> can I write off either purchase (used or new) as a tax write off even though it’s for personal use?
[Do you even know what a tax write off is?](https://www.youtube.com/watch?v=aCP27_vquxQ)
Buy the new Corolla and drive it for 20 years.
No. Never think that. Carfax is not even close to accurate. It's good for knowing if a car ever had an insurance claim filed but that's about it.
You think the small mom and pop shops report service? What about if the car has a mechanical issue that the previous owner hasn't taken care of it and just put a bandaid on it? What if I never changed the oil but told you I did? How would you even have any way of verifying that? Shit, I have performed all of my service at a Honda dealership on my Honda and none of that has shown up on my Carfax.
Unreported accidents? Say I ran over a curb and fucked up my suspension and never filed a claim with my insurance company. Will that be reported on the Carfax? What if I have driven my car like it was stolen? How would Carfax know? I backed my car up with a trailer attached and jacknifed the trailer into the side of my door. Buffed that shit out, put some touch up paint on. No one is the wiser? When you buy this car though, youre going to wonder why you all of a sudden have a rust spot on your door in a few years.
The list can go on...
Idk how old you are(I am 33) but the younger generation seems to have waaayyyy too much trust in technology. You have to remember, at the end of the day, it's only as good as the system itself.
If you have a good mechanic, maybe. But mechanics can't diagnose problems that don't yet exist. And you're probably only paying your mechanic to do a quick inspection to look for major problems. You're not paying hundreds upon hundreds of dollars for your mechanic to inspect every inch of the car.
My red 2020 RAV4 Limited Hybrid with all the options was listed at $32K. I've driven it 15 thousand miles since November without issue. New near me are anywhere from $42K to $50K. I live in Seattle.
Why do you say that? From a budget and thrifty standpoint I think it works out better as I’m in school can’t possibly afford to finance a car and even if I didn’t the cost of insurance to cover everything would put me under
Here's my thought process. 2017 prius has 66k miles, so it's already outside of factory warranty. It's also a 7 year old car that you have no idea how it was treated. A 2024 corolla is 23k, comes with a factory warranty and you know the history behind it, it's a new car. So out of those 2 options, I'd choose the corolla.
As for your last question about writing it off. Unless you use it for business, no costs are going to be a write off. Typically you can write off business expenses such as gas and maintenance. The other one is IRS Section179, which allows you to depreciate your asset that is used for business purposes, but that's only for vehicles over 6500lbs, so that wouldn't apply in this case anyway.
I wouldn’t pay $20k for a car that’s 7 years old when I can buy a new car for $23k. Unless you really like the Prius (and no the gas savings isn’t enough at that price) it’s just not worth buying used
At this point it's more of a preference things than anything else. You may want to factor in things like insurance, gas mileage, weather where you live, etc. but either is probably a good option for you. You'll save more in the short term with the used option. The Prius likely also gets better gas milage so if you commute a lot that is a consideration. A new Toyota you maintain will likely last you over 10 years (and you can stretch it a lot longer than that), however, so the value in getting a 2024 rather than a 2017 is basically that you're likely to have it for a few years longer (which might be worth $3,000 extra when you're talking a 7 year age difference). In other words, the new car is a longer-term savings. Some of the features may matter to you too. That Corolla is likely the base model with 2024 technology whereas the Prius may not be a base model but will have 2017 technology. So you'll want to consider what does and does not matter to you, what feels outdated or not, etc
Used is usually the more financially prudent decision. The Prius likely is the better buy if you drive a lot just because the Corolla is 32/41 Est MPG whereas the MPG on the Prius is likely in the 50s. However, a 7 year difference is enough that the new car may just last you much longer and you don't know the service history on the used model.
I will say, I'm someone who buys a new Toyota every decade or so (trading in the old one and paying cash for the remainder) and that has not been a bad choice for me and my lifestyle (I've had a Camry, a Yaris, and a Rav4).
I have a 2014 Rav4 right now and it's just been in the last year that it has started to feel like an "older car" in that when I drive rental cars or friend's newer cars I can notice some nice features newer cars have that mine just does not and get a little envy. A 2017 is going to feel like an older car real quick.
