Wwyd? Buy new or used car

Because we found a used work van was almost as expensive as a new one, much more beat up (it's a work van) and, if you were financing, the interest rate was much higher. We ended up going with a new one, zero percent interest for three years. We could have paid cash but at the rate why? --50.82.xxx.xx

Wwyd? Buy new or used car (by Amy [MO]) Posted on: Feb 12, 2018 8:36 AM
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We're cheap, so neither of those options would work for us. We pay cash for our vehicles or use loans that have no interest. I heard there may be some tax break/ benefit to some types of businesses that buy brand new, but unless they can give us back what is lost in the deep depreciation from the first few years, no thanks.

Our vehicles are bought 4 years old. One was even older but its a fun car. Sorry- probably not much help.

--136.32.xxx.xxx

Wwyd? Buy new or used car (by RathdrumGal [ID]) Posted on: Feb 12, 2018 8:54 AM
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I would pay cash for the used vehicle. Our work truck is a 1995 Ford F150. My husband bought it in 2011 for $5K. Perfect for dump runs and hauling hay. --98.146.xxx.xx

Wwyd? Buy new or used car (by Sisco [MO]) Posted on: Feb 12, 2018 9:01 AM
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Used in this scenario.

New gets you new tires ($1200 set) New battery ($150) +20,000 less miles and 1 model year.

Used cuts price by $7k gets you 1/2 tires 2/3 battery & 1 model year, 20,000miles.

If the spread was smaller ($5k), I'd buy new.

BTW, when people say only buy used cars they should be more clear that they mean only buy older (5+ year old) used vehicles. To be unclear is to be unkind.

--72.172.xxx.xx

Wwyd? Buy new or used car (by razorback_tim [AR]) Posted on: Feb 12, 2018 9:12 AM
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Option 1.

I try to keep my capital cost of vehicles (purchase price + major repairs) at 10 cents/mile or less so the new one is worth $2K more based on that. There’s probably a little more value than that based on tires/warranty/other wear parts, but I don’t think the difference is worth $7K. As WMH points out, if you are making payments the interest rate may come into play and give you a difference answer. --70.182.xx.xx

Wwyd? Buy new or used car (by Richard [MI]) Posted on: Feb 12, 2018 9:23 AM
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Neither.

For local work truck I would not spend over 2-3K total. Buy for cash. No need for an expensive vehicle. If it broke and I could not work around it, just rent a truck for a day.

Use the other $34-35,000 to buy more rental property. --96.94.xxx.xx

Wwyd? Buy new or used car (by S i d [MO]) Posted on: Feb 12, 2018 9:32 AM
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I would also buy for cheaper as others have said, but to be fair and answer the question you asked vs. the question we all think you should have asked.... (wink).

I'd buy used.

A decently maintained truck should run for about 200,000+ miles. 20K miles on a used truck represents 10% of it's useful life "lost".

The new truck costs $37,000, so a $7000 savings spread represents 19% price difference ($7K/$37K) by choosing the used truck.

So by paying 19% more, you only get 10% added life. Not worth it to me.

On the other hand, if your net worth is north of $1 million and you have the $37,000 cash saved up, go for it and treat yourself....realizing it is a treat/toy, not an investment. --173.17.xx.xx

Wwyd? Buy new or used car (by S i d [MO]) Posted on: Feb 12, 2018 9:37 AM
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Oops, math is wrong. You're actually be "paying" 23% more.... or saving 19%... The dollars still work either way, but the verbiage I used assumed the used truck as the base price.

Saving less vs. paying more gives you different percentages, but overall net dollars spent does not justify gaining back a much less amount of useful expected life to me.

I don't count the components like tires since those are accounted for in the overall "life" of the vehicle. --173.17.xx.xx

Wwyd? Buy new or used car (by Deanna [TX]) Posted on: Feb 12, 2018 10:36 AM
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Why do you buy used? Because you get a significant amount of savings that makes it worthwhile to buy something where you don't know how it was driven, who took care of it, or why they decided to sell.

Why do you buy new? Because you want something with zero history, so you know what you've got, and the loss of value that you get the moment you drive it off the lot is able to compensate for that certainty.

We were looking around at some used cars after Christmas. The used market seemed more vibrant than it was the last time we'd checked. It gets picked over pretty hard and savings are comparatively skimpy when the economy is on the rocks, and everyone's trying to get a decent used car and save a few dollars, or are holding onto their cars as long as possible. But when things are doing well and life is good, more people are willing to buy a new car, and are quicker to trade in good cars.

