• filter:
  • Text Only
  • Search this Topic »
Voting History
rated:
There have been a lot of threads lately which end up just being FW'ers ganging up on the poor OP, telling them not to buy a new car:

https://www.fatwallet.com/t/52/629611/
https://www.fatwallet.com/t/52/631082/
https://www.fatwallet.com/t/52/631720/
https://www.fatwallet.com/t/52/623479

If it were up to us, I think everyone in the world would be driving 10-year-old beaters that we bought off eBay . So, my question is, is there EVER a valid FINANCIAL reason to buy a brand new car? Some possibilities:

* Any business reasons?
* Any legal reasons?
* Any investment reasons?
* Warranty?
* Financial incentives such as GM/Ford's employee pricing promotion?

Edit by Mod- This thread has been placed under moderation for going off topic.

Member Summary
Most Recent Posts
If you're talking about a Honda or Toyota, I would say that the difference between brand-new (defined as "last model yea... (more)

jagec (Feb. 05, 2015 @ 3:03p) |

I'll share one story where getting a new car paid off.  A couple years ago I wanted to get a couple year old Tacoma.  Th... (more)

kriskos4 (Feb. 05, 2015 @ 4:44p) |

Did you include the finite life expectancy of a vehicle? If so, then buying used cuts out the total use time of the vehi... (more)

blueiedgod (Feb. 05, 2015 @ 9:16p) |

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
It comes down to personal preference. For example, I bought a new 2006 Mustang. I wanted the newer style and yes, there are used Mustangs out there that were cheaper. However, with the factory discounts I was getting, my new Mustang was only $500 than a used Mustang. Why? Because the demand for used Mustangs was so great that the price on them was close to buying a new Mustang. So yes I spent $500 or so more when I went with the new Mustang, but I have a new vehicle that doesnt have 10000+ miles in the first year.

Now if the savings of going used were well in the thousands, I would be getting a used vehicle in a second.

rated:
Bry said: If it were up to us, I think everyone in the world would be driving 10-year-old beaters that we bought off eBay .

Gave my 15 year old car its annual wash today.

Keeping a car only 10 years seems like such a waste of money.

rated:
Great question, as I usually buy new cars, and always feel a little stupid becasue I know its a loser financially. Im hoping to hear valid reasons so I can feel OK about my next one!

rated:
ogmaster said: Because the demand for used Mustangs was so great that the price on them was close to buying a new Mustang.Actually, the lowered price of the new Mustangs has decreased demand on those a few years old.

rated:
my pops is a fan of buying used, but when he was looking for his most recent car, a saturn, he was able to get 0% financing for 5 years on it, so he couldnt help but go new. he probably would have paid in full otherwise, but with the 0% financing he felt pretty good about using it elsewhere in the mean time which brought the car at least down to a used price.

rated:
I was in this boat this time last year. Though I dont have to drive too far to get to work, I decided that I would much rather spend on a new car than go for a used one. My wanted to drive a car that was good on gas mileage (68 mpg vindicates that decision) and has a lot of other built-in features (GPS, MP3 player) that I dont have to spend on to get into a 15 year old car if at all possible.

But it all boils down to what one can really spend on a car and whether they really need it.

rated:
Bry said: is there EVER a valid FINANCIAL reason to buy a brand new car?

Yes.

When your wife says it's a new car or a divorce.

rated:
Alcibiades said: ogmaster said: Because the demand for used Mustangs was so great that the price on them was close to buying a new Mustang.Actually, the lowered price of the new Mustangs has decreased demand on those a few years old.

Actually I screwed up. The demand for the used mustangs with the new body type(2005-2006) is very high thus the price on them is always high regardless of the thousands of miles on it.

rated:
0% financing.

rated:
Bry said: So, my question is, is there EVER a valid FINANCIAL reason to buy a brand new car?

Yes. From 2002-2005, GM offered crazy incentives at times. Coupled with the maximum rebate on the "old" GM Card, you could have walked away with a brand new Chevy Cavaliar for around $3,500 including tax and tags. Offers haven't been as generous as of late. Hopefully there will be a few good deals around when my 13 year vehicle cycle runs it's course. 13 year old vehicles exude thriftyness. 15 year old ones just scream CHEAP. Don't become another UKS!

rated:
Possible advantages to buying a new car:

If you are a conservative driver who practices common-sense tips to minimize wear-and-tear, you are likely to get more trouble-free miles of driving from a brand-new car than a pre-owned car.