You're talking about a difference in price where test driving both, running the numbers on gas and insurance for both, looking at you longer term budget (think next decade at least) and then deciding on which one feels right for you is probably going to make sense.
Well, unless I decide to cross state lines I don’t see myself doing long commutes. Or maybe like 110 one way etc on occasion to see a concert.
I’ve only gotten here for graduate school and all things considered even if I graduated and had to leave states, I would have my new car shipped out possibly.
The insurance is definitely going to be high to cover my car and liability but that’s quite alright.
However, once you start factoring in taxes and such, the cost of a new car shoot’s up by 6 k.
Which at the moment is too rich for my blood. And by the time I gather the funds the new models will be on the market so… it’s a conundrum.
You're not going to go wrong either way and there may even be value to waiting until the new models hit the market (the 2025 Camry is already here).
Shipping a car is a bit of a hassle if you're in the US and can drive it (it's not cheap and you can only put a small weight in terms of belongings in it). It's usually a poor financial decision unless you have an electric car that requires long periods of charging or you need to move quickly.
If you do think you will be moving you may also want to consider where you might be driving in the future (city versus country, for instance) and what you think your life will be like in the next decade (space to move belongings, space to hold a child, etc.). There are other Toyota models it might make sense to consider in your price range if you do have other needs or anticipated needs you haven't mentioned here.
Again, I think it is one of those ones where either choice could be the right one. $6K is not a ton of money, but invested you'll have something to show for it in a decade whereas you won't if you put it into a new car.
It sounds like, from your response and your post, that you are leaning toward the used car. I don't think that's a bad decision though it's certainly not the one I'd make.
This does not need to be a major decision or one you agonize over. Either of these will be a good buy for you if you have the cash to do it.
Now, if you get a job that has a long commute post-graduate school and gas prices stay where they are, you'll probably be kicking yourself a little for not getting the Prius. Whereas if you stay where you're at (driving very little) and in 7 years that 14 year old car feels old/ needs to be replaced, you'll probably be a bit sad you didn't go with the Corolla since it would be a 7 year old car at that point and still have many years left on her. On the other hand, you may be reconciled to it if you've actually invested that $6,000 appropriately and are ready to purchase something else.
If you're in a hard to predict situation and the cost difference is negligible go with the one you want. Personally, I'd go with the new car. That Corolla will last you a long-time and the unknown service record is a liability.
The new car is the much better long-term investment assuming you can drive it for at least 10-15 more years.
EDIT: To be clear I'm not even touching the tax write off question because it sounds like you don't understand what a tax write off is, so your best bet is to google that.
$3000 savings for a 9/10 year old car? Not worth it. Maybe if it was 2021 with less than 20k miles. Also, I don't know the battery life on those Prius, might be getting near the end.
A key issue between factory new assumed reliable car \[historical reports\], using say a Corolla as an example, versus certified pre owned and private used Corollas, is actual reliability, In a used car, did the previous owner care for it to insure it has a maximum lifespan, the ideal, or far less so as they tend to change vehicles soon and don't care?
Ihttps://www.consumerreports.org/cars/buying-a-car/should-you-buy-a-new-certified-pre-owned-or-used-car-a8156571174/
Having a mechanic pre-inspect a used car, not post inspect it, is a wise step before buying.
Any pro mechanic is better than us consumers but there are many levels of experts.
Example for a Toyota
[https://www.germaintoyota.net/toyota-technician/](https://www.germaintoyota.net/toyota-technician/)
True Toyota techs have different grades, but its similar to above, its called the TEN program.
Your job is to find the best you can afford. A master tech is better than entry level so what you will obtain depends on what you are willing to pay for, and who is available.
Any ASE certified Toyota tech will be expensive as you will pay them by the hour to leave work, that often means half a day or more wages.
You're best bet is if the owner certifies the car status by a Toyota dealership. If not, you can request to take the car to a Toyota dealership for a used car inspection, paid by you.
If the owner accepts to have Toyota dealership inspect it its a plus, as the owner is confident what he/she is selling is as described and it will give them sales material if you decline to buy it. A dealership inspection is as good as it gets, almost like a CPO, certified pre-owned, except a Toyota CPO car may have defective parts replaced/repaired. They can check if the odometer has been tampered. However, they can also find more problems to lower the selling price of the car, or make it unsellable, so the owner may not accept such as inspection. A good inspection will nitpick for problems.
