Corrosion: 4 Years/50,000 Miles Rust-Through 6 Years/Unlimited Miles. You could probably buy 3-year-old cars and sell them for a "new" 3-year-old car every single year and still be ahead of buying a new car and keeping it for 10 years. 8% male with the average age of 51 and median income of $390,000. You fix the car for $1000 and get likely a year’s worth from it, maybe more. Long story short. Otherwise: good luck lowering the price. Normal-Philosopher-8. Last 3 months, I've seen on average 20 out of 60 people pay $45-60K in cash for a car. Obviously there are plenty of other reasons to get a new car besides costs It's the worst time to buy a car, new or used. The argument for buying new has never been better, if you can buy it at or near MSRP. 17% for used and 6. Many states will not let you title and register a car without being a licensed driver in that state. My answer is a bit biased as I personally prefer a secondhand luxury car at 17L rather than a new car at 22L. This sub and myself included will tell you that a new car (a depreciating asset) is not a good idea at your age/income level etc. Purchasing used, even certified pre-owned from that same dealership, will land you into a nicer car for a (far) smaller investment. I got an extended warranty from the dealer People who need a car right now or don’t want to wait are buying used. They'll require proactive maintenance and infrequent repairs, but should last a good 5-10 years before it is more trouble than it is worth. Rental companies do their maintenance on them. 9. Cars do not usually appreciate and don't help you grow your wealth, spend your money wisely. There’s nothing wrong with the car that you have now. Chapter V: Finalize Financing. So while you might pay an extra $100 on the car loan, your investments make $600, netting you $500. If you take the financing it’s equivalent to about 2. The prices now are insane, people are paying $40k for used vehicles with near 100k miles on them. C9_Bork. Pay particular attention to your comfort and how well you can see out of the vehicle after you’ve adjusted the seat to your liking. If you can afford to change vehicles more frequently and you want to, have at it. If the dealer can take care of them, you can buy the car and take it to them and they will perform the software updates for free. At the end of each quarter is the CSI is high enough from the surveys the manufacturer sends the dealer a large amount of cash. Usually people are just rougher on them than their own cars. Since the residual (or the value of the car at the end of the lease) is pre-set, you can think of a lease as financing how much the car depreciates over the 3 year period (or however long your lease is). However, eventually it'll be annoying and old, and that's when it's nice to have saved up for a new one. By only making ~$31,000 a year you will end up hurting yourself if you get a large car note. or a 6 year old car for $5k. If you could get your car jump started and drive for an hour you would be good to go. That monthly payment could be going somewhere else. Before you decide to buy, test drive the car that you are considering. A 2 year old car with 25,000 miles on it is $2-$3,000 less than a brand new car. com may also be helpful. Pre-owned vehicle prices are so inflated that you're going to suffer similar depreciation either way. I agree, 10% is absurd… but as of September 2023, the average auto loan rate is 11. Make/Model-specific questions should be asked on Make/Model-specific subreddits. maybe it's just a malfunctioning shock that they can replace for $80. Capitalized cost is the value of the car at the beginning of the lease, and it can be negotiated. Whatever you're trying to buy keep it in your mind in 6 months from now it'll be marked down by 10 grand. You can just buy a trickle charger to charge your dead battery, or get a jump and drive around a bit to let your original battery charge. On the other hand I have also heard about selling a car when it’s about 10 years old before you start having problems with it. And 5. Or you can buy a new to you car (with historically high prices) and pay that $1000 in a few months, and still be on the hook for more before you own the car. (Youtube, Reddit, blogs, car sites etc. You should look what major problems cars of that vintage are having. Dings on the bumper where they hoist their luggage in and out. This comment is NOT accusing you of anything. I wouldn't sweat it too much as buying a reliable 2018 model is just the beginning of the car's life. If I were you. But, the 'market' is not always right, and often a well cared for car has a lot of life left relative to the asking price. Any newer and you pay more on depreciation. But bad financial decisions can be the right decision for you if the benefit you gain (fun, enjoyment, use) outweighs the opportunity cost of the money (retirement funds, less Rentals are often mechanically good to great. Buy the cheapest reliable car that will last you