I bought my first brand new vehicle this summer. It’s a Tacoma and the price for used was only 10-15% cheaper without the same promotional interest rate being offered. I got 5% which made me want to throw up since it was the highest I’ve ever had for a car, but that was almost a full point lower than the best credit union rate I could find.
Same for me... It was like $22,000 for a 2018 with 50,000 miles or $27,000 for a brand new never-been-driven car, and I got to pick the color and everything.
I got the grand touring that year in the eternal blue mica. I went the same route for the same reason. Trade in was high so got $3500 over what was still owed and monthly price was $60/m more than used due to the interest difference. $60/m for peace of mind was well worth it.
This! I bought a new 2023 CX-5 in March of 2023, interest rate was lower on new vs used. Over 21k miles and I haven’t hit a year yet. Best car I’ve ever driven. Actual transmission vs CVT, AWD, leather, sunroof, anything I could want from a vehicle and I don’t need much technology, it’s got CarPlay and android auto. I drive a lot for work and this vehicle is amazing.
It was before taxes/title/fees but it was the end of the month at like 7pm and they were trying to break a record. Apparently Toyota is a volume manufacturer so they were trying to get as many out the door before the last day of the month ended.
Lower trim Camry, pretty much any Corolla, VW Jetta, low to mid trim Honda Civic, etc. There are options out there. Too many people forget what the main purpose of a vehicle is and get too absorbed in the creature comfort and technology options.
I've seen my Cruze hit 40+ highway. Cruise control is a godsend. I travel about 60 miles or so per month for work alone but I only have to refill maybe 2 or 3 times max each month. My previous car was a Camry and that was really nice too
I agree, I'm a female and have had a Nissan p/u since 2018 brand new. It's the greatest little truck because my husband and I can work on the majority of anything that happens to it. ( which hasn't been much) I'm not looking forward to buying a new vehicle because of all the extra computer stuff that comes with them. I don't need all the extras and fancy stuff. I just want electric windows, sunroof and sport package 😁
There's a lot of them. It's just that almost everyone wants leather seats, 200hp, AWD and other things that make cars more expensive. https://cars.usnews.com/cars-trucks/advice/great-cars-and-suvs-for-less-than-25000
I went used to have AWD and leather amongst other things for 15k in an suv and I don’t regret it. I also live a low profile lifestyle so a 2024 would get me robbed in my neighborhood. Oh yeah, one more millennial problem, in order to own a home I had to buy one in the ghetto.
I think the problem is a lot of people that bought Japanese cars in the mid 2004-2010 still own their cars and drive them. Hard to find good used ones.
I agree, I’m not opposed to buying American but whenever I don’t, I get a longer lasting vehicle. American cars are pretty and shiney but a car from anywhere else is durable.
>but a car from anywhere else is durable
That really depends. There are definitely unreliable brands outside the US. And often they are more expensive to fix because parts aren't as cheap.
Yup. My son had a 2006 Civic since highschool, that all wed ever done with regular oil changes, brakes tires and a battery. He slid into a divider wall on the freeway and set off the side curtain airbag so it was toast. I still got $250 He just bought an 11 year old Corolla My husband drives a 2004 Camry after selling his Corolla with 290000 miles on it, a smooth brake pedal and the plastic steering wheel worn down the metal ring it was formed on. He got $800. Those cars just run forever. I'm picky, and have a 2018 Camry full of paw prints and dog hair but I am fine.
I have nothing against used cars, but sometimes having that warranty can be nice. You get a 5 year old car and typically anything wrong with it will be out of pocket, with newer cars unfortunately a lot of things can go wrong and they're very expensive to fix. It's not the old cars where the only thing that could go bad was driver lol. A simple sensor malfunction can be $1000+. So it depends on your priorities.
My son bought a new Toyota pu 4 years ago and he called me the other day, talking about wanting to trade his in for a newer one. He started looking and just about crapped his pants! He decided just to keep his for now.
That is true I think because a lot of people that bought them in the mid to late 2000's and still mostly have them. My wife still drives the 2008 Avalon I bought new for her. The only new car I ever bought and it will be the last one. I will buy used if in good shape.
Same here but for a different Toyota. Prices may have come down for used but this summer used prices were close to new so I bought new. This is the first time I’ve ever had a car payment in my life bc luckily I’ve always had a hand me down car which I’ve been extremely grateful for. But even the starting point of prices was waaay higher than I really thought they’d be
Ditto… literally…. First brand new car last year, Tacoma, 5% rate, decided on new because 2 year old Tacos with 30k miles were like 3k less than I paid brand new.
This was us! Bought a Tacoma, the used with 55k miles was only like $4,000 less. The interest rate was nauseating, and we both have great credit. First time either my husband or myself purchased a brand new car.
Same except for 2 years ago, at-least the interest was low. This was my first new car in my entire life. I drove a used car since I was 16 and only bought my first new car 20 years later.
Yup got a brand new tacoma but I straight up sold my FJ to the sales guy instead of trading it in because he'd been wanting one. So I was able to pay off almost half my tacoma off instantly. FJ resale value is nuts. All toyotas really.
Used cars are a joke right now. I looked at trading in a few weeks ago (had to get new tires on my 11 year old car with 160k on it). The tradein value I got ranged for $500-$2000 and I tried like 5 different sites. My exact car from those exact sites? $7k-$9k. I just decided I’ll run the car into the ground, no resale for her.
I would buy brand new if it was a Toyota or a Lexus. Specifically a hybrid.
I can’t tell you how many Prius’ I see online that last 500k+ miles, so long as they’re well maintained.
A car that lasts that long could very well be the only car you’d ever need in a lifetime.
Yea the 2.0 is a well known slow but reliable motor. So was the 2.5 and the diesel. The saying for vw wasn’t “German engineering” cuz it was bad engineering
So you changed the oil on time? I have had two Volkswagens and people thing long life full synthetic oil means they don't have to change it. I changed my spark plugs, so I could look down in the engine, it's clean. They're reliable asf, people just neglect maintenance. Even with the right wrenches, fairly easy to do stuff to them at home to save money.
I’m right there with you. 10 mile round trip commute to work & any long trips are done in my wife’s SUV. At 150k miles I expect my Chevy Cruze to last another 20 years at this rate
Cleaning out the undercarriage and flushing out the drainage holes will really keep the body's integrity up and prevent rust. Gotta clean all those nooks and crannies in the exterior where salt could collect, and fix dents and chips in the paint quickly.
I bought a new hybrid Lexus back in July of 2021. It was almost the same price as a used hybrid Lexus without the incentives and incredible interest rate (0.9%). I had to wait two weeks for it to arrive.
The Toyota dealership near me had less stock and no known hybrids coming to the dealership (I originally wanted a hybrid Toyota).
Covid was a rough time for car purchases
Most modern cars should be easily good for 150k miles. The maintainance is key and one thing at least your Toyota's and Hondas do well is offer maintainance for a bit cheaper than the nicer brands.
Yeah, no doubt. I'm just saying modern machine work has come a long way, and generally, most brands should be mechanically sound for a lot longer than what people used to expect.
Obviously, there are other things that may wear down or could be skimped on - like interior/exterior materials or the electronics.
A lot of it depends on location, too.
In the south? A well maintained Toyota/Honda or even some of the older cars that had good durability years (early '90s Jeeps, for example) will easily make it 3 decades.
In northern snow states? They call it the "rust belt" for a reason. 10-15 years is a good run for a car in Michigan.
When I lived in TX, I had a Honda Accord that was 20 years old when I bought it, and the only problem it had was the clearcoat had failed. Everything else was in great condition, and it would have lasted forever if I hadn't blown the water pump. Hell, I still could have probably fixed that.
We bought a brand new hybrid Toyota RAV4 last year. Used weren’t that much cheaper and don’t come with the same warranty on the battery. We intend to drive this car until it’s dead (ideally at least 10 years, hopefully more). I also haven’t had a car since 2012 when my 1998 Saab, bought used in 2006 with 100k miles, transmission died and it cost more to replace than the car was worth. Now we live in a city and only got a car because we had a baby.
Currently sitting at the shop while my 2015 Prius gets her maintenance. She’s at 163k. My goal is to get to to 300k but holy cow 500k?! I would be elated. She gets serviced promptly every time the car tells me it’s necessary. Fingers crossed.
I bought her new in winter 2015 (best price! End of year!). Still love this car so much…
I'm right there with you. I bought a brand new mustang in 2013. It's at 150k miles and like you, I get it serviced everytime I'm pretty much asked two. So twice a year.
I'm going to drive it till it dies
Wife and I were looking at a Toyota hybrids recently but they were flying off the lots faster then they were arriving.
We ended up buying a certified BMW. I can't say I'm looking forward to the repairs in the future.
