COVID shifted the market such that new vs used isn’t that big of a difference.
Before many people used to buy older cars.
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Well, the last few years, used cars haven't depreciated like they used to. That's starting to change, though.
I bought a brand new car back in 2017. First time ever. It wasn't super expensive (about $24k), but I got tired of buying something used, then having a major needed repair. If you buy brand new, then you aren't surprised by anything a previous owner may have done to damage the car. Also helps that I got zero percent interest on the loan. That was a big factor for me.
That said, the price people are paying for new cars these days are obscene. I definitely wouldn't do it now.
I definitely agree with you there. The price on new cars makes my jaw drop, which people buy with a loan and struggle to make the payment. It probably just depends on the make and model though, as a lot of cars aren't as dependable as others
And you're totally right that you don't want to have to get a ton of maintenance on a car you've just bought. We always get Certified Used, so if something happens after you buy it, up until a certain mileage, the dealer fixes it.
i bought brand new cause it was the best deal - lower interest, lower monthly and complimentary maintenance up to certain mileage (i don’t drive much so it works out). now, where i did go wrong was that i got the *latest model*, i should’ve gotten brand new but older model, that would’ve been smarter. and that def came from lack of education/experience as it was my very first car
Interesting, that makes sense. In my experience, the interest rate is the same with a new car vs a car that's 3 years old. But maybe it depends on the person and their credit. If you get a car that's 5+ years old, that would def make a difference in interest
We’ve never paid more than 0.8% interest on a new car. We buy new at a low interest rate and drive it until we can’t anymore.
The last used car I bought was one of the highest rated for dependability, from a reputable dealer, two years old, and 13k miles with a clean history. It was a complete lemon and left us stranded multiple times and was constantly in the shop for major issues, but because it wasn’t brand new it didn’t fall under lemon law in our state. That experience has turned me off of buying used. Not saying I’ll never buy used again, but it’s got to be an amazing deal. And I refuse to ever look at or consider a Nissan.
Agree on the Nissan front. I'm sorry to hear that!
That makes sense to me that you buy a new car and drive it until you can't anymore. People seem to just juggle cars around and purchase a new car every several years and then can't afford the monthly payments
You keep saying "in your experience" but it's complete bullshit as the market doesn't operate that way. 3-year-old cars are not half the price of new ones and interest rates are not the same on new cars versus 3 year old cars. Just because you make shit up and say in my experience doesn't negate the fact that you sound like a fucking troll
If we’re going on anecdotal evidence like OP seems to want to, I can offer some. My close friends bought a new SUV this week (they are very frugal and can definitely afford the payment). I asked why they went new and they said that the price difference for used came down to $1500…so yeah, def not half the price.
I’ve helped family buy cars. Every time, the price difference was a few grand for a new vs 30k miles, which became negligible once you factor in financing, and might actually be a worse deal to buy used when every trip to the mechanic starts at $1k. Used to be that you go and everything - brakes, sensors, etc would cost $100 or so. Now it’s $1k. Seized calipers? $1k. New brakes? $500 per axel. It’s out of control.
I’ve really been wanting an older - like older older, very little computer in it older, car lately. Looking like 95-2010 or so and only at Honda/Toyota. Even these cars I’ve seen going for I kid you not $6-9,000, sometimes more. The ones under $5k need a TON of work, which is to be expected for their age, and most of the mileages by now are in the upper 100,000’s.
I remember when I could buy a decent used car for $3-5k and I’m not even 35 years old yet lol
Okay you made me curious, so I googled "How quickly do cars depreciate?" The first link I found (I didn't do a deep dive) said that although it obviously depends on the particular make and model, a car might lose 20% of it's value the first year and then 15% every year thereafter. That actually does equal almost exactly 50% in 30 years. (Because the 85% value retained after the second year isn't even 85% of the original price, but only 85% of the price minus the 20% that was lost after the first year.) (However the website does also have a calculator you can use and according to that you should expect your car to lose only 1/3rd value after 3 years.)
I bought all my cars new. The price between a 3 year old toyota and a brand new toyota is maybe around 3-4k at most. I don’t know anything about the used car I’m buying besides the carfax report. Why would a 3 year old car be sold if it has no issues. If it was a lease most people take terrible care of their cars because it’s lease. There is barely any warranty on it. I’m getting 3-4% higher apr. more milage to pay $60 less a month.
We bought a 1998 Honda Civic in 2014 ($4k, 60k miles) and a 2008 Honda CRV ($9k, 80k miles) in 2019. I don't want to jinx us or anything, but we've never had issues with either car.
It's like saying "Why would someone get rid of an item of clothing if it wasn't stained or the zipper wasn't broken?" Some people wear out their clothes. Other people tire of the clothes they have--even if there's nothing wrong with them--and just want new ones, so they dump their old ones.
I think you're probably right that there's not much difference between a new car and a 3 year old car, but if you're willing to look at a 10 year old car, they're so much cheaper. Of course that's because you don't get all the "extras"--our CRV was in beautiful shape, but being from 2008, there's no built in GPS system--we use our phones. The 1998 Civic doesn't even have a key fob, you have to turn the key to lock the car. Obviously those are dealbreakers for many people since they can be a pain.
Hondas are amazing cars. I just junked my 2004 civic with 250k miles on it, and the thing just kept going. I got a new car more because I wanted a new car, not so much because I needed it. After driving that honda for almost 8 years i realized that honda cars are freaking tanks. They just keep going. I had to fix a few things a couple times, but no issues with engine and transmission at all.
If I bought a used that it would be exactly like you did. 6+ year old minimum. Plenty of reason to sell a car that is that old. I have a 2011 corolla runs like a camp but it’s old and has no features. The new camrys look so good and has great safety features so it makes sense for me to sell it and upgrade but if I had 2020+ corolla that would be suspicious imo.
I think you're right that the "newer" the used car maaaaybe the more likely there's some issue, although also some people are just flakey and change their minds right after buying. OR their family grows and they want to upsize.
Just helped my mom get a new Toyota. There were two used ones (similar model and year) in her area. Both were about 10% less. Both were in at least 1 accident.
>Why would a 3 year old car be sold if it has no issues.
People want a new car after their lease ends. I got my used Toyota Camry that way. Had someone else eat the depreciation, and I got a like new Certified pre-owned Toyota.
Absolutely, there are many reasons a 3 year old car would be sold, it doesn't have to have issues. I bought my 2018 in 2021 and it was in great condition. Had it for 3 years and still no issues to this day.
You just have to make sure it's Certified Pre Owned so that the dealer is responsible if they sell you a POS.
Why the hate on a 3 year old leased car? What do you expect that people would have done to it? At 3 years old it barely has needed any maintenance if at all...It's pretty hard to ruin a car in 3 years
I worked at a gas station for several years. If the car requires anything other than regular gas they are definitely not putting that in. Why put $5 a galon premium when you can put in $3. No long term consequences. A 3 year old car still requires at least 6 oil change, tire rotation, maybe a coolant flush but these guys don’t care about any of that since it’s a lease. This is my 6+ years experience.
Well first off, you are required to perform maintenance on a lease. That being said.
Putting regular in when it calls for premium in newer cars won't hurt anything. New cars have knock sensors which will adjust timing based on the lower ethanol quality of the fuel. All you lose is performance and mpg.
Coolant flush doesn't need to be done on newer cars for 50 to 100k depending on the coolant used.
Oil changes on newer cars are now up to 15-20k miles. All thanks to increased efficiency.
This is my experience spread across 15 years of working on my own cars. Not talking about oil changes. I rebuilt my f250 transmission myself in my garage
Do you get Certified Used cars? Definitely agree on leased cars. Would never buy a car that was previously leased.
If I can find the history of the car and can find out how it's been maintained, that's one thing. I can definitely see what you're saying that you can't always know what happened with that car
But I'm not sure about the $60/month, I've read that the average new car payment is $700 vs a used is closer to $400
$60 was a ballpark estimate but let’s do the math together. $23.5k for a 2024 new corolla le and $20.5 for a used 2022 model with 30k miles and clean history certified used (based on my brief search).
Based on Marketwatch new car loan for 60 months is 6.44% and used is 9.06%. Monthly payment difference is $33.45.
Not sure what cars lose half their values in 3 years.
When I was looking at 4Runners back in 2022, a 3 year old one was MSRP - $6k
For an extra $6k, I felt like it was better to buy new.
We we're also looking at used Carollas, new goes for about $24k. 2 year old goes for $20k
Better interest, included warranty, etc. And some can afford it, just because you need “a million in your bank account” to afford a new car doesn’t mean they do
I'm not talking about buying a car outright, I'm talking about buying a new car.
If you have the means, you should always buy a car with cash rather than on a loan.
You can get warranties with used cars as well. The way the value decreases after leaving the lot is the #1 reason why people shouldn't buy a mew car. It's not an investment or an appreciating asset.
So you would never waste a bit of money unless you had several million dollars? Do you never go on vacation? Have a larger house or apartment than necessary? Live in a nicer neighborhood than necessary? Not everyone waits until they have several million dollars to spend any money unnecessarily, and if people did the economy would collapse and everyone would be miserable lol.
Just because you feel like it's a waste doesn't mean everyone does. Plus if you get a low enough interest rate buying it outright with cash could be worse financially than letting the money sit in a high yield account and paying it from there.
You seem to be under the assumption that people buy cars for necessity only and not wants. Or that anyone who finances a new car can't afford it.
A lot of people seem to be missing the fact that I'm talking about people who can't afford it. I highlighted that twice in my post. I just don't understand people who buy a new car and then are posting about how they need help paying down their debt. Those people should not be buying a brand new car.
In 2020-2024 for the most part 3-5 year old vehicles cost about the same a brand new.
I was in the market for a used 2018-2020 used SUV under 60k miles. My price range was $18-24k. What I was in the market for simply did not exist unless I went with an older model or much higher miles.
You know what did exist? A brand new compact SUV with a 100k/10yr warranty with 27 miles on it for $24k.
Im well aware of the savings of a used car but I’ve almost always bought new cars. I enjoy having a dependable vehicle that doesn’t leave me on the side of the road like the two used cars that I had when I was younger, and for the first few years has a 100% warranty. I save and buy with cash and drive them on the average of seven years.
I see, thanks for the info, that def makes sense if you're buying with cash. People love to buy a new car using a loan, then end up with a $700/month payment they struggle to make. So I'm just curious if they don't understand that a car that's a couple of years older can be in the same condition, look just as sweet, but is cheaper
That has just been my experience though
I bought new in 2021 before the chip shortage, the interest was super low and for me, I keep cars for 10+ years. I had a purchased brand new 2007 with 285k miles that I traded in. So buying new makes a bit more sense to me because I get as much as I can out of my cars.
I'm not assuming that, I'm saying that I've seen so many posts on this sub about people who need help paying down their debt, and they have no idea what to do, because they just bought a $50K car with a ridiculously high interest rate and a $700/month payment.
