Should I buy a used car or new car?
Posted by BrutalManners@reddit | askcarguys | View on Reddit | 84 comments
Sorry if this is a stupid question.
I have never owned a car before but have driven cars for a few years. I need to buy a car and am wondering whether or not I should buy a used one or a new one.
My budget is up to 20k.
Thank you.
Buci__1@reddit
Used hands down. There is nothing a $40k new car will do that a used $20k won't do, apart from taking your money.
CompletePractice69@reddit
BUT! What if I can find a new car for cheap - is it a no brainer to go with a new car?
Justanotherhitman@reddit
Cars deprecate the most within 5 years.
Do you have any mechanical knowledge or are you open to learning or just wanting to take it in for fixes?
If I were you OP I would look for a 5+ year honda or toyota around 50k miles for 5 6k under your budget then put that away for repairs that come up. If you do this make sure to get one with a service history that you know was well taken care of
Exciting_Ad7720@reddit
I'm currently doing this and I will say good luck. Even if its a civic or corolla model. Their used car prices are insane even with 50k miles
Justanotherhitman@reddit
100% gonna have to look for 90s early 2000s. I found a 97 celica with 104k with fresh clutch for 5k
BrutalManners@reddit (OP)
I have zero mechanical knowledge and am not a car guy at all. But I have always wanted to get a Toyota due to the fact that they're reliable. I will do what you said. Where do you suggest I look for a Toyota under these parameters? Should I look at actual Toyota dealerships that have used/certified preowned cars? Thanks.
ileenyama@reddit
Hey! If you're buying a car, I can help make sure you're not getting taken advantage of. With years of experience as a finance manager, I can review your purchase order and point out any hidden fees or red flags. I charge a really low flat rate for this service, so it's a great way to get peace of mind before signing anything. Feel free to reach out if you'd like me to take a look!
RudderForADuck@reddit
Always used! You can find pretty much any kind of used car for any purpose under 20k, a new car under 20k will net you a compact car at most. Nothing wrong if you love the Versa or... the Mirage?... but your choices are very limited.
-RdV-@reddit
Good rule of thumb is:
Is someone else paying for it?
Do I no longer know what to do with all this money?
Is this the most cost effective way to make me feel good?
If one or more of those are yes you should buy new.
LopsidedCat8938@reddit
I LOVE those 3 questions! My last 2 cars that I bought new I could answer yes to at least 2 of the 3!
MUTHER-David7@reddit
Just don't be a fool and buy some high mileage vehicle for the sane price. Don't fuel the post pandemic price gouging.
LoadMammoth6138@reddit
Yeah,you are right there, now a shit box costs too much money and a good deal (car) to find is not easy...
kstorm88@reddit
You must not be looking. Plenty of decent sub 5k vehicles
Odd-Afternoon-6371@reddit
I agree that Market Place can be good, if you know what you are doing. Of course you need to take car to a mechanic and pick apart the car fax, but it can be a good place. One can get screwed over at the car dealership also.
Castabae3@reddit
Found my 2016 Impala Limited with 75k miles on it for $5.5k \~9 months ago, The deals are out there you just have to search harder and smarter.
MUTHER-David7@reddit
The deals are there, you just have to do the work to get them.
There's nothing wrong with buying a used car. Financially, it's the best choice. Vehicles are depreciating assets. Pre pandemic, a vehicle, depending on certain models, lost most of its value within 5 years. Not the other way around.
BrutalManners@reddit (OP)
Yes that’s exactly why I’m trying to educate myself here
MUTHER-David7@reddit
Stay away from buy here, pay here lots.
Do not ever buy a used vehicle sight unseen.
ALWAYS have a used car checked out if you don't know what to look for.
NEVER truly believe what a seller says unless it can be checked out and verified.
Don't buy any vehicle on Facebook marketplace. It's unregulated and rife with scams. This is important. Never buy a used car or anything on social media, you're just asking for trouble if you do.
Always make sure the vehicle has a clear title and the ORIGINAL keys. Copies and replacements raise my suspicions.
You have a good budget. Go to your local Toyota dealer. You can score (usually) a nice late model Corolla for what you can afford. And they last forever.
JichuSymphony@reddit
Out of curiosity why do people say to avoid buy here pay here dealerships? Is it because the quality of the cars is lower?
ChrisGear101@reddit
They buy auctuon cars that big dealerships don't want. They shine them up, mark them up, and flip them with zero history on the car. Run, don't walk away IMHO. Now, there may be exceptions, but I ain't feeling lucky.
