Going crazy at work - new car related

[disneysteve]

I have to say that when I buy a car, resale value is the farthest thing from my mind. By the time I'm done with a car, I really don't car what it is worth. If I get a decent amount for it, that's just a bonus to me. My car is nearly 10 years old and I hope to keep it another 5 years. I don't expect to get much for it when I'm done.

[tinapbeana]

that is a good point, but i would venture to say that this is where buying used vs new would still help you out in the end: few things more frustrating than spending major bank on a new car only to find out that they majorly upgraded that model the next year, and your car's resale value just went through the floor.

[Aleta]

Also another point to consider is that when you buy used you may get a vehicle loaded with options that you could not have afforded on a new car.

[disneysteve]

few things more frustrating than spending major bank on a new car only to find out that they majorly upgraded that model the next year.

Actually, if you want to buy new, this can be a good time to do it. If the model you are considering is getting a major redesign, the dealer's leftovers can get marked down considerably because everyone coming in wants the fancy new version.

[tinapbeana]

also true, disneysteve... i guess it's a matter of whether resale value is of the utmost importance toyou or not. me, i plan on driving my car into the ground, so resale value doesn't matter all too much and i would therefore be more inclined to opt for a marked down end of version car...

[thekid]

What underlines most of my thinking with regards to cars is simply that the cost of a car to the buyer is purchase price - resale price / years of ownership. Purchase price alone is almost irrelevant. That is why resale price is important to me.

I don't necessarily look to drive in the least expensive manner possible, I try to look for best "bang for your buck". To me, an average yearly ownership cost of 1000$ - 2000$ over the total period of ownership is what I look for. You can generally have that if driving 0-9 year old reliable japanese sedans, with some perks. Priorities are different for each, for myself if I can hang around that price tag, I'll avoid driving much older cars.

For me, the absolute worst one can do is european luxury. Probably the funnest cars to drive, but VERY unreliable and the depreciation is VERY steep. I know many people who buy 3 year old european luxury cars, thinking they are doing a smart buy as they only pay roughly the price of a new Civic for much more car. This is another example of purchase price being irrelevant, their price per year is much higher due to higher depreciation and the fact that they can't keep the car very long due to unreliability (the longer you keep it, the less your price per year is).

[Aleta]

I think resale value is important if you're planning to trade the car in within 3-4 years. Also, it would be important if you got a loan for the car and for an emergency, you had to sell it.

[thekid]

I think resale value is important if you're planning to trade the car in within 3-4 years. Also, it would be important if you got a loan for the car and for an emergency, you had to sell it.

I think resale value is important (has a significant impact on average price per year of ownership) within the first 8-10 years of a car's life.

[parafly]

Resale value is also very important in terms of car accidents. If you get into a bad accident and total your car, the higher the resale value, the better your compensation.

[LivingAlmostLarge]

What about for those of you who buy used, how used? I would buy an american car used for sure, but what about a Honda or Toyota? They don't depreciate much in the first 1-2 years, and that's what I would like to own. So how do you balance the fact that some people are selling Prius, for as much as they bought them? After 2-3 years?

[tabbycat31]

In my case, I'm not seeing too many of the cars that I want (with gas prices the way they are, not too mayn people are selling their fuel efficient vehicles). Mots of the used ones I've seen advertised have been at dealers, then I turn on the TV and see a commercial where the dealer is advertising the car new for less than the purchase price of the used one in the classifieds.

I guess this varies widely based on the car.

[thekid]

Personally, I have never seen a car that appreciates or doesn't depreciate the most during the first 2-3 years.

I'd love it if it was true! Drive a car for free!

[DebbieL]

Well, they can ask whatever they want for their 2 year old car. As my dad always said - Askin' aint gettin'.

[Scanner]

Too add to the new vs. used debate, if you are that worried about a major repair issue, many dealers have extended warranties you can purchase.

I probably wouldn't but if you needed that peace of mind, that is an option vs. going for a "certified" vehicle, which to me, tend to be very overpriced as far as used cars go.

You get what? 1 year?

Big deal.

I'd rather buy off a used lot and get an extended warrany covering major stuff for $400-800 and not pay for the name of "Toyota or Lexus Certified" or whatever.

[disneysteve]

Too add to the new vs. used debate, if you are that worried about a major repair issue, many dealers have extended warranties you can purchase.

You can also buy extended warranties somewhere other than the dealer at a better price. I believe AAA has a warranty program and there are others out there, too. Also, the price for the warranty at the dealer is negotiable. We bought the warranty when we got our van and ended up getting them down to half of the price they originally quoted us.