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New Car versus Used Car


iamshack

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QUOTE (iamshack @ Jan 2, 2011 -> 06:50 AM)
So yesterday I was bored at work and was playing around on the interwebs and decided to check on the resale value of my vehicle. I have a 2001 Audi TT Quattro coupe. While researching this, I discovered that apparently there is an issue with the timing belt on my particular make, model and year vehicle. The belt can go at any time and cause "catastrophic engine failure," requiring repairs well into the $5k range. I've read that once you surpass 60k miles, you are playing "russian roulette" if you drive the vehicle without getting the belt replaced. However, the manufacturer (Audi) suggests in the owner's manual that you need not change the belt before 105k miles or so, but then they discovered the flaw and intentionally concealed it from owners. They were sued in a class-action lawsuit, and have since settled. Basically, the settlement provides for the free inspection of your timing belt during any regularly scheduled maintenance, but if the belt needs to be replaced, it is the owner's responsibility. This costs some $1,400. The settlement also puts the owner on notice of a new maintenance schedule, which requires you to replace the timing belt every 30-40k miles, at $1,400 a pop.

 

I decided I am not sure if I have a desire to deal with this issue, especially for a vehicle that is only worth about $10k at this point.

 

So I began looking into getting a different vehicle.

 

I've always thought there was really no debate - used was the way to go. But apparently, used car prices are at all time highs and new car prices are fairly low because of intense competition. Between these prices and the difference in financing, I am starting to think buying a new vehicle may be smarter in the long term than buying a used vehicle.

 

What do you guys think?

I went through both options and we just recently purchased a new car (week ago). Got a great deal. I actually looked at 2-3 year old vehicles but the difference in price was so miniscule that it really didn't make much sense to me. Difference was about 2500 verus the new price we got. Plus we got 0% interest which was nice. But I know there were other cars we were looking at, where we would have went the used route. I think it very much depends on the specific vehicle.

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QUOTE (iamshack @ Jan 3, 2011 -> 12:42 PM)
Yeah, this is a great example of buying a slightly used car versus the newest model year. With the quality and technology in cars these days, it really isn't as worrisome to buy a used car as it might have been in the past.

 

I must say, it's always kind of fun for me to be in the market for a car. I enjoy doing all the research, from comparing the models, reading the expert reviews as well as the consumer reviews, searching for the best combination of options, etc. I admit, I did not enjoy this process when I first began looking for cars before the internet really exploded, but I do enjoy it now.

 

I still really love Audi as a manufacturer, but my conscience is tugging at me a bit to consider these new electric vehicles, thanks to Sqwert recommending I watch that damned Collapse documentary ;)

 

And it was Certified Used so that helped.

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QUOTE (Chisoxfn @ Jan 3, 2011 -> 01:43 PM)
I went through both options and we just recently purchased a new car (week ago). Got a great deal. I actually looked at 2-3 year old vehicles but the difference in price was so miniscule that it really didn't make much sense to me. Difference was about 2500 verus the new price we got. Plus we got 0% interest which was nice. But I know there were other cars we were looking at, where we would have went the used route. I think it very much depends on the specific vehicle.

Just curious Jason, what did you end up getting, if you don't mind me being a little nosey?

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QUOTE (iamshack @ Jan 3, 2011 -> 10:50 AM)
Just curious Jason, what did you end up getting, if you don't mind me being a little nosey?

We ended up purchasing a Highlander. Got it for about 5500 off sticker plus 0%. Replacing the wifes old car (2000 Isuzu Rodeo). Not sure how we ended up with 0% either, since it wasn't even an incentive, but my friends dad is a GM for a Toyota dealer and he hooked it up.

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QUOTE (Chisoxfn @ Jan 3, 2011 -> 12:57 PM)
We ended up purchasing a Highlander. Got it for about 5500 off sticker plus 0%. Replacing the wifes old car (2000 Isuzu Rodeo). Not sure how we ended up with 0% either, since it wasn't even an incentive, but my friends dad is a GM for a Toyota dealer and he hooked it up.

