Telling my family a used car is better than a new one

[BillyBishop]

Originally Posted by Firmware

Side note , cars are the worst investments.

I cant stress that enough, over the last 3 years i've lost maybe like ....

10-15g on depreciation
5g annually on gas x 3
insurance 3.5g annually x3

15 + 15 + 16.5g = 46.5g LOL

Didn't even include maintenance shit

Just get ready to have your bank raped

You didn't buy your car as an investment, though. You bought it to use as transportation.

[godwin]

Then get something with HID as STANDARD. Don't upgrade lights because if you are going to HID it is illegal and most of the time you fellow motorists don't appreciate it! Top of the line Mazda 3 non speed previous gen would have HID as standard. Some CSX etc.

Originally Posted by Verdasco

yes, all is true. I am paying the rest which i can do. No mods/rice other than lights because some cars i can not see if its too dark. Hmm willing to go around 2007/08 - above.

[Firmware]

Originally Posted by Boundless

You didn't buy your car as an investment, though. You bought it to use as transportation.

People have different defintion when it comes to buying cars, some to look good , some to get to point a to b.

I'm just saying once you buy a certain either above your below your pay grade, be ready to pay for it.
Posted via RS Mobile

[FerrariEnzo]

financing on a use car is HIGH!!!

if the brand you are buying isnt the brand of the dealer, you only get max 6months warranty..

[lowside67]

Originally Posted by FerrariEnzo

if the brand you are buying isnt the brand of the dealer, you only get max 6months warranty..

That is ridiculous. If the car still has factory warranty, no matter whether you buy it from a new dealer, used dealer, or privately, it doesn't affect how much warranty is left. If the car does not have factory warranty, most any car dealer can provide a 2-3 year warranty. This is not to say it's free, but it's easy to get if you pay the money!

Mark

[extracrunchie]

Originally Posted by LuHua

Last I checked, most winters and summers did better than all seasons in the wet. Tire Test: All-Season vs. Snow vs. Summer

As for the OP, with a budget like that don't go new. Got a '10 civic auto for $23k out the door, for that much I could've gotten a 07' Lexus ES350, big step up? For used you save on the first big chunk of depreciation, some might still even have warranty. Just look for a reputable dealer, tbh for used I'd probably stick with some new car dealers.

Yup, I am well aware, just that Vancouver winter is very mild and most ppl won't want to buy a extra set of winter tires and rims for winter. So I suggest all season which are decent all rounder, whilst knowing that if it snowed and you'll be ok.

But ultimately its up so the owner, for me i would like to have diff sets for the winter and summer season. But that takes up space to store and money.

Back on topic, OP what cars are you looking at to get 2nd hand, maybe we can direct you in the right direction that way and help you convince your parents.

[FerrariEnzo]

Originally Posted by lowside67

That is ridiculous. If the car still has factory warranty, no matter whether you buy it from a new dealer, used dealer, or privately, it doesn't affect how much warranty is left. If the car does not have factory warranty, most any car dealer can provide a 2-3 year warranty. This is not to say it's free, but it's easy to get if you pay the money!

Mark

I wasnt talking about factory warranty, just the warranty you get from cars that arent from the same brand..

last year i was looking for a car.. came across a honda civic in the hyundai lot, guy told me factory warranty is still there (2 years left) but the hyundai dealership themselves give 3months on powertrain only.. of course if you want a longer warranty you can buy it..


you need to chill out the fuck out...

[LiquidTurbo]

Originally Posted by Verdasco

hey rs, since i have saved up for a car recently, my family has given me a shed of light and is helping me with a 30% down payment. Thing is, they checked out cars without me at the open road... and want a NEW car because they are paranoid about used cars breaking down I need a list of benefits of why buying a used car (older model / year) is way better than buying a new car that is around 15k that includes nothing I worked hard but my i need something to convince them to financing a used car would be more beneficial.

Also, any suggestions for places to buy used cars and suggestions for cars would be good too must be sedan though

Buying a new car = subjecting yourself to a 3-hit combo of financial death and making money for other people.

1st hit (punch in balls) = DEALER MARKUP, salesman, dealership and manufacturer just made money off you because you wanted NEW!

2nd hit (kick to face while hunched over) = TAXES to the tune of 13% on full value, government just stole money from your pockets because you had to have NEW!