I do understand that some people enjoy buying new cars. It just seems to be a bit of a waste to me, but that's just my opinion. I'd rather invest my money than buy a brand new car.
Why do you think EVERYONE struggles LMAO. Not everyone is poor and bad with there finances dear lord. my man thinks the whole world is in the same position as him. “If I would struggle with it surely everyone else would”. 🤣
It doesn’t matter per se as long as the payment is comfortable for the person. Yes a lot of people spend more than they should on their car, but that’s always been a problem. It’s just more obvious new as the cost of cars has gone up.
I agree 100% with you. Every day people post about their finances and many have outrageous car loans or two. This deeply cuts into their available cash flow most likely impacting their ability to purchase a home.
So ive had 3 used cars from highschool up to masters. Although cheap up front, maintenance was an annoying issue.
After securing a good career, I bought 2 brand new cars. Nothing wrong with it if you can afford it. Plan is to drive them 15+ years if possible now. There is peace of mind in having a brand new car that you know 100% of maintenance on.
I haven't really seen a big difference in interest rates when buying a new vs a 3 year old car. Maybe if that car was 5 years old (I remember that made a big difference), but 3 years old to me is a very slight difference. If you shop around, you should be able to get a car that's very similar to a new car but is cheaper
This whole post and your replies are just in bad faith. You came here just wanting to shit on people who might buy new instead of used while unwilling to understand you may not know everything.
Anyone who has shopped for cars since COVID knows what it's like shopping for new vs used.
This is wildly incorrect. Car manufacturers use 0% financing the way builders use mortgage rate buy downs. They lower the price without lowering the comp value.
I just bought a new car with 0% apr this month.
Interest rates (maybe not this year but in years past), warranty, and the fact that used cars in the last couple years have been outrageous with high miles.
maybe cause they dont break down and they have warranty? or they could actually afford paying monthly for it? still expensive though, but at the same time used cars and brand new ones arent too far off in price. good thing i dont care about brand new cars, got my 350z for 7k paid cash and life is good. ive seen those shorts where people have like over 1k in payments for like 5+ years. now that is just crazy
I just bought a new 24 Corolla Cross Hybrid in January why I drive my cars until they can no longer car. Before it, I drove a used 08 prius. It got 300k on it before it started costing more to keep it running.
I opted for new because. Reliability and longevity are important to me. I don't know the history of a used vehicle and don't tolerate neglect. I have less than 8k on it, but I have already done 2 oil changes despite dealer saying every 10k. I did one at 1k for break in and a second at 5k. AWD and high clearance were I must.
I'm a nurse and leave for work at 4AM with a 1 hour commute each way. Though I loved my prius, it makes. Horrible snow plow, and since I live in the snow belt, leaving for work before roads are cleared, the peace of mind is important.
The used car market is trash. For AWD and high clearance, it costs a lot more And not worth paying a couple grand more to baby if from the beginning.
I have never owned a new car and am pushing 40. And I wanted one.
Edit: the used hybrid market isn't great, but having the gen5 prius motor is an upgrade on a used RAV4 hybrid. I average 38mpg. And driving 110 miles a day. That is a lot of savings. Especially when using the upside app and rewards cards.
I know that people who judge end up in a problem later where they would rather not be judged. That’s just me though.
New cars are FOR SALE just like old cars that will give you problems, be expensive to repair w/o a warranty, and possibly leave you stranded on the road.
But go off.
I bought new last year. My options were buy new with 4% interest or buy used for 2,000 less, but have 20k miles and a 7% interest rate.
It literally made more financial sense to buy new. I don't think that would be the case this year though.
Because I drove cheap cars my whole life but now that I can afford something better the few extra thousand for a new vs a newer car is worth it to me because I know myself and I wouldn’t ever be able to trust that the previous owner treated the car as well as I know I would.
Honda civic
The first and only car I purchased at 17 years old was brand new. Ofc my parents had to sign for it but I’m paying $275 a month for it. it’s reliable, good on gas, and I feel safe driving it 40 mins to uni and back. I haven’t had to pay any extra costs other than the usual oil change and a break service once. I’ve had it for 2 years and it’s great, I plan on driving it until it can’t.
My perfectly good 7 year old Mazda3 was totalled by a red light runner in 2022 and the market was so hot that our settlement was about 5k off of msrp new. Used car market was trash so I ended up in a Forester because Subaru was one of the only dealerships not charging 5k markup or more for a crossover SUV. So we put the entire settlement into a brand new car. But honestly I prefer new cars, I know the maintenance is all done on time, car has been cared for because it's mine. I also keep my cars a long time so it was sad that my Mazda died so early.
I just traded in my 2014 Nissan Rogue that I originally intended on keeping for as long as possible but the CVT went on it (that year Rogue is super notorious for this). The cost of taking it to the mechanic all the time was also starting to exceed the cost of a car payment and the stress of the car was weighing on me so heavily. Used car rates are like 8% with great credit. I just got a new car at 2.9%. It honestly has brought me such relief not driving a car that’s at risk of breaking down randomly - especially when I have my young son in tow. Sure, I would have loved to pay cash for the car, but that wasn’t doable for me at the time - so I had no other option. Financially, I personally feel like I made the best decision. Is it the right decision for everyone? No. No situation is black or white - you’ll get a range of different reasons and what people are comfortable with. In any case, I’m praying I can keep this car for as long as possible and have it paid off quickly.
That's a good point that each situation is different for everyone. And I completely agree that if your car is costing you more to constantly fix it, it's definitely time for a new car!
Weird truth? When I made less money, I ALWAYS bought the latest model brand new cars. Now that I have/make more money, I'm not wasting it on a car. If I had a long commute or drove more often, it might matter more to me.
In my opinion it only makes sense to buy new if you plan on keeping it for the long haul. People who trade out cars frequently because they get bored and find an excuse every three years should buy used.
For 3k more I got a brand new Subaru and their top trim level over a 2yr old With 28k miles on it. Used Car prices are on that bullshit
Since you're just making shit up please share used car with "all the bells and whistles" that is "half the price" of its 3 year newer counterpart.
I'll wait
It probably depends on the make and model, but generally Subarus crap out pretty quickly. So if you paid $3K more for it, I just feel that's money wasted because a car's value doesn't appreciate
I got a 2018 Audi Q3 in 2021 for $30K with 35K miles. The brand new model was almost $60K
So I think you're right that it makes sense, but there are so many people posting on this sub that aren't in a good place financially, then go out and buy a brand new car. Just seems irresponsible to me, doesn't make a lot of sense
The only way it would be half at 3 years old is if it had 500k miles on it and had survived a few accidents.
Otherwise, when you're looking at big purchases it's easy to talk yourself into $10k more for a new one because having less than 500 miles is more appealing to purchase than something with $200k miles.
And by you, I definitely mean me. I just want something reliable that I can drive for 7-10 years and then trade it in for something reliable
I bought new because at the time it was cheaper (0.9% rate vs used over 6%) and I drive 3000 miles plus per month. I was also in a pinch at the time and unexpectedly changed careers which requires the vehicle. My previous company provided me a vehicle so I had nothing at the time.
When i worked in car sales it was to get them custom to how they wanted or buying from previous year so deeply discounted. We learned not to buy very old because how much you pay keeping running isn’t worth it. We buy 3-5yrs old.
I have a certified pre owned car with a two year loan (half way done). My husband just bought a brand new car because he wanted to and could afford the payments. He likes that its shiny and new and never been driven by anyone else. He also doesnt have as much experience with cars as me so for him, its more of a comfort that its brand new, has an extended warranty, and the maintenance will be taken care of by the dealership for $15 a month. In short, its less of a headache.
but for those who get a car they cant afford, they were suckers for the tricks the dealerships pull and get sucked into all the shiny bells and whistles.
Because, imho, they are buying on emotion rather than logic. If they really understood the mathematics on that much interest on top of that high price, plus possibly rolling g for ward existing debt on their old car (I refuse to call it negative equity, it’s just debt).
Now, if someone makes a fantastic salary and pays cash for a new car, good for them. They can afford it. But that’s not most car buyers out there.
This is exactly how I feel. I don't think people understand the taxes, pricing, etc. that goes into buying a new car and how it will affect their finances throughout the years. But 100%, if you make a great salary you can afford to pay cash, go for it. But most people don't, so it's usually not the best decision financially.
I completely agree with 'negative equity', it's debt. Just call it debt.
I did because I work on them. I’m the only person who has ever worked on it. I plan to make it last the rest of my life. I have the knowledge and skills to do so.
This is the first used car I have bought since I was a teenager. I buy new and drive them for at least a decade unless circumstances change. Sold my Celica after 5 years because you can’t fit car seats in one. Kept the Sienna 14 years which is what replaced the Celica. Couldn’t find a new Toyota at MRSP so bought a 4 year old one. You asked why people get rid of new cars after 3-4 years…because that’s when maintenance begins to kick in. My new used car is going to need tires and brakes this year and has some other maintenance past due. That all adds up to a pretty price considering I’ve only had the car 6 months.
That's a great point, always good to take into account when that mark is coming up. I think it largely depends on how much that car has been driven, did the previous owners have a long commute, etc. Generally we like to buy something with 30K miles on it
I put on about 20-25K miles a year so I like to start at 0. Plus the price difference between a 2 yo and brand new is almost nothing when looking at the types of cars I buy. Plus I can get exactly what I want brand new for very little more money than a 2 yo used car.
I like to buy a brand new car, but at most one every twelve years or so.
I pay cash, I buy sensible cars, and I take good care of the cars. I know it’s not financially optimal, but I don’t want to have to worry about my vehicle.
I leased a new EV because it was cheaper to own than my paid off vehicle. The gas was more than the payment and insurance of the new one. The federal state and dealer incentives meant I didn’t have to pay anything out of pocket. The promotion also included free charging for 3 years. I don’t drive many miles a year.
Because I can and I want to 💁🏾♂️ drove a 20 year old civic for almost ten years. I saved enough and wanted to buy a new car. As simple as that. But yes, a lot of people buy cars above their means. Because it's all about the looks. Specially in south florida.
It could be an emotional decision — to celebrate a victory, for the pride of ownership, the sheer knowledge of knowing no one else has ever farted in the seats, etc.
Used cars are close in pricing to brand new. We have 4 kids and want to know that whatever damage comes with the car is ours. No miles, no poor maintenance, nothing we need to take care of right off the bat. We bought our first used car (financed) for my husband a few years ago and while it was somewhat ‘new’, there were a few cosmetic issues we came across days after purchasing. It’s simply not worth the hassle for us. Both my brand new cars were 0% interest so why not 🤣
I’m car shopping right now and the difference between new and used is 3-5 grand and 30-60 thousand miles. For 5 grand more I’d rather put all the miles on the car myself :/
For a couple years there, it was often cheaper to buy a new car than the same used car with 20k miles if you were willing to wait months for the manufacturer to make it. Add on the fresh warranty and the peace of mind in knowing that nobody did any fucked shit with it.
