New car vs used cars (long)

[pinkxray]

Alright budget boarders, I really need some advice. I am going to admit upfront that I am committing what seems to be a budget board sin and going to finance a car.


A little past info.-

Right now I have a 2003 Nissan Pathfinder. I bought it used when it was about 6 years old and it just seems like I have done nothing but put money into it. Now, I need about $1300 of work to fix some rear suspension problem. I have really just had it with this car and do not want to put any more money into it. It has really soured my experience with used cars.


Before the Pathfinder I had a brand new Honda Civic that I LOVED and kept for 10 years. I loved that I knew everything about the car and never had any issues with it but routine maintence. I only got rid of it b/c I got a job in a hospital a few towns away and need 4wd or awd for the snow. Plus it was two doors that didn't really work with having kids.


I am currently looking to purchase a Nissan Rogue. I've been looking at used back to 2008 and new 2012 models. DH is very anti new cars. Always says things about how once you drive of the lot you lose so much money. However from what I have seen when pricing used Rogues is that they don't lose much value in the first couple years which is why I haven't been even looking at 2011-2009, they are not much cheaper. Even many 2008s are still high in price.


I have been looking for about 2 months since I am not in a hurry and it has been tough to find a used Rogue with a low miles at a decent price.


I found one a few days ago that is a 2008 with less than 45000 miles on it. We are going to look at it tomorrow.


Here is my dilemma.

I have already been preapproved for a used car for 48 months with 3.9%apr.
But I have figured out that if I get a good deal on the 2012 models that are being cleared out I can get a 1.9%apr for 60 months and have the same payment.

If I get the 2008 it will already be almost 5 years old and by the time I pay it off it will be 9 years old. (although I will most likely pay off the loan in 2-3 years) I'm worried that in 5 years I'll have a 10 year old car that has problems and need a new car again which leaves not much time between cars with no car loan.

If I get a 2012, I will have a a 5 year loan (most likely paid off in less than 3). So in 5 years I will have no car loan and a car than is only 5 years old. I would still keep another 5 years at least so that would be 5 years of no car loans.


I have tried asking DH but all I hear is "getting a brand new car is stupid, you just want a new car to have a new car, but it's your money do whatever you want" Not very helpful.

I really don't know what to do. To be honest the 2012 sounds like a better idea but I'm worried maybe I am just distracted by the new car like DH says. ​

 

[hsmamato2]

your DH is wrong, today's current situation has turned used car buying on its head. We did this last year, the only diff. between you and me is our car was 17 years old, which we had bought when it was 4 years old.
When we needed a replacement,we spent MONTHS trying to get a used model in the condition we wanted. The price for 2-3 years old,with 30k miles on it and a BRAND NEW model with 4 miles on it was less than $3,000. ANd our new one came with NO headaches and a 10 year warranty.Exact same brand/model.
Plus to finance a used car, it was around 4-6%,to finance brand new was 1%..... ran the numbers on a calculator at bankrate.com and the choice was clear. after 4 years or paying, we came out AHEAD on the new model, plus it has that warranty....
The state of the economy has driven up the price of a GOOD used car to make them not the deal they once were,in many cases.
So go to bankrate and talk to your DH.maybe he'll listen.
(this applies if you intend to finance anyway,which we did) also (FWIW,this is our only debt,it was planned,and well in hand. So within our budget for sure!)

 

[hsmamato2]

also in thinking used vs. new in this market, on every used model, my DH found some point of worry,due to past ownership. He didn't want that worry right now,as he'd spent many years tending to our elderly minvan. HE was THRILLED to have a car with no previous owner headaches that came with it. But we wouldn't have done it if the numbers hadn't supported it-

 

[SaraJayne]

Buying used is not the deal it once was.

We always finance our cars. With the price of vehicles now, it is almost impossible not to. Don't worry about that part.

It sounds like you've considered all aspects of buying both new and used.

With the situation you've described, I'd go with the new.

But it is, of course, ultimately up to you.

 

[I loveStitchnippyjon]

If your current Nissan has always been a money pit, why buy another Nissan?

 

[Mariep26]

I agree with the other posters. The new car is most definitely going to be the better deal. I usually buy new and finance (try to get a clear out end of year model with financing between 0 and 3%). A few years ago I went used to find DH the exact minivan that he wanted -- we ended up with a decent deal but in retrospect I wish we had waited for the right new one to come along because the financing would have been better. Oh well -- his minivan is almost paid off and it has less than 100k on it and we haven't had many issues at all (Honda Odyssey minivan). I am hoping to keep it for another couple of years before we need a new one.

 

[Fyrefly]

Yeah honestly more than anything else finance vs. refinance I'd just go get another Honda. Find a Civic or an Accord you like then figure out used vs. new. It seems silly to me to go for another Nissan when clearly this one has been garbage.

But I'm biased I guess, I'm driving an Accord my parents bought new in 1991...

Or I read improperly, though you're talking about needing 4WD in the past. If you need 4 doors just get an accord. If you need 4WD just look at one of their SUVs.

