Going crazy at work - new car related

[lieweheksie]

Are you a native of Jo'burg? SA is one of the most beautiful countries I have ever been to (visited Cape Town and the Cape peninsula, Jo'burg, Pretoria and Kruger). The precautions to take due to the high crime rate did turn me off some, but overall I can't think of much better places to live. I look forward to returning for a more extensive visit. Lucky you

Yes I am- born in JHB, DH is from Cape Town
Thanks for your positive comments-I'm so glad you enjoyed visiting- this is an interesting place to live
Do let us know when you return :-))

[thekid]

Yes I am- born in JHB, DH is from Cape Town
Thanks for your positive comments-I'm so glad you enjoyed visiting- this is an interesting place to live
Do let us know when you return :-))

Thanks. We probably won't return for quite a few years, but the beauty of the country and the friendliness of the people really impressed my gf and I. Cape Town and surroundings is simply spectacular. A fantastic place.

How does personal security issues affect your everyday life? Is it overblown?

[DebbieL]

I'm also in Canada. Yes cars are more expensive here. I bought a new Corolla CE (very basic model - no options other than automatic transmission) 5 years ago. It came to over $19K after taxes! I will never, ever buy new again. I really don't know what I was thinking. I had been rear ended and my Nissan Micra (1985!) was totalled and I guess I just wanted a new car one time in my life. What a mistake. I do plan to drive the wheels off it by the time I'm done though. I had my previous car for 10 years or so (and it was about 8 years old when I bought it for $1500).

[lieweheksie]

not sure if this is expensive
I brought a 2006 Ford Fiesta- 1400 3 door model with 2000 kms on the clock( demo model) for R110 k- that about $16 000( exchange rate of R7 to the dollar)
just curious how much this car would cost elsewhere

[Elgin526]

I'm also in Canada. Yes cars are more expensive here. I bought a new Corolla CE (very basic model - no options other than automatic transmission) 5 years ago. It came to over $19K after taxes! I will never, ever buy new again. I really don't know what I was thinking. I had been rear ended and my Nissan Micra (1985!) was totalled and I guess I just wanted a new car one time in my life. What a mistake. I do plan to drive the wheels off it by the time I'm done though. I had my previous car for 10 years or so (and it was about 8 years old when I bought it for $1500).

Oh, I don't know. I personally don't see a problem with buying new if you have the intention of keeping it for at least 8 years. Life is short, it's nice to have something brand new now and again. And depending on the make/model/year, sometimes used isn't all that much cheaper, combined with the low or 0% interest promotions they use to sell new cars, you can sometimes make out better buying new (I think Honda and Toyota are prime examples of this, as they tend to have very high resale values).

I bought new in '98, still drive it and plan to keep it at least another 2 years. I don't regret it a bit (well, I do regret taking a 5 year loan, THAT I won't do again!) and want a new car to replace it when it's time. I may not get a new one, but I'll definatly at least look at them.

[Ima saver]

Well, we do buy new. But we have never spent over 20K until our last car. This is the car my husband has always wanted and since he works 7 days a week, I think he deserves it.

[Aleta]

Ima: Sometimes that it what life is all about. You have to have some good things in life. As long as you are keeping your finances in order; you can have things that you want. It all just depends on where you are at the time. I bought my car new and I plan to keep it as long as I can.

[markusk]

In 1991, I bought a new Subaru Legacy for $15,500 (paid off in 5 years). Twelve years and 219,000 miles later, I donated the car to charity and got $5,000 in deductions -- this is just before they changed the deduction laws. I think I did pretty well.

We currently drive my wife's 1996 Nissan Sentra. It has 155,000 miles. Someone tried to break into the trunck of the car two years ago -- they didn't get in, but broke the lock. We never got it fixed. With the baby seat taking one of the rear seats, it's really a hassle shopping for groceries, because we can only use the back seat for the bags. Yes, it is time to start shopping for a car...

