New car? Bahh, buy used...

[Grasshopper27]

New cars make zero sense unless you just HAVE to have new at any price, or have a ton of cash. These cars cost about 50% more when new just two years ago. Do you really want to buy something new only to have it lose half its value in two years?

2001 Mustang - $10,995

2001 Taurus - $11,990

2001 Focus - $9,990

2001 Cavalier - $7,995

2001 Neon - $8,995

I pulled up these cars for another thread, but thought they made a worthy thread of their own.

Rule of thumb for buying cars... Jap cars you buy new, American and German cars you buy used. Hondas just don't lose that much value in their first two years.

Getauto.com - a great web site for finding used cars...

Grasshopper

 

[vi edit]

Dunno if I agree on German cars. The Passat has the highest residual of cars in the $20k-$30k midsize sedan market. It beat out the Accord and the Camry. The 3 series have excellent residuals as well. It's best to make your decisions based upon the specific vehicle in mind. If you want a Ford, Dodge, GM, or lesser Japanese vehicle (mitsubishi, izusu, suzuki, and even nissan), then buy used. But for others, it's on a case by case situation.

[edit] The Mini also has the highest residual of just about any car on the market at the moment.

 

[flot]

Isn't the real lesson here "don't buy POS american cars that lose half their value in 2 years?"

Although I do agree, used cars can be a bargain. However in my experience the best cars to find are those with remarkably high highway miles that have been well maintained.

 

[Grasshopper27]

Originally posted by: vi_edit
Dunno if I agree on German cars. The Passat has the highest residual of cars in the $20k-$30k midsize sedan market. It beat out the Accord and the Camry. The 3 series have excellent residuals as well. It's best to make your decisions based upon the specific vehicle in mind. If you want a Ford, Dodge, GM, or lesser Japanese vehicle (mitsubishi, izusu, suzuki, and even nissan), then buy used. But for others, it's on a case by case situation.

My brother JUST bought a used Passat on Friday, no kidding...

He bought a 2002 Seafoam (puke) Green Passat, V6 with everything. Sticker is $30,400, he paid $23,200 for his with 14,000 miles.

That is one heck of a discount for a 9 month old car with 80% of the factory warranty (4 years, 50K total) left...

Why on Earth would you buy that car new? (except to avoid the Seafoam Green of course)

Grasshopper

 

[Grasshopper27]

Originally posted by: flot
Isn't the real lesson here "don't buy POS american cars that lose half their value in 2 years?"

ROTFL!!!

True enough...

I just bought a 2000 Suburban LT that stickered at nearly $50K with the extras it has in it. Paid $19,200 for it with 83,000 miles last week. It was owned by a family with a boat and they used it to take the boat down to the Gulf of Mexico, so most of those miles were on the highway. The thing runs like a champ, looks new both inside and out, and I didn't pay half the cost of a house to buy it.

Although I do agree, used cars can be a bargain. However in my experience the best cars to find are those with remarkably high highway miles that have been well maintained.

Once a car gets more than 4 or 5 years old, the price doesn't drop nearly as much each year...

Grasshopper

 

[Vette73]

You buy new for better rates and choice of items in and on car.

When my Parents got there first Camaro they looked at one that was a year old. BUT once you take into account there were no cash back awards, it had a higher % rate, and did not have all of its warrenty. The NEW car was several K cheaper.

You people are only looking at face price, not full payment and overall vaule.

 

[vi edit]

He bought a 2002 Seafoam (puke) Green Passat, V6 with everything. Sticker is $30,400, he paid $23,200 for his with 14,000 miles.

And my '00 Passat Wagon w/ V6 and 50k on clock still still retails for nearly $22,000. In my area, where Passats are HIGHLY desired, you wouldn't get anywhere near a deal like that.

 

[Grasshopper27]

Originally posted by: Marlin1975
You buy new for better rates and choice of items in and on car.

When my Parents got there first Camaro they looked at one that was a year old. BUT once you take into account there were no cash back awards, it had a higher % rate, and did not have all of its warrenty. The NEW car was several K cheaper.

You people are only looking at face price, not full payment and overall vaule.

Then your parents were looking at the wrong used Camaro...

They lose so much value the minute they are driven off the lot it is scary...

2001 Camaro - $11,788

That car cost about $20,000 when new, it has lost 58% of its value in two years and only 16,000 miles of driving.

 

[vi edit]

V6 pony cars TANK. The V8's retain value pretty well.

 

[Grasshopper27]

Originally posted by: vi_edit

And my '00 Passat Wagon w/ V6 and 50k on clock still still retails for nearly $22,000. In my area, where Passats are HIGHLY desired, you wouldn't get anywhere near a deal like that.

He did get a good deal, but then I am quite good at finding them for friends and family...

The local dealerships wanted $28,000 for a similar car, just $2K under the cost of new, what a joke!!!!

:|

Grasshopper

 

[Grasshopper27]

Originally posted by: vi_edit
V6 pony cars TANK. The V8's retain value pretty well.

Sigh...

Want a Z28 comparison then?

Fine...

2001 Camaro Z28 V8 - $17,995

That car costs $27,000 new, so it has also lost about 58% of its value...

Grasshopper

 

[vi edit]

The mustang fairs a little better. Resales *usually* go in the sh!tter when a car discontinued. Exceptions to that include Supras, RX-7's, and 300ZX's.

 

[SuperTool]

Originally posted by: grasshopper26

Originally posted by: vi_edit
V6 pony cars TANK. The V8's retain value pretty well.

Sigh...

