When does buying new make sense?

So guys

As our hunt for a CR-V continues the more I'm becoming certain we aren't going to find a car in the combo we want. In the interest of buying a car we're going to have for a long time we're being picky. We want a light blue one with grey cloth interior, SE or EX with a towing hitch and 2wd. This is a pretty tall order, or at least finding a reasonable one. Used CR-Vs are still fetching nearly 20k in many cases. So when does it make sense to buy a new car?

I understand about the resale value as soon as I drive off the lot, but like I said. We want a car to drive for the next 10 years or so, so I'm not terribly worried about that. Having a warranty is always nice, and getting the exact car we want is only $25k.

It makes sense to buy a new car when it is not too much more than trying to find the used car you really want, and when you're planning on keeping the car forever. Sounds like that's exactly the sitch you're in. For the extra $5k I'd buy new in a heartbeat.

When you can afford it and want it.

When the difference between the price of used and new is within $2k was what did it for us. I bought our 2010 Santa Fe new for right at $21k and change off the lot. Used 2009 models were running at $20k with 10k-20k miles. No brainer for us, and we plan on owning it forever.

The pickier you are, the more it makes sense.

People get the best deals when they are flexible.

Buying new makes sense right about now.

When we got married I was buying "well used" and fixing them up to use as my DD. Usually got another one every year or so. My wife had bought a new car just before we got married.

After 10 years when she was ready to get a new car my bookkeeper(wife) pointed out that over that period I had spent ~$8K more for vehicles than she had. And that her vehicle was much more reliable than my collection.

From that point on DD's are always purchased new and kept for ~10 years. She currently drives a MY2000 and my MY2001 was relegated to project car status in 2010.

Wranglers.

Joey

For a non-car person, it makes sense a lot more often than it does for an enthusiast. For instance, my dad DD's a 95 BMW. Two of moms last 3 cars were new, the 3rd was still in warranty.

CRV's have incredible resale values. After 7 years ours is still worth something like 60% of it's original value. For the first year or two it dropped hardly at all. In those circumstances, buying new is really the only way in my opinion. A two year old car for what a new one costs seems like a no-brainer.

Depends on the price of used vs new in the vehicles you are looking at.

I just picked up a 2011 Frontier, Crew cab, Pro-4X with the lux package. $26,500 OTD on a truck with a $33,500 MSRP.

Around here trucks hold their resale value well, so it was a few K less for a truck with 60k miles, or $10k for a truck with 175k+ miles.

Like mentioned earlier, being flexible helps and I wasn't. I didn't want the size of a full-size truck, and wanted a more well equipped vehicle since I DD the truck. The Rockford Fosgate stereo in the truck is really pretty awesome and destroys the Bose that was in my 350Z, the Bose in the wife's Mazda, or the Bose in my buddies truck.

Last fall my friend had to give $26k for a 2008 Z71, crew cab with all the options..........but it already had 75k miles on it. Not really a big deal on a truck, but still.

When SWMBO want one. That is all.

Back in 2001, every automaker was offering 0% financing just to get people to buy cars. I'm sure there were good deals to be had beyond that. Anytime things like that are going on, buying new can make as much sense as buying used.

In my family, we tend to buy cars for the long haul. My dad bought his truck new about 16 years ago. I learned to drive in it, as have all 3 of my siblings. He has about 240k miles on it. The truck is an extended cab, long bed, Ranger with the 2.3 and 5 speed. Also, it's purple. It sat on the dealer lot a while before my dad bought it, and got quite a deal. His previous truck lasted about 18 years before it practically rusted into nothing.

I bought a new car a few years ago, and plan to keep it as long as it makes sense. The price of a low mile, used Mazda3 back in 2007 wasn't substantially lower than a new one. Factor in the more favorable interest rate I got on a new one, and it made more sense to me to buy a new car with a full warranty. Like my dad, I bought a purple one with a 5 speed and got a very good deal.