MUTHER-David7@reddit
Much, much lower. All you will find are hideously overpriced, high mileage and worn out cars. They get their stock at auto auctions where cars go to die.
The interest rates are exorbitant because the people who have to go there are dead beats with bad credit. It's in the same industry like Rent A Center. Where you pay $4k for a $400 Amana washing machine.
And if you miss one payment? The GPS tracker they plant in the car will allow the friendly repo guy to easily repossess your car. You will forfeit all monies you paid and probably will still owe money on a car you no longer own.
Then they resell the car and the cycle usually repeats. It's a legal racket in some states.
kstorm88@reddit
If you have any sense, buying from private parties is just fine. The last dozen vehicles I've bought were private party.
MUTHER-David7@reddit
Yes it is. Just practice your due diligence. Private sellers do have a higher level of risk.
Hot_Opportunity5664@reddit
Yes, no Warranty
kstorm88@reddit
True, but I guess I live in the Midwest where people know people and usually aren't going to screw you over intentionally
MUTHER-David7@reddit
I live in New Jersey, originally from NYC. So I'm more cautious.
LoadMammoth6138@reddit
👍
kstorm88@reddit
Look on Facebook marketplace. Don't go to a lot
MUTHER-David7@reddit
NO NO NO Facebook marketplace is not a safe place to buy a car. Social media is not the place to buy a car. Too many scams.
kstorm88@reddit
Yes yes yes, if you have a lick of common sense. I've literally bought every vehicle I've ever owned from private parties.
MUTHER-David7@reddit
Buying from a private seller is one thing but NOT through Facebook marketplace. I've sold several vehicles privately but always the old fashioned way. In person and in cash. Title in hand.
bagofspice@reddit
You must be a old head
MUTHER-David7@reddit
You must pick things up and put things down
kstorm88@reddit
I'm really confused, so only by posting in the newspaper or the little pull tab fliers at the grocery store? Not a lot of variety when searching used vehicles. You might get a whole 10 cars to look at each week.
mangomane09@reddit
It depends on the make and model tbh. For example I’ve been looking at a Ford Maverick.
A used 22 with 30k miles is going for $28,500 but a new one is going for $32k. As my dad likes to say, “do the math”
It’s hard to find deals on used cars now but they’re out there
urbiggestfan28@reddit
Might be a dumb question but is the math saying you should get the new or the used here? To me (a noob), it sounds like the used is good here, but I’m not sure if others would say different
mangomane09@reddit
30k miles is a little on the high side for a 2 year old car for me
urbiggestfan28@reddit
No the “essay” was nice haha. Sad about the shift. Before, I was always certain that I would buy used, but now it’s worth considering buying new given how things have changed.
mangomane09@reddit
For sure! The good thing is it is getting better but it still hasn’t gone back to pre-Covid pricing. I doubt it ever will since car dealerships are always going to try and get every dollar they can.
Within the last year someone posted a used VW Golf going for $100k. I can’t recall the mileage but last I checked the most tricked out Golf is going for around $50-60k lol
I’m not at all saying that buying brand new is the way to go, but it makes more sense than it did before.
Back in August I bought my first brand new car. It checked every box. All the used models I could find were 2-3 years old with 20-30k miles for about $25k. Brand new out the door mine was $30k. I thought of it as another add on / convenience package. For $5k I got a brand new version of the car I want 🤷♂️
Just do your research and you should be good. This subreddit helped me out 👍
mangomane09@reddit
I’m by no means a car buying expert, but ultimately it depends on what you’re comfortable with. The short answer is used cars are so much more expensive, the better financial choice could be to buy new given a few factors.
Before covid the prevailing wisdom was to buy used because:
-generally only a few years older so just as capable as a brand new car
-since the value of your car drops by a significant amount when you buy a brand new car off the lot, buying used is a way to mitigate that value depreciation
( in other words instead of YOUR car losing the value when you drive it off the lot, it’s already happened to someone else so YOU don’t take as much of a hit since you buy it used)
Using that same example as above, before Covid the used Maverick might’ve gone for $18-25k because of the miles which would have been a great deal and worth considering buying used.
But after Covid the thinking has flipped bc of the higher prices. Again using the same example, instead of a 2 year old car that already has 30k miles, for a $3500 premium you can get the same car brand new, which also includes a manufacturer warranty, peace of mind that it’s mechanically sound because nobody else has driven it, and that means with proper maintenance you can expect to keep it longer and it will last longer than a used car.
Sorry for the essay but I hope it helps, happy thanksgiving!