The 0.0% is definitely something that tilts you towards new.

 

Like Balta pointed out, I guess the question is very model specific. Depends on a lot of factors, including rarity of the model, how they hold their resale value, whether a new bodystyle has replaced the old one or any major changes have occurred, how well the new models are selling, what kind of financing offers are being made, etc.

 

I guess you have to decide whether you want a particular car and are willing to pay for it, or if you just want the best deal on a decent car, and then you go from there.

 

 

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I like to buy luxury cars on the cheap so I go for 1 or 2 year old used cars. For example the one I am thinking about moving to is a RR sport SC. You can literally get 20k+ off buying it a year old. I did the same with a lexus SUV a few years back and when I got rid of it I didnt lose any money.

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QUOTE (Tex @ Jan 3, 2011 -> 07:05 AM)
When I was on company car plans I had to buy new. We couldn't drive cars 4 years or older. The past ten years I have not had that situation and have been buying used and paying cash, which is really nice. I figured I would always be going that route until I needed a tow vehicle for a RV. That will be a full size pick up and that used market is scary and without any super values. I have a minimum of six months before I buy so I am hoping for a major market change.

 

It kind of hurts that I really want the Dodge or Ford.

 

FWIW, I picked up a 1993 GMC Suburban as a tow vehicle about 5 years ago and I've never had any problems with it. They really last a long time. I've gotten my money out of it and then some.

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0% interest is not actually 0% interest in all cases. The financed price of the car is usually adjusted to get to the monthly payment that you agree to.

 

I bought a car for $28K for 0% interest but the actual financed amount was $24.5 with an interest rate of 4.5% or something like that. This was 10 years ago when these were hot.

 

Jason try and go into the loan and see what the current payoff of the loan is compared to your purchase price. It may be different now.

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QUOTE (Harry Chappas @ Jan 3, 2011 -> 01:46 PM)
0% interest is not actually 0% interest in all cases. The financed price of the car is usually adjusted to get to the monthly payment that you agree to.

 

I bought a car for $28K for 0% interest but the actual financed amount was $24.5 with an interest rate of 4.5% or something like that. This was 10 years ago when these were hot.

 

Jason try and go into the loan and see what the current payoff of the loan is compared to your purchase price. It may be different now.

Mine is 0% interest. If you agreed to 0% interest and didn't get 0% interest, I would have went ballistic on the dealer or the auto finance company you are using. However, I don't negotiate based upon monthly payment. I just agree on the price of the vehicle and than my rate. In this case, it was easy because Toyota Financing had some great incentives. So you take the rate and terms, plus the price you pay and the actual monthly payment is simple math. I also know my credit score so I know I can qualify for the lowest financing available (in this case after doing research I learned that while Toyota didn't advertise 0% financing they were allowing dealers to give it so I made sure to negotiate that in at the end of the day). Internet is a really really amazing tool to purchasing a vehicle (you can get stats on what cars were being purchased for in your area and when, plus all kinds of other great info).

 

Than again, I was in the loan business through college so I'm well aware of all of the s***ty games a finance guy/dealer can throw on unsuspecting people. And its pretty s***ty. Prior to buying this car through my friends dad, I was looking at another vehicle and they tried every trick in the book and I just got up and walked out.

 

Never get duped on a warranty, them needing to run your credit super early in the process (be aware of your score) and don't just take any rate they give you. Have an idea of what a good rate is, what isn't. See what other places can give you that way you know what is going on.

 

And I say don't get duped on a warranty because on all new vehicles you have up until 3 years or 36,000 miles to do an extended warranty and the vehicle and you can purhcase it (if you are buying one through Ford, GMC, etc) through any dealership. Check the web, find the cost, and you'll find out you probably pay double if you buy it through your finance guy. You can also look to 3rd parties. And this is if you want to get a warranty.

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I bought a new 2010 Ford Escape last year for about 6k off the asking price and got 0% to boot. Had I bought a used 09 with 5k miles on it I would have paid about the same simply because of the financing. I got a better model with all the options I wanted. I think it totally depends on the model you want and the kind of financing you can get.

