Buying Used vs Buying New (Car)

[Sliver]

Originally Posted by burn_this_city

Depends on the vehicle. When I bought my truck I bought new since I would be modding it and I didnt want something that someone else had bagged on. Lease backs can be risky especially if the person didnt take care of it.

Buying new then modding seems most ridiculous of all. I assume you're talking substantial mods that would void your warranty, in which case I can't imagine why you - moreso than a typical car owner - wouldn't have gone used.

[Dion]

My current 05 Escape was a leaseback. 2 years old when I bought it and it still had the balance of the factory warranty. I checked the service records before I bought it and have had zero problems since. Will never buy new again.

[Fozzie_DeBear]

I've always bought used and its mainly b/c I just get way more car for the money.

Which would you rather have?
A-Four year old Japanese car with all the bells and whistles you could want (leather, primo stereo, epic sunroof, turbo) and have to pay for any repairs
B-A new Kia/Dodge etc. econobox with a warranty

After 5 years of driving I think the depreciation on both would be a wash and the difference in financing would maybe be $1000 total.

[Sliver]

Originally Posted by HOOT

Says you. Some people, like myself, enjoy knowing the history of something when spending that kind of money.

Spoken like a guy that has more parental financial support than most.

[Fozzie_DeBear]

Originally Posted by HOOT

Says you. Some people, like myself, enjoy knowing the history of something when spending that kind of money.

Pretty expensive way to get peace of mind...

[Dion]

Originally Posted by HOOT

Says you. Some people, like myself, enjoy knowing the history of something when spending that kind of money.

The dealership keeps all service records of vehicles worked on. A simple check of that will tell you how well the vehicle was maintained. Especially ones that were leased.

[Dion]

Originally Posted by Fozzie_DeBear

Pretty expensive way to get peace of mind...

Agreed. I'd rather the original owner pay for the bulk of the depreciation.

[Winsor_Pilates]

Unless I'm filthy rich, I will never buy a new car in my life. No offense intended to those who do, but I think it's the single stupidest financial decision most people make.

I've spent money on dumb things too, but a new car is where I draw the line. Especially since I can get a better car for less money, by going a little older.

Also, you can get extended warrantees on cars a couple of years old as well. My folks recently bought on 08 Murano and added on a 5 year warranty from the dealership for a little extra. They had all the coverage of a brand new car, all of the history on the car and saved about $15000 from what a new one would cost. No brainer

[Teh_Bandwagoner]

I figure the only way to get top value for your car is just to never sell it and drive it to the ground, new or not.

[HOOT]

Originally Posted by Dion

The dealership keeps all service records of vehicles worked on. A simple check of that will tell you how well the vehicle was maintained. Especially ones that were leased.

Do maintenance records show how the car was driven by the owner for the previous years? No. Someone can still beat on a car but keep up its maintenance records. So if the car is only 1-3 years old it might not show that wear and tear on your 3 month check-ups.

[MickMcGeough]

Originally Posted by HOOT

Says you. Some people, like myself, enjoy knowing the history of something when spending that kind of money.

Yeah, I can understand that. But that's exactly my point. You're spending thousands on something completely intangible and not directly related to the value of the vehicle. You're not paying for a vehicle, you're paying for peace of mind or that new car smell or just being able to say you drive a brand new car.

But as an investment, it's as bad as they come.

[HOOT]

Originally Posted by MickMcGeough

Yeah, I can understand that. But that's exactly my point. You're spending thousands on something completely intangible and not directly related to the value of the vehicle. You're not paying for a vehicle, you're paying for peace of mind or that new car smell or just being able to say you drive a brand new car.

But as an investment, it's as bad as they come.

How is a used car a good investment? Any vehicle purchase is a bad investment.

Thousands of dollars in the big picture is not a lot of money and I'd rather buy a car and have the latest in technologies. The difference between now and three years ago is huge in the car industry.

[kevman]

Originally Posted by REDVAN

Think about what I did... for example, the car I bought with a sticker of 29500 for 17000 is now worth MAYBE 10000. So it depreciated 1200/yr since I've owned it, and 12000 in the first 8 months.

My point is that if you are looking for bang for your buck, buy a car like I did, and follow Cowperson's advice about looking around- it took me 3 months to find my car. If you just want a cheap car, then buy 2-5 years old. But there's deals to be had.

