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Comments on: New Car or Used Car – Which is the Better Deal?



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Last Build Date: Fri, 16 Feb 2018 15:16:31 +0000

 



By: Kevin Mercadante

Wed, 04 Nov 2015 22:57:20 +0000

Hi Kathy - I'm with you, I hate buying cars, and especially new ones. I can't shake the feeling that the dealer is trying to put one over on me (because they usually are). But even more than that, I hate paying full price for a car that will depreciate significantly as soon as I drive it off the lot. I'd rather buy a depreciated car. We've had good luck with older cars, but we have the backyard mechanic advantage where we pay about 50% below retail for our parts and mechanic work. Still, I find that most cars - regardless of age - run well most of the time. I also see enough late model cars riding on flatbeds to realize that all cars have problems sooner or later.



By: Kathy

Wed, 04 Nov 2015 20:32:04 +0000

My husband firmly believes that buying a used car is buying someone else's problems. He also doesn't like to have a car that is out of warranty. However, at this point in time we have a 12 year old truck that we did purchase new. And we have a 8 year old Lexus that we purchased 3 years ago from a relative for cash. It only had 15,000 miles on it and because we knew the maintenance history and the owner had treated it like a baby, we took a chance on it. We currently love both vehicles, plan to keep them a long time yet, and have actually had offers to purchase both. Only problem with that is if we sold them, then we once again have to think about buying a different vehicle, which is a process I absolutely hate.



By: Kevin Mercadante

Fri, 29 Mar 2013 00:48:26 +0000

Hi Pam--I fully agree on the time factor. Anytime you try to save money on any purchase, it takes longer. It's an exchange of time for savings. As far as the cost of buying used though, you're spending hundreds to save thousands, which is a good exchange. Less convenient for sure, but it leads to a fatter bank account eventually.



By: Pam@Pennysaverblog

Fri, 29 Mar 2013 00:27:39 +0000

My husband and I have bought many used cars in the past and one new car. For the most part, I am definitely in agreement that it makes more financial sense to buy used vehicles, but it definitely takes a lot more time when you buy used because you need to do a lot of research as well as you really should take the used vehicle in to a mechanic for an inspection before you agree to buy it - so that takes money and time, too.



By: Kevin Mercadante

Mon, 25 Mar 2013 13:50:55 +0000

Hi Will--I have to disagree on government incentives. Any program that causes you to buy a car that you didn't truly need is counter-productive. But I'm with you on electric cars, the next series of gas lines will bare that out.



By: Will Van Hartog

Mon, 25 Mar 2013 10:00:41 +0000

I See cars as liabilities so a used car is a sensible option, however if the government provides incentives to buy new that's a different ball game and if electric cars save you money and are readily available I'd rather use them!



By: Kevin Mercadante

Sat, 23 Mar 2013 21:10:26 +0000

Hi Grayson--Technically, it's really both an asset and a liability. The X factor is the steady drop on value. It makes buying smart so much more important.



By: Grayson @ Debt Roundup

Fri, 22 Mar 2013 20:13:38 +0000

Actually, I consider every car an asset. It allows me to get to and from work and places that I can't normally get to without it. New or used, a vehicle is an asset and spending money on the right asset is what it should come down to. While they are also liabilities, so are houses and many other things that we hold dear.



By: Kevin M

Fri, 26 Aug 2011 17:13:23 +0000

Thanks for the comment Kevin2. You're Kevin1 when it comes to real estate! Anyone reading who lives in Southern California, needs to buy or sell property and wants to work with an agent who knows his business, check out kevinpaffrath.com. There's also a lot of good, current market information on his site, and I should know because I visit it often to stay on top of industry trends. (OK, I do some commenting too, but what the heck--I'm there anyway!) I should also add, from my mortgage experience, that large car loans were one of the major problems for people qualifying for mortgages, especially first time home buyers. If you think you're going to buy a home in the next year or two, a used car is definately the way to go. Not only is the payment lower than on a new car, but they're smaller and easier to payoff, should that become necessary to qualify for a mortgage. It's tougher to qualify for a mortgage these days, so you have to keep your options open.



By: Kevin Paffrathi

Fri, 26 Aug 2011 01:34:42 +0000

Although a lot of new buyers (like myself) are getting rates closer to 5%, you are still right in comparing 2 car payments in a family as being close to the payments for a home. My Prius payment is $505 per month. Two Prii for a couple could equate to a nice $130,000 condo with total monthly payments (principal, interest, property taxes, and insurance AND HOA dues) being UNDER $1,000 per month (even in Southern California coastline real estate). Great post, Kevin2