With a pre-owned car, there is a possibility you are buying something driven by a driver (or drivers) who put more wear-and-tear on the car than is evident from the odometer reading. Let's face it: unless you are buying from a personal acquaintance whose driving habits you are well-acquainted with, a pre-owned car could well have been used by a driver (or drivers) are much more aggressive at lane-changes, jack-rabbit starts, jam-on-the-brakes stops, etc. Bad habits create premature wear and tear on the car's suspension, struts, steering, transmission, etc. in ways not always readily detectable (particularly if the car has, say, 30,000 miles or less on it. You can end up with some surprisingly steep repair bills.

With a brand-new car, you should have no risk of a "laundered" vehicle title. Not all states participate in Carfax, each of the 50 states has different registration and title systems, there are still a lot of flood-damaged and insurance-totalled vehicles which end up being unscrupulously restored and resurrected with a fraudulent title and brought onto the used car marketplace. Most of the time, these frauds are astonishingly well done..until a few months down the road, when an accident happens and you find the air bags don't deploy or the car's frame had pre-existing, hidden structural damage.

With a brand-new car, you generally have a sharp rate of depreciation. This cost may be somewhat reduced if you are an aggressive price shopper.

With a used car, if you don't do your homework on the true marketplace values, you can end up over-paying even more than with a used car. Car dealers generally make much fatter profit margins on used cars than new cars, particularly since used-car buyers are more likely to purchase over-priced "warranty protection" schemes which may largely eat up the "savings" of buying a used vehicle!

With a brand-new car, you'll generally pay higher insurance costs, particularly if you finance the purchase.

With a used car, you may have lower insurance costs than a new car. However, you must be very careful to avoid long-term financing since you will have some routine maintenance and repair items on your used car (i.e. on most cars, the timing belt replacement must be performed every 60,000 miles and is a fairly labor-intensive procedure).

Your Mileage May Vary. There are many good arguments for buying used cars, but one thing cannot be overlooked: a huge number of used cars are "dumped" from rental-car and corporate fleets with about 30,000 to 40,000 miles, for a reason. Those used cars get much heavier wear-and-tear than a single-owner, single-driver used car from someone you know in your local community.

rated:
Yes. If you earn enough money an hour, purchasing a used car is not going to be worth the opportunity cost of the lost time. In the same line, a new car is (hypothetically, at least) going to be more reliable and take less attention. YMMV here.

Also, some cars really retain value. Buying a used car makes more sense financially when the price drops dramatically in the first year or two of use. (Think crapy american cars )
If you are buying a high quality car that you are planning to use for a long period of time, it may be worth it to buy new and keep it well maintained. While this thread is supposed to only focus on financial reasons, the main factor behind all financial decision is personal gratification and satisfaction. It is nice to buy a good car new and enjoying it. If you buy a good one, it may even last long enough to justify the sticker price...

rated:
Tax deductions.
You hit the lotto and feel like splurging.
You have lived a long and prosperous FW life and feel like being a skinny wallet for once.
Seriously though, a non-collectible car is a depreciating asset.

rated:
Bry said: There have been a lot of threads lately which end up just being FW'ers ganging up on the poor OP, telling them not to buy a new car:

https://www.fatwallet.com/t/52/629611/
https://www.fatwallet.com/t/52/631082/
https://www.fatwallet.com/t/52/631720/
https://www.fatwallet.com/t/52/623479

If it were up to us, I think everyone in the world would be driving 10-year-old beaters that we bought off eBay . So, my question is, is there EVER a valid FINANCIAL reason to buy a brand new car? Some possibilities:

* Any business reasons?
* Any legal reasons?
* Any investment reasons?
* Warranty?
* Financial incentives such as GM/Ford's employee pricing promotion?

Employee Price Promos are not enough reason for me. They would have to be combined with another reason.

rated:
skwiggey said:
You have lived a long and prosperous FW life and feel like being a skinny wallet for once.


http://www.thinwallet.com/

rated:
OK here's one: You are a real estate agent, and you need one of those cheesy new real estate cars to impress your naive first time buyers.

rated:
slimcustomer said: 13 year old vehicles exude thriftyness. 15 year old ones just scream CHEAP. Don't become another UKS!

