New car Vs Old car

[302 XC]

With new cars being cheapest they have been for awhile, the low interest deals, the warranties,wether good or bad, the economy
Are people even 2nd guessing looking at used cars ???

New 32 grand TD 4x4 dual cab for around $125 PW over 7 years,fixed price services at 15,000 at $400 a pop

Is it even financially viable to buy an older, perhaps more thirstier car at a higher interest for the daily grind, running kids to school,work and back, maybe some weekend fun,trips ???

[GQ_Smooth]

Sounds like the US in 2006-2007.

[Yellow_Festiva]

If new cars are cheap it just means used cars will be cheaper again...

With some models spanning 3-4 years, a 2nd hand car that's a few years old won't necessarily be any thirstier than a new car, or less safe, or less modern in terms of looks. It will be only 60-70% of the cost of the new car, and for some that is enough of a saving to forgo buying the new car.

[302 XC]

Originally Posted by Yellow_Festiva

With some models spanning 3-4 years, a 2nd hand car that's a few years old won't necessarily be any thirstier than a new car, or less safe, or less modern in terms of looks. It will be only 60-70% of the cost of the new car, and for some that is enough of a saving to forgo buying the new car.

I know what you mean regarding something a handful years old is possibly worth , but it mite be cheaper on price but dearer on interest,which isn't really that much cheaper every month come payment time
Ive been checking out 4x4 dual cabs ,and something a few years old, with around 100 K on them ,although mite have a few option boxes ticked aren't 60-70 % less than new, youd be lucky if they are 25 % options depending
Ive seen 2,3 year old navaras for only a few grand less than new

[big_landau]

you can buy a sweet car for 5k now,seen a local 05 xr6 for 4k ono today.

[aussie muscle]

someone once told me buying a second hand car is like dating a divorcee. lol.

you can buy a VW polo for 16,000 why would you buy a used car in that range?

[Mechan1k]

I bought a 2yo FG XT ... at half the price of a new one. And it still looked like new.

[GREGL]

Yeah, need to be serviced a lot more frequently, a lot more than 12 months/15000ks otherwise your definitely blowing your money. Divorcees I mean. lol.

[mik]

There are plenty of very good cheap second hand cars out there, being light on funds, I would buy a second handy rather than go into hock, easy decision.

[Yellow_Festiva]

Originally Posted by 302 XC

I know what you mean regarding something a handful years old is possibly worth , but it mite be cheaper on price but dearer on interest,which isn't really that much cheaper every month come payment time
Ive been checking out 4x4 dual cabs ,and something a few years old, with around 100 K on them ,although mite have a few option boxes ticked aren't 60-70 % less than new, youd be lucky if they are 25 % options depending
Ive seen 2,3 year old navaras for only a few grand less than new

I will only buy a car with cash. Money saved is money in my pocket. Repayments, intetest etc are never a consideration for me when I buy a car.

[Crazy Dazz]

I don’t understand the question?
The low interest deals are only around because firstly interest rates ARE low, but secondly they are having trouble moving new cars.

Besides, it’s a very efficient market, used car values follow the price of new cars.
There are a few exceptions, where used cars are either under or overvalued:
In the past cars that saw large fleets being dumped after 1~2 years (eg Falcons) were often a comparative bargain at that point. That obviously won’t be the case for much longer.
Some models when discontinued start to hold their value well because they are simply irreplaceable, whereas others become “orphans” and depreciate rapidly.

For me, assuming a used car is appropriately valued, the TWO big questions in buying used are whether you are prepared to tolerate the comparative lack of reliability & amenity, and whether you can undertake repairs affordably. If you want/need a car with flawless reliability and you don’t know the first thing about cars and so rely on a mechanic for everything, then you are better off with a (near) new car under manufacturer’s warranty. We have AUs as runabouts because they do the job, are easy to fix, knowledge and parts are plentiful, and when one breaks there is always a spare car around.

[buggerlugs]

I would NEVER take finance on a car over 7 years. NEVER !!

[uniacidz]

Originally Posted by aussie muscle

someone once told me buying a second hand car is like dating a divorcee. lol.

you can buy a VW polo for 16,000 why would you buy a used car in that range?

Yeh you can buy a polo, but may stop suddenly

[vanman_75]

Just sold my prado 3 year old and bought a cruiser Ute 91 model with 700000 klms on her , lol maybe I'm the wrong person to ask , I buy what I need for the present ..age has zero effect on any of my purchases, also will never finance for cars again ...that is the biggest learning curve you can make in life , never finance a depreciating asset ..I repeat never finance a depreciating asset ...

[302 XC]

Originally Posted by Crazy Dazz

I don’t understand the question?


