The $12,000 Question: New vs Used

[YSSMAN]

In a small discussion out of the 2009 Ford Ka thread, a point had been brought up that it is questionable whether or not people would spring for a brand-new car in the $10-12K range versus what is available in the used car realm.

So, the question is, do you spring for cars like:

Is it better to get the new car feeling with a warranty, particularly with their massive increases in quality/reliability, and an ever-increasing "fun to drive" factor... Does it outweigh what can often be enticing used car deals?

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I know that in my position, I would certainly be interested in getting a brand-new car at a low-low price if it was at all possible to get a great car at that level. With fuel prices increasing, it certainly is a bonus to get something like this for so cheap and still be able to manage well above 30 MPG.

 

[Perfect Balance]

With 10-12k, your choices of used car are much bigger and better than what you've posted.

 

[Sage]

For >$15k, there are plenty of great new cars. For <$15k&#8230; eh.

 

[McLaren]

For that price range, I'd go used.

 

[niky]

It depends on what your needs are.

Obviously, if you want the quickest, poshest or most metal for your money at that price, you would go used... but if you want economy, both in terms of fuel costs and maintenance costs over the next three years, brand new is still the way to go.

It's interesting that C&D are thinking along these lines... a recent issue has a feature on the best sportscar you can get for $25,000, whether new or used, and reading through the list reinforces something I've known for years...

Just because that once $50,000 - $70,000 car now costs under $25,000, it doesn't mean it'll be as cheap to maintain as a $25,000 car. Same goes for down the scale... just because a used Accord / Impala / whatever now costs less than a Fit, doesn't mean they'll cost less to fix (assuming, like most people, you just say **** it and ignore the warranty and warranty service after the first few thousand miles on your car and avoid the anally painful prices of dealership service).

 

[a6m5]

I almost always go new, but $10-12K? Like Sage kind of mentioned, new cars in that price range are bit cheap(I'm not talking about the price).

 

[V1P3R]

In this day and age I'd probably go used just because it's cheaper period (Good luck getting that loan). Out of the group of cars you posted I'd go FIT no contest.

 

[Roo]

Used, always. Buying new, on that price range, limits you mostly to small - medium hatchbacks. Buying used with £6k can get you almost anything.

 

[Muzaffar]

Used is better. I don't really liked new cars that much as a first car because of all the trouble you will have when driving a new car. Also, I think if you have the money, then it should be okay to buy any new car you want. For $12,000, I could buy a cheap used/junk car and modify them as I like. 👍

 

[TheCracker]

For me used is better. I'm a car enthusiast and for $12k i could buy something interesting fully aware of all the pit-falls that might arise. However, i can totally see why someone in the market for a small economical means of transport would want to spend that £12k on a new car with the added piece of mind that comes with a warranty.

 

[Joey D]

I'd always buy new, mainly for the reason the first post listed.

 

[Duke]

For me used is better. I'm a car enthusiast and for $12k i could buy something interesting fully aware of all the pit-falls that might arise. However, i can totally see why someone in the market for a small economical means of transport would want to spend that [$]12k on a new car with the added piece of mind that comes with a warranty.

I agree with this statement.

I can do most of my own wrenching, short of catastrophic problems, so I'd definitely rather buy something ~3-5 years old in that price range. But I can understand buying something new and economical for someone not in that position.

 

[homeforsummer]

My personal participation in this thread is difficult because for that sort of price in the UK, there are literally only a handful of new cars available, but a massive selection of brilliant used cars which would be impossible to ignore and vastly superior to any £5-6k brand new car you could get.

In that price range, I'd buy used, in either the UK or the States. The budget would have to be about $30k before I started looking at new cars.

My original point in the '09 Ka thread was that it's not a bad thing per se being able to get a brand new car for the price of a used one - for $10k the Ka would be an amazing bargain, and would seriously make many people consider buying new instead of used.

 

[ROAD_DOGG33J]

Wouldn't the Fit fall out of the price range?