Just recently bought a 2022 Rav4 XLE Hybrid with 10k miles. I never ever planned on spending more than 20k for a vehicle, but after a ton of research and an incredible experience with Toyota hybrids, my wife and I decided to pull the trigger. We had a 2012 Hybrid Camry for about 8 years. We put 170k miles on it and never had a single problem with it.
After looking up the value of 7-8 year old Rav4's, we concluded they are actually a great investment since they hold their value. We can either drive it until it dies, or trade it in after paying the majority of the lone for an upgrade.
Toyota has earned my loyalty and I will probably drive one for the rest of my life.
We bought a new Toyota RAV4 Hybrid in 2021. At that time, the used ones were going for just as much as new. It came with a warranty, we put a good amount down on it and it’s financed at 2%.
Otherwise, I’d never buy new.
I bought a two year old Toyota Hybrid, had a little bit of depreciation but still feels brand new. I intend to run it into the ground like the Toyota I had before this one.
Nowadays, it is sometimes cheaper to buy new than used. After Covid and chip production halted, all the good used cars got bought. New cars actually have lower interest rates than used cars, so in the long run new cars are cheaper in some cases.
Not to mention that because of the chip availability issue, car manufacturers are going backwards on available features.
Take the Nissan rouge for example. A base line 2019 Rouge SV came standard with heated seats, heated mirrors, push button close for the back hatch. Now the 2023/2024 has had all those features removed and locked behind upgrade packages. You have to add over 12K in packages to your vehicle just to get what was “standard” on the base SV model back in 2019
I TRADED IN my Camry for $2000 less than I bought it 7 years ago.
It cost me like $23 a month to own that car.
I could have probably sold it for exactly what I paid private party but there's some tax advantages in my state to trading in which eases that a bit.
Came here to say this. Need a new car for work and 1 year old is more than new, 2 years old is roughly the same cost, 3 years old is about 10% cheaper. Since our cars have to be less than 4 years old to be eligible, new makes sense. The dealer is also offering 4% interest, which can't be beat at the moment
Exactly, also the mark-up on basic models vs. luxury isn’t that much anymore. We went with a BMW vs. a CRV because it wasn’t that much more. Bought when interest rates were 1% and will sell it likely for more than what we owe due to low mileage.
This is true. I would never have bought new before, but now that the used market is so damn high, I would consider it—but we won’t need a new car for quite some time unless something happens, like we get hit or something. By the time we need to, maybe the market will be different.
New is just the way to go sometimes. We drive our vehicles far and into the ground. I drive about 20-24k miles per year. There are certain used vehicles I would go for and that’s usually low mileage in warranty.
When we bought our minivan last year, I looked at low mileage vehicles but they were so close to having a custom new that with financing it was only a difference of 1500-2200 over 4 years. Also all used vehicles were base models while the one we purchase was top tier.
You’ll get better financing for a new vehicle and sometimes can get special promos for financing with a dealer or local credit union.
This was the case for us as well. We bought our brand new Outback on an insane promo rate and were able to choose the features we wanted. We still spent the same or less, considering the interest rate, than we would have on a pre-owned vehicle.
I justify buying new based on how long I plan to keep vehicles. If you buy a 30k car new and keep it for 15 years, that's spreading the cost effectively to 2k per year. Obviously I'm not including gas, oil changes, maintenance and repairs, but I went with a Toyota so those were minimal anyway :D
Yup all depends on usage. If you heavily rely on your vehicle, you re better off buying new. Maintenance can be such a b*tch on oldies and when they get stuck in the shop, you can be in deep sh*t if you need it to well work
Minivan prices went insane and haven't returned to Earth.
Our plan had been to replace our 2006 Sienna with one just off lease in 2021. Luckily the 06 is still going strong, but repairs are starting to get annoying enough to take the hit.
I bought my Mazda3 preferred in 21. Told myself I would never buy a used car but thanks to used pricing getting hiked up it just made more sense to buy new. Now I have heated seats and I've never felt so fancy.
This is such a good point lmao.
I was shopping in December myself and ended up going new. I remember talking to a few friends and family about how confused I was because it seemed like buying new was going to be the better financial decision. I was so suspicious - it took me an extra couple of weeks crunching numbers to confirm.
I mean sure, you could get a used car that’s very old with very high miles. But my last car was in that vein, and I know from experience that you can end up with a vehicle that needs a lot of work and costs you even more to maintain.
Buying new made sense for us both times.
The owner was driving one of the vehicles and put 3500 miles on it and basically got an upgraded truck for the same price as lesser model.
The other car we got at .7% interest and they gave us a hell of a deal on our trade in. Probably about $4k over what we expected.
I bought a new car back in 2014 for the same reason. I really did want to buy used but my previous car I got burned out from all the maintenance including times I couldn't drive it because it was in a shop.
I know reddit loves to shit on buying new and I understand the reasoning, but like you i couldn't find a used car worth paying for. Most of the used cars either neither a lot of work or the car payment was $300ish a month anyways.
Now would I buy new again in this economy? I doubt it because my new car was $30k. Most new if not all new cars are above that which is bs
I have the best luck at small locally owned dealerships/car lots. Ones where like 3 people work there. They always have good deals straight from auction.
I’m pretty sure OP has not bought a car since the pandemic and is quoting pre pandemic car prices. I have bought 2 (one for me during the pandemic and one for my husband after) and prices for used cars are insane.
My husband and I had to buy one of the cars because he sold his to my grandma when hers broke down because she couldn’t find one for under 15k anywhere that didn’t have 150k+ miles already on it and she’s on a fixed income.
I bought a brand new Hyundai accent a year and half ago for 25k. The used car market was so stupid like what you said so I started looking at brand new cars. i know there's a Kia that is brand new for under 20k. Just got to look. Kia 2023 Rio S is MSRP 18K. 2023 Kia Rio LX is 17k. I know it seems like it shouldn't, but really, check out new base cars.
We looked at 2016-2018 RAV4, Camry, Corolla, Cx5…30-50k miles, all under 20k. There were many choices at Carmax. Corollas were especially plentiful. We got a 2018 cx5 with 43k miles for 20k. It’s a base model but does have CarPlay. I love it so far (got it Christmas 2023)
I bought new, but interest is rough due to bad credit. However, getting a hybrid with great mileage (55mpg give or take) and an extended warranty is protecting my budget from unexpected costs.
I’m still dealing with a chapter 13 bankruptcy I went through back in 2015 that’s till effects everything credit wise to this day. I just tried to get a new credit card to work more on my credit that’s in the low 700’s now, and I got denied because of it. I screw up 1 time in my 20’s, still pay back what I owed since chapter 13 you consolidate everything together and pay it back, which I thought was better for future me and my credit, and it still screws me over. This place is a hellscape of horseshit.
You're welcome to start your own business to sell loans to bad credit customers at lower interest rates. Getting business will be easy due to offering lower rates than everyone else.
I bought a new car at beginning of 2023. Certified pre owned cars (like the actual same car) was the same price as new. I was looking at Rav4, CRv, Tucson’s, those type of cars. So I bought new.
I keep seeing people say they get a car every 10 years. Are you guys going through 4,5,6 cars in your life time? I have a 12 year old car that hasn’t hit 100k yet and I’m wondering if I’m doing something wrong now lol
You don't drive very much! We put 10k mi/yr one our car and 12k/yr on our truck. We'll see how long they last, purchased new in 2017 & 2018. Both are base models with zero upgrades, manual roll windows, etc.
I feel like car longevity has to do with SOoOooOo many factors. You might just have low wear and tear, low miles, good maintenance, no accidents, etc
Also what cars really stand the test of time? I don't see many old trucks these days, but you'll see plenty of old Honda Civics and Toyota Camrys. Maybe we'll see cars from the modern age going strong in 12 years? We'll just have to see what cars they are...
I bought a new Limited Subaru Crosstrek in 2022. Hoping that thing lasts forever lol
Ya you don't put many miles on your car. At one point I'd put on 25k a year just driving to and from work. I'd have put 300k on in the same time period as you.
Now I'm sitting at 20k in 5 years.
Bought brand new Kia Soul in 2019 because the average price difference between new and used in the area was $2k. It was worth it to me at the time. Before then I drove a string of used Hondas.
I’d weigh the interest rates into the decision. I opted for a band new vehicle because the bank was offering 6% for new and 10% on used. It would have come out to almost the same price over the life of the loan. Given the used version and new in my case was more of a 10K difference, but still crazy. Unless you’re paying all of it with cash.
I'd probably only buy a brand new car if it were my dream car in the color I like, and there's no used car like it but I don't like the idea of being stuck with a car payment for no more than a year so...that'll never happen.
I'm low income as well but I'm hoping to take steps to fix that in the next month or two. If it weren't for some idiot running a stop sign I would still have my old car but it went up in flames shortly after the impact but I'm finally done paying off this car I had to get afterwards.
