New Car vs. Used

sakonpure6 wrote: ↑ Hi Everyone,

My family's car is breaking down and we need a new one. Repair of our existing car is not feasible. Ideally, we would like to spend in the low $20 000 but no more than $30 000. We are in Ontario, and plan to finance the purchase, say for 7 years. We are in the market for an SUV.

I have been checking the used and new markets for a while, and there are a lot of options...
It's kind of crazy how most recent cars , say 2015 models, are within 5 to 10K of brand new cars, and charge you 6.99% interest at the minimum. I don't think it makes sense going for a used car at the price difference and increased rate when financing for long periods of time, as often the interest payments make up the difference of buying a new car.

Lots of dealers are having sales (0% interest), I have come up across the two cars following:

• Hyundai Tucson 2020 (Starting at 25K)
• Kia Seltos (Starting at 22K)

Which of both is better? Is Kia or Hyundai good?? Are there any other deals I am not aware of?

Have you bought a new car recently? Please let me know your opinion and thank you !

sakonpure6 wrote: ↑ Hi Everyone,

My family's car is breaking down and we need a new one. Repair of our existing car is not feasible. Ideally, we would like to spend in the low $20 000 but no more than $30 000. We are in Ontario, and plan to finance the purchase, say for 7 years. We are in the market for an SUV.

I have been checking the used and new markets for a while, and there are a lot of options...
It's kind of crazy how most recent cars , say 2015 models, are within 5 to 10K of brand new cars, and charge you 6.99% interest at the minimum. I don't think it makes sense going for a used car at the price difference and increased rate when financing for long periods of time, as often the interest payments make up the difference of buying a new car.

Lots of dealers are having sales (0% interest), I have come up across the two cars following:

• Hyundai Tucson 2020 (Starting at 25K)
• Kia Seltos (Starting at 22K)

Which of both is better? Is Kia or Hyundai good?? Are there any other deals I am not aware of?

Have you bought a new car recently? Please let me know your opinion and thank you !

bembol wrote: ↑ Just go with whichever you like the best?

Numbers aside, I would never base my decision over specs, gas mileage, features, etc.

ziaa wrote: ↑also with that kind of budget I would lean towards a 1-2yr old CX-5. the tuscan/setlos just seem too small to be useful.

Dynatos wrote: ↑ I'm sure the debate has happened a lot on RFD, but I never buy new. It depreciates so much as soon as you drive it off the lot.

Research some reliable makes, models, and years and then shop the used market. Look for something in a private sale that was gently used with low mileage, particularly if you have the liquidity to buy in cash. Take it for a test drive and decide if it's in good enough quality to pursue. If it's in good shape, take it to a mechanic you trust to do an honest, detailed pre-purchase inspection for a couple hundred dollars. Then make an offer and negotiate a price.

My last two cars were purchased this way. Both were driven by elderly couples who primarily used them for errands.

2009 - I bought a 2004 Honda Civic SE with <50,000 km for $8k. I sold it in 2019, after 10 years and adding over 200,000 km to it for, $2500. In the 10 years I had it, putting 60km round trip on it daily commuting to work, it was mostly just routine maintenance (and sadly that included 2 damned fan belt changes).

2018 - Bought a 2013 Toyota Corolla LE, with all of the upgrades available to that year. 70,000 km for $12k. 2011-2014 Corollas at dealerships, with more miles and fewer options, started at $13k +tax. It was driven by an older gentleman who replaces his car every 5 years when he's done paying for it. I took it to a mechanic I trust and the only thing that needed changing was the tires (which I already knew). It's so far required 0 maintenance beyond routine.

Not to spark the debate or anything, but vehicles are a liability. If you have the cash, don't finance them, and I advise against buying new. If financing is your only option, though, do as others have suggested and see if you can get a lower interest bank loan. Debt is cheap right now.

at1212b wrote: ↑ This is my method too.