for at least the next 6 years. If you finance only half, you would pay only $1500 in interest. If you have to have to new, shiny car every few years, then leasing is better as you aren’t taking such a big depreciation hit. That said, the owner should DEFINITELY have a receipt for the work done to replace the transmission, showing that it was indeed a new trans, because if not, it just may be a junkyard trans in which case DO NOT BUY. It looks like 21 model Venues can be taken care of now. You absolutely should not go buy a new car. The average used car payment is 530…. Ask if they’d also like to take your trade after you’ve settled on a buy price. Carvana has 2020/2021 Traverse, same options, for $48k, with 10,000k+ miles. Mar 23, 2022 · Find out how to buy a new car. However, given the insanity of the used car market, I'm wondering if it makes more sense to buy new. If you're the only person to ever own a car, you know what has happened to that car. That's just kind of the way it works. You get awd, more power, it’s almost a second faster 0-60, and if you look at fuelly the hybrids are averaging 8-10 more mpg over the gas. 125 votes, 302 comments. I'd buy a much different vehicle int he 2000-2006 year range than I would the 2011-2016 range, etc. You should get some money off a damaged car and it might cost you a little when you trade it in but honestly probably not, most dealers aren't going to check. IMO, buying is better if you plan on keeping the car long term. New and lightly used are definitely close to the same. Drivetrain: 6 Years/70,000 Miles. You’re not prepared to buy a home if you have $12k in credit card debt. Know what you want, but don't be married to a specific car model in case a better deal comes along. and don't panic until you get a diagnosis on the current car. 49% for upto 60 months. to get base pricing for your trade in. If you don't want to pay cash for a brand new car then get a used one. Roadside Assistance: 6 Years/70,000 Miles. Buy cash !!!!!! Lease if you like having a new car every few years, can handle the payment, and don't want to have to worry about any repairs or problems that may come up. you could get a 4 year old car for $8k. Say a $30,000 car out the door. But Used car prices have skyrocketed over the last year. Post #2: Day of Purchase and Beyond. It's not worth it to replace the engine. If your current car only needs $1500 in repairs then that’s obviously the more responsible option, since if you buy the new car you’ll be paying a car payment and higher insurance payment. Put the car payment money away and when prices come back down, you might be able to just pay cash outright for the new car. If you buy the used car at 10k and invest the other 10k you saved from not buying a new $20k car, then at an average of 7% interest from stock/bond funds, you'll get an average of $7,478 in interest over the 8. •. It might work out better to go used if you buy from a person, not a dealership. Fix the civic. They're making amazing cars now, with great value and some of the best infotainment systems on the market. anonymousbequest. Cars in the $5k-$8k range are normally pretty good (Hondas, Toyotas, Nissans are pretty reliable). Mine, bought with 80K miles, needed new brake discs, new spark plugs, new filters and an oil change. So my question is. Sell later, you risk high repair costs. Don't forget you still have to pay for insurance and gas. Normally, a used car roughly 4 years old is the best value. Then go to the dealer negotiate the buy price for the new car. The real issue is when someone making $50k/year is driving a new BMW every couple years. Also if you do this, give the dealer all 10's. That way the most you can possibly lose is the price of the car, but if you keep it running and sell it later then you'll probably lose less than $1000 - because any car that's running and registered is normally worth about $1000. Hyundai and Kia had a bad reputation 15 years ago, and that deserves to be wiped away. I was at a dealership yesterday morning and when I dropped off my vehicle began to discuss how crazy it is that the dealership (which normally holds 150+ new vehicles) only had 2 (yes, 2) brand new vehicles on the lot. Used car market now is an absolute scam. Buy a used car if your car's on its last leg and is not repairable without major $$$. Worst thing you can do is go in with a mindset that you are going to leave with a car the same day. . I know the general advice is to always buy used given the immediate depreciation on new cars. Try to buy one that was originally purchased at a local dealer and traded at a local dealer (Harder to find, but the info is in the carfax. For that price you could get a used Corolla with 80k miles. • 3 yr. Ya you can get a new car for less, but you’re going to wait up to 3 months and the factory could still run into supply constraints and have to cancel your build. The average car payment in America in 2023 is 730. Wait till at least the summer of 2022 