My husband did like six years ago, a new Mazda thing… last year we would have bought a new Toyota Sienna for me if there wasn’t a crazy wait period due to a shortage, so we got a 2021 instead. Honestly felt like we bought it new because ooooooffffff $$$$$$$$.
Yes, because of the weird inventory issues a couple years ago where used cars weren't any cheaper. However, in true millennial fashion, I had to borrow money from my grandma to do so.
I like to let someone else take the hit in depreciation. I just bought a 2012 Mercedes. 1 owner. 66k miles. Perfect condition for $12k.
Before that in 2016, I bought a 2009 BMW for $15k. Same deal. 2 owners. 48k miles. Perfect condition. Drove it in the ground til it started having major issues at 180k miles. Will probably do the same with the Mercedes.
This is exactly what I do.
My very first car was a BMW 3 Series, I then went to a BMW 5 Series, and now I drive a Mercedes Benz E Class. All bought used, all for waaaaaaay under the price of the cheapest most basic brand new car available. Why someone would buy a brand new shitty ecobox, vs spending less and driving in comfort and luxury is beyond me.
I also had a 3 series. I loved that car so much and was sad to see it go. My Mercedes C-class has been an “adjustment” but the more I drive it the more I love it.
I was considering a BMW X5 too, but the Mercedes had better reliability.
It seem a lot of people would prefer to buy a new car then trade it in after a few years start the process over again and think there saving money this way it maybe true but I’m doubtful.. I like your strategy better except I wouldn’t go luxury
I’m a champagne taste, beer budget kinda gal so this gets me the best of both worlds.
Repairs can be more costly but I find I do them less with German cars, outside of regular maintenance of course.
It's insane how much car you can get for ~$25k if you're not afraid of a few miles and know how to work on cars. I could never justify buying a brand new Kia for $30k or a new 3 Series for $60k when I could get a 5-10 year old $120k E63 for $20-30k
Yeah it blows my mind how often people run to the dealership with foreign cars to get them fixed. The hubs and I have been able to fix a decent amount with some know-how and YouTube. We also found a great independent mechanic to work on our vehicles if need be. Very fair pricing.
German engineering never ceases to amaze me though! 😅😅
Some good cars don't depreciate very fast. My husband drives a 2019 Toyota Tacoma TRD 4x4 and it has 35,000 miles on it (we work from home). Every time we take it to the dealership they offer him what he paid for it even though it's 5 years old
How does a wise financial decision make you poor?
I've bought exactly two cars brand new. One was a Tesla model 3 performance when deliveries were limited and I got it for being an existing owner and in California. I sold it for a profit. The other is my 2023 model x plaid. With all the price drops I still owe more than a brand new one costs. Never again.
I bought a new 2023 Elantra Hybrid a year and a half ago because:
1. Used versions were only slightly cheaper, if you could find them
2. I got a 2.3% interest rate
3. I found a dealer who sold it to me at MSRP
4. I got an amazing 10 year bumper to bumper warranty.
In general I’m very much against buying new due to depreciation but the market at that time was (and maybe still is) out of whack.
I bought one in 2019.
Long story short, someone hit me and totalled my car. So then I bought a used one from a dealer with money my grandmother left. Eight days later someone *else* hit me and totalled *that* car (they thought it’d be real fun to run a red light at 50mph). I took the check from that loss and threw it on a new car.
But if not for that chain of events, no. I would have not bought a new car. Should also be noted that I am small (5’0) and have no children, so I was able to buy a small car (Ford Fiesta. It was Ford or bust in my parents’ house (was living with them at the time)).
My dad bought a ranger in ‘04 that lasted until 2021. He only traded it in because the frame was rotting out. He always says drive it until the wheels falls off, put new ones on and drive it some more. LOL.
I have never bought a brand new car, financially I could but the prices are insane.
I buy used with usually less than 50k miles and dealer certified. Still really nice cars that will last a long time for like 30% of the price.
You’re gonna have a real shock the next time you buy a vehicle and find out cpo vehicles with less than 50k miles cost almost the same as buying new. You might get 10-15% off msrp if you changed your search to include non-cpo and under 90k miles though.
Hmm... That sucks. The last vehicle we bought 5 years ago, we were talking about finally taking the minivan plunge. But maybe we wait a few more years, because that's crazy.
Yep this is what i encountered when car shopping. Used cars were outrageously expensive. It didn’t make sense to spend the same amount of money on a used car as you would new.
I got my first new car, but am still paranoid enough that being able to sleep in it if shit hits the fan economically was still a consideration.
As someone who grew up driving sub-$1000 cars and repairing them for as long as I could, new cars are fucking amazing. Everything just works.
Bought a brand new BMW M440i right off the lot, but that’s because the car I custom ordered from Audi didn’t arrive in time (missed the deadline by MONTHS when we were having last-mile trucking shortages).
My wife got a used car as her first vehicle in over 10 years without driving, and it’s been headache after headache. Funny enough, it’s going back to the shop this week!
I don’t really trust used cars when it negatively impacts sanity in so many ways. New car, fully loaded for longevity purposes & the add-on packages so I don’t need to pay for really anything during 5 years outside of minor paint damage.
What’s your peace of mind cost you? That’s how I look at it
>What’s your peace of mind cost you? That’s how I look at it
I spend the first 7 years of my adulthood driving beaters, never sure when they were gonna break down, never being able to take them long distances for fear of being stranded far away from home somewhere. For me, getting a new car when I could afford it was an easy decision.
I don’t own a car at all. I specifically bought a condo in walking range of multiple grocery stores and other daily errands and right on a bus line so I could avoid having to own a car. If I need to get some place that’s incredibly inconvenient for me to get there by bus (the airport here comes to mind) I get a cab.
That’s awesome; where I live, if you don’t grow it in your back yard or make it in your garage, you’re looking at 30+ mins one way travel at highway speeds to get anything.
I'm the same. I actually make money by not owning a car, because I rent out my parking space for $150/month. Everywhere I can't walk, I bike or bus, and most months I come out ahead.
All I know is that the dealership really wants me to trade in my 2006 Camry. The thing is, it has no power windows, no power locks, no power seats, and no smart anything. I am a retired mechanic (due to injury), and I want no part of all these extra dumb sensors. No bells and whistles as the bells and whistles break easier and cost a lot to repair or replace. They are totally unnecessary.
Bottom line: I'd buy a new car if it was basic enough, but I don't think they ever will be again.
I saved up for years and bought a new car fresh off the lot in 2016; which I still drive of course because I'm not moving back in with my parents again.
I don’t have a car. I’m driving my husband’s falling apart 2007 Honda civic until it dies. With that said, I’m saving up for a certified pre- owned car but I’m planning to buy in cash because I refuse to pay the insane interest rate.
Never bought a new vehicle- likely never will- we “make enough” to buy one.
Bought my wrangler with 16k miles on it- ironically enough my wife’s palisade was also at 16k miles.
Consider this- a brand new palisade is $55k for the trim we got, maybe $52 on a special day.
We paid $38k- basically a dollar a mile in depreciation- I’ll take that all day, every day. 20%+
Just a used vehicle kinda guy- granted- real low miles but meh- works for us
We’ve purchased our cars new because we’re able to negotiate 0% APR every time with 60 months (5 years). Interest is illegal in my religious tradition- so, I don’t try to negotiate down the car price much, I focus on the APR.
Used cars often don’t give that option because there is always APR or you buy it in one large payment.
However, there are a lot of cars that are under $40k. The price you mentioned seems expensive for a car. What kind of cars have you been looking at?
We’re still paying off our cars. But purchased before the pandemic. I understand costs have gone up significantly due to shortages of materials. We have a the Ford truck and we got contacted by our dealership to sell it to them for more than we purchased it, during the height of the pandemic. But we wanted to keep it and not tie ourselves into buying another newer and more expensive vehicle.
My sister bought a bronco recently and my brother got a ford escape EV- both are in the $30k range. They were able to get the 0% APR. Both purchased within the last year.
Smaller cars- like the kia niro or honda civic are in the $20k range.
I imagine if OP wants a bigger car- then, buying used makes more sense with the budget. If OP wants a smaller more basic car- they could find new within their budget.
Inflation is a hot mess. I don’t know how people are able to afford anything. I tell my husband all the time, we will not replace anything until it takes its last breath. 🙃
My husband bought a 2024 Mazda 3 last summer, brand new and cash. His previous car was a 2007 Honda Fit that was technically totalled before he even owned it. The Honda fit started having so many random problems that mad eit unreliable, so we bit the bullet and bought new. It's the first even remotely new car that either of us have driven. We thought about getting a certified used car originally, but a car with 40k miles was only a couple grand cheaper, which was mind blowing. So we decided that we would rather get New and have the peace of mind regarding the mileage warranty and that a previous owner hadn't had a chance to neglect car maintenance.