For me, assuming a used car is appropriately valued, the TWO big questions in buying used are whether you are prepared to tolerate the comparative lack of reliability & amenity, and whether you can undertake repairs affordably. If you want/need a car with flawless reliability and you don’t know the first thing about cars and so rely on a mechanic for everything, then you are better off with a (near) new car under manufacturer’s warranty.

You've pretty much answered a question you didn't understand ......

[302 XC]

Originally Posted by vanman_75

never finance a depreciating asset ..I repeat never finance a depreciating asset ...

That's a good rule , but sadly a majority of people don't live by that rule

Cars in general wether new ,used, rebuilt,restored are a money pit
Its just wether we pay now for the miles and miles of endless trouble, we rebuild throw hours and hours of unpaid labour at it, spend years doin it , then sell at a massive loss
Its a cost that is across the board, they all cost some way or another

[buggerlugs]

Originally Posted by vanman_75

Just sold my prado 3 year old and bought a cruiser Ute 91 model with 700000 klms on her , lol maybe I'm the wrong person to ask , I buy what I need for the present ..age has zero effect on any of my purchases, also will never finance for cars again ...that is the biggest learning curve you can make in life , never finance a depreciating asset ..I repeat never finance a depreciating asset ...

Unless your in business of course

[Yellow_Festiva]

Originally Posted by 302 XC

I know what you mean regarding something a handful years old is possibly worth , but it mite be cheaper on price but dearer on interest,which isn't really that much cheaper every month come payment time
Ive been checking out 4x4 dual cabs ,and something a few years old, with around 100 K on them ,although mite have a few option boxes ticked aren't 60-70 % less than new, youd be lucky if they are 25 % options depending
Ive seen 2,3 year old navaras for only a few grand less than new

I didn't say 60-70% cheaper, I said 60-70% of the cost of a new car, meaning 30-40% cheaper so your 25% is pretty close to my starting mark, depending on model and options of course.

[vanman_75]

Originally Posted by buggerlugs

Unless your in business of course

Dead right , but that's a different form of finance . ..our lease setup means I basically only pay for the running costs much like business and is a claim of loss and is in affect very good .unfortunately as you well know most people are over their heads in debt .where in reality most should own a much cheaper car ...their lifestyle would be much improved...but they don't teach living within your means at school ...a hard lesson hard learnt .

In this throw away world these cheap cars will see us like other countries where they just scrap em after a time , and greenies will force our nation into green mobiles .. I might be cynical but the motoring new age is upon us ..
On the flip side if you got the coin ..buy what you like ...its a good time to buy with prices down and the second hand market dead ..the recent boom saw staggering sales hence a glut of used cars ..a positive on the bad times in front of us ..

[fanboi]

Originally Posted by Yellow_Festiva

I will only buy a car with cash. Money saved is money in my pocket. Repayments, intetest etc are never a consideration for me when I buy a car.

If i can get a higher rate on my cash then what ill pay on finance for a car ill finance the car and pocket the difference, buying with cash isnt always the most financially sound option.

[deadfish2]

Originally Posted by fanboi

If i can get a higher rate on my cash then what ill pay on finance for a car ill finance the car and pocket the difference, buying with cash isnt always the most financially sound option.

exactly right... same goes for the no repayments no interest credit cards from hardly normal etc... say you bought a house and spend 10k buying new gear for it, spend on card keep the money in your account and earn 6% interest off it..... BUT IT ONLY WORKS IF YOU HAVE THE MONEY TO START WITH!!!! that's what ive been doing of late..

don't forget the no or low interest car finance normally only lasts for 2-3 years then interest may occur, and also may lead to sale prices or retail.... read past the big numbers and check the fine print, dealerships are still out to be looking after themselves

[SSVPom]

I'd rather finance and drive the latest cars now, than have the wife and kids drive around in 10 year old bangers without the latest safety kit.

[Yellow_Festiva]

Originally Posted by fanboi

If i can get a higher rate on my cash then what ill pay on finance for a car ill finance the car and pocket the difference, buying with cash isnt always the most financially sound option.

This is actually a very good point. I guess the fact that I don't 'own' the car would also not sit right with me. But that's a persona choice, not one based on financial reasons.

Is there more movement in price if it was a cash purchase as well I wonder??

All these 0 interest / .9 / 1.9% deals probably have little room for negotiation on the price.. also, aren't there 'account fees / establishment fees' etc that have been added to these transactions as well??

Having said that, If I was to get a good deal on a car, with low cost finance and low fees (that aren't just the lost interest by another name) I would certainly consider that proposition. Especially if it saves me re-drawing on my home loan at 5.XX%

I have a rule that anything over $10 goes on the credit card (as long as it doesn't cost me any more than cash)... Some people, no matter how hard I try cannot understand that if it is just replacing cash you already have it is a better option financially in terms of keeping your money in your account longer and paying 1 lump sum every month.

