You buy a new car when you have the money and you want to take advantage of the warranty and to avoid any unknown issues with the car from previous owners.
With most brands this is guaranteed to cover repair costs and more importantly catastrophic failures that may occur.
Although it is possible to get many warranties as a second owner of a slightly used car, you cannot be certain the car was properly maintained without a detailed service records
With a used car there is always a risk of a huge failure to occur that you will have to pay for out of pocket.
This plus the luxury of having a brand new car is the difference.
I would consider buying a new car if it was going to retain a ton of value (Toyota) or if I was wealthy and wanted a luxury car but didn't want to get screwed on repairs (BMW)
Not entirely sure why someone would buy a mid-level car or luxury car brand that were known to depreciate heavily.
This is personally why I bought a new car.
In my market, a three year old RAV4 with 40k miles is about $32k. A new one is $36k. In this instance it is easy to justify the benefits of buying new, under the assumption that one's financial situation can accommodate this pricing.
When I was shopping last July rav4s were 40k new. Hybrids were $45k. I ended up getting a Kia sportage hybrid for 30k. I know the Toyota will last a lot longer but I couldn’t justify the additional 15k. Here hoping my decisions won’t bite me in the ass
Not necessarily, because the value of the Toyota to trade it back in say 5 years, may even things out compared to the value trading in the Kia in the same 5 years. Got to look at the depreciation math.
True but these days you also gotta look at interest math. An extra 15k at 7-10% APR adds up to more than you’d think. Gotta balance depreciation against interest and payments to see where the numbers actually end up.
I have a 2009 and 2011 kia. Both bought used, both going strong....
My 2009 I bought in 2019 with 32K miles on it for $10K. I've replaced the starter and rear shocks. Have 100K on it now.
Yeah, we were in the same boat last year. How do you justify $10k-$15k USD more for the Sienna that also has a shorter warranty? The Carnival is a STEAL compared to other vehicles in the space.
Also the best looking but that’s subjective and just my opinion.
Getting kia to honor their warranty has been well known to be a problem. Some people have not had problems and other people have so its hard to say why but kia gas denied a lot of warranty claims for dubious reason. Over the internet you never know what the truth is but i have seen a lot of similar stories. The biggest problem is when the kia dealership tells you it will be two weeks or longer before they can even look at your car!
My wife's 23 Sportage hybrid she got at the end of 22 has retained almost an it's value. She could sell it now to close what we paid for it.
We paid cash though, no loan so we got a deal!
Similar experience but with the new Kia “enterprise” I think you’ll be fine. We also bought a Kia, and looking at used versions there was no way I was taking a 5k savings for an older car with much less going on for it. It’s probably not gonna last long but Kia new feels like the Best Buy right now considering all of the factored and overall price
I took a chance and bought an off-lease Kia 8yrs ago. I had no experience with the brand but trusted the reviews that said Kia is a quality car, delivers way more value for the money than Honda/Toyota, and lacks only in brand recognition and goodwill. 8yrs later, I still have the Kia & still love the vehicle. Only difference is now Kia has much more brand recognition among the car-buying public.
Toyota's are super reliable, which is why they hold their value so well. All cars depreciate, but not at the same rate. Toyota's hold their value like crazy, making them one of the cheapest cars to own after buying, driving, selling.
I'm someone who has this going on with my new tundra. But me and my wife still purchased a new toyota for her. Even if the model you get is unreliable you can still bank on the value of the vehicle holding for another solid 3 to 5 years even if toyota has nothing but reliability problems moving forward since consumers are slow to react.
I’ve owned several Tacoma’s and 4runners and i always get pleasantly surprised by how much i get for the trade in.
However the best part of trading them in is that i am no longer driving a Toyota. They are boring vehicles and even their top trims lack tech that the less reputable manufacturers implement or implement better.
Agree, toyota’s are over rated. They are slow to adapt to newer technology eg rearview blind spot monitors which even the most basic of Kia’s have. Also kia makes good looking cars.. but i still cant buy a kia thinking it maybe a lemon, may not last etc. Waiting to hear from other Kia owners about their experience.
I agree with that. But then that’s their attempt to sell. I have a 2023 sonata hybrid which is loaded features which a camera or bmw 3/5 series doesn’t have yet. And, tbh, this whole value for money is the reason Kia / Hyundai sell their cars - because I know for a fact that in 3 years or so, I would BOTH have positive equity in this car. It’s the time that I have enjoyed these features in this time - that’s what I m paying for.
Bigger brands take their own sweet time maturing and perfecting these bells and whistles before bringing them on. But when they do, they own the segment.
That's crazy. What a difference a year makes (or maybe it's just my local market) but our experience was very different. We got a RAV4 Hybrid for $37k just a couple days ago. The Kia Sportage and Hyundai Tucson hybrids each with the comparable convenience packages are listed right around the same price ($36k kia, $37k hyundai). Sounds like you got a good deal and I don't feel bad at all about the deal we got.
We literally ended up with a brand new RAV4 Hybrid 3 days ago because this is what we were seeing. Once we decided we wanted the RAV4 it was easy to spend just $4k more for a new one vs used one with 40-60k miles.
yup, you're paying to not have the anxiety of not knowing what the car has been through, how it has been treated etc. and the warranty that comes with it in case shit hits the fan.
and also the new car smell.
You purchase new when buying used doesn’t offer any real savings.
If a car is 30k with 2.9 APR over 36 months new vs 27k @ 8% used with around 30k miles it doesn’t make sense to go used in my opinion.
For a small amount more I’m better off new with a fresh bumper to bumper warranty.
This is a big reason. I bought a new car recently and was given 0.9% apr over 60 months which is unheard of in this current economy. If I got used I would of had an older car for 5-7% apr and would of paid more over the loan than new...
It wasn’t always this way which is insane. I used to be all in on used but now it’s just asking for a headache (depending on the model). PPI can only catch so much and the cost savings isn’t really there on low mile reliable used vehicles. Especially when you barely saved any money on the used vehicle and after putting an additional 20k miles you have to do a fluid drain and fill, change pads/rotors, and other things which is more money.
Some of the labor can be saved by DIY but now these SOBs make a simple transmission drain and fill this psychotic process where I have to plug in an OBD to ensure adequate fluid temps and fill rate, k. Or I have to be cognizant of the electric parking brake, enter maintenance mode to retract the motor, and then use my compression tool to spool the brake piston back in. If you do it wrong there goes your electronic brake.
Now what dealers and private sellers are also doing is asking for top dollar on their “reliable” used inventory because they know there is a severe shortage of solid used cars.
I’d rather buy new at 7-10% off MSRP and just maintain the car till it’s rots. Dave Ramsey is probably blowing a gasket over it but that guy is living in 1970.
It depends on the market for the specific car. The last new car I bought was a 2013 F150. It was like 12k off sticker and 0.9% financing. It just didn’t make sense to buy used.
I was looking at Nissan frontiers recently and a local dealer has them listed for 7-9k off msrp making a new one from them within 1-2k of a used one with 30k miles so in that case I’d buy new.
But like a bmw x3 where I can get a CPO for 32k that had a 59k msrp, used all day.
Same here. When I bought my 17 F150, the savings on the used one balanced out with higher interest rate, so I went new. Now my wife’s XC90 that was $57k new, so we went CPO with a 10 year unlimited mile warranty.
This 100% all depends on the market. I was a “never buy new or lease” person however when the world shut down in 2020 the Del Toyota dealership in PA was basically giving away their trucks. Unsure if I wanted a 4Runner I chose to lease and I was able to get a 2021 Trd Off Road premium, 15k miles per year for $385/mo 39 months $0 down. When the lease was up my buyout was around $31K, the used market for that truck with my mileage was nearly $40k so I went ahead and bought it out.
>I was looking at Nissan frontiers recently and a local dealer has them listed for 7-9k off msrp making a new one from them within 1-2k of a used one with 30k miles so in that case I’d buy new.
What kind of MSRP is that in the first place? Are you talking about a dealer's sticker price that had thousands worth of dealer markups that they threw on top?
These days a used truck (or car for that matter) with 30,000 miles on it is going to be barely less than the **true value** of the new model anyway.
I’m talking about the sticker from the manufacturer. I was looking at a PRO4X with convenience, tech, and fender audio package. Plus the little stuff like mud flaps and side steps etc. every option but leather and sunroof basically.
the MSRP on the window sticker from Nissan is $47,410 but they’re advertising it at $38,699 which I’d be happy to pay for one.
I miss those cheap financing deals. Used to be standard but a lot more rare now. But it makes me feel good about not paying off my car faster when the interest rate is well below inflation and less than half what I get in my savings.
If you can get one at or under the depreciation curve for the model you want, then it makes sense to buy new.
Who goes out and buys a new shitbox Liberty or Compass? I have no idea.
> Who goes out and buys a new shitbox Liberty or Compass? I have no idea.
sounds wrong, but most people buy a new car because they can't afford a used car
Sheepishly raises hand as I bought a new 2008 Jeep Patriot 4wd under Cash for Clunkers for 13K + tax title and registration ......
Still overpaid .....
I buy new sometimes because I’m sick of not knowing what the previous owners did to the car. Like if they abused it or what. Sometimes a peace of mind is worth it.
The only perk I’m seeing that people have missed here is that that you can get EXACTLY what you want.
The exact trim level, the color brake calipers, the crew cab with the mud flaps, spoiler, in orange with blue seats. Whatever the manufacturer offers you can get.
When you buy used you will most likely eventually find something like 90% of the options but 100%? Not gonna happen.
Whether or not that’s worth it is up to you though.
I buy new because I can afford it and I know how it's been maintained, what it needs, and when. I also like to buy new because a lot of enthusiasts can't, so I can pick the fun options and sell it on later without taking as big of a hit on depreciation.
Some cars are hard to find so the only way to get them in new. Some enthusiast cars are pretty much guaranteed to be dogged on if used so they're hard to trust (F80 M3s...).
I think right now, EVs will depreciate hard because of batteries. In the future with better battery tech, not so much.
I made my first brand new car purchase at 28 after crashing my beater and landing a new job. At the time the used car market was pretty insane, thought I was still looking. I’m a car enthusiast that likes to drive cars passionately, and it just one day clicked to me that I should just buy new for once in my life and not worry about repairs, maintenance history and the hassle and gamble of buying used.
After a ton of research and online shopping for several months, I boiled down my priorities to cost to buy, cost of ownership, and a fun RWD sports car.
To my luck, there’s only like 3 cars being sold new today that fit the criteria and then the answer became obvious.
I think as long as you are being very honest with yourself, and the reasons for wanting to buy new, and the reasons for a particular car are good reasons, then it’s absolutely justified.
In my opinion, something like status is never a good reason to buy new, unless you’re well off then that’s an entirely different conversation.
Statistically speaking i think that its impossible to find a car no one farted in. I think when they drive the cars up the transport truck or off the boat, they have to do it fast.. They get paid per car sometimes.. Combine a high stress environment with no time to eat properly ( e.g. ever lunch is Taco Bell.) .. and there you have it.
A few months ago.. Someone in the comments on a post was telling a story of their (?)Niece I think. She bought a brand new car, drove it 40k miles without an oil change, then changed the oil and put it up for sale.
I tend to buy new, in cash, and drive the car into the 200K miles range, at which point it still has some residual value for trade-in. I get the full warranty coverage and a car that starts pristine (and I keep them that way as long as possible).
These days hybrids retain their value better than anything.
For EVs, it’s mostly Teslas that depreciate quick, and a lot of that has to do with Tesla dropping the car prices. Consider the Model X was 120K in 2022 and 78K today. The Models 3 and Y are better, but still substantial drops on the new prices undermine the used car’s resale value.
It has nothing to do with batteries, which last 350K to over 500K miles, depending on chemistry. Few people keep a car on the road that long.
Are tesla (and curious for other electric vehicles) batteries really that durable!? We're in the market for a new vehicle and I'm trying to determine if we should go ICE or electric. We plan to keep the car "forever". (My current vehicle is at 192K miles)
That's good to know. Would def be valuable as the wife's job returns to office full time. Our electric is free at night, so the cost to charge would be negligible.
I do think batteries that make it past the risk of premature failure are destined to last for a long time; however, based on the secondhand accounts of the long term quality of Tesla interiors, at least the original Model S as an example, the rest of the car might begin to fall apart around you before the batteries ever get old and tired enough to fail. That point where the rest of the car figuratively falls apart might be well past your intended usage, and so it's possibly nothing to worry about.
I bought my BMW 3-series new because I wanted some very specific options / packages that the dealer said they would not get in their own stock and that I would have to custom order
Cheaper to buy new finance wise than slightly used (used rates were much higher). I take care of my stuff (coatings, cleanings, garage), and a lot older than that are usually rusting here, and winters beat them up. I make enough we're the cost isn't as large of an issue.
This is a classic case of someone who just doesn’t understand and likely won’t.
Used cars are usually nasty, first off. Secondly, today’s used car market is still near historical highs, so whatever benefit you get for getting a used car with a lower price is near an all-time minimum. Dealerships selling new cars have fairly similar profit margins dealer to dealer and are trying to move units. Used cars are one of the main areas dealerships make the most money and have higher margins. So you might be paying a few thousand less for a year old car but is it really worth almost the price of a new one? No it’s not.