Edited by Jenksismybitch
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QUOTE (Chisoxfn @ Jan 3, 2011 -> 03:55 PM)
Mine is 0% interest. If you agreed to 0% interest and didn't get 0% interest, I would have went ballistic on the dealer or the auto finance company you are using. However, I don't negotiate based upon monthly payment. I just agree on the price of the vehicle and than my rate. In this case, it was easy because Toyota Financing had some great incentives. So you take the rate and terms, plus the price you pay and the actual monthly payment is simple math. I also know my credit score so I know I can qualify for the lowest financing available (in this case after doing research I learned that while Toyota didn't advertise 0% financing they were allowing dealers to give it so I made sure to negotiate that in at the end of the day). Internet is a really really amazing tool to purchasing a vehicle (you can get stats on what cars were being purchased for in your area and when, plus all kinds of other great info).

 

Than again, I was in the loan business through college so I'm well aware of all of the s***ty games a finance guy/dealer can throw on unsuspecting people. And its pretty s***ty. Prior to buying this car through my friends dad, I was looking at another vehicle and they tried every trick in the book and I just got up and walked out.

 

Never get duped on a warranty, them needing to run your credit super early in the process (be aware of your score) and don't just take any rate they give you. Have an idea of what a good rate is, what isn't. See what other places can give you that way you know what is going on.

 

And I say don't get duped on a warranty because on all new vehicles you have up until 3 years or 36,000 miles to do an extended warranty and the vehicle and you can purhcase it (if you are buying one through Ford, GMC, etc) through any dealership. Check the web, find the cost, and you'll find out you probably pay double if you buy it through your finance guy. You can also look to 3rd parties. And this is if you want to get a warranty.

 

The internet is killing most of their pretty games. I had a guy try to sell me a car over sticker price once. I made quite the scene on my way out.

 

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QUOTE (Harry Chappas @ Jan 3, 2011 -> 04:24 PM)
The internet is killing most of their pretty games. I had a guy try to sell me a car over sticker price once. I made quite the scene on my way out.

 

What if the dealer made a scene when a customer lowballed them?

 

That would be unprofessional.

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QUOTE (iamshack @ Jan 3, 2011 -> 12:17 PM)
This is what I did with my last car. Paid about $20k for it with 34k miles on it and everything very close to mint condition. Have owned it for 4.5 years now and it is worth about $10-12k still, so I am really happy with that.

 

Unfortunately there is this stupid timing belt issue.

FWIW, my current vehicle also has a notorious engine problem. I now have 160,000 miles on it without any issues. I am trying to decide to replace it again or wait and use it as the excuse to buy the truck I want.

 

QUOTE (Iwritecode @ Jan 3, 2011 -> 03:23 PM)
FWIW, I picked up a 1993 GMC Suburban as a tow vehicle about 5 years ago and I've never had any problems with it. They really last a long time. I've gotten my money out of it and then some.

 

I've been thinking about that as well. Having three vehicles (car to commute, motorcycle to commute/fun, and a tow truck). I'm just not certian I want another vehicle sitting around.

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Went and test drove the Audi TTS today. Have to say that is a freaking beautiful machine. The A5, S5, and S4 are really sweet. Had to get out of there before I did anything crazy and signed any papers.

 

Definitely can rule the S5 out, because they will chip an A5 for me for about $1200, which makes it performance-oriented enough for my tastes to go with that and save about $8-10k.

 

Very nice cars though, has all the gadgets I would want, like, nav and satellite radio, iPod interface, bluetooth phone, etc.

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QUOTE (iamshack @ Jan 4, 2011 -> 07:58 PM)
Went and test drove the Audi TTS today. Have to say that is a freaking beautiful machine. The A5, S5, and S4 are really sweet. Had to get out of there before I did anything crazy and signed any papers.

 

Definitely can rule the S5 out, because they will chip an A5 for me for about $1200, which makes it performance-oriented enough for my tastes to go with that and save about $8-10k.

 

Very nice cars though, has all the gadgets I would want, like, nav and satellite radio, iPod interface, bluetooth phone, etc.