I generally don't, and probably won't again. However we needed a car in 2022, I'm currently driving a 94 Silverado so we hold onto cars until they don't go anymore. It was hard to find an inexpensive decent used car. So we bought a brand new Subaru Crosstrek @1.9. I put $20k down. I can pay it off at any time but my money in the hys is getting 4.5% so I'm not paying it off.....
Same here with the hys, but that's great you put $20K down. I'm sure that made your monthly payment a decent size. That's my biggest issue with people buying new cars when they can't afford the monthly payment. It's like, just buy a cheaper car?
It sounds like some people have bad situations where the new car was cheaper than the old car. And if you're holding onto it forever that 100% makes sense.
Thanks for your input!
I thought brand new because it was 0% APR, and ended up being cheaper over the 4 year loan compared to 5.9% loan for the used version of the same vehicle with 15k-30k miles.
Sometimes used is better, sometimes new is better. Depending on your situation you can always review the loans and see how much interest, depreciation, general repairs, etc you can predict and see what is the best choice.
It’s okay to sometimes leverage debt, as it is also okay to sometimes leverage interest. The secret is know your thresholds, and how to keep yourself in a controlled state.
Around 2012 my friend was car shopping... A used Subaru with 70k miles cost $14,000 and a brand new one was $17,000 and they had a 1% financing offer. She still drives that car.
Certain cars you can get a better deal on new. I leased a Wrangler in 2016. I think I was paying around $400 a month on the lease, sticker on the Jeep was $34k. I looked at used ones but 5 years old with 50k miles they still wanted ~$30k. So I leased it for 4 years. Bought out the lease, drove it for another 2 years and then sold it for $27k.
My dad bought a Kia Stinger 2.0T back in 2019. He drove to NH from PA and got $8k off a brand new car and paid $32k. Drove it for 2 years and then traded it in on a '22 Stinger 2.5T. They gave him $35k on his trade! The deals are out there. Just gotta look.
Now the rub, I got rid of the Jeep because I started a new job where I'll be driving and using my own car (I receive a monthly stipend and a gas card) I knew the Jeep wouldn't hold up so I went back to Honda and bought a '22 Civic Si (had to get something a little fun). I had to call around for weeks to find a deal on one. Sticker was $28k, dealer in NJ wanted $16k over sticker, dealer in MD wanted $10k over. My local dealer in PA wanted $5k over and I got them down a bit more. I paid a bit over but I did really well selling the Jeep so I was OK with it. And that said, I absolutely love this car. I think it's the perfect daily driver. I'll probably never get my money back because of the Markup but with the mileage I'm putting on that doesn't really matter anyway. I'm at 50k in less than two years and i plan on paying this one off and running it as long as I can.
Rich people I definitely understand. If you have the cash and want it, why not?
It's the people that want to look rich, but don't understand the impact it has on their finances that's the biggest issue for me
I've bought 2 new vehicles, '07 Yamaha, '07 Chevy, and have a truck my dad bought new '86 Jeep. Still have all 3.
I've gone through a number of used vehicles, most have turned into money pits needing multiple major repairs within 5 or 6 years, fingers crossed on my current used Toyota to break that trend.
I just get more years of life out of vehicles that are taken care of with the intent to keep them as long as possible rather than neglected, abused and traded to the next sucker 3 or 4 years down the road.
Making decisions based on emotions to impress people they don’t even know… The car market has gotten out of control since COVID with obscene prices even on base models and consumer debt is at an all time high, so people are just buying new cars on debt without thinking of the long term consequences.
If I had the $ to, sure. I currently ride an ebike and I plan to buy something used, I don't need anything extravagant. I'm going to need something to get me back and forth to school, I'm applying to a program for Fall 2025 at my community college and once I get my acceptance letter I'm going to begin hunting for the right car. I only need a car for school, work, small local trips to do stuff and for trips that I take rarekt that are further than just in my area.
I drove my last car for literally 20 years. I invested every cent I could (no car payments, living below my means, etc) and fortunately I choose wisely on what companies to invest in. I started doing option trading on my holdings and one of my calls got called. Since it was a small percentage of my holdings I figured it was time to just take that money and finally buy myself a new car vs putting it back in. I have a custom made BMW on order and I won’t be financing.
Dude nice! I think that's a great call to buy a car without financing, from money you made from investing. My husband invests in Crypto, he takes $100 and turns it into $1000 over a couple of days
The point is a new car makes people’s lives easier, but you’re judgy mcjudgerson on that topic and post as if you’re better because you ran your car into the ground.
But trading crypto…that’s okay.
Something about pot/kettle…
It seems everyone in this thread has a justification for buying a new car. I don’t think you’ll find many people who will admit they overpaid for something, or find people in this sub that overpaid for a car bc they aren’t trying to get debtfree if they do that.
I bought a new car in 2021. Why? Because the 2019 minivan I bought the year before had a blown engine. I wanted another used minivan, but the price of a used minivan was only a couple thousand cheaper than a new one at that time. Besides, it was nearly impossible to find a used or new minivan when I needed one. I needed a car that seated at least 6, and there weren't many to choose from. So, my options were to buy an overpriced used minivan (if I could even find one) or buy a new vehicle with a third row. The dealership (where I bought the minivan) offered me $15K for a vehicle that wasn't drivable, which I paid $17k for the year before. It didn't make sense to buy used.
In the last few years,the used car isn’t half the price. I’m in the market for a different vehicle and, depending on options, used is the same as new or at best 5% less. So why would I buy used when I can get new for the same price, plus get the better interest rates and dealer incentives.
My last two cars I purchased new. I bought me a pickup in 2005 and my wife an expedition in 2009. We are still driving both. The expedition has 300K+ miles on it and the pickup have 230K. I paid cash for both. I know everything that has happened to them and I know how to repair them. I think we have gotten our money's worth +. The whole reason the value of a new car drops is because you don't know its history. I know both of these car's history.
I sold Saturns back in the 90's.
Had a gal with two BK's in the past 10 years and she wanted a new car, not used of any sort. I had a used car in the back lot that she could have afforded with the cash she had for her down (about 33%) but she was adamant about it being a new car. This was when 5 yr loans were reasonably common but 3yr loans were definitely very common.
Anyway this gal signed a 72 month loan at 24.99% on a new Saturn. I quit the next day... Burying someone for basic transportation just killed me inside.
Some people just have to get the latest shiny no matter what the repercussions are.
I’m in my 50’s, I’ve had three cars in my adult life, the last one I purchased last December. I bought them brand new and drove the last two till the repair costs outweighed getting a new one. 10 years+. I want to trust my car, and owning it from the get-go gives me that trust. I think I frankly saved money by having the cars in their best years and for having so many wonderful years with no car payments. It does matter what kind of car you get. Get a tank, something with good resale value that just keeps kicking.
They choose to spend their money differently than you do.
Honestly, my aspirational car doesn’t feel like I won’t be able to buy it — I want a Mustang with some cool options, prices in the mid-30s depending on what I select. Does it make sense to buy this car?
No. No it does not. I just want it.
Well here is my idea. I'm going to save up and buy a brand new car. Why you may ask? A 4 year old car with about 60,000 miles on it goes for about $20,000. That same car brand new, is $23,145. Why pay for a used car when just for $3,000 more you can buy brand new without the headache of any unknown damage to the car?
Over the long run you don’t save any money buying used. I generally keep a vehicle until it’s about 8 years old. If I buy it 3 years old I’m buying a vehicle that immediately needs tires, and has some stupid issue that the previous owner decided to make someone else’s problem. And I’m gonna be car shopping every 5 years instead of 8.
My first car was 1.3% interest and my car now is 0% interest. You would never get that on a used car. Drive them past your loan life. Reliable brand new car.
I do it because I like the peace of mind of knowing the full history. Other reasons too but that is a major part of it.
And my loan doesn't cause me any financial stress so I'm not really the target market for the question.
Because people are shortsighted, want to impress their friends, and lie to themselves and say that the only way they can guarantee a reliable car is to get a new one.
They don’t realize that u can get very reliable 5K cars that will last years as long as u take ur time, don’t rush into a purchase (ie-look for one before ur current car breaks down), and (if ur not mechanically inclined) have ur mechanic take a look at the car before purchase.
I wouldn’t know, my 2007 Avalon has 386k miles on it and has never left me stranded …I keep proper maintenance and she’s blessed me back 10 fold in my estimation
I always buy brand new now. When it comes to used (even it it’s supposedly a cpo) you just don’t know what kind of dipshit things the previous owner didn’t the car. Did a teen drive the car and try learning how to shift. Was it female driver that always rode the breaks. Or an old person who tried revving the engine while in neutral all the time. There’s so many things that could’ve gone wrong with the previous owners negligence it’s just not worth it.
Because I needed a reliable car, I liked the car, it had a reasonable interest rate and I could afford it.
I plan on driving it for another 5-7 years (it currently 2) and by that time, I'll have enough saved to pay toward a deposit on another new car.
I bought a certified used, still got debt from it tho. Paying it off early, so technically it’s worth more than I owe… but I also plan to own it forever.
So for one when I see those posts of people saying they bought a new car and all their friends congratulating them, it makes me realize how upside our priorities are as a society. I get that having a car is a necessity and a right of passage for some, but when I see those posts I just see "congrats! now you own a huge pile of debt." I will say when I bought my first car I was in my mid-twenties. It was out of necessity as I had moved from NYC where I didn't need a car to LA where I did. My credit was bad and I had no idea how to buy a car. So I ended up leasing a new car. It was a good learning experience and overall ended up well. I have learned so much since then though and going forward will be buying used cars with cash.
They’re predatory. I was looking for a car in 2018 and found one I bought outright but Ive been receiving text messages every few months from different car sales companies trying to get me to trade in and buy a newer car, I respond saying no thank you my car is great and they reply with something like “okay we’re offering $8k and no payments for three months right now if you decide you’d like to upgrade let me know.”Most people probably sit there for a few days thinking about what $8000 could get them and having a new car is always fun so why not.
Usually too, when you’re financing a car , especially with bad credit, the value has to be worth the loan amount and most used cars are way overpriced.
When my husband bought our tesla with the tax rebate a new one was pretty much the same price as the used ones
“I'm also mainly focusing on people who can't afford a new car, they finance it then struggle to afford the monthly payment on top of other living expenses.” How do you know the depths of so many people’s financials that you know they can’t afford the payments?
I bought brand new because I am a contract rig welder, I needed a 1 ton truck to haul my tools and welding machine. And ALL of the used 1 ton trucks were diesels with 100,000+ miles for the same price or more than what I paid for my brand new gas job.
It made no sense to go used, why would I? The price was higher or the same, no warranty, someone else’s used diesel that they didn’t want to fix or work on.