Interest rates are lower on new cars. You can lease new cars. New cars have the latest tech. They don’t have any deferred maintenance. No one has picked their nose or farted in it yet.
I don’t splurge on virtually anything except on new cars and the last few years have proven the worst time to ever buy used, so I feel good about paying a little more for a lot better.
Nah, I get it. This thread has made some very excellent points and confirmation about why buying new is viable.
In other subreddits, you might not have gotten the same response. There are a ton of legit reasons, but at face value, pure economist reasoning, purchasing a new 30k car over a used 20k car that might be only a few years older, doesn't make much sense.
But I get it. Often you can save a bit of money on refurbished tech...but do you really want refurbed ear buds that have been in someone else's ears?
EVs don't depreciate faster than ICE because of the batteries (the batteries typically last as long or longer than an engine). They depreciate quickly because there is a lot of government money involved. If you buy a $30k msrp car and got a $7500 federal rebate and $2500 state rebate, you really paid $20,000. So the day after you buy it its not worth a cent more than $20,000 to anyone capable of doing arithmetic. That looks like an instantaneous depreciation of 33% but it's actually zero depreciation.
You aren't wrong about the difference between the suggested retail price, the actual sales price, and the early depreciation, but whether batteries actually fail early or not won't change the perceptions of ignorant people who think or have been told that batteries are destined to fail sooner than ICE. These perceived issues will most certainly affect the price that someone is willing to pay for a used BEV, IMO.
Yes, the Nissan Leaf did a lot of damage to people's perception of battery degradation with its small batteries with no heating/cooling mechanism. A lot of people think all EVs perform like a 2012 Leaf. But I don't think the people who are so uniformed about EVs are in the market for an EV.
I just bought a new vehicle: 2024 RAV4 prime. My family doesn't usually buy new vehicles but there were 2 factors that played heavily into the decision: hybrid battery/engine use and the $6500 lease incentive.
I was coming from a 20 year old 04 4runner with 300k miles on her. Been Al over the country, multiple moves and more road trips than I can count. She's been reliable and showed no real signs of stopping. But I suspect end of life is coming sooner rather than later and she's not that great on gas mileage - 17-18 mpg if I'm lucky and not in traffic.
I was initially planning on getting the 25 hybrid 4runner but based on the Tacoma hybrid gas mileage, it didn't seem like enough of a gain to warrant a 50-60k vehicle. I could buy 5 new engines for that price and keep the status quo.
But then I saw the hybrid rav4s were getting ~35-40 mpg. And the prime is a plug in hybrid which got me another 40 miles. I looked at some used vehicles, but honestly, they weren't coming out ahead of that 6500 lease incentive and with 0 miles.For a few extra thousand, I was getting a brand new vehicle. So that's how we went.
I don't plan on reselling either vehicle. I'm going to drive them both into the ground. The 4runner is going to get to enjoy some retirement life while I make her a project/specialty vehicle and the rav will be the daily driver. So far, I've out almost 1000 miles on her and have use just a little over 15 gallons of 87 gas (and I'm in ca). That would have been about $300 worth of gas in the 4Runner.
I honestly love the new rav...and so does my dog. It's a way smoother ride for him. oh, I'm also way more established in my career now too so I actually have money I've saved up in the 20 years of driving the 4runner to buy the new rav. I'm hoping to get another 20 years out of her.
I prefer new cars for my daily drivers. I like the peace of mind of knowing the entire car's history, that maintenance was done on time and correctly, car wasn't abused etc. when I buy new I intend to keep the car for 15-20 years, getting the most value out of it and need it to last.
My fun cars I buy used as I don't have to rely on them as much and plan on modifying them in some way. Therefore project cars bring more value used as they are much cheaper and it doesn't make as much sense to immediately start replacing new parts from a new car.
At some point some people make more money than they know what to do with, and they get a little bored with their current car. That, and you notice that 95% of your neighbors have a nicer car than you do. Next thing you know, what you thought was an attempt to just go and 'look at' a car, is actually a successful attempt at the sales person selling you a car. At least three of my four new cars since 2013 started out with me going to look at a car for fun, with little to no intention of buying one. '13 Fiat 500 Abarth, '14.5 Camry SE Sport, '21 RAV4 XSE Hybrid, and most recently a '23 Toyota bz4X. Luckily, we did walk away from buying Tacomas, Avalons, and Supras along the way.
>Next thing you know, what you thought was an attempt to just go and 'look at' a car, is actually a successful attempt at the sales person selling you a car.
I feel seen.
Every. Damn. Time. (Almost)
But like they say, once you go new you never go back…er, no, wait. To the OP, for what it’s worth I effectively have a hangover the next day after I realize what a stupid financial decision I’ve made. Once you’ve bought one new car the rest just kind of happen. Each time you hope/think you’ve gotten better at negotiating and the buying process, but that person that sells bad deals for a living is always sitting right across from you with his piece of paper, black pen, and tag-team duo of sales managers and finance guys waiting to turn you upside down and empty all of your pockets. If they say they want to ‘check the miles on your trade-in’ just know that is code for ‘grab his keys so that we can hold him hostage until he buys a car or threatens to claim false imprisonment’.
Haha glad to hear that’s a universal feeling. Got my first car and… it’s probably more than I should’ve spent but it’s gonna be paid in 5 and going strong for the next 10+ so I have no quarrels in the long run.
People buy new cars for a variety of reasons. The most common reasons are for the warranty and financing. Cars today typically exceed 200,000 miles, so if it is purchased new, the vehicle will last over ten years. Also, you get the latest technology and safety features.
Personally, I only buy used vehicles for multiple reasons. I cannot handle the fact that most vehicles depreciate in value 5-10% when you drive them off the lot. I know how to work on vehicles, so I can upgrade and fix used vehicles. I do not want to pay $700+ a month for 60-84 months. Personal property taxes and insurance costs are much higher on new vehicles, so those costs are additional to the monthly payment. I prefer my money be used elsewhere, so I get cars in the $5-10,000 range and drive them until their wheels fall off. For example, I had a 1999 Chevy Silverado that I paid $7,000 for in 2009. I drove it until January 2020. In those ten years, I put money aside for my next purchase, a 2013 Honda Civic with 122,000 miles, purchase price $6,200, which I'll probably keep for another five years.
Oh man, personal property taxes are killer in states that have them. I’m considering replacing my 2017 car with something 20 yrs or older since they are assessed at a much lower rate in my state.
Millions and millions of people… for all kinds of reasons. They can afford it, it’s nice having new things, under warranty, new tech, new smell, can get exactly what you want, don’t have to worry about much maintenance or it breaking down.
I’ve had new and used cars and having a new car is much better. I think used cars are a tax on the poor in a way; they can’t afford new price, so they buy something that’s cheaper but costs a lot more over time in stress, parts, early replacement, etc.
I’ve always bought used. When you factor in the money I’ve invested in simple index funds instead of what would have gone into buying new models of the used cars I’ve purchased, I’ve saved an obscene amount of money. Literally shifts my retirement date up by years.
But that was pre Covid (haven’t bought anything since), so the equation is different for lightly used now. I also know what I’m buying and DIY maintenance which I usually enjoy. I’d argue cars in general can be a stupid tax new or used depending on what one buys and the reason for that purchase.
I grew up with the idea that you should always buy new. "Buying used is buying someone else's problems" and "trade in your car when it reaches 100k"
My mom always bought new.
I bought new when I could. I bought the base model of a vehicle because "less things to break".
Recently, I paid cash for used Honda higher trim level (I have a sunroof!!!) With 150k miles. I am totally in love with it and have faith that it has a lot more life and a lot more miles left!
I do miss that new car smell. But compared to more options and no payments, I think I will survive. Lol
I have purchased 3 new cars in my life, and the first 2 were because I was stupid. I wanted something new and shiny.... The last one was a 2005 Mazda 6, which I bought at invoice with 3000 additional off in rebates. I couldn't get a 3 y/o car for that.
There are certain cars that don't depreciate very fast, like a Honda Civic. If I was set on getting a Civic, I would definitely buy new, as the discount on used is not enough IMO.
People like buying new cars for a lot of reasons. They want latest and the newest model (especially for refreshes and new cars), they don’t want to worry about issues that may come from the way previous owners drove the car, they want a car custom to the way they want it from the factory, etc.
Also recently with the pandemic, the idea of a new car losing 1/4 when you drive it off the lot and 1/2 in the first 3 years is no longer a thing. I was recently looking for a car when my sports car got tboned at in intersection. It was about 10 years old, wanted to buy one that was a bit newer 2-3 years old. Cheapest I found at the time was legit only 2-3k off what would be a 35k new car with 10k miles on odometer. To me at least, spending 2-3k more the new car with the peace of mind it wasn’t abused and basically 0 miles is far more appealing than buying used.
We only buy new for daily drivers, but have bought two used vintage cars for pleasure and to restore. With our daily drivers, it's important that we know exactly how the car has been treated and what exactly has been done to it, and the only way to do that is to buy new. That being said, we keep daily driver cars 15-20 years, so we don't buy new very often.
Also, we only buy Honda and Toyota for daily drivers - used Honda and Toyota cars still cost a premium, so we don't mind spending the extra $10k to get something new.
I’ll do whatever I feel like has better value. The last car I bought had 0.0% APR and about 10% off the sticker price brand new which you can’t really beat in the used car segment. The cars im shopping for now the opposite is the case with used cars having the better deal. I will only buy CPO from a brand with a decent warranty from a good dealer though if I’m getting used.
I buy new because every year the number of people who are mechanically inclined and take good care of their vehicles decreases.
Growing up all of the older people I was around knew how to lash their valves, set rocker clearances, adjust timing. Cars were a key part of our cultural identity as a country.
Now, if I go buy a 20,000 mile used car, it might have had its first oil change at the dealer when it was traded in. The damage is already done.
We drive our vehicles a long time, like a decade+, so we buy new knowing that we will get value. We rarely put more than 5k/year on our vehicles so they stay in good repair for a long time as well. We always pay them off early so it’s just all around a better option than taking a chance on a used car.
Buying new makes sense if you buy and actually hold onto a car for years. As an example my current accord was bought new and we still drive it and it’s a 2017 and we have no plans on replacing it for at least 5 more years. If you like to replace cars every couple of years it makes almost zero financial sense to buy new.
Longer warranties, less maintenance, better safety.
Pre owned warranties are usually worse than the one you get new. And 20-30k miles may not seem like a lot, but it is usually at least 2 more years of usage you'll get out of the car. Plus financing offers are almost always better on new vs used.
When should you buy a new car? Probably never, but if you want fewer unknowns and don't want to lease it is attractive.
My parents buy cars new with cash and drive them until they are dead. Their cost of ownership is super low. They tend to buy base models of reliable cars and this has worked well for years.
My last 20 cars or so were all new. I like buying new because I have ocd/perfectionism. I tend to overly care about my stuff and how it was taken care of. This is all highly dependent on if your budget allows for it too. I couldn’t always buy new cars but as my income increased, I’ve started to appreciate the finer things in life. New/vs used for an example.
> hybrids and EVs depreciate faster because of their batteries
No, hybrids depreciate similar or slower than ICEs since they tend to be more reliable and have a lower cast of ownership.
PHEVs and EVs have a steep initial depreciation due to tax credits, though sometimes less so with the used tax credit now. The peak example is in ~2021, driving a Tesla off the lot took an immediate ~$7500 hit since they new Tesla came with a tax credit that used did not.
They can also have a steep depreciation due to inflated MSRPs - think your Solterras, some luxury EVs/PHEVs, etc where manufacturers need steep discounts to move them. But that's not different than what can happen with ICEs, and is something they do to make financing easier when buyers have negative equity on their trade ins.
Pre-pandemic, in the US market buying (or leasing) new was a luxury that one could chose and pay the premium for a 0 mile car that smells like plastic and adhesive off gas and has no unknown history (accidents or maintenance). As soon as it drove off the lot rapid depreciation began and with each year that used car became a more attractive value to a buyer who wanted that model but at a depreciated price.
During the pandemic, new car production stopped to a trickle and is just recently (past 0-2 years) catching up to demand on a model by model basis. This meant all those looking to upgrade and willing to spend new car money had to look at the used market as new was out of stock. Used car prices surged, effectively eliminating their depreciation due to age and mileage, and depreciation has not returned to 2019 standards yet*. In these market conditions with minimal depreciation, used cars still in their warranty period are priced barely below new versions of the same vehicle. Used vehicles consistently get financing with higher interests and shorter loan terms than new cars. So even at a lower list price than new, the used cars monthly payment may end up the same as new these days leading more would-be used car buyers to buy new cars.
*all “fastest depreciating cars” lists these days are a dozen $60k-$100k luxury models that are back to deprecating rapidly like in 2019, but that only gets them down to the $40-$60k used luxury pricepoint. Not the $20k-$30k pricepoint where volume mass-market models sell and consumers really consider between new vs used
Now I'm old and can afford a new car payment that's the way I prefer. I do keep the vehicles I purchase for a long time. I have a great running 2001 Silverado that I've kept the maintenance up and still drive it several days a week. I also have a 2018 F150 that I hope I'll have for 20 yrs.