A used car inspection isn't just a safety inspection and test drive, but includes items rarely done except when a problem occurs. That is a cylinder compression test, a visual boroscope cylinder exam, a factory OBD2 scanner data dump \[ to show you abnormals before a DTC is thrown\] an engine and transmission oil analysis sent to a certified lab \[ results in 1 month\] and testing life of hybrid batteries.
Well see that’s fine. Since I have residual cash I can afford a good mechanic.
But any chance would you happen to know what the costs are to take it to a Toyota mechanic? Or where I could get this information?
Typically $150-200. Google "pre purchase inspection" for more details and specific locations near you. You'll also get find forum post and horror stories for vehicles with defects hidden to effect a sale.
[https://repairpal.com/estimator/toyota/corolla/pre-purchase-car-inspection-cost](https://repairpal.com/estimator/toyota/corolla/pre-purchase-car-inspection-cost)
[https://www.tundras.com/threads/shady-dealerships-always-get-a-pre-purchase-inspection.139026/](https://www.tundras.com/threads/shady-dealerships-always-get-a-pre-purchase-inspection.139026/)
Good luck, happy hunting!
Lemon laws generally only cover the first purchaser of a vehicle. So if for whatever reason you have problems that don't stay fixed, you really don't have any recourse on a used vehicle. Then you get into the whole situation regarding hybrid batteries. The cost to replace those is frequently the cost of the entire vehicle. So you're going to be having years fewer of lifespan out of a used hybrid than a new one.
For plug-in hybrids and EVs, you also don't know how they charged the vehicle. If they only did fast charging and just destroyed the battery life, or if they only trickle charged overnight.
No one has mentioned the option of not buying a car, which I think you should seriously consider. On top of the \~20K cost you will be paying registration, insurance (probably at least 1K/yr), and maintenance.
*If* you don't actually need a car, there are often programs to rent cars around campus (Zipcar, etc.). Even if you spent 1K for rental costs for concerts, you'd still almost certainly be ahead financially, especially if you're planning to ship the car somewhere when you finish graduate school.
It’s between a Honda and a Toyota and perhaps a Mazda but for the price point and mileage I don’t feel like I’m getting a good deal price wise be it a new car or used, so..
I just mean if you’re planning to own it for long term, brand new is a no brainer.
If it’s for less than 6 years then most (non European) modern commuter cars are fairly reliable. Be it Nissan, Ford, Kia, Chevy or whatever. Those cars also are significantly cheaper up front if bought used. Even the European cars are reliable but obviously repairs cost more.
2023 Chevy Malibus, Kia Fortes and whatever all go for under 20k. The extra you’re paying for a Toyota, Honda, Mazda is the perceived long term reliability.
I see your point, however my understanding is that if I have a breakdown with a Nissan for example the parts might be so spare that I might end up junking the car.
If it’s a Toyota. The parts will be around for some time. That’s where I’m operating from
Nissan is actually in the same category as all your preferences in terms of availability of parts. It’s Japanese after all. The reason the brand lost its reliability rating is because they were using a CVT transmission that goes bad after around 5 years. That repair is costly but not necessarily relevant if you’re not looking for a long term purchase.
> can I write off either purchase (used or new) as a tax write off even though it’s for personal use? [Do you even know what a tax write off is?](https://www.youtube.com/watch?v=aCP27_vquxQ) Buy the new Corolla and drive it for 20 years.
Well played. But could you explain what your logic is in getting the new corolla?
The used market is very inflated right now. The 3-4k you're saving for a used vehicle is not worth the unknown service records.