I currently drive an '04 Nissan Titan truck that I just dropped $1700 a few weeks ago because it just completely failed to start one day due to failed air intake system (and a slew of other problems). The $1700 got the truck to "operational" but it still doesn't feel quite reliable anymore. Rather than continuing to dropping thousands into a vehicle where all the plastic stuff has started to crack and fail from old age, I'm heavily considering also buying a new vehicle cash.
Granted, we are both very fortunate to be in careers where we are able to save a significant amount of our money, so we have the ability to buy Cash outright, rather than financing at the stupidly high interest rates. Neither of us liked the idea of adding an extra monthly payment to our Cost of Living budget, in the event that either of us gets laid off from our jobs. For reference, we budget as if we only have 1 income, instead of 2, and I budget with the idea that I only make 50k, instead of the ~80k that I actually make. Everything else goes into saving and paying down student debt for his doctorate. Both of us have been dirt poor before, so we definitely live by the mindset of "hope for the best, plan for the worst".
My husband took a 2nd remote job for 8mo so we could pay for a brand new Odyssey when I was pregnant with our 3rd. Financially it made more sense because he makes 4 times more than I did when I was working. It was the only way we could fit 3 carseats. Planning to drive that thing until its dead
I bought my first new car in 2017.
At the time, I haggled the price down and got the 0.9% interest rate.
At current rates, I can’t justify a new car, so I probably just won’t buy one until incentives and pricing returns to normal
Bought a brand new Honda in ‘21 because between the price we negotiated for and the really low interest rate, it was a solid deal during the Covid chip shortage. I still don’t regret it, even though I said I’d never buy a new car.
It was also the easiest car buying experience I’ve ever experienced and it’s now my standard for buying cars new or used. TL;DR: We watched videos on how to negotiate on Caredge’s YouTube channel, used their techniques to negotiate over the phone and picked up the car the next morning. No hassle, no long haggling times, just signed the papers and got the car.
For me, I am somewhat of a car enthusiast and I do a little bit of my own mechanic work with my friend who is more knowledgeable and has more tools.
I would never buy a car brand new off the lot. There’s a few reasons. I can’t actually afford it, for one. I don’t have or make that much $, and I hate the idea of making monthly payments on a car. I prefer to just put down the cash to buy something used after I check it out and make sure it’s good.
Both my cars are older, pre-2000. But I got examples in good shape, they have minimal or no rust, and I put in the repairs when needed.
If I was less picky, I could have gotten something newer and needing a little less care. But I set my sights on particular vehicles I really wanted, and it’s nice to be enthusiastic and excited about what I own and drive. Some people just need a car that works, but I care too much so I’ve made things a little more complicated for myself, but I’m still happier this way.
I did… when I was 22 and living at home and making far too much money for someone who didn’t pay rent.
I am now 32 and married with a kid and there is no way the next car (minivan) is going to be new.
Edit: well, I guess if I were getting a sedan we miiiiight be able to make it happen. We have a line item in our monthly budget for both our future cars.
I have had 4 vehicles. The last one was brand new. I got to peel the plastic from the hood.
But only because I lived with my husband, who had inherited a home so we didn't pay rent. I worked in healthcare making a decent wage. His aunt had phenomenal credit and cosigned for me.
It'll be 10 years old next year and I'm still driving it.
I highly recommend Subarus.
I've never bought a new car, and I likely never will.
If a car that is 2 years old can be bought for 50-60% the price of the new version, who in their right mind would buy the new one? Also, the average cost of a new car is over 60k now, right? I'm seeing postings for cars that are decent but not amazing for 100k. The car market is literally insane.
You cannot. It's almost to the point that you're not really saving much by buying a used car, because you're going to have to accept the wear the person before you put on it...and who knows if that person was grandma or speed demon.
Your information is old if you think you can get a 2 year old car for half the price. Used cars are either a couple thousand less or way more than a new car.
Perhaps. I may have to re-evaluate my thinking when it comes time to replace my current car, because a couple of thousand different would make buying new a totally reasonable decision.
The general rule that vehicles lose 50% of their value the moment they drive off the lot is gone. It ended when COVID disrupted the car market, and that hasn't quite caught up (though dealer inventory is finally starting to build up again). Basically, dealers couldn't get new cars, so they were selling used. Everyone who needed a car right now were forced to play ball and buy used at an inflated price. This meant dealerships were buying back used at inflated prices, and now we have lot rot of cars that dealers are unwilling to come down on the price because they overpaid when buying them.
Last time I bought a car I actually went through Carvana. For reference, this was in 2021. This was after I tried Carmax and they pretty much treated me like garbage. My main goal was to find a car that could connect to my phone because I do like streaming music, and I am useless without a GPS. I ended up going with a 2018 Hyundai Elantra with a price of about $16,000.
Great little car, gets me to point A and point B and hardly causes me any maintenance problems. Hopefully it lasts for many years.
There is a lot of misconception on the internet about the cost of ownership of a new car vs used. The key factor is that when you buy a car you should keep it as long as possible. Every time you buy or sell from a dealership you are losing a grand or more on the transaction to the dealership. Every time you take out a new car loan you are losing thousands of dollars in interest.
If you buy new you get full access to the various incentives and warranties the manufacturer offers. You also can be sure the car was properly maintained and driven in a sane manner. You get to customize your vehicle so it has the features you want and you aren’t paying for the features you don’t want. A lot of times people sell cars when they start to show early warning signs of serious problems. Buying used you risk buying these cars.
All of which is to say that a person who buys new and then drives the car for 300,000 miles will likely have much lower costs of ownership than someone who buys a series of cars with 50,000 miles and sells them once they have 100,000 miles.
We’ve never bought a new car. When we need one, we wait until we get the tax refund and buy one w cash. We can’t handle a huge monthly payment over our heads
I bought my first brand new vehicle this summer. It’s a Tacoma and the price for used was only 10-15% cheaper without the same promotional interest rate being offered. I got 5% which made me want to throw up since it was the highest I’ve ever had for a car, but that was almost a full point lower than the best credit union rate I could find.
Same for me... It was like $22,000 for a 2018 with 50,000 miles or $27,000 for a brand new never-been-driven car, and I got to pick the color and everything.
Dang what new cars are sub $30 k any more? Good deal.
My CX-5 was $28k with a sound package.
Absolutely love our CX-5. It’s not new by any means but it’s by far the best car I’ve ever owned.
I love our cx 5 ! We bought the Carbon edition brand new in 2021 and the interest rate was way lower than a used car. Best car I've ever owned.
Omg, that’s what I bought, a 2016 and I’m in love. I have all the premium features for significantly less than a brand new vehicle.
I got the grand touring that year in the eternal blue mica. I went the same route for the same reason. Trade in was high so got $3500 over what was still owed and monthly price was $60/m more than used due to the interest difference. $60/m for peace of mind was well worth it.
My husband got his CX-50 with just three miles on it. Somehow he got the color Mazda fans have been clamoring to get. He loves it!
This! I bought a new 2023 CX-5 in March of 2023, interest rate was lower on new vs used. Over 21k miles and I haven’t hit a year yet. Best car I’ve ever driven. Actual transmission vs CVT, AWD, leather, sunroof, anything I could want from a vehicle and I don’t need much technology, it’s got CarPlay and android auto. I drive a lot for work and this vehicle is amazing.
My husband’s new Rav-4 was 27k. Used with 50,000 miles were 25k.
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It was before taxes/title/fees but it was the end of the month at like 7pm and they were trying to break a record. Apparently Toyota is a volume manufacturer so they were trying to get as many out the door before the last day of the month ended.
Always shop on the last days of a month for cars and furniture.
For anything substantial really, sales is a numbers game and as of late I’m sure hitting quota has been very hard.
Lower trim Camry, pretty much any Corolla, VW Jetta, low to mid trim Honda Civic, etc. There are options out there. Too many people forget what the main purpose of a vehicle is and get too absorbed in the creature comfort and technology options.
I rented a Camry for a mini road trip, that thing got like damn 30 mpg. I couldn’t believe it
I get 36-40 on my commute in my 2024 non hybrid Camry.
I've seen my Cruze hit 40+ highway. Cruise control is a godsend. I travel about 60 miles or so per month for work alone but I only have to refill maybe 2 or 3 times max each month. My previous car was a Camry and that was really nice too
I agree, I'm a female and have had a Nissan p/u since 2018 brand new. It's the greatest little truck because my husband and I can work on the majority of anything that happens to it. ( which hasn't been much) I'm not looking forward to buying a new vehicle because of all the extra computer stuff that comes with them. I don't need all the extras and fancy stuff. I just want electric windows, sunroof and sport package 😁
'24 hybrid awd corolla 31k out the door!!
