[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... :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

[freakshow]

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

[godwin]

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.

[MindBomber]

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.
http://i1090.photobucket.com/albums/i363/Austin_Taylor88/dep-chart-1.png
http://i1090.photobucket.com/albums/i363/Austin_Taylor88/depreciation1.png
http://i1090.photobucket.com/albums/i363/Austin_Taylor88/depreciation2.png

[Verdasco]

^ 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

[Fafine]

^ 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
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[Verdasco]

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

[AVS_Racing]

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:

[Verdasco]

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

[too_slow]

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

[MindBomber]

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

Somewhat fast and reliable, that equates to a Honda.

I would suggest a 2008 Civic Si.

[GDChoi]

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.

[lowside67]

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.
http://www.esreality.com/files/inlineimages/2010/76115-Joker_not_sure_if_serious.jpg

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

[Cman333]

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.

[ilvtofu]

Somewhat fast and reliable, that equates to a Honda.

I would suggest a 2008 Civic Si.

+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.

[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.

[Mr.HappySilp]

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.

[Doubl3_H]

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.....

[ts14]

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

[mr_chin]

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

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

[hirevtuner]

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

[Fafine]

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[AVS_Racing]

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.

[Energy]

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?

[mos_skeeto]

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.

[GDChoi]

http://www.esreality.com/files/inlineimages/2010/76115-Joker_not_sure_if_serious.jpg

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
K probably made myself look like a fool i guess in that price range yea, but every dealer is a bit different. Thats how it works most of the time where I work (every car differs for sure though), Im probably not allowed to release any price information but lets say its happened before.

[Mr.C]

Don't finance.

Say you have a 20k budget. Buy a 10-12k good used car. Use the rest for repairs. 10-12k will get you something way better than most 20k cars on the market.

[Energy]

Yeah, try to pay cash and not finance especially for cars in this price range.

[Verdasco]

hmm older acura tl or si..... the golf looks not bad even though it is not a sedan, any prices for these 3 cars?

[extracrunchie]

new car cheaper to finance, used cars from dealers are not............if you dont have enough funds to pay it off, dont buy used.

[2010 WRX]

Get a Subaru. For Vancouver roads that are wet 80% of the time AWD is the only way to go if you want any kind of performance. Just my opinion... but even a non turbo AWD Subaru will perform way better than a civic SI when the road is wet. Then there's snow and standing water. Even in the summer it will grip better.

[46_valentinor]

maybe save a couple more months and buy the car without your parents help? honestly, im so glad i didn't rely on my parents because i almost had to buy an altima coupe/ accord coupe because it was what they wanted....oh and it was going to be automatic as well. i just told myself to stop everything and not ask them for their help and got the car that I wanted. also, in the end i ended up saving so much more money because a new altima, accord would have costed me around 30-35k whereas the car i have right now only costed me 17k.

ask yourself what YOU want in a car, be it power, handling, cargo, seats etc etc. know what YOU want because in the end, you will be the one paying for it and every time your payment comes in the mail you are going to hate your car more and more if it wasn't the one you wanted.

[AVS_Racing]

^^^ and your gonna eventually bitch about not wanting it and either sell for a loss or try to trade for something that you want

[Energy]

^^ I got my first car with my parents help and because they paid for most of it it was a car they wanted me to have - an automatic civic sedan and the only say I had was the color lol.

[extracrunchie]

Get a Subaru. For Vancouver roads that are wet 80% of the time AWD is the only way to go if you want any kind of performance. Just my opinion... but even a non turbo AWD Subaru will perform way better than a civic SI when the road is wet. Then there's snow and standing water. Even in the summer it will grip better.

Even though subaru are 4wd, most of them come with summer tires, so traction spend a little more to get all seasons

[Nightwalker]

I bought a vehicle new in '08 and sold it in September. Losing 10k in depreciation isn't fun.

[Verdasco]

mind if i ask which car is that? ^

hmmm i am thinking of switching to coupes and sedans now. only wanted a sedan so people can access it easier in the back but now i am like :fuckthatshit: only shotgun seat is going to fold not drivers :lawl:

[finbar]

I like buying 2-3 year old cars, something coming off lease.

You avoid taking a beating on new car depreciation.



http://www.weibull.com/hotwire/issue21/ht21_1.gif

[LuHua]

Even though subaru are 4wd, most of them come with summer tires, so traction spend a little more to get all seasons

Last I checked, most winters and summers did better than all seasons in the wet. Tire Test: All-Season vs. Snow vs. Summer (http://www.insideline.com/features/tire-test-all-season-vs-snow-vs-summer.html)

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.