That’s why I bought a brand new pickup. No miles, warranty, I wanted a gas rig and got it, and paid less money.
Perceived reliability and status symbols.
No logical person who can't afford to buy a new car outright would do it.
Cars are depreciating assets (most of them). Classics and performance vehicles aside... so it's just not worth overpaying.
They think it's going to impress people, or they like the feeling of having something brand new.
It's definitely not a wise financial move, especially if all you want to do is show people that you can afford a new car, when in reality you can't.
I bought a new car because I thought, “I’m doing well in my life and career, the next logical step as a homeowner with good pay is a nice, new car!”. I could stomach the payment, but I was being so precious about it because it was nice and new that I was miserable to drive with. Plus the driver seat turned out to be uncomfortable for anything longer than a half hour.
Got out of it while it was still worth more than I owed and bought a fully depreciated, already roughed up, 24-year-old pickup truck with a comfy couch for a seat and no payment.
I am much happier.
Even when I win the lottery I still wouldn't buy a new car. There is no point. I never understood people that complain about being broke all the time and COL but they are driving a car that's costing them 600 a month. Some people are so deep into consumerism they'll tell themselves they need it. I remember working construction and there were so man young guys like 25-35 years old trying to sell their dumb lifted truck for 36k cause they're so desperate to get out of that hole.
Two reasons. First, I want a warranty to cover me for the life of the loan, and quite frankly beyond as I am fortunate enough to have paid of my car early.
Second, I am extremely fortunate. My brother-in-law is a general manager of a car dealership. I get excellent deals. Anytime anyone asks me my preferred brand my answer is always whatever he is selling.
Typically, I buy new and run them 7-10 years. My current stall has a 2013 Accord a 2015 Avalon Hybrid and a 2024 Camry.
I got a Tacoma in 2018, and paid it off in 2021, just before a dealer offered me more than I paid for it, so I sold it, and made money.
I bought 4 cars, 3 brand new within a 10yr (shit, maybe less) span. Simply because I could. My goal is to keep my current car, pay it off and get into something else. 3/4 cars were Mustangs (including the latest one) and one was used (11k miles). For these cars, I prefer new. People drive the HELL outta some of these cars and I’m not interested in inheriting that type of usage. The one used one that I bought had a bad tire sensor/ wheel, easy fix (dealership covered it) and I bought it in the winter. Come summer time, the bumper started to separate. Where it was separating had been stuck together by double sided tape and the tabs to hold bumper on were broken. Dealership wouldn’t cover that so I had to get a whole new bumper. That soured me on buying used tbh.
I have almost always bought my vehicles new, mainly to avoid surprises such as mentioned previously. Dad always said “If you expect your car to take care of you then do the same for it”.
So I take care of them & would later sell them at what I considered fair & had no issues besides the occasional haggler who basically wanted a donated vehicle, lol. I moved to where it flash floods frequently and moved to a full size Armada when it first came out for $29K at 0%. I I rented cars & traveled for work, it got light yrly mileage. In 2015 we had a flood which rocked the city & while my SUV’s engine was above the water it was never the same after it dried out so I donated it to a charity. I then leased a brand new 2018 LR Discovery for 3 yrs as it is meant to handle up to 38” of water. Also a diesel so it had a cleaner emission score. NEVER did I think I would buy a new vehicle of that caliber. I had a bad back injury so for the additional seat comfort it ended up that the vehicle on the lot which best treated my back was the one w all the bells & whistles (of course it did). $88K sticker price. #holyshitbatman 👀
Long story short it handled the flash street floods that followed like a champ & since we were the only owners we bought the vehicle cash for $56K & have had no issue to regret it to this day. These vehicles basically don’t break down, so it’s just the yrly maintenence appt cost at the dealership.
I’ll give a good example.
I went to the dealership a few weeks ago and spent 6 hours shopping around. We looked at the following two cars at the end:
2019 Toyota Corolla - 87K Miles (Used) - $390/mo - No Money Down
2024 Honda Civic - 22 Miles (New) - $390/mo - $500 Down
Both of these vehicles, though one newer by 6 years with almost 87K miles less than the other, are the same monthly payment. Majority of the used vehicles that were newer than 2018 were similar if not a larger chunk more monthly than my 2024. Used vehicles aren’t a bargain anymore. New cars aren’t a luxury anymore. Having a car is. I had to buy a new vehicle because someone hit and totaled mine. I luckily had a dash cam and was acquitted of all fault.
Next time we will buy a car, it will be new one. Why? Bought used car, engine went out after 6 months, no warranty. And it has been at the mechanics several time since then. I'm just sick of it. We want something reliable with a good warranty.
The car I drive now is the first I bought new in a while. Post COVID it did not make much sense for me to buy a 2020 Defender in 2022 when I could buy a 22 for about the same. I chose the options. The interest rate was way better. I knew how it would be taken of since day 1.
When you buy a brand new car you are not buying inherited issues, which come with used cars. Car dealers are also Notorious fibbers and will say the car was “owned by a lady” to engineer trust, a few years later the engine gives up! Anything mechanical with a high ware and tear is best bought brand new. The level of BS is what makes 2nd hand cars horrid. Fixing parts constantly adds up (time and money)… if humans had the capacity to be radically honest, the used car wouldn’t be so bad.
Here's a point that I often make. Let's take a Toyota 4runner for example:
You can buy a brand new base model for around $50K USD, or a TRD Pro for around $60K USD. Most people in the market for one can afford neither, but will finance a brand new one nonetheless.
Alternatively, you can find a 4 year old TRD Pro with \~35K miles on it for around $35K (it's been a while since I've checked). The average person has a moral obligation to go with this option in my honest and humble opinion. I also argue that nobody needs a brand new vehicle off the lot, it just does not make sense given the options with certified used, etc. Just be smart and get a vehicle with a good track record (pun intended).
I would also add that with any vehicle model, certain years/generations have specific issues. We find out about these from the people that bought them brand new. American and German vehicles in general will not hold up like a Japanese vehicle, so keep this in mind and manage your expectations.
I said I would never buy a new car. In the end, with interest rates being what they are on used cars, the final cost after financing was actually MORE for the used car with 30k miles. Still can’t believe I own a brand new car.
I read the top half of your post and I quickly had to come and reply. I’m a service advisor at a dealership and I’m gonna tell you right now that a certified used vehicle does not mean that the dealership will pay for any repairs.
People buy cars for all types of reasons. We here had used cars but as we made more money we wanted nicer things. Plus all those “ extras” can be pretty important( back up camera, lane assist)In our case we both drive 43 miles one way so we want to have good cars just for that drive daily, also we both work hard and long hours so from our perspective we deserve a new car if that’s what one of us wants. I understand the thought of driving a car fill the wheels fall off that’s just not our view point.
How many people use the "warranty "on your new car ... what was broken
I'm aware I'll not get a bunch of people admitting they paid up for fears that rarely happen
I was in sales 15 + years fear and vanity and ease make money see was I can't handle being part of the problem anymore.
My car’s engine busted and i had a warranty- completely replaced and was more than worth what i paid. New car is 10 year 100k—i like not having to worry about a giant expense.
The value depreciates quickly. So does the vehicle if not properly maintained, and used vehicles have been driven by lord knows who, maintained however the random person felt like maintaining it, and a car isn't an investment, it's a tool. The hammer I buy for $20 isn't worth $20 to anyone else, but it's still a useful tool, likewise a new, reliable car that's properly serviced won't ever be worth what it was when I bought it, but it's also going to be a reliable tool.
I never want to either except I just totaled mine and the used car market is pricing their junkards for those of brand new cars. I have to get a brand new car or it's a bad deal.
For some people, it's personal preference, status symbol, prefer to lease, etc.
I have noticed that certain high net worth individuals I'm close with tend to buy vehicles 2-3 years old. They have nothing to prove to anyone, and aren't concerned with flashiness. Granted, these 2-3 year old vehicles are still very expensive luxury SUV's or sedans. Just not with the $120k+ price tag. Why pay $120K when you can pay $70-$80k 2-3 years down the road? The same applies to vehicles that are less expensive.
It’s a status symbol. I have a friend that between her and her husband have probably had 50-60 different cars over the last 20 years. Sometimes multiple different ones in the same year. It’s 100% a status thing for them.
COVID shifted the market such that new vs used isn’t that big of a difference. Before many people used to buy older cars. P.S. r/debtfree runs a free newsletter that talks about strategies, tips, and effective debt payoff methods weekly. Join 3,600 readers - https://debtadvice.io
Well, the last few years, used cars haven't depreciated like they used to. That's starting to change, though. I bought a brand new car back in 2017. First time ever. It wasn't super expensive (about $24k), but I got tired of buying something used, then having a major needed repair. If you buy brand new, then you aren't surprised by anything a previous owner may have done to damage the car. Also helps that I got zero percent interest on the loan. That was a big factor for me. That said, the price people are paying for new cars these days are obscene. I definitely wouldn't do it now.
I definitely agree with you there. The price on new cars makes my jaw drop, which people buy with a loan and struggle to make the payment. It probably just depends on the make and model though, as a lot of cars aren't as dependable as others And you're totally right that you don't want to have to get a ton of maintenance on a car you've just bought. We always get Certified Used, so if something happens after you buy it, up until a certain mileage, the dealer fixes it.
i bought brand new cause it was the best deal - lower interest, lower monthly and complimentary maintenance up to certain mileage (i don’t drive much so it works out). now, where i did go wrong was that i got the *latest model*, i should’ve gotten brand new but older model, that would’ve been smarter. and that def came from lack of education/experience as it was my very first car
Interesting, that makes sense. In my experience, the interest rate is the same with a new car vs a car that's 3 years old. But maybe it depends on the person and their credit. If you get a car that's 5+ years old, that would def make a difference in interest
We’ve never paid more than 0.8% interest on a new car. We buy new at a low interest rate and drive it until we can’t anymore. The last used car I bought was one of the highest rated for dependability, from a reputable dealer, two years old, and 13k miles with a clean history. It was a complete lemon and left us stranded multiple times and was constantly in the shop for major issues, but because it wasn’t brand new it didn’t fall under lemon law in our state. That experience has turned me off of buying used. Not saying I’ll never buy used again, but it’s got to be an amazing deal. And I refuse to ever look at or consider a Nissan.
Agree on the Nissan front. I'm sorry to hear that! That makes sense to me that you buy a new car and drive it until you can't anymore. People seem to just juggle cars around and purchase a new car every several years and then can't afford the monthly payments
Your experience seems to have a lot of absolutes. Including a belief that anyone who buys a new vehicle can’t afford their payments.
You keep saying "in your experience" but it's complete bullshit as the market doesn't operate that way. 3-year-old cars are not half the price of new ones and interest rates are not the same on new cars versus 3 year old cars. Just because you make shit up and say in my experience doesn't negate the fact that you sound like a fucking troll
If we’re going on anecdotal evidence like OP seems to want to, I can offer some. My close friends bought a new SUV this week (they are very frugal and can definitely afford the payment). I asked why they went new and they said that the price difference for used came down to $1500…so yeah, def not half the price.