3rd hit (removal of your organs) = MASSIVE DEPRECIATION the second you put 1 mile on the odometer no matter what car it is, person who buys it from you in a few years when you get bored/lifestyle changes just saved thousands thanks to you!

Think about it. A $25,000 2012 car will cost you at the very minimum $5,000 more than a 2011 model of the same car bought from a private seller with minimum mileage on it. That's a minimum of a 20% surcharge on the price of the vehicle and I guarantee you can save 25-30% if you're a good hunter and depending on the make/model.

Everyone wants to live that dream, to sign a contract and drive off a lot with a new vehicle and that $400 undercoating package they supposedly stuck on but the smart man on a budget (most of us unless you're the 1%) buys his car from someone else who already subjected themselves to the 3-hit combo above.

[BlackZRoadster]

Originally Posted by FerrariEnzo

I wasnt talking about factory warranty, just the warranty you get from cars that arent from the same brand..

last year i was looking for a car.. came across a honda civic in the hyundai lot, guy told me factory warranty is still there (2 years left) but the hyundai dealership themselves give 3months on powertrain only.. of course if you want a longer warranty you can buy it..


you need to chill out the fuck out...

The person you talked to, doesn't know what he/she is talking about.

If factory has 2 years remaining, why would they give you 3 months on the powertrain? The remaining 2 years would cover the powertrain.

[FerrariEnzo]

i dont know.. thats what the guy told me.. it was a large white guy at Destination Hyundai on kingsway..

ended up going to Open Road in richmond

[lowside67]

Originally Posted by FerrariEnzo

I wasnt talking about factory warranty, just the warranty you get from cars that arent from the same brand..
...
you need to chill out the fuck out...

Chill dude, you gave bad advice, I corrected it. Maybe you thought you gave correct advice but you either didn't know what you were talking about or didn't know how to explain it properly, but either way, it's sorted out now. I've been in the car business for 10 years now so I kind of know what I'm talking about.

Originally Posted by BlackZRoadster

If factory has 2 years remaining, why would they give you 3 months on the powertrain? The remaining 2 years would cover the powertrain.

Precisely.

Mark

[wstce92]

Originally Posted by LiquidTurbo

Buying a new car = subjecting yourself to a 3-hit combo of financial death and making money for other people.

1st hit (punch in balls) = DEALER MARKUP, salesman, dealership and manufacturer just made money off you because you wanted NEW!

2nd hit (kick to face while hunched over) = TAXES to the tune of 13% on full value, government just stole money from your pockets because you had to have NEW!

3rd hit (removal of your organs) = MASSIVE DEPRECIATION the second you put 1 mile on the odometer no matter what car it is, person who buys it from you in a few years when you get bored/lifestyle changes just saved thousands thanks to you!

Think about it. A $25,000 2012 car will cost you at the very minimum $5,000 more than a 2011 model of the same car bought from a private seller with minimum mileage on it. That's a minimum of a 20% surcharge on the price of the vehicle and I guarantee you can save 25-30% if you're a good hunter and depending on the make/model.

Everyone wants to live that dream, to sign a contract and drive off a lot with a new vehicle and that $400 undercoating package they supposedly stuck on but the smart man on a budget (most of us unless you're the 1%) buys his car from someone else who already subjected themselves to the 3-hit combo above.

1st hit: So when you buy a used car at a dealer or privately, somehow magically these people don't want to make money off you? If you buy new, you'll have to pay a premium but if you buy used it'll be exactly what the car's worth?

2nd hit: Also you're telling me we don't have to pay taxes if we buy used? As far as I know, the government takes a cut regardless. But please enlighten me.

3rd hit: This could not be more true. But if you're really concerned about the depreciation, then you're going to want to go older than 2011.

Before you say I'm hating, I currently own and have owned used cars. I also have a new car. The smart man on a budget works out what he can afford, interest rates if he's not paying in cash, and does his homework. There is no absolute rule that a used car is better or even the better financial choice. There are just as many reasons to buy new as there are to buy used. Right off the top of my head, I know SO many people who abuse the crap out of their cars. I wouldn't buy from them if you paid me, but when you're buying used from a stranger, you'd have no clue.
Saying that the smart thing to do is buy used comes off as petty and reeks of jealousy. I don't know you, but it seems like you're the same type as some people I know, and they piss me off. There's no shame in buying used if you can't afford new, but there's 0 need to declare used buyers as the smart guys, and new buyers as dumb unless they're in the 1%. You can be proud of who you are and what you do without putting down those better off than you.

