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Don't buy a NEW car

Posted by on Jun. 4, 2011 at 6:17 PM
  • 26 Replies

DH and I were looking into buying a second vehicle and, when I posted on here for opions on models I was looking at, this was stated repeatedly.  "New cars are the worst investment you can make.  Don't buy a new car."  So, anyhow, we bought out cars back in March, one new and one used.  The used one was HALF the price of the new one and has a $50/month higher payment because of the 0% special financing we got on the new one, BECAUSE it was new.  So...yes, in general, new cars are poor investments, but sometimes, especially when you can take advantage of special financing, they're not as bad as people make them out to be.  So, our 2011 Focus with, underbody spray, extended warranty AND all maintenance for 5 years/75000 miles added, financed for the same term, purchased within 2 weeks of each other, is $50/month CHEAPER than our 2009 Chevy Cobalt with 40,000 miles and an extended warranty.  If we'd realized how much less the Focus would have been, we'd have just bought two NEW cars and skipped the used, which we THOUGHT would save money, all together.

by on Jun. 4, 2011 at 6:17 PM
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Replies (1-10):
Mommavieve
by on Jun. 4, 2011 at 6:18 PM
When we bought our new cars, we had 6% financing. If we had bought used, it would've been at least 8%
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i.heart.rachel
by on Jun. 4, 2011 at 6:19 PM

My new car sucked. But it was a KIA. lol

BrownEyedGirl86
by Platinum Member on Jun. 4, 2011 at 6:20 PM

 i have never had a new car and I don't think I will until my children are older...thats just me - i think situations like yours are few and far btwn but hell i could be wrong!

MommaNoonoo
by on Jun. 4, 2011 at 6:21 PM

We have found that to be true also. 

Kris_PBG
by on Jun. 4, 2011 at 6:22 PM

Something to keep in mind... 

But I agree that it is probably not the norm to find that situation...

Not sure how those numbers would work if you planned to put a large chunk of the car down when buying.

We are hoping to hang onto our cars until ds2 is in K - and then trade one in for something new(er).

kjoarcik
by Gold Member on Jun. 4, 2011 at 6:23 PM

I think part of the "don't buy a new car" mentality is because they lose so much value within a year (20% of it's value is lost the first year from what I have read). As soon as you drive it off the lot, it's considered used and loses value.

If you plan on keeping the new vehicle until you have it paid off, then I don't think it's an issue. 

Kmakksmom
by Stefanie on Jun. 4, 2011 at 6:24 PM

I've always heard to buy new until I joined CM.  :)

erinsmom1964
by Ruby Member on Jun. 4, 2011 at 6:24 PM

 I bought not only new but before the actual year.  I got my 2007 Honda Element  AWD in Sept 2006.  the funny thing was I was trying to buy used but I couldn't wrap my mind around 35000 miles on something but only 5000 dollars difference.  The break in period of an engine sets for the life of the vehicle how long it can last.  I wanted to KNOW how that went.  Not to mention lower interest.  NEVER regretted it.  just like any big purchase( homes for instance) you have to buy smart.  My car has been paid off for a yr now and still has a blue book of about half of what I paid  even with 80000 miles on it and ) knock on wood) nothing but regular maintence so far.

bananahammock1
by on Jun. 4, 2011 at 6:24 PM
Agreed
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Mommavieve
by on Jun. 4, 2011 at 6:25 PM
I was just about to say that. We've run into that issue since we decided to sell one of the cars. We're about $5000 upside down in it and we don't have the savings to cover the gap. We're stuck trying to make principal only payments until we at least break even.

Quoting kjoarcik:

I think part of the "don't buy a new car" mentality is because they lose so much value within a year (20% of it's value is lost the first year from what I have read). As soon as you drive it off the lot, it's considered used and loses value.


If you plan on keeping the new vehicle until you have it paid off, then I don't think it's an issue. 

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