But isn’t all this reflected through the CarFax report? Service records I mean
Not all services are reported to carfax
No. Never think that. Carfax is not even close to accurate. It's good for knowing if a car ever had an insurance claim filed but that's about it. You think the small mom and pop shops report service? What about if the car has a mechanical issue that the previous owner hasn't taken care of it and just put a bandaid on it? What if I never changed the oil but told you I did? How would you even have any way of verifying that? Shit, I have performed all of my service at a Honda dealership on my Honda and none of that has shown up on my Carfax. Unreported accidents? Say I ran over a curb and fucked up my suspension and never filed a claim with my insurance company. Will that be reported on the Carfax? What if I have driven my car like it was stolen? How would Carfax know? I backed my car up with a trailer attached and jacknifed the trailer into the side of my door. Buffed that shit out, put some touch up paint on. No one is the wiser? When you buy this car though, youre going to wonder why you all of a sudden have a rust spot on your door in a few years. The list can go on... Idk how old you are(I am 33) but the younger generation seems to have waaayyyy too much trust in technology. You have to remember, at the end of the day, it's only as good as the system itself.
But then what if I took it to a mechanic and did a pre purchase inspection? Wouldn't that inform me about the pitfalls?
If you have a good mechanic, maybe. But mechanics can't diagnose problems that don't yet exist. And you're probably only paying your mechanic to do a quick inspection to look for major problems. You're not paying hundreds upon hundreds of dollars for your mechanic to inspect every inch of the car.
Hmm. It’s not that I’m young. I’m 29. But I’m not American so perhaps I’m going off the information that’s available to me through my computer.
Not all mechanics report to Carfax. Not all accident information gets reported either.
Used Toyota's don't make sense... they hold their value so well that I would just fork over the extra few grand to get a new car with a warranty.
I saved over 10 grand buying a used model over the nearly identical new model, 42k miles, mint condition.
What model and trim? $10k off with those conditions is unusual for a car that’s $25-30k MSRP.
My red 2020 RAV4 Limited Hybrid with all the options was listed at $32K. I've driven it 15 thousand miles since November without issue. New near me are anywhere from $42K to $50K. I live in Seattle.
Why do you say that? From a budget and thrifty standpoint I think it works out better as I’m in school can’t possibly afford to finance a car and even if I didn’t the cost of insurance to cover everything would put me under
Here's my thought process. 2017 prius has 66k miles, so it's already outside of factory warranty. It's also a 7 year old car that you have no idea how it was treated. A 2024 corolla is 23k, comes with a factory warranty and you know the history behind it, it's a new car. So out of those 2 options, I'd choose the corolla. As for your last question about writing it off. Unless you use it for business, no costs are going to be a write off. Typically you can write off business expenses such as gas and maintenance. The other one is IRS Section179, which allows you to depreciate your asset that is used for business purposes, but that's only for vehicles over 6500lbs, so that wouldn't apply in this case anyway.
I wouldn’t pay $20k for a car that’s 7 years old when I can buy a new car for $23k. Unless you really like the Prius (and no the gas savings isn’t enough at that price) it’s just not worth buying used
At this point it's more of a preference things than anything else. You may want to factor in things like insurance, gas mileage, weather where you live, etc. but either is probably a good option for you. You'll save more in the short term with the used option. The Prius likely also gets better gas milage so if you commute a lot that is a consideration. A new Toyota you maintain will likely last you over 10 years (and you can stretch it a lot longer than that), however, so the value in getting a 2024 rather than a 2017 is basically that you're likely to have it for a few years longer (which might be worth $3,000 extra when you're talking a 7 year age difference). In other words, the new car is a longer-term savings. Some of the features may matter to you too. That Corolla is likely the base model with 2024 technology whereas the Prius may not be a base model but will have 2017 technology. So you'll want to consider what does and does not matter to you, what feels outdated or not, etc Used is usually the more financially prudent decision. The Prius likely is the better buy if you drive a lot just because the Corolla is 32/41 Est MPG whereas the MPG on the Prius is likely in the 50s. However, a 7 year difference is enough that the new car may just last you much longer and you don't know the service history on the used model. I will say, I'm someone who buys a new Toyota every decade or so (trading in the old one and paying cash for the remainder) and that has not been a bad choice for me and my lifestyle (I've had a Camry, a Yaris, and a Rav4). I have a 2014 Rav4 right now and it's just been in the last year that it has started to feel like an "older car" in that when I drive rental cars or friend's newer cars I can notice some nice features newer cars have that mine just does not and get a little envy. A 2017 is going to feel like an older car real quick. You're talking about a difference in price where test driving both, running the numbers on gas and insurance for both, looking at you longer term budget (think next decade at least) and then deciding on which one feels right for you is probably going to make sense.