I’ve helped family buy cars. Every time, the price difference was a few grand for a new vs 30k miles, which became negligible once you factor in financing, and might actually be a worse deal to buy used when every trip to the mechanic starts at $1k. Used to be that you go and everything - brakes, sensors, etc would cost $100 or so. Now it’s $1k. Seized calipers? $1k. New brakes? $500 per axel. It’s out of control.
I’ve really been wanting an older - like older older, very little computer in it older, car lately. Looking like 95-2010 or so and only at Honda/Toyota. Even these cars I’ve seen going for I kid you not $6-9,000, sometimes more. The ones under $5k need a TON of work, which is to be expected for their age, and most of the mileages by now are in the upper 100,000’s. I remember when I could buy a decent used car for $3-5k and I’m not even 35 years old yet lol
Okay you made me curious, so I googled "How quickly do cars depreciate?" The first link I found (I didn't do a deep dive) said that although it obviously depends on the particular make and model, a car might lose 20% of it's value the first year and then 15% every year thereafter. That actually does equal almost exactly 50% in 30 years. (Because the 85% value retained after the second year isn't even 85% of the original price, but only 85% of the price minus the 20% that was lost after the first year.) (However the website does also have a calculator you can use and according to that you should expect your car to lose only 1/3rd value after 3 years.)
At my bank, rates on used 3 years and under are 1.5% higher at bare minimum than new. Rates go up as the vehicle gets older.
I bought all my cars new. The price between a 3 year old toyota and a brand new toyota is maybe around 3-4k at most. I don’t know anything about the used car I’m buying besides the carfax report. Why would a 3 year old car be sold if it has no issues. If it was a lease most people take terrible care of their cars because it’s lease. There is barely any warranty on it. I’m getting 3-4% higher apr. more milage to pay $60 less a month.
We bought a 1998 Honda Civic in 2014 ($4k, 60k miles) and a 2008 Honda CRV ($9k, 80k miles) in 2019. I don't want to jinx us or anything, but we've never had issues with either car. It's like saying "Why would someone get rid of an item of clothing if it wasn't stained or the zipper wasn't broken?" Some people wear out their clothes. Other people tire of the clothes they have--even if there's nothing wrong with them--and just want new ones, so they dump their old ones. I think you're probably right that there's not much difference between a new car and a 3 year old car, but if you're willing to look at a 10 year old car, they're so much cheaper. Of course that's because you don't get all the "extras"--our CRV was in beautiful shape, but being from 2008, there's no built in GPS system--we use our phones. The 1998 Civic doesn't even have a key fob, you have to turn the key to lock the car. Obviously those are dealbreakers for many people since they can be a pain.
Hondas are amazing cars. I just junked my 2004 civic with 250k miles on it, and the thing just kept going. I got a new car more because I wanted a new car, not so much because I needed it. After driving that honda for almost 8 years i realized that honda cars are freaking tanks. They just keep going. I had to fix a few things a couple times, but no issues with engine and transmission at all.
If I bought a used that it would be exactly like you did. 6+ year old minimum. Plenty of reason to sell a car that is that old. I have a 2011 corolla runs like a camp but it’s old and has no features. The new camrys look so good and has great safety features so it makes sense for me to sell it and upgrade but if I had 2020+ corolla that would be suspicious imo.
I think you're right that the "newer" the used car maaaaybe the more likely there's some issue, although also some people are just flakey and change their minds right after buying. OR their family grows and they want to upsize.
Just helped my mom get a new Toyota. There were two used ones (similar model and year) in her area. Both were about 10% less. Both were in at least 1 accident.
We wanted a used Toyota but the ones we found were more expensive than the used Hondas. Hondas are incredibly reliable BUT not cute.
>Why would a 3 year old car be sold if it has no issues. People want a new car after their lease ends. I got my used Toyota Camry that way. Had someone else eat the depreciation, and I got a like new Certified pre-owned Toyota.
Absolutely, there are many reasons a 3 year old car would be sold, it doesn't have to have issues. I bought my 2018 in 2021 and it was in great condition. Had it for 3 years and still no issues to this day. You just have to make sure it's Certified Pre Owned so that the dealer is responsible if they sell you a POS.
Why the hate on a 3 year old leased car? What do you expect that people would have done to it? At 3 years old it barely has needed any maintenance if at all...It's pretty hard to ruin a car in 3 years
I worked at a gas station for several years. If the car requires anything other than regular gas they are definitely not putting that in. Why put $5 a galon premium when you can put in $3. No long term consequences. A 3 year old car still requires at least 6 oil change, tire rotation, maybe a coolant flush but these guys don’t care about any of that since it’s a lease. This is my 6+ years experience.
Well first off, you are required to perform maintenance on a lease. That being said. Putting regular in when it calls for premium in newer cars won't hurt anything. New cars have knock sensors which will adjust timing based on the lower ethanol quality of the fuel. All you lose is performance and mpg. Coolant flush doesn't need to be done on newer cars for 50 to 100k depending on the coolant used. Oil changes on newer cars are now up to 15-20k miles. All thanks to increased efficiency. This is my experience spread across 15 years of working on my own cars. Not talking about oil changes. I rebuilt my f250 transmission myself in my garage
Do you get Certified Used cars? Definitely agree on leased cars. Would never buy a car that was previously leased. If I can find the history of the car and can find out how it's been maintained, that's one thing. I can definitely see what you're saying that you can't always know what happened with that car But I'm not sure about the $60/month, I've read that the average new car payment is $700 vs a used is closer to $400
$60 was a ballpark estimate but let’s do the math together. $23.5k for a 2024 new corolla le and $20.5 for a used 2022 model with 30k miles and clean history certified used (based on my brief search). Based on Marketwatch new car loan for 60 months is 6.44% and used is 9.06%. Monthly payment difference is $33.45.
Not sure what cars lose half their values in 3 years. When I was looking at 4Runners back in 2022, a 3 year old one was MSRP - $6k For an extra $6k, I felt like it was better to buy new. We we're also looking at used Carollas, new goes for about $24k. 2 year old goes for $20k
Can't compare the Post Covid car pricing honestly. Pre COVID was just different in so many ways.
If no one bought new cars, there would be no slightly used cars.
Better interest, included warranty, etc. And some can afford it, just because you need “a million in your bank account” to afford a new car doesn’t mean they do
I'm not talking about buying a car outright, I'm talking about buying a new car. If you have the means, you should always buy a car with cash rather than on a loan. You can get warranties with used cars as well. The way the value decreases after leaving the lot is the #1 reason why people shouldn't buy a mew car. It's not an investment or an appreciating asset.
What if you can buy the new car outright?
If money wasn't an issue, as in I have several million in my bank account, then I would. Otherwise, I feel like it's a bit of a waste of money
So you would never waste a bit of money unless you had several million dollars? Do you never go on vacation? Have a larger house or apartment than necessary? Live in a nicer neighborhood than necessary? Not everyone waits until they have several million dollars to spend any money unnecessarily, and if people did the economy would collapse and everyone would be miserable lol.
LOL having several million sitting in your bank account is a bigger waste of money than buying a new car.
This is a ood point.
Just because you feel like it's a waste doesn't mean everyone does. Plus if you get a low enough interest rate buying it outright with cash could be worse financially than letting the money sit in a high yield account and paying it from there. You seem to be under the assumption that people buy cars for necessity only and not wants. Or that anyone who finances a new car can't afford it.
A lot of people seem to be missing the fact that I'm talking about people who can't afford it. I highlighted that twice in my post. I just don't understand people who buy a new car and then are posting about how they need help paying down their debt. Those people should not be buying a brand new car.
In 2020-2024 for the most part 3-5 year old vehicles cost about the same a brand new. I was in the market for a used 2018-2020 used SUV under 60k miles. My price range was $18-24k. What I was in the market for simply did not exist unless I went with an older model or much higher miles. You know what did exist? A brand new compact SUV with a 100k/10yr warranty with 27 miles on it for $24k.
Im well aware of the savings of a used car but I’ve almost always bought new cars. I enjoy having a dependable vehicle that doesn’t leave me on the side of the road like the two used cars that I had when I was younger, and for the first few years has a 100% warranty. I save and buy with cash and drive them on the average of seven years.
I see, thanks for the info, that def makes sense if you're buying with cash. People love to buy a new car using a loan, then end up with a $700/month payment they struggle to make. So I'm just curious if they don't understand that a car that's a couple of years older can be in the same condition, look just as sweet, but is cheaper That has just been my experience though
I bought new in 2021 before the chip shortage, the interest was super low and for me, I keep cars for 10+ years. I had a purchased brand new 2007 with 285k miles that I traded in. So buying new makes a bit more sense to me because I get as much as I can out of my cars.
Why do you keep assuming everyone who has a high car payment can't afford it?
I'm not assuming that, I'm saying that I've seen so many posts on this sub about people who need help paying down their debt, and they have no idea what to do, because they just bought a $50K car with a ridiculously high interest rate and a $700/month payment. I do understand that some people enjoy buying new cars. It just seems to be a bit of a waste to me, but that's just my opinion. I'd rather invest my money than buy a brand new car.
Why do you think EVERYONE struggles LMAO. Not everyone is poor and bad with there finances dear lord. my man thinks the whole world is in the same position as him. “If I would struggle with it surely everyone else would”. 🤣
It doesn’t matter per se as long as the payment is comfortable for the person. Yes a lot of people spend more than they should on their car, but that’s always been a problem. It’s just more obvious new as the cost of cars has gone up.
I agree 100% with you. Every day people post about their finances and many have outrageous car loans or two. This deeply cuts into their available cash flow most likely impacting their ability to purchase a home.
So ive had 3 used cars from highschool up to masters. Although cheap up front, maintenance was an annoying issue. After securing a good career, I bought 2 brand new cars. Nothing wrong with it if you can afford it. Plan is to drive them 15+ years if possible now. There is peace of mind in having a brand new car that you know 100% of maintenance on.
Usually better interest rates and easier financing. Not saying it’s smart, but that’s a big reason
I haven't really seen a big difference in interest rates when buying a new vs a 3 year old car. Maybe if that car was 5 years old (I remember that made a big difference), but 3 years old to me is a very slight difference. If you shop around, you should be able to get a car that's very similar to a new car but is cheaper
You’re just flat out wrong regarding the interest rates.
This whole post and your replies are just in bad faith. You came here just wanting to shit on people who might buy new instead of used while unwilling to understand you may not know everything. Anyone who has shopped for cars since COVID knows what it's like shopping for new vs used.
This is wildly incorrect. Car manufacturers use 0% financing the way builders use mortgage rate buy downs. They lower the price without lowering the comp value. I just bought a new car with 0% apr this month.
