New verses Used......Make your best case

People are saying they cannot get a used vehile for thousands less than new. I would say their negotitating skills are clouded by the thought of a new vehicle.

Nowadays I would be more afraid of a lemon new than a used car with low miles. People who buy new tend to be a little more OCD and HAVE to maintian it to keep their waranty in effect. Todays vehicles can take a lot of abuse and stand up to it.

I found a used low milegae Tacoma in one trip to Charleston..The dealer had three of them. All low mileage 08/09/ 2010. I chose the oldest with the lowset miles and offered the dealer $3000 less than they were "asking" and it was an easy sale. They made thier $2000 and I saved $7500. Win win. The other two were priced high but I am sure they had $5000 mark ups as well. All Hondas and Toyotas tend to have high lot marks and a big spread between trade and retail becasue the publc believes the depreciation is low and they use them to see NEW INVENTORY...but will take an offer and sell the used one IF someone does not want to buy new.

Its a great sales tactic and I see here it works well. Guys see $24,995 on a 2009 vehicle they can buy new for $27000 and decided what the hell may as well buy new without even trying to deal on the used one. The dealer doesn't care because the used mark is selling the new inventory! The buyer does not realize they only have $19,000 in the 09 and the dealer would take $21,000 in a heartbeat on a clean deal and save $5000 in extra cost and $7000 deprecition on the new one in the first two years Vs SAVING $5000 and suffering only $4000 depreciation on the 09 going forward two years,. That is a huge savings no matter how you slice it,

 

LOL Its a GREAT feeling until about the 30th month when you realize you are only half way there and your truck is 2 1/2 years old and .....used.

That same $500 that felt "worth it" when the new car smell was still ripe is the same anchor one pays on a 3 year old ehicle with another $12,000 to go. $500 a month on a 3 year old used car is not as much fun to pay anymore ........and thats when the trade bug hits.
It goes like this

"Well I am already paying $500 and I have another two years to go so may as well buy a new one" And away goes money down the drain........

 

If you throw in all those mods you have done, I'm sure someone would want that truck as it sits now...

 

You don't KNOW what they were "going for" You only know what they were PRICED at and the dealer KNOWS when you see those inflated prices, you BELIEVE them becasue well "gwatdam its a Tacoma" and you WILL BUY NEW...... very old trick Honda and Toyota dealers have done for ages becasue of their great resale reputation which is really only good after FOUR YEARS Not in years one through four.

The truth is you could but the used one for far less....all day long.

 

I did not start this thread to change MY mind. I wanted to see what the thought processes are of those who do not think like I do. I am not trying to be convinced to buy new. Been there done that.

That said I am heartened by the numbers who do buy used and save some money. I also wanted to hear THEIR stories. I already know why people buy new. I was more curious on how many puchased and found those "impossible" good deals used.

So far this is what I am hearing for buying new:
1. The believe thay CAN'T buy used for a decent savings.. (partly becasue they are already predisposed to by new)
2. They believe all prevous owners ruin their vehicles and cannot tell the difference
3. They believe there is value in a new car warranty in the forst two years
3.They believe the interest rates make it a better deal. Not realizing every GREAT new car deal means higher depreciation for the used car.
4. They have always done so or have had a horror story with a used vehicle in the past.
5. They have resigned themselves to perpetual car payment so why not be in a new vehicle every few years.

6. They like the new car smell and the "idea" that no one has driven their vehle before.

Have I covered it?

BTW Carmax is an EXCELLENT place to find out what your vehicle is really worth (Actual Cash Value) right now...how? Becasue they WILL buy your vehicle right now (and in most cases give you more ACV than a dealer will on trade after all is said and done. That said they are there for people who do not want to SHOP around or NEGOTIATE. That is why they can get the prices they do. If you watch closely though you will see them LOWER prices as a vehicle sits. They too always put a premium on Hondas and Toyotas and see if they sell.

 

A four year old vehicle depreciates far far less going forward than a new car....and you should always worry about deprciation UNLESS you are rich..but people don't get rich without paying some attention to things like depreciation and interest

Changing cars every years new or used is not wise. The best way to buy any vehicle for maximum savings from a purely financial standpoint has been said to be 4 years old less than 5K miles with cash.

Do you realize if you drove the same used 09 $22,000 TRD truck for 10 years at 12k miles a year STARTING with 24K you could save $40,000 and easily $30K IF you needed some major repairs along the way which is unlikely if you take care of it. .. And still have a vehicle with some decent value

 

Its pretty obvious to me why your problem started.... you bought a 93 Blazer and a freakin Ford Ranger. What do you expect to happen when you buy crappy vehicles?

