New car and back to square one!

[LivingAlmostLarge]

I noticed KBB and NADA and Edmunds are behind in small car values. Right now selling online they are much higher because people are wanting like corollas, focus, and civics. So I'm not sure if it's worth it.

I know someone who bought a prius used and paid the same as the new price.

[disneysteve]

It definitely doesn't make sense to buy a used Prius if you can even find one. They are in such great demand that they command a premium price.

[Snave]

Buying new and keeping the car for 10+ years is the only time that new isn't really such a terrible deal. The people who really get hosed are the ones who buy new and replace the car every 4 years. At least if you keep it long-term, the initial depreciation isn't as big an issue over time.

In theory I agree, but I still have a hard time excepting this. The reason I say that is that a person willing to drive a car for 10 years (which I am) clearly would not care if they bought a used car that was 1 or 2 years old. If they are driving it for 10 years to get value out of it in the end, why not get value out of it at the beginning also and buy it slightly used. I scratch my head when someone buys new.

[maat55]

Original warranty that came with the car is for 3 years. Extended warranty covers additional two years. I have to have absolutely no warranty work done during 4th and 5th year to get my money back. But I can get a refund anytime (even now) as long as I do not have any warranty work done through extended warranty.

You do know that the dealership and the warranty company both make money on these warranties, have you ever wondered why.

You had 5k cash to buy a car and you ended up 20k in debt. Hmm. Here's your sign.

[Tree0164]

In theory I agree, but I still have a hard time excepting this. The reason I say that is that a person willing to drive a car for 10 years (which I am) clearly would not care if they bought a used car that was 1 or 2 years old. If they are driving it for 10 years to get value out of it in the end, why not get value out of it at the beginning also and buy it slightly used. I scratch my head when someone buys new.

Amen this is what we do.... we buy 1-2 year used and then use for 10 years.

[disneysteve]

To be fair, there are some times when new is a better deal than 1-2 years old. There could be manufacturer incentives, 0% financing or a minimal price increase over the previous year's model. And if it is a vehicle with a high resale value, the price spread may not be enough to make it worth buying a car with 12,000 or 15,000 miles on it already. There is usually an exception to every financial rule of thumb.