Now that I am married with a child, I have mixed feelings about used/new cars....I guess if given the opportunity, I thought I would buy a new minivan (a Toyota or Honda).... We have the money to buy one outright, but now that I've thru the tread, I'm now thinking about getting a slightly used one.

For the married people out there with young children, where safety is a big issue, any hesitation buying used?

[tabbycat31]

I'm not married or have children, however I'm about to buy a car, and that's one of the considerations (ie no sports car, but I wouldnt drive a minivan anyways).

I bought a car new in 99 and it died in January. I can't borrow my dad's car much longer, but I have about 4K for a down payment (thanks to a nice bonus) not counting a personal loan that I should be getting back when I get the car.

I'm considering the Toyota Corolla, Toyota Prius, Honda Civic, and Subaru Impreza, all of which have a repuation for long lasting. I've checked the classifieds, and most of these cars new, you can get a much better deal on. And there's not too many of these models used. And I feel safer getting used because I don't want to drive someone else's problems, and I want a warantee.

[tinapbeana]

on the ye olde "new vs used" debate:

1) buy a 'pre-owned' type used car from a dealer that is nearly new. most of these still come with the manufacturer's warranty still intact

2) i think disney steve made a point on another thread on one of the reasons he buys used over new: it gives a car model time to prove itself. a car is more likely to be subject to recalls or safety issues when it's first released, so buying a used car gives you the opportunity to do more research regarding safety concerns for a specific model

3) i personally have never had safety qualms over buying a used car (i.e. wondering if it's been in an accident and is just duct taped together). BUT, for those that would, refer to #1 and buy from an authorized dealer rather than some joe schmoe. also, a car fax report can be wort the money for the peace of mind it would bring you.

[MonkeyMama]

For the married people out there with young children, where safety is a big issue, any hesitation buying used?

No, but the safety issue would make me think twice about buying NEW.

Tina's last post point #2 is spot on. The older a car is the more reviews and information there is, many recalls worked out, AND more crash test ratings. I honestly believe buying a little used is more safe.

If you trust a car dealership more than an individual though - eeks. Get a trusted mechanic and a Carfax report. Just because it comes from a dealer doesn't mean they know what the car has been through or that they wouldn't try to sell you a lemon. Of course I have extreme distrust for car dealers myself. At least if you go private party you have a better chance of finding someone genuine and not out for a buck.

[disneysteve]

2) i think disney steve made a point on another thread on one of the reasons he buys used over new: it gives a car model time to prove itself. a car is more likely to be subject to recalls or safety issues when it's first released, so buying a used car gives you the opportunity to do more research regarding safety concerns for a specific model.

Actually, I'm not sure it was me who said that, but I wouldn't disagree.

What I might have said, which is a different issue, is that I wouldn't buy a new model of a car, like a brand new model in its first year or a model that just went through a major redesign. I prefer to give them a couple of years to work out the kinks.

[thekid]

I believe "pre-owned" is the best bang for your buck. You get a fairly new car, which (if new enough) will still have original warranty AND you will have avoided the heavy depreciation of the first 2-3 years.

Cars do not depreciate by an equal amount each year. The first year is the bbiggest hit, followed by the second. Buying a car in it's third year, you can generally (depending on the model) shave circa 35% of the price of the car new. From year 3-4 going forward, the rate of depreciation decreases substantially and stabilizes (ie. depreciates by roughly equal percentages per year).

If you consider that the price of a car to you is purchase price - resale price / years of ownership (in theory, it really doesn't matter what you paid for it if resale price is good), you should get a car where someone else has eaten the heavy depreciation of the first 2-3 years but will maintain its retail value well going forward. At least in the Canadian used car market, that means japanese make reliable automobiles. The Hondas / Toyotas of this world.

