Penny wise or pound foolish?

[disneysteve]

a new car is basically risk free because it is under warranty. a used car can be a crap shoot, depending on how old and what brand. even honda makes lemons.

I don't necessarily agree with this. I think a new car carries different types of risks, especially if it is the first year of a new model or redesign (which I would never buy).

Lemons are new cars, not ones that are a few years old. Most manufacturing defects show up in the first couple of years. We had a new car in 1996. It was recalled 5 times in the 4 years we owned it. Had I been looking for that model in 2000, I could have reviewed the vehicles history and learned that it had a lot of defects and avoided buying it, but I didn't have that data when the car was new.

Pretty much every company now has a certififed used car program that usually extends the warranty. Even if you have to buy an extended warranty, you can still save thousands over a new car.

[LivingAlmostLarge]

Wincrasher, hadn't considered the interest rate. But it would have been a $4k cash car, no financing. what I got was what I could buy.

Jim, I see the math. But how does it work for beater cars that are like $2-4 that you just drive for a couple of years, then when they die you let them? Versus a new car? I mean not a relatively new used car but a beater?

Wouldn't the beater come out ahead?

DS, yeah maybe I should I have wanted more input. But I think I was just too happy to get money.

[disneysteve]

Jim, I see the math. But how does it work for beater cars that are like $2-4 that you just drive for a couple of years, then when they die you let them? Versus a new car? I mean not a relatively new used car but a beater?

Wouldn't the beater come out ahead?

I had a friend in college who bought a car about every 6-8 months. He generally paid around $500 (this was in the early 1980s). During the time he owned the car, he would clean it up and make it look nicer and do minor repairs, mostly stuff he could do himself for minimal expense. Then he would sell that car and buy another. He almost always sold for about the same price he had paid and occasionally as much as double what he had paid. His cost of ownership was close to zero, maybe even negative cost (meaning profit). I always thought that was a great way to go if you had the time and inclination to do the work.

[tripods68]

Wincrasher, hadn't considered the interest rate. But it would have been a $4k cash car, no financing. what I got was what I could buy.

Jim, I see the math. But how does it work for beater cars that are like $2-4 that you just drive for a couple of years, then when they die you let them? Versus a new car? I mean not a relatively new used car but a beater?

Wouldn't the beater come out ahead?

DS, yeah maybe I should I have wanted more input. But I think I was just too happy to get money.

Many used car can go beyond 12 to 20 years as long it is properly maintained. But also about finding the right model/year that had fewer problems.

I bought my 95 Altima GLE for 3K in 2006 after researching this model for almost 6 months. I found it on Craigslist locally that a very low miles (76K). I was very skeptical about the tampering on older models since i knew this could be a scam. So I had my mechanic go thoroughly section by section-- even taking out all car seats to check for any accident marks. I also run a carfax history on it. It was all legit and found no problem. I still have it after owning it for almost 3 years this June. It still running and kicking after 14 years and counting....

[zetta]

My parents bought me a car after college graduation and put the following conditions on it: it had to be used, have less than 30k miles, cost no more than $10k, and be bought from a private party. I got to pick the make and model, although when I said I wanted to look for a Honda Accord or a Saturn, my dad said I needed to get something more fun! I decided on a Nissan 340, and he went with me to test drive it and to negotiate the price (and pay!) Watching how he bargained down the price was a great lesson.

[kork13]

As everyone can probably see, it's a choice that's very much dependent on the person/family/situation.

In my case, I had a full scholarship to college, so my parents offered to pay up to $10k for a car my senior year in college (I hadn't really needed a car before that). While they did encourage that I get a safe, reliable, economical, and also new car, I had total control over what I would get. I did all of the research and decisions myself, but I did bounce ideas off my parents. In the end, I got something that I am VERY happy with, which happened to pretty much also fit all of the things my parents were recommending (though my one additional requirement was a sporty engine--gotta love it). Getting it brand new, it cost me almost $11k of my own (by way of a loan, which I'm just about completely done with 1.5 years later ), but I couldn't be happier with my decisions. I hope to keep this car for at least the next 7-10 years, so it will have been a worthwhile expense for me.

LAL, it really does depend on what you were after. If you're happy with what you did, and retrospectively consider it a good move (which it seems you do), then it was the right one. I feel that sometimes it's too easy to second-guess yourself (and be second-guessed by others) when it really isn't necessary. You made a decision that works for you, and has been good for you in the long run. I wouldn't give it another thought beyond that.

[LivingAlmostLarge]

Zetta that wasn't going to happen. I lived 3k miles away from my folks. No driving possible! I think thus the overreaching control in someways. Not being close by in case of emergency. Being a plane ride at a minimum away I know made my mom more controlling.

What car did you buy kork13?

[kork13]

What car did you buy kork13?

Honda's '07 Civic Si. Nothing extravagent, but I enjoy it a great deal.

