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Married to a Louie Lover
Posts: 3303
  
| So we are in the market for a reliable new (to us) vehicle.
I'm a huge number puncher and I probably over think things.
Any used vehicle we buy will be under 50,000 miles, probably closer to 30-35k, 3 years old at the most.
If I keep my current job I'll be putting 30-36,000/year on it. Meaning by the time we pay it off on a 5 year note (assuming no early payoff) it will have 150,000-200,000 miles on it. We are pretty set on a Honda CR-V, we've turned over 200,000+ miles on a lot of Hondas in my family so that part doesn't phase me. With that kind of yearly mileage we'll be out of all the warranties within 2 years most likely.
The CR-V's got redesigned for the 2017 model year, I drove one the other day and really enjoyed it, some of the redesign features include it sitting higher and having better head room, things that matter to us tall folk. Some of the things are bells and whistles.
I'm heading over to drive a 2015 at lunch and see how big a deal those redesign features are.
There's around a $10,000 price difference in the new 2017 and the 2015 with 37k miles on it. It's about $170/mo in payment (which now that I look at that number in black and white makes me realize that's my feed bill for 4 horses. Makes it a little easier to think going the used route).
Does anyone else have pro's/con's to add? Does anyone buy new and trade up every couple years? Why? We thought about that too just with the amount of miles going on it.
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 Expert
Posts: 5293
 
| I never trust what other people did to cars so I rarely buy used unless its from someone I know and trust. Rather than buy used, I bought a BRAND NEW 2016 Nissan Versa for 9,000 out the door. Does not have bells and whistles but it does come with 100,000 mile Bumper to Bumper warranty. I would rather drive it knowing I won't have repair costs then drive a better car with no warranty. |
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 Miss Laundry Misshap
Posts: 5271
| I think your best bet is getting a program car. They usually have around 20K miles or less and the sticker shock is worn off because cars depreciate so fast. That is what I am doing currently, forced by a totaled hail damaged car.
A lot of times, the cars are also certified used through the company because they are still within original warranty as well. When you get older than one year, and into higher mileage, I'd be leary as to why the car came back so soon. If it was a lease, and they disclosed that, you'd probably be ok. |
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 Expert
Posts: 3815
Location: The best kept secret in TX | My Hyundai has a 100k mile warranty. All of them do. 10 year 100k.
If you keep it until it has 90-100k miles on it and trade it in and get a new Hyundai, Hyundai will give you more for it if you trade for another Hyundai. They have a trade in program that's awesome.
Anyway, by the time you put that many miles on it your negative equity will be most likely paid off depending on your credit and your interest rate. Trade in for another new one and do it all again wihtout any roll over. Well worth it.
My Santa Fe Sport gets upwards of 30- 34 mpg on the highway. Lots of room and way bigger than the CRV.
Did I mention I only paid $22k for mine? They have great deals on them all the time.
Edited by IRunOnFaith 2017-03-21 11:25 AM
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Married to a Louie Lover
Posts: 3303
| Thanks guys -
I will add the Santa Fe to the need to drive list.
We need an SUV, we've juggled several cars in the last year and they just aren't comfortable for us to ride in, it think a lot of it is we are broad shouldered and the seats feel narrow. Anyway, it is what it is. I'd drive my 3500 dually everywhere if it was practical, but it's not and we'd like to keep it low mileage to preserve its value.
The # of miles we'll put on it vs negative equity and depreciation was what I was really trying to wrap my head around. I never really consider vehicles investments because they depreciate, it's what they do. But I don't want to be horribly upside down after a year because I drive a lot. |
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 Expert
Posts: 2097
Location: Deep South | On average, a new vehicle depreciates 19 percent in the first year, half of which occurs immediately after you take possession. Then, a 15 percent drop in the second and third years. As your vehicle approaches five years old, depreciation slows considerably until it becomes negligible, usually at the 10-year mark.
^^ This is why I never buy brand spanking new. I let someone else take that depreciation loss. |
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 Money Eating Baggage Owner
Posts: 9586
Location: Phoenix | BamaCanChaser - 2017-03-21 10:53 AM
On average, a new vehicle depreciates 19 percent in the first year, half of which occurs immediately after you take possession. Then, a 15 percent drop in the second and third years. As your vehicle approaches five years old, depreciation slows considerably until it becomes negligible, usually at the 10-year mark.