When you can right off the purchase price of the vehicle over four years and then sell it and put the proceeds in your pocket. Being self employed has it's advantages.

I just bought new. Couldn't touch the bank financing or car deal on the used market. Unless you want something that isn't made anymore, new is a great deal right now.

racerdave600 wrote: CRV's have incredible resale values. After 7 years ours is still worth something like 60% of it's original value. For the first year or two it dropped hardly at all. In those circumstances, buying new is really the only way in my opinion. A two year old car for what a new one costs seems like a no-brainer.

Yeah this is the problem we ran into. Two year old CR-Vs with 50k are going for 19k or higher in the areas we've looked. And even 2006s are going for 16-17k. And like I said, we're being very picky with this car because we want to have it for awhile.

Quick calculation:

Straight-line depreciate the new car to zero over 17 years or 200,000 miles. That's how long I'd expect a modern car to go before it starts becoming a "project car in continuous service".

If you can buy a new car for $20,000, or a four-year-old one with 50,000 miles on it for $14,000, then per mile it's just a little cheaper to go used, and it might be worth it to go new if you want a specific color or engine, or a manual gearbox in a loaded top-of-the-line car. It might work out cheaper to buy new once you factor in a timing belt, a clutch, a new set of tires, brake pads, etc.

If the four-year-old car is $10,000, well, how much is the "upgrade pack" you'd want to throw on your car? Bilstein HD shocks, new bushings everywhere, new top-line tires, a pair of Sparco front seats, only add up to $1500-2000 and can certainly make it better than a new, stock car.

If, on the other hand, you're talking about a current Civic Si... well, a new one is $22,000 list, probably $20,000 out the door for a leftover '11, and a six-year-old flea-bitten mongrel's $17,500 (not much exaggeration)... buy new, it's cheaper!

Of course, a main point of this magazine is to show you how to throw together a decent, fun, practical car for $5000 and a few weekends, but that shouldn't intrude too much on a new-vs-late-model decision, you're substituting money for time anyway.

1 BIG reason to buy new over used is when the new(er) car has a feature or features that you just can't get on the older car. In the case of the CRV, I believe the 2011s have more horsepower than the 2010s, 2009s, and 2008s. It may make enough of a difference, assuming you haven't driven a "brand new" and nearly new model yet, that you will WANT to buy brand new. It also makes sense, sometimes, to buy new when the model of car you are looking at is about to go through a DRASTIC change. The 2012 CRV is NOT the same as the 2011. The styling inside and out will be (slightly?) different....uses the same "themes" just more exaggerated, and will be lighter....don't know about the horsepower. Autoweek online just had a smallish article today about the 2012 CRV. BTW, I can't say when the 2012 will hit showrooms, it may be Sept./Oct. or it may be after the 1st of the year.

I've driven a few CRVs and being a fan of Honda, I wanted one too. But the resale is incredible on them. And when one comes up for sale in the used market it always has HUGE miles on it.

Duke wrote: It makes sense to buy a new car when it is not too much more than trying to find the used car you really want, and when you're planning on keeping the car forever. Sounds like that's exactly the sitch you're in. For the extra $5k I'd buy new in a heartbeat.

Yep. That's why I bought my TDI new after swearing I'd never buy a new car. I wanted specific options and new was the only way to get them.

And used cars typically had high mileage and high prices as well. When I ordered my car in early 2003, TDIs were rare in the era of sub-$2 gas. Moreso than they are now.

z31maniac wrote: Depends on the price of used vs new in the vehicles you are looking at. I just picked up a 2011 Frontier, Crew cab, Pro-4X with the lux package. $26,500 OTD on a truck with a $33,500 MSRP. Around here trucks hold their resale value well, so it was a few K less for a truck with 60k miles, or $10k for a truck with 175k+ miles. Like mentioned earlier, being flexible helps and I wasn't. I didn't want the size of a full-size truck, and wanted a more well equipped vehicle since I DD the truck. The Rockford Fosgate stereo in the truck is really pretty awesome and destroys the Bose that was in my 350Z, the Bose in the wife's Mazda, or the Bose in my buddies truck. Last fall my friend had to give $26k for a 2008 Z71, crew cab with all the options..........but it already had 75k miles on it. Not really a big deal on a truck, but still.