So-- if you want a new truck, spend an extra $7k and buy a new truck. If you want to save money, you can do better than just $7k. --96.46.xxx.xx

Wwyd? Buy new or used car (by GKARL [PA]) Posted on: Feb 12, 2018 10:49 AM
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I've not bought a new car in years. I always buy used. The discount for used is too steep and there are too many good used vehicles that still have a lot of life. --64.121.xxx.xxx

Wwyd? Buy new or used car (by RB [MI]) Posted on: Feb 12, 2018 11:10 AM
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Neither.

My 1986 El Camino gets the job done.

Every time I turn the key, I smell Money.

Do what ya gotta do. --47.35.xx.xx

Wwyd? Buy new or used car (by Jason [MI]) Posted on: Feb 12, 2018 11:10 AM
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I am getting a loan, 2.29 for 7 years. I could pay cash but for that interest rate I will borrow. I know not an investment, an i will keep till breaks down. --174.230.x.xx

Wwyd? Buy new or used car (by Johnny B. [MA]) Posted on: Feb 12, 2018 11:49 AM
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As others have said, I’d buy one slight older and cheaper. I target 3 - 4 year old vehicles. At 3 - 4 years old you still have a relatively new low mileage vehicle. Let the other guy take the hit on depreciation. Not sure how it works in your state, but using this approach in Mass saves a ton on sales tax, excise tax, and insurance. Two years ago I got a steal of a deal on a 1992 GMC pickup for $225... still running strong!! --24.147.xx.xxx

Wwyd? Buy new or used car (by S i d [MO]) Posted on: Feb 12, 2018 12:05 PM
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Btw, now that I've analyzed your scenario, I'll tell you what I do.

I like gently used cars that are 5-7 years old. "Gently" used is typically in the 50,000-70,000 mile range (10K miles per year or less average). After 5 years, the car will have lost half or more of it's original value but should have close to 2/3 of its original life left. Also, most folks will replace the big "wear out" items like tires at around 50,000, so you should get a new set of tires and few, if any, mechanical issues to deal with.

I went even cheaper with my "work truck." I drive it about 5000 miles per year. I bought it 3 years ago, and at the rate I'm going it should last another 10-15 years. Purchase price? $4000. Repairs to date? < $500.

$1500/year "all in" if it dies today and never moves another mile, and I'll be able to sell it for $1000 scrap. And if I drive it through a brush pile I don't care how many scratches it gets.

New trucks are toys. No one does much, if any, real "work" with them because every scratch would cost you $300 to fix. Call it what it is, a toy. If you want a toy and have earned it, buy it. We labor so that one day we might enjoy the fruits thereof. --173.17.xx.xx

Wwyd? Buy new or used car (by pmh [TX]) Posted on: Feb 12, 2018 12:41 PM
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I bought a used mx5 in qtr 3 2015. it had 18 miles on it. It was car dealer had bought itself to pump up sales so as to qualify better for manufacturer quotas. salesman needed to pump up his sales.. saved $8k. I lucked out but now I know to ask for dealer owned. I have bought one new car off the lot in 30 years. when I was young and didn’t know better and did it to build credit history when I came to US. didn’t listen to my Dad who always bought at 2 years. Now older and tell my kids what he told me. ... --166.137.xxx.xx

Wwyd? Buy new or used car (by Pmh [TX]) Posted on: Feb 12, 2018 12:45 PM
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Jason: you can do better on rate. contact a local credit union. pay $25 to become a member. at least shop around. tell us who you end up with. --166.137.xxx.xx

Wwyd? Buy new or used car (by Robin [WI]) Posted on: Feb 12, 2018 12:58 PM
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The last time I bought a vehicle I actually charted out the depreciation over time and mileage. What I found was that for the vehicles I was looking at, they depreciated at roughly $1000/yr and $1000/10K miles. Of course, that was 11 years ago. Using that formula, the older vehicle is the better deal. --204.210.xxx.xxx

Wwyd? Buy new or used car (by WMh [NC]) Posted on: Feb 12, 2018 1:00 PM
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If you intend to keep the car 10 or more years (as we tend to do) then depreciation is not a big deal. By the time we get done with it, new or used at first, it's worth nothing. Our truck is turning 21 this year. My "new"car is turning 10. The work van was written off to the business.