 

[Joey D]

Wouldn't the Fit fall out of the price range?

Yes as it starts at $14,500.

 

[Pupik]

There's obviously a big difference in a $10,000 used car that's 2-5 years old and one that's 5-15 years old: Once you surpass the 5 year mark, just about anything can break on the car, and you need to have the dough to pay for parts. A luxury car's parts are usually going to cost a lot more than a less-expensive brand; it also depends on what you can live with or without: I'd get owners of 200,000+ mile Lexuses that owned the car since new, and they'd want it to run and look just like new, no matter what. In some cases, I would have to gently tell them that the crack in the door panel is not as important as the oil leak...never mind the 7 days to get the part in stock.

Also, luxury cars tend to have more elaborate contraptions, when you're first to the market with a new feature (like automatic A/C sensors or anything computer-controlled that doesn't really need to be computer-controlled), you're the beta tester of sorts, and the replacement costs can be dear.

The big equalizer to many buyers right now is the fuel economy factor; a new, small car helps out in a big way in that department. On the other hand, the used SUV market is starting to tank, the bigger they are, the cheaper they are getting on the second-hand market.

I personally miss the little cars I used to drive, I liked chucking around a car through the corners and fitting into every parking spot with ease. I'll probably get a new little car, as they don't handle all that bad compared to most cars from a decade ago. I'd probably increase that to $15K, just to cover an option or two and other "realistic" costs. I priced most of these cars recently, and nothing is $12K after taxes.

The peace of mind goes a long way in a new car purchase, even through you're likely to get screwed on the depreciation of the car. I was highly disappointed that my Neon was worth only $2000 after 5 years, based on its mileage (which is why I kept it until it was destroyed). My wife's Saturn SL was worth more than double that when she traded it in around the same time, mileage, and condition. Similarly, a Civic or Corolla from that time was also worth more. That's the used-car market for you.

 

[Bones Brigade]

Used. I'll let someone else pay for it's massive depreciation.

 

[1X83Z]

I did this a year and a half ago. Went used. Some of my friends went new with the same money. When I ride in their Hyundais I laugh... my running costs have been practically zero in 40,000 miles and 17 months.

 

[Tornado]

$10,000-$12,000 can buy you an awfully nice Lincoln LS. Or some weirdo Passat like above.
I can see the point of buying a brand new car if they need something right now that is economical, but I would never do it.

 

[TheCracker]

$10,000-$12,000 can buy you an awfully nice Lincoln LS.

*fixed

 

[ND4SPD]

I'd go used. Hell 12 grand can get me a nice S2000!

 

[Tornado]

*fixed

Pfft. Lincoln LS' are awesome. Though honestly, with 12 grand I would buy a Corvette.

 

[Moglet]

New, I didn't even have to think about it with the 500. 3 year warranty, 5 year paint warranty, 12 year perforation warranty, free Homestart, better security (compared to most older hatchbacks, not to larger cars), better safety features, lower running costs (No MOT for 3 years, cheaper fuel, cheaper tax, cheaper insurance as it's safer), and the security of knowing that the car has no bad history.

I know my car hasn't been ragged or treated badly, and I can look after it from scratch how I want to. Depreciation will be nothing compared to the amount of money I'd have had to spend on MOTs and parts on most used cars.

Plus, you get a brand new car.

 

[TheCracker]

Depreciation will be nothing compared to the amount of money I'd have had to spend on MOTs

All £150 worth!

 

[Wolfe]

I'm currently rolling around in a nearly 24-year-old car that originally cost me $1750 and has required less than that amount in repairs over the last 4 years. It's more than practical enough to meet my needs, does over 30mpg, is RWD and fun to drive, always starts in the morning, hardly breaks anything, takes any sort of fuel I feed it, doesn't need to be taken to a dealership for repairs, and is relatively easy to work on.

Yeah, I think I'll go with "used."

