Is it simply better to buy NEW?

[Crazy Dazz]

Old Mates and grandpas will always tell you "never buy a new car, it loses half its value as soon as you drive it off the lot", and various other pearls of wisdom.

Yet so often, I find myself buying new, because in the end it seems to be not only easier, but better value as well.

As mentioned in a couple of other threads, I have been looking at cars for my daughter. So naturally we have looked far and wide at the 2nd hand cars on offer. Basically a choice between scumtree nutters, and used-car salesmen who mostly gave me the *****.

Ultimately, what we have settled on is a brand new, 2016 Lancer.
12 months rego, tank of fuel, tinting, floor mats, for under $19k drive away.
So many times when looking 2nd hand, its the same story. Year old, very low km "ex corporates" they want MORE than new price. And those a few years old, with 30~40kkms, are only a few $k off new.

With a new car, I know its "perfect". No chance its been repaired, don't have to check every square inch for damage, no scratches, no hidden cats hair. All things that can be covered by a detailed inspection, but just so much easier.
Plus I have found the majority of new car sales people, so much easier to deal with. Don't really understand why, but they are. They know what their product is, know what their margin is, and they know every other dealer has the same product. They give you a price, and when somebody else beats their price they say "sorry, can't beat that" end of story.

[SSVPom]

You do generally also benefit from low interest finance, 5 yr warranty, breakdown cover plus a capped price servicing scheme when buying new 'normal' cars these days.. Hard to look past them when comparing to something two years old for only a few $k's less.

[R12RT]

"Never buy a new car, it loses half its value as soon as you drive it off the lot"

This is only relevant if you are going to sell it as soon as drive it off the lot. Who does that?

[Yellow_Festiva]

Yep, bought a few 'near new / demo' cars and they were not looked after by previous owners.

Simple fact is, if you are buying a new car to offload it soon then why would you take any care?

I now buy only new cars. I make enough to give myself that luxury and I generally hold on to cars for the long term.

The last 2 cars I bought new (both Mitsubishis) I went in with crazy low ball offers of around 75% of sticker RRP and got them. In one case the one year old demo was literally around $1k cheaper. Why would you bother??

Having said that. If the car is just a junker run about, or something rare or old then by all means I'll look at used.

[Express]

Don't ever sell them, when you buy a new one just park the old one in the shed down the back and you'll never experience the hit.

[Sabantien]

It's a risk. You can pick up second hand cars that are in great condition and never run into problems. Problem is you just don't know.

[DFB FGXR6]

I helped a co-worker update a car a couple of years ago.

Budget gave the choice of a brand new i30 Active X or a used 60,000km Mazda 3 Maxx Sport.

This person in not a car person in any way and is a long term owner.

She chose the Mazda because "I don't like the idea of a new car losing so much value as soon as you drive it off the lot".

That makes no sense for someone who will keep the car for 5-10years and would have benefited form a 5 year warranty all the perks of a new car brings.

Yes, the Mazda is a better car, but that's not the point for someone is in no way into cars.

[Sprintey]

Originally Posted by Express

Don't ever sell them, when you buy a new one just park the old one in the shed down the back and you'll never experience the hit.

There was a news article some years ago of an ex-GMH salesman who had done exactly this with every single model Holden released in the "golden years"... did the lot reach 1 million value? It was something ridiculously big anyway

[simon varley]

don't buy. lease.

[Trump]

If you're worried about the financial hit, don't buy brand new. If you want the peace of mind a decent warranty affords from buying new, go for it.

But unless the finance deal is unbelievably too good to pass up, do not buy a new car on credit. It is sheer insanity.

[Aulpgute]

I decided to treat myself last December to the first brand new car I have ever bought in my 30 years on the road. I subscribed to the above theories about keeping them for the long haul as I have the means at this point in my life. Unfortunately I chose a fully optioned Ranger PX2 XLT with the worst automatic transmission I have ever experienced in my life that I am continually told by the dealer is 'normal for those'....

[F6RCD]

Originally Posted by Loud_Noises

But unless the finance deal is unbelievably too good to pass up, do not buy a new car on credit. It is sheer insanity.

Why is it sheer insanity?

[NX74205]

Originally Posted by Loud_Noises

But unless the finance deal is unbelievably too good to pass up, do not buy a new car on credit. It is sheer insanity.

Maybe, but since when has a car buying decision been ruled by logic?

