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Buying a used car, might as well buy new?

Buying a used car, might as well buy new?

Old Aug 5th 2016, 4:19 am
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Default Buying a used car, might as well buy new?

I know that used car prices in the US are crazy compared to the UK but would like a bit of advice. At present while I get settled I bought a 2003 Hyundai Santa Fe, it needed a little bit of work but as I'm able to do it all myself it wasn't a big deal, I plan to keep it a few years as my beater car.

Anyway, once we get jobs and settled, I want to get my wife a new or nearly new car. In the UK you can usually get a year or two old car with under 20,000 miles for a considerable discount compared to new. From my initial research here that doesn't seem to be the case. I am looking at a Ford Fusion or Escape and anything 2014/15 or even 16 has at best more than 25,000 miles on the clock for not much less than new models! I know that average mileage here is more than the UK but a lot of the cars must be ex lease or company cars because most are in the 30-40,000 mile range (for 2015 models). For example in the city I'm in a 2014 Escape is for sale for nearly $21k, and a dealership in the next town is selling 2017 Escapes for $26k new. To my mind, for a $5k difference I'd rather buy new, especially as I plan on keeping the car for 10 years.

So, have most of you bought used (2 yrs old max) or new?
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Old Aug 5th 2016, 7:47 am
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Default Re: Buying a used car, might as well buy new?

In the USA we buy new. We tend to keep a car around 7 or 8 years. We just a car in the UK and we bought one that was 18 months old, ~10k miles.
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Old Aug 5th 2016, 8:49 am
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Default Re: Buying a used car, might as well buy new?

Usually people buying used cannot afford new, a large number of people in a car required society. Which helps explain the higher resale prices.
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Old Aug 5th 2016, 4:10 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by Harveyspecter View Post
... have most of you bought used (2 yrs old max) or new?
For the cars that I was looking at, the difference in price between 2 years old and new was maybe 15%, but a new car comes a much longer manufacturer warranty and better finance options. I bought a new car with 0% APR auto loan, and paid it back over 18 months. If I keep the car for ten years, I'll have no car payment for the next 8.5 years. I'll use the next 8.5 years to save up for my next car, which I will potentially be able to buy with cash.

Last edited by cautiousjon; Aug 5th 2016 at 4:15 pm.
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Old Aug 5th 2016, 4:27 pm
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Default Re: Buying a used car, might as well buy new?

I just bought a year old Kia, with 30k for about 40% less than MSRP. You need to know where to look. There are auctions where you can buy nearly new cars but you would need to take time off work. My Jeep was 9 months old with 9k, retailed for around $34k , I paid $19k. Because it was less than a year old I was able to buy a lifetime Jeep warranty. You can find them, it's just a lot harder. You could try Hertz car sales and buy an ex-rental. I decided to buy the most recent car on finance instead of cash. I am paying 1.6% on used car loan.

Last edited by mrken30; Aug 5th 2016 at 4:31 pm.
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Old Aug 5th 2016, 8:25 pm
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Default Re: Buying a used car, might as well buy new?

The biggest discounts seem to come from cars who sell for $50K+ mark when new and they get much better discount at the 3 year mark, but locally I think the reason might be partially due to lemon laws and dealers, where you have different levels of responsibility at the 3/5/7 year mark as well as mileage.
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Old Aug 5th 2016, 11:18 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by cautiousjon View Post
For the cars that I was looking at, the difference in price between 2 years old and new was maybe 15%, but a new car comes a much longer manufacturer warranty and better finance options. I bought a new car with 0% APR auto loan, and paid it back over 18 months. If I keep the car for ten years, I'll have no car payment for the next 8.5 years. I'll use the next 8.5 years to save up for my next car, which I will potentially be able to buy with cash.
Thanks Jon
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Old Aug 5th 2016, 11:52 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by cautiousjon View Post
For the cars that I was looking at, the difference in price between 2 years old and new was maybe 15%, but a new car comes a much longer manufacturer warranty and better finance options. I bought a new car with 0% APR auto loan, and paid it back over 18 months. If I keep the car for ten years, I'll have no car payment for the next 8.5 years. I'll use the next 8.5 years to save up for my next car, which I will potentially be able to buy with cash.
That's generally what I do but over 5 years. If it lasts longer than 5 years, I am driving for free. Thats why I like to get atleast a 5 year warranty on a car. Most of the popular cars are difficult to get 0% on, but certainly under 2%. Quite often its a cash discount or low finance, sometimes it better to take the cash.
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Old Aug 6th 2016, 12:03 am
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Default Re: Buying a used car, might as well buy new?