^^ This is why I never buy brand spanking new. I let someone else take that depreciation loss.
Ditto. I financed new once and I couldn't afford the depreciation. I was upside down in no time. I'll never buy new ever again! |
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 Veteran
Posts: 103
Location: Georgia | Not really what you are asking but just wanted to tell you I bought a 2016 CRV new, cloth seats and they are the most uncomfortable seats ever. I like everything about this car except the seats. Wish I had bought leather, they were much more comfortable. |
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  Fact Checker
Posts: 16575
Location: Displaced Iowegian | Once you have a vehicle in mind, go online and research dealers in your vicinity (within 200 miles) and look for 2016 or even brand new 2015s still sitting on the lots. We have always purchased "new" but look for last year's model.....their incentives and mark downs take a lot of the "hit" out of the depreciation $$$s |
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Location: Not Where I Want to Be | cj jet - 2017-03-21 2:16 PM Not really what you are asking but just wanted to tell you I bought a 2016 CRV new, cloth seats and they are the most uncomfortable seats ever. I like everything about this car except the seats. Wish I had bought leather, they were much more comfortable.
that would be exactly/100% the same seat with a different cover. Sort of like changing the bed spread on your bed.
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The Advice Guru
Posts: 6419
| I always buy new, because in the long run it will last longer.
I also use my car 90 percent of the time for work.
I really don't care what brand, what style, and what options. My current car is plain and I got it for what the dealer says under their cost, (13k everything included)
Other things to look at is pricing out oil changes and tires. Sometimes the car may be cheap but they get you on the 200$ oil changes. |
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Married to a Louie Lover
Posts: 3303
| cj jet - 2017-03-21 1:16 PM
Not really what you are asking but just wanted to tell you I bought a 2016 CRV new, cloth seats and they are the most uncomfortable seats ever. I like everything about this car except the seats. Wish I had bought leather, they were much more comfortable.
I'm not 100% what I'm asking either, lol. Other than just gathering opinions because my fiancé says he's okay with whatever I decide.
The depreciation I get. But I have also suffered depreciation on used vehicles - for example bought a Civic at KBB value for $6k one year and sold it 17 months later plus 30,000 miles for $2k, also kbb value. They aren't appreciating assets, just depends on how quickly you want them to depreciate. |
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 Too Skinny
Posts: 8009
Location: LA Lower Alabama | I buy used with under 30k miles. They have taken the new car hit and the car more than likely was taken to the dealer for its "free" services to keep up with the warranty regulations. I got rid of my Nissan because the CVT transmissions are $500 to service through the dealer to keep the warranty. So keep in mind the cost of routine maintenance when purchasing certain brands.
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Member
Posts: 31
| I am in sales at a dealership. I strongly suggest if you plan on putting that many miles on a vehicle in a year I would suggest purchasing gap insurance just in case you are in a wreck and total the vehicle. If you plan on putting a sizable amount of cash down then that would change things. I just say this from experience. It is easy to get upside down in a car (even if you plan on keeping it). If you have any questions feel free to PM me. I promise I won't try to sell you anything |
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 Ms. Marine
Posts: 4641
Location: Texas | My husband worked at a car dealership for a while and the best thing you can ever do for yourself is to NOT buy brand new. Dealerships didn't pay that sticker price for the vehicle and when you buy brand new, you're really just outing yourself several thousands of dollars. Better route is to buy certified pre-owned, which means that the vehicle comes with an additional warranty and any work that needs to be done to it within that warranty would be covered. It also means that the vehicle has to be up to a certain standard before they will even certify it. Most vehicles that are sold that way are vehicles that were leased. |
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 Veteran
Posts: 224
Location: So Cal | I bought used (a 2013 model in 2014) with 36k miles. I got it from the Toyota dealership (Camry) and it was one of their "Certified" used vehicles so came with warranties (not a long time on the bumper-to-bumper but it's 100k mile powertrain). These cars run forever and I put a good number of miles on my car (at 90k now), so I really didn't see any benefit in spending a lot more for a NEW car. |
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Expert
Posts: 3815
Location: The best kept secret in TX | OhMax - 2017-03-21 11:35 AM Thanks guys - I will add the Santa Fe to the need to drive list. We need an SUV, we've juggled several cars in the last year and they just aren't comfortable for us to ride in, it think a lot of it is we are broad shouldered and the seats feel narrow. Anyway, it is what it is. I'd drive my 3500 dually everywhere if it was practical, but it's not and we'd like to keep it low mileage to preserve its value. The # of miles we'll put on it vs negative equity and depreciation was what I was really trying to wrap my head around. I never really consider vehicles investments because they depreciate, it's what they do. But I don't want to be horribly upside down after a year because I drive a lot.