[STINKY NINJA]

Don't buy from southside mitsi...
Best most reliable car we ever had was a new 2010 lancer active 5 speed,not even 1 single issue in 2 years,unfortunately we sold it to buy a brand new lemon 2012 fg turbo ute...
Cant go wrong with a lancer.
I wish we had never sold that 2010 lancer!

[STINKY NINJA]

Originally Posted by Aulpgute

I decided to treat myself last December to the first brand new car I have ever bought in my 30 years on the road. I subscribed to the above theories about keeping them for the long haul as I have the means at this point in my life. Unfortunately I chose a fully optioned Ranger PX2 XLT with the worst automatic transmission I have ever experienced in my life that I am continually told by the dealer is 'normal for those'....

I know that heartbreaking feeling mate...

[Doreturnonfoot]

My thoughts are used cars with less than 100k are the go. The reliability these days of later models means you can keep them till well past the 100k mark. If you have plenty of coin it is simple to buy new. And it really is too easy to borrow $50k plus for a new car - but it is hard to borrow money for a car worth less than 10k

[Dr Terry]

Years ago, it made much more sense for the average punter to purchase 2nd, like ex-government or similar. Ex-government cars these days are often not a good buy.

These days, with the price of cars so much cheaper (in real terms) than they have ever been & interest rates being equally lower than they've ever been, it makes more sense to buy new.

It is especially the case when looking at cheap 4-cyl cars. $20,000 today buys a lot of car new. Compare a $20K new car of today to what $20K bought back in the early 90s, when your wage was much less.

I remember in the 70s, good quality popular cars around 2-3 years of age being well under half their new price, quite often under a third. They were a very good buy.

The other things to consider is how much more complicated (read expensive to service & repair) cars are today compared to decades ago. They are of course much better equipped & safer. Also take into account the much longer new car warranties of today, compared to when all manufacturers only gave 12 months.

It is a totally different matter on the upper price categories. For example a V8 Calais wagon ($55-60K new) is a much better buy when it's around 2 years old, at say $25K.

Most of this assumes that you are not capable or servicing the car yourself. If you are, it is much cheaper to look around for a good 2-3 year old car at a bargain price, look after it for say another 2-3 years & sell it off at around the same price you purchased it for. Not much depreciation to interest rates to worry about there.

Dr Terry

[roddy1960]

G'day...Buying used for many of us is the only way. I have no chance of affording brand new unless I bought a cheaper Asian built four potter or similar. Not my thing I'm afraid... My only brand new chariot was my second car..I owned a Morris 1100 for two years after I got my licence and I saved every penny I could and bought a brand new 1980 Mk 2 Ford Escort L. 1.6 litres .no radio , no heated rear window from G.M Jackson Ford , and it was a two door..gold colour...Cost me $5246..How do I know that ?..I kept the owners manual and it was written inside the cover. I still have that book .About a year later I was involved in an accident and it was written off..My insurance wouldn't allow for another new car but I got a GL Escort , also 1980 , 4 door, with a radio and a heated rear window for my insurance payout and another $800 or so...Had about 6000 kms on it if memory serves , so near new...It was a beaut little car with the 1.6 litre motor...no trouble at all...had it for several years..Maybe my best chance for 'showroom new' will come when I retire and the super allows me to do it..Who knows ? Cheers Rod.

[Itsme]

Depends on your income capacity, if money is no problem then why not buy new if you can afford it, otherwise purchase used cars, personal choice & how much cash you want to spend.

[Trump]

Originally Posted by F6RCD

Why is it sheer insanity?

Paying for a (rapidly) depreciating item like a car with debt is nuts. Like I said, unless the interest rate is super dooper and you can make twice the monthly repayment comfortably, it doesn't make any kind of sense or logic. However, in the current economic and tax climate, people are sold on the idea that leasing helps them at tax time and taking on debt is not only encouraged, it is rewarded.

If the purchase was of an asset that would make you money and would appreciate in value, financing makes a lot of sense.

[Ben73]

Originally Posted by Aulpgute

Ranger PX2 XLT with the worst automatic transmission I have ever experienced in my life that I am continually told by the dealer is 'normal for those'....

What's wrong with it?
My only issue is if you accelerate hard with a cold engine the gear change isn't 100% smooth. Since that is not good driving behavior I avoid doing that anyway.