Fair-Win6631@reddit
Buy used. Go to carmax. Get the carmax warranty. I’ve bought so many cars there
Buying new is dumb. The depreciation on cars is so bad. Is a 40k miles 4 year old car considered used in America?
WhilePleasant@reddit
What?? 40k miles? Even if it was never owned and is still at the car dealership, that means it was taken on like 10 THOUSAND test drives. Doesn’t matter which country you are in, that’s a used car.
Used-BandiCoochie@reddit
2-4 years old is my sweet spot with 20k or so miles. Off the lot depreciation is gone. Factory warranty is still there sometimes. It use to be 4-5 when I was younger. This might be the case for you!
Reason: rubber parts and seals tend to deteriorate at the 10 year mark. I figure a sound machine should get me 6-8 before I trade it in and the real nuisances start rearing their head.
Maintenance: is upkeeping the vehicle.
Repairs: something unexpected has broken.
You want your machine to have scheduled downtime, not unexpected downtime.
I keep repairs out of my life in general so I keep newer machines.
pickled-thumb@reddit
Factory warranty is not usually transferable right?
ChrisGear101@reddit
IMHO, buy used, pay a mechanic for a pre purchase inspection. It'll pay for itself. If the private seller won't allow an inspection, talk away. The inspection is a great haggling tool. Take the list of issues to the seller and start reducing the price. Buy from real private owners only, no lots or flippers. Finding elderly owners can be a great way to get used vehicles that haven't been beaten on, but an inspection is still gold!
BrutalManners@reddit (OP)
Thanks. The question is how do I find an elderly seller? That sounds specific. I’m in Florida right now
ChrisGear101@reddit
If you cant find an elderly person here in Florida, I can't help you. Just kidding. But as you shop around, you'll find all kinds of sellers.
GrouchyGrouse@reddit
Most of the time, used cars make more sense, because someone else has paid for the bulk of depreciation.
On this forum, many folks will suggest getting a used Toyota (Corolla, Camry, Matrix), Honda (Civic, Fit), Mazda, or Subaru. And those are great suggestions for affordable and reliable used cars.
However, the post-pandemic used car market is (still) insane.
Sometimes, it does make sense to purchase a new car. Especially in today’s market, good gently used Toyotas and Hondas can cost almost as much as new ones.
If you were financing your car purchase, keep in mind that interest rates on new cars tend to be much lower than rates on used cars. In general, however, try not to finance a car: people who finance tend overspend and buy more car than they need.
Warranty coverage is a potential reason to consider buying new: Hyundai and Kia cars in North America have had many reliability and theft issues recently. Fortunately they come with ten-year warranties, so hopefully original owners won’t be out that much money when their engines wear out after 60,000 miles. Unfortunately, those warranties are not transferable: so if you’re the second owner of a Kia and its engine melts down, you’re out of thousands of dollars. Personally, I’d avoid Hyundai and Kia. But if you had your heart set on a late model Kia, it makes more sense to buy new.
On the subject of warranties: if you get a gently used Toyota, Honda, or Mazda, you (usually) won’t need a warranty. Certain cars are just so consistently reliable.
BrutalManners@reddit (OP)
Great advice. Thank you. I'm focused on getting a Toyota Corolla or Camry. I am currently looking at used car inventories via Toyota dealerships by me. My only challenge is determining whether or not a used car costs high enough to justify purchasing a new model -- meaning, what's the breaking point in terms of dollars. Do you have some sort of calculation that you rely on when doing the math?
Heisenburg7@reddit
This depends on your priorities. But generally speaking, I would say used. You save a lot of money in depreciation.
MisterBitterness42@reddit
Reduce reuse recycle, buy used. I personally feel like the new car market is exploitative and wasteful. I just imagine the carbon footprint from producing and shipping one new car meanwhile people are literally throwing away decent vehicles with minimal damage because the cost of professional repair is 3x the cost of the part and nobody wants to try to fix anything themselves anymore.
watermooses@reddit
You know, if it weren’t for all those folks buying the new cars, there wouldn’t be the 2-3 y/o sub 30k mile cars everyone is suggesting.
MisterBitterness42@reddit
Touché, gotta keep the cycle going I suppose.
Worried_Amphibian_54@reddit
So if this is US dollars, well the number of vehicles under 20k is pretty slim.
A Mitsubishi Mirage (hell no) and a Nissan Versa S (still a solid no).
I would...
Find out what you want a car for? Lots of highway driving? Lots of transporting 2-3 other people? Lots of carrying things around? Driving in snow/ice? City driving and parking where something smaller is nice? Plan to off-road with it where that might be something you'd want?