 

[Shelly F - Ohio]

I would opt for NEW.

Why buy someone elses headache when you buy a used car. Yes you will save money on the intial sticker price compared to a new car but in the end if you have to shell out money for repairs and worry about the reliablity - where is the savings

At least with a new car you will have piece of mind that it will be reliable. If something goes wrong then you have a warranty for usually 5 years and the dealer will handle the issue.

When we bought my DH new car we got the extended warranty through AAA that went into effect after the mfg warranty ended. THe AAA warranty was good for 7 year. If in that 7 year period if you did not have to use the warranty they refunded the FULL purchase price of the warranty. So we had coverage for 10 years on his car. Never had to use the AAA warranty and we got a full refund of the extended warranty and the cost was $1000.00. Not sure they still offer this warranty.

** Also if you are able to wait till the end of Dec car dealers will have some great sales to clearance their lots.

 

[3boymthr]

I'd not buy a car that is already 5 (or 6 depending upon when it was made) years old. My car is 6 years old and in some ways I'd already love to trade it in just to get one with a new interior.

Also, you said you keep your car for the long haul, that means in a few years you'll be driving a 10 or 12 year old car that could potentially need a LOT of work.

Last but not Least....Given that they are anticipating a surge in used car prices in the coming weeks and months and with the HUGE risk of getting a Sandy car (especially given where you live is relatively close to the disaster zone), I'd say you're probably going to be just as well off buying new.

http://ca.autos.yahoo.com/news/used-car-prices-will-rise-because-of-sandy-aftermath.html

 

[3boymthr]

Oooh, another thought.

You and your DH are looking at the cost before financing. Look at your total overall cost - including the finance charges over the life of the loan. If you are paying 1.9% vs. 3.9% then it may actually be almost the same cost.

Also, if you can budget it out this way, look at the total cost of paying for the cars weekly. I paid my payments on a weekly basis (took the payment divided it into four equal payments and the car company ACHes that amount out of my checking account each week). DH's truck is going to be paid of 10 months early this way and we're going to save a ton on interest.

 

[pinkxray]

Thanks for all the great advice. I am glad I am not the only one who thinks DH is totally wrong.

As for why I want another Nissan? Honestly when I bought the last one it was a rush to find something cheap with 4 wheel drive in a low price range. We didn't do much research on it and it didn't work out well. I have heard Nissans are good cars and honestly think it was just our fault for not taking the time to fully research the one we got. My DH has a 1999 Pathfinder that has served him well and has had no issues.

I would love a Honda but just don't like the CRV styling. I do need 4wd or awd since I have to drive to work no matter how much snow there is. I love the Rogue styling although must consider a Rav4 once we start looking this weekend.

 

[ssawka]

I say buy new, but I have always been partial to new cars. With a new car, you know everything that has been done to the car and if there are any problems the dealer should take care of it. With a used car, you just don't know what you are buying. Sure, you can get a CarFax to see if it was ever involved in an accident, but that is not going to tell you the regularity with which it was serviced. Did the owner keep up with the oil changes and all other maintenance services? My advice is buy new and keep up with the maintenance schedule. Others may disagree with me, but I'll be the first to admit that I know very little about cars and I do not trust mechanics. Dealers may charge quite a bit more for servicing, but in my experience, I have not had them try to sell me services that the car did not need. On the other hand, mechanics do that every time I take the car into the shop.

 

[wiigirl]

Buying used is not the deal it once was.

We always finance our cars. With the price of vehicles now, it is almost impossible not to. Don't worry about that part.

It sounds like you've considered all aspects of buying both new and used.

With the situation you've described, I'd go with the new.

But it is, of course, ultimately up to you.

This...I would go with new.

 

[DawnM]

We have a 2004 Toyota Sequoia. We bought it new.

Even back then we ran into the numbers you have run into......a used loan then ran about 6% interest.

We could not find a 2-3 year old Sequoia for less than the dealer was willing to deal with us.

We finally got a brand new 2004 Sequoia for $4,500 off sticker price and 0.9% financing and after running the amortization, we SAVED thousands off the life of the loan.

Dawn

 

[scrapquitler]

Alright budget boarders, I really need some advice. I am going to admit upfront that I am committing what seems to be a budget board sin and going to finance a car.


A little past info.-

Right now I have a 2003 Nissan Pathfinder. I bought it used when it was about 6 years old and it just seems like I have done nothing but put money into it. Now, I need about $1300 of work to fix some rear suspension problem. I have really just had it with this car and do not want to put any more money into it. It has really soured my experience with used cars.


Before the Pathfinder I had a brand new Honda Civic that I LOVED and kept for 10 years. I loved that I knew everything about the car and never had any issues with it but routine maintence. I only got rid of it b/c I got a job in a hospital a few towns away and need 4wd or awd for the snow. Plus it was two doors that didn't really work with having kids.


I am currently looking to purchase a Nissan Rogue. I've been looking at used back to 2008 and new 2012 models. DH is very anti new cars. Always says things about how once you drive of the lot you lose so much money. However from what I have seen when pricing used Rogues is that they don't lose much value in the first couple years which is why I haven't been even looking at 2011-2009, they are not much cheaper. Even many 2008s are still high in price.


