That's easy. In the last month I needed to buy a car. My van is pretty unreliable. My 2 Miata's only hold two people and it's been a real pain taking two cars when 3 or 4 of us have to go somewhere at the same time.
And I can't find a used car I want at a price I'm willing to pay. The math just isn't working out. At least not in my favor.
I found a 2008 Toyota 4Runner. 60k Miles for $19,000
6 years old. Now mind you this car was around $29,000 when new. The new model can be had for $34,000 with tax. $0.25 per mile is really cheap for those first 60k miles. He may have put on a set of front brakes and possibly a set of tires but that's about it except oil changes.
The next 60k miles and 6 years will probably see this car go to 8 or $9,000. That's a pretty linear depreciation. That's actually the sign of car that holds it's value. This is the kind of car you can buy new or used and you won't go wrong.
Did I mention that my Mother has a 2000 4Runner with 174k miles. New $20,000. Less than $200 a year to maintain. That includes tires, brakes, oil changes and batteries. That's less than $0.12 a mile, that's 12 cents, even if she junked it today. But, it still runs great. The key to that might just be driving your car like an old lady (she was 70 when she bought it). Also doing routine maintenance. Keeping it in a garage it's whole life.
Friday, August 8, 2014
So, should you buy used?
Only if you can find the used car you want. Even a used car for most people is worth less the minute you drive off the lot. Just because you like that car doesn't mean someone else does.
If you buy from a dealer they had to make some money on it. That could be $100 or even a few Thousand. If you bought it from a Private Party and it's a car everybody wants "today" it might not be a car anybody wants 6 months from now. When new model cars come out, dealers usually discount last years model so almost everyone has a car that is worth less. The new pricing books usually come out every 3 months at least. There are exceptions to the rules but they are very few.
Don't buy a White car. Very few people want white cars. The only people who should buy white cars are people who plan on putting business graphics and phone numbers on them. Even where I live in Arizona a white car doesn't stay any cooler on the inside. Silver is OK because it hides dust but it's just one step above white.
Black. They look pretty but it takes a lot of work to keep them that way. The darker the car the more it takes to maintain the paint. Just go look at www.chemicalguys.com and see what they have to do to make an older black car look nice.
www.bankrate.com has some really good advice on how to test drive and buy a used car.
I have bought many used cars in my life. I have had some very mixed outcomes.
Here are a few recent ones.
Dodge Grand Caravan.
Don't buy one. I did. Never again. Although it has lots of room, disappearing and fold flat seats they suck.
Dodge Grand Caravan. 3 years old with 60k miles. Pretty bare bones. What do you want for $16000. Anyway it served us pretty well for the 6 months we had it but it again just wasn't a car we really liked. It fit all the dogs, the kids, camping gear and it held a lot of dog food. I sell dog food. When we sold this one 6 months and 6k miles later. We took a big bath. Almost $7000. That hurt. Nobody wants a bear bones minivan. Especially one where the rental car companies dump thousands of higher end models on the market every year. If you really want one buy a loaded Chrysler Town and Country. It's the same car but a much higher trim grade. It will also cost about 30% more.
The we have our Ford Flex. We got a decent deal on it and drove it for 6 months and about 6k miles. We didn't really like the Flex. It was to big. We called it The Boat. When we sold it we only lost $1000 so that wasn't to bad for putting on 6K miles. It wasn't white. It had the options people wanted and it was actually a pretty nice car with lots of room. Almost as much room as a Honda Pilot. It just sits much lower.
I also have a 1999 Mazda Miata. Bought it with 150k plus miles on it for $3000. I might have even paid to much. But for 3k it runs great, AC works well and if it gets damaged or needs a big repair I can just junk it. Plates are cheap and I don't need collision insurance. Also I don't really worry when I park it if someone is going to scratch, dent or ding it. That felling is almost as nice a driving in your brand new $40,000 baby. The one you park far away from everybody else. The one where you would just cry if it gets a bruise.
If you are only going to keep a car for 3 years or less, buy used. Buy a car that is already 3 years old. Let the other guy take the really big depreciation hit. Close to 50% on most cars.
If you take your time and look around for exactly what you want you can get a pretty good deal. You might like it so much you keep it longer than 2-3 years. If you don't it wont cost you that much either. Most 3 year old cars still have around 30-40k miles where the maintenance is still pretty cheap.
Stay away from Salvage or Rebuilt cars unless they are really cheap and you plan ok keeping it a very long time. That's like Herpes. So is a Carfax with Frame Damage. take at least 25% of the value of the vehicle.
If you buy from a dealer they had to make some money on it. That could be $100 or even a few Thousand. If you bought it from a Private Party and it's a car everybody wants "today" it might not be a car anybody wants 6 months from now. When new model cars come out, dealers usually discount last years model so almost everyone has a car that is worth less. The new pricing books usually come out every 3 months at least. There are exceptions to the rules but they are very few.
Don't buy a White car. Very few people want white cars. The only people who should buy white cars are people who plan on putting business graphics and phone numbers on them. Even where I live in Arizona a white car doesn't stay any cooler on the inside. Silver is OK because it hides dust but it's just one step above white.
Black. They look pretty but it takes a lot of work to keep them that way. The darker the car the more it takes to maintain the paint. Just go look at www.chemicalguys.com and see what they have to do to make an older black car look nice.
www.bankrate.com has some really good advice on how to test drive and buy a used car.
I have bought many used cars in my life. I have had some very mixed outcomes.
Here are a few recent ones.
Dodge Grand Caravan.
Don't buy one. I did. Never again. Although it has lots of room, disappearing and fold flat seats they suck.
Dodge Grand Caravan. 3 years old with 60k miles. Pretty bare bones. What do you want for $16000. Anyway it served us pretty well for the 6 months we had it but it again just wasn't a car we really liked. It fit all the dogs, the kids, camping gear and it held a lot of dog food. I sell dog food. When we sold this one 6 months and 6k miles later. We took a big bath. Almost $7000. That hurt. Nobody wants a bear bones minivan. Especially one where the rental car companies dump thousands of higher end models on the market every year. If you really want one buy a loaded Chrysler Town and Country. It's the same car but a much higher trim grade. It will also cost about 30% more.
The we have our Ford Flex. We got a decent deal on it and drove it for 6 months and about 6k miles. We didn't really like the Flex. It was to big. We called it The Boat. When we sold it we only lost $1000 so that wasn't to bad for putting on 6K miles. It wasn't white. It had the options people wanted and it was actually a pretty nice car with lots of room. Almost as much room as a Honda Pilot. It just sits much lower.
I also have a 1999 Mazda Miata. Bought it with 150k plus miles on it for $3000. I might have even paid to much. But for 3k it runs great, AC works well and if it gets damaged or needs a big repair I can just junk it. Plates are cheap and I don't need collision insurance. Also I don't really worry when I park it if someone is going to scratch, dent or ding it. That felling is almost as nice a driving in your brand new $40,000 baby. The one you park far away from everybody else. The one where you would just cry if it gets a bruise.
If you are only going to keep a car for 3 years or less, buy used. Buy a car that is already 3 years old. Let the other guy take the really big depreciation hit. Close to 50% on most cars.
If you take your time and look around for exactly what you want you can get a pretty good deal. You might like it so much you keep it longer than 2-3 years. If you don't it wont cost you that much either. Most 3 year old cars still have around 30-40k miles where the maintenance is still pretty cheap.
Stay away from Salvage or Rebuilt cars unless they are really cheap and you plan ok keeping it a very long time. That's like Herpes. So is a Carfax with Frame Damage. take at least 25% of the value of the vehicle.
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