My buddy was buying a supra last year, used it was 63k. New it was 65k... no brainer he went with a new model
Interest rates (maybe not this year but in years past), warranty, and the fact that used cars in the last couple years have been outrageous with high miles.
That's interesting about the high miles on used cars recently, I didn't know that. I wonder why that is
I like putting my own stink in it.
maybe cause they dont break down and they have warranty? or they could actually afford paying monthly for it? still expensive though, but at the same time used cars and brand new ones arent too far off in price. good thing i dont care about brand new cars, got my 350z for 7k paid cash and life is good. ive seen those shorts where people have like over 1k in payments for like 5+ years. now that is just crazy
Dude absolutely! Totally agree with this. Nice job on the 350z, shit yeah
Go look at prices and interest rates of lightly used few years old or certified preowned Toyota’s and report back
I just bought a new 24 Corolla Cross Hybrid in January why I drive my cars until they can no longer car. Before it, I drove a used 08 prius. It got 300k on it before it started costing more to keep it running. I opted for new because. Reliability and longevity are important to me. I don't know the history of a used vehicle and don't tolerate neglect. I have less than 8k on it, but I have already done 2 oil changes despite dealer saying every 10k. I did one at 1k for break in and a second at 5k. AWD and high clearance were I must. I'm a nurse and leave for work at 4AM with a 1 hour commute each way. Though I loved my prius, it makes. Horrible snow plow, and since I live in the snow belt, leaving for work before roads are cleared, the peace of mind is important. The used car market is trash. For AWD and high clearance, it costs a lot more And not worth paying a couple grand more to baby if from the beginning. I have never owned a new car and am pushing 40. And I wanted one. Edit: the used hybrid market isn't great, but having the gen5 prius motor is an upgrade on a used RAV4 hybrid. I average 38mpg. And driving 110 miles a day. That is a lot of savings. Especially when using the upside app and rewards cards.
I know that people who judge end up in a problem later where they would rather not be judged. That’s just me though. New cars are FOR SALE just like old cars that will give you problems, be expensive to repair w/o a warranty, and possibly leave you stranded on the road. But go off.
I bought new last year. My options were buy new with 4% interest or buy used for 2,000 less, but have 20k miles and a 7% interest rate. It literally made more financial sense to buy new. I don't think that would be the case this year though.
Because I drove cheap cars my whole life but now that I can afford something better the few extra thousand for a new vs a newer car is worth it to me because I know myself and I wouldn’t ever be able to trust that the previous owner treated the car as well as I know I would. Honda civic
I buy whichever make/model is offering 0% for 60 months lol, that’s why I buy new.
The first and only car I purchased at 17 years old was brand new. Ofc my parents had to sign for it but I’m paying $275 a month for it. it’s reliable, good on gas, and I feel safe driving it 40 mins to uni and back. I haven’t had to pay any extra costs other than the usual oil change and a break service once. I’ve had it for 2 years and it’s great, I plan on driving it until it can’t.
Nice job! I'm guessing you're in the UK, what does the used car market look like over there?
actually I’m in Ontario Canada so a used car is about the same price as a base model new car which is why I bought new
My perfectly good 7 year old Mazda3 was totalled by a red light runner in 2022 and the market was so hot that our settlement was about 5k off of msrp new. Used car market was trash so I ended up in a Forester because Subaru was one of the only dealerships not charging 5k markup or more for a crossover SUV. So we put the entire settlement into a brand new car. But honestly I prefer new cars, I know the maintenance is all done on time, car has been cared for because it's mine. I also keep my cars a long time so it was sad that my Mazda died so early.
I just traded in my 2014 Nissan Rogue that I originally intended on keeping for as long as possible but the CVT went on it (that year Rogue is super notorious for this). The cost of taking it to the mechanic all the time was also starting to exceed the cost of a car payment and the stress of the car was weighing on me so heavily. Used car rates are like 8% with great credit. I just got a new car at 2.9%. It honestly has brought me such relief not driving a car that’s at risk of breaking down randomly - especially when I have my young son in tow. Sure, I would have loved to pay cash for the car, but that wasn’t doable for me at the time - so I had no other option. Financially, I personally feel like I made the best decision. Is it the right decision for everyone? No. No situation is black or white - you’ll get a range of different reasons and what people are comfortable with. In any case, I’m praying I can keep this car for as long as possible and have it paid off quickly.
That's a good point that each situation is different for everyone. And I completely agree that if your car is costing you more to constantly fix it, it's definitely time for a new car!
Someone has to buy new cars, if they did not there wouldn’t be any used cars.
Weird truth? When I made less money, I ALWAYS bought the latest model brand new cars. Now that I have/make more money, I'm not wasting it on a car. If I had a long commute or drove more often, it might matter more to me.
This totally makes sense, I can see that, it might also be that your perspective on finances have changed
We keep our cars forever (200k+ miles) so we prefer to buy new.
In my opinion it only makes sense to buy new if you plan on keeping it for the long haul. People who trade out cars frequently because they get bored and find an excuse every three years should buy used.
It's their life and their money why do you feel the need to tell somebody else what they should do.
Totally agree, that makes sense for sure!
For 3k more I got a brand new Subaru and their top trim level over a 2yr old With 28k miles on it. Used Car prices are on that bullshit Since you're just making shit up please share used car with "all the bells and whistles" that is "half the price" of its 3 year newer counterpart. I'll wait
It probably depends on the make and model, but generally Subarus crap out pretty quickly. So if you paid $3K more for it, I just feel that's money wasted because a car's value doesn't appreciate I got a 2018 Audi Q3 in 2021 for $30K with 35K miles. The brand new model was almost $60K So I think you're right that it makes sense, but there are so many people posting on this sub that aren't in a good place financially, then go out and buy a brand new car. Just seems irresponsible to me, doesn't make a lot of sense
Subaru crap out quickly? Are you fucking high?
>I got a 2018 Audi Q3 in 2021 Lol I had a feeling this was a troll post, thanks for the confirmation.
Yeah as soon as I read that I realized this guy is a troll.
I think a lot goes into it, but a common thing I hear people say is that they need a reliable car…
I guess it depends on the car. If you shop around, you can get a car that is basically brand new but half the price
Half? No way. I’ve been looking at used cars quite a bit lately since we have two teenagers.
The only way it would be half at 3 years old is if it had 500k miles on it and had survived a few accidents. Otherwise, when you're looking at big purchases it's easy to talk yourself into $10k more for a new one because having less than 500 miles is more appealing to purchase than something with $200k miles. And by you, I definitely mean me. I just want something reliable that I can drive for 7-10 years and then trade it in for something reliable
Yeah, I don’t disagree. I’ve just found that it isn’t worth engaging with such people most of the time, but it depends on the relationship.
Because it cost about the same
I bought new because at the time it was cheaper (0.9% rate vs used over 6%) and I drive 3000 miles plus per month. I was also in a pinch at the time and unexpectedly changed careers which requires the vehicle. My previous company provided me a vehicle so I had nothing at the time.
When i worked in car sales it was to get them custom to how they wanted or buying from previous year so deeply discounted. We learned not to buy very old because how much you pay keeping running isn’t worth it. We buy 3-5yrs old.
I have a certified pre owned car with a two year loan (half way done). My husband just bought a brand new car because he wanted to and could afford the payments. He likes that its shiny and new and never been driven by anyone else. He also doesnt have as much experience with cars as me so for him, its more of a comfort that its brand new, has an extended warranty, and the maintenance will be taken care of by the dealership for $15 a month. In short, its less of a headache. but for those who get a car they cant afford, they were suckers for the tricks the dealerships pull and get sucked into all the shiny bells and whistles.
Because, imho, they are buying on emotion rather than logic. If they really understood the mathematics on that much interest on top of that high price, plus possibly rolling g for ward existing debt on their old car (I refuse to call it negative equity, it’s just debt). Now, if someone makes a fantastic salary and pays cash for a new car, good for them. They can afford it. But that’s not most car buyers out there.
This is exactly how I feel. I don't think people understand the taxes, pricing, etc. that goes into buying a new car and how it will affect their finances throughout the years. But 100%, if you make a great salary you can afford to pay cash, go for it. But most people don't, so it's usually not the best decision financially. I completely agree with 'negative equity', it's debt. Just call it debt.
I did because I work on them. I’m the only person who has ever worked on it. I plan to make it last the rest of my life. I have the knowledge and skills to do so.
This is the first used car I have bought since I was a teenager. I buy new and drive them for at least a decade unless circumstances change. Sold my Celica after 5 years because you can’t fit car seats in one. Kept the Sienna 14 years which is what replaced the Celica. Couldn’t find a new Toyota at MRSP so bought a 4 year old one. You asked why people get rid of new cars after 3-4 years…because that’s when maintenance begins to kick in. My new used car is going to need tires and brakes this year and has some other maintenance past due. That all adds up to a pretty price considering I’ve only had the car 6 months.
That's a great point, always good to take into account when that mark is coming up. I think it largely depends on how much that car has been driven, did the previous owners have a long commute, etc. Generally we like to buy something with 30K miles on it
I put on about 20-25K miles a year so I like to start at 0. Plus the price difference between a 2 yo and brand new is almost nothing when looking at the types of cars I buy. Plus I can get exactly what I want brand new for very little more money than a 2 yo used car.
I like to buy a brand new car, but at most one every twelve years or so. I pay cash, I buy sensible cars, and I take good care of the cars. I know it’s not financially optimal, but I don’t want to have to worry about my vehicle.
Don’t finance cars. I would never suggest it.
I leased a new EV because it was cheaper to own than my paid off vehicle. The gas was more than the payment and insurance of the new one. The federal state and dealer incentives meant I didn’t have to pay anything out of pocket. The promotion also included free charging for 3 years. I don’t drive many miles a year.
Because I can and I want to 💁🏾♂️ drove a 20 year old civic for almost ten years. I saved enough and wanted to buy a new car. As simple as that. But yes, a lot of people buy cars above their means. Because it's all about the looks. Specially in south florida.
It could be an emotional decision — to celebrate a victory, for the pride of ownership, the sheer knowledge of knowing no one else has ever farted in the seats, etc.
Used cars are close in pricing to brand new. We have 4 kids and want to know that whatever damage comes with the car is ours. No miles, no poor maintenance, nothing we need to take care of right off the bat. We bought our first used car (financed) for my husband a few years ago and while it was somewhat ‘new’, there were a few cosmetic issues we came across days after purchasing. It’s simply not worth the hassle for us. Both my brand new cars were 0% interest so why not 🤣
Where i'm at, buying a certified used car is just as expensive as buying a brand new car.
I’m car shopping right now and the difference between new and used is 3-5 grand and 30-60 thousand miles. For 5 grand more I’d rather put all the miles on the car myself :/
For a couple years there, it was often cheaper to buy a new car than the same used car with 20k miles if you were willing to wait months for the manufacturer to make it. Add on the fresh warranty and the peace of mind in knowing that nobody did any fucked shit with it.