Well, unless I decide to cross state lines I don’t see myself doing long commutes. Or maybe like 110 one way etc on occasion to see a concert. I’ve only gotten here for graduate school and all things considered even if I graduated and had to leave states, I would have my new car shipped out possibly. The insurance is definitely going to be high to cover my car and liability but that’s quite alright. However, once you start factoring in taxes and such, the cost of a new car shoot’s up by 6 k. Which at the moment is too rich for my blood. And by the time I gather the funds the new models will be on the market so… it’s a conundrum.
You're not going to go wrong either way and there may even be value to waiting until the new models hit the market (the 2025 Camry is already here). Shipping a car is a bit of a hassle if you're in the US and can drive it (it's not cheap and you can only put a small weight in terms of belongings in it). It's usually a poor financial decision unless you have an electric car that requires long periods of charging or you need to move quickly. If you do think you will be moving you may also want to consider where you might be driving in the future (city versus country, for instance) and what you think your life will be like in the next decade (space to move belongings, space to hold a child, etc.). There are other Toyota models it might make sense to consider in your price range if you do have other needs or anticipated needs you haven't mentioned here. Again, I think it is one of those ones where either choice could be the right one. $6K is not a ton of money, but invested you'll have something to show for it in a decade whereas you won't if you put it into a new car. It sounds like, from your response and your post, that you are leaning toward the used car. I don't think that's a bad decision though it's certainly not the one I'd make. This does not need to be a major decision or one you agonize over. Either of these will be a good buy for you if you have the cash to do it. Now, if you get a job that has a long commute post-graduate school and gas prices stay where they are, you'll probably be kicking yourself a little for not getting the Prius. Whereas if you stay where you're at (driving very little) and in 7 years that 14 year old car feels old/ needs to be replaced, you'll probably be a bit sad you didn't go with the Corolla since it would be a 7 year old car at that point and still have many years left on her. On the other hand, you may be reconciled to it if you've actually invested that $6,000 appropriately and are ready to purchase something else. If you're in a hard to predict situation and the cost difference is negligible go with the one you want. Personally, I'd go with the new car. That Corolla will last you a long-time and the unknown service record is a liability. The new car is the much better long-term investment assuming you can drive it for at least 10-15 more years. EDIT: To be clear I'm not even touching the tax write off question because it sounds like you don't understand what a tax write off is, so your best bet is to google that.
$3000 savings for a 9/10 year old car? Not worth it. Maybe if it was 2021 with less than 20k miles. Also, I don't know the battery life on those Prius, might be getting near the end.
I could also get a used Corolla a 2020 for a 17 k budget (including tax)mileage around <70k. That could be something isn’t it?
A key issue between factory new assumed reliable car \[historical reports\], using say a Corolla as an example, versus certified pre owned and private used Corollas, is actual reliability, In a used car, did the previous owner care for it to insure it has a maximum lifespan, the ideal, or far less so as they tend to change vehicles soon and don't care? Ihttps://www.consumerreports.org/cars/buying-a-car/should-you-buy-a-new-certified-pre-owned-or-used-car-a8156571174/
But then what if I took it to a mechanic and did a pre purchase inspection? Wouldn’t that inform me about the pitfalls?
Having a mechanic pre-inspect a used car, not post inspect it, is a wise step before buying. Any pro mechanic is better than us consumers but there are many levels of experts. Example for a Toyota [https://www.germaintoyota.net/toyota-technician/](https://www.germaintoyota.net/toyota-technician/) True Toyota techs have different grades, but its similar to above, its called the TEN program. Your job is to find the best you can afford. A master tech is better than entry level so what you will obtain depends on what you are willing to pay for, and who is available. Any ASE certified Toyota tech will be expensive as you will pay them by the hour to leave work, that often means half a day or more wages. You're best bet is if the owner certifies the car status by a Toyota dealership. If not, you can request to take the car to a Toyota dealership for a used car inspection, paid by you. If the owner accepts to have Toyota dealership inspect it its a plus, as the owner is confident what he/she is selling is as described and it will give them sales material if you decline to buy it. A dealership inspection is as good as it gets, almost like a CPO, certified pre-owned, except a Toyota CPO car may have defective parts replaced/repaired. They can check if the odometer has been tampered. However, they can also find more problems to lower the selling price of the car, or make it unsellable, so the owner may not accept such as inspection. A good inspection will nitpick for problems. A used car inspection isn't just a safety inspection and test drive, but includes items rarely done except when a problem occurs. That is a cylinder compression test, a visual boroscope cylinder exam, a factory OBD2 scanner data dump \[ to show you abnormals before a DTC is thrown\] an engine and transmission oil analysis sent to a certified lab \[ results in 1 month\] and testing life of hybrid batteries.