before purchasing a car. 3 years of your car's life. Normal mechanics won't do things properly either, leaving off clips, not torque wrenching things Even if you’re willing to go through the effort of washing + waxing the car every week or two letting a car live outside is hard on it. According to a recent First use carvana, Vroom, Shift, Carmax etc. The sweet spot where the cost of ownership (depreciation + maintenance) is minimized - buy a high quality car (high reliability rating) 4 years old and sell at 8 years old, no older than 10. Jumper cables, tire pressure gauge, air compressor (screw doing it at a gas station), maybe some extra fluids (wiper, oil, etc), a bunch of microfiber cloths, water, pen and paper, sunglasses, umbrella. Some time around March-Apr-June, people get their tax returns and demand for new cars go up, so fewer discounts. And of course, three things that I think are important to ALWAYS have on you; Knife, light, fire. Car recommendations. 36 votes, 72 comments. Wait a year and see if the dealer offers any specials like 0% financing, as inventory starts to come back to normal levels I’m sure you’ll see some The cheapest way to own a car is normally to buy an old, common model for <$2000. Carfax and similar information now helps in that regard with a used car, but you still don't know whether someone beat As soon as you move to State B, you will need to get a drivers license. It’s in great shape except for the tires. 89. If you buy another used car at $14,380 x rate of inflation, you are essentially spending another $14,380/9*4 (multiplying by 9/4 to adjust the costs to the lifespan of the new vehicle) = $6,391. Opt for a Sonata with the 1. Buy new car. 6T engine (paired to an 8-speed automatic) and you should have everything you want in a sedan. Finance it on a promo for 3 years. Especially when you can find a 5-7 year old car from a private seller that will have depreciated something approaching normal. THEN buy a brand new car from Honda or Toyota in the $35,000-$40,000 range. If you haven’t already done so shop around different mechanics to get the work done at a lower price hopefully you’re not at the dealer. 99% was obscene. almost enough to get another $10k car that will last you another 8. And don’t forget to add in that delicious double digit interest rate from Blackstone (Carvanas in house financier). In the future you can set a budget based on your salary, other debts, and size of your savings and investments. Tips for buying a new car: Set a budget that you can afford, and then stick to it! Do you research and figure out exactly what you want in terms of make/model and features. So if you can find a nice new car that you like, you get full factory warranty, good interest rates and other benefits that come with new cars. Given the three inputs, 1. Worst case scenario is the new transmission grenades itself 366 days after you get it fixed AND the mechanic refuses to honor it 1 day out of warranty. 2. 0. That means getting a new car every 7 years or so. Buying or leasing a new car is a bad financial decision. Buy if you want to keep a car for a longer period of time and eventually pay it off, so no payment. It will be likely cheaper to invest the $3000 into fixing the car. all have great info). Although the KIA is more luxurious than the Camaro, it’s the same principle of sometimes you go with what you perceive as having more value. TotallyGetTheM50s. In this market, it's not a bad idea to buy new. wild_b_cat. Chapter VI: Negotiate Prices Over Email. "Take the Porsche 911. There won't be any black friday/end of the year deals this year due to the chip shortage and extremely low inventory. The best value is to own a car without payments. If you asked in the Car Enthusiast sub you might get more yes' to buying a new car. Owning the car as long as possible is likely to make it cheaper over its lifetime than the few thousand you save buying a slightly used car. If you finance, a lot of lenders won't even allow you to complete the loan process unless you have insurance when you sign. dabber808. 1 1. Yes, when you lease a car, you negotiate ahead of time the depreciation for the duration of the lease. Significantly better. You’ll pay it off and actually have some equity (and savings) when it comes time to buy another car. 11 in today's dollars. Btw, dont put all of that payout toward down payment. I just got a new 2020 Cadillac XT5 (200 miles). Call a Hyundai dealer, give them the VIN. u/Spare-Programmer7577. If you want, upgrade it. 9% as another example. I’d bail. But a new vehicle might have discounts, incentives, and/or rebates available. Reply reply. Have your mechanic install an aftermarket back up camera or whatever. I am helping someone sell a 2018 Toyota Corolla. As a newbie driver rather than new or used , you should choose a car i. I would fix the car, no question. To be fair, peace of mind is part of the equation. Maintenance: 1 Year/1 Visit. A Toyota 2. It is the kick-off to the