I'll have you know I had them replace that bad power steering pump. So it's stopped screaming. For now.

Besides, do you realize how easy it is to merge into traffic when you're driving a car whose body work openly shows you see driving as a contact sport?

Try that with your new hybrid.

rated:
Maybe I would if the price after haggling, rebates, and incentives was less than a comparable model that was off a 3-year lease? That can be pretty tough to find. Then again, I don't buy cars often...and the ones I've had were all used.

rated:
I read somewhere you should avoid buying a used car for the next couple of years because a lot of the Katrina flooded cars will be coming on the market (probably illegally).

rated:
Of course there are situations where it's okay.

It has been the case for certain cars where the new car is cheaper than used cars because of discounts, financing lack of supply of used cars

In addition, you get the warranty, can get it in exactly the configuration you want, and you know the history.

Like everything, do the cost-benefit analysis...never think of any rule as an absolute.

rated:
unknownshopper said: Bry said: is there EVER a valid FINANCIAL reason to buy a brand new car?

Yes.

When your wife says it's a new car or a divorce.


But you have to post a picture of you wife and the board will tell you if its okay

rated:
It's more a matter of what I look like. And her mis-placed willingness to accept me for what I am.

rated:
When its Financially OK to buy new:

1. When your company is paying for it/reimbursing.

2. When you buy a new exotic car that can be resold after a few months at a profit. (Ferrari, Pt Cruiser, BMWz3, Mustang GT when they all first came out)

3. When youre looking at cars such as Accord, Civic, etc where buying last years model NEW (especially during redesign years) is typically cheaper than a 2-3 year old model.

4. When the marital counseling costs exceed the price of just buying her a new car.

rated:
Bry said: If it were up to us, I think everyone in the world would be driving 10-year-old beaters that we bought off eBay

The trick is to not let your 10 year old car look like a beater.

A $90 Porter Cable 7336 random orbital polisher, some detailing clay, Klasse All-in-One polish and sealant, Einzett swirl remover polish and a good pure carnuba topper can make neglected 10year old cars look like well-maintained 3 year old cars.

rated:
Bry said: ...is there EVER a valid FINANCIAL reason to buy a brand new car? Some possibilities:

* Any business reasons?

Yup, Section 179 - SUV (over 6,000 pounds GVWR) tax loophole. $25,000 tax deduction (used to be $100K) during the first year plus the bonus depreciation deduction and regular five-year deperciation schedule. For example, a business owner purchasing a Range Rover Sport with a MSRP of $60,000 would be able to deduct $35,500 in the first year: a $25,000 equipment deduction, $10,500 in bonus depreciation plus the first year regular depreciation

New vehicles weighing less than 6000 GVWR can only deduct up to $10,710 in first-year depreciation.

rated:
no kidding my 1990 vw slays the Looks and Performance of most entry level cars. With no body adjustments, including the dings lol.

rated:
It always comes down to need vs. want.
Do you need a new car? No
Do you want a new car? Yes

While a new car is great I have no need or disire to buy a new car.
In most cases you're buying something that is already worth less than what you paid for it as soon as you receive it.
A car is really a functional item. It is supposed to get you from point A to point B and back again without breaking down.

Then there is the "ding" factor. The car is going to get dinged, scratched or hit no matter how you baby it. It is really out of the owners control.

I have gone with family members and friends to negotiate for a new car and have been told point blank that I am ruining the new car experience. That is what it is an "experience" for most people. The thought of a new car excites most people(not me).

That is why my last 2 cars have been bought with high mileage and driven for 7 plus years(functional). They run fine, they cost less to insure and when I get that ding or scratch it doesn't cost me a nights sleep.

In the end each person will do what they think regardless of what the best thing to do financially is.

rated:
Silly thread as there is no right or wrong answer for this. Some will always buy used and some always buy new and some do both. For me buying a new car is one of life's pleasures. The day I go pick up my new car is always a special day for me and makes me understand why I work hard. Usually I order speciality cars in the fall to plan it for a spring delivery. Tracking the cars progress during the long boring winter days gives me something to do. Now it seems FW has made me to frugal as I did not buy a new toy for this summer but when I do buy it will always be something new. Life is way to short not to enjoy some pleasures whether they make sense or not.

rated:
come on scott, did i not impart the financial wisdom of scoring a $40k Spyder cambiocorsa vs. a new one? the experience getting a different used car is still the same as its "new to you".

i got the same excitement picking up my sl600, and ill be even more excited when i unload it on eBay motors for a tidy profit!

rated:
Yes, there are times...