[PrincessPerky]

Well if you like the options, I don't think it matters to let your parents think they have control,

not like buying a different car would "show them" or change them in any way, just would be a different car.

[tripods68]

[QUOTE=kork13;209799] Honda's '07 Civic Si. Nothing extravagent, but I enjoy it a great deal.[/QUOTES]

Honda SI is a nice car. I had to part ways my RSX TYpe S 01 after owning for almost 4 years (all sup up-- full of aftermarket stuff). I love driving it to the track and do time trials, auto-x...I do miss it that part on weekends especially.

[Scanner]

We have 2 cars - one that is 10 years old and another that is going on 5 years old.

My plan is to buy a new car because I am afraid if I buy a used car at 3-5 years old, that places the "age of expiration" on both cars at nearly the same time.

[disneysteve]

We have 2 cars - one that is 10 years old and another that is going on 5 years old.

My plan is to buy a new car because I am afraid if I buy a used car at 3-5 years old, that places the "age of expiration" on both cars at nearly the same time.

Do both cars get equal usage? Can you adjust your driving to work around that? For example, since we have two cars, We will sometimes take mine on a long trip and other times take my wife's so that I regulate how many miles are getting put on each one. Both of our cars are getting up there, so I try and pay a little more attention to that. Of course, I don't have a crystal ball to tell me when each will die so it is a guess at best.

[Scanner]

My crystal ball was owned by the magician, Murphy, and it tells me if I have 2 cars the same age - the transmissions will die within 3 months of each other.

No, let's see - we try to put the mileage on our Taurus (yes, I decided to keep it back in October). It's a 1999 and it has 97K on it. So, when we go on a long trip to see my parents, or her family, each about 70 minutes away, we put the miles on that. Plus, even though my practice is 1 mile away, sometimes I pull hours at the hospital which is 22 miles away. All in all, I put about 10K/year on that car. My wife only puts 8K/year on her car.

So, the older car is getting the miles right now. The Matrix has about 38K on it and it's a 2004 (a virtual creampuff!)

As is the tradition on my side of the family - the man gets the older car. My father always told me to do this so the woman was in the "safer" car. . .of course, with roadside assistance being part of auto ins. nowadays, I guess that's a little passe but I still do it. So, if I get a new minivan, I would get the Matrix for commuting (at about 40K), which is a good thing because it's good on gas. And then the miles would continue to be put on the older car.

This may all be confusing but it works in my head

I guess we could continue to manage a 3-5 year old car and a 10 year old car and just trade in 3 years following that (trade in at 8 years old and at 13 years old) but I guess I want my wife to be in a car at least 5 years young so I am just electing to buy new and do my part in stimulating the economy.

PS: As you can sort of see in this plan. . .a car gets circulated in my family for about 10-12 years.

[jIM_Ohio]

My crystal ball was owned by the magician, Murphy, and it tells me if I have 2 cars the same age - the transmissions will die within 3 months of each other.

No, let's see - we try to put the mileage on our Taurus (yes, I decided to keep it back in October). It's a 1999 and it has 97K on it. So, when we go on a long trip to see my parents, or her family, each about 70 minutes away, we put the miles on that. Plus, even though my practice is 1 mile away, sometimes I pull hours at the hospital which is 22 miles away. All in all, I put about 10K/year on that car. My wife only puts 8K/year on her car.

So, the older car is getting the miles right now. The Matrix has about 38K on it and it's a 2004 (a virtual creampuff!)

As is the tradition on my side of the family - the man gets the older car. My father always told me to do this so the woman was in the "safer" car. . .of course, with roadside assistance being part of auto ins. nowadays, I guess that's a little passe but I still do it. So, if I get a new minivan, I would get the Matrix for commuting (at about 40K), which is a good thing because it's good on gas. And then the miles would continue to be put on the older car.

This may all be confusing but it works in my head

I guess we could continue to manage a 3-5 year old car and a 10 year old car and just trade in 3 years following that (trade in at 8 years old and at 13 years old) but I guess I want my wife to be in a car at least 5 years young so I am just electing to buy new and do my part in stimulating the economy.

PS: As you can sort of see in this plan. . .a car gets circulated in my family for about 10-12 years.

Scanner- we generally buy our cars new, and the way it works for us is each time finance it for 1 year less than before (if you don't pay cash). If last car was financed for 4 years, finance the next one for 3.

In general my math suggests if you buy a car new and finance it for 3 years it has a lower cost of ownership- MOST of the time, than buying a used car 2-3 years old which is same make/model.

[Scanner]

JimOhio,

You are probably right as I have come to learn to never question your arthimetic.

Again, I am just trying to space out car purchases as much as possible. I would be bummed to purchase a new car and then, bam, have the transmission go on the older car or something but I suppose that is what an EF is fer. . .