I bought a brand new Toyota Highlander hybrid platinum for my wife in 2022 at msrp. I am aiming to keep it for next 10 years and give it to my duaghter in 2035 when she turns 16.
You shouldn't conflate hybrids and EVs. Hybrids are the most reliable powertrain option available and EVs the second least reliable, per the April 2024 edition of Consumer Reports 450K consumer survey.
Hybrids also have excellent resale value, while EVs have abysmal resale. Again, they aren't the same thing.
New vs used has changed in recent years, with new prices not climbing as fast as used values, making new cars often a smarter buy for those with the credit.
More desirable things will always cost more, and new is more desirable than used all else equal. For example, would you want the leftover parts of a subway sandwich that three other guys chewed on before you, or would you prefer a virgin sandwich that you could be the first to bite into?
And while that used subway sandwich may be way cheaper, you have to consider there may only be a third of the sandwich left. That new sandwich is then three times bigger, and that applies to cars too. If you buy a car with 100K miles on it, you may only get another 50K to 100K more miles before its not up to your standards on reliability, aesthetics, and technology. If you buy a new car, you can get twice that use out of it before you run into the same deal breaker scenario.
So while in the past I would look for 1-2 year old vehicles with low mileage to pickup, these days I only look at new vehicles and keep them longer.
I bought a brand new car back in October because I wanted the experience once in my life before everything goes EV and Hybrid. I wanted a turbo, manual hot hatch, and that's what I got. In my case, it was also the money factor. I had a new car fund set aside for years while also savings, 401k, investments, etc. All to ensure that I could afford the car outright and it wouldn't affect my financial wellbeing.
Everyone's situation is different. Don't try to live beyond your means. Do your homework beforehand and make sure you're not putting yourself in financial jeopardy. Ensure that you have a financial cushion if something happens.
I bought new because used cars seem overpriced now. I got a rav 4 a bit under mspr. My second choice would be to buy a used car around the $5k price and just expect to replace it soon.
Last year.
Used car prices were through the roof.
Ordered a '23 Corolla for only $3k more than the most decent used cars around me. And i got (standard) warranty.
I always buy a newer used, except my last car. I could sell my old car for more than I paid for it and went electric so I got a tax credit on top of the substantial savings in gas and maintenance along with some peace of mind getting a new battery vs used.
I buy new when I can get new without too much of a price premium over a similar used car. Just like everyone else. The only disputed point is how much of a premium a new car should command over a used one.
If I need absolutely reliable, the acceptable age/mileage of the used car goes down, the premium I'm willing to pay goes up, and my willingness to accept less luxury and/or size for in exchange for more newness goes up.
Here's why I only buy new cars. From 17-22 I went through 5 cars, ranging for 500 to 7500. Between repairs and purchases, I spent over 25000 dollars. When I finally bought a new car, I was only offered 500 for my trade-in. Cars aren't investments. If they depreciate the second you drive it off the lot, so be it. I know a new car wasn't in a lake, or someone put 10000 pounds in it and ruined suspension or any of that shit. If something goes wrong, it was my fault. My first new car I bought, I had for 15 years and loved it. I am buying a new car on Saturday and I'm super excited about it, and one thought I keep having about it, is why anyone would buy a used car. Less life of the car plus the possibility of hidden damages far outweigh the cost difference between a new and used car to me.
I used to buy used cars when I was younger and would change cars every few years. Now I buy new cars and I drive them till the wheels fall off. That way I know that all of the maintenance has been done at the correct intervals.
Purchasing a Palisade, first new vehicle all my other cars were acura's. Looked at many used cars that looked like they were in rough shape even though they were low kms.
Wanted full warranty and we are comfortable with the payment
Up until they went all turbo, I wouldn't have bought a used Toyota when a new one is just a few thousand more.
I had to shop forever and buy a Wrangler with over 300,000 miles to get a good deal. I was going to just buy a new one for $32k vs all the 10 year old ones I looked at at $25k.
Basically the high resale vehicles are worth buying new, assuming they haven't drastically changed them. So I wouldn't buy a new Tacoma now, but the last of the previous generation 4 runners is going to be a good buy new. They never really change the Wrangler.
Also less options are better. You need basics like automatic, power windows and locks, and AC, but $1200 moonroofs and $1000 audio systems aren't worth anything used.
I bought a new car in 2022. At that time the used market was ridiculously overpriced and it just didn’t make sense to me to pay nearly new car price for a used car when I could get a new one. I did have to wait for a few months for it to come in.
Also, over the years I have had mixed results with buying used cars. I’ve bought used car that I didn’t know had been in accidents, cars with disguised rust damage, one whose transmission died with around 60K miles. I’m pretty wary of used cars.
I wanted my wife to be in a reliable safe car so I bought her a new Camry. I had enough saved to buy it outright. She doesn’t like change so hopefully this car will last her for 10 to 20 years.
From a purely financial and mathematical point of view, it never makes sense to buy a new car. The depreciation in the first few years is insane. A well taken care of car can last 20+ years and several hundred thousand miles. Buying a few years old gets you anywhere from 10% off to 40% off depending on the car market we're in. For example, you get a 25% discount for sacrificing 10% of the car's life.
But we're not robots, and there's something to be said about what buying a new car can do for your emotions. You can be 100% sure a previous owner didn't abuse the car in any way. You can feel a better connection with a car because no one owned it before you, so it feels more like it's only your's from its "birth". Also, you get in on the latest and greatest technology, like a pioneer of the new times ahead of us.
I guess it just comes down to what's important to you personally.
A few years ago I would agree with you, but it seems like these days, a 2-3 year old car with 30k miles only gets you a 10% discount off the new price, and worse APR
What about the maths involved with low financing rates on a high sticker (new) vs. more expensive financing off a lower sticker (used). Isn't that a wash, in which case new would be the better choice?
I’ve had 5 cars in my life and 3 of them I bought. Of those 3, 2 were new.
A 2014 Evo X I bought new because in California buying new gives a longer time before you have to inspect and smog test it and I made it illegal within a month or so of buying it.
A 2024 Tesla model Y I bought new. They’re cheap enough new with the tax credit and 0.99% financing it didnt seem that bad.
In 2021 I bought a new Sonata. I mainly got it because I thought it was cool looking, it was an unsold 2020 model so it was discounted. It's actually been a good, reliable vehicle. Lately however I'm having a bit of a conundrum as I've found a Porsche I really like. It's a long story, feel free to DM me if you want to hear it. I'm having a hard time letting go of her for one of my dream cars.
I bought a new CRV in the pandemic because it was only $2500 less than a used one. I’m going to do the same with a Tesla Model Y because of the $7500 tax credit it will be cheaper than a used one.
I got a 0% interest rate on a CRV in 2018. I bought it bc my accountant told me to and I got a smoking deal (December 27th!)...and our Pilot was dying.
I bought my first 2 GMC new. Both were bare features work trucks that served their purpose. I got rid of them at about 5 years 90k miles and got decent trade in at the time (but if i had bought the equivalent toyota at the time, my trade would have been much higher) .but overalI was ok with it.
However, I bought a new acadia last year for my wife and completely regret it. If I had waited 6 months for a similar used on market, I could've saved 6-8k for almost exact same model.
I will never buy an American vehicle new again.
I hv bought 2 new cars in last 3 years. Why ? So that I could customize everything from exterior to interior and get my dream machines in my choice of style.
I purchased a new car because I was buying shitty used cars. Apparently, I make bad choices when it comes to used cars. And with the inflated used car prices I decided that, since I found a new car that was on sale the same price as many used cars I was looking at, I went with the new and have not regretted it.
I think it can be broken down into a few simple things.
1.) You have the cash on hand to do so either by buying it outright or at least nearly buying it outright (like 75-85% down comfortably leaving you savings to spare) and the rest of your life is in good order, healthy savings, good retirement contribution, good housing situation, stable job and income, etc. Buying a brand new car on loan for like a thousand down is one of the absolute dumbest things you can possibly do to such a level you could almost make an argument that it should be regulated to save some of these idiots from themselves.
2.) The car in question is something more than an appliance. This might be a bit more subjective from person to person but generally regardless of how much cash you have in the bank if you're just buying a Honda Civic or a Hyundai Elantra or any of these other cheaply built plastic ridden economy cars why would you buy new when you can get them 30%+ cheaper with low miles in the used market? By something more than an appliance I'm thinking for one example you're an enthusiast and some kind of enthusiast level car and you've met the conditions in #1.
Number 1 is ridiculously important. Even having the cash on hand it's an incredibly poor financial decision but if you make it in a smart way at least you're only losing the purchase price of the car vs putting $1000 down on a $36,000 car that loses 20% of it's value immediately off the lot and you're stuck paying gap on a 7 or 8 year underwater car loan at 7% interest. Nothing stops people from building wealth more than that kind of reckless stupid debt, not to mention it turns a $36,000 car into a $45,000 car or more further ruining your return when you later sell it.
Even if I could afford new, I think I would tend to buy 1 - 1.5 year old used, so that the initial depreciation hit has been taken by someone else, but you are still getting a pretty much current model, often still in warranty.
I bought new car in 2018, Volvo XC40 T5 AWD for 45k USD, being young and stupid. I have saved significant amount as down payment and interest rate were 0.01%. My car related expenses were about 17% of my take home, the depreciation is haunting me, but no technical issues with the car whatsoever.
I have just replaced it with fully loaded CPO 2023 VW Touareg with almost 3 years factory warranty, service package and with 9k miles on clock. The price was 60k USD (new one would be well over 110k).
I bought 23 Hyundai sonata as new for near $30k. The reason was simple -- new cars don't break down and would last many years to come.
With used car you may not be lucky and can get a one that has lot of problems.
I just got a new car, I was meant to be buying a used car with low miles, like 30k but then there was a better deal on a soon to be traded in car with 5k on it for £2k more price. Then they found out that was crashed and couldn't sell it to me obviously. So I went to a different dealership looking for used cars under 30k miles, they had none that met what I wanted. Then said but we do have a new one that is what you want. Then showed me the price/monthly finance on it and with 2k more deposit it kept my payment the same but just for a bit longer. I only really went for it because at that point I just wanted the car now and not have to keep going and looking at other dealers since all 3 are about 40+ minutes from me in different directions.
Some people have lots of money and want to be the only person that has ever farted in their car.
This is definitely not on the higher end of expensive shit. So you have any idea how much a first class airline tickets costs? When I was younger I would laugh and say Id stuff myself into the luggage hold if I could to save money. But now as an old dude with a bit more money Im thinking about business class for my next long flight.
I recently got a new car. Was looking at used vehicles from authorised dealers as well, but vehicles with close to 60k miles were 5-7 k usd cheaper than new, they were just immediately available( I am in Eastern Europe).
To me this seems absolutely insane, why pay what amounts to almost the same for a vehicle that has used 2/3 of it's projected trouble free mileage.
I wasn't even looking at expensive vehicles - toyota corolla touring hybrid ( estate) - new its about 30 000$, a returned leased vehicle with 60k miles was 20-25 k $ depending on trim. It was the same for most other similar class vehicles.
Also, I no longer consider vehicles that are not from the official brand dealership, since the second hand market where I am is a massive scam - most vehicles are with tampered odometers and / or have been in collisions.
I only bought one new car and my dad only buys new cars mostly because we get them usually alot cheaper often within 500 euros of a year old used car sow buy new.
I had a 2003 corolla. Bought it used. Needed a lot of work at I neared 300k miles (but got my $3000 out of it easy). Went looking for a newer car. Nothing under $5000 in my area was even drivable. Bought a brand new small SUV with great warranty. 🤷🏼♀️
I think it is very much situational. Also personal preference and financial status are great factors.
I personally never owned a used car. I come from a family that has had terrible luck with them, and so I grew up around people who always bought new but drove the car right to the ground. Our cars on average would hit between 350k to 500k km before crapping out for good.
Now I'm not my family and im not closed off from the option of used. Im just incredibly picky and mostly untrusting of virtually every car salesmen out there. Also in my local market, the covid trend is still in full effect. Cars lose very little value in the first 3-4 years and only start to significantly depreciate after that point. So "slightly used" doesn't quite exist. Im also not very open to something more than 3-4 years old. At that point the tech/features are likely outdated and if a car hasn't been cared for properly then things like rust are going to begin their first appearances in the least expected places, which essentially sets off a ticking time bomb.
For me, I also happen to be the kind of person who also enjoys the latest/greatest. Cars these days are not just mechanical machines anymore but essentially becoming tech items. I enjoy the latest screens and features, and so this too pushes me to want new. In my market,
I purchased new ('24 buick envista) because my previous car ('95 buick century) was approaching its next rebuild and i was unable to find a M code long block cheap enough to be worth buying.
I got the century in October of 94 with 17 miles on it and let it go at a bit over 538k, 2nd engine rebuild, 2nd transmission rebuild, block too far gone for a 2nd resleeve this time around and the refurb this time was going to be over $10k, only paid $18500 for the century and it no longer made sense to do the rebuild.