I have been looking for about 2 months since I am not in a hurry and it has been tough to find a used Rogue with a low miles at a decent price.


I found one a few days ago that is a 2008 with less than 45000 miles on it. We are going to look at it tomorrow.


Here is my dilemma.

I have already been preapproved for a used car for 48 months with 3.9%apr.
But I have figured out that if I get a good deal on the 2012 models that are being cleared out I can get a 1.9%apr for 60 months and have the same payment.

If I get the 2008 it will already be almost 5 years old and by the time I pay it off it will be 9 years old. (although I will most likely pay off the loan in 2-3 years) I'm worried that in 5 years I'll have a 10 year old car that has problems and need a new car again which leaves not much time between cars with no car loan.

If I get a 2012, I will have a a 5 year loan (most likely paid off in less than 3). So in 5 years I will have no car loan and a car than is only 5 years old. I would still keep another 5 years at least so that would be 5 years of no car loans.


I have tried asking DH but all I hear is "getting a brand new car is stupid, you just want a new car to have a new car, but it's your money do whatever you want" Not very helpful.

I really don't know what to do. To be honest the 2012 sounds like a better idea but I'm worried maybe I am just distracted by the new car like DH says. ​

We always buy new, finance at the 'sale' rate, regardless of the length of the term. We have financed at 0% for 60 months, and we have financed on a very short term 1.9% for 24 months. We buy new, and we drive it until it just doesn't make any sense to keep fixing it to keep it on the road. Right now, I am driving a 2000 Ford Taurus with 140K miles on it, and it's still going and going. DH is driving a 2008 Subaru with 103K miles on it.

I think if you plan to drive the new car for upwards of 125K miles or 10 years, the 'it loses its value fast' argument is irrelevant because you spread the cost of the car over such a long period of time. That argument is designed for the people who drive a car for 50K miles and just a few years then want a new one.

 

[nowellsl]

\must consider a Rav4 once we start looking this weekend.

I love my Rav4. It's 11 years old (65,000 miles) and I bought it about 3 and 1/2 years ago (with 37,000 miles) and still going strong! Honestly, I've had 3 Nissons and you're lucky to get past 100,000 miles on them! I'm sticking with Toyota's from now on! I've never had anything except routine maintenance, tires and belt replacements.

 

[Nicolepa]

If your current Nissan has always been a money pit, why buy another Nissan?

I've owned 3 Nissans. All horrible cars. Service dept terrible I will never by ther Nissan.

 

[branv]

The only way I would ever buy used again would be if a) I knew the person who owned the car, and could rely on them to give me an accurate history or b) it was a classic car. My entire life my family only bought used, as do my bro and sis now; and when we first started out as a couple, we bought a few used. Despite always taking the cars in for a mechanical check up before buying, every single time those cars have needed a big repair within 2 years. And half that time it involved being stranded somewhere because it broke down. This includes the cars that weren't very old when we purchased them used. So, it's new cars for us!

That being said, DH and I are now pretty Honda devoted. They keep so much of their value that buying one used is typically not getting a good deal. A few times I've looked at the price of a Honda that was a 2-3 years old and the price was only a few thousand lower than a new model. Though it works out for me: in the next year we're going to sell my 2000 Civic and get the new CRV. My car has 164K miles on it, was about $13K when we bought it new 13 years ago. I've done some comparison shopping, and it looks like the going price of a private sell for one in good condition is anywhere from $3500-$4000! Every time we take it in for an inspection or some maintenance work we're told "that car is great, if you ever want to sell it..." (to be fair, that's the last year model Civic on which you could fairly easily do your own mechanical work).

SO, as with cars like Honda that retain their value, their used cars may be more reliable and therefore better to buy, but it may not be worth it price wise over a new one. Kind of a catch 22.

Even if used were a better deal though, it's worth the peace of mind to us to buy new. I'm not sure in your shoes I'd buy another Nissan, given your experience. I also really liked how the Rogue looks, but we steered away from it because one of DH's coworkers has had problems with theirs (which doesn't necessarily mean much...there's always a bad apple in every bunch). But I'm also not that interested in cars, so would choose reliability over style ten times over.

Have you looked at the RAV4? (Okay, just reread other posts...obviously you have D'oh!)

 

[pigletto]

I am reading this thread with interest!
We are looking and already having this debate in my house too, and we won't be buying for another year.
As has been mentioned, what is looking like the best deal for us will be to get a 2013 as they are rolling out the 2014's. We are strongly considering a Honda CRV or a Toyota Rav4 for all of the reasons mentioned in this thread. However we have access to the GM employee discount as well which will essentially save us all the taxes and fees on a Equinox or a Traverse.

Bottom line, it isn't looking like it would save us much or anything really to go used, and I would far prefer to not have the worries and headaches of what might be wrong with the used car.

 

[deserrai]

Just my 2 cents, I have also never heard anything good about Nissans.