Which is better? Buying a brand new car or one that is a year old?

Question

I know some people that buy a car that's at least one year old to avoid that hit in first-year depreciation, especially on domestic models, to save money.

Then, there are others that want the "self-satisfaction" and/or feel safe buying the car completely brand new (no car issues or problems). In this manner, that person knows that they were the only one to put mileage on it.

Which is better?

Answer 1

That's a tricky question.

It mostly depends on what kind of vehicle you are thinking of purchasing.

If you just need a car for reasonably reliable transportation, and don't have a lot of money to throw around, definitely go with the one year (or more) car. You will avoid the depreciation, and you should still retain a decent amount of the warranty since most cars now have around 5 year 75-100K miles warranties. Any serious problems with the car should have popped up by that point too.

The new car doesn't actually gaurantee you more reliability. You could buy two brand new cars off of a lot, and drive the first one for over 100,000 miles with only normal routine maintenance and regular oil changes, and the other one will break down every time you look at it wrong. Even if it is covered by warranty, they won't cover lost time, or lost revenue - like if you miss a meeting or something.

I used to say I would never buy a new car, but now that I have a wife and daughter, I wanted to get them something safe and reliable (I drive a '65 mustang - that has actually never left me anywhere). I opted for a Ford Focus ZX-5 (four door hatchback w/sunroof) that has gone 60,000 miles so far without any trouble. (Granted, I maintain it myself, so I don't have to worry about inept mechanics screwing it up). People will tell you that this car or that car is the best one to get, but a lot of people are suckered into getting a lot more car than they need, and spending a lot more than necessary, just for a piece of transportation.

One of the japanese car companies has an ad that says something like 'when is a car more than a car?' My response is 'When you have been suckered into paying as much for it as your mortgage payment just as a status symbol' (Or when you have to move into it because you can't afford your mortgage payment anymore).

Always be willing to walk away when dealing with car salesmen - remember, they aren't doing you any favors, and if they won't deal your way, then tell them to take a hike. DO NOT fall in love with a car (or at least don't let them know it) otherwise they will take you to the cleaners.

Good luck.

Answer 2

I would go for the new one. Several advantages on a new car are that you can generally trade in your old one (not always true for the year old model). That saves you tax money and knocks $$$ off the principal up front. You can get a great deal on interest rates (it is a buyer's market now). You get a full warranty. You get a new car. With the year old one you are not assured of "no problem car issues". You are getting a used car. True, you save a little up front, but you have a year's driving taken away as well. If I choose it will be new.

Answer 3

Depends how big your ego is. Some saddo's simply have to have the newest model to keep up with the neighbours. They sit there, full of smugness in their 10 day old car with some false sense of superiority. Of course to maintain this they have to completely forget the fact that they can't really afford it and they are financed up to their eyeballs.

Slightly less shallow people sit in their immaculate 5000 mile 12month old one and have a good old laugh at the new car buyers. They then go and spend the £3000-4000 which they saved on depreciation on a nice holiday which gives a lot more pleasure than getting one over on the neighbours.

Then there are the like myself who buy a 3 year old 60,000 miler for 1/4 of the new price. And then drive around perfectly happy knowing that they are not obliged to spend ridiculous prices for garage servicing simply to keep their warranty valid. That their car is just as comfortable, reliable and well speced as the current models. And content that they are not so weak and feeble that they would go out and spend 15,000 hard earned pounds just to "impress" total strangers.

Answer 4

That would depend on which type of person YOU are. I'm one for the bargain. I've only bought ONE vehicle right off the truck (0 miles on it) & it was a LEMON. ALL my "new" cars have been one year old. I've loved them the MOST. All the "bugs" are worked out of them & they have the warrenties a new car has with about $15,000 miles on them. Knocks off thousands of dollars! I purchased a 2004 pacifica Aug 1, 2006 with 49,000 miles on it. Totally loaded, decked out with Every thing it could possibly get on it...new cost? $42,000!! MY cost? $20,145!! What a deal...AND they the dealership threw in a hitch to haul my boat! (which would have cost me another $900) So I'd rather pay 1/2 the cost or thousands less than the ones who wish so badly to put that first mile on the car. My pacifica still has another 8,000 miles left on it's warrenty! I love the car! I bought my son a 2005 cobalt which had 15,000 miles on it. Excellent car! Great price! He gets 48 miles/gal highway & 32 m/g city! I will NEVER buy a BRAND new car again! And I always check the value of the car in the Kelly Blue Book & how it rates in the consumer's digest. But ultimately it comes down to how much I like how it drives. Good luck!

Answer 5

Which do you want? Do you want the ability to pick out the colors and the options? With new, you know the cars complete history. With used, you take your chances, but you save money, and give up some of the choices you have with a new one.

I have bought from a rental company, like AVIS or Hertz. Those cars are well maintained and have extended warranties available. Just remember, they are used cars so you are dealing a used car salesman, don't be afraid to haggle on the price and shop around before you make the final decision.

Answer 6

always more economical to buy when it's a year old. try to find a dealer demo car or one buried in a car lot that has very, very low mileage. you will lose a great deal of money in that one year if you go new. my friend paid about thirty thousand for a magnum in 2005. in september of 2006, my other friend bought the same car on 22-inch rims with decent miles for fifteen! it's about personal preference if you just want a new car but it's also about luxury tax and other financial gains and/or losses.

Answer 7

Buy a year old.

You're going to be paying ALOT ALOT of money simply for the "self-satisfaction" of buying something never driven before.

I just bought a car with 10,200 miles on it (2005 car) for $9,000 LESS than a brand new one.

The payments for a new one would've been $450/month. I ended up with $298/month payments for a car that looks identical and low miles PLUS still under warranty.

Think about it.

.

Answer 8

Well if the 1 year old car has less than 10k on it buy it.

Answer 9

HELLO !! Swifty.... in today's market and all those cars that the insurance co's shipped out of New Orleans and cleaned up ---- who knows what you are getting for the bargain... buy new and be assured of the warranty ............ that comes with new cars...

Answer 10

you want self satisfaction get some thing that has ben pad off. But nice and it will save you $$$$$$$$$$$$ BIG TAME!!!!