortfalls - especially Toyota and Honda. Fewer new cars means fewer and more expensive used cars
2. Used EVs with degraded batteries - See https://www.kbb.com/car-advice/hybrid-ev-battery-warranty/ I’m not sure I would be willing to buy a used EV with over 100k miles

Depends on the brand i.e. how good or bad the battery technology is.  I wouldn't buy a 100,000 mile Nissan Leaf and expect to get much range.

Tesla's fleet is showing average 88% capacity after 200,000 miles.

ChpBstrd

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Re: Buying a good used car in today's market.
« Reply #29 on: May 23, 2023, 11:22:55 AM »
The used car option is a lot like "self insuring". You're paying less upfront, and you'll likely have lower carrying costs with the understanding that you're on the hook for any expenses that arise. That saved money can then be used for investments rather than lost opportunity cost.
Good insight. $20-$25k is a lot to tie up in a car. In today's era of 5% risk-free rates, tying up that extra $10k costs you $500/year in opportunity cost. That money would buy a set of tires, a fuel pump, a diagnostic tuneup, or a brake job for the beater car. And we're not yet even talking about the depreciation of those extra $10,000 when invested into a brand new car.

Silrossi46

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Re: Buying a good used car in today's market.
« Reply #30 on: May 23, 2023, 01:37:39 PM »
You can buy a 4th gen maxima for 2500-3000 in my area with 150,000 or less miles that will run 300,000 or more miles with minimal efforts. 

I am with @ChpBstrd on this one.  I personally drive old police crown victorias as my daily drivers however it’s not for everyone.  I get them for cheap and drove them forever.  They take a beating like no other.

If mileage is a concern I would buy a 2007 ish Corolla and drive the wheels off of it.  They are timing chain motors and run forever.  Probably a 6-7000 investment in todays market. 

Just my 2 cents

lutorm

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Re: Buying a good used car in today's market.
« Reply #31 on: May 23, 2023, 03:44:33 PM »
I saw you already got rid of it, but I did the timing belt tensioner on my 2001 1.8T Passat myself in the driveway of our grad student rental. I believe it took a bit more than a full day but was not particularly difficult with a comprehensive shop manual. I dunno whether the FSI is a lot more complicated to work on, though.

Edit: oh I just noted that it already broke. Yeah pulling the head in the driveway might have been a bridge too far...

fishnfool

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Re: Buying a good used car in today's market.
« Reply #32 on: May 23, 2023, 09:22:55 PM »
From reports I've read, the new car market will be in a better place in 2025 with auto manufacturers catching up post pandemic supply problems. Hopefully that will help bring the used car prices down a little. It is ludicrous what people are asking for a 10+ year old car with over 100K to 200k miles or more.

I typically like to look at vehicles that have a good resale value and Toyota's and Honda's usually are #1 for that. My used Tacoma truck is still worth what I paid for it 5 years ago.

BicycleB

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Re: Buying a good used car in today's market.
« Reply #33 on: May 24, 2023, 11:58:21 AM »
It's really hard for me to justify spending $10k on a decade-old car with maybe 30-40% of its reliable lifespan remaining when you can just go to the Toyota dealership and order a brand new Corolla, completely stripped down but still luxurious, for about $22k.

Spending $10k on a decade-old car is an inefficient alternative. The OP's 2009 Passat, or rather a 2009 Passat in "good" condition, can be bought for roughly $4k from a private party. The cost efficiency of buying for $4000 including a thorough pre-purchase inspection, maybe $5k after initial repairs, is far better than $10k for the same car at the dealer. It's probably better than a new car too. 

