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I know with inflation today that the cost difference between a new car and used car is smaller than it used to be. However, dealerships make money from selling car loans and you can get used cars even cheaper if you go though a private seller. If I compare prices online for a 3 year used car is about 10k cheaper than new
One thing that's often overlooked is the fact that interest rates are usually lower on new car loans than they are on used car loans.
This often can make the total cost of a new car almost the same as one that's 2 or 3 years old.
This was even true 20 years ago, before used car prices started going crazy.
Historically the advice has always been that you can save all kinds of money by buying a car that's a few years old, but when you factor in the cost difference in interest rates, I don't believe that's always true.
One thing that's often overlooked is the fact that interest rates are usually lower on new car loans than they are on used car loans.
This often can make the total cost of a new car almost the same as one that's 2 or 3 years old.
This was even true 20 years ago, before used car prices started going crazy.
Historically the advice has always been that you can save all kinds of money by buying a car that's a few years old, but when you factor in the cost difference in interest rates, I don't believe that's always true.
I've bought my last 3 vehicles through a private seller and never had any issues.
It depends on the make and even the model.
2008 Toyota 4Runner purchased used from private seller off of craigslist: Had 175k miles at purchase and sold it with just under 300k miles. Not one single problem with that darn thing. We did basic fluid changes, tires, shocks but no real problems or mechanical failures.
2003 Chevy Silverado 1500 purchased used from private seller off of Autotrader.com: Had 80k miles at purchase and sold it with about 150k miles. In addition to tires, fluid changes etc. over the course of that mileage it needed a full tranny rebuild, 2 alternators, 1 starter and 1 fuel pump. That truck was the worst headache ever!! I finally gave up on it when the second alternator failed. It was my fault though for purchasing it since the chevy dealership mechanic that I took it to for a pre purchase inspection warned me against buying an American truck approaching 100k miles. But I didn't listen to him.
Also, your savings purchasing used over new is going to increase the older your purchase, at least to a point since eventually the cost of repairs will exceed a new car payment + interest. IMO the sweet spot on a used Honda or Toyota is on vehicles that are about 5-7 years old. For an American or German brand I wouldn't purchase anything older 1-2 years.
Used, for me.
Real, real used. 100K miles or more wouldn't scare me off, but that depends on a lot of things. I do a lot of work myself.
We're retired, with some cash and assets. If DW didn't want to go as "used" as I would, I would try to get her to go with a prepaid lease on a new one.
I wouldn't buy a new car. I tend to get attached to them and keep them too long. That was fine in the old days, like when I bought my 90 GMC. Still got it; still use it. I can fix all that stuff myself. But I don't want to own one of today's cars.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by Berteau
...If I compare prices online for a 3 year used car is about 10k cheaper than new
Please give an example of the 10x disparity, I would like to understand the model / reason for that much cost difference.
of hundreds of cars, I have bought (1) new (when I was age 18 and knew no better)
I have NEVER bought used with a warranty, and the only huge issues with used cars have all been through dealer purchase (which I prefer to avoid).
Buy one-owner / FS by owner.... low mileage if possible. Indoor storage, non-rust belt, meticulous owner with OCD . Maint records....
Really possible to get good deals. But... I suggest you never buy used from ME!!! I drive till dead and then take to shredder.
I have over 20 cars with over 300k miles and some with 500+k miles. My daily driver is 47 yrs old, cost me $35 pre Y2K, still delivering 50 mpg on free fuel. NEVER towed in for repair, never left me stranded. It will probably last the rest of my driving days ~30 more yrs. My trucks will run to 1m+ miles, so they aren't getting replaced. They cost me $3000 - $5000 and are very heavy duty and dependable.
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. Maint records....