I bought a new Oldsmobile a few years ago, when they 1st announced the end of the Olds brand. What I got:

- $3500 under sticker
- $3000 rebate
- 5 year extended warranty
- $2200 in GM Card rebates

This made a new car cheaper than a used one... and since I tend to drive them until they die, I'm not really worried about the trade-in value of a car from a dead brand.

rated:
didYOUsearch said: come on scott, did i not impart the financial wisdom of scoring a $40k Spyder cambiocorsa vs. a new one? the experience getting a different used car is still the same as its "new to you".

Maybe now I would consider buying a used Maserati but at the time was not a good option because the car was only out for 2 years and they had problems which were fixed for the 2004's. I had a lot of fun custom ordering that car and tracking its progress in production in Italy. They then ship it here on a cargo/passenger ship which I tracked every day seeing the ports my car visited. Buying that car and sitting in it that first day will be something I will remember my entire life and was worth losing $40K on my one year of owning it. Figure all I am doing is spending some money instead of it going to my wife and possibly her future boyfriend. Can't take it with you.
Also was not a cambiocorsa, Was a GT. Real men use a stick

rated:
buy new honda or toyota and buy used GM since they depreciate like crazy

with a honda or toyota you can buy new, pay it off in 3-4 years and it will still be worth more than 50% of the original value. Close to 65% in some cases. Trade it in for a new car and then do it every 2 years. Your payments will be miniscule.

rated:
scott1961 said: Figure all I am doing is spending some money instead of it going to my wife and possibly her future boyfriend.

Ok, now THAT's gonna need some photos.

rated:
unknownshopper said: scott1961 said: Figure all I am doing is spending some money instead of it going to my wife and possibly her future boyfriend.

Ok, now THAT's gonna need some photos.

Just a fact, Men die before women.

rated:
3. When youre looking at cars such as Accord, Civic, etc where buying last years model NEW (especially during redesign years) is typically cheaper than a 2-3 year old model.

So true.

KBB value for a 2005 MDX/NAV is almost $38K while a brand new 2006 is no more than $37K.


In my opinion, it's always OK to buy "new" versus "used" when

1. You are not buying new because you feel the need to have something "new"
2. You can afford it. I don't mean the extra $50-$100 a month payment.
3. You get a good deal for a new car.
4. Safety issues.

rated:
i say if you want something new...buy it...it doesn't always have to be financially responsible.

rated:
Luniz97 said: i say if you want something new...buy it...it doesn't always have to be financially responsible.Well... just because it's not the best decision based purely on a financial standpoint doesn't mean it is a bad decision, or even a bad financial decision.

There is more than one factor that affects a person's decision to purchase a car, and the financials is just one of them. I don't think anyone focuses on just the financial aspects when they buy a car.

rated:
vkl168 said: KBB value for a 2005 MDX/NAV is almost $38K while a brand new 2006 is no more than $37K.
Which just proves that the KBB retail values are garbage, it does the same for my 2005 Acura TL with 19,000 miles ... KBB Retail is $33,000 ... I paid $32,000 for it 18 months ago. No one is buying a 2005 Acura TL from a dealer with 19,000 miles on it for $33,000, the KBB retail value is meaningless.

Skipping 243 Messages...
rated:
AndroAsc said:   I did some calcs a while back, and the cost of ownership of a relatively new but used (2-3 yr old) vs totally new car was very similar.

If one is buying cars like Toyota Corolla and Honda Civic, is it okay to buy a new car? I still can't get it out of my head that buying a new car is ok, even though the numbers tell me that the total cost of owning a used car is 10-20% cheaper than a new car (assuming no extra repair expenses).

  

Did you include the finite life expectancy of a vehicle? If so, then buying used cuts out the total use time of the vehicle. 

Let's say a vehicle's useful life is 20 years (it is not uncommon to see 20 year old Honda on the road). 

For simplicity of calculations, let's say the new car is $20,000 which works out to $1000/year over 20 year useful  life. 

If the used car is 3 years old, and is bought for less than $17,000, then you break even, since you will only have 17 years of useful life. 

 

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017