summer car sales season and typically offers a multitude of deals from both dealers and automakers. You would save quite a bit and you would get almost new car. However, with buying an older model, you can get top trim levels for the same price as buying a base trim level of something new. That's only a difference of $100 a year! If you purchase older used cars it also moves more in favor of buying new. Dad is right. Some used is priced higher than new - because the dealer purchased the trade with market adjustment in mind, and now has to sell high. Now compare that to a $20k car. You can't go wrong with Honda, Toyota, or Mazda. Chapter IV: Test Drive Target Vehicles. Or rather, most of the cash. The mechanic should see what needs to be changed and won't charge much for that. Chapter III: Research and Narrow Down Vehicle Options. Post #1: Prior to Purchase Day. Award. my sister was buying a car after the pontiac hit 309,000 she did the math. It’s kind of crazy out there right now. Rinse and repeat. Then use what left to buy 25k new car which will last you at least 10 years with regular maintenance. Higher if you pay it off early as opposed to taking the customer cash. Secondly inflation exists. 58% for new. Here’s an answer and a discussion thread to point at every time this comes up: “The average household income of a new BMW car or SUV buyer is $124,800 per year. In India the luxury car market boomed after 2008 and then after 2012. If it's previously owned, ask to drive it up and down hill. 00, some well over 1000. You're not getting a new Civic (or something better than a new Civic) for $175/month. ”. Nov 10, 2023 · The weekends where you'll most likely find heavily promoted deals include Memorial Day, Labor Day, Fourth of July and Presidents' Day. You can learn more from 10 minutes behind the wheel than from hours of research. So that means by buying the new car you get a dollar return on -$8500 + $6,391 = -$2,108. Dont be a douche. We break it down for you. Before then, the dwindling market would make used cars skyrocket in price. Chances are it will be fine but I would avoid it. • 2 yr. 6% APR over the course of the loan. If it’s a weekend car for fun and I don’t need it to start up everyday, luxury car. Figure out what you think is fair, and offer them. I see no reason to buy that used car in lieu of brand new. That would necessarily create a world where no cars exist since if no one bought new cars then no more used cars would make it to market, creating an ever-decreasing amount of cars to buy as they break down to the point of being irreparable. berninicaco3. If I need it to be cheap and reliable, I’m getting the newer car. Check the Carfax for accident, previous owner types, and ESPECIALLY Maintenance intervals. Plan to keep the car for the full life of the vehicle (200K miles +) 3. ago. So, no. Check the AutosNetwork for a complete list of those subreddits. The reason why it needed a new engine is more of a reason to avoid than the actual engine replacement. Chapter II: Calculate your Vehicle Budget. e is reliable and cheap to mantain. The new sticker price of the car is indicative of running costs, if its a 50k car new, then you have 50k car running costs, good quality parts aren't cheap, very little will be an easy part swapping repair, lots of covers and weird clips etc. Unfortunately it's a bad time to buy a car. APR are shitty along with prices. The financially responsible answer is to buy a Corolla or Prius and drive it for 15+ years and 200k+ miles, but humans love new, shiny things. You should have insurance when you take possession and drive it home. I like to buy less popular cars that have lower than average miles for their age - these are usually the best deals. Avoid cars that the dealer picked up at auction (On the A lot of people say buying a new car is a terrible idea because it depreciates so quickly, but I do want the freedom to drive around to places and not having to pay for a old crap car for the similar price. You now know what the wholesale price of your trade in is and have removed the dealer playing the numbers game on I'm not sure it would make a difference in the buying steps. I’m considering getting a cheap set of new tires. If you can wait, definitely wait. But new car purchases seem especially bad to me. Forget about trying to get the nicest possible luxury car in your price range, that shit is for your next car purchase, years down the road. (mine has ~340'000km/~215'000 miles) While EVs do have less moving parts than their ICE counterpart, they still have fluids (coolant, brake fluid, refrigerant). I recently bought a brand new 2022 Traverse from Auto Nation for $35k. " Two stats from the same source. Well when the shitty ones cost less than $1500, registration costs roughly $40 per year and insurance is like $300 per 6 months for both. It comes with the following factory warranties: Basic: 4 Years/50,000 Miles. You should have the car checked out by a trusty mechanic either