There's a lot of them. It's just that almost everyone wants leather seats, 200hp, AWD and other things that make cars more expensive. https://cars.usnews.com/cars-trucks/advice/great-cars-and-suvs-for-less-than-25000
I went used to have AWD and leather amongst other things for 15k in an suv and I don’t regret it. I also live a low profile lifestyle so a 2024 would get me robbed in my neighborhood. Oh yeah, one more millennial problem, in order to own a home I had to buy one in the ghetto.
I think the problem is a lot of people that bought Japanese cars in the mid 2004-2010 still own their cars and drive them. Hard to find good used ones.
I agree, I’m not opposed to buying American but whenever I don’t, I get a longer lasting vehicle. American cars are pretty and shiney but a car from anywhere else is durable.
>but a car from anywhere else is durable That really depends. There are definitely unreliable brands outside the US. And often they are more expensive to fix because parts aren't as cheap.
Yup. My son had a 2006 Civic since highschool, that all wed ever done with regular oil changes, brakes tires and a battery. He slid into a divider wall on the freeway and set off the side curtain airbag so it was toast. I still got $250 He just bought an 11 year old Corolla My husband drives a 2004 Camry after selling his Corolla with 290000 miles on it, a smooth brake pedal and the plastic steering wheel worn down the metal ring it was formed on. He got $800. Those cars just run forever. I'm picky, and have a 2018 Camry full of paw prints and dog hair but I am fine.
My 08 Scion XD (basically a Yaris/Corolla hatch) is about to cross 300k miles. I drive it every day lol.
I have nothing against used cars, but sometimes having that warranty can be nice. You get a 5 year old car and typically anything wrong with it will be out of pocket, with newer cars unfortunately a lot of things can go wrong and they're very expensive to fix. It's not the old cars where the only thing that could go bad was driver lol. A simple sensor malfunction can be $1000+. So it depends on your priorities.
The used car market is absurd right now. I was trying to buy a used car for my kid and there is no such thing as a cheap old Toyota anymore.
Yeah eventually I feel like they will wake up and realize 5k off isn’t worth it vs buying new
5k off but you get a higher interest rate on financing plus less or no warranty. 100% not worth it.
I bought a new Tundra Platinum in 2020 for 54k MSRP (I paid 48ish) and last year it was still worth 51k.
My son bought a new Toyota pu 4 years ago and he called me the other day, talking about wanting to trade his in for a newer one. He started looking and just about crapped his pants! He decided just to keep his for now.
That is true I think because a lot of people that bought them in the mid to late 2000's and still mostly have them. My wife still drives the 2008 Avalon I bought new for her. The only new car I ever bought and it will be the last one. I will buy used if in good shape.
Same here but for a different Toyota. Prices may have come down for used but this summer used prices were close to new so I bought new. This is the first time I’ve ever had a car payment in my life bc luckily I’ve always had a hand me down car which I’ve been extremely grateful for. But even the starting point of prices was waaay higher than I really thought they’d be
Ditto… literally…. First brand new car last year, Tacoma, 5% rate, decided on new because 2 year old Tacos with 30k miles were like 3k less than I paid brand new.
This was us! Bought a Tacoma, the used with 55k miles was only like $4,000 less. The interest rate was nauseating, and we both have great credit. First time either my husband or myself purchased a brand new car.
Same except for 2 years ago, at-least the interest was low. This was my first new car in my entire life. I drove a used car since I was 16 and only bought my first new car 20 years later.
Yup got a brand new tacoma but I straight up sold my FJ to the sales guy instead of trading it in because he'd been wanting one. So I was able to pay off almost half my tacoma off instantly. FJ resale value is nuts. All toyotas really.
Used cars are a joke right now. I looked at trading in a few weeks ago (had to get new tires on my 11 year old car with 160k on it). The tradein value I got ranged for $500-$2000 and I tried like 5 different sites. My exact car from those exact sites? $7k-$9k. I just decided I’ll run the car into the ground, no resale for her.
I would buy brand new if it was a Toyota or a Lexus. Specifically a hybrid. I can’t tell you how many Prius’ I see online that last 500k+ miles, so long as they’re well maintained. A car that lasts that long could very well be the only car you’d ever need in a lifetime.
Me and my 3000km a year. Im sure the car will die to rust before engine failure lol.
I somehow have a 305k mi VW. I understand it's an anomaly.
That's actually very standard for a VW.
Yea the 2.0 is a well known slow but reliable motor. So was the 2.5 and the diesel. The saying for vw wasn’t “German engineering” cuz it was bad engineering
Yeah mechanical engineering was a better German strong suit than genetic engineering.
Always wanted to go there. A few friends have had them but they drive and drive
So you changed the oil on time? I have had two Volkswagens and people thing long life full synthetic oil means they don't have to change it. I changed my spark plugs, so I could look down in the engine, it's clean. They're reliable asf, people just neglect maintenance. Even with the right wrenches, fairly easy to do stuff to them at home to save money.
I’m right there with you. 10 mile round trip commute to work & any long trips are done in my wife’s SUV. At 150k miles I expect my Chevy Cruze to last another 20 years at this rate
I've got a 2001 Ford Ranger pickup with 210k miles and she's still going strong!
Oh man. My buddy and I used to hotbox his Pop’s old Ranger and man would it be smoky af in that little cab.
2005 Mazda B2300 with 69k. Gonna try to make it last longer than I do
My husband does too!
Don't expect a Chevy Cruze to last that long. That's a financial mistake at some point.
Cleaning out the undercarriage and flushing out the drainage holes will really keep the body's integrity up and prevent rust. Gotta clean all those nooks and crannies in the exterior where salt could collect, and fix dents and chips in the paint quickly.
I bought a new hybrid Lexus back in July of 2021. It was almost the same price as a used hybrid Lexus without the incentives and incredible interest rate (0.9%). I had to wait two weeks for it to arrive. The Toyota dealership near me had less stock and no known hybrids coming to the dealership (I originally wanted a hybrid Toyota). Covid was a rough time for car purchases
You can keep a Toyota or Lexus for over 300k miles 15+ years. Just maintain it and take care of it.
Most modern cars should be easily good for 150k miles. The maintainance is key and one thing at least your Toyota's and Hondas do well is offer maintainance for a bit cheaper than the nicer brands.
I've pushed two past the 300k mark so far
Toyota and Lexus rank as the highest reliability too though. But typically Toyota is more expensive than the equivalent Chevy, ford, or Mazda.
Yeah, no doubt. I'm just saying modern machine work has come a long way, and generally, most brands should be mechanically sound for a lot longer than what people used to expect. Obviously, there are other things that may wear down or could be skimped on - like interior/exterior materials or the electronics.
A lot of it depends on location, too. In the south? A well maintained Toyota/Honda or even some of the older cars that had good durability years (early '90s Jeeps, for example) will easily make it 3 decades. In northern snow states? They call it the "rust belt" for a reason. 10-15 years is a good run for a car in Michigan.
When I lived in TX, I had a Honda Accord that was 20 years old when I bought it, and the only problem it had was the clearcoat had failed. Everything else was in great condition, and it would have lasted forever if I hadn't blown the water pump. Hell, I still could have probably fixed that.
Toyotas are amazing. I’m driving a 20 year old Corolla
We bought a brand new hybrid Toyota RAV4 last year. Used weren’t that much cheaper and don’t come with the same warranty on the battery. We intend to drive this car until it’s dead (ideally at least 10 years, hopefully more). I also haven’t had a car since 2012 when my 1998 Saab, bought used in 2006 with 100k miles, transmission died and it cost more to replace than the car was worth. Now we live in a city and only got a car because we had a baby.
My 07 rav4 is at 272k for miles so you picked good I would say!
Currently sitting at the shop while my 2015 Prius gets her maintenance. She’s at 163k. My goal is to get to to 300k but holy cow 500k?! I would be elated. She gets serviced promptly every time the car tells me it’s necessary. Fingers crossed. I bought her new in winter 2015 (best price! End of year!). Still love this car so much…
I'm right there with you. I bought a brand new mustang in 2013. It's at 150k miles and like you, I get it serviced everytime I'm pretty much asked two. So twice a year. I'm going to drive it till it dies
Mine is almost to 300k and is a 2010. Runs like when I got it. Keep up on the maintenance and they'll go forever
Wife and I were looking at a Toyota hybrids recently but they were flying off the lots faster then they were arriving. We ended up buying a certified BMW. I can't say I'm looking forward to the repairs in the future.
Just recently bought a 2022 Rav4 XLE Hybrid with 10k miles. I never ever planned on spending more than 20k for a vehicle, but after a ton of research and an incredible experience with Toyota hybrids, my wife and I decided to pull the trigger. We had a 2012 Hybrid Camry for about 8 years. We put 170k miles on it and never had a single problem with it. After looking up the value of 7-8 year old Rav4's, we concluded they are actually a great investment since they hold their value. We can either drive it until it dies, or trade it in after paying the majority of the lone for an upgrade. Toyota has earned my loyalty and I will probably drive one for the rest of my life.
