New Car vs Used?

[Rylant]

Hey all,

So, I was in a car accident today, and it seems as though I may have to buy another car. I am WILLING to spend 30k on a brand new car, but I am wondering if it is worth it. I can find a used car with 20 - 30 thousand kms on it, and spend a lot less. Of course, that means trusting somebody, or trusting a dealership that there isn't something wrong with this used car.

I owned my last car for like 10 years before crashing it today, but it never let me down. I bought it used with 38k kms on it and over the last 10 years, have needed new tires, some minor break work, needed one of the windshield motors replaced, and regular maintenance. To me, reliability is huge in a car. It never once broke down, and started every single morning when I went out to it in Edmonton's -35 degree weather (Always plugged in, though).

So, what are your thoughts? Spend 30k on a new car or spend less on a used car? Thanks for the help, fellahs.

Rylant

PS, I have NEVER owned a brand new car.

[Bawston]

New car is not worth it IMO. Buy a nice used car with low miles, find a good mechanic or get referred to one and have someone do a once over check on everything if you can.

New cars are nice, but soon as you drive off the lot the value depreciates instantly.

I guess it comes down to what you can afford without it hurting you. If your well off with finances and have never bought a new car before, maybe reward yourself?

At the end of the day, I really think a nice used car is the best way to go for the money.

[metaldude26]

Take this for what you will but I'm in the market for a new vehicle and I'm definitely buying new not used. I just look at the way the car market is and you can pretty much bend the dealer over backwards if you are willing to buy new. You can get your 0% interest without having to put any money down and you can get the warranty and free check ups for a very reasonable amount of time. So all you really need to do is make sure you make your payments and you are in the clear without needing to worry about if something goes wrong with the vehicle. That peace of mind and lack of stress really goes a long way for me.

Now if you have the time to do some really good research it could very well be worth it to buy used but I'd have to be pretty meticulous to give up what a dealership is willing to offer me to buy something used.

Of course, this all assumes you don't have terrible credit, which could swing you towards buying used in a real hurry.

[blayze]

I've owned many used cars over the years, and although it can be hit or miss, I personally don't think it's worth the hassle - unless you're a student or really tight on the budget.

I don't believe in owning either... I generally have a philosophy of not buying depreciating assets.

I am a HUGE fan of leasing for several reasons:
1) You get a brand new car every 2-4 years, which is big for me because I get bored easily
2) Cars tend to break down and have problems after that initial 3-4 year period, so you're basically getting the car's best years (while it's on full warranty), and then pawning off the subsequent problems and repairs on someone else

Of course, leasing is slightly more expensive than financing, but I think it's worth every penny.

[ericdaoust]

Keep in mind that I bought my car in 2008, but at that time I was 1000% for buying used. The cost difference was about half. The new car was 20k+ and I bought mine used (1 yr old), rebuilt from an accident and with chrome rims and custom paint for 12,500. If you do go with a used/collision'd car, make sure you're buying from someone with a good reputation.

In the end though, money talks and if you can bring down the price of the new one, then go that route.

[cdubb]

Keep in mind that I bought my car in 2008, but at that time I was 1000% for buying used. The cost difference was about half. The new car was 20k+ and I bought mine used (1 yr old), rebuilt from an accident and with chrome rims and custom paint for 12,500. If you do go with a used/collision'd car, make sure you're buying from someone with a good reputation.

In the end though, money talks and if you can bring down the price of the new one, then go that route.

I'd recommend not getting one that's been in a major accident. Though I know ICBC auctions off cars that have been wrecked, and a surgeon in Prince George bought a Lamborghini to rebuild.

You can get reliable cars that have been not abused. I find don't buy from a younger male because they drive vehicles harder.

Before I moved this summer I sold my 2005 Honda accord coupe with 50,000 KM for $9500.

[BlackGold]

Were you the car that hit the bridge pier at yellowhead and henday(eastside)?

