Is it EVER a good idea to buy a new vehicle?

[Ron3]

Car or truck that is.

Most (all?) financial planning articles seem to say, "no". Are they right?

Opinions?

[THCDDM4]

Car or truck that is.

Most (all?) financial planning articles seem to say, "no". Are they right?

Opinions?

My opinion is, no. So much depreciation, very overly priced.

I buy lightly used vehicles that were single owner and maintained or single owner dealership trade-ins and I have had great success with saving tons of money versus buying new.

It kind of depends on what is important to you also, I don't need a NEW vehicle, and I can do all the maintenance work myself, so the warranty doesn't light a fire for me as I can do all the work for a fraction of the cost as a shop can.

Some people are going to pay for the service to their vehicles and that's where the maintenance cost can make a difference on overall investment versus buying new with a warranty that covers maintenance costs. You've gotta break it down.

Lifecycle maintenance costs are vastly different for different manufacturers and vehicle types and intended uses.

I like Toyotas for this very reason. They are easy to maintain (They need more than oil changes and brake jobs as most like to posit) and easy to work on. They have great resale value. They last a LONG time when properly maintained.

If you're going to want a new vehicle and beat/drive the shit out fit it would actually be cheaper to buy it, drive it to the end of warranty and sell it and then move on to the next one than it would be buy used and put all the maintenance costs into it; unless you plan on maintaining it yourself and have the investment of time to do so.

[Outlander Systems]

Absolutely not.

[Wake27]

Both vehicles I’ve bought have been new. I’d rather buy used but for the two I was looking at, the prices either weren’t that different or there was a major reason to buy new, like a vastly improved transmission.


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[Whiskey_Bravo]

In most cases no it's not worth it.


The only exception I have seen has been diesel trucks. They tend to hold their value very well(at least here in Texas) especially with low miles. The last diesel I purchased(F350) I ended up buying new. For what I was looking for I could have saved a little buying used but the difference wasn't enough to make it worth it at least in my opinion. I would have had 2 years less warranty, miles(albeit very low), and the difference between that and a end of year new purchase wasn't enough for me.

[FromMyColdDeadHand]

Toyota Landcruiser and 4Runner, and Jeep 4door wranglers seem to hold their value to the point where used isnt’t Much of a discount especially when you consider how they could have been treated.

[GH41]

Car or truck that is.

Most (all?) financial planning articles seem to say, "no". Are they right?

Opinions?

The vehicle you are buying and what you use it for makes a difference. My wife has a thing for Volvo wagons and she only drives 6,000 mile a year. She trades every 4-5 years depending on when the warranty expires. The last one she traded was 4 years old and had 22,000 miles on it. She paid $34,500 for it originally and traded it for $25,000 after getting a $2,500 discount on the new one. It helps by buying at the end of the model year when the new models are already on the lot. When you roll over that kind of equity into a new car, are able to deduct the mileage for her job and get a $600 per month car allowance it make little sense for her to drive a used car. Moral of the story... If you need a pickup to use up hauling rocks, drive 50,000 miles a year and are able to handle unexpected repair cost you are better off driving used. What kills me is the person that buys a cheap Kia that is worth nothing when 5 years old!

[Renegade]

Car or truck that is.

Most (all?) financial planning articles seem to say, "no". Are they right?

Opinions?

Why would it ever be a bad idea?

So the vehicle you want/need is sitting there on the lot, new. But you do not buy it till someone else has owned it for a few years? Makes no sense to me. Buy what you want, when you want.

[BuzzinSATX]

There are some pretty significant warranty benefits for buying a certified used vehicle. Most power train warranties are much higher.

For example, my daughter bought a certified used 2018 Forester in Feb. had 20K miles and 10 months old. She got remainder of factory bumper 2 bumper, PLUS a 7 year, 100K powertrain (from new). For $1600, she put a “wrap around” B2B warranty good through 100K.




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[Hmac]

We have a few vehicles...different purposes and seasons. Fun, work/hauling, transportation. We always buy new, keep them about 45,000 miles and buy new again. It doesn't make financial sense...it's an indulgence.