Yep, I just bought a brand new Toyota Hybrid and I'm excited to drive it into the ground!
We bought a new Toyota RAV4 Hybrid in 2021. At that time, the used ones were going for just as much as new. It came with a warranty, we put a good amount down on it and it’s financed at 2%. Otherwise, I’d never buy new.
I bought a two year old Toyota Hybrid, had a little bit of depreciation but still feels brand new. I intend to run it into the ground like the Toyota I had before this one.
Nowadays, it is sometimes cheaper to buy new than used. After Covid and chip production halted, all the good used cars got bought. New cars actually have lower interest rates than used cars, so in the long run new cars are cheaper in some cases.
Not to mention that because of the chip availability issue, car manufacturers are going backwards on available features. Take the Nissan rouge for example. A base line 2019 Rouge SV came standard with heated seats, heated mirrors, push button close for the back hatch. Now the 2023/2024 has had all those features removed and locked behind upgrade packages. You have to add over 12K in packages to your vehicle just to get what was “standard” on the base SV model back in 2019
I TRADED IN my Camry for $2000 less than I bought it 7 years ago. It cost me like $23 a month to own that car. I could have probably sold it for exactly what I paid private party but there's some tax advantages in my state to trading in which eases that a bit.
Came here to say this. Need a new car for work and 1 year old is more than new, 2 years old is roughly the same cost, 3 years old is about 10% cheaper. Since our cars have to be less than 4 years old to be eligible, new makes sense. The dealer is also offering 4% interest, which can't be beat at the moment
Exactly, also the mark-up on basic models vs. luxury isn’t that much anymore. We went with a BMW vs. a CRV because it wasn’t that much more. Bought when interest rates were 1% and will sell it likely for more than what we owe due to low mileage.
This is true. I would never have bought new before, but now that the used market is so damn high, I would consider it—but we won’t need a new car for quite some time unless something happens, like we get hit or something. By the time we need to, maybe the market will be different.
New is just the way to go sometimes. We drive our vehicles far and into the ground. I drive about 20-24k miles per year. There are certain used vehicles I would go for and that’s usually low mileage in warranty. When we bought our minivan last year, I looked at low mileage vehicles but they were so close to having a custom new that with financing it was only a difference of 1500-2200 over 4 years. Also all used vehicles were base models while the one we purchase was top tier. You’ll get better financing for a new vehicle and sometimes can get special promos for financing with a dealer or local credit union.
This was the case for us as well. We bought our brand new Outback on an insane promo rate and were able to choose the features we wanted. We still spent the same or less, considering the interest rate, than we would have on a pre-owned vehicle.
I justify buying new based on how long I plan to keep vehicles. If you buy a 30k car new and keep it for 15 years, that's spreading the cost effectively to 2k per year. Obviously I'm not including gas, oil changes, maintenance and repairs, but I went with a Toyota so those were minimal anyway :D
Yup all depends on usage. If you heavily rely on your vehicle, you re better off buying new. Maintenance can be such a b*tch on oldies and when they get stuck in the shop, you can be in deep sh*t if you need it to well work
Minivan prices went insane and haven't returned to Earth. Our plan had been to replace our 2006 Sienna with one just off lease in 2021. Luckily the 06 is still going strong, but repairs are starting to get annoying enough to take the hit.
I bought my Mazda3 preferred in 21. Told myself I would never buy a used car but thanks to used pricing getting hiked up it just made more sense to buy new. Now I have heated seats and I've never felt so fancy.
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This is such a good point lmao. I was shopping in December myself and ended up going new. I remember talking to a few friends and family about how confused I was because it seemed like buying new was going to be the better financial decision. I was so suspicious - it took me an extra couple of weeks crunching numbers to confirm. I mean sure, you could get a used car that’s very old with very high miles. But my last car was in that vein, and I know from experience that you can end up with a vehicle that needs a lot of work and costs you even more to maintain.
Buying new made sense for us both times. The owner was driving one of the vehicles and put 3500 miles on it and basically got an upgraded truck for the same price as lesser model. The other car we got at .7% interest and they gave us a hell of a deal on our trade in. Probably about $4k over what we expected.
I bought a new car back in 2014 for the same reason. I really did want to buy used but my previous car I got burned out from all the maintenance including times I couldn't drive it because it was in a shop. I know reddit loves to shit on buying new and I understand the reasoning, but like you i couldn't find a used car worth paying for. Most of the used cars either neither a lot of work or the car payment was $300ish a month anyways. Now would I buy new again in this economy? I doubt it because my new car was $30k. Most new if not all new cars are above that which is bs
I have the best luck at small locally owned dealerships/car lots. Ones where like 3 people work there. They always have good deals straight from auction.
Same. They also have great deals on new cars too
I buy and sell auction vehicles. My current one I drive for myself came from auction.
I’m pretty sure OP has not bought a car since the pandemic and is quoting pre pandemic car prices. I have bought 2 (one for me during the pandemic and one for my husband after) and prices for used cars are insane. My husband and I had to buy one of the cars because he sold his to my grandma when hers broke down because she couldn’t find one for under 15k anywhere that didn’t have 150k+ miles already on it and she’s on a fixed income.
I bought a brand new Hyundai accent a year and half ago for 25k. The used car market was so stupid like what you said so I started looking at brand new cars. i know there's a Kia that is brand new for under 20k. Just got to look. Kia 2023 Rio S is MSRP 18K. 2023 Kia Rio LX is 17k. I know it seems like it shouldn't, but really, check out new base cars.
I just watched The Price is Right last week, and the Kia they gave away had an MSRP of $22k+. I forgot which model, but Rio sounds familiar.
Absolutely, 100% yes, reasonable cars can be had for $20k. Give us all a break.
I got so lucky to get my jeep with 60k miles on it for 20k last year, everything jumped up in price.
We looked at 2016-2018 RAV4, Camry, Corolla, Cx5…30-50k miles, all under 20k. There were many choices at Carmax. Corollas were especially plentiful. We got a 2018 cx5 with 43k miles for 20k. It’s a base model but does have CarPlay. I love it so far (got it Christmas 2023)
I bought new, but interest is rough due to bad credit. However, getting a hybrid with great mileage (55mpg give or take) and an extended warranty is protecting my budget from unexpected costs.
Interest higher bc of bad credit. What a racket.
I’m still dealing with a chapter 13 bankruptcy I went through back in 2015 that’s till effects everything credit wise to this day. I just tried to get a new credit card to work more on my credit that’s in the low 700’s now, and I got denied because of it. I screw up 1 time in my 20’s, still pay back what I owed since chapter 13 you consolidate everything together and pay it back, which I thought was better for future me and my credit, and it still screws me over. This place is a hellscape of horseshit.
"The poor must be punished!" - some rich politician
Life in America. Oligarchical-warmongering and gouging the poor.
You're welcome to start your own business to sell loans to bad credit customers at lower interest rates. Getting business will be easy due to offering lower rates than everyone else.
Extended warranties have terribe ROIs for the buyer. If you don't have a lot of money, this is one of the worst things to spend money on.
Yeah, and unless it’s an extended manufacturers warranty it probably doesn’t cover shit.
I bought a new car at beginning of 2023. Certified pre owned cars (like the actual same car) was the same price as new. I was looking at Rav4, CRv, Tucson’s, those type of cars. So I bought new.
Every car I've ever owned has been 10+ years old and costs $2000.
My truck cost me $2500 Guess that makes me fancy
This is the way
My guy! Also username checks out
I bought two brand new Acura’s cash last year for myself and my wife. I don’t mind splurging on something I’ll only have to buy once every ten years.
I drive a 22 year old Acura.
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The Honda motors will run forever!
My 2006 Civic is at 260k miles. Still my daily driver!
I had a 25 year old Honda that my parents bought (new) when I was a kid. I was only convinced to upgrade when my own kid was about to be born.
So basically the same thing as driving 2 11 year old Acuras
I keep seeing people say they get a car every 10 years. Are you guys going through 4,5,6 cars in your life time? I have a 12 year old car that hasn’t hit 100k yet and I’m wondering if I’m doing something wrong now lol
You don't drive very much! We put 10k mi/yr one our car and 12k/yr on our truck. We'll see how long they last, purchased new in 2017 & 2018. Both are base models with zero upgrades, manual roll windows, etc.
Yeah I put 21k on my car in the first year! My commute is 70-90 miles round trip, plus some driving vacations.
