Don't buy a new car advice? What do you think?

Discussion in 'Prime Main Forum (2017-Current)' started by a1pharm, Oct 26, 2017.

  1. a1pharm

    a1pharm New Member

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    So I found this site while researching how to buy a used Prius V, and he had another post about why you shouldn't buy a new car EVER.

    Is this good advice, or is he an idiot?

    Never buy a new car – Manly Father
     
  2. huskers

    huskers Senior Member

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    I would never buy a used car. Just saw today where 1000s of cars flooded in all the recent hurricanes are being cleaned up and sent around the country as not flooded cars.
     
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  3. Sam Spade

    Sam Spade Senior Member

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    If cost is really important to you, then "never buy a new car" is good advice.
    A low mileage 2-3 year old vehicle is a much better value.

    If the cost of a car is "chump change" to you, then there is no good reason NOT to buy new.
     
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  4. Qmo

    Qmo Member

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  5. paprius4030

    paprius4030 My first Prius

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    I'm agreeing with the article. Last 2 cars I bought were certified used cars. There is plenty of current model certified used cars with only a few thousand miles on them for substantially less than a new cars. And in most cases the powertrain warranty on certified cars are longer than new cars and in the case of the Prius if your a savvy shopper you can get the dealer to throw in the platinum warranty which basically covers the whole car to 125k mi.
     
  6. Mendel Leisk

    Mendel Leisk Sand Pounder

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    I've never bought a used car. One motivation: all the threads here about using alternate fluids in the transaxle. Toyota recommends to never use anything but Toyota ATF-WS fluid in the transaxle.
     
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  7. a1pharm

    a1pharm New Member

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    I thought the same thing, but he wrote another article about buying a used car which would be damaging to a used car salesman. I think he's legit in that he thinks he's giving good advice.
     
  8. a1pharm

    a1pharm New Member

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    I agree with you: I like my used cars! The saved money is awesome, and you ensure you don't buy a new car that turns into a lemon (you can search this forum to find out what to look for with every model year and mileage combo). New car prices still aren't chump change to me, and when they are, I still won't get one.
     
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  9. paprius4030

    paprius4030 My first Prius

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    I think you have to differentiate between newer used cars and old used cars. I'm thinking we're talking about a used car with only 2, 3, 4 thousand or so miles on them so they basically wouldn't have any maintaince done to them. That's the used cars that are competing with new cars.
     
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  10. bisco

    bisco cookie crumbler

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    the largest depreciation happens when you drive off the lot. so a slightly used car can be a great value, if you are comfortable with the seller and maintenance.

    as the miles rack up, the risk of mistreatment grows. still, if you're comfortable with the seller and maintenance, some great deals can be had.

    for instance, my car has 54,000 miles, i drive like an old lady, and she gets regular maintenance. i paid 30k new, but someone will get her for 10k, and she's still like new. (almost:))

    but if you can't prove decent maintenance or accident free, the value may not be there.
    i prefer new, because i can afford it, and it eliminates those questions. plus, the full warranty is there. also, as cars age, they are never quite the same as new.

    sometimes (prius prime currently) new cars are a great value. if they are sitting on the lot with big discounts, rebates and tax credits, why buy used?
     
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  11. ForestBeekeeper

    ForestBeekeeper Active Member

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    I agree in the context of avoid buying any first year model of car.

    Let the manufacturer produce a model for a few years first.
     
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  12. bwilson4web

    bwilson4web BMW i3 and Model 3

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    This is the comment I posted:

    I got a $4.5k tax credit from my new, Prius Prime. There is no tax credit on a used car so that tax credit mitigates a big chunk of the depreciation … if I ever decide to sell it.

    Having the plug-in hybrid, driving EV is half the cost of gasoline. Then about half of those EV miles are free thanks to free chargers at local merchants. Finally, getting 56 MPG on regular gas when driving long distances helps on vacations and out of town trips. Thanks to higher efficiency, no Prius earlier than 2016 comes close and they aren’t filling up the used car lots.

    Bob Wilson
     
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  13. jerrymildred

    jerrymildred Senior Member

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    As a rule, I let someone else pay for the depreciation. BUT! If I had the cash available (and I don't), I'd fly up to the northeast and buy a Prime today.
     
  14. jmarkd7

    jmarkd7 Member

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    "largest depreciation occurs when you drive off the lot."

    I think this depends on the make. With Toyotas it doesn't apply and that's why I think new is the way to go: I have owned two Toyotas for less than three years and sold both still under factory warranty for an effective $2k/year. (Bought a Corolla $15k, kept 1 year, sold for $13,300; bought a sienna $30k, kept 3 years, sold $24k).

    It seems to me dealers make small margins on new cars and huge margins on "certified used." This is the CarMax business model. I was offered $7500 in trade on a used sienna that I sold myself on Craigslist for $11,250. The dealer would have "certified" it and sold it for $14,000 minimum. Sure, Craigslist is a hassle, but it's worth it to me. I'll trade some hassle for $3-4k.