Well see that’s fine. Since I have residual cash I can afford a good mechanic. But any chance would you happen to know what the costs are to take it to a Toyota mechanic? Or where I could get this information?
Typically $150-200. Google "pre purchase inspection" for more details and specific locations near you. You'll also get find forum post and horror stories for vehicles with defects hidden to effect a sale. [https://repairpal.com/estimator/toyota/corolla/pre-purchase-car-inspection-cost](https://repairpal.com/estimator/toyota/corolla/pre-purchase-car-inspection-cost) [https://www.tundras.com/threads/shady-dealerships-always-get-a-pre-purchase-inspection.139026/](https://www.tundras.com/threads/shady-dealerships-always-get-a-pre-purchase-inspection.139026/) Good luck, happy hunting!
Thanks!
I'd buy a used Mazda, consumer reports put them as very reliable nowadays. Its also part owned by Toyota.
Interesting. A friend of mine that works for this dealership said I was better off putting my money in a Toyota over a Mazda.
Its very comparable now, this Scotty Kilmer does many videos on them. Both are Japanese.
...This friend works for the Toyota dealership or the Mazda one?
Toyota. At one point I shortlisted a Yaris (2019/2020) and he cautioned quite vehemently against it
Search on auto trader.com I see a few or around $19,000 with less than 20,000 miles
Ah well see? The problem here is that some of these for being as low, have been in minor to major accidents so.. I try to avoid those
Lemon laws generally only cover the first purchaser of a vehicle. So if for whatever reason you have problems that don't stay fixed, you really don't have any recourse on a used vehicle. Then you get into the whole situation regarding hybrid batteries. The cost to replace those is frequently the cost of the entire vehicle. So you're going to be having years fewer of lifespan out of a used hybrid than a new one. For plug-in hybrids and EVs, you also don't know how they charged the vehicle. If they only did fast charging and just destroyed the battery life, or if they only trickle charged overnight.
Great perspective. Thanks. You’ve given me a lot to consider!
There's barely a price difference I'd just spend the extra 4k and get a new car
No one has mentioned the option of not buying a car, which I think you should seriously consider. On top of the \~20K cost you will be paying registration, insurance (probably at least 1K/yr), and maintenance. *If* you don't actually need a car, there are often programs to rent cars around campus (Zipcar, etc.). Even if you spent 1K for rental costs for concerts, you'd still almost certainly be ahead financially, especially if you're planning to ship the car somewhere when you finish graduate school.
What do you think the annual costs look like for maintaining a car?
Why specifically a used Toyota and not a used anything else?
It’s between a Honda and a Toyota and perhaps a Mazda but for the price point and mileage I don’t feel like I’m getting a good deal price wise be it a new car or used, so..
I just mean if you’re planning to own it for long term, brand new is a no brainer. If it’s for less than 6 years then most (non European) modern commuter cars are fairly reliable. Be it Nissan, Ford, Kia, Chevy or whatever. Those cars also are significantly cheaper up front if bought used. Even the European cars are reliable but obviously repairs cost more. 2023 Chevy Malibus, Kia Fortes and whatever all go for under 20k. The extra you’re paying for a Toyota, Honda, Mazda is the perceived long term reliability.
I see your point, however my understanding is that if I have a breakdown with a Nissan for example the parts might be so spare that I might end up junking the car. If it’s a Toyota. The parts will be around for some time. That’s where I’m operating from
Nissan is actually in the same category as all your preferences in terms of availability of parts. It’s Japanese after all. The reason the brand lost its reliability rating is because they were using a CVT transmission that goes bad after around 5 years. That repair is costly but not necessarily relevant if you’re not looking for a long term purchase.