I see you are 26 and too naive to realize that if you started now while you are young, and instead of paying $400-500 on a truck payment and invested that same amount wisely, you would be a multi-millionaire when you retire. Unfortunately most young people have absolutely no concept of that and only care about a "sweet ride"

 

This.

Outside of collectible vehicles, every day you use your vehicle you reduce its value. The rate of depreciation for a brand new car is far steeper for the first few years of ownership but after approximately 5 years, the depreciation rates for new and used cars have become more consistent.

 

And it is within THIS period after four years where Toyota and Honda shine the brightest...and hold their value well

 

So, you think you got a great deal on your used truck and anyone that bought new is a joke? Let me get a good look at that 3 yr old truck and I am sure I can find some dirt.

 

I got a great deal on my Certified 2005 Tacoma last year...

 

What payment yoyo?

 

"certified", just wtf is that? is there some type of sliding scale the dealers finance guy uses? different levels of coverage i.e. $500 off for a broken motor but they still call them certified and tack on $2k to the price

 

I wonder why this turned into a pissing match?

I assume each person here made decision whether new or used based on their individual situation. What works best for me doesn't always make sense for the next guy. To each there own.

 

Nope I get a used car with a factory backed warranty.





Toyota Certified Used Vehicles come with an extensive used-car warranty — one of the best in the industry.

Each Toyota Certified Used Vehicle comes with a 3-month/3,000-mile comprehensive used car warranty from date of certified purchase [1]. This warranty covers any repair or replacement of components which fail under normal use due to a defect in materials or workmanship.

Each Toyota Certified Used Vehicle is also backed by a 7-year/100,000-mile Limited Powertrain Warranty (from original date of first use when purchased as new) [2]. We also add a 7-year/100,000 mile 24-hour Roadside Assistance Plan (from original date of first use when purchased as new) [2]. For the enhanced peace of mind of an available Extended Vehicle Service Agreement, please visit Toyota Financial Services.

Source - http://www.toyotacertified.com/warranty.html

 

Who cares about a little dirt?

The "dirt" was at a savings of $7500 and far less depreciation going forward..... WELL worth it.

24K miles I am sure it was not all easy. But There are a ton of things one can find in the plus and minus column when looking used. There are places one cannot clean mud from. Dealer Service records, Bed condition, Interior wear, whether or not all the tiedowns and dodads are still with the truck, the owner's manual and all paperwork and key codes. Lots of little things reveal the previous owner as OCD or not. Not all used vehiles are bargains.

Would I buy an 09 modded 4WD TRD OR from a 20 something in California? Not a chance for anything more than $18,000. You can tell alot about a previous owner. It is usually stamped all over the vehicle in many very subtle and not so subtle ways.

 

Yeah I completely agree that saving money is a wise and prudent thing to do. No question. But your line about being a "multi-millionaire" just isn't true. You know who tells you that it is? The investment industry.

The fact is Gen X is the first gen slated to do worse than the previous generation, not because they didn't invest wisely, but because we're all paying the penalty for a nation collectively living beyond it's means. And generations after X are seeing the same thing. So is saving money smart? Absolutely. Telling a 26 year old kid he'll be a multi-millionaire if he'd just invest that money wisely instead is not true. Not anymore. Those days have unfortunately sailed.

 

I've had no issues. Used vehicles are a mixed bag by definition. At least your friend should have been able to go into the dealer and have that fixed at little to no cost. Try that with a non-certified car.

 

The additional cost of the "certified" vehicle is not worth it becasue you can get ALL those things for less with one of those discounted Extended Service Contracts some buy. Certified vehicles cost the dealer around $600-$800 more. and they make a profit on that cost. I pass on those when possible.

Hell Sparks here had an 08 Tacome Sport TRD in black with 31K "Certified" for $24,995. The seats were stained badly, the back gate look like it have been hit buy the nose of a boat than ball peened out, The back seats had what was a custom stereo system wires under them, It reeked of cigarettes (and the lighter confirmed) and had an accident on Carfax.....Was obviouly owned by a kid who was not OCD. Certainly not worth even the $22K I got them down to before deciding to take a trip out of town to look further.

So much for "Certified"

 

No doubt, you pay a premium for a certified vehicle. The few extra dollars spent on piece of mind was worth it to me.