    Another thing to consider is you can usually get 0% financing on new cars. Best I can see on used is around 3 percent. So that's worth a couple grand depending on the price and terms.

    Posted via the PriusChat mobile app.
     
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  15. Tideland Prius

    Tideland Prius Moderator of the North
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    It really depends on your comfort level (of a used car), your finances, and the most subjective of all, your preferences. (among other things).


    Pro (new):
    • New car warranty
    • Usually the latest safety, comfort and entertainment features (not always better but...)
    • Can be good value (the first year is usually the cheapest... MSRP goes up each year. Also, buying year-end of the first year is good too - clearance discounts, or buying year-end of the last model year)
    • You know the full history since you're the first owner
    • If you're the type of person that cares for your car, going new is good
    • If you plan to keep your car for a long time such that depreciation costs isn't a factor
    • You can choose the colour and packages to suit your needs
    • Can take advantage of new car incentives (either cash rebate or 0% financing)
    • Servicing/maintenance is sometimes included for the first few years

    Cons (new):
    • Upfront cost is much higher
    • Depreciation rate is high if you intend to keep the car for a short time

    Pro (used)
    • Lower cost
    • Good value (esp. if you can find a 2-3 year old one with some warranty left)
    • Still reasonably new technology & safety features (if you buy a car that's 3 years old)
    • You can rotate through cars with lower cost (buy them cheap, run them a few years, sell them and repeat)

    Cons (used)
    • Choices are limited to what's on the market (so can't be as picky)
    • Full (service or collision) history may not be available (could be a franken-car)
    • Prices fluctuate depending on market conditions
    • Need to account for potential service needs (e.g. fluid replacements or tires) after purchase
    • Need a complete sanitation clean of the interior (that's just me. Your tolerance may be lower).



    There are always caveats so I don't think it's easy to just broad brush "oh never buy a new car" or "never buy a used car".

    For example, what if he bought that 1998 Camry new and kept it to 2017? Would his cost be the same? higher? lower? It's spread out over 19 years vs. 9 years and he would've enjoyed a new car and be the one and only owner of the vehicle.

    But if you want a luxury car, those depreciate like a rock and if you're fully understanding of the costs of maintaining one of those machines, you could pick up a 5-year old one for more than 50% of the cost. (Again, as long as you've got the cash to maintain them).
     
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  16. a1pharm

    a1pharm New Member

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    I disagree with you that depreciation doesn't occur on Toyota vehicles, but I totally agree with your stance on Craigslist - the hassle is ALWAYS worth it when selling your own car.
     
  17. PT Guy

    PT Guy Senior Member

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    Buy whatever you like. There is no "right" answer for everyone. My neighbors never buy a new car. They buy a not-too-old used car. That big initial depreciation was paid by someone else. I like to buy a new car and keep it a long time. I get exactly the model, color, accessory package, and newest technology that I want. I bought a Volvo new and kept it 10 years and 200,000 miles. I bought a Tundra new and kept it for 16 years. Buy whatever feels right to you.
     
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  18. jmarkd7

    jmarkd7 Member

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    I guess to clarify I mean Toyotas depreciate on something a lot closer to a straight line. $2000/year has been my experience. I can't say no to zero apr incentives and the thought of paying interest (as I do on my Prime Premium, 1.9%) turns my stomach.

    So if you buy a used camry for $12k, in 3 years it will be worth $6k. If you buy it new at $20k, in 3 years it's worth $14k. As long as your credit's good, go for the new car.

    Posted via the PriusChat mobile app.
     
  19. Sam Spade

    Sam Spade Senior Member

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    With Toyotas it still DOES apply, just not to the same degree as some others.........so yes it does depend on the make and the model.

    0% financing is a marketing "tool" that is often deceptive because they typically will not offer any decent up front cash discounts off of MSRP and you end up paying more up front and the overall total is more.
     
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  20. mmmodem

    mmmodem Senior Taste Tester

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    I wish Toyota's depreciation is a straight line but it's a steep curve like everyone else it may be a little less steep but that's it. I do love the all the opinions on how a used Honda and Toyota costs as much as new. It just isn't true. But your justification for buying new requires it to be

    I agree with the article. Never buy new. I got $4500 total in rebates for my PiP but it still cost me $26k after all is said and done. I will never recoup that cost versus buying a used 2005 Prius for $4000. (I actually bought a used 2005 Prius a few years after my PiP because I liked it so much.) But I bought the PiP because I was allergic to money and the only cure was free car pool lane access.

    I did recently buy a used 1 year old Mitsubishi Outlander for $10k less than new and 26k on the odometer. So pending any allergies in the future, I'll have 2012 Tesla Model S in my driveway in a few more years.
     
    #20 mmmodem, Oct 27, 2017
    Last edited: Oct 27, 2017
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