Originally Posted by mrken30 View Post
That's generally what I do but over 5 years. If it lasts longer than 5 years, I am driving for free. Thats why I like to get atleast a 5 year warranty on a car. Most of the popular cars are difficult to get 0% on, but certainly under 2%. Quite often its a cash discount or low finance, sometimes it better to take the cash.
Certainly. I had no credit history when I bought this car, and at the time, Mazda Capital Services was waiving the interest on any new car loan for those with certain visa types (I have an L1, which qualified). There was no option to take a cash discount, otherwise I would have probably taken that instead. I paid about $200 over invoice, and that was as good a deal as I could get at the time. The main reason for me buying the car on finance was to kickstart my credit score, which it definitely did.
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Old Aug 6th 2016, 2:51 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by mrken30 View Post
I just bought a year old Kia, with 30k for about 40% less than MSRP. ....
Kias have a reputation for depreciating like a rock. For many people, the biggest appeal of buying a Kia is being able to afford a new car when they don't have a new car budget, therefore a used Kia had lost much of its appeal.

Last edited by Pulaski; Aug 6th 2016 at 3:46 pm.
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Old Aug 6th 2016, 3:27 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by mrken30 View Post
I just bought a year old Kia, with 30k for about 40% less than MSRP. You need to know where to look. There are auctions where you can buy nearly new cars but you would need to take time off work. My Jeep was 9 months old with 9k, retailed for around $34k , I paid $19k. Because it was less than a year old I was able to buy a lifetime Jeep warranty. You can find them, it's just a lot harder. You could try Hertz car sales and buy an ex-rental. I decided to buy the most recent car on finance instead of cash. I am paying 1.6% on used car loan.
But that's my point. I would expect a 40% discount on a 12 month old car with over double the mileage it should have. I'm in no immediate rush so will keep looking around but thanks for the heads up. Looking at some of the deals you can get new at some dealerships I will probably end up going that route as it will kill two birds with one stone in helping me get a credit rating too.
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Old Aug 6th 2016, 4:11 pm
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Default Re: Buying a used car, might as well buy new?

I discovered the same thing when I went to buy a car. 2nd or 3rd hand cars, over ten years old, that have over 100k on the clock, 4 to 5 grand!!
they weren't even in good shape! some ad's on craigslist explained how the clutch or head gasket had gone but still wanted thousands!








I eventually settled on a 2003 mini cooper S, 1.6 supercharged 6 speed manual (so nobody else can drive it)
the owner had a full stack of service history papers and had taken great care of it. he had even bought the cooper works kit for it off mini. not sure what it is exactly but apparently it makes it faster.


it was exactly what I wanted, fun to drive, fuel efficient, manual.
Some idiot woman in an suv rear ended me after about 4 weeks of owning it. I was waiting at a give way/yield sign to merge into traffic and this moron came flying up behind me. fortunately it was all fixed on her insurance and I got to drive around in a big shiny Chrysler for a week.


One other reason I bought used is I didn't want to be making the monthly payments. Just in case I ever lost my job (touch wood) and I wouldn't be able to pay for it.
I fully intend on buying new next time around though.
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Old Aug 6th 2016, 4:22 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by cheradenine View Post
I discovered the same thing when I went to buy a car. 2nd or 3rd hand cars, over ten years old, that have over 100k on the clock, ......
100,000 miles is nothing, I would expect most five year old cars to have approaching that. ..... But if they're highway miles and if the car has been serviced regularly (which is a mighty big "if"), then 100,000 miles isn't really a problem.
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Old Aug 6th 2016, 4:31 pm
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Default Re: Buying a used car, might as well buy new?

Originally Posted by Pulaski View Post
100,000 miles is nothing, I would expect most five year old cars to have approaching that. ..... But if they're highway miles and if the car has been serviced regularly (which is a might big "if"), then 100,000 miles isn't really a problem.
perhaps it was more, probably around 200k.
It was the general condition of the cars that bothered me. dents, chipped paint, scratches, interiors that looked like a teenagers bedroom 'floordrobe'.
and of course when there is a serious issue but still expect a lot of money.


when the car looks like that externally you tend to become sceptical that the owner diligently cared and serviced the engine. unless of course they have the service papers!
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Old Aug 6th 2016, 4:52 pm
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Default Re: Buying a used car, might as well buy new?

Yea, what to do?
I've got 12 months to go on my lease ($278 per month) but I only have 3,919 left on the lease.
What to do?
I think I will wait until the miles run out and then park it. Does that make sense?
Generally speaking if I put $1999 down my lease would only be $199 per month.
What to do?
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