My SO is well over 6 foot and is very broad shouldered. He steals my car frequently to drive because it's more comfortable than his truck. LOL |
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Elite Veteran
Posts: 656
| Hertz rent a cars usually sells with about20-30,000 miles, they usually have a lot to choose from |
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Industrial Srength Barrel Racer
Posts: 7268
| For cars, I buy used with under 30K miles and buy an extended warranty (and those are NOT cheap - last warranty I bought was $3500 - and sadly, with my Caddie, it has paid for itself). Now with trucks, the last couple, I bought new because it's very hard to find a diesel with low mileage that isn't danged near the same price as a new one.
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Married to a Louie Lover
Posts: 3303
| micaela.carlile - 2017-03-21 3:39 PM
I am in sales at a dealership. I strongly suggest if you plan on putting that many miles on a vehicle in a year I would suggest purchasing gap insurance just in case you are in a wreck and total the vehicle. If you plan on putting a sizable amount of cash down then that would change things. I just say this from experience. It is easy to get upside down in a car (even if you plan on keeping it). If you have any questions feel free to PM me. I promise I won't try to sell you anything
That's the one extra thing i do let them talk me into, I've had gap on all my vehicle loans. Glad to hear it may be worth it.
Discussing options and planning to drive a Santa Fe soon. I drove a Hyundai Tuscan and didn't care for the smaller size. They also have some 2016's so looking at those as well.
Not seeing a lot of price variation within 200 miles though on the models I've got on my list still, small enough that I'd rather negotiate with the local guy and get him down a little more over trying to find a day where my fiancé and I can get away long enough for a 6 hour road trip. |
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Miss Laundry Misshap
Posts: 5271
| Griz - 2017-03-22 5:56 AM For cars, I buy used with under 30K miles and buy an extended warranty (and those are NOT cheap - last warranty I bought was $3500 - and sadly, with my Caddie, it has paid for itself). Now with trucks, the last couple, I bought new because it's very hard to find a diesel with low mileage that isn't danged near the same price as a new one.
Trucks don't depreciate nearly as fast as cars! Heck cars lose about $5K the minute they leave the dealership driveway! Maybe more! |
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Industrial Srength Barrel Racer
Posts: 7268
| Nateracer - 2017-03-22 8:19 AM
Griz - 2017-03-22 5:56 AM For cars, I buy used with under 30K miles and buy an extended warranty (and those are NOT cheap - last warranty I bought was $3500 - and sadly, with my Caddie, it has paid for itself). Now with trucks, the last couple, I bought new because it's very hard to find a diesel with low mileage that isn't danged near the same price as a new one.
Trucks don't depreciate nearly as fast as cars! Heck cars lose about $5K the minute they leave the dealership driveway! Maybe more!
I know! It's crazy what my "old" 2006 is still worth!! It only has $56K on it. I dread the day I have to buy a new one as I'm sure the dealers will RAPE me. I'm sure I'll try to sell it on my own first. |
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Money Eating Baggage Owner
Posts: 9586
Location: Phoenix | If you are finding 1-2 year old cars with 25-40k miles it is most likely a rental car That has been sold to a dealership. Just FYI. Which is how I ended up with a new Kia Soul! Couldn't find a Used one without a ton of miles so we bought new. Big mistake. It got totalled, insurance paid it off (thank GOD) and then I started over with a 60k 09 Elantra for $6000. I put about 20,000 miles on my car each year so I plan to drive this thing until it dies. I wouldn't want to spend any more than I did! |
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 Accident Prone
Posts: 22277
Location: 100 miles from Nowhere, AR | My Tahoe was a courtesy car with about 3000 miles on it. Saved me over $2000 at that dealership and it was $3-6000 less than any other dealer I tried to work with, comparably equipped to lesser models. If you find a dealer that does loaners for customers getting vehicles serviced, they'll have what they call program, demo, or courtesy cars that are discounted with very low miles, dealer financing just like a brand new one, and warranties. I priced against the ones coming off rental fleets and this was a better deal. |
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Another car discussion - new vs used