how do you like the frontier? i've put 35k+ in a little over a year and a half on my 2010 xterra Off Road. been to big bend twice, padre island twice, a week in colorado last september and a couple of off-road park and camping trips. really like the RF stereo and rear locker, but i do wish i could have found a 6 speed rather than the slushbox that i've got, but the deal was worth being stuck with the auto.

with a small lift its just about perfect for nearly anything you can throw at it. they'll suprise a lot of jeep people on the trail.

I like to get my wife a new car. She does a lot of mileage for work and we leve pretty far from our familes so I like to have a car that I know wasn't someone else's headache. She's very easy on a car and has gotten 280k out of her first, and her Malibu runs like new at 288k.

I gotta admit, I'm finding myself becoming more and more willing to consider spending real money on a car, and maybe even a new one.

For all my life, I've been "that guy". The guy who bought bombs for a few hundred dollars. Then spend hundreds of hours and dollars keeping them running.

I'm getting to the point of seriously considering buying a car that doesn't need work, and won't need work for many years.

That way I would have time to play with toys.

I also like looking at options lists and imagining having it built for me, instead of compromising and accepting what I can find on the used market.

Strizzo wrote:

z31maniac wrote: Depends on the price of used vs new in the vehicles you are looking at. I just picked up a 2011 Frontier, Crew cab, Pro-4X with the lux package. $26,500 OTD on a truck with a $33,500 MSRP. Around here trucks hold their resale value well, so it was a few K less for a truck with 60k miles, or $10k for a truck with 175k+ miles. Like mentioned earlier, being flexible helps and I wasn't. I didn't want the size of a full-size truck, and wanted a more well equipped vehicle since I DD the truck. The Rockford Fosgate stereo in the truck is really pretty awesome and destroys the Bose that was in my 350Z, the Bose in the wife's Mazda, or the Bose in my buddies truck. Last fall my friend had to give $26k for a 2008 Z71, crew cab with all the options..........but it already had 75k miles on it. Not really a big deal on a truck, but still.

how do you like the frontier? i've put 35k+ in a little over a year and a half on my 2010 xterra Off Road. been to big bend twice, padre island twice, a week in colorado last september and a couple of off-road park and camping trips. really like the RF stereo and rear locker, but i do wish i could have found a 6 speed rather than the slushbox that i've got, but the deal was worth being stuck with the auto. with a small lift its just about perfect for nearly anything you can throw at it. they'll suprise a lot of jeep people on the trail.

Just rolled over 1800 miles on the way to work this morning, have to say, I'm kinda converted to the higher driving position and increased view.

This fall it will get a the load leveling Class IV hitch in preparation for having a dual duty track/nice weather E30. I don't think I'd try to tow with a load like that across the country, but Hallett is only 35 minutes away, and would allow me to not pack the car to the gills to go.

Some good answers already posted.

For me, a new car is the right choice for a family mover that you plan to keep forever and you don't want to Berkeley with it. I figure a new car will give me at least 3 years where I really won't have to do anything but put gas in it, change the oil, and wash it occasionally.

oh how topical for me now. SWMBO's car died on the way home last night (alternator I suspect). Luckily only a few miles from home. While an easy fix this, she is of course quickly growing tired of all the little things going wrong with the car.

Its nice having no payments for her and cheap insurance....but man it would be so nice to not have to worry about her car for YEARS. Its easy for me to say "its going to be more expensive", but I am not the one that has to drive her car every day.

My "new" car is 2 years old now with 41k miles, and buying it was probably one of my better decisions, I never have to worry if it is going to get me to or from work. Add gas, change oil, and go.