New cars are not worth it if you intend to switch 'em out every few years, but if you keep them forever, why not? --50.82.xxx.xx

Wwyd? Buy new or used car (by Jo [CT]) Posted on: Feb 12, 2018 1:07 PM
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I bought a 1988 Volvo station wagon about 13 years ago for $4,500. I still drive it...it's my only vehicle...216,000 miles on her...still a teenager! I love it. I throw ladders, tools, paint, everything in there...use it like a truck.

The headliner is coming down, but the interior and body are in great shape.

I am thinking of getting Classic Car plates so everyone will think I an cool instead of cheap!!

--32.215.xxx.xxx

Wwyd? Buy new or used car (by Sisco [MO]) Posted on: Feb 12, 2018 1:23 PM
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According to KBB a 2015 F150 crew 4x4 XLT with 40,000 mile worth $2700 less than 2016 F150 crew 4x4 XLT with 20,000 miles.

--72.172.xxx.xx

Wwyd? Buy new or used car (by cjo'h [CT]) Posted on: Feb 12, 2018 1:58 PM
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Jason, have you gone bananas,rocks in your head. Re-read Johnny Bs post from the great State of Massachusetts.You should maybe pick up a thing or two,because he knows a thing or two. Took me a week to buy the last work van, and from the original dealer that I visited,saved $11,000 from the original price quoted on the same van. In the North of Ireland,we call it dickering.All us farmers do it.Try it, you might like it............charlie.............I told somewhere before, "I'm only a country boy"...................it helps.............................................................. --174.199.x.xxx

Wwyd? Buy new or used car (by JB [OH]) Posted on: Feb 12, 2018 2:09 PM
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Jason, If you'll consider any of the new Nissan Titan work trucks, Full size, We have 2017 model year new ones in stock, we are ready to get rid of. I can get you a cheap price and deliver. All come with 5 year 100k bumper to bumper warranty. Johnb@busamnissan.com or my cell 513-604-1694 Im in Cincinnati. Mr Landlord price --24.123.x.xxx

Wwyd? Buy new or used car (by cjo'h [CT]) Posted on: Feb 12, 2018 2:10 PM
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Jason,don't mean to beat you up too much,but re-read Pmhs first post,amazing what you can gleam from the immigrants.......charlie......................................................................................... --174.199.x.xxx

Wwyd? Buy new or used car (by Mike [PA]) Posted on: Feb 12, 2018 3:14 PM
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What does this have to do with LLing --216.164.x.xxx

Wwyd? Buy new or used car (by Pmh [TX]) Posted on: Feb 12, 2018 3:49 PM
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Nissan tundras not highly rated & very over priced against comparables. --97.94.xxx.xx

Wwyd? Buy new or used car (by cjo'h [CT]) Posted on: Feb 12, 2018 4:16 PM
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Jason,JB is not an immigrant,but he's good,more than good...............charlie...................................... .......... ........................................ --174.199.x.xxx

Wwyd? Buy new or used car (by cjo'h [CT]) Posted on: Feb 12, 2018 4:32 PM
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what does this have to do with Landlording?Mike ,down where Roy comes from it's the difference between two houses and three.That's how come............................................charlie.........................................j --174.199.x.xxx

Wwyd? Buy new or used car (by AllyM [NJ]) Posted on: Feb 12, 2018 5:14 PM
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Just bought the Used one myself. So much value disappears when you drive it off the lot. Got a Subaru Outback for 5 gs off since the previous buyer returned it after driving it 90 miles. Couldn't get into my Ford Explorer anymore. it had 25 K miles on it and was a 2008. I was spraining my hip getting in and out and I got all this money in my 401K due to the pres giving the economy a kick start so I decided to put some of it into a second newer car. Can't have just one car when landlording. --73.33.xxx.xxx

Wwyd? Buy new or used car (by Deanna [TX]) Posted on: Feb 12, 2018 5:25 PM
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"How do frugal people make decisions regarding large expenditures" is very pertinent. :) --166.137.xxx.xx

Wwyd? Buy new or used car (by Oregon Woodsmoke [ID]) Posted on: Feb 12, 2018 5:49 PM
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If those are the only two options, I'd buy the new one and then take super good care of it and drive it until the wheels fall off.

