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

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... :seriously: and want a NEW car because they are paranoid about used cars breaking down :rukidding: 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 :lawl: 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 :D must be sedan though

It's cheaper. If that isn't important, then a new car is better 90% of the time.

30% down payment of a typical car loan can be rather small. Honestly if you take their money, be prepared to play by their rules and say "Thank You!"

It totally depends on the car / model / year they are looking at. CPO car can have longer warranty. I can give you new cars that are problem prone eg Range Rovers.. and used car that are bullet proof like a Civic.

You might want to rethink your question / problem before asking such vague questions.

It's unlikely you will have any major maintenance issues for the first 80,000 kilometers unless the previous owner severely abused it, but even then warranties are generally transferable.

The number one reason to not buy new is depreciation, of course.
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^ yikes! i might even show them this thread even they are newb to the interwebs :D

@god win, thing is, i am not getting a range rover. I am also taking suggestions of anything that would be around that value

Cheap, fast, reliable. Pick two
Posted via RS Mobile

well the price is given... something a little fast and some what reliable?

how much of the 15k do you have saved up? interest for financing for used cars are pretty expensive + are you planning to get a car from a used dealer or private??? becayse theres also tax on top of the full price of the car from dealers, unlike private deals "cough cough" :pokerface:

maybe 6k? probably finance the rest after for a while

It really depends what car you are looking at. For example, a 2-3yr old Civic/Accord still on warranty will not net you very much savings compared with buying a brand new one. An Acura CSX, on the other hand depreciates significantly faster than a Civic.

Now that I think about it, the only car that I can think of that costs 20k-30k (brand new) and depreciates like crazy is the Suzuki SX4 and the old Elantra (not the Sport Wagon, the resale on those holds up pretty well.)

Domestic cars like the Chevy Cruze/Ford Focus are actually holding up quite nicely in terms of resale, compared with the Escort/Focus and Cobalt/Cavalier of yesteryear

Somewhat fast and reliable, that equates to a Honda.

I would suggest a 2008 Civic Si.

More room for discount, negotiations about price. Because chances are they took the car in from a trade in for about 10k below sticker price.

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If you think the average car dealership has $10k in profit in a used car on anything cheaper than $50k, you are completely and utterly out to lunch. The cars that the poster is looking at buying, Civics and so-forth, a car dealer would be lucky if they had $3k between full asking price and cost.

Let me give you a real world example. We took a 2006 Honda Pilot EX-L on trade and we gave the guy $17k on trade. We then spent $500 inspecting it, detailing, etc. We then put it on sale for $19,995 (total potential profit $2500). We had it for 30 days with no deal, so we took it to the dealer auction and ran it. Surrey Honda bought it for $18,500 (+$400 in auction fees). Out of curiosity, I asked their sales manager who bought it what he expected to retail it for and he said $21,900. They will spend at least $500 to duplicate what we did - inspection and detail, so figure it will stand them around $19,400. They will ask $21,900 and probably be firm on that number or close to it and so their total profit will be around $2000 - $2500. Same amount no matter which dealership sells it.

While there are always variations, you can use 15% as a rough guide. A car dealership is going to aim for 15% between asking price and cost and if it isn't getting at least 10%, I can almost guarantee it's not going to be in business for the long haul.

Mark

I personally will always buy used now unless I have money to burn. I've found once you get around 3-4 years old is when it starts depreciating faster. But you will need to do research on the car you want to buy and make sure it's a reliable car. Check sites and forums. I've gone through my fair share of new and used cars. Don't rush it or you may regret your purchase and want to sell your "new" car at a loss immediately.

I bought a brand new civic SiR. After all taxes worked out to be around 27k. After about 4 years I upgraded to a new BMW and sold the Civic at about a 12K loss. That's almost HALF of what I originally paid. Mind you, you can't expect to recoup the taxes. But I NEVER had an issue with the car, I would only assume if well maintained my old SiR could've lasted another 3-4 years with little repairs. If I could've done it again, I would've bought a USED civic SiR and it would've been almost equally as reliable.

I also got a used Benz many years back for about 20k after taxes. After 3+ years i sold it for 15k. So about 5K depreciation. Used cars also depreciate slower. I lost 25% as opposed to the usual 40-50% if new.

If you plan on getting a Honda/Acura or a Toyota/Lexus I would suggest getting used. You'll still need to do some research on the model you're looking to buy because they all had their flaws during certain years.

My family has a 10+ year old Lexus we got used a few years back. Other than oil changes, and replacing the filters on the car.....haven't needed to put anything else into it in terms of repairs. It's due for a timing belt change which will run about $600+, but other than that no issues at all.

+1 the used car prices for them are very reasonable, especially compared to the base model civics and what you are getting over them. I will be shopping for a new daily this fall/winter and considering one myself.

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.

Cheaper insurance I guess @@ Also if this is your first car you WILL want a cheap 2nd hand car (10k or below). Since you will most likely stratch it, maybe get into some minor accidents..... so a cheaper car you won't feel as sad when there is a dent or something bad happens.

I still believe that any new drivers especially teens their first car should be a crappy 2nd car.

traded in my old car for 3000, then weeks later saw the it at some used car dealership for 5995.

Its been almost 2 years now and the car is still in their lot.....

new cars aren't always problem free, look at the new 3 series kuz those cars are prone to problems

don't buy a used car if you don't know anything about cars imo.

if you're unfortunate, the repairs will be costly.

really depends on how long you plan to keep the car, if you do plan to drive it on the ground then your best bet is a new car cuz no one else has driven it, full warranty

if you change cars every 5 years or so (the norm nowadays), i would suggest getting a good used car or lease a vehicle where you don't have to worry about the depreciation and get to drive new cars

another thing is to consider if you want to mod the car, its cheaper/ easier to mod older used cars with proven parts, than to mod a newer car.

ALSO, if you plan to mod, don't do it on a lease car cuz you are just going to screw yourself over when you have to return it.

What car are you looking at? If it is reliable then go ahead and get used. Your parents won't mind a civic or something like that used but if you're planning to get a used BMW or Audi or VW then I can see why they would prefer a new car.

edit: You said sedan? Used civic si is a great choice. Maybe an older Acura TL-S?

I was in this situation before. I ended up going with a new car.

I picked a car with high resale value so when I'm making enough money to buy my own car I can trade it in for whatever I wanted.