Audi does gadgets very well. I havent driven a chipped A5 yet.

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QUOTE (iamshack @ Jan 6, 2011 -> 07:56 PM)
Hey Rock, was settling in on the idea of the A5 and then I stumbled across this...mercy...

 

Ebay -2011 Porsche Boxster Spyder

I hate you and your perfect vegas weather. Dammit.

 

I drove a Range Rover sport supercharged today and the new Jeep GC. Jeep did some real nice things with that car, but i still feel like spending almost 50k on a jeep is a f***ing rip off. One thing is for sure, I really am going to miss my G. I am going to try out the FX50 to see if maybe that alleviates the slowness I feel with every SUV I drive.

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QUOTE (RockRaines @ Jan 6, 2011 -> 08:58 PM)
I hate you and your perfect vegas weather. Dammit.

 

I drove a Range Rover sport supercharged today and the new Jeep GC. Jeep did some real nice things with that car, but i still feel like spending almost 50k on a jeep is a f***ing rip off. One thing is for sure, I really am going to miss my G. I am going to try out the FX50 to see if maybe that alleviates the slowness I feel with every SUV I drive.

Yeah, talk about an impractical car. But I am a single guy with no kids that lives in Las Vegas...if there was ever a place where having that car would work...this is it. I'm going to take a serious look into these...I imagine the insurance is really bad...but 0-60 in 4.4 seconds...amazing styling reminiscent of the old 550's... yowzas...

 

As for the RR, I took a look into those after you mentioned them the other day. It looks like if you're going to get a used one, you want to go 2010 since the interior was redesigned. Awesome SUV...definitelty would look into them if I was in a more extreme climate, but here, well, there are a million of them around town and I just don't need it's off-road and winter weather capabilities. Definitely a nice vehicle for your needs though.

 

I like what I have seen of the Jeep GC's too, and I will always love the Wranglers, but I agree, overpriced.

 

Let me know what you think of the FX50.

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Dammit, a friend of mine just bought a 2011 F150 XLT, the exact model I want for $21,990 and 0% financing. Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.

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QUOTE (Tex @ Jan 7, 2011 -> 11:06 AM)
Dammit, a friend of mine just bought a 2011 F150 XLT, the exact model I want for $21,990 and 0% financing. Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.

That seems like a pretty good dealer. You going with the V6 or V8 version? Quad cab or regular?

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QUOTE (Tex @ Jan 7, 2011 -> 01:06 PM)
Dammit, a friend of mine just bought a 2011 F150 XLT, the exact model I want for $21,990 and 0% financing. Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.Must not walk into a dealer.

 

I didn't know you could still get an F150 for that cheap.

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QUOTE (iamshack @ Jan 6, 2011 -> 08:05 PM)
Yeah, talk about an impractical car. But I am a single guy with no kids that lives in Las Vegas...if there was ever a place where having that car would work...this is it. I'm going to take a serious look into these...I imagine the insurance is really bad...but 0-60 in 4.4 seconds...amazing styling reminiscent of the old 550's... yowzas...

 

As for the RR, I took a look into those after you mentioned them the other day. It looks like if you're going to get a used one, you want to go 2010 since the interior was redesigned. Awesome SUV...definitelty would look into them if I was in a more extreme climate, but here, well, there are a million of them around town and I just don't need it's off-road and winter weather capabilities. Definitely a nice vehicle for your needs though.

 

I like what I have seen of the Jeep GC's too, and I will always love the Wranglers, but I agree, overpriced.

 

Let me know what you think of the FX50.

FX50 test drive today. Its basically a g37 with a ballooned out trunk. The V8 felt exactly like my v6 in my little G, and you are a touch higher up. I dont know if I like the looks at all though, it really looks to me like a station wagon with a serious engine in it. I just cannot get over buying an SUV that cannot do any work offroad whatsoever. And it didnt even have any real towing package.

 

I'm going back to take a 2nd look at the JGC overland today to see if I can get them to lower their price.

Edited by RockRaines
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