That way, you know exactly what care it has received every day of its life, plus another year of warranty, new tires, etc. --174.216.x.xxx

Wwyd? Buy new or used car (by Jason [MI]) Posted on: Feb 12, 2018 7:35 PM
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It is more than a work truck, it is my drive to work every day. I have a 5 An 6 an year old an want to lower the risk of a break down. I will use it for houses to. The msrp is 50k, not like i didn't haggle. Still haggling. Now was offered a 2018 for same price --174.230.x.xx

Wwyd? Buy new or used car (by David [KY]) Posted on: Feb 12, 2018 9:07 PM
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Out here in Kentucky you can get a cheap van for 500 bucks or a decent used truck for 5k. Paid in cash for 5k you have a truck and use the other 30k to buy a 1/2 bedroom 1 bath shotgun house and rent it out for 595-645. --173.239.xxx.xx

Wwyd? Buy new or used car (by BRAD 20,000 [IN]) Posted on: Feb 12, 2018 9:09 PM
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Jason,

Me? Cash only.

Used only. a few thousand miles is not worth $7,000.

If concerned about warranty you can get on eon a used truck.

Investing in vehicles is what poor people do. Read The Millionaire Next Door.

You can get a nice looking truck (or even a Porsche!) for a lot less.

Invest in RE right now while it's hot.

Zero interest: don't be fooled. They don't give stuff away for free. They make it up in the price.

BRAD

--68.51.xx.xxx

Wwyd? Buy new or used car (by David [KY]) Posted on: Feb 12, 2018 9:55 PM
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On another note with a used car. Last time I bought a used car(8,000.00) I did a balance transfer where they sent me check from the credit card company. So basically a 0% loan for 18 months. Even at a 3 year 0% loan with 3% balance transfer on month 18 at 250 a month payment you would only pay 100 dollar 3% balance transfer fee on month 18 and have the loan payed off by month 33 with only a 250 payment and 100 total interest. --173.239.xxx.xx

Wwyd? Buy new or used car (by cjo'h [CT]) Posted on: Feb 13, 2018 12:04 AM
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Jason,your still not haggling enough.You also have to move around the different dealers,pit one against the other,why do yo think it took me a week.best gas money I ever spent.......charlie...............................................why do you think Vee says stop sitting on your hands........................................ --174.199.x.xxx

Wwyd? Buy new or used car (by cjl [NY]) Posted on: Feb 13, 2018 7:58 AM
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If you haggled them down to about $7k that's probably pretty good. Go with your gut not ours. And now they are offering a 2018 for the same price?! Nice! It has all of the same (or more) features?! Extra nice!!

I had a Jeep that was 11 years old - I walked into a Jeep dealer and ended up with EXACTLY what I wanted (brand new Jeep) with some extras and paid $350 more than I had planned. I am pleased as punch.

I paid cash even though they were trying to get me to finance and if I did - they would "meet me" closer to the amount I wanted to pay. I didn't finance because I didn't want to finance. They were saying "but you can still pay it off in a few months ... it will help your credit!"

I said "I don't need help with my credit - that wasn't why I was doing what I was doing ... I want what I want and either you are going to give it to me or I will go somewhere that will".

--69.201.xx.xxx

Wwyd? Buy new or used car (by Chris [CT]) Posted on: Feb 13, 2018 5:57 PM
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My work truck OTD was $52k...and I'll be getting another one in 30 months and at 50k miles. Someone else can get my "gently" used trade in and wrench on it until 200k, have fun.

I drove junk for years I don't put up with all the associated BS of running this operation to drive junk. I could go get a $15-$20 an hour 9-5 job put up with a small fraction of this stress and drive a cheap truck. No thanks.

--24.45.xxx.xx

Wwyd? Buy new or used car (by Ray-N-Pa [PA]) Posted on: Feb 13, 2018 7:03 PM
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I buy a truck and run it till the fenders rust off of it.....10-15 years later. Does one more year really make much difference? But for some they need the new car smell. --24.101.xxx.xxx

Wwyd? Buy new or used car (by mike [CA]) Posted on: Feb 15, 2018 1:51 PM
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great rate...take the new one and take care of it. i'm in calif. so my next new one will be purchased in oregon where they have no sales tax (ca is 8%!!). reg'd there too as it is FAR cheaper. i use a friends address

ALL trucks these days are really good. i have learned that a full long bed is mandatory for the occasional rehab and trailering. get a tow package if you do tow. i have a 1994 f150 half-ton with a shortbed. its as useless as the teats on a boar hog. if it didn't have a lumber rack it would be only a little more useful than a moped. buy the biggun if you can --76.176.xxx.xxx

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