I need to buy a car within the next few months, and my plan is to buy a one that I really like and drive it for at least 5 years. I am interested in hearing opinions of whether it is better to buy 'new' or 'used'. Thanks.
2007-01-31 02:32:17 · 4 answers · asked by SE 5 in Cars & Transportation ➔ Buying & Selling
The biggest drop in value of a vehicle comes when the front wheels leave the dealership. The second biggest drop is when the rear wheels follow!!!
When you drive a new car off the dealer's lot, it becomes a used car and at that point loses several thousand dollars in value. When you buy a used vehicle, that loss has been taken by someone else.
If you are financing the vehicle, you can usually get a slightly better rate on a new car. A new car has a factory warranty. A used car may have some factory waranty left, or you may be able to purchase an extended warranty.
You have to decide what is the best choice for you, in your situation. Your plan to keep the car for at least 5 years is a good one. You do not say if you are paying cash or financing. Check with your bank or credit union to see what the rate differences are, if you plan to finance!
Compare total cost after 5 years. Take the price of the new and use vehicles. Add the finance charges you will have to pay for each. Allow for any waranty costs (extended warranty or cost of transfer of the factory warranty)
Take an educated guess of the value of each vehicle after 5 years. How far do you drive a year? If you are a high mileage driver, the value of the two cars will be close at the end of the 5 year term!
Subtract the estimated value of the vehicles in 5 years from the cost of ownership, and make your choice. In 95% of the cases, you are going to be better off buying a late model used vehicle, than a new one.
2007-01-31 03:23:17 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
Some people prefer newer used cars, because of depreciation issues (ie your new car depreciates immediately upon driving away from the dealer and less over time proportionately). Others prefer new because of questionable repair and maintenace by the prior owner, and warranty coverage. And better safety standards in newer cars. I've gone both ways, but now am more inclined to buy new, since I keep cars a long time -7 to 10 years, so therefore the depreciation issue is not a big deal, and I like to start off with a new vehicle.
2007-01-31 02:42:50 · answer #2 · answered by GEEGEE 7 · 0⤊ 0⤋
If you buy one that is 1 or 2 years old ou can save yourself lots of money from depreciation. There may be less warranty o a newer used car that a new car but that only matters on the type of car you buy. Plus if warranty is a concern you can purchase an after market warranty. If you want reliable dependable driving try Honda, Toyota, Subaru.
2007-01-31 02:48:25 · answer #3 · answered by ? 7 · 0⤊ 0⤋
KEY WORD= WARRANTY
FIXIN THOSE BUGS FROM PLANT AT DETROIT OR SOMEBODY ELSES LEMON THAT NICKEL AND DIMED THEM INTO SELLIN IT
THINK ABOUT IT
I HAVE HAD IT BOTH WAYS BUT A GOOD ROAD TEST AND WARRANTY ON A USED ONE TO SAVE SOME MONEY
AGREE OR DISAGREE
ALSO TAKE A MECHANIC WITH YA THAT YA TRUST
2007-01-31 02:42:43 · answer #4 · answered by waltonwayaugusta 6 · 0⤊ 1⤋