way. Cars with 200,000 miles on them can still be great vehicles if they were maintained. A 5 year old Camry is going to cost $12,000 (according to KBB). in 2009 with the last major recession, new cars weren't moving and everyone was buying used cars because, you know, everyone knows, used cars are cheaper. May 16, 2024 · Do: Take a Test Drive. Also 4 owners might be a red flag or not at all depending on the vehicle and it's age. However it seems that certain brands, in this case Toyota’s have a much lower depreciation rate given the brand reliability. Buy a new car because you need/want one and can afford to. I'm so glad I can fix most things myself on my car. everydaydriver. Q&A. From knowing your shopping style to researching, financing, and comparing. I’m not sure that there’s a huge difference between a new car and a 2-3 year old car in terms of safety unless there’s a new generation or higher trim level with more safety features. July-Aug-Sept, everything holds steady. Buying used would be a small risk of getting something beat on by the previous owner. Yes, plan on having insurance before you buy the car. 99% on a used car loan by my credit union, and thinking the dealership’s 2. in a word, yes, it can. Replacing an engine will work and it will function the same as before. For new Honda and Toyota they have low 3% for 22 pilot and accord. ). Its buyers are 86. If you can last another year, it would financially be worth it until the car shortage normalized (hopefully). But rentals can also often be cosmetically not the best. Contact the lender and ask for a revised monthly payment after canceling all the bullshit. Nothing else really matters. Sep 17, 2022 · Zach Shefska, co-founder and CEO of YAA, an advocacy website for car buyers, says you should wait to buy a car since prices are going to remain high due to low inventory. As an owner of an electric looking to switch back to gas 1)you need home charging to fully enjoy the car 2) fuel and maintenance savings and tax credits are great, but down to the numbers you have to be able afford it 3) I can’t wait to own a home and an EV, but right now I can’t own an EV without home charging 4) evaluate how much car you need and get the most efficient car you can. 3 years. If it's an old cayenne, it's been passed The best thing you can do is use that $5000 and buy a beater car outright. Underbody components with weak rustproofing like thinly painted brackets/unpainted fasteners will rust, every night condensation will accumulate on the body and in various crevices, etc. Try to negotiate for bigger payout because of market condition. That’s definitely a good point if you’re comparing new cars versus older ones - even 5-10 years. Most (not all) 0% car loans through manufacture financing have an either or. Hybrid is still better for the average person. A car loan (assuming good credit) won't be higher than 5% and nowadays around 3%. 1. Yes it will be fully charged. The new car smell. People taking on 20-40k of debt at 6% or more interest for a car that is more expensive to insure are, to me, out of their minds. Used luxury 100%. The Prius has been reported to be the most reliable car in the north American market for at least the past ten years. 0% on a new nissan versa versus 6% on the used, the considering warranty TL;DR: Hold the new car survey over the dealers head and watch them squirm. I often hear that if you want to buy a car it’s best to buy a used car that’s about 3-4 years old that way most of it’s depreciation has already happened. You could spend 8k and still have a 10 year old car, put it towards something new. Chapter I: Understand your Financial Health. The convenience of buying now in State A could well be lost in the massive hassle and expense of registering in State B. This idea that once you pay off the car it’s now time to buy a new one is just awful. If they still won't go down after you leave, then you know they're firm on the price. Doesn’t take a genius to figure out you’re being robbed. Then pay off CC debt because of high interest. . Or if those "amazing" prices are already here. 00 That seems insane to me. Rubber will age faster as well, even if you religiously rub aerospace In general, you can own those money pits (without it being the money pit), if you are willing to put the effort. If you think about it, that’s an extra ~120 miles more per tank or around $12-15. $2100 / 12 months = $175/month. I've read that: Jan-Feb has some "holdover" incentives from December (which is usually the best month). First pay off the credit cards, then save up and buy a car, then save for a down payment on a house. 