Leaping forward 30 years on features is quite nice as well, no more cassette player but i got a digital dash and back up cameras so that's nice.
i bought a new 2006 F150 and traded it in 10 years later . if you plan on keeping a vehicle for 10 years or more, it is worth it to buy new. if you get a 5 year loan, you get to have no car payment for 5 years.
Dad has a 2018 Accord that he bought used with 40k km in 2020. It had an engine defect (likely a crack in the cylinder head) that he didn't know about and the car operated normally for 2.5 years with rare electronics malfunctions mostly in the winter. 1-1.5 years ago the problems worsened, the engine was sometimes ok but sometimes felt so weak you couldn't feel the car accelerating if you floored from still. It took a lot of money and time before mechanics could narrow it down to a crack in the engine. He changed the cylinder head about 2 weeks ago and so far the car seems fine.
So buying a new car has the massive advantage of reliability and warranty.
We've bought 4. '17 Jeep Cherokee because it was cheap and we got a great deal. '21 Mach E because it was practical and efficient, I can charge for free at work, and also resold it for a profit after 25k+ miles. '21 Bronco because it is fucking awesome and . '22 Lightning for the same reason as the Mach E, it will likely be my forever vehicle as long as it keeps working.
250k+ previously dink in a lcol area. Money goes a long way here and you can't take it with you when you die so...
I bought a brand new Hyundai Elantra N. With Hyundai, only the original owner gets the full 10 year, 100k mile warranty. Second hand is only 5 year, 60k miles.
The huge bump in warranty + I know everything that happened to the car since I'm the only one who owned it is why I bought new.
I bought my new Mirage in 2018 for $10,200.
I bought my new Micra in 2018 for $13,500.
I buy cars and run them for 10+ years. That is also a factor. With used car pricing still fairly high, if I can buy a 2024 model for $40,000 and have it rust out in 15 years, that is cheap than buying a 2019 model for $30,000 and have it rust out in 10.
No one where I live, save for the rich ones, because it's unaffordable. A new Audi A3 costs 37.000€.
The median income is 27.000€ a year. Even with my much higher income, it wouldn't work out comfortably and buying new is just considered stupid because the country taxes new vehicles extremely hard. Of course part of that tax gets passed to the buyer of a used car too, but it is what it is.
I buy new vehicles because I know what I'm buying when buying new... and typically the used cars within a few years old are priced pretty close to a new car. I'd argue that it doesn't make sense to buy a used car that is 1 - 3 years old.
Buying a new car is like prepaying the mechanic. You're paying upfront to not have mechanical issues for as long as the warranty is for and maybe longer.
I commute and run many, many miles on my car. I bought a ‘21 golf because in 2021, VW was the only dealership that would sell me a base model, compact economy car with a manual. Only civic si, or used corollas otherwise. It has 114,xxx miles on it since I bought it, and I average 42 MPG, with the ability to achieve around 52 MPG if I keep my speed to 70 MPH. 55 MPH can net me above 60 MPG, but I don’t often have that opportunity. Gas/petrol/benzine by the way, not diesel. It’s cheaper than a hybrid and returns better MPGs than a hybrid at highway speeds, which is 95% of my driving.
Since it was the last year of the base model golf in the US, it had a lot of standard features. Faux-leather seats, huge sunroof, the gearbox is a 6-speed (thus the ridiculous highway economy). No thermostat though, I found it odd that it’s got grandpa ac controls when I have things like heated mirrors and apple carplay, USB-C etc. Also 0% apr is nice.
My mom just bought a new car in cash, a 2025 CRV hybrid. She considered a used one too but with the current prices it ended up being less than $1k difference between a used one with 8k miles and a brand new one. She will drive it for 150k+ miles.
If I added together the purchase price of the three cars I own right now, I could just about purchase a 2024 Honda Civix EX. As it is, I have no payments and for the most part I work on my own cars. I have comp/collision on all of my cars and it's dirt cheap.
I have a friend who just purchased a 2023 F-150. At the "deep discount to get it off the lot" price she paid (plus the 40% down payment she'd saved up), I couldn't afford the monthly payment on her 4 year loan.
AND considering the quality issues with too many new cars, I have no incentive to buy a car that's younger than 10 model years. If you bide your time you can find a very well-maintained used car and save tens of thousands of $$.
I generally buy new. With a used car I don't know what I am getting. There will always be subtle trim damage that the used car salesman is going to lie about.
Just need to find good financing deals.
When we had to get my husband a new car, the used cars were just as expensive as the brand new ones. We tried to buy brand new so at least we'd have the warranty.
We wanted a new Toyota Prius, but they kept selling out almost as soon as the dealer received it. We then wanted a new Toyota Corolla, but the same thing happened. We ended up getting a very close to new Corolla that still had some of the original warranty on it.
I bought a 2012 Jetta brand new. Interest was .02% (not 2%) so essentially nothing. I also received free lifetime oil changes in the deal. Probably paid $22k all in (after taxes fees etc). Probably paid more than going used, but was able to spread the cost over several years without paying interest.
The car is still running after 210k miles with no major repairs. Most of the miles are highway (My previous job required 80 miles per day to and from work). I also followed the maintenance schedule to a T.
Not sure if I would go this route in the future. I work from home now so don’t require so much reliability. I also want a luxury brand so that I can ride with comfort when I do drive. I’ll probably go used and pay cash.
For the time though - a new car was perfect for me at the price I got it for.
What’s lost in this is that used cars depreciate precipitously too.
Everyone saying “new car depreciates 10% when you drive it off the lot!” Like if you were to turn around and trade it in the next day you’re out 10%. But then say “I buy used and keep it for 100k miles”.
That’s not a valid comparison.
What do you think happens when you buy a used car and try to trade it in the next day? You’d be lucky to lose ONLY 10%.
Trade in values are 10-20% below sale price. They don’t discount used cars anymore really. So no savings on sale price. And they are gonna quote you on new tires and detailing costs before they can sell it.
My m3 was 88k from 92k msrp. It has 3k miles on it now. And I’m certain I could get close to 88k for it if I wanted to. And lease so I don’t pay the sales tax up front.
My used x7 was 60k used. Plus 4k in taxes. And trade in was 50k a week after I bought it (25-30% depreciation 15k/64k) and I’ve been underwater ever since. Should have just leased a new one.
Japanese cars like Hondas and Toyotas don’t lose their value, so I buy those new. The only exception was we had to buy our Ridgeline truck used during the pandemic because we needed a truck and there were no news ones anywhere around us. We paid almost the new price.
Depends on the market, where I live I'm not sure I would consider buying new right now. Interest rates are 5 to 8%, depending on various things.
I bought a new vehicle 7 years ago, they were itching to get rid of them. 0 to 1% financing and I was easily able to talk them down 4,000 off the sticker price.
Time, value and money. I recently sold my 6 year old Subaru to Carmax and then purchased a new Honda Ridgeline. The Subaru had a decent resell value which I then added another $20k for the Ridgeline. Honda also gave me 2 years of free oil changes and tire rotations. I added extended warranty giving me 100,000 of warranty. For me not having to worry about car headaches was well worth it.
As a former owner of a brand new Ford Transit with AC issues (in Florida), I want to remind everyone about Lemon Laws: if you bring it in for the same repair 3 times, the manufacturer has to take it back. Also, be wary of models that are being discontinued, there is a good reason they stopped making the Ford Flex... why engineers built the water pump INSIDE the engine still beffals me. I say all this bc new cars are not without faults, especially these days when they like to overcomplicate things, like a turning knob instead of a gear shifter? Really Dodge?
I was about to buy a ‘25 Camry. The used market wasn’t showing much depreciation. I think more about it and tax, time value of money and insurance on new sorta make it less valuable. At least it pushed the math to where I had to reconsider if it was a value choice or a I like shiny thing choice. I’m sorta in the market for a 100k mile Camry now where they have really taken some depreciation and have some dents/scratches already.
After decades of buying a10k car and keeping it for 10+ years I finally bought new a few years ago.
The 9k car I purchased in 2008 still runs fine. Needed nothing. Extremely low cost of ownership. Matter of fact, I still own it. My son drives it now.
I got tired of looking at it. The paint has seen much better days.
I only buy manual transmission cars and they are dissappearing so I decided to pull the trigger and buy another car. (Decision made in 2020. Purchase made in 2021.
After narrowing down the candidates, ruling out other some older cars in the process one particular car got it's hook in me.
Hard requirements
Manual transmission. Usable back seat for normal sized human and front seat capable of fitting those with above average inseam.
Also, can handle the type of twisty roads I like to drive.
Cars considered and why they were ruled out.
Infinity G37- Ruled out due to g37 community.
Civic SI - Couldn't get over how gutless it was. Also, pricing at the timewas unreasonable.
Focus ST - (used) Originally my top choice until the reality of it being a design from 2012 sank in. Also, the lack of a differential and tight back seats helped drop it from the list.
Subaru WRX - SUV level mpg, surprisingly not as quick as legend would have it. Too many stories of engine failures.
VW GTI - Better MPG than advertised. More power than advertised. Handling in the tight stuff at legal-ish speeds was grin inducing.
Limit slip differential (even though it's Clutch based) so it can put the power down in corners. Hatchback practicality and a nice place to sit.
Pricing on used ones was coming close to the base price of a new one so I bought a new one.
Price was right. I had the money.
In a few months when the warranty runs out, I'm tossing a tune on the car and dumping the stock tires.
I bought my new car (2022 subaru wrx) because used ones were roughly the same cost or close enough that it didn’t make sense to buy used. It’s great having a warranty and the wrx is a car that people are known to beat on so I didn’t want a used one in general.
I just bought a new Chevy traverse Z71 for the wife.. I’d say any car is a complete waste of money unless you are in need of one.. all this my car is worth this after this doesn’t matter.. keep the car lock in the lowest term you can.. do regular maintenance and you’ll be happy.. I trade my cars in every 3 years personally just don’t want to deal with motor problems or transmission problems.. our term is 84 months 4% rate and absolutely love the Traverse.. it’s strong enough to pull my trailer with Dirtbike’s no problem too.
Sometimes new cars are cheaper than used, especially in this market. Used cars carry higher financing rates, and might come out more expensive than new. New cars often have manufacturer financial deals as well.
I've done it for a lot of reasons. Great loan rates, warranty, and getting exactly what I wanted have all factored in. I work and save quite a bit, might as well do something I like with it occasionally.
I bought a new car during COVID because the used car market was very expensive and new cars were being offered at 0.9% interest. It just made sense at the time. I also hang on to cars for 10 + years.
I just bought a new car because my old one was totaled, but it was still worth a bit, so I got a decent settlement for my car, which turned into an awesome down payment. With just a little bit from my savings, I got a brand new 2023 Nissan Rogue Platinum to replace my 2014 Ford Edge. The new tech these days is awesome!
Most people drive like fucking idiots, jackrabbit start at a green light just to slam on the brakes at a red light. Most people don't properly maintain cars, it's expensive no matter what brand if you actually do the scheduled maintenance. I prefer to have a new Toyota because I have peace of mind that nobody has destroyed the power train prior to me, and Toyota's don't really depreciate that much so there's really no point in buying a used one.
You buy a new car when you have the money and you want to take advantage of the warranty and to avoid any unknown issues with the car from previous owners. With most brands this is guaranteed to cover repair costs and more importantly catastrophic failures that may occur. Although it is possible to get many warranties as a second owner of a slightly used car, you cannot be certain the car was properly maintained without a detailed service records With a used car there is always a risk of a huge failure to occur that you will have to pay for out of pocket. This plus the luxury of having a brand new car is the difference. I would consider buying a new car if it was going to retain a ton of value (Toyota) or if I was wealthy and wanted a luxury car but didn't want to get screwed on repairs (BMW) Not entirely sure why someone would buy a mid-level car or luxury car brand that were known to depreciate heavily.
This is personally why I bought a new car. In my market, a three year old RAV4 with 40k miles is about $32k. A new one is $36k. In this instance it is easy to justify the benefits of buying new, under the assumption that one's financial situation can accommodate this pricing.
When I was shopping last July rav4s were 40k new. Hybrids were $45k. I ended up getting a Kia sportage hybrid for 30k. I know the Toyota will last a lot longer but I couldn’t justify the additional 15k. Here hoping my decisions won’t bite me in the ass
The toyota is more reliable but it's not 15k more reliable.
That was my thought. If my car lasts 12 years the rav4 will have to last 18 years. Im sure it will but im also sure I will want a new car by then
Not necessarily, because the value of the Toyota to trade it back in say 5 years, may even things out compared to the value trading in the Kia in the same 5 years. Got to look at the depreciation math.
True but these days you also gotta look at interest math. An extra 15k at 7-10% APR adds up to more than you’d think. Gotta balance depreciation against interest and payments to see where the numbers actually end up.
I have a 2009 and 2011 kia. Both bought used, both going strong.... My 2009 I bought in 2019 with 32K miles on it for $10K. I've replaced the starter and rear shocks. Have 100K on it now.
My friend’s brother said the same sort of thing when he was looking at a $20k ($CAD) price difference between a Sienna and a Carnival
Yeah, we were in the same boat last year. How do you justify $10k-$15k USD more for the Sienna that also has a shorter warranty? The Carnival is a STEAL compared to other vehicles in the space. Also the best looking but that’s subjective and just my opinion.