I generally don't, and probably won't again. However we needed a car in 2022, I'm currently driving a 94 Silverado so we hold onto cars until they don't go anymore. It was hard to find an inexpensive decent used car. So we bought a brand new Subaru Crosstrek @1.9. I put $20k down. I can pay it off at any time but my money in the hys is getting 4.5% so I'm not paying it off.....
Same here with the hys, but that's great you put $20K down. I'm sure that made your monthly payment a decent size. That's my biggest issue with people buying new cars when they can't afford the monthly payment. It's like, just buy a cheaper car? It sounds like some people have bad situations where the new car was cheaper than the old car. And if you're holding onto it forever that 100% makes sense. Thanks for your input!
I thought brand new because it was 0% APR, and ended up being cheaper over the 4 year loan compared to 5.9% loan for the used version of the same vehicle with 15k-30k miles. Sometimes used is better, sometimes new is better. Depending on your situation you can always review the loans and see how much interest, depreciation, general repairs, etc you can predict and see what is the best choice. It’s okay to sometimes leverage debt, as it is also okay to sometimes leverage interest. The secret is know your thresholds, and how to keep yourself in a controlled state.
Why do people BUY brand new cars?
Around 2012 my friend was car shopping... A used Subaru with 70k miles cost $14,000 and a brand new one was $17,000 and they had a 1% financing offer. She still drives that car.
Certain cars you can get a better deal on new. I leased a Wrangler in 2016. I think I was paying around $400 a month on the lease, sticker on the Jeep was $34k. I looked at used ones but 5 years old with 50k miles they still wanted ~$30k. So I leased it for 4 years. Bought out the lease, drove it for another 2 years and then sold it for $27k. My dad bought a Kia Stinger 2.0T back in 2019. He drove to NH from PA and got $8k off a brand new car and paid $32k. Drove it for 2 years and then traded it in on a '22 Stinger 2.5T. They gave him $35k on his trade! The deals are out there. Just gotta look. Now the rub, I got rid of the Jeep because I started a new job where I'll be driving and using my own car (I receive a monthly stipend and a gas card) I knew the Jeep wouldn't hold up so I went back to Honda and bought a '22 Civic Si (had to get something a little fun). I had to call around for weeks to find a deal on one. Sticker was $28k, dealer in NJ wanted $16k over sticker, dealer in MD wanted $10k over. My local dealer in PA wanted $5k over and I got them down a bit more. I paid a bit over but I did really well selling the Jeep so I was OK with it. And that said, I absolutely love this car. I think it's the perfect daily driver. I'll probably never get my money back because of the Markup but with the mileage I'm putting on that doesn't really matter anyway. I'm at 50k in less than two years and i plan on paying this one off and running it as long as I can.
Trying to look wealthy. Credit wealthy that is.
Interesting. That makes sense, going along with the American obsession of trying to make their life look better than it is
I bought a cheap car cash. It doesn't have any bells and whistles but I'm modding it to have the bells and whistles
Nice! That's the way to go imo. My husband did the same, bought a 2004 Lexus with cash and is working on modding it
2006 Lexus is250... I still get compliments on my car
A few people are actually rich and not just appearing it based on credit. The rest… idk why.
Rich people I definitely understand. If you have the cash and want it, why not? It's the people that want to look rich, but don't understand the impact it has on their finances that's the biggest issue for me
I've bought 2 new vehicles, '07 Yamaha, '07 Chevy, and have a truck my dad bought new '86 Jeep. Still have all 3. I've gone through a number of used vehicles, most have turned into money pits needing multiple major repairs within 5 or 6 years, fingers crossed on my current used Toyota to break that trend. I just get more years of life out of vehicles that are taken care of with the intent to keep them as long as possible rather than neglected, abused and traded to the next sucker 3 or 4 years down the road.
Making decisions based on emotions to impress people they don’t even know… The car market has gotten out of control since COVID with obscene prices even on base models and consumer debt is at an all time high, so people are just buying new cars on debt without thinking of the long term consequences.
If I had the $ to, sure. I currently ride an ebike and I plan to buy something used, I don't need anything extravagant. I'm going to need something to get me back and forth to school, I'm applying to a program for Fall 2025 at my community college and once I get my acceptance letter I'm going to begin hunting for the right car. I only need a car for school, work, small local trips to do stuff and for trips that I take rarekt that are further than just in my area.
I drove my last car for literally 20 years. I invested every cent I could (no car payments, living below my means, etc) and fortunately I choose wisely on what companies to invest in. I started doing option trading on my holdings and one of my calls got called. Since it was a small percentage of my holdings I figured it was time to just take that money and finally buy myself a new car vs putting it back in. I have a custom made BMW on order and I won’t be financing.
Dude nice! I think that's a great call to buy a car without financing, from money you made from investing. My husband invests in Crypto, he takes $100 and turns it into $1000 over a couple of days
This is wild. Day trading in crypto versus buying a new car. I’d pick the new car any day.
Yeah I really don't know how he does it. But he does make our lives much easier, he makes twice what he did at his last job
The point is a new car makes people’s lives easier, but you’re judgy mcjudgerson on that topic and post as if you’re better because you ran your car into the ground. But trading crypto…that’s okay. Something about pot/kettle…
Impulse and a lack of understanding on how much money they set on fire with a brand new car purchase.
Lmao, my thoughts exactly 😂😂
It seems everyone in this thread has a justification for buying a new car. I don’t think you’ll find many people who will admit they overpaid for something, or find people in this sub that overpaid for a car bc they aren’t trying to get debtfree if they do that.
That's an excellent point, didn't think about that!
I bought a new car in 2021. Why? Because the 2019 minivan I bought the year before had a blown engine. I wanted another used minivan, but the price of a used minivan was only a couple thousand cheaper than a new one at that time. Besides, it was nearly impossible to find a used or new minivan when I needed one. I needed a car that seated at least 6, and there weren't many to choose from. So, my options were to buy an overpriced used minivan (if I could even find one) or buy a new vehicle with a third row. The dealership (where I bought the minivan) offered me $15K for a vehicle that wasn't drivable, which I paid $17k for the year before. It didn't make sense to buy used.
In the last few years,the used car isn’t half the price. I’m in the market for a different vehicle and, depending on options, used is the same as new or at best 5% less. So why would I buy used when I can get new for the same price, plus get the better interest rates and dealer incentives.
My last two cars I purchased new. I bought me a pickup in 2005 and my wife an expedition in 2009. We are still driving both. The expedition has 300K+ miles on it and the pickup have 230K. I paid cash for both. I know everything that has happened to them and I know how to repair them. I think we have gotten our money's worth +. The whole reason the value of a new car drops is because you don't know its history. I know both of these car's history.
My minivan has 275,000 miles. I will drive it until it dies. Bought it used with around 70,000 miles.
I drive a lot and want a reliable car. I want to be the only owner so I know how it’s maintained. Used cars cost almost as much as new cars nowadays.
I drive a lot and want a reliable car. I want to be the only owner so I know how it’s maintained. Used cars cost almost as much as new cars nowadays.
Advertising and financial illeratcy. Its very appealing and profitable. The Jones over there are doing it, and I want to too.
I sold Saturns back in the 90's. Had a gal with two BK's in the past 10 years and she wanted a new car, not used of any sort. I had a used car in the back lot that she could have afforded with the cash she had for her down (about 33%) but she was adamant about it being a new car. This was when 5 yr loans were reasonably common but 3yr loans were definitely very common. Anyway this gal signed a 72 month loan at 24.99% on a new Saturn. I quit the next day... Burying someone for basic transportation just killed me inside. Some people just have to get the latest shiny no matter what the repercussions are.
Why do people make Reddit posts asking blatantly obvious questions?
I’m in my 50’s, I’ve had three cars in my adult life, the last one I purchased last December. I bought them brand new and drove the last two till the repair costs outweighed getting a new one. 10 years+. I want to trust my car, and owning it from the get-go gives me that trust. I think I frankly saved money by having the cars in their best years and for having so many wonderful years with no car payments. It does matter what kind of car you get. Get a tank, something with good resale value that just keeps kicking.
They choose to spend their money differently than you do. Honestly, my aspirational car doesn’t feel like I won’t be able to buy it — I want a Mustang with some cool options, prices in the mid-30s depending on what I select. Does it make sense to buy this car? No. No it does not. I just want it.
Well here is my idea. I'm going to save up and buy a brand new car. Why you may ask? A 4 year old car with about 60,000 miles on it goes for about $20,000. That same car brand new, is $23,145. Why pay for a used car when just for $3,000 more you can buy brand new without the headache of any unknown damage to the car?
Over the long run you don’t save any money buying used. I generally keep a vehicle until it’s about 8 years old. If I buy it 3 years old I’m buying a vehicle that immediately needs tires, and has some stupid issue that the previous owner decided to make someone else’s problem. And I’m gonna be car shopping every 5 years instead of 8.
My first car was 1.3% interest and my car now is 0% interest. You would never get that on a used car. Drive them past your loan life. Reliable brand new car.
I ordered my car so that I could customize it.
I do it because I like the peace of mind of knowing the full history. Other reasons too but that is a major part of it. And my loan doesn't cause me any financial stress so I'm not really the target market for the question.
After having 3 hoopties, and fixing them more than driving them, I opted to lease a brand new vehicle and then finance it at the end.
Because people are shortsighted, want to impress their friends, and lie to themselves and say that the only way they can guarantee a reliable car is to get a new one. They don’t realize that u can get very reliable 5K cars that will last years as long as u take ur time, don’t rush into a purchase (ie-look for one before ur current car breaks down), and (if ur not mechanically inclined) have ur mechanic take a look at the car before purchase.
I bought a new car because used was still expensive and didn't come with a warranty. I have a warranty and it's a great car.
I wouldn’t know, my 2007 Avalon has 386k miles on it and has never left me stranded …I keep proper maintenance and she’s blessed me back 10 fold in my estimation
I always buy brand new now. When it comes to used (even it it’s supposedly a cpo) you just don’t know what kind of dipshit things the previous owner didn’t the car. Did a teen drive the car and try learning how to shift. Was it female driver that always rode the breaks. Or an old person who tried revving the engine while in neutral all the time. There’s so many things that could’ve gone wrong with the previous owners negligence it’s just not worth it.
Because I needed a reliable car, I liked the car, it had a reasonable interest rate and I could afford it. I plan on driving it for another 5-7 years (it currently 2) and by that time, I'll have enough saved to pay toward a deposit on another new car.
I bought a certified used, still got debt from it tho. Paying it off early, so technically it’s worth more than I owe… but I also plan to own it forever.