That said, should you buy new and keep it for a long time....your price per year of ownership will be higher than had you bought it as a 2 year old car, but, if it's a reliable car that holds it's value, you will still make out pretty well. What you get for the extra money is complete choice of what you want (which is restricted in the used market), longer warranty and, well, it's new which is fun. If you can afford it easily and want to spend some money that way, go for it. Another consideration is financing. Should a person need financing, look at the rates and calculate. Interest rates are generaly much higher for used cars than new cars. The difference could well eat into your per year used car advantage, you may even come out on top buying new. (ie. I bought new at 1.9% financing -I had the money to pay cash, but took the loan at that rate- and a used car loan would have been circa 7%).

Simply from a best bang for your buck POW, I would:

i) look at new car prices;
ii) look at 2 year old car prices for same make;
iii) look at market prices for cars some years down the road;
iv) compare those to new and used car prices;
v) calculate price per year for the new and used;
vi) factor in financing interest rates.

I would only stick with reliable car than maintain resale value well.

Generally speaking, if you only have a small cash down you will be better off buying new vs 2 year pre-owned if you can get a great dealer interest rate on the new car. But you have to do the research, it's case by case.

As for used cars being more "tested" than new ones and hence more reliable, I can't say I agree. Car makers come out with new remakes of a model every 6 years or so. Year 1 of a new remake is more dangerous, Years 5-6 generally the best. This is what you have to look at. Buying a new car in Year 6 of the model year is much better than buying a used car which was made in Year 1 of the model year. Whether it's new or used has nothing to do with it. In fact, if it's new you'll have the extra bonus of a longer warranty.

[tinapbeana]

As for used cars being more "tested" than new ones and hence more reliable, I can't say I agree. Car makers come out with new remakes of a model every 6 years or so. Year 1 of a new remake is more dangerous, Years 5-6 generally the best. This is what you have to look at. Buying a new car in Year 6 of the model year is much better than buying a used car which was made in Year 1 of the model year. Whether it's new or used has nothing to do with it. In fact, if it's new you'll have the extra bonus of a longer warranty.

actually, this kinda does fit into the "buying used so a car has a chance to prove itself" theory: a used car from model year 1 will be easily identifiable as a possible problem car b/c of previous reports (assuming someone is doing appropriate research on such a major purchase). therefore, i wouldn't buy a year 1 model of said car, as it has basically been proven in a negative fashion, rather than positive.

i wasn't trying to say that the individual car itself had proven it's worth, but that the quirks and issues with that year's release would have had a chance to come to light once the vehicle/s has been on the market a few years.

this would all boil down to "don't buy a year 1 release of a new or revamped model", whether it's new or used. i've got a friend that takes it a step further: he checks VINs and won't buy a car made on a friday b/c he thinks people don't pay attention to their jobs on friday's. that's taking it a bit overboard IMO.

[thekid]

I agree Tina. My point is, strickly looking at new model reliability, whether the car is new or used has no bearing. The only pertinent element is the number of years the auto maker has been manufacturing that model without a substantial remake. You can buy a new car from Year 1 or Year 4 or a used car made in Year 1 or Year 4, same thing.

An additional element is the impact of significantly better remakes on your resale value. Let's take the Honda Civic for example. I purchased my car in 2005. In 2004, Mazda had come out with the Mazda3 (to replace the Protegé). The Mazda3 significantly raised the bar in the category. The 2005 Mazda3 offered much more than the 2005 Honda Civic. In 2006, Honda remade the Civic and matched the specs on the Mazda3 (Toyota is expected to do the same with the remake of the Corrola expexted next year). Because of this, I would not have bought a new Civic in 2005 simply because I would have been very warry on the resale price down the road when the new remake of the Civics is also in the market (ie. buyers in 2011 or so looking at 5-6 year old cars would, I presume, heavily favour the 2006 Civic to the 2005 Civic even at slightly higher prices...this would hurt the resale price of 2005 Civics). In cases where a significant upgrade to a model is expected, I prefer the risk of going with a somewhat unproven make (having company reliability reputation to mitigate the risk) to the risk of having a model which is only one year older than a significantly better remake. Of course, the best is to wait a few years and then buy the significantly better remake.....if you can wait.