Yeah but said deals don't always exist. When I bought my new truck the used equivalent that was 2 years old w/ 20,000km's was only 15% less after the dealer cash incentive. Further more the new truck had a $1,500 option package that was not available that if eliminated actually only brought the difference to 10%. Even looking on the autotrader now the closest truck to mine is 3 years older w/ 50,000km's and is only 20% cheaper then what I paid.

So would you give up 2 years of warranty and 20,000km's to save 10%? If you consider an average life span of a vehicle before it requires some minor/major work to be 200,000km's you just gave up 10% of the vehicles life to save 10%. Furthermore if you consider the warranty was expiring 2 years earlier the potential of being faced with a major repair earlier during ownership is increased.

[GreatWhiteEbola]

Originally Posted by Dion

My current 05 Escape was a leaseback. 2 years old when I bought it and it still had the balance of the factory warranty. I checked the service records before I bought it and have had zero problems since. Will never buy new again.

Leased cars may have "maintenance" done. It is not an absolute requirement. I treat my leased vehicles far different then the financed ones. I'm going to give it back I don't really care as much. I may cover the depreciation, however, I am taking advantage of every little bit of it.

A for-instance, I get stuck, I would gingerly rock my financed vehicle, the leased vehicle would be tranny slammed with extreme prejudice.

Just saying lease-back is not a guarantee.

[kevman]

Originally Posted by Teh_Bandwagoner

I figure the only way to get top value for your car is just to never sell it and drive it to the ground, new or not.

This was always my philosophy. I bought new and intend to own it for 15 years. I spent way too much time looking at ownership costs and figured there was no better way to get the most bang for your buck...

[Sliver]

Originally Posted by HOOT

Do maintenance records show how the car was driven by the owner for the previous years? No. Someone can still beat on a car but keep up its maintenance records. So if the car is only 1-3 years old it might not show that wear and tear on your 3 month check-ups.

In my experience if somebody is beating on a car it shows in other areas as well (cigarrette burns, stains, dents/dings/scratches, scarred wheels, etc.) let alone it usually won't feel as tight as a non-bagged-on version. I think I'm like the car whisperer, though. I always can hear weird sounds or find weird marks on a car that most people wouldn't notice.

[Dion]

Originally Posted by HOOT

Do maintenance records show how the car was driven by the owner for the previous years? No. Someone can still beat on a car but keep up its maintenance records. So if the car is only 1-3 years old it might not show that wear and tear on your 3 month check-ups.

Dealerships do a complete inspection of a vehicle before it's put on the lot for sale. If that's not enough for a buyer they can take it to an independant mechanic for a full inspection. Either one will be able to tell if the vehicles been beat on.

[Dion]

Originally Posted by GreatWhiteEbola

Leased cars may have "maintenance" done. It is not an absolute requirement. I treat my leased vehicles far different then the financed ones. I'm going to give it back I don't really care as much. I may cover the depreciation, however, I am taking advantage of every little bit of it.

A for-instance, I get stuck, I would gingerly rock my financed vehicle, the leased vehicle would be tranny slammed with extreme prejudice.

Just saying lease-back is not a guarantee.

If the vehicle is missing some if it's maintennce records I'll move on to another vehicle.

A simple test drive will tell you if the tranny has been abused also.

[Sample00]

Originally Posted by Dion

Dealerships do a complete inspection of a vehicle before it's put on the lot for sale. If that's not enough for a buyer they can take it to an independant mechanic for a full inspection. Either one will be able to tell if the vehicles been beat on.

AMVIC (Alberta Motor Vehicle Industry Council) makes it mandatory now that all used vehicles come with a Mechanical Fitness Report and that the report is no older than 2 weeks. Dealerships are required to provide this report to you upon request.

[GreatWhiteEbola]

I tried selling a car this summer, I realized that the car was worth more to me then anyone else. I leased it with 14kms on the odometer did all the maintenance myself, even during warranty period. I bought out the lease, cause it was such a great car. I guess I don't like the risk, never had good luck with used. Always had no worries with new.

Now, while driving my unsold car, with no monthly payments. I am able to put away some money away every month, the expectation is, buying a new car with a healthy down payment. Porsche Cayman, slightly tuned by Techart!