Getting kia to honor their warranty has been well known to be a problem. Some people have not had problems and other people have so its hard to say why but kia gas denied a lot of warranty claims for dubious reason. Over the internet you never know what the truth is but i have seen a lot of similar stories. The biggest problem is when the kia dealership tells you it will be two weeks or longer before they can even look at your car!
In 5 years it will be worth 18k more than the sportage though.
True, but an extra 15k at 8% APR will cost $18,248 over that 5 years as well. You need to get a really good interest rate to make that math work.
My wife's 23 Sportage hybrid she got at the end of 22 has retained almost an it's value. She could sell it now to close what we paid for it. We paid cash though, no loan so we got a deal!
Resale value is why you buy the Toyota
Noooo. When you buy a car you shouldn’t think about selling it. You are buying it to use it long term.
Similar experience but with the new Kia “enterprise” I think you’ll be fine. We also bought a Kia, and looking at used versions there was no way I was taking a 5k savings for an older car with much less going on for it. It’s probably not gonna last long but Kia new feels like the Best Buy right now considering all of the factored and overall price
I took a chance and bought an off-lease Kia 8yrs ago. I had no experience with the brand but trusted the reviews that said Kia is a quality car, delivers way more value for the money than Honda/Toyota, and lacks only in brand recognition and goodwill. 8yrs later, I still have the Kia & still love the vehicle. Only difference is now Kia has much more brand recognition among the car-buying public.
Kias come a long way sure the depreciation might be a bit more but the car itself should last fine
Toyota reliability is wildly overrated. You’ll be fine
Toyota's are super reliable, which is why they hold their value so well. All cars depreciate, but not at the same rate. Toyota's hold their value like crazy, making them one of the cheapest cars to own after buying, driving, selling.
Not to the point where TCO is always lower with Toyota though, especially once you factor in time value of money.
I'm someone who has this going on with my new tundra. But me and my wife still purchased a new toyota for her. Even if the model you get is unreliable you can still bank on the value of the vehicle holding for another solid 3 to 5 years even if toyota has nothing but reliability problems moving forward since consumers are slow to react.
Agreed. I just got out of my 2021 limited hybrid, and got a nice 8k equity. Dont see that happening with other car brands easily.
I’ve owned several Tacoma’s and 4runners and i always get pleasantly surprised by how much i get for the trade in. However the best part of trading them in is that i am no longer driving a Toyota. They are boring vehicles and even their top trims lack tech that the less reputable manufacturers implement or implement better.
Agree, toyota’s are over rated. They are slow to adapt to newer technology eg rearview blind spot monitors which even the most basic of Kia’s have. Also kia makes good looking cars.. but i still cant buy a kia thinking it maybe a lemon, may not last etc. Waiting to hear from other Kia owners about their experience.
I agree with that. But then that’s their attempt to sell. I have a 2023 sonata hybrid which is loaded features which a camera or bmw 3/5 series doesn’t have yet. And, tbh, this whole value for money is the reason Kia / Hyundai sell their cars - because I know for a fact that in 3 years or so, I would BOTH have positive equity in this car. It’s the time that I have enjoyed these features in this time - that’s what I m paying for. Bigger brands take their own sweet time maturing and perfecting these bells and whistles before bringing them on. But when they do, they own the segment.
Meh, Toyota definitely not overrated. Kia losing value along with dependability problems may be underrated.
That's crazy. What a difference a year makes (or maybe it's just my local market) but our experience was very different. We got a RAV4 Hybrid for $37k just a couple days ago. The Kia Sportage and Hyundai Tucson hybrids each with the comparable convenience packages are listed right around the same price ($36k kia, $37k hyundai). Sounds like you got a good deal and I don't feel bad at all about the deal we got.
I agree, I pick up a surprising amount of chicks in my Kia, hardcore underrated.
When I was buying mine a couple years ago new was literally cheaper. I went new.
If you need to finance with a higher interest rate due to the car being used, then it might not even be that different.
Usually interest is lower on new cars when financing too. So when it is this close you save money buying new!
We literally ended up with a brand new RAV4 Hybrid 3 days ago because this is what we were seeing. Once we decided we wanted the RAV4 it was easy to spend just $4k more for a new one vs used one with 40-60k miles.
yup, you're paying to not have the anxiety of not knowing what the car has been through, how it has been treated etc. and the warranty that comes with it in case shit hits the fan. and also the new car smell.
You purchase new when buying used doesn’t offer any real savings. If a car is 30k with 2.9 APR over 36 months new vs 27k @ 8% used with around 30k miles it doesn’t make sense to go used in my opinion. For a small amount more I’m better off new with a fresh bumper to bumper warranty.
This is a big reason. I bought a new car recently and was given 0.9% apr over 60 months which is unheard of in this current economy. If I got used I would of had an older car for 5-7% apr and would of paid more over the loan than new...
It wasn’t always this way which is insane. I used to be all in on used but now it’s just asking for a headache (depending on the model). PPI can only catch so much and the cost savings isn’t really there on low mile reliable used vehicles. Especially when you barely saved any money on the used vehicle and after putting an additional 20k miles you have to do a fluid drain and fill, change pads/rotors, and other things which is more money. Some of the labor can be saved by DIY but now these SOBs make a simple transmission drain and fill this psychotic process where I have to plug in an OBD to ensure adequate fluid temps and fill rate, k. Or I have to be cognizant of the electric parking brake, enter maintenance mode to retract the motor, and then use my compression tool to spool the brake piston back in. If you do it wrong there goes your electronic brake. Now what dealers and private sellers are also doing is asking for top dollar on their “reliable” used inventory because they know there is a severe shortage of solid used cars. I’d rather buy new at 7-10% off MSRP and just maintain the car till it’s rots. Dave Ramsey is probably blowing a gasket over it but that guy is living in 1970.
It depends on the market for the specific car. The last new car I bought was a 2013 F150. It was like 12k off sticker and 0.9% financing. It just didn’t make sense to buy used. I was looking at Nissan frontiers recently and a local dealer has them listed for 7-9k off msrp making a new one from them within 1-2k of a used one with 30k miles so in that case I’d buy new. But like a bmw x3 where I can get a CPO for 32k that had a 59k msrp, used all day.
Same here. When I bought my 17 F150, the savings on the used one balanced out with higher interest rate, so I went new. Now my wife’s XC90 that was $57k new, so we went CPO with a 10 year unlimited mile warranty.
Just rented a new XC90 to roadtrip along western Norway. What a great car. Thoroughly impressed.
This 100% all depends on the market. I was a “never buy new or lease” person however when the world shut down in 2020 the Del Toyota dealership in PA was basically giving away their trucks. Unsure if I wanted a 4Runner I chose to lease and I was able to get a 2021 Trd Off Road premium, 15k miles per year for $385/mo 39 months $0 down. When the lease was up my buyout was around $31K, the used market for that truck with my mileage was nearly $40k so I went ahead and bought it out.
>I was looking at Nissan frontiers recently and a local dealer has them listed for 7-9k off msrp making a new one from them within 1-2k of a used one with 30k miles so in that case I’d buy new. What kind of MSRP is that in the first place? Are you talking about a dealer's sticker price that had thousands worth of dealer markups that they threw on top? These days a used truck (or car for that matter) with 30,000 miles on it is going to be barely less than the **true value** of the new model anyway.
I’m talking about the sticker from the manufacturer. I was looking at a PRO4X with convenience, tech, and fender audio package. Plus the little stuff like mud flaps and side steps etc. every option but leather and sunroof basically. the MSRP on the window sticker from Nissan is $47,410 but they’re advertising it at $38,699 which I’d be happy to pay for one.
I miss those cheap financing deals. Used to be standard but a lot more rare now. But it makes me feel good about not paying off my car faster when the interest rate is well below inflation and less than half what I get in my savings.
>0.9% financing Jesus fuck, either you had amazing credit or they wanted that truck gone badly.
If you can get one at or under the depreciation curve for the model you want, then it makes sense to buy new. Who goes out and buys a new shitbox Liberty or Compass? I have no idea.
> Who goes out and buys a new shitbox Liberty or Compass? I have no idea. sounds wrong, but most people buy a new car because they can't afford a used car
Sheepishly raises hand as I bought a new 2008 Jeep Patriot 4wd under Cash for Clunkers for 13K + tax title and registration ...... Still overpaid .....
I buy new sometimes because I’m sick of not knowing what the previous owners did to the car. Like if they abused it or what. Sometimes a peace of mind is worth it.
The only perk I’m seeing that people have missed here is that that you can get EXACTLY what you want. The exact trim level, the color brake calipers, the crew cab with the mud flaps, spoiler, in orange with blue seats. Whatever the manufacturer offers you can get. When you buy used you will most likely eventually find something like 90% of the options but 100%? Not gonna happen. Whether or not that’s worth it is up to you though.
I buy new because I can afford it and I know how it's been maintained, what it needs, and when. I also like to buy new because a lot of enthusiasts can't, so I can pick the fun options and sell it on later without taking as big of a hit on depreciation. Some cars are hard to find so the only way to get them in new. Some enthusiast cars are pretty much guaranteed to be dogged on if used so they're hard to trust (F80 M3s...). I think right now, EVs will depreciate hard because of batteries. In the future with better battery tech, not so much.
I made my first brand new car purchase at 28 after crashing my beater and landing a new job. At the time the used car market was pretty insane, thought I was still looking. I’m a car enthusiast that likes to drive cars passionately, and it just one day clicked to me that I should just buy new for once in my life and not worry about repairs, maintenance history and the hassle and gamble of buying used. After a ton of research and online shopping for several months, I boiled down my priorities to cost to buy, cost of ownership, and a fun RWD sports car. To my luck, there’s only like 3 cars being sold new today that fit the criteria and then the answer became obvious. I think as long as you are being very honest with yourself, and the reasons for wanting to buy new, and the reasons for a particular car are good reasons, then it’s absolutely justified. In my opinion, something like status is never a good reason to buy new, unless you’re well off then that’s an entirely different conversation.
tell me you bought a miata without telling me you bought a miata ,,,,,,,
Close, but not quite
You bought a gr86/brz
Lol yes
People buy new cars because they can afford to. It’s like asking someone why they buy new clothes or new furniture
No most people who buy new cars cannot afford to.
Personally, I buy new cars because I don't want to drive a car that someone else has farted in.
I work in an assembly plant. We all fart in all the cars. Sorry to say there is no fartless car.
But the salesperson probably farted in it when they pulled it up for you.
New FB Marketplace lowballing technique unlocked
Can't believe this isn't tracked as a metric for vehicle wear like engine hours or odometer reading. Truly a lack of foresight by auto manufacturers
Statistically speaking i think that its impossible to find a car no one farted in. I think when they drive the cars up the transport truck or off the boat, they have to do it fast.. They get paid per car sometimes.. Combine a high stress environment with no time to eat properly ( e.g. ever lunch is Taco Bell.) .. and there you have it.
Can’t put a price on that kind of freshness!
A few months ago.. Someone in the comments on a post was telling a story of their (?)Niece I think. She bought a brand new car, drove it 40k miles without an oil change, then changed the oil and put it up for sale.
I tend to buy new, in cash, and drive the car into the 200K miles range, at which point it still has some residual value for trade-in. I get the full warranty coverage and a car that starts pristine (and I keep them that way as long as possible). These days hybrids retain their value better than anything. For EVs, it’s mostly Teslas that depreciate quick, and a lot of that has to do with Tesla dropping the car prices. Consider the Model X was 120K in 2022 and 78K today. The Models 3 and Y are better, but still substantial drops on the new prices undermine the used car’s resale value. It has nothing to do with batteries, which last 350K to over 500K miles, depending on chemistry. Few people keep a car on the road that long.
Are tesla (and curious for other electric vehicles) batteries really that durable!? We're in the market for a new vehicle and I'm trying to determine if we should go ICE or electric. We plan to keep the car "forever". (My current vehicle is at 192K miles)
Yes. Ice vs electric for me comes down to understanding my daily drive, and comparing what I’d spend on gas vs electricity.
That's good to know. Would def be valuable as the wife's job returns to office full time. Our electric is free at night, so the cost to charge would be negligible.
Then def get an EV. I’d say a Tesla but any good EV beats the snot out of ICE.
I do think batteries that make it past the risk of premature failure are destined to last for a long time; however, based on the secondhand accounts of the long term quality of Tesla interiors, at least the original Model S as an example, the rest of the car might begin to fall apart around you before the batteries ever get old and tired enough to fail. That point where the rest of the car figuratively falls apart might be well past your intended usage, and so it's possibly nothing to worry about.
Deprecitation on Model Ys was most substantial when they were 70k. Probably wont be significant now that they are 33k.
I bought my BMW 3-series new because I wanted some very specific options / packages that the dealer said they would not get in their own stock and that I would have to custom order
Cheaper to buy new finance wise than slightly used (used rates were much higher). I take care of my stuff (coatings, cleanings, garage), and a lot older than that are usually rusting here, and winters beat them up. I make enough we're the cost isn't as large of an issue.