Then a list of what you want. Performance, comfort, style, a specific body type (I've always liked hatchbacks more than most myself)... Do you want android auto or apple carplay? Adaptive cruise? A hybrid? A Convertible...
Then I'd start checking out cars with those features... and looking up how they are. No car site is perfect, but edmunds has solid reviews and lists comparable vehicles and they tend to review every model year or at least model update.
Then with that, you've got a list of 5 or so vehicles you are curious about. Now time to check them out. Don't buy on day 1. Just find reputable dealers with vehicles in/around your year and price range of the type you want and take them for a test drive. I wouldn't engage private sellers unless you are serious FYI.
But once you have your list down, now start looking at actual vehicles you want to buy. Find a site where you can get an idea what they are selling for (Edmunds is one that does this, KBB and others too). And get an idea of what the vehicle is worth.
Figure out your financing. Don't go to a dealer to buy without getting pre-approved through your own bank or a bank and know what kind of APR you can get. If you are paying cash, don't worry. But that will help you figure out if the dealership financing might be worth it or not.
Test drive, and if the dealer isn't reputable, or not certified pre-owned, or older/high mileage, definitely get a mechanic to take a look at it before signing. Def get a mechanic if it's a private sale.
Hold out if you think your offer is fair. No need to pay more. That 2015 Impala will almost surely be there tomorrow, and if it isn't... guess what, they made a ton of them, another will come along.
Worry about the finance numbers later. First get the price out the door. Then worry about the payments. You know your budget so don't get into the price per month bit.
D4ydream3r@reddit
OP needs to be educated on running costs, maintenance schedules/repairs, insurance. These need to be factored in for properly owning any type of vehicle.
Then there is the purchasing part. I do not think buying a “brand-new” vehicle from dealerships is the best option for savings since they lose value after you sign papers and drive it off the lot. But there is a peace of mind since you are having “brand new” with warranty. Least to think about.
Certified Pre Owned vehicles from dealerships are a great option as you’re not paying full price but still have warranty. These vehicles are used but also inspected and repaired to meet a standard before sale again.
Private Sales will have the whole range of used vehicles from owners trying to get out of their car loans to super old junk. This part is where you get the most savings and best bang for your buck but you have to take ownership everywhere from inspecting to maintaining/repair.
10 years/100k miles used vehicles seem to be the cheapest options since that mileage is when major maintenance is due and has gone through most of their depreciation before the deep dive to be completely under maintained rust buckets. So you’re getting a not so crappy car but you have to do maintenance.
There are also some holy grail vehicles that defies most of these rules which are 90s-2000s Hondas and Toyotas. They have proven to run past 200k miles with little maintenance, much further if properly maintained. Very easy to repair/maintain, but they are getting old and lacks security.
Since this is OPs first car, I’d recommend a super cheap beater, put some money in for maintenance and repairs. Drive it until the wheels fall off. Invest the remaining.
pch2lbc@reddit
Used car under 3y/o under 30k miles is a safe bet. You’ll have some manufacturers warranty left and still have some of the latest features. Newer and lower miles the better if you plan on keeping it for awhile. In that budget you can find reliable compact sedans/suv’s like Mazda’s, Toyota’s or Honda’s. If you want something bigger then you’d have to go older/higher mileage. Less than 5 years y/o and under 50k miles you’ll still have some power train warranty left (engine, transmission, drive train components)
Just_Schedule_8189@reddit
Buy used. Research it first. Typically only recommend Japanese or American used cars. They are reliable and cheap to fix. German cars are great but when they break down 😬 thats a bill.
Just_Schedule_8189@reddit
Always used.
Radioaficionado_85@reddit
There is no right answer here without knowing more of your circumstances. There are too many "it depends" to just say used or new. Both have pros, cons and unknowns. And those pros and cons also differ between makes and models.
YourFutureEx78@reddit
Is that $20k you have in cash or are you planning to finance up to 20k? Either way, as it seems you’re not yet a “car guy”, I’d recommend finding the cleanest, lowest mileage Toyota or Honda in your price range. Camry, Corolla, Accord, or Civic. Sedans tend to cost less on the used market because everyone has decided they need an SUV. Good gas mileage, reliable, and cheap to maintain.
airjutsu@reddit
Financing a used car for 20k might cost more money with the increased interest rate. At that price point, it’s better to finance a new Civic/Corolla for ~25k with the lowest interest rate possible, highest resale value, and lowest cost to maintain.
