Cost analysis - used car vs new car

[NDman]

Is there a site or place I can get some sort of bench marks on cost analysis on buying a new car vs a used car?

i.e. Strictly financially speaking, would I be better off to buy a used car, say 3-5 years old, drive it for 5 years or so, sell it for a much lower price; then repeat with another used car; versus keeping a brand new car for 10 years? I understand that's a lot of assumption to be made (make/model of the car, not caring for driving a brand new car, etc). I also know you have to factor in the increasing maintenance costs for older cars too.

What is your opinion and is there anywhere I can find some comparisons or guideline on that?

[Jucius Maximus]

No analysis is needed. Depreciation is fastest at the beginning.

I saved $10K on a 28K car by getting it one year old. The other 18K depreciation will be spread over 7-10 years.

[TodayHello]

No analysis is needed. Depreciation is fastest at the beginning.

I saved $10K on a 28K car by getting it one year old. The other 18K depreciation will be spread over 7-10 years.

Jeez, what car depreciated that fast 1yr from new?

Cobalt SS comes to mind ... ?

[Jucius Maximus]

Jeez, what car depreciated that fast 1yr from new?

Cobalt SS comes to mind ... ?

Well I am including the cost of PDI, taxes, etc. I drive a Mazda6 and it would have cost $10K more to get the same car new on the road including all fees, taxes, etc.

[CheapScotsman]

I got a one year old Toyota Sienna with 10k miles out of the US for just more than 1/2 the price new in Canada (CDN $39K out the door in Canada, CDN $22K out the door in Canada). Approx 45% depreciation in the 1st year.

From this thread (http://www.redflagdeals.com/forums/s...42#post8219542) he can buy new for $35K or 3 year old used for $12-$15K. Its not going to drop another $20k in 3 years.

As Jucius said, its pretty straight forward.

[stuntman]

Is there a site or place I can get some sort of bench marks on cost analysis on buying a new car vs a used car?

i.e. Strictly financially speaking, would I be better off to buy a used car, say 3-5 years old, drive it for 5 years or so, sell it for a much lower price; then repeat with another used car; versus keeping a brand new car for 10 years? I understand that's a lot of assumption to be made (make/model of the car, not caring for driving a brand new car, etc). I also know you have to factor in the increasing maintenance costs for older cars too.

What is your opinion and is there anywhere I can find some comparisons or guideline on that?

Depends on what you are buying. I found the Civics and Corollas were not going as cheap used as I thought they would. I quickly gave up and bought new. I will sell in 6 years while it still has warranty and hopefully get 10-11K.

I will take a hit of 2K per year, but, no repair bills except brake pads, muffler and regular maintenance. I figure I will have less stress and therefore certainly be ahead in the end.

Its better than leasing.

stuntman

[CheapScotsman]

Depends on what you are buying. I found the Civics and Corollas were not going as cheap used as I thought they would. I quickly gave up and bought new. I will sell in 6 years while it still has warranty and hopefully get 10-11K.

I will take a hit of 2K per year, but, no repair bills except brake pads, muffler and regular maintenance. I figure I will have less stress and therefore certainly be ahead in the end.

Its better than leasing.

stuntman

Hmmm ... I've put $5k in maintenance in the last 6 years into my 1984 honda civic (including a big rebuild type expense after it was sitting for 2 years hardly being driven and $500 in new tires) plus my insurance rates are much lower than new ... and no depreciation ... but, yes, it is an older car.

My friend has a 2000 civic and the only issues in the last 3 years has been two O2 sensors.

I think the best overall $ stategy is to buy them after major depreciation hit (2-5 years) then drive them into the dust.

but either is better than leasing.

[bobbycole]

but either is better than leasing.

can you or someone explain?

[stuntman]

Hmmm ... I've put $5k in maintenance in the last 6 years into my 1984 honda civic (including a big rebuild type expense after it was sitting for 2 years hardly being driven and $500 in new tires) plus my insurance rates are much lower than new ... and no depreciation ... but, yes, it is an older car.

My friend has a 2000 civic and the only issues in the last 3 years has been two O2 sensors.

I think the best overall $ strategy is to buy them after major depreciation hit (2-5 years) then drive them into the dust.

but either is better than leasing.

Insurance rates: I went from a 2000 Civic with basic insurance and deductable to a 2009 Corolla with full coverage and zero deductable. Cost me $400 more. I was really surprised.

I agree that if it does the job and you can afford to have it in the shop: Yes a 2-3 year old car would be the best deal if you can find one your happy with. I was not in that position. But, I do not think I will be taking such a big hit for the luxury of a new car. I will drop you a line in 6 years if/when mine is ready for sale :P

I think you can get a good used 9 year old 2000 Civic for around 3k-4K. One that is 10 years newer will cost 23K-24K.

[stuntman]

can you or someone explain?

Your kidding right? You need someone to explain that leasing is not a frugal/cost effective means of owning a personal car?

How about stating why it is a good thing.

stuntman

[Vladimir]

I think it mainly depends on brand of car.
A civic for example would probably be better new vs 1 or 2 years old.
If you really want a deal can usually get a demo, almost brand new and dont pay pdi/freight as well as quite a bit more off.

[neospice]

Keep in mind that in today's market, buying new is sometimes a good option. If you're paying cash then probably used is a better deal but if you're financing you can get a really low rate, long-term on a new car vs higher-rate on a used car. You get the full warranty, knowledge that no one else has beaten on your car, less chance of the car breaking down vs a used one, etc.

[boyoflondon]

All depends on what you are buying.

I just got an 09 Fusion SEL for $19k on the road .... Normally, it would have been $30+ ... 2 year old models are fluctuating around the same price.

For me, new would have been the way to go ...

[VivienM]

Your kidding right? You need someone to explain that leasing is not a frugal/cost effective means of owning a personal car?

How about stating why it is a good thing.

Leasing is a cost-effective, low-risk means of always having an under-warranty, <4 year old vehicle. Have you tried trading in a 4 year old owned car? The stealerships will rob you blind... and if you try to sell privately, it takes tons of time and effort. And depending on what car/options/colour you got, it may be hard to find interested buyers...

Obviously, always driving a <4 year old vehicle (whether leased, bought-after-trading-in, or bought-after-privately-selling) will cost you more than buying something lightly used (or even new) and driving it into the ground (unless you got unlucky and bought something very unreliable).

Yet, plenty of people compare the cost of apples (always having a <4 year old car) and oranges (having a >4 year old car for... 5-10 years) and say "leasing is bad".

[D-3vil]

Hmmm ... I've put $5k in maintenance in the last 6 years into my 1984 honda civic (including a big rebuild type expense after it was sitting for 2 years hardly being driven and $500 in new tires) plus my insurance rates are much lower than new ... and no depreciation ... but, yes, it is an older car.

My friend has a 2000 civic and the only issues in the last 3 years has been two O2 sensors.

I think the best overall $ stategy is to buy them after major depreciation hit (2-5 years) then drive them into the dust.

but either is better than leasing.

lol, I guess there was a reason behind choosing that username when joining

Really, with a new car, you're paying a bit for peace of mind. A new car has numerous extra safety features added. Its pollution levels are also about 1% of the 25-year old car (in terms of smog-forming pollutants), so you'd be doing your part in preserving air quality. Of course, it's debatable how many years it would take to ammortize the carbon footprint of building the new car.