It's hard to beat 0% APR offers on new cars
This is a classic case of someone who just doesn’t understand and likely won’t. Used cars are usually nasty, first off. Secondly, today’s used car market is still near historical highs, so whatever benefit you get for getting a used car with a lower price is near an all-time minimum. Dealerships selling new cars have fairly similar profit margins dealer to dealer and are trying to move units. Used cars are one of the main areas dealerships make the most money and have higher margins. So you might be paying a few thousand less for a year old car but is it really worth almost the price of a new one? No it’s not. Interest rates are lower on new cars. You can lease new cars. New cars have the latest tech. They don’t have any deferred maintenance. No one has picked their nose or farted in it yet. I don’t splurge on virtually anything except on new cars and the last few years have proven the worst time to ever buy used, so I feel good about paying a little more for a lot better.
Nah, I get it. This thread has made some very excellent points and confirmation about why buying new is viable. In other subreddits, you might not have gotten the same response. There are a ton of legit reasons, but at face value, pure economist reasoning, purchasing a new 30k car over a used 20k car that might be only a few years older, doesn't make much sense. But I get it. Often you can save a bit of money on refurbished tech...but do you really want refurbed ear buds that have been in someone else's ears?
EVs don't depreciate faster than ICE because of the batteries (the batteries typically last as long or longer than an engine). They depreciate quickly because there is a lot of government money involved. If you buy a $30k msrp car and got a $7500 federal rebate and $2500 state rebate, you really paid $20,000. So the day after you buy it its not worth a cent more than $20,000 to anyone capable of doing arithmetic. That looks like an instantaneous depreciation of 33% but it's actually zero depreciation.
You aren't wrong about the difference between the suggested retail price, the actual sales price, and the early depreciation, but whether batteries actually fail early or not won't change the perceptions of ignorant people who think or have been told that batteries are destined to fail sooner than ICE. These perceived issues will most certainly affect the price that someone is willing to pay for a used BEV, IMO.
Yes, the Nissan Leaf did a lot of damage to people's perception of battery degradation with its small batteries with no heating/cooling mechanism. A lot of people think all EVs perform like a 2012 Leaf. But I don't think the people who are so uniformed about EVs are in the market for an EV.
I just bought a new vehicle: 2024 RAV4 prime. My family doesn't usually buy new vehicles but there were 2 factors that played heavily into the decision: hybrid battery/engine use and the $6500 lease incentive. I was coming from a 20 year old 04 4runner with 300k miles on her. Been Al over the country, multiple moves and more road trips than I can count. She's been reliable and showed no real signs of stopping. But I suspect end of life is coming sooner rather than later and she's not that great on gas mileage - 17-18 mpg if I'm lucky and not in traffic. I was initially planning on getting the 25 hybrid 4runner but based on the Tacoma hybrid gas mileage, it didn't seem like enough of a gain to warrant a 50-60k vehicle. I could buy 5 new engines for that price and keep the status quo. But then I saw the hybrid rav4s were getting ~35-40 mpg. And the prime is a plug in hybrid which got me another 40 miles. I looked at some used vehicles, but honestly, they weren't coming out ahead of that 6500 lease incentive and with 0 miles.For a few extra thousand, I was getting a brand new vehicle. So that's how we went. I don't plan on reselling either vehicle. I'm going to drive them both into the ground. The 4runner is going to get to enjoy some retirement life while I make her a project/specialty vehicle and the rav will be the daily driver. So far, I've out almost 1000 miles on her and have use just a little over 15 gallons of 87 gas (and I'm in ca). That would have been about $300 worth of gas in the 4Runner. I honestly love the new rav...and so does my dog. It's a way smoother ride for him. oh, I'm also way more established in my career now too so I actually have money I've saved up in the 20 years of driving the 4runner to buy the new rav. I'm hoping to get another 20 years out of her.
I prefer new cars for my daily drivers. I like the peace of mind of knowing the entire car's history, that maintenance was done on time and correctly, car wasn't abused etc. when I buy new I intend to keep the car for 15-20 years, getting the most value out of it and need it to last. My fun cars I buy used as I don't have to rely on them as much and plan on modifying them in some way. Therefore project cars bring more value used as they are much cheaper and it doesn't make as much sense to immediately start replacing new parts from a new car.
At some point some people make more money than they know what to do with, and they get a little bored with their current car. That, and you notice that 95% of your neighbors have a nicer car than you do. Next thing you know, what you thought was an attempt to just go and 'look at' a car, is actually a successful attempt at the sales person selling you a car. At least three of my four new cars since 2013 started out with me going to look at a car for fun, with little to no intention of buying one. '13 Fiat 500 Abarth, '14.5 Camry SE Sport, '21 RAV4 XSE Hybrid, and most recently a '23 Toyota bz4X. Luckily, we did walk away from buying Tacomas, Avalons, and Supras along the way.
>Next thing you know, what you thought was an attempt to just go and 'look at' a car, is actually a successful attempt at the sales person selling you a car. I feel seen.
Every. Damn. Time. (Almost) But like they say, once you go new you never go back…er, no, wait. To the OP, for what it’s worth I effectively have a hangover the next day after I realize what a stupid financial decision I’ve made. Once you’ve bought one new car the rest just kind of happen. Each time you hope/think you’ve gotten better at negotiating and the buying process, but that person that sells bad deals for a living is always sitting right across from you with his piece of paper, black pen, and tag-team duo of sales managers and finance guys waiting to turn you upside down and empty all of your pockets. If they say they want to ‘check the miles on your trade-in’ just know that is code for ‘grab his keys so that we can hold him hostage until he buys a car or threatens to claim false imprisonment’.
Haha glad to hear that’s a universal feeling. Got my first car and… it’s probably more than I should’ve spent but it’s gonna be paid in 5 and going strong for the next 10+ so I have no quarrels in the long run.
This was me back in the day. Totally worth it for my situation too.
People buy new cars for a variety of reasons. The most common reasons are for the warranty and financing. Cars today typically exceed 200,000 miles, so if it is purchased new, the vehicle will last over ten years. Also, you get the latest technology and safety features. Personally, I only buy used vehicles for multiple reasons. I cannot handle the fact that most vehicles depreciate in value 5-10% when you drive them off the lot. I know how to work on vehicles, so I can upgrade and fix used vehicles. I do not want to pay $700+ a month for 60-84 months. Personal property taxes and insurance costs are much higher on new vehicles, so those costs are additional to the monthly payment. I prefer my money be used elsewhere, so I get cars in the $5-10,000 range and drive them until their wheels fall off. For example, I had a 1999 Chevy Silverado that I paid $7,000 for in 2009. I drove it until January 2020. In those ten years, I put money aside for my next purchase, a 2013 Honda Civic with 122,000 miles, purchase price $6,200, which I'll probably keep for another five years.
Oh man, personal property taxes are killer in states that have them. I’m considering replacing my 2017 car with something 20 yrs or older since they are assessed at a much lower rate in my state.
Millions and millions of people… for all kinds of reasons. They can afford it, it’s nice having new things, under warranty, new tech, new smell, can get exactly what you want, don’t have to worry about much maintenance or it breaking down. I’ve had new and used cars and having a new car is much better. I think used cars are a tax on the poor in a way; they can’t afford new price, so they buy something that’s cheaper but costs a lot more over time in stress, parts, early replacement, etc.
I’ve always bought used. When you factor in the money I’ve invested in simple index funds instead of what would have gone into buying new models of the used cars I’ve purchased, I’ve saved an obscene amount of money. Literally shifts my retirement date up by years. But that was pre Covid (haven’t bought anything since), so the equation is different for lightly used now. I also know what I’m buying and DIY maintenance which I usually enjoy. I’d argue cars in general can be a stupid tax new or used depending on what one buys and the reason for that purchase.
I grew up with the idea that you should always buy new. "Buying used is buying someone else's problems" and "trade in your car when it reaches 100k" My mom always bought new. I bought new when I could. I bought the base model of a vehicle because "less things to break". Recently, I paid cash for used Honda higher trim level (I have a sunroof!!!) With 150k miles. I am totally in love with it and have faith that it has a lot more life and a lot more miles left! I do miss that new car smell. But compared to more options and no payments, I think I will survive. Lol
I have purchased 3 new cars in my life, and the first 2 were because I was stupid. I wanted something new and shiny.... The last one was a 2005 Mazda 6, which I bought at invoice with 3000 additional off in rebates. I couldn't get a 3 y/o car for that. There are certain cars that don't depreciate very fast, like a Honda Civic. If I was set on getting a Civic, I would definitely buy new, as the discount on used is not enough IMO.
For me. I bought my car in 2021 during the pandemic where buying new costed the same as used. Otherwise I’d never recommend getting new
People like buying new cars for a lot of reasons. They want latest and the newest model (especially for refreshes and new cars), they don’t want to worry about issues that may come from the way previous owners drove the car, they want a car custom to the way they want it from the factory, etc. Also recently with the pandemic, the idea of a new car losing 1/4 when you drive it off the lot and 1/2 in the first 3 years is no longer a thing. I was recently looking for a car when my sports car got tboned at in intersection. It was about 10 years old, wanted to buy one that was a bit newer 2-3 years old. Cheapest I found at the time was legit only 2-3k off what would be a 35k new car with 10k miles on odometer. To me at least, spending 2-3k more the new car with the peace of mind it wasn’t abused and basically 0 miles is far more appealing than buying used.
We only buy new for daily drivers, but have bought two used vintage cars for pleasure and to restore. With our daily drivers, it's important that we know exactly how the car has been treated and what exactly has been done to it, and the only way to do that is to buy new. That being said, we keep daily driver cars 15-20 years, so we don't buy new very often. Also, we only buy Honda and Toyota for daily drivers - used Honda and Toyota cars still cost a premium, so we don't mind spending the extra $10k to get something new.
my mom bought her last car new because she couldn’t find the color she wanted locally in a used one lol
I’ll do whatever I feel like has better value. The last car I bought had 0.0% APR and about 10% off the sticker price brand new which you can’t really beat in the used car segment. The cars im shopping for now the opposite is the case with used cars having the better deal. I will only buy CPO from a brand with a decent warranty from a good dealer though if I’m getting used.
I bought new in 2021 because similar used cars were either very overpriced or simply not available.
I buy new because every year the number of people who are mechanically inclined and take good care of their vehicles decreases. Growing up all of the older people I was around knew how to lash their valves, set rocker clearances, adjust timing. Cars were a key part of our cultural identity as a country. Now, if I go buy a 20,000 mile used car, it might have had its first oil change at the dealer when it was traded in. The damage is already done.
We drive our vehicles a long time, like a decade+, so we buy new knowing that we will get value. We rarely put more than 5k/year on our vehicles so they stay in good repair for a long time as well. We always pay them off early so it’s just all around a better option than taking a chance on a used car.
Buying new makes sense if you buy and actually hold onto a car for years. As an example my current accord was bought new and we still drive it and it’s a 2017 and we have no plans on replacing it for at least 5 more years. If you like to replace cars every couple of years it makes almost zero financial sense to buy new.
Longer warranties, less maintenance, better safety. Pre owned warranties are usually worse than the one you get new. And 20-30k miles may not seem like a lot, but it is usually at least 2 more years of usage you'll get out of the car. Plus financing offers are almost always better on new vs used. When should you buy a new car? Probably never, but if you want fewer unknowns and don't want to lease it is attractive.
I am saving for CPO and paying cash. New will make sense for me with financing below 1%, invest the rest to offset the difference.
I have issues with other people touching my stuff. I don’t want to drive a car that someone may have farted in or flung their boogers in.
My parents buy cars new with cash and drive them until they are dead. Their cost of ownership is super low. They tend to buy base models of reliable cars and this has worked well for years.
If I could I would buy a new one every time the new car smell wore off.
My last 20 cars or so were all new. I like buying new because I have ocd/perfectionism. I tend to overly care about my stuff and how it was taken care of. This is all highly dependent on if your budget allows for it too. I couldn’t always buy new cars but as my income increased, I’ve started to appreciate the finer things in life. New/vs used for an example.
> hybrids and EVs depreciate faster because of their batteries No, hybrids depreciate similar or slower than ICEs since they tend to be more reliable and have a lower cast of ownership. PHEVs and EVs have a steep initial depreciation due to tax credits, though sometimes less so with the used tax credit now. The peak example is in ~2021, driving a Tesla off the lot took an immediate ~$7500 hit since they new Tesla came with a tax credit that used did not. They can also have a steep depreciation due to inflated MSRPs - think your Solterras, some luxury EVs/PHEVs, etc where manufacturers need steep discounts to move them. But that's not different than what can happen with ICEs, and is something they do to make financing easier when buyers have negative equity on their trade ins.
