New Car vs. Used Car?

[spirit]

Dave Ramsey claims that driving a new car (versus one that's a couple years old) is like throwing a $100-bill out the car window about once a week.

Don't know if it is true but it sure got me to thinking...

[redfox]

I recommend used, no financing, and getting a Toyota ECHO or Yaris. Get one certified from the dealer, or find a top notch mechanic by referral from a friend, and if you go used, get any car you're considering examined by the mechanic.

[JaneV2.0]

I bought a low-mileage used car from a rental agency a couple of years ago. It had 30K miles on it, and now it has 33K. It will be paid off in two months* and my honest neighborhood mechanic thinks it will last forever. I did my homework and didn't have to haggle or get played like a hackysack by a team of car dealership slicksters. I would absolutely do it again. I drove an ancient, unreliable beater for many, many years and will absolutely not do that again. Good luck with whichever car you decide on.

*Bringing my lifetime years of making car payments up to three.

[ApatheticNoMore]

Used. Why? Because I figure if you do your homework you won't spend anywhere near as much on repairs on a used car as the additional price + additional sales tax + more costly insurance + more costly yearly taxes (we have all of these in CA anyway!) will cost you on a new car. In fact I've bought a low mileage used car and haven't spent almost ANYTHING on repairs (oh I needed new tires and stuff, that's are just ordinary maintenance repairs).

What is meant by doing your homework? You need to research the history of the car: http://www.carfax.com/. Make sure the car hasn't been in any accidents at the very least.

And yes you need to take the car to an independent mechanic to have it inspected. If you have a mechanic you trust already that's great, but regardless you need to get the car inspected.

As for big or small cars, well gas prices are going up, you should at least consider the impact of future gas prices. Because I have a feeling those big car people aren't going to be too happy with high gas prices. Actually they always complain about it horribly whenever it happens, like the universe is terribly unfair. (unless they're doing well enough financially that they don't even feel the effects I guess). Depending on how much you anticipate gas prices going up, this might even lead one to leaning toward a hybrid, although they usually carry a hefty premium.

I've survived an accident that should have hurt if not killed me in a honda without a scratch so I almost consider them lucky for me (and stay brand loyal ). Really, I just believe I kinda lucked out then though.

You can also read about the safety ratings for cars within a class - (which never entirely makes up for the bulk of a bigger car, but for me I just don't want to spend all my money on gas, worry much about gas prices - which quite frankly are doing all kinds of scary things, nor worry about that much environmental impact when it's bad enough I drive etc., so bulk is not for me). I did very much research the safety ratings for cars within car classes though, plus compared fuel use. Safety ratings, fuel use etc. can be found here: www.edmunds.com

[reader99]

Be aware that in the current recessionary climate there are some situations where a used car can cost MORE than a similar new car. Apparently people just assume used will be cheaper and the demand for 1, 2, 3 year old cars has skyrocketed. My pastor went looking for a slightly used van and ended up buying new because it was less expensive.

I recently went looking for a replacement for my 1998 chevy. I paid $2,000 for it 3 years ago. The $5000 car I test drove, my mechanic said it had every bit as much corrosion (needs new brake lines) as the car I already own. So I paid $400 for new brake lines on my existing car.

I have had great luck with used cars, I'm careful what I buy. Paying a hundred or two for an occasional repair totally beats paying $200-$400 every month without fail. I am starting to feel like when I'm older I won't like the occasional adventure with older used cars and might start wishing for a nearly new one.

[JaneV2.0]

...I am starting to feel like when I'm older I won't like the occasional adventure with older used cars and might start wishing for a nearly new one.

Yeah. I've had all the automotive "adventures" I ever want to have. Wish my local towing company had a frequent-flyer program; I would have cleaned up.

[early morning]

I put some miles on a car - I buy new and keep for 10+ yrs. I'm on new car number 6, true- but two were totaled in their infancy, and one was just a really bad idea and was parted with fairly quickly... . Currently, I have a Hyundai Accent. It's 6 yrs old with 165K miles. I love the car. It handles well, gets great mileage (35 MPG average), and has no rust, even with our salt-soaked Ohio winters. I never really used the 100K warranty, because nothing ever broke. Don't dismiss them out of hand. They aren't that small or lightweight, and semi's aren't any scarier in them than any other smallish car I've driven. (DS has a Civic, DD has a Neon, I've had various models of VWs and a Nissan Sentra.) FWIW: The only person I knew personally who was killed by a semi was driving a honking huge pickup.

[RCWRTR]

I have a 2009 VW Jetta SE. It has 2733 miles and I've driven it for 2 years and 2 days since buying it new. I quit working full-time in April 2009, so my car has been driven almost exclusively for personal use. Because I don't drive much, I expect to keep it a long time and wanted a car I would be happy with for 20+ years. You may want to consider how long you are planning to keep the car and check TCO (Total Cost of Ownership), resale value, etc. if these are concerns for you.