Educated decision on a used car >>>>>>>>> Brand new car. For $12,000 you could buy an awesome old sportscar (if you do your homework, one that doesn't need expensive repairs), or spend enough time driving one <$2000 daily driver after another that the person who bought the $12,000 car will likely have bought something else (as people are wont to do every few years) before you run out of cash.

The only reason to buy new is when you have an excess amount of money and want a car exactly the way you like it, and to be the only one who's had his/her hands on it. Or if you live in a country that isn't as accepting of used cars as this one.

 

[Moglet]

All £150 worth!

That's if the car passes first time. My friend has a 4 year old Corsa that has already had an oil leak and a problem with the ABS and it ended up costing him a stupid amount. When he bought the car it drove perfectly and had no previous problems.

I've had 2 used cars before my 500 and loved them to bits, but the amount of money I had to spend on them was ridiculous. With the 500 I know my only outgoings for the next 3 years will be general (low) running costs.

 

[YSSMAN]

I can see the point of buying a brand new car if they need something right now that is economical, but I would never do it.

Because we know what to look for in a used car, its easy to make the used car choice. I got lucky finding the Celica with only 67K on the clock, and I would have been happy with those other Civics or maybe even an old Jetta (again). The thing is though, the main reason why I was looking to buy new was just because of the warranty. No, the Aveo5 or Yaris 3D aren't the best cars, but at least I know that I wouldn't have to worry about anything other than tires, oil and fuel for five years.

I go back and forth, because when I was shopping, there were a lot of really awesome choices for $10K or more. But when I think about having to fix some of them (particularly the Passat W8s that I lust after so much), I head right back to the new car aisle.

Although, when the Celica is paid off, I think I'll have one of these:

 

[Eric.]

I feel obligated to post here since I just got the Civic.

My choice of going new ultimately came down to the fact that there just aren't many Civic Si's (or its competitors) out here in the cornfields, let alone any for sale. My Grand Am was used with 98k on the clock when we got it. We traded it with 111k (at KBB private party value). Now that I actually have to leave town almost daily for school I'm going to be putting a lot of miles on the Civic, so I may as well buy new and enjoy the benefits of being the first person with the car.

Edit: So in response to the original topic, for that price range I'd definitely go used. There are a lot of options I'd be happy with in that category, and you have such varied choices of late-model LS1 powered Camaros/Trans Ams or some 3-5 year old Civics and the like. However, if you look at what $12k gets you new...I'd have rather stuck with my Grand Am I think. $14k-18k is probably the better range to consider for new vs. used because you can slip some VWs, the Fit, Civic, and many American cars into the new category.

 

[1X83Z]

Educated decision on a used car >>>>>>>>> Brand new car.

Good point. And lots of people can't make educated decisions or would rather just have peace of mind. For the record, I'm a car guy so I went used. I can definitely understand why the decision to buy new might be right for SOME people.

 

[Philly]

For $12K, I'd go used. I can't say I've driven any of those choices or really spent any time studying them. But I just don't think I would be satisfied with a rental car quality hatch that is as cheap as they come, when I could have some much nicer used cars.

As for a warranty, if you know what you're looking for, I'm sure you could find something that really isn't going to cost you that much in repairs to own. And you'll also get the added benefits of having luxuries of any kind and a generally more appealing car.

What's the deciding factor for me as to why I think I'd go used up to some very high budgets?

Depreciation, anyone?

We got the GTI for (a guess) $6,000 to $7,000 off what it cost new. That's about 20% off what the car (nearly fully loaded) probably cost brand new. This can be applied to any new vs. used argument, I think. You can buy a new car and be all happy with the warranty and new car smell, but I don't think that's worth the couple thousand more you will lose off the new car in the first year, and the money you will lose each year after. Warrant? The GTI was about a year old when we got it. I would bet money that in the first however many miles/years of ownership, the big savings up front will end up putting us ahead, even being a Volkswagen.

I'd also say that going about a year or two years used will be your best bet. You'll get around the initial depreciation, and you'll still have plenty of warranty left in the car too.