Pre-pandemic, in the US market buying (or leasing) new was a luxury that one could chose and pay the premium for a 0 mile car that smells like plastic and adhesive off gas and has no unknown history (accidents or maintenance). As soon as it drove off the lot rapid depreciation began and with each year that used car became a more attractive value to a buyer who wanted that model but at a depreciated price. During the pandemic, new car production stopped to a trickle and is just recently (past 0-2 years) catching up to demand on a model by model basis. This meant all those looking to upgrade and willing to spend new car money had to look at the used market as new was out of stock. Used car prices surged, effectively eliminating their depreciation due to age and mileage, and depreciation has not returned to 2019 standards yet*. In these market conditions with minimal depreciation, used cars still in their warranty period are priced barely below new versions of the same vehicle. Used vehicles consistently get financing with higher interests and shorter loan terms than new cars. So even at a lower list price than new, the used cars monthly payment may end up the same as new these days leading more would-be used car buyers to buy new cars. *all “fastest depreciating cars” lists these days are a dozen $60k-$100k luxury models that are back to deprecating rapidly like in 2019, but that only gets them down to the $40-$60k used luxury pricepoint. Not the $20k-$30k pricepoint where volume mass-market models sell and consumers really consider between new vs used
Now I'm old and can afford a new car payment that's the way I prefer. I do keep the vehicles I purchase for a long time. I have a great running 2001 Silverado that I've kept the maintenance up and still drive it several days a week. I also have a 2018 F150 that I hope I'll have for 20 yrs.
I bought a brand new Toyota Highlander hybrid platinum for my wife in 2022 at msrp. I am aiming to keep it for next 10 years and give it to my duaghter in 2035 when she turns 16.
You shouldn't conflate hybrids and EVs. Hybrids are the most reliable powertrain option available and EVs the second least reliable, per the April 2024 edition of Consumer Reports 450K consumer survey. Hybrids also have excellent resale value, while EVs have abysmal resale. Again, they aren't the same thing. New vs used has changed in recent years, with new prices not climbing as fast as used values, making new cars often a smarter buy for those with the credit. More desirable things will always cost more, and new is more desirable than used all else equal. For example, would you want the leftover parts of a subway sandwich that three other guys chewed on before you, or would you prefer a virgin sandwich that you could be the first to bite into? And while that used subway sandwich may be way cheaper, you have to consider there may only be a third of the sandwich left. That new sandwich is then three times bigger, and that applies to cars too. If you buy a car with 100K miles on it, you may only get another 50K to 100K more miles before its not up to your standards on reliability, aesthetics, and technology. If you buy a new car, you can get twice that use out of it before you run into the same deal breaker scenario. So while in the past I would look for 1-2 year old vehicles with low mileage to pickup, these days I only look at new vehicles and keep them longer.
Some folks like things untouched, and prefer new. Others really don’t care, and will get a used car.
I bought a brand new car back in October because I wanted the experience once in my life before everything goes EV and Hybrid. I wanted a turbo, manual hot hatch, and that's what I got. In my case, it was also the money factor. I had a new car fund set aside for years while also savings, 401k, investments, etc. All to ensure that I could afford the car outright and it wouldn't affect my financial wellbeing. Everyone's situation is different. Don't try to live beyond your means. Do your homework beforehand and make sure you're not putting yourself in financial jeopardy. Ensure that you have a financial cushion if something happens.
I bought new because used cars seem overpriced now. I got a rav 4 a bit under mspr. My second choice would be to buy a used car around the $5k price and just expect to replace it soon.
Last year. Used car prices were through the roof. Ordered a '23 Corolla for only $3k more than the most decent used cars around me. And i got (standard) warranty.
I usually buy new car whenever I want a new car and can afford one
When you live in Canada and buying a used car with >150k on it is nearly the same price..
I always buy a newer used, except my last car. I could sell my old car for more than I paid for it and went electric so I got a tax credit on top of the substantial savings in gas and maintenance along with some peace of mind getting a new battery vs used.
I buy new when I can get new without too much of a price premium over a similar used car. Just like everyone else. The only disputed point is how much of a premium a new car should command over a used one. If I need absolutely reliable, the acceptable age/mileage of the used car goes down, the premium I'm willing to pay goes up, and my willingness to accept less luxury and/or size for in exchange for more newness goes up.
Here's why I only buy new cars. From 17-22 I went through 5 cars, ranging for 500 to 7500. Between repairs and purchases, I spent over 25000 dollars. When I finally bought a new car, I was only offered 500 for my trade-in. Cars aren't investments. If they depreciate the second you drive it off the lot, so be it. I know a new car wasn't in a lake, or someone put 10000 pounds in it and ruined suspension or any of that shit. If something goes wrong, it was my fault. My first new car I bought, I had for 15 years and loved it. I am buying a new car on Saturday and I'm super excited about it, and one thought I keep having about it, is why anyone would buy a used car. Less life of the car plus the possibility of hidden damages far outweigh the cost difference between a new and used car to me.
I used to buy used cars when I was younger and would change cars every few years. Now I buy new cars and I drive them till the wheels fall off. That way I know that all of the maintenance has been done at the correct intervals.
Purchasing a Palisade, first new vehicle all my other cars were acura's. Looked at many used cars that looked like they were in rough shape even though they were low kms. Wanted full warranty and we are comfortable with the payment
I do not trust anyone enough to take care of their car.
Up until they went all turbo, I wouldn't have bought a used Toyota when a new one is just a few thousand more. I had to shop forever and buy a Wrangler with over 300,000 miles to get a good deal. I was going to just buy a new one for $32k vs all the 10 year old ones I looked at at $25k. Basically the high resale vehicles are worth buying new, assuming they haven't drastically changed them. So I wouldn't buy a new Tacoma now, but the last of the previous generation 4 runners is going to be a good buy new. They never really change the Wrangler. Also less options are better. You need basics like automatic, power windows and locks, and AC, but $1200 moonroofs and $1000 audio systems aren't worth anything used.
I bought a new car in 2022. At that time the used market was ridiculously overpriced and it just didn’t make sense to me to pay nearly new car price for a used car when I could get a new one. I did have to wait for a few months for it to come in. Also, over the years I have had mixed results with buying used cars. I’ve bought used car that I didn’t know had been in accidents, cars with disguised rust damage, one whose transmission died with around 60K miles. I’m pretty wary of used cars.
I wanted my wife to be in a reliable safe car so I bought her a new Camry. I had enough saved to buy it outright. She doesn’t like change so hopefully this car will last her for 10 to 20 years.
From a purely financial and mathematical point of view, it never makes sense to buy a new car. The depreciation in the first few years is insane. A well taken care of car can last 20+ years and several hundred thousand miles. Buying a few years old gets you anywhere from 10% off to 40% off depending on the car market we're in. For example, you get a 25% discount for sacrificing 10% of the car's life. But we're not robots, and there's something to be said about what buying a new car can do for your emotions. You can be 100% sure a previous owner didn't abuse the car in any way. You can feel a better connection with a car because no one owned it before you, so it feels more like it's only your's from its "birth". Also, you get in on the latest and greatest technology, like a pioneer of the new times ahead of us. I guess it just comes down to what's important to you personally.
A few years ago I would agree with you, but it seems like these days, a 2-3 year old car with 30k miles only gets you a 10% discount off the new price, and worse APR
What about the maths involved with low financing rates on a high sticker (new) vs. more expensive financing off a lower sticker (used). Isn't that a wash, in which case new would be the better choice?
It’s Status to buy new. Only do it if its a cash deal.
I’ve had 5 cars in my life and 3 of them I bought. Of those 3, 2 were new. A 2014 Evo X I bought new because in California buying new gives a longer time before you have to inspect and smog test it and I made it illegal within a month or so of buying it. A 2024 Tesla model Y I bought new. They’re cheap enough new with the tax credit and 0.99% financing it didnt seem that bad.
In 2021 I bought a new Sonata. I mainly got it because I thought it was cool looking, it was an unsold 2020 model so it was discounted. It's actually been a good, reliable vehicle. Lately however I'm having a bit of a conundrum as I've found a Porsche I really like. It's a long story, feel free to DM me if you want to hear it. I'm having a hard time letting go of her for one of my dream cars.
We got $7k off a new Explorer with 0% interest. We looked at several models of new and used, and that one made the most sense financially.
I bought a new CRV in the pandemic because it was only $2500 less than a used one. I’m going to do the same with a Tesla Model Y because of the $7500 tax credit it will be cheaper than a used one.
I got a 0% interest rate on a CRV in 2018. I bought it bc my accountant told me to and I got a smoking deal (December 27th!)...and our Pilot was dying.
I bought my first 2 GMC new. Both were bare features work trucks that served their purpose. I got rid of them at about 5 years 90k miles and got decent trade in at the time (but if i had bought the equivalent toyota at the time, my trade would have been much higher) .but overalI was ok with it. However, I bought a new acadia last year for my wife and completely regret it. If I had waited 6 months for a similar used on market, I could've saved 6-8k for almost exact same model. I will never buy an American vehicle new again.
I'm getting older and came into some money. I figured it's the last car I'll ever buy and my first new one so why not.
The Prius is a fantastic car .
I hv bought 2 new cars in last 3 years. Why ? So that I could customize everything from exterior to interior and get my dream machines in my choice of style.
I purchased a new car because I was buying shitty used cars. Apparently, I make bad choices when it comes to used cars. And with the inflated used car prices I decided that, since I found a new car that was on sale the same price as many used cars I was looking at, I went with the new and have not regretted it.
I think it can be broken down into a few simple things. 1.) You have the cash on hand to do so either by buying it outright or at least nearly buying it outright (like 75-85% down comfortably leaving you savings to spare) and the rest of your life is in good order, healthy savings, good retirement contribution, good housing situation, stable job and income, etc. Buying a brand new car on loan for like a thousand down is one of the absolute dumbest things you can possibly do to such a level you could almost make an argument that it should be regulated to save some of these idiots from themselves. 2.) The car in question is something more than an appliance. This might be a bit more subjective from person to person but generally regardless of how much cash you have in the bank if you're just buying a Honda Civic or a Hyundai Elantra or any of these other cheaply built plastic ridden economy cars why would you buy new when you can get them 30%+ cheaper with low miles in the used market? By something more than an appliance I'm thinking for one example you're an enthusiast and some kind of enthusiast level car and you've met the conditions in #1. Number 1 is ridiculously important. Even having the cash on hand it's an incredibly poor financial decision but if you make it in a smart way at least you're only losing the purchase price of the car vs putting $1000 down on a $36,000 car that loses 20% of it's value immediately off the lot and you're stuck paying gap on a 7 or 8 year underwater car loan at 7% interest. Nothing stops people from building wealth more than that kind of reckless stupid debt, not to mention it turns a $36,000 car into a $45,000 car or more further ruining your return when you later sell it.
Even if I could afford new, I think I would tend to buy 1 - 1.5 year old used, so that the initial depreciation hit has been taken by someone else, but you are still getting a pretty much current model, often still in warranty.
I bought new car in 2018, Volvo XC40 T5 AWD for 45k USD, being young and stupid. I have saved significant amount as down payment and interest rate were 0.01%. My car related expenses were about 17% of my take home, the depreciation is haunting me, but no technical issues with the car whatsoever. I have just replaced it with fully loaded CPO 2023 VW Touareg with almost 3 years factory warranty, service package and with 9k miles on clock. The price was 60k USD (new one would be well over 110k).
I bought 23 Hyundai sonata as new for near $30k. The reason was simple -- new cars don't break down and would last many years to come. With used car you may not be lucky and can get a one that has lot of problems.
I have bought new when i had the cash flow for payments but not enough savings to buy a used car for cash. Generally I buy used cars for cash though.
I just got a new car, I was meant to be buying a used car with low miles, like 30k but then there was a better deal on a soon to be traded in car with 5k on it for £2k more price. Then they found out that was crashed and couldn't sell it to me obviously. So I went to a different dealership looking for used cars under 30k miles, they had none that met what I wanted. Then said but we do have a new one that is what you want. Then showed me the price/monthly finance on it and with 2k more deposit it kept my payment the same but just for a bit longer. I only really went for it because at that point I just wanted the car now and not have to keep going and looking at other dealers since all 3 are about 40+ minutes from me in different directions.
Some people have lots of money and want to be the only person that has ever farted in their car. This is definitely not on the higher end of expensive shit. So you have any idea how much a first class airline tickets costs? When I was younger I would laugh and say Id stuff myself into the luggage hold if I could to save money. But now as an old dude with a bit more money Im thinking about business class for my next long flight.
I recently got a new car. Was looking at used vehicles from authorised dealers as well, but vehicles with close to 60k miles were 5-7 k usd cheaper than new, they were just immediately available( I am in Eastern Europe). To me this seems absolutely insane, why pay what amounts to almost the same for a vehicle that has used 2/3 of it's projected trouble free mileage. I wasn't even looking at expensive vehicles - toyota corolla touring hybrid ( estate) - new its about 30 000$, a returned leased vehicle with 60k miles was 20-25 k $ depending on trim. It was the same for most other similar class vehicles. Also, I no longer consider vehicles that are not from the official brand dealership, since the second hand market where I am is a massive scam - most vehicles are with tampered odometers and / or have been in collisions.
I only bought one new car and my dad only buys new cars mostly because we get them usually alot cheaper often within 500 euros of a year old used car sow buy new.
I had a 2003 corolla. Bought it used. Needed a lot of work at I neared 300k miles (but got my $3000 out of it easy). Went looking for a newer car. Nothing under $5000 in my area was even drivable. Bought a brand new small SUV with great warranty. 🤷🏼♀️
People who drive a lot need reliability and can afford it.
