I have the money to buy a new car, I would not do it again in my lifetime. Been there, done that. It's cool the first 6 months to a year. I clayed and waxed my car like a baby myself every 4 months with a sealant. Then, **** hits you on the face. Every month there is a new car door dings other people made and I get pissed off for every new dings. Now, I don't give a **** anymore, I park whenever I want... Ding other people cars whenever I feel like it (i.e this brand new shiny car park in front of store!) My car is almost 5 years old with 0 problem whatsoever and drive like brand new. Why would I want to buy new when I can buy a lot of 5 year old cars out there with absolutely 0 problem and save huge money?
New car $25,000. If you keep the car for 10 years, conservative estimate car is going to be around $4000 after 10 years. $21,000/10 years, you are losing at least $2100/year as long as you have the car
and at least double for the first 3 years.
If you are buying a good car worth $8000 car over ten years, it's probably worth $2500. $8000-2500 = 5500/10 year - Losing $550/year compare to $2100/year only sounds like a winner for me.
Car expense there you go, cold hard truth. Confession of a previously fu*ked new car buyer... Next car purchase is going to be at least in 2028 for me, and will never buy new again. Driving this one until it becomes a beater :-D
This is so variable from car to car and person to person, you can't possibly make the blanket statement that buying a new car is always bad.
There are some big things to consider when comparing cars on value:
MPG:
MPG ratings on cars have increased by quite a bit recently, so you much be sure to compare that the new car you are looking at gets the same MPG as the used comparison car to make this a fair comparison.
USED VS NEW OUTRIGHT COST:
Additionally, used cars have increased in value a ton since Cash for Clunkers -- I've looked at some cars that are selling for more used than new right now (which makes no sense!).
INSURANCE RATES:
Also, if you are comparing an older car to a newer car, the safety differences may mean that the new car gets lower insurance rates than you would have expected, making it nearly as good a deal on this front as the used car.
CARS THAT HOLD VALUE:
I sold my low-end model ten year old car for $7,000. Not all cars will hold their value that well; it's good to look for one that will.
FINANCING:
Can you pay cash? If you can, your cost of a new car will be much less than if you finance, assuming you wouldn't get much return elsewhere (unless you own stock in Apple with that money...haha).
HOW LONG WILL YOU USE THE CAR?
Drive any car at least ten years and you'll significantly decrease your costs of ownership...
REPAIR COSTS/WARRANTIES:
Most new cars come with a warranty of sorts for a few years. You can get killed on repair costs if you buy the wrong car. While new cars (usually) cost more, they cost more for a reason, and the reason is mostly because they are new and need fewer repairs for the first few years.
BARGAINING:
You might be able to bargain down a greater percentage on a new car than a used car. Do this! It will majorly decrease your cost of ownership! Look for groups that will give you discounts on new cars: sometimes there are deals offered through your work. Or just walk into a dealership, tell them you want to buy a car and tell them the price you want to pay. If they balk, walk away. If they don't balk, pay cash, unless they give you 0% interest for some great length of time and you could pay cash anyway.
MILES DRIVEN/TYPE OF DRIVING:
How many miles do you drive every year, and in what conditions? This will influence your gas costs, insurance costs, repair costs, future worth of your vehicle, and most other costs associated with driving. If you barely drive, an old car that gets poor mileage might be a fine choice. If you drive a lot, your variable costs will go up a lot with this kind of a vehicle, and you might be best served with a newer vehicle.
Having one put together with the specs I was looking for (MyFordTouch, leather, rear cam, pano roof, power liftgate, voice nav)...so I'll post some pics in 6-8 weeks when she arrives!