Want a Z28 comparison then?

Fine...

2001 Camaro Z28 V8 - $17,995

That car costs $27,000 new, so it has also lost about 58% of its value...

Grasshopper

Well, those math lessons lost even more value 18K is 67% of 27K, so the car lost 33% of its value

 

[Grasshopper27]

Originally posted by: SuperTool

Well, those math lessons lost even more value 18K is 67% of 27K, so the car lost 33% of its value

Err, I just did the math backwards, what's the big deal?

Anyway, $18K into $27K gets me 0.63, or 63% Where did you get 67%?

In any case, that car still has half the factory warranty left, it is still gonna smell new, and it costs $9,000 less...

Grasshopper

 

[Grasshopper27]

Originally posted by: vi_edit
The mustang fairs a little better. Resales *usually* go in the sh!tter when a car discontinued. Exceptions to that include Supras, RX-7's, and 300ZX's.

Must I do it for the V8 Mustang too?

Grasshopper

 

[FelixDeCat]

I used to think like you. After 14 cars, I only buy new.

 

[SWirth86]

Originally posted by: grasshopper26

Originally posted by: SuperTool

Well, those math lessons lost even more value 18K is 67% of 27K, so the car lost 33% of its value

Err, I just did the math backwards, what's the big deal?

Anyway, $18K into $27K gets me 0.63, or 63% Where did you get 67%?

In any case, that car still has half the factory warranty left, it is still gonna smell new, and it costs $9,000 less...

Grasshopper

27K-18K = 9K (Amount Lost)

9K/27K = 33%

 

[vi edit]

Grasshopper - when you are factoring in your "new" prices - are you including 0% financing, rebates, discount off of MSRP, and other various ways of discounting a vehicle?

I agree, for somebody that trades up every couple years, buying new, and domestic especially, is a very, very bad idea. But, if you are financing vs. paying cash, and planning on keeping the car for 5 years then buying new with 0% interest + other discounts isn't that bad of an option.

 

[Grasshopper27]

Originally posted by: SWirth86

27K-18K = 9K (Amount Lost)

9K/27K = 33%

18K/27K = 62%

18K is 62% of 28K

That is why I think we have different numbers... In any case, I'd rather have a slightly used car that still looks and feels new than to spend another $9,000.

Grasshopper

 

[Grasshopper27]

Originally posted by: vi_edit
Grasshopper - when you are factoring in your "new" prices - are you including 0% financing, rebates, discount off of MSRP, and other various ways of discounting a vehicle?

I agree, for somebody that trades up every couple years, buying new, and domestic especially, is a very, very bad idea. But, if you are financing vs. paying cash, and planning on keeping the car for 5 years then buying new with 0% interest + other discounts isn't that bad of an option.

Fair enough... That doesn't fit my profile...

I like to trade every two years, I always pay cash, etc...

I wouldn't want to own the same car for 5+ years...

Grasshopper

 

[Grasshopper27]

Originally posted by: FelixDeKat
I used to think like you. After 14 cars, I only buy new.

How come? Yes, I'm honestly asking...

 

[geno]

Isn't the real lesson here "don't buy POS american cars that lose half their value in 2 years?"

Yah, perfect way to bring up the resale value of the cars

And it's not "POS american" quality that brings the prices down either. It's the publics inherant willingness to look past an American name. It's myths and bad publicity that hurt American makers, not the product.

 

[Zenmervolt]

Originally posted by: grasshopper26

Originally posted by: vi_edit
Grasshopper - when you are factoring in your "new" prices - are you including 0% financing, rebates, discount off of MSRP, and other various ways of discounting a vehicle?

I agree, for somebody that trades up every couple years, buying new, and domestic especially, is a very, very bad idea. But, if you are financing vs. paying cash, and planning on keeping the car for 5 years then buying new with 0% interest + other discounts isn't that bad of an option.

Fair enough... That doesn't fit my profile...

I like to trade every two years, I always pay cash, etc...

I wouldn't want to own the same car for 5+ years...

Grasshopper

Yeesh, new (to you) car every two years? My family has always run our cars into the ground. The last car we kept for less than three years was totaled by a motor home. (Accident happened in front of my dad, he stopped, the motor home behind him never even hit the brakes.) We usually keep a car between 6 and 8 years, but my parents used to only put about 20,000 miles on their cars in a year. Now that my dad's putting 60,000+ on his truck each year he'll probably have to start replacing his trucks sooner.

ZV

 

[Vette73]

Originally posted by: grasshopper26

Originally posted by: Marlin1975
You buy new for better rates and choice of items in and on car.

When my Parents got there first Camaro they looked at one that was a year old. BUT once you take into account there were no cash back awards, it had a higher % rate, and did not have all of its warrenty. The NEW car was several K cheaper.

You people are only looking at face price, not full payment and overall vaule.

Then your parents were looking at the wrong used Camaro...

They lose so much value the minute they are driven off the lot it is scary...

2001 Camaro - $11,788

That car cost about $20,000 when new, it has lost 58% of its value in two years and only 16,000 miles of driving.

.


Thats nice you keep linking to striper cars. The one you showed had nothing, no t-tops, etc...

That car prob. went for around 16K NEW if even that.

 

[FelixDeCat]

Originally posted by: grasshopper26

Originally posted by: FelixDeKat
I used to think like you. After 14 cars, I only buy new.

How come? Yes, I'm honestly asking...

Basicaly it comes down to :

1) New car warranty.
2) That 'new car' smell.
but most importantly 3) You are the original owner.