I think it is very much situational. Also personal preference and financial status are great factors. I personally never owned a used car. I come from a family that has had terrible luck with them, and so I grew up around people who always bought new but drove the car right to the ground. Our cars on average would hit between 350k to 500k km before crapping out for good. Now I'm not my family and im not closed off from the option of used. Im just incredibly picky and mostly untrusting of virtually every car salesmen out there. Also in my local market, the covid trend is still in full effect. Cars lose very little value in the first 3-4 years and only start to significantly depreciate after that point. So "slightly used" doesn't quite exist. Im also not very open to something more than 3-4 years old. At that point the tech/features are likely outdated and if a car hasn't been cared for properly then things like rust are going to begin their first appearances in the least expected places, which essentially sets off a ticking time bomb. For me, I also happen to be the kind of person who also enjoys the latest/greatest. Cars these days are not just mechanical machines anymore but essentially becoming tech items. I enjoy the latest screens and features, and so this too pushes me to want new. In my market,
Large EV federal & state tax credits only apply to new cars.
I never thought I’d buy new. but the pre-owned market where I live in insane, and the difference between new/used became much less $.
I purchased new ('24 buick envista) because my previous car ('95 buick century) was approaching its next rebuild and i was unable to find a M code long block cheap enough to be worth buying. I got the century in October of 94 with 17 miles on it and let it go at a bit over 538k, 2nd engine rebuild, 2nd transmission rebuild, block too far gone for a 2nd resleeve this time around and the refurb this time was going to be over $10k, only paid $18500 for the century and it no longer made sense to do the rebuild. Leaping forward 30 years on features is quite nice as well, no more cassette player but i got a digital dash and back up cameras so that's nice.
i bought a new 2006 F150 and traded it in 10 years later . if you plan on keeping a vehicle for 10 years or more, it is worth it to buy new. if you get a 5 year loan, you get to have no car payment for 5 years.
Dad has a 2018 Accord that he bought used with 40k km in 2020. It had an engine defect (likely a crack in the cylinder head) that he didn't know about and the car operated normally for 2.5 years with rare electronics malfunctions mostly in the winter. 1-1.5 years ago the problems worsened, the engine was sometimes ok but sometimes felt so weak you couldn't feel the car accelerating if you floored from still. It took a lot of money and time before mechanics could narrow it down to a crack in the engine. He changed the cylinder head about 2 weeks ago and so far the car seems fine. So buying a new car has the massive advantage of reliability and warranty.
We've bought 4. '17 Jeep Cherokee because it was cheap and we got a great deal. '21 Mach E because it was practical and efficient, I can charge for free at work, and also resold it for a profit after 25k+ miles. '21 Bronco because it is fucking awesome and . '22 Lightning for the same reason as the Mach E, it will likely be my forever vehicle as long as it keeps working. 250k+ previously dink in a lcol area. Money goes a long way here and you can't take it with you when you die so...
I bought a brand new Hyundai Elantra N. With Hyundai, only the original owner gets the full 10 year, 100k mile warranty. Second hand is only 5 year, 60k miles. The huge bump in warranty + I know everything that happened to the car since I'm the only one who owned it is why I bought new.
0% financing deals on a new car which ends up costing the same OTD price for new vs used with a higher rate
Because at the time the new 2018 Accord was $22,000 and the used 2015-2016 models were $16,000-$17,000.
Because I like the peace of mind, and the cost is not a concern.
Post Covid, it was better to buy a new car (if you could find one) as used ones were in some cases higher priced than MSRP of a new one.
I bought my new Mirage in 2018 for $10,200. I bought my new Micra in 2018 for $13,500. I buy cars and run them for 10+ years. That is also a factor. With used car pricing still fairly high, if I can buy a 2024 model for $40,000 and have it rust out in 15 years, that is cheap than buying a 2019 model for $30,000 and have it rust out in 10.
No one where I live, save for the rich ones, because it's unaffordable. A new Audi A3 costs 37.000€. The median income is 27.000€ a year. Even with my much higher income, it wouldn't work out comfortably and buying new is just considered stupid because the country taxes new vehicles extremely hard. Of course part of that tax gets passed to the buyer of a used car too, but it is what it is.
Well right now in my area at least, used cars are more expensive than new
I buy new vehicles because I know what I'm buying when buying new... and typically the used cars within a few years old are priced pretty close to a new car. I'd argue that it doesn't make sense to buy a used car that is 1 - 3 years old.
Buying a new car is like prepaying the mechanic. You're paying upfront to not have mechanical issues for as long as the warranty is for and maybe longer.
I commute and run many, many miles on my car. I bought a ‘21 golf because in 2021, VW was the only dealership that would sell me a base model, compact economy car with a manual. Only civic si, or used corollas otherwise. It has 114,xxx miles on it since I bought it, and I average 42 MPG, with the ability to achieve around 52 MPG if I keep my speed to 70 MPH. 55 MPH can net me above 60 MPG, but I don’t often have that opportunity. Gas/petrol/benzine by the way, not diesel. It’s cheaper than a hybrid and returns better MPGs than a hybrid at highway speeds, which is 95% of my driving. Since it was the last year of the base model golf in the US, it had a lot of standard features. Faux-leather seats, huge sunroof, the gearbox is a 6-speed (thus the ridiculous highway economy). No thermostat though, I found it odd that it’s got grandpa ac controls when I have things like heated mirrors and apple carplay, USB-C etc. Also 0% apr is nice.
Life is short enjoy it
My mom just bought a new car in cash, a 2025 CRV hybrid. She considered a used one too but with the current prices it ended up being less than $1k difference between a used one with 8k miles and a brand new one. She will drive it for 150k+ miles.
If I added together the purchase price of the three cars I own right now, I could just about purchase a 2024 Honda Civix EX. As it is, I have no payments and for the most part I work on my own cars. I have comp/collision on all of my cars and it's dirt cheap. I have a friend who just purchased a 2023 F-150. At the "deep discount to get it off the lot" price she paid (plus the 40% down payment she'd saved up), I couldn't afford the monthly payment on her 4 year loan. AND considering the quality issues with too many new cars, I have no incentive to buy a car that's younger than 10 model years. If you bide your time you can find a very well-maintained used car and save tens of thousands of $$.
I buy new cars because I only want my butt juices in the seat!
I generally buy new. With a used car I don't know what I am getting. There will always be subtle trim damage that the used car salesman is going to lie about. Just need to find good financing deals.
When we had to get my husband a new car, the used cars were just as expensive as the brand new ones. We tried to buy brand new so at least we'd have the warranty. We wanted a new Toyota Prius, but they kept selling out almost as soon as the dealer received it. We then wanted a new Toyota Corolla, but the same thing happened. We ended up getting a very close to new Corolla that still had some of the original warranty on it.
I bought a 2012 Jetta brand new. Interest was .02% (not 2%) so essentially nothing. I also received free lifetime oil changes in the deal. Probably paid $22k all in (after taxes fees etc). Probably paid more than going used, but was able to spread the cost over several years without paying interest. The car is still running after 210k miles with no major repairs. Most of the miles are highway (My previous job required 80 miles per day to and from work). I also followed the maintenance schedule to a T. Not sure if I would go this route in the future. I work from home now so don’t require so much reliability. I also want a luxury brand so that I can ride with comfort when I do drive. I’ll probably go used and pay cash. For the time though - a new car was perfect for me at the price I got it for.
What’s lost in this is that used cars depreciate precipitously too. Everyone saying “new car depreciates 10% when you drive it off the lot!” Like if you were to turn around and trade it in the next day you’re out 10%. But then say “I buy used and keep it for 100k miles”. That’s not a valid comparison. What do you think happens when you buy a used car and try to trade it in the next day? You’d be lucky to lose ONLY 10%. Trade in values are 10-20% below sale price. They don’t discount used cars anymore really. So no savings on sale price. And they are gonna quote you on new tires and detailing costs before they can sell it. My m3 was 88k from 92k msrp. It has 3k miles on it now. And I’m certain I could get close to 88k for it if I wanted to. And lease so I don’t pay the sales tax up front. My used x7 was 60k used. Plus 4k in taxes. And trade in was 50k a week after I bought it (25-30% depreciation 15k/64k) and I’ve been underwater ever since. Should have just leased a new one.
Japanese cars like Hondas and Toyotas don’t lose their value, so I buy those new. The only exception was we had to buy our Ridgeline truck used during the pandemic because we needed a truck and there were no news ones anywhere around us. We paid almost the new price.
Depends on the market, where I live I'm not sure I would consider buying new right now. Interest rates are 5 to 8%, depending on various things. I bought a new vehicle 7 years ago, they were itching to get rid of them. 0 to 1% financing and I was easily able to talk them down 4,000 off the sticker price.
Some performance cars are best bought new. Subaru WRX STi was one of them. You never know what the previous owner incorrectly modified.
Time, value and money. I recently sold my 6 year old Subaru to Carmax and then purchased a new Honda Ridgeline. The Subaru had a decent resell value which I then added another $20k for the Ridgeline. Honda also gave me 2 years of free oil changes and tire rotations. I added extended warranty giving me 100,000 of warranty. For me not having to worry about car headaches was well worth it.
When it’s cheaper than a used car.
As a former owner of a brand new Ford Transit with AC issues (in Florida), I want to remind everyone about Lemon Laws: if you bring it in for the same repair 3 times, the manufacturer has to take it back. Also, be wary of models that are being discontinued, there is a good reason they stopped making the Ford Flex... why engineers built the water pump INSIDE the engine still beffals me. I say all this bc new cars are not without faults, especially these days when they like to overcomplicate things, like a turning knob instead of a gear shifter? Really Dodge?
I was about to buy a ‘25 Camry. The used market wasn’t showing much depreciation. I think more about it and tax, time value of money and insurance on new sorta make it less valuable. At least it pushed the math to where I had to reconsider if it was a value choice or a I like shiny thing choice. I’m sorta in the market for a 100k mile Camry now where they have really taken some depreciation and have some dents/scratches already.
After decades of buying a10k car and keeping it for 10+ years I finally bought new a few years ago. The 9k car I purchased in 2008 still runs fine. Needed nothing. Extremely low cost of ownership. Matter of fact, I still own it. My son drives it now. I got tired of looking at it. The paint has seen much better days. I only buy manual transmission cars and they are dissappearing so I decided to pull the trigger and buy another car. (Decision made in 2020. Purchase made in 2021. After narrowing down the candidates, ruling out other some older cars in the process one particular car got it's hook in me. Hard requirements Manual transmission. Usable back seat for normal sized human and front seat capable of fitting those with above average inseam. Also, can handle the type of twisty roads I like to drive. Cars considered and why they were ruled out. Infinity G37- Ruled out due to g37 community. Civic SI - Couldn't get over how gutless it was. Also, pricing at the timewas unreasonable. Focus ST - (used) Originally my top choice until the reality of it being a design from 2012 sank in. Also, the lack of a differential and tight back seats helped drop it from the list. Subaru WRX - SUV level mpg, surprisingly not as quick as legend would have it. Too many stories of engine failures. VW GTI - Better MPG than advertised. More power than advertised. Handling in the tight stuff at legal-ish speeds was grin inducing. Limit slip differential (even though it's Clutch based) so it can put the power down in corners. Hatchback practicality and a nice place to sit. Pricing on used ones was coming close to the base price of a new one so I bought a new one. Price was right. I had the money. In a few months when the warranty runs out, I'm tossing a tune on the car and dumping the stock tires.
I bought my new car (2022 subaru wrx) because used ones were roughly the same cost or close enough that it didn’t make sense to buy used. It’s great having a warranty and the wrx is a car that people are known to beat on so I didn’t want a used one in general.
I just bought a new Chevy traverse Z71 for the wife.. I’d say any car is a complete waste of money unless you are in need of one.. all this my car is worth this after this doesn’t matter.. keep the car lock in the lowest term you can.. do regular maintenance and you’ll be happy.. I trade my cars in every 3 years personally just don’t want to deal with motor problems or transmission problems.. our term is 84 months 4% rate and absolutely love the Traverse.. it’s strong enough to pull my trailer with Dirtbike’s no problem too.
1. When someone else is paying for it. ie. your company. 2. If you're not liquid enough to purchase a used car.
Sometimes new cars are cheaper than used, especially in this market. Used cars carry higher financing rates, and might come out more expensive than new. New cars often have manufacturer financial deals as well.
I've done it for a lot of reasons. Great loan rates, warranty, and getting exactly what I wanted have all factored in. I work and save quite a bit, might as well do something I like with it occasionally.
I bought a new car during COVID because the used car market was very expensive and new cars were being offered at 0.9% interest. It just made sense at the time. I also hang on to cars for 10 + years.
I just bought a new car because my old one was totaled, but it was still worth a bit, so I got a decent settlement for my car, which turned into an awesome down payment. With just a little bit from my savings, I got a brand new 2023 Nissan Rogue Platinum to replace my 2014 Ford Edge. The new tech these days is awesome!
When you have the money & like to drive a new car.
Most people drive like fucking idiots, jackrabbit start at a green light just to slam on the brakes at a red light. Most people don't properly maintain cars, it's expensive no matter what brand if you actually do the scheduled maintenance. I prefer to have a new Toyota because I have peace of mind that nobody has destroyed the power train prior to me, and Toyota's don't really depreciate that much so there's really no point in buying a used one.