snowthechirurgien@reddit
In my life I would never buy a new car unless I’m really Rich , imo this is the worst waste of money. The value it loses just when it gets out of the dealership is incredible
muscle_car_fan34@reddit
Always used. No one ever needs a new car. A new car is a want not a need
1stAnastasia@reddit
Got myself a $14k new low end Kia Rio several years ago. Lasted 140,000 miles and almost no maintenance. Probably the equivalent of a $20k today. Risk with used cars is it’s a dice roll. Why? Because you never ever know how the original user drove. All brakes and heavy gas with tight turns can greatly deteriorate a car.
citrus_pods@reddit
the only thing new cars have over used cars is comfort 90% of the time. just test drive what you want. if you like it, it’s practice, it’s within the budget, get ut
traffic626@reddit
How much will you drive? Do you need to haul anything? Are you mechanically inclined?
Hot_Opportunity5664@reddit
Advantage of buying used on a car lot is most have 30/60 day warranty, ask for what they will offer
EddieCutlass@reddit
New…lots of reputable cars still available under $25k
LoadMammoth6138@reddit
A year or max two years old one with up to 20-25 Tkm and still with factory warranty. You spare value loss and you can have a better car than a new one for the same money amount.
mijoelgato@reddit
Those will cost virtually the same as new.
samit2heck@reddit
This is a decent answer. It also depends on what you need in a car!
BrutalManners@reddit (OP)
Very interesting, thank you for this info. Another stupid question, but what is "tkm"?
So basically, would you suggest I look up used cars from 2022 onward? Also, what used car website would you recommend where I can input these variables and see what's available?
Thanks again.
SuperHair69@reddit
Just bc you have 20k doesn't mean you need to spend 20k to get a decent reliable car. Also consider your insurance costs before you buy anything. You seem young so expect high rates.
LoadMammoth6138@reddit
Yes, Max 2022 due to warranty terms ( factory warranty is max up to 100 thousand kilometers or 6 years old) Not all brands have such good options, you have to check it out where you live.(What county)..
LoadMammoth6138@reddit
Country
LoadMammoth6138@reddit
Thousands of kilometers (Tkm) I'm in Europe.
LoadMammoth6138@reddit
I bought a Mazda 6 2.5i for 23 thousand a year and half old,a new one costs 45 thousand.and mine is better equipped .
mijoelgato@reddit
Clean titles only! No Reconstuct or Salvage titles, no matter how perfect the car looks.
OkProfessional9405@reddit
Generally speaking new cars lose 20% of their value the moment you drive them off the lot. Look for a 2 year old car that has taken nearly a 40% deprecation. This will depend on the model of car (how much it has depreciated).
Lucky_Baseball176@reddit
I have always been a fan of buying late model used. Makes the most financial sense.
so that means a car 5 or 6 years old, less that 50K miles. Market is tough right now, so it may take you a while. However you can get a lot more car for the money that way. A nice toyota avalon, for example.
JCDU@reddit
It's a trade off - if you buy new with warranty you can get 3-7 years of knowing that anything that goes wrong should be sorted out, BUT the car you buy new or nearly new will depreciate a LOT in those first years of ownership, so you can buy a 3-10 year old car that is a much "better" car BUT you take on the risk that it will need repairs that will cost you money.
If you've never owned a car before you won't know how big some bills can be - and newer or more high-end cars can mean some BIG bills if stuff goes wrong. Cars are machines with moving parts, things wear out, you need to expect that and budget for it - you can google some stuff like how much does a set of tyres cost or a service or a brake job, that will give you some ideas.
If you have 20k, don't spend 20k - spend 15k and put 5k aside for repairs & maintenance, life is far more relaxing that way. You don't want to blow all your money on a car and in 6 months it goes wrong needing 5k of repairs that you can't afford.
I drive old shitboxes because I can buy a perfectly good car for 2-3k and if it explodes tomorrow I can just buy another car for 2-3k, I know older cars will cost a little more in servicing and I have breakdown cover just in case - but once I've bought the car it owes me nothing, it barely depreciates (the most it can EVER depreciate is 2-3k after all!), and I'm not paying finance or anything on it. I keep 2-3k in a little savings account to cover bills or replacing the car if I feel like it.
rypien2clark@reddit
Buy new and run it into the ground. That's what I do. At least you don't have to worry if the previous guy maintained it correctly.
Dull_Information8146@reddit
Buy a used but good value car, not some 2023 XYZ that's still a down payment for a home.
Successful_Ad_9707@reddit
If you have 20k, there are very few new cars on the market that will meet your budget. If you just want something reliable, that's point A-B driving. I'd go with a used Corolla or Camry if you want something a little bigger.