[LiquidTurbo]

Originally Posted by wstce92

There is no absolute rule that a used car is better or even the better financial choice.

Could you find me a situation where if you buy a new car, financially it is better compared to a used or almost-new equivalent?

[BlackZRoadster]

Originally Posted by LiquidTurbo

Could you find me a situation where if you buy a new car, financially it is better compared to a used or almost-new equivalent?

For people who want a low payment, leasing a new car would be cheaper than a used car. It would also obviously be cheaper than financing a used car because you are only leasing approx. 40-45% of the vehicle.

Financially its always lease what depreciates and buy what appreciates.

PS: you pay HST regardless if its new or used (in regards to your earlier post).

edit: also tax is 12% , not sure where you got 13% , unless you are living in a different province.

[LiquidTurbo]

Originally Posted by BlackZRoadster

For people who want a low payment, leasing a new car would be cheaper than a used car. It would also obviously be cheaper than financing a used car because you are only leasing approx. 40-45% of the vehicle.

Financially its always lease what depreciates and buy what appreciates.

PS: you pay HST regardless if its new or used (in regards to your earlier post).

edit: also tax is 12% , not sure where you got 13% , unless you are living in a different province.

Typo with the tax. You have to pay full HST on used cars now even if it's a private sale? Bummer.


Anyway, OP is discussing buying new vs buying old.

[godwin]

Well you might be able to get better lease rates with new car.. eg MB did a 0.2% lease rate on new C classes..

If you are concerned about your financial well being, I always recommend you talk to an accountant (or better a tax lawyer for a written advice) of your current financial situation BEFORE you even think about getting a car.

Everyone's financial situation is different when it comes to write offs.. I think you can find situations where you can take possession of a new car that is financially better than getting a used / almost new equivalent (since you don't technically own the car when you lease). eg if you can write off car leases then it is better to lease from dealership vs buying outright from private seller. For new car models eg the latest BMW 3er, the second hand market is very tight, so the depreciation is always less... so even if you can find it used, you would have to pay a less preferred lease rate / interest rate.

Unfortunately the chart misses 3rd axis, ie the model year with in the car models lifespan.

Obviously this won't apply to OP.. but you asked for a situation.

Originally Posted by LiquidTurbo

Could you find me a situation where if you buy a new car, financially it is better compared to a used or almost-new equivalent?

[Verdasco]

hmmm i was looking at an 08 acura csx for 16.5k @ richmond acura and making it lower(since it has been on sale FOR A LONG time) but my friend said that the model is not worth it. Recommended me a honda accord for around that price. 08 model. Anyone else agree?

[Energy]

You're choosing between a fully loaded CSX and a base Accord at that price.

Accord has more power and is bigger.

CSX has more features (leather, sunroof, HIDs, etc).

If you can stretch your budget a bit you can get a TSX which is what I'd do.

[Verdasco]

^ base TSX though?

[Mr.C]

You have a 20k budget, right? Why not an Optima?

[Mining]

OP: Great understanding of the difference between "under warranty" and "under guarantee" is something you should familiarize yourself with, just a side note when purchasing something like a car or an electronic.

[Verdasco]

Originally Posted by Asmodeus

OP: Great understanding of the difference between "under warranty" and "under guarantee" is something you should familiarize yourself with, just a side note when purchasing something like a car or an electronic.

hmm ic

^ and i do not have 20k budget

[Mr.C]

Originally Posted by Verdasco

hmm ic

^ and i do not have 20k budget

So, right now, how much cash do you have, and how much can you afford per month to spend on gas/insurance/maintenance?

[Energy]

Originally Posted by Verdasco

^ base TSX though?

There is only one trim IMO. Base or the navigation tech pack. You don't really need navigation.

[Death2Theft]

Heads up jello toosh, nat gas is the next trend to save vs gas/diesel. Dont believe me? Wait 5 years and see how popular it becomes.

Originally Posted by GabAlmighty

3-4 years is the optimum time to benefit from depreciation but to also get something with low miles, like mentioned.

The ONLY benefit that I personally see from getting a new car is the warranty, that's the only reason i'm looking at 2012 diesels is because I don't want to have to worry about it for the 5yrs/160km.