Comments on: Can a Brand New Car Be a Better Deal than a Used Car?

By: DelCid

DelCid — Tue, 21 Apr 2009 17:47:34 +0000

Depreciation should always be factored into the equation. Consumers planning to keep a car for fewer than five years will likely get a better value buying a used car from a recent model year, which already has that initial depreciation built into the price. But if you plan on hanging onto the car for at least five years, it’s alright to go for that temptingly priced new car. The price of a car that’s more than five model years old is largely determined by its condition, rather than the initial selling price.

By: Beth

Beth — Fri, 18 Apr 2008 19:09:07 +0000

It was really nice to see a real breakdown of the costs involved with purchasing a new or used car. I’m getting to a point in my own life where buying a new car is becoming an option and seeing this information helps to clear the air around the new v. used debate.

By: 148th Edition of the Carnival of Personal Finance!

148th Edition of the Carnival of Personal Finance! — Mon, 14 Apr 2008 17:11:56 +0000

[...] Marrazzo from Saving Advice Blog presents Can a Brand New Car Be a Better Deal than a Used Car? – Cortni considers buying a new car because she thinks it’s a better deal, but is [...]

By: Jerrome

Jerrome — Sat, 12 Apr 2008 01:56:04 +0000

Be very carful leaseing

By: Jerrome

Jerrome — Sat, 12 Apr 2008 01:54:36 +0000

Factor this, I bought a used car and a new suv. my used car of 7 years out performs my new car of 7 months. Money, well worry not, just shop visit your tri-state area ( if posible) great deals exsist, do you homework with banks and dealer assocations everything else is cake

By: Special Ed

Special Ed — Fri, 11 Apr 2008 00:02:25 +0000

It’s funny to see this topic come up pretty regularly on PF blogs when the blogger is looking to justify a poor decision. It is particularly disappointing that writers on this site are doing it also. Any new car will depreciate more on the first year than it will the next five years and buying a good used car will always be a better financial decision than buying new. This is true of most depreciating assets. Buying a used car that is in poor condition is also a poor financial decision. A 3 to 5 year old Honda Accord will run for 10 – 15 more years for a fraction of the price of a new one. Use your head people.

By: Miranda

Miranda — Thu, 10 Apr 2008 19:54:09 +0000

We don’t even consider paying more than $15,000 on a car, so new really isn’t an option.

Our current (and first car bought as a married couple) is a lease return. These are usually well-maintained and have limits on the number of miles they can be driven. And the major depreciation has already happened.

We paid off our ($10,000) current car in just under four years, and we don’t plan on buying another for quite some time. But we will probably keep our current car and then pass it on to our son when we get something else.

By: {FB}

{FB} — Thu, 10 Apr 2008 18:57:57 +0000

dean – agreed. It is good to compare. Some people may want the luxury of having a brand spanking new shiny car. So if they are dead set on doing it, they might as well save some money.
For me, I love not having car payments every month, and my car has been far more reliable than many of my friend’s newer cars.
a couple things to note.
If I were to buy a new car, I would go with a Toyota. I am a toyota guy, and I probably always will.
Also I read that someone is looking for a subaru legacy. I was looking at outback sports and foresters for a while, until I read about their unreliability (and Subaru customer service being very rude and unhelpful). The subaru 2.5 liter engine has a bad habit of blowing head gaskets, and the car seems to have an unusual amount of things go wrong with it before it even hits 100k. anyway, you can read about it on my blog: http://losercoalition.net/blog/2008/03/why-i-stopped-looking-for-subaru-and.html

By: dean

dean — Thu, 10 Apr 2008 16:47:40 +0000

@ FB

I think that is what makes this article interesting. The assumption is that a used car is the way to save money, but it’s important to always compare. There may be an instance when a new car makes sense.

By: {FB}

{FB} — Thu, 10 Apr 2008 16:21:12 +0000

maybe I’m missing something here, but isn’t it ironic that there’s an article arguing FOR buying a brand new vehicle, on a saving advice site? LOL!
I drive an ‘88 toyota supra, and in the last 5 years, i’ve done maybe $1000 worth of maintenance on it. Still going strong. The car cost $3800.
Right now, i’m looking for a used toyota rav4. I am going to pay cash for it, and hopefully drive it for 300,000 miles (or more).