I'd say it should depend on the price difference between new and used. If you're only saving 2k to 4k on a 30k car, i say get the new one as a used one is not worth the possible hassles of getting a lemon. Also consider any tech updates in the current models, might be worth getting the new ones to have that tech for the next ten years.

[Bomm Bastic]

Whatever you decide, first do a little reseach via consumer reports and/or kelley blue book

It will provide sound info re the difference between invoice price, resale price, and MSRP. They will also provide info about car reliability by make/model/year, as well as alert you to any recall notices or potential red flags.

[smoothfun]

If you can afford it then you should buy new.
As has been stated you can get some great deals on a new vehicle + you
get warranty.
Do your research.
Shop around.
Hope you're ok , and good luck car hunting.

[Axeman33]

I've owned many used cars over the years, and although it can be hit or miss, I personally don't think it's worth the hassle - unless you're a student or really tight on the budget.

I don't believe in owning either... I generally have a philosophy of not buying depreciating assets.

I am a HUGE fan of leasing for several reasons:
1) You get a brand new car every 2-4 years, which is big for me because I get bored easily
2) Cars tend to break down and have problems after that initial 3-4 year period, so you're basically getting the car's best years (while it's on full warranty), and then pawning off the subsequent problems and repairs on someone else

Of course, leasing is slightly more expensive than financing, but I think it's worth every penny.

Leasing definitely has its benefits but it all depends on your situation.

First off, if you put a lot of KMs on your vehicle each year (20K+) then leasing may not be a great option. You get penalized for extra KMs but that all depends on your lease agreement.

If you dont drive much, then leasing can definitely be a good way to go.

Blayze, not sure where you lease your vehicles from, but leasing is usually cheaper then buying because of the amount left at the end of the lease is still due.

http://www.leaseguide.com/lease03.htm

Good website to explain the differences between leasing vs buying.

To answer your original question - anytime you buy a used car, you are taking a chance. At least if you buy new you know what you are getting. True, there are lemons coming directly off the lot too, but at least you can go back to the dealership and deal with them when you buy it new from them. The dealerships tend to be more helpful when you bought it from them, instead of buying it used and then going back to them looking for warranty work. Just my opinion but I would buy new if you can.

[ericdaoust]

I'd recommend not getting one that's been in a major accident. Though I know ICBC auctions off cars that have been wrecked, and a surgeon in Prince George bought a Lamborghini to rebuild.

You can get reliable cars that have been not abused. I find don't buy from a younger male because they drive vehicles harder.

Before I moved this summer I sold my 2005 Honda accord coupe with 50,000 KM for $9500.

Definitely not in the case of a major accident. Mine was hit over the passenger front wheel and re-built by a body shop for the owner's son. After a few months that shop sold it to me.

My dad and uncle used to re-build their own cars so I've had pre-wrecked vehicles around me all my life. I've always liked the cost benefit of going this route. But like everything else if you ask for trouble then you might get what you deserve.

[Zorro]

Buy new unless you have the inside track on what used car you would be buying..

Buying new these days have alot of perks..

[dyzfunctioned]

I've bought used for every car I've had so far. Just find a dealer that offers a warranty for used cars.

I drive a VW Rabbit right now - 2008 and I bought it towards the end of the 2008 year. Had like 10k on it, paid $9k less than new price and it came with the standard 3-year new warranty in addition to a 5-year used warranty so I have warranty until 2016.

Planning on buying used next time around too - the price difference compared with new can be massive.

[DerekReese]

I like to buy new. I like the peice of mind that things wont go wrong for a long time.

[doulos]

Buying used is the way to go in my opinion. The second you drive that new car off the lot you've just set thousands upon thousands of dollars on fire.

Also, it's a bit of a crapshoot whether new cars actually give you the peace of mind. Co-worker of mine just had his truck (that he bought new) explode on the highway a few weeks after his warranty was all up.

The end result was a bill for over $10,000.

Crap happens with vehicles no matter what the age of them, and the average vehicle is never going to be an investment.

Save up the cash, buy it outright, and you'll be financially ahead of most others.