2019 models with 50k miles might be going for $1000 less than a brand new one. true. You can buy another 2013 A4 for 13k. Vs financing 5. If they won't do it, and you don't need a car, then leave and check somewhere else. Put $25k in an investment account, put $10k down on the car. All cars need work, you're just trying to avoid major issues like engine and transmission failures, or any other premature, expensive to fix items (TURBOS, AVOID TURBOS). Of those, Memorial Day is one of the best times to buy. Would prefer a used mid-sized sedan or small truck, four doors, budget up to $10k. If you don't have a policy, at all, then I'd call and get quotes in advance. enki941. You could do either. if so, pay up and keep driving. www. Most likely selling to a dealer. I would take a day to drive to different insurance companies and ask for quotes, what they do and don't cover, etc. 0% for 36mo or $1200 in customer cash. Reply. The worst thing you can do is take out more loans than you need to. But individual people rarely mess with $30,000 transactions, they usually trade something in (at best) which means you're buying a car for $30k that the dealer just bought from the original owner for $27k. I live in Boston and I'm seeing 2017/18 vehicles selling for a couple grand less or equal to starting price of the same vehicle model year 22. They offer huge discounts for multi cars. Don’t buy a vehicle on debt; save up and pay cash. Keep living like you make $46k. One big factor in this is the amount of miles per year - generally 10, 12 or 15k, but you can negotiate this ahead of time based on your needs. You need to work on increasing your earnings potential and invest your money for retirement, neither which require you buying a new car. Inventory will start slowly increasing in 2022 but you will only see an effect on price after March 2022. A few other subreddits worth checking out that will help your car buying experience are /r/WhatCarShouldIBuy , /r/UsedCars and /r/AskCarSales . I remember just a few years ago getting quoted 0. It's about the same as a more expensive car but now you have two! Adding a car to my insurance added like $80 per 6 months. If you invest that $25k right you should be earning at least 9% interest on it while your car loan is sitting at around 4%. If you can buy your next car outright in 5, 10, or 15 years, yay, but nothing will be cheaper than driving that car when it's paid off. Your battery could be ok. You have it set to be active the day you buy the car. Then, bring someone you trust whom you'll go to for car troubles down the road to inspect it before the purchase. It’s about having a reasonable budget for you personally and NOT paying a bunch in interest alone. Honestly anything that is daily driven for many miles is going to end up getting into some damage or an accident. Yes, buy a used car, but know what you are getting. Then when you're ready to buy you can call and start the policy with the VIN. Looking for a car to affordably and reliably take me ~15 miles to work and back five days per week, plus ~30 miles to friends' houses and back every week or two. What random Redditors do definitely doesn’t matter and you’ll likely find most aren’t making particularly smart choices. This is so far the best answer here. But if still you like that new car smell, buy a year or 2 year old low mileage car. Which comes down to $25 a month over 5 years. With trucks easily in the 60-70k range, often touching 100k, unless your putting down large down payments, or paying in full, some of these easily are out pricing the average American. If the list of things to change seems unreasonable, go to a 2nd mechanic and repeat the process. Inventory of new cars is low, driving up prices and incentivizing people to keep their cars on the road, restricting supply of used cars and likewise driving up prices. Research that on State B's website. Auto. DON'T AGREE TO BUY ON THE SPOT. GM is offering 0% APR for well qualified (which I meet) and Mazda has 0. Ask if the recalls can be taken care of and when. No, never purchase a vehicle new from a dealership. That makes the new car $2,100/year ($21,000 divided by 10) and the used car $ 2,000 per year ($16,000 divided by 8). The tread is low on all of them and one has a crack. Financially speaking, you buy the car that minimizes total cost of ownership, and you keep it until some combination of: it gets old enough that its total cost of ownership starts to increase, and/or you find newer cars with lower total cost of ownership; then you sell one and buy the other. Chapter VII: Final Prep. Roscoe340. 99% is not a good apr either. Even purchasing a car that's one year old will save a lot, and you don't need to deal with dealership orders or a break-in period. Share. Newer cars can come with less risk so it’s not necessarily about whether it’s new or used. In fact year 1 has almost as much depreciation as years 5-10. Have it detailed. These surveys mean literally everything. You can easily, through an index fund, get 7%+ (18% the last year). If you absolutely need to buy a car then buy an early 2000s beater for a year or so with a max price of $5,000 regardless of miles. Avoid auto loans if you can. There is only one time you should ever use NEVER in a sentence and that is to say one should NEVER use absolutes. rv oy qu yx cf pz bw ng wt bx