Sources for price of used car:
1) My similar-ish 2010 CC has a private party value of just under $4000 when I checked last week on, I think, edmunds.com (I booked it as "3500" to be safe)
2) On kbb.com, using defaults for 2009 Passat and claiming "good condition" produces a private party resale price range of $2,924-$4,631 with a midpoint of $3,788.

https://www.kbb.com/volkswagen/passat/2009/komfort-sedan-4d/?condition=good&intent=trade-in-sell&mileage=150000&modalview=false&offeroptions=true&options=6417366%7ctrue&pricetype=private-party&vehicleid=227185


« Last Edit: May 24, 2023, 12:01:54 PM by BicycleB »

charis

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Re: Buying a good used car in today's market.
« Reply #34 on: May 24, 2023, 12:39:28 PM »
On top of the recommendation to get a "cheap" old toyota, I can't imagine (myself or my children) getting a 24k new car at 19.  I wouldn't call it a mustachian move, but your daughter is very lucky.

ender

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Re: Buying a good used car in today's market.
« Reply #35 on: May 24, 2023, 04:34:53 PM »
It's really hard for me to justify spending $10k on a decade-old car with maybe 30-40% of its reliable lifespan remaining when you can just go to the Toyota dealership and order a brand new Corolla, completely stripped down but still luxurious, for about $22k.

Spending $10k on a decade-old car is an inefficient alternative. The OP's 2009 Passat, or rather a 2009 Passat in "good" condition, can be bought for roughly $4k from a private party. The cost efficiency of buying for $4000 including a thorough pre-purchase inspection, maybe $5k after initial repairs, is far better than $10k for the same car at the dealer. It's probably better than a new car too. 

Sources for price of used car:
1) My similar-ish 2010 CC has a private party value of just under $4000 when I checked last week on, I think, edmunds.com (I booked it as "3500" to be safe)
2) On kbb.com, using defaults for 2009 Passat and claiming "good condition" produces a private party resale price range of $2,924-$4,631 with a midpoint of $3,788.

https://www.kbb.com/volkswagen/passat/2009/komfort-sedan-4d/?condition=good&intent=trade-in-sell&mileage=150000&modalview=false&offeroptions=true&options=6417366%7ctrue&pricetype=private-party&vehicleid=227185

Perhaps minor, but you're not talking about a 10 year old car in this case but a 14 year old car.

EchoStache

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Re: Buying a good used car in today's market.
« Reply #36 on: May 24, 2023, 04:43:29 PM »
Of course, everyone is free to make their own decisions on what car to drive, or what car their kids should get.  We spent $6,000 for the Passat two years ago, sold it for $2k salvage so $4k to drive it for two years.  It's not the greatest result, but not the worst.

We decided not to spend $2-$4k to fix it with another used, high mileage engine and/or cylinder head, resulting in up to $10k invested in a 140,000 mile car with poor fuel economy.  Car also needed both CV axles replaced soon.  Would have loved for the car to last another 1-2 years while the used car market improves and she saved cash for a newer car.

I feel good about this purchase....after the credits and rebates, it gets the cost below $20k.  3-4 years ago, that sounds terrible.  If you haven't bought a used car recently, your probably in for a surprise when you go try to get your high quality dependable $4,000 car that's safe for your teenage daughter to drive while your out of town.

Outside of just the purchase price, fuel cost will essentially be $0.  Even with a $100/month fuel savings driving the car for ten years, that's $12k saved vs an old, much lower fuel economy, less dependable beater.  Brakes should be much less frequent for maintenance as well due to regen breaking.

Car also has worthwhile safety features such as blind spot warning, rear cross traffic alert, etc etc.  This has a much great than 0% possibility of preventing an accident over ten years of driving with a brand new driver.

My older daughter in fact had just such an accident in the 2009 Passat before it went to the youngest.  Changed lanes, car in blind spot, at fault accident.

I think the 10yr cost of ownership of this under $20k, 30 mile all electric range, 55mpg PHEV with full factory warranty out to ten years, will be quite good, and provide a safe, reliable car in the meantime.

Assuming minimum $4,000 to repair/replace engine/cylinder head/timing chain, true cost difference to purchase the 2019 Ioniq is an additional $15k.  Fuel savings alone is likely to offset that.


Anyone that really wants to can buy the 2009 Passat, pay to have it fixed, drive it for ten years, and we can compare total cost to own both cars some day!