New car or used? (Tahoe)

[kandb]

We have a 12 year old mini-van and it's time for a new vehicle. We mostly want a vehicle to travel in, we are a family of 5. My husband wants a suburban (loves big) but we are going to get a Tahoe. We first wanted a used one since new ones are $45K plus. We found a 2014, 37k miles for around $34K. Today my husband went to a dealer and then have a new 2016 for around $42K but it doesn't have a lot of extras. I think with the new one we will get charged a luxury tax? We live in NJ. Any suggestions on new/used cars? Anyone have a Tahoe and have any advice? PS- we will keep the minivan since it only has $108k miles and would only around $3K for it, going to cancel collision on it. We also thought of leasing but payments seem to be $500/mo.

 

[StitchesGr8Fan]

Is the Tahoe going to be used on a daily basis? If so, the extras might be worth it. If you are going to save it and only use it for long trips or as a back-up, then the extras might not be as important.

 

[mickey'sbud]

IMO - only unless you have money to burn, I'd never recommend buying a new vehicle. Look for at least a two year old model or older. If you take a couple of months to shop (don't be a "got to have it today"), you can find a "clean," low mileage, loaded SUV with all the bells and whistles for MUCH less than what a new one would cost you. Take it to a mechanic/body to check it out. It is worth the expense (probably less than $100), but will save you $1000's. Check out http://www.autotrader.com/ to see what's available in your area. One final thing, never settle on the asking price, even if it's used! Also regarding your van...check Kelley Blue Book for it's value. It will give you trade in, personal sale, and retail values.

 

[pixie921]

I personally keep a vehicle for a decade or more, so when it's time for a new one, I prefer new. I know good used ones can be found, but when I'm investing that much for that long, I want to be the one putting the miles on it and knowing exactly how it's being cared for every step of the way.

 

[spinandmarty]

I would maybe rethink on the suburban, if it is going to be used mostly for trips. The gas mileage will prob be pretty close to the same, and on long trips the extra space is really nice to have.... Drove one for ten twelve years, we did have four kids so needed the extra space... Have missed it ever since I got rid of it, now that grand kids are getting older would really like to get another...

 

[Anne34]

Totally agree about rethinking the suburban. We had two - keep them each 8 years and got a Tahoe 4 years ago cause we had kids going to college and dint think we'd need the space. Big mistake! The gas mileage is exactly the same and we really miss the space. The 3rd row in the Tahoe is over he wheels and the suburban it's not. Soooo much more leg room in the 3rd row. Never had any problems with our vehicles. All over 100,000 when traded in and only basic repairs.

 

[tvguy]

IMO - only unless you have money to burn, I'd never recommend buying a new vehicle. Look for at least a two year old model or older. If you take a couple of months to shop (don't be a "got to have it today"), you can find a "clean," low mileage, loaded SUV with all the bells and whistles for MUCH less than what a new one would cost you. Take it to a mechanic/body to check it out. It is worth the expense (probably less than $100), but will save you $1000's. Check out http://www.autotrader.com/ to see what's available in your area. One final thing, never settle on the asking price, even if it's used! Also regarding your van...check Kelley Blue Book for it's value. It will give you trade in, personal sale, and retail values.

They say from a financial standpoint the best way to go is to either buy a good 2 year old used car and trade it after 2 years, or buy new and keep it forever.

 

[tvguy]

Totally agree about rethinking the suburban. We had two - keep them each 8 years and got a Tahoe 4 years ago cause we had kids going to college and dint think we'd need the space. Big mistake! The gas mileage is exactly the same and we really miss the space. The 3rd row in the Tahoe is over he wheels and the suburban it's not. Soooo much more leg room in the 3rd row. Never had any problems with our vehicles. All over 100,000 when traded in and only basic repairs.

I can't part with mine, it has always been a spare vehicle, but when you need it, you need it. It will be 29 years old in October. Fixing has always been cheaper than replacing. Last year it was a transmission at $1,900, less than just the sales tax on a new or nearly new used one.

 

[5kidsmommy]

Suburban driver here. The difference in mileage between the tahoe and the suburban is minimal but the space difference is huge. We are a family of 7 and never feel cramped in ours. The area where you gain the space is in the cargo area and it's amazing to have so much room. If you can I'd go with a suburban. Also I know some people worry about the size but I had a suburban for many years and then switched over to a minivan, the minivan was so much harder for me to maneuver than the suburban, so I went back to a suburban. We are the type that buy one a couple years old and drive them pretty much forever. My husband though drives his car 30,000-40,000 miles so he always gets new. I have never had a problem buying a suburban a couple years old but I've had both of mine checked out by mechanics. My current suburban is a 2009 and has about 190,000 miles on it, I plan on getting another 100,000 out of it.

 

[MillauFr]

They say from a financial standpoint the best way to go is to either buy a good 2 year old used car and trade it after 2 years, or buy new and keep it forever.

The best way from a financial standpoint was to get rid of one our cars 15 years ago and just use one. And then with the one remaining car drive it very little.

 

[bethy]

Agree - think hard about a suburban.

Tahoes are nice and wide but have almost zero space behind the third row!

 

[tvguy]

The best way from a financial standpoint was to get rid of one our cars 15 years ago and just use one. And then with the one remaining car drive it very little.

I hope to scale back when I retire. But since all 3 people in my household have to be at work between 3 and 430 am, when public transit isn't running, we have to have a spare car in case of a dead battery or flat tire.

 

[manning]

I can't part with mine, it has always been a spare vehicle, but when you need it, you need it. It will be 29 years old in October. Fixing has always been cheaper than replacing. Last year it was a transmission at $1,900, less than just the sales tax on a new or nearly new used one.

My Lincoln is 23 years old with 203,000 miles on it. I think it is about broken in.

 

[MillauFr]

I hope to scale back when I retire. But since all 3 people in my household have to be at work between 3 and 430 am, when public transit isn't running, we have to have a spare car in case of a dead battery or flat tire.

Do the math and see if it is cheaper to use Lyft, Uber, or one of the car sharing services for those few times when you need all of your cars. I did and found out it was costing me $1.10 per mile for our second car. I was shocked how much our insurance went down when we got rid of it. I think I was only driving it about 1,000 miles per year.

 

[DawnM]

Are you paying cash or financing?

When we bought our Toyota Sequoia in 2004, we looked at used online (pre-CL so I think it was Car Traders or the Recycler) and found that it was cheaper to buy new.

New retail price: $37,000
Deal with incentives: $32,500

Two year old car, same model and features: $31,000-$34,000

New car interest rate: 1.9%
Used car interest rate: 6%

We put down $10K

Total Payment over 5 years on new with interest: $33,603
Total Payment over 5 years on used with interest: $34,359
(for used I took the lowest amount, $31K and ran the interest of 6%)

The new car was cheaper.

 

[tvguy]

Do the math and see if it is cheaper to use Lyft, Uber, or one of the car sharing services for those few times when you need all of your cars. I did and found out it was costing me $1.10 per mile for our second car. I was shocked how much our insurance went down when we got rid of it. I think I was only driving it about 1,000 miles per year.

The spare vehicle is a Suburban that we keep for long trips, hauling 9 people, or going to the dump, so not sure Lyft or Uber would be useful.

 

[DnA2010]

We just went through this with replacing our Honda CRV- it was a 98 with over 600,000km on it. We looked at new, but in the end found a good deal on a used one- like a 3rd the cost of new, with only 100,000km, came with new winter and summer tires, and roof racks and box. We let someone else take the big hit of the new car. With what we had planned to put down on the car (10K), and adding a bit more, we were able to buy outright as oppose to finance.