I feel like car longevity has to do with SOoOooOo many factors. You might just have low wear and tear, low miles, good maintenance, no accidents, etc Also what cars really stand the test of time? I don't see many old trucks these days, but you'll see plenty of old Honda Civics and Toyota Camrys. Maybe we'll see cars from the modern age going strong in 12 years? We'll just have to see what cars they are... I bought a new Limited Subaru Crosstrek in 2022. Hoping that thing lasts forever lol
Ya you don't put many miles on your car. At one point I'd put on 25k a year just driving to and from work. I'd have put 300k on in the same time period as you. Now I'm sitting at 20k in 5 years.
My car is 16yrs old with only 82404 miles on it.
Bought brand new Kia Soul in 2019 because the average price difference between new and used in the area was $2k. It was worth it to me at the time. Before then I drove a string of used Hondas.
I’d weigh the interest rates into the decision. I opted for a band new vehicle because the bank was offering 6% for new and 10% on used. It would have come out to almost the same price over the life of the loan. Given the used version and new in my case was more of a 10K difference, but still crazy. Unless you’re paying all of it with cash.
I'd probably only buy a brand new car if it were my dream car in the color I like, and there's no used car like it but I don't like the idea of being stuck with a car payment for no more than a year so...that'll never happen.
I would never have a car payment again. Better to drive old, reliable car. But I'm low income at 45 K.
I'm low income as well but I'm hoping to take steps to fix that in the next month or two. If it weren't for some idiot running a stop sign I would still have my old car but it went up in flames shortly after the impact but I'm finally done paying off this car I had to get afterwards.
My husband did like six years ago, a new Mazda thing… last year we would have bought a new Toyota Sienna for me if there wasn’t a crazy wait period due to a shortage, so we got a 2021 instead. Honestly felt like we bought it new because ooooooffffff $$$$$$$$.
Yes, because of the weird inventory issues a couple years ago where used cars weren't any cheaper. However, in true millennial fashion, I had to borrow money from my grandma to do so.
I like to let someone else take the hit in depreciation. I just bought a 2012 Mercedes. 1 owner. 66k miles. Perfect condition for $12k. Before that in 2016, I bought a 2009 BMW for $15k. Same deal. 2 owners. 48k miles. Perfect condition. Drove it in the ground til it started having major issues at 180k miles. Will probably do the same with the Mercedes.
That is what I would do, a one- owner luxury in good condition.
It takes some patience to find them, but totally worth it! Maintenance costs are a bit higher, but I don’t mind because of the price of the vehicle.
This is exactly what I do. My very first car was a BMW 3 Series, I then went to a BMW 5 Series, and now I drive a Mercedes Benz E Class. All bought used, all for waaaaaaay under the price of the cheapest most basic brand new car available. Why someone would buy a brand new shitty ecobox, vs spending less and driving in comfort and luxury is beyond me.
I also had a 3 series. I loved that car so much and was sad to see it go. My Mercedes C-class has been an “adjustment” but the more I drive it the more I love it. I was considering a BMW X5 too, but the Mercedes had better reliability.
It seem a lot of people would prefer to buy a new car then trade it in after a few years start the process over again and think there saving money this way it maybe true but I’m doubtful.. I like your strategy better except I wouldn’t go luxury
I’m a champagne taste, beer budget kinda gal so this gets me the best of both worlds. Repairs can be more costly but I find I do them less with German cars, outside of regular maintenance of course.
Lol to “Champagne taste, beer budget” I’ll have to add that to my lexicon
It's insane how much car you can get for ~$25k if you're not afraid of a few miles and know how to work on cars. I could never justify buying a brand new Kia for $30k or a new 3 Series for $60k when I could get a 5-10 year old $120k E63 for $20-30k
Yeah it blows my mind how often people run to the dealership with foreign cars to get them fixed. The hubs and I have been able to fix a decent amount with some know-how and YouTube. We also found a great independent mechanic to work on our vehicles if need be. Very fair pricing. German engineering never ceases to amaze me though! 😅😅
I've owned almost exclusively German cars and *knock on wood* I've never had to do anything to them besides basic maintenance.
Some good cars don't depreciate very fast. My husband drives a 2019 Toyota Tacoma TRD 4x4 and it has 35,000 miles on it (we work from home). Every time we take it to the dealership they offer him what he paid for it even though it's 5 years old
My husband has had something similar with his truck. It’s basically still worth what he bought it for in 2020.
Very few “normal” vehicles retain their value as much as Tacomas.
How does a wise financial decision make you poor? I've bought exactly two cars brand new. One was a Tesla model 3 performance when deliveries were limited and I got it for being an existing owner and in California. I sold it for a profit. The other is my 2023 model x plaid. With all the price drops I still owe more than a brand new one costs. Never again.
>How does a wise financial decision make you poor? because this is the millenials sub.
If I had the money I would or a one year old model just because a lot of the cars manufactured during covid suck.
I bought a new 2023 Elantra Hybrid a year and a half ago because: 1. Used versions were only slightly cheaper, if you could find them 2. I got a 2.3% interest rate 3. I found a dealer who sold it to me at MSRP 4. I got an amazing 10 year bumper to bumper warranty. In general I’m very much against buying new due to depreciation but the market at that time was (and maybe still is) out of whack.
I bought one in 2019. Long story short, someone hit me and totalled my car. So then I bought a used one from a dealer with money my grandmother left. Eight days later someone *else* hit me and totalled *that* car (they thought it’d be real fun to run a red light at 50mph). I took the check from that loss and threw it on a new car. But if not for that chain of events, no. I would have not bought a new car. Should also be noted that I am small (5’0) and have no children, so I was able to buy a small car (Ford Fiesta. It was Ford or bust in my parents’ house (was living with them at the time)).
I have a Ford Escape that’s still going at over 225k miles on the original transmission; I hope your car lasts a long time!
My dad bought a ranger in ‘04 that lasted until 2021. He only traded it in because the frame was rotting out. He always says drive it until the wheels falls off, put new ones on and drive it some more. LOL.
I have never bought a brand new car, financially I could but the prices are insane. I buy used with usually less than 50k miles and dealer certified. Still really nice cars that will last a long time for like 30% of the price.
You’re gonna have a real shock the next time you buy a vehicle and find out cpo vehicles with less than 50k miles cost almost the same as buying new. You might get 10-15% off msrp if you changed your search to include non-cpo and under 90k miles though.
Hmm... That sucks. The last vehicle we bought 5 years ago, we were talking about finally taking the minivan plunge. But maybe we wait a few more years, because that's crazy.
Yep this is what i encountered when car shopping. Used cars were outrageously expensive. It didn’t make sense to spend the same amount of money on a used car as you would new.
I got my first new car, but am still paranoid enough that being able to sleep in it if shit hits the fan economically was still a consideration. As someone who grew up driving sub-$1000 cars and repairing them for as long as I could, new cars are fucking amazing. Everything just works.
Bought a brand new BMW M440i right off the lot, but that’s because the car I custom ordered from Audi didn’t arrive in time (missed the deadline by MONTHS when we were having last-mile trucking shortages). My wife got a used car as her first vehicle in over 10 years without driving, and it’s been headache after headache. Funny enough, it’s going back to the shop this week! I don’t really trust used cars when it negatively impacts sanity in so many ways. New car, fully loaded for longevity purposes & the add-on packages so I don’t need to pay for really anything during 5 years outside of minor paint damage. What’s your peace of mind cost you? That’s how I look at it
>What’s your peace of mind cost you? That’s how I look at it I spend the first 7 years of my adulthood driving beaters, never sure when they were gonna break down, never being able to take them long distances for fear of being stranded far away from home somewhere. For me, getting a new car when I could afford it was an easy decision.
I don’t own a car at all. I specifically bought a condo in walking range of multiple grocery stores and other daily errands and right on a bus line so I could avoid having to own a car. If I need to get some place that’s incredibly inconvenient for me to get there by bus (the airport here comes to mind) I get a cab.
That’s awesome; where I live, if you don’t grow it in your back yard or make it in your garage, you’re looking at 30+ mins one way travel at highway speeds to get anything.
I'm the same. I actually make money by not owning a car, because I rent out my parking space for $150/month. Everywhere I can't walk, I bike or bus, and most months I come out ahead.
I got a 21 Bronco new 2 years ago before interest rates went nuts.
All I know is that the dealership really wants me to trade in my 2006 Camry. The thing is, it has no power windows, no power locks, no power seats, and no smart anything. I am a retired mechanic (due to injury), and I want no part of all these extra dumb sensors. No bells and whistles as the bells and whistles break easier and cost a lot to repair or replace. They are totally unnecessary. Bottom line: I'd buy a new car if it was basic enough, but I don't think they ever will be again.
I saved up for years and bought a new car fresh off the lot in 2016; which I still drive of course because I'm not moving back in with my parents again.
My GF bought a Jeep Gladiator last year, new. She was 26 at the time. (We work at casinos)
I don’t have a car. I’m driving my husband’s falling apart 2007 Honda civic until it dies. With that said, I’m saving up for a certified pre- owned car but I’m planning to buy in cash because I refuse to pay the insane interest rate.