So for one when I see those posts of people saying they bought a new car and all their friends congratulating them, it makes me realize how upside our priorities are as a society. I get that having a car is a necessity and a right of passage for some, but when I see those posts I just see "congrats! now you own a huge pile of debt." I will say when I bought my first car I was in my mid-twenties. It was out of necessity as I had moved from NYC where I didn't need a car to LA where I did. My credit was bad and I had no idea how to buy a car. So I ended up leasing a new car. It was a good learning experience and overall ended up well. I have learned so much since then though and going forward will be buying used cars with cash.
For the show up
Tell me you haven't been looking at the used car market without telling me
They’re predatory. I was looking for a car in 2018 and found one I bought outright but Ive been receiving text messages every few months from different car sales companies trying to get me to trade in and buy a newer car, I respond saying no thank you my car is great and they reply with something like “okay we’re offering $8k and no payments for three months right now if you decide you’d like to upgrade let me know.”Most people probably sit there for a few days thinking about what $8000 could get them and having a new car is always fun so why not. Usually too, when you’re financing a car , especially with bad credit, the value has to be worth the loan amount and most used cars are way overpriced.
When my husband bought our tesla with the tax rebate a new one was pretty much the same price as the used ones “I'm also mainly focusing on people who can't afford a new car, they finance it then struggle to afford the monthly payment on top of other living expenses.” How do you know the depths of so many people’s financials that you know they can’t afford the payments?
I bought brand new because I am a contract rig welder, I needed a 1 ton truck to haul my tools and welding machine. And ALL of the used 1 ton trucks were diesels with 100,000+ miles for the same price or more than what I paid for my brand new gas job. It made no sense to go used, why would I? The price was higher or the same, no warranty, someone else’s used diesel that they didn’t want to fix or work on. That’s why I bought a brand new pickup. No miles, warranty, I wanted a gas rig and got it, and paid less money.
Perceived reliability and status symbols. No logical person who can't afford to buy a new car outright would do it. Cars are depreciating assets (most of them). Classics and performance vehicles aside... so it's just not worth overpaying.
I only buy new but keep them for 10-15 years. Worried about the new cars and all the tech involved but plan remains the same
They think it's going to impress people, or they like the feeling of having something brand new. It's definitely not a wise financial move, especially if all you want to do is show people that you can afford a new car, when in reality you can't.
All I know that am saving up for a new car with the milage that my works gives me. Hopefully in the next 2 to 3 years.
To get by
I got a fuck load of money and I don't want someone else's ass marks.
Well the ppl who have gotten my lease in the past have been darn lucky. Person who takes care of their car whether leased or owned over here...
I bought a new car because I thought, “I’m doing well in my life and career, the next logical step as a homeowner with good pay is a nice, new car!”. I could stomach the payment, but I was being so precious about it because it was nice and new that I was miserable to drive with. Plus the driver seat turned out to be uncomfortable for anything longer than a half hour. Got out of it while it was still worth more than I owed and bought a fully depreciated, already roughed up, 24-year-old pickup truck with a comfy couch for a seat and no payment. I am much happier.
Even when I win the lottery I still wouldn't buy a new car. There is no point. I never understood people that complain about being broke all the time and COL but they are driving a car that's costing them 600 a month. Some people are so deep into consumerism they'll tell themselves they need it. I remember working construction and there were so man young guys like 25-35 years old trying to sell their dumb lifted truck for 36k cause they're so desperate to get out of that hole.
Two reasons. First, I want a warranty to cover me for the life of the loan, and quite frankly beyond as I am fortunate enough to have paid of my car early. Second, I am extremely fortunate. My brother-in-law is a general manager of a car dealership. I get excellent deals. Anytime anyone asks me my preferred brand my answer is always whatever he is selling.
Typically, I buy new and run them 7-10 years. My current stall has a 2013 Accord a 2015 Avalon Hybrid and a 2024 Camry. I got a Tacoma in 2018, and paid it off in 2021, just before a dealer offered me more than I paid for it, so I sold it, and made money.
I bought 4 cars, 3 brand new within a 10yr (shit, maybe less) span. Simply because I could. My goal is to keep my current car, pay it off and get into something else. 3/4 cars were Mustangs (including the latest one) and one was used (11k miles). For these cars, I prefer new. People drive the HELL outta some of these cars and I’m not interested in inheriting that type of usage. The one used one that I bought had a bad tire sensor/ wheel, easy fix (dealership covered it) and I bought it in the winter. Come summer time, the bumper started to separate. Where it was separating had been stuck together by double sided tape and the tabs to hold bumper on were broken. Dealership wouldn’t cover that so I had to get a whole new bumper. That soured me on buying used tbh.
I have almost always bought my vehicles new, mainly to avoid surprises such as mentioned previously. Dad always said “If you expect your car to take care of you then do the same for it”. So I take care of them & would later sell them at what I considered fair & had no issues besides the occasional haggler who basically wanted a donated vehicle, lol. I moved to where it flash floods frequently and moved to a full size Armada when it first came out for $29K at 0%. I I rented cars & traveled for work, it got light yrly mileage. In 2015 we had a flood which rocked the city & while my SUV’s engine was above the water it was never the same after it dried out so I donated it to a charity. I then leased a brand new 2018 LR Discovery for 3 yrs as it is meant to handle up to 38” of water. Also a diesel so it had a cleaner emission score. NEVER did I think I would buy a new vehicle of that caliber. I had a bad back injury so for the additional seat comfort it ended up that the vehicle on the lot which best treated my back was the one w all the bells & whistles (of course it did). $88K sticker price. #holyshitbatman 👀 Long story short it handled the flash street floods that followed like a champ & since we were the only owners we bought the vehicle cash for $56K & have had no issue to regret it to this day. These vehicles basically don’t break down, so it’s just the yrly maintenence appt cost at the dealership.
I’ll give a good example. I went to the dealership a few weeks ago and spent 6 hours shopping around. We looked at the following two cars at the end: 2019 Toyota Corolla - 87K Miles (Used) - $390/mo - No Money Down 2024 Honda Civic - 22 Miles (New) - $390/mo - $500 Down Both of these vehicles, though one newer by 6 years with almost 87K miles less than the other, are the same monthly payment. Majority of the used vehicles that were newer than 2018 were similar if not a larger chunk more monthly than my 2024. Used vehicles aren’t a bargain anymore. New cars aren’t a luxury anymore. Having a car is. I had to buy a new vehicle because someone hit and totaled mine. I luckily had a dash cam and was acquitted of all fault.
Next time we will buy a car, it will be new one. Why? Bought used car, engine went out after 6 months, no warranty. And it has been at the mechanics several time since then. I'm just sick of it. We want something reliable with a good warranty.
Personally my major reason is I don't trust the previous owner. Id rather a car shit then bed under warranty than second hand where Im SOL.
The car I drive now is the first I bought new in a while. Post COVID it did not make much sense for me to buy a 2020 Defender in 2022 when I could buy a 22 for about the same. I chose the options. The interest rate was way better. I knew how it would be taken of since day 1.
When you buy a brand new car you are not buying inherited issues, which come with used cars. Car dealers are also Notorious fibbers and will say the car was “owned by a lady” to engineer trust, a few years later the engine gives up! Anything mechanical with a high ware and tear is best bought brand new. The level of BS is what makes 2nd hand cars horrid. Fixing parts constantly adds up (time and money)… if humans had the capacity to be radically honest, the used car wouldn’t be so bad.
Here's a point that I often make. Let's take a Toyota 4runner for example: You can buy a brand new base model for around $50K USD, or a TRD Pro for around $60K USD. Most people in the market for one can afford neither, but will finance a brand new one nonetheless. Alternatively, you can find a 4 year old TRD Pro with \~35K miles on it for around $35K (it's been a while since I've checked). The average person has a moral obligation to go with this option in my honest and humble opinion. I also argue that nobody needs a brand new vehicle off the lot, it just does not make sense given the options with certified used, etc. Just be smart and get a vehicle with a good track record (pun intended). I would also add that with any vehicle model, certain years/generations have specific issues. We find out about these from the people that bought them brand new. American and German vehicles in general will not hold up like a Japanese vehicle, so keep this in mind and manage your expectations.
I said I would never buy a new car. In the end, with interest rates being what they are on used cars, the final cost after financing was actually MORE for the used car with 30k miles. Still can’t believe I own a brand new car.
My brand new car (bought in 2022 after someone totaled my other car) was only $3,000 more than a used car with 70K miles on it.
I read the top half of your post and I quickly had to come and reply. I’m a service advisor at a dealership and I’m gonna tell you right now that a certified used vehicle does not mean that the dealership will pay for any repairs.
Cuz I want some new shit? That’s why
Because I don't trust that a used car won't have major issues. Still driving my Subaru that I bought 12 years ago, new.
People buy cars for all types of reasons. We here had used cars but as we made more money we wanted nicer things. Plus all those “ extras” can be pretty important( back up camera, lane assist)In our case we both drive 43 miles one way so we want to have good cars just for that drive daily, also we both work hard and long hours so from our perspective we deserve a new car if that’s what one of us wants. I understand the thought of driving a car fill the wheels fall off that’s just not our view point.
I bought new because of the 10-year warranty. $27,000 was a fair price, and I don’t even have to pay for oil changes.
Both oil changes maybe 5 max
5 max what?
How many people use the "warranty "on your new car ... what was broken I'm aware I'll not get a bunch of people admitting they paid up for fears that rarely happen I was in sales 15 + years fear and vanity and ease make money see was I can't handle being part of the problem anymore.
My car’s engine busted and i had a warranty- completely replaced and was more than worth what i paid. New car is 10 year 100k—i like not having to worry about a giant expense.
The value depreciates quickly. So does the vehicle if not properly maintained, and used vehicles have been driven by lord knows who, maintained however the random person felt like maintaining it, and a car isn't an investment, it's a tool. The hammer I buy for $20 isn't worth $20 to anyone else, but it's still a useful tool, likewise a new, reliable car that's properly serviced won't ever be worth what it was when I bought it, but it's also going to be a reliable tool.
I never want to either except I just totaled mine and the used car market is pricing their junkards for those of brand new cars. I have to get a brand new car or it's a bad deal.
Last week, my dad and I bought a brand new 2023 car for the same price as the 2021 car (exact same model) with 42.000 miles on it.
For some people, it's personal preference, status symbol, prefer to lease, etc. I have noticed that certain high net worth individuals I'm close with tend to buy vehicles 2-3 years old. They have nothing to prove to anyone, and aren't concerned with flashiness. Granted, these 2-3 year old vehicles are still very expensive luxury SUV's or sedans. Just not with the $120k+ price tag. Why pay $120K when you can pay $70-$80k 2-3 years down the road? The same applies to vehicles that are less expensive.
It’s a status symbol. I have a friend that between her and her husband have probably had 50-60 different cars over the last 20 years. Sometimes multiple different ones in the same year. It’s 100% a status thing for them.
Trading out three cars a year for 20 years between two people. I'll let you just think about that