So, I guess in a way I'm already doing what you suggested - hell, I have even bought cars on my credit card!

[SSVPom]

We spec'd up my wife's Jetta with $7k worth of sports pack, satnav, metallic paint and tinted windows, along with 1.9% finance, drive away pricing, 5 yr warranty and capped price servicing.... And then 'beat them down' nearly $12k without even trying. We walked away with all these extras on the car, for only around its basic original pre driveaway deal list price. I also got $12k trade on my hail damaged trade in, worth no more than $15k in perfect nick.

It doesn't always work like this, and you can very easily get trapped paying over the odds for something, over a term too long with a ballon payment too large to meet at the end !

[jpd80]

I recently convince our company to reconside its decision to stop purchasing Fords in preference for Toyotas and VW.
I hear we now have four Falcon Utes on order....

[2011G6E]

Why would you?
Our G6E was the first brand spanking new car we'd ever bought, and never again. Everyone knows about depreciation, but the first time it slaps you in the face, it's a shock.
Two years old, still immaculate condition, and a near top of the line $50,000+ sedan is worth only $18,000 as a trade in at best.

So we used our brains when looking for a four wheel drive, and bought a, 18 month old top of the line GLX-R Triton dual cab loaded with extras, a canopy, tray liner, bullbar, and towbar, still with the remainder of the five year warranty, for only $36,000...the original owner had paid well over fifty grand for it as it sat with all the options.

Bugger buying new...let someone else take the pain, pick a good one with the balance of new car warranty still on it, and profit.

[302 XC]

Originally Posted by 2011G6E

Why would you?
Our G6E was the first brand spanking new car we'd ever bought, and never again. Everyone knows about depreciation, but the first time it slaps you in the face, it's a shock.
Two years old, still immaculate condition, and a near top of the line $50,000+ sedan is worth only $18,000 as a trade in at best.

So we used our brains when looking for a four wheel drive, and bought a, 18 month old top of the line GLX-R Triton dual cab loaded with extras, a canopy, tray liner, bullbar, and towbar, still with the remainder of the five year warranty, for only $36,000...the original owner had paid well over fifty grand for it as it sat with all the options.

Bugger buying new...let someone else take the pain, pick a good one with the balance of new car warranty still on it, and profit.

Triton GLX R are under 40 grand driveaway,new, base models are under 30 grand new
Add ons, ebay near new nudge bars, hardlids, rollbars,ect can be had for a song
Even near new bullbars aren't overly exxy

So your used , 36 K rig , Vs something perhaps a few grand more new, on less interest ......

[deadfish2]

Originally Posted by 302 XC

Triton GLX R are under 40 grand driveaway,new, base models are under 30 grand new
Add ons, ebay near new nudge bars, hardlids, rollbars,ect can be had for a song
Even near new bullbars aren't overly exxy

So your used , 36 K rig , Vs something perhaps a few grand more new, on less interest ......

ive just been going through all this...... you can get a 2013 plate glx-r for 34k and have a lil bit of change left for some maccas on ya way home....

about 2-3 years ago they were around 50K but with the influx new models they have dropped prices staggeringly.... I feel sorry for the owners that bought them then

for instance XLT ranger are approx. 5k dearer than a sr5 hilux

[2011G6E]

Yes I've seen that. Ours had quite a few options fitted, as well as a proper ARB canopy and tray liner, in a good colour, and auto.

[fanboi]

Originally Posted by Yellow_Festiva

This is actually a very good point. I guess the fact that I don't 'own' the car would also not sit right with me. But that's a persona choice, not one based on financial reasons.

Is there more movement in price if it was a cash purchase as well I wonder??

All these 0 interest / .9 / 1.9% deals probably have little room for negotiation on the price.. also, aren't there 'account fees / establishment fees' etc that have been added to these transactions as well??

Having said that, If I was to get a good deal on a car, with low cost finance and low fees (that aren't just the lost interest by another name) I would certainly consider that proposition. Especially if it saves me re-drawing on my home loan at 5.XX%

I have a rule that anything over $10 goes on the credit card (as long as it doesn't cost me any more than cash)... Some people, no matter how hard I try cannot understand that if it is just replacing cash you already have it is a better option financially in terms of keeping your money in your account longer and paying 1 lump sum every month.

So, I guess in a way I'm already doing what you suggested - hell, I have even bought cars on my credit card!

And if you have a good deal from your bank with points and no annual fee or a small one you can end up way ahead of the game putting all your expenses on the card each month.