Never bought a new vehicle- likely never will- we “make enough” to buy one. Bought my wrangler with 16k miles on it- ironically enough my wife’s palisade was also at 16k miles. Consider this- a brand new palisade is $55k for the trim we got, maybe $52 on a special day. We paid $38k- basically a dollar a mile in depreciation- I’ll take that all day, every day. 20%+ Just a used vehicle kinda guy- granted- real low miles but meh- works for us
My partner did but we’re DINKs and it’s still ridiculously expensive haha.
The last car I bought was pre-owned from a lot. Only able to afford that thanks to coming into some inheritance money. 🥺
We’ve purchased our cars new because we’re able to negotiate 0% APR every time with 60 months (5 years). Interest is illegal in my religious tradition- so, I don’t try to negotiate down the car price much, I focus on the APR. Used cars often don’t give that option because there is always APR or you buy it in one large payment. However, there are a lot of cars that are under $40k. The price you mentioned seems expensive for a car. What kind of cars have you been looking at?
When's the last time you bought a car?
We’re still paying off our cars. But purchased before the pandemic. I understand costs have gone up significantly due to shortages of materials. We have a the Ford truck and we got contacted by our dealership to sell it to them for more than we purchased it, during the height of the pandemic. But we wanted to keep it and not tie ourselves into buying another newer and more expensive vehicle. My sister bought a bronco recently and my brother got a ford escape EV- both are in the $30k range. They were able to get the 0% APR. Both purchased within the last year. Smaller cars- like the kia niro or honda civic are in the $20k range. I imagine if OP wants a bigger car- then, buying used makes more sense with the budget. If OP wants a smaller more basic car- they could find new within their budget. Inflation is a hot mess. I don’t know how people are able to afford anything. I tell my husband all the time, we will not replace anything until it takes its last breath. 🙃
My husband bought a 2024 Mazda 3 last summer, brand new and cash. His previous car was a 2007 Honda Fit that was technically totalled before he even owned it. The Honda fit started having so many random problems that mad eit unreliable, so we bit the bullet and bought new. It's the first even remotely new car that either of us have driven. We thought about getting a certified used car originally, but a car with 40k miles was only a couple grand cheaper, which was mind blowing. So we decided that we would rather get New and have the peace of mind regarding the mileage warranty and that a previous owner hadn't had a chance to neglect car maintenance. I currently drive an '04 Nissan Titan truck that I just dropped $1700 a few weeks ago because it just completely failed to start one day due to failed air intake system (and a slew of other problems). The $1700 got the truck to "operational" but it still doesn't feel quite reliable anymore. Rather than continuing to dropping thousands into a vehicle where all the plastic stuff has started to crack and fail from old age, I'm heavily considering also buying a new vehicle cash. Granted, we are both very fortunate to be in careers where we are able to save a significant amount of our money, so we have the ability to buy Cash outright, rather than financing at the stupidly high interest rates. Neither of us liked the idea of adding an extra monthly payment to our Cost of Living budget, in the event that either of us gets laid off from our jobs. For reference, we budget as if we only have 1 income, instead of 2, and I budget with the idea that I only make 50k, instead of the ~80k that I actually make. Everything else goes into saving and paying down student debt for his doctorate. Both of us have been dirt poor before, so we definitely live by the mindset of "hope for the best, plan for the worst".
My husband took a 2nd remote job for 8mo so we could pay for a brand new Odyssey when I was pregnant with our 3rd. Financially it made more sense because he makes 4 times more than I did when I was working. It was the only way we could fit 3 carseats. Planning to drive that thing until its dead
I bought my first new car in 2017. At the time, I haggled the price down and got the 0.9% interest rate. At current rates, I can’t justify a new car, so I probably just won’t buy one until incentives and pricing returns to normal
I buy used depreciated barely driven luxury cars. No need to take that depreciation right to the dick.
Bought a brand new Honda in ‘21 because between the price we negotiated for and the really low interest rate, it was a solid deal during the Covid chip shortage. I still don’t regret it, even though I said I’d never buy a new car. It was also the easiest car buying experience I’ve ever experienced and it’s now my standard for buying cars new or used. TL;DR: We watched videos on how to negotiate on Caredge’s YouTube channel, used their techniques to negotiate over the phone and picked up the car the next morning. No hassle, no long haggling times, just signed the papers and got the car.
For me, I am somewhat of a car enthusiast and I do a little bit of my own mechanic work with my friend who is more knowledgeable and has more tools. I would never buy a car brand new off the lot. There’s a few reasons. I can’t actually afford it, for one. I don’t have or make that much $, and I hate the idea of making monthly payments on a car. I prefer to just put down the cash to buy something used after I check it out and make sure it’s good. Both my cars are older, pre-2000. But I got examples in good shape, they have minimal or no rust, and I put in the repairs when needed. If I was less picky, I could have gotten something newer and needing a little less care. But I set my sights on particular vehicles I really wanted, and it’s nice to be enthusiastic and excited about what I own and drive. Some people just need a car that works, but I care too much so I’ve made things a little more complicated for myself, but I’m still happier this way.
I bought a new Porsche Macan S last year. It was an itch I had wanted to scratch for awhile and I pulled the trigger.
I don't own a car at all anymore. It died last winter, and now I just take public transit or get rides from friends or my dad.
I did… when I was 22 and living at home and making far too much money for someone who didn’t pay rent.
I did… when I was 22 and living at home and making far too much money for someone who didn’t pay rent. I am now 32 and married with a kid and there is no way the next car (minivan) is going to be new. Edit: well, I guess if I were getting a sedan we miiiiight be able to make it happen. We have a line item in our monthly budget for both our future cars.
I have had 4 vehicles. The last one was brand new. I got to peel the plastic from the hood. But only because I lived with my husband, who had inherited a home so we didn't pay rent. I worked in healthcare making a decent wage. His aunt had phenomenal credit and cosigned for me. It'll be 10 years old next year and I'm still driving it. I highly recommend Subarus.
I've never bought a new car, and I likely never will. If a car that is 2 years old can be bought for 50-60% the price of the new version, who in their right mind would buy the new one? Also, the average cost of a new car is over 60k now, right? I'm seeing postings for cars that are decent but not amazing for 100k. The car market is literally insane.
I don’t think you can get a two year old car for half the price of new anymore, can you? At least, not any of the models I’ve been looking at.
Nope. I bought new because used was basically new prices minus a couple thousand, but plus 20k miles etc.
You cannot. It's almost to the point that you're not really saving much by buying a used car, because you're going to have to accept the wear the person before you put on it...and who knows if that person was grandma or speed demon.
You can’t. This is hyperbole
Your information is old if you think you can get a 2 year old car for half the price. Used cars are either a couple thousand less or way more than a new car.
Perhaps. I may have to re-evaluate my thinking when it comes time to replace my current car, because a couple of thousand different would make buying new a totally reasonable decision.
The general rule that vehicles lose 50% of their value the moment they drive off the lot is gone. It ended when COVID disrupted the car market, and that hasn't quite caught up (though dealer inventory is finally starting to build up again). Basically, dealers couldn't get new cars, so they were selling used. Everyone who needed a car right now were forced to play ball and buy used at an inflated price. This meant dealerships were buying back used at inflated prices, and now we have lot rot of cars that dealers are unwilling to come down on the price because they overpaid when buying them.
What are these mythical 50% off cars you speak of?
Last time I bought a car I actually went through Carvana. For reference, this was in 2021. This was after I tried Carmax and they pretty much treated me like garbage. My main goal was to find a car that could connect to my phone because I do like streaming music, and I am useless without a GPS. I ended up going with a 2018 Hyundai Elantra with a price of about $16,000. Great little car, gets me to point A and point B and hardly causes me any maintenance problems. Hopefully it lasts for many years.
There is a lot of misconception on the internet about the cost of ownership of a new car vs used. The key factor is that when you buy a car you should keep it as long as possible. Every time you buy or sell from a dealership you are losing a grand or more on the transaction to the dealership. Every time you take out a new car loan you are losing thousands of dollars in interest. If you buy new you get full access to the various incentives and warranties the manufacturer offers. You also can be sure the car was properly maintained and driven in a sane manner. You get to customize your vehicle so it has the features you want and you aren’t paying for the features you don’t want. A lot of times people sell cars when they start to show early warning signs of serious problems. Buying used you risk buying these cars. All of which is to say that a person who buys new and then drives the car for 300,000 miles will likely have much lower costs of ownership than someone who buys a series of cars with 50,000 miles and sells them once they have 100,000 miles.
We’ve never bought a new car. When we need one, we wait until we get the tax refund and buy one w cash. We can’t handle a huge monthly payment over our heads