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Agree generally with these points except for the buying used cars. Buying new, inexpensive cars are a much better investment if you plan on owning them for a l
by k2xl 9y ago
Agree generally with these points except for the buying used cars.
Buying new, inexpensive cars are a much better investment if you plan on owning them for a long time.
Used cars don't last as long, and they carry more risk. The amount of money spent on repairs can be unpredictable.
- baccredited 9y agoI don't disagree. But... the average American owes over 30,000 in car debt. Just be smart. http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-and-for-longer-on-their-auto-loans.html http://www.cnbc.com/2016/06/02/us-borrowers-are-paying-more-... I favor buying used cars under 3 years old that still have like 75K or more of manufacturer warranty in place.
- theandrewbailey 9y agoI've heard cars sold by rental car companies are like new, but cost about half as much.
- noxxten 9y agoRental cars are hit or miss. You either end up with the one that didn't get much use outside the average business trip... Or the car that was abused. My last car was an ex-rental car, and it deteriorated very quickly after I signed the loan for it. Be careful.
- maccard 9y agoHaving driven many rental cars, I'd never buy one...
- thirdsun 9y agoThe problem with rental cars is that everyone treats them as if it isn't theirs. I'd be careful about buying something nobody feels responsible for.
- runamok 9y agoThat used to be true but if you get a used car that has records of regular oil changes and maintenance there is a high probability it will be fine. Most cars are designed to last 200k or more miles these days. Think of it this way, is the depreciation between a new and lightly used car enough that you can afford a major maintenance event like engine or transmission repair? If so used is fine. The type of used car matters too though. Think Toyota Corolla and not bmw 3 series...
- kamaal 9y agoA new inexpensive Honda or Toyota will still win over an older one. Frankly speaking you will spend only marginally higher for the new car. And yes the thing about frequent repairs could happen with the older car.
- runamok 9y agoCorolla starts at $18,500 vs. here are the prices for older models: https://www.cargurus.com/Cars/price-trends/Toyota-Corolla-d295 https://www.cargurus.com/Cars/price-trends/Toyota-Corolla-d2... Those look like very significant savings to me. And what does "Win" mean? As far as safety goes I agree a 2017 corolla is demonstrably better than a 2000 one. A 2010 Corolla will save you $10000 over a 2017 one. My core premise is most new cars are of much better quality than those from 20+ years ago when it made sense to buy new because that 36k warranty and 60k power train warranty was critical. These days most cars will not fail that early unless it is on petty cosmetic things. My wife had a 1999 Corolla that made it > 300000 miles on it. IIRC all she did was oil changes and occasional maintenance like brakes. The biggest repair I was involved with was when the starter motor wire shorted to the chassis and burned up the wiring harness. That would have been an expensive repair to do "right" by pulling the entire harness but I instead replaced the wires with burned insulation one by one with correct gauge soldered and shrink wrapped and as far as I know is still alive and well with a relative. I think the repair cost me a few $100 but that car had no major work done over its life span AFAIK. There's my anecdata...
- AnimalMuppet 9y agoIt's not just money. A car that's in the shop is a car that you can't use. So you have to make alternate arrangements while it's in the shop, plus figuring out how you're going to get it to the shop. A cheap but unreliable car is a false economy. Also, do regular maintenance. Change the oil (or have it changed). Change the transmission fluid. Change the timing belt. A good car can last a decade or two with good maintenance.
- thatwebdude 9y ago"Smart Cars" (As they were once marketed before actual Smart Cars) and "Used Cars" are not the same to me. Buying something 1 or 2 years old at 75% of the price with less than 20k miles just feels new to me. But maybe I've trained myself for that.
- dragonwriter 9y agoBy “Smart Cars” do you mean something like certified pre-owned cars?
- thatwebdude 9y agoYes, exactly. The marketing local used to be "certified pre-owned" = "smart cars". The terms were used interchangeably, usually by differing brands.