[2010 WRX]

maybe save a couple more months and buy the car without your parents help? honestly, im so glad i didn't rely on my parents because i almost had to buy an altima coupe/ accord coupe because it was what they wanted....oh and it was going to be automatic as well. i just told myself to stop everything and not ask them for their help and got the car that I wanted. also, in the end i ended up saving so much more money because a new altima, accord would have costed me around 30-35k whereas the car i have right now only costed me 17k.

ask yourself what YOU want in a car, be it power, handling, cargo, seats etc etc. know what YOU want because in the end, you will be the one paying for it and every time your payment comes in the mail you are going to hate your car more and more if it wasn't the one you wanted.

This makes so much sense it's not even funny. Take your time with the car buying, it can be fun and educational. And get what you want. If you think you want to do tuning and modifying look at getting an older car that has lost more of it's value. Then you have money to do some nice rims, intake, exhaust, coil-overs etc. If you show your parents that you are willing to wait they will be impressed and more likely to help. I'm not a Honda guy so I don't know... but you could take an 04-05 RSX and make it look really nice with some rims, nice SUMMER tires :hotbaby: and some good suspension. Maybe get an air splitter and wing if you think you want to go to the track.

[SumAznGuy]

OP, your posts are too vague. From what I have read, your parents want you to buy a new car in the $15K range and they are willing to give you $5000 as down payment.

Is this correct?

Who is going to pay for insurance and who is paying for gas?

You have now changed your criteria to include coupes as well as sedans. What do you plan on doing with your car? Just a DD car or do you plan on any mods? ICE or rice mods?

How old are you willing to go with the car?

[Santofu]

So you guys are saying financing an 8th generation civic si is not a good idea?

I was thinking about financing one.

[Verdasco]

OP, your posts are too vague. From what I have read, your parents want you to buy a new car in the $15K range and they are willing to give you $5000 as down payment.

Is this correct?

Who is going to pay for insurance and who is paying for gas?

You have now changed your criteria to include coupes as well as sedans. What do you plan on doing with your car? Just a DD car or do you plan on any mods? ICE or rice mods?

How old are you willing to go with the car?

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.

[AVS_Racing]

not too many decent options you can find under 15k for 07+ cars. most will still be entry level cars like base civics. a 07 + tl will still be close to 20.

and to santofu, are you gona finance the whole amount of the car or what? cuz used car interest rate is at least 5%. + extra fees and tax on top if you buy from a dealer

[suzuka84]

buy the car you want at a low price on the used market rather than buying a car your parents want because they want to control and curtail your fun factor. if you want to mitigate the break down exposure do one of the high km services at your next interval ie. replace the timing belt and water bump early.

[hk20000]

I like buying 2-3 year old cars, something coming off lease.

You avoid taking a beating on new car depreciation.



http://www.weibull.com/hotwire/issue21/ht21_1.gif

Yes there is only a certain sweet period where your car runs sort of good and cost next to nothing in depreciation such that you forgot you own it.

It's that feeling you want bro.

Yet what I think is, if you have a 90s Japanese bubble period car, your car is so overbuilt its sweet period is now more than anything else.... like a 93 Camry Avalon SC300 Accord 626s etc somehow just last for-effing-ever. :rukidding:

[Shorn]

For Vancouver roads that are wet 80% of the time AWD is the only way to go if you want any kind of performance.

:seriously:

so you're saying any RWD sports car (M3, C63) etc doesn't have 'any kind of performance' in vancouver?

awd is nice and all. but then again it comes with the extra weight, extra powertrain loss which = less power, and more parts to break.

[AVS_Racing]

^^^ plus extra gas consumption, but it pretty fun in the rain

[SumAznGuy]

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.

Have you even checked around to see what type of car you can get for $15k that is 07 or newer?

Basically with your budget, you are either looking at a rebuilt or something that is very entry level.

A quick search of CL and I see a basic Mazda 3 that might be from one of those rebuild a wreck type dealer.
Dodge Nitro SXT
Mazda5
Kia Spectra
Dodge Avenger from the same dealer as the Mazda 3

2008 Honda Civic SI - White - Lowest Mileage and Lowest Price (http://vancouver.en.craigslist.ca/van/ctd/2883350288.html)

This car might be something worth looking at that is pretty new and might be fun to drive.

[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

[BillyBishop]

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.

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]

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.
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[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]

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]

Last I checked, most winters and summers did better than all seasons in the wet. Tire Test: All-Season vs. Snow vs. Summer (http://www.insideline.com/features/tire-test-all-season-vs-snow-vs-summer.html)

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]

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]

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



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]

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]

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.

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]

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]

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]

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]

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.

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]

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]

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]

^ 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.
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.

[Death2Theft]

Buying 3-4 year old cars is perfect for when they come out of leases.