On topic I like buying new cars. If I am looking at a car that is only a couple of years old, I'd rather just pay that little extra and get new.
Plus there was some great finance rates on new cars these days.

If you buy a near new cars with an average finance rate, you will probably end up paying more over the few year period anyway.

[FPV+fteT3]

Depends on the car, I am after a particular car at the moment the 2012 is the last model with a proper manual box and not cvt, dsg, automagic etc… I have found an immaculate 2012 with low km yes its a bit cheaper than new but I cant buy a new manual turbo they are all shyte boxes.The car will be shipped from Qld to NSW in the next week I am happy. Similarly if you were shelling out the coin for a new Lotus Exige @150k a good used model say 2013 can be had with @10,000km for @110k and it would be as good as new and save 40k.
As far as I am concerned there are no rules it all comes down to the particular car

[danzvtil]

Originally Posted by Loud_Noises

Paying for a (rapidly) depreciating item like a car with debt is nuts. Like I said, unless the interest rate is super dooper and you can make twice the monthly repayment comfortably, it doesn't make any kind of sense or logic. However, in the current economic and tax climate, people are sold on the idea that leasing helps them at tax time and taking on debt is not only encouraged, it is rewarded.

If the purchase was of an asset that would make you money and would appreciate in value, financing makes a lot of sense.

Yeah, but I need a car today, why wait for 5 years to save , when it can be financed and pay as you go?
And leasing......that's only for a business who can claim the car against their tax, as a private buyer using post tax income, get a loan, at least you own it at the end of the loan term.

[Trump]

Originally Posted by danzvtil

Yeah, but I need a car today, why wait for 5 years to save , when it can be financed and pay as you go?
And leasing......that's only for a business who can claim the car against their tax, as a private buyer using post tax income, get a loan, at least you own it at the end of the loan term.

Buy what you can afford now without borrowing?

[SprintFg]

Depends on your use of the car, if it's a work hack buy used, if family duties or personal use definitely brand new.

I couldn't imagine buying a car with 100,000km and/or owned by multiple owners. I would imagine it would feel loose. From my car experiences, I think every 20,000km or so a car feels a generation older.

New or used? depends on your use I say.

[STINKY NINJA]

I think in the particular case of cj lancers it is better to buy new,second hand prices are very high in wa,they are such a great little to intermediate sized car(manual of course,those autos suck)

[fps_grandma]

Placing logic, depreciation and so forth aside:

When should you not consider buying a new car?

The new Mazda CX-5 will make your old one look like crap
Then the next new Mazda CX-5 will make your old one look like crap
Then the next new Mazda CX-5 will make your old one look like crap

The new BMW 3er will make your old one look like crap
Then the next BMW 3er will make your old one look like crap
Then the next BMW 3er will make your old one look like crap

Rinse and repeat.

What you could have bought brand new instead?
Cars in some form you will never get again

• The C-Klasse won't come with a naturally aspirated V8 ever again. You should have got the last new MY14 C63 AMG with the 6.2L V8.
• The SLC-Klasse won't come with a naturally aspirated V8 ever again. You should have got the last new MY14 SLK55 AMG with the 5.5L V8.
• There will be no more Lancer Evos after the Evo X. You should have got one brand new.
• You won't ever be able to buy a locally produced car again. Get them while you can.

FPV GT-F 351 (sold out)
Ford Falcon XR6/XR8 Sprint (sold out and I managed to check out a Smoke XR6 Sprint in person thank goodness)
Ford FGX Falcon - last orders to end soon?
Holden VFII Commodore
Black, Track and SV HSV special editions
Toyota Camry RZ Special bad dad or grandad Edition
and a Toyota Aurion for the really bad dad or grandad

Meanwhile warranty doesn't cover wear and tear, intentional abuse, significant modifications and becomes null and void if not serviced by a qualified mechanic according to the service schedule.

[arronm]

Originally Posted by Express

Don't ever sell them, when you buy a new one just park the old one in the shed down the back and you'll never experience the hit.

Yep, thats what I do. Collect them and let family members drive them.

[Qwerty321]

Originally Posted by Crazy Dazz

Ultimately, what we have settled on is a brand new, 2016 Lancer.
12 months rego, tank of fuel, tinting, floor mats, for under $19k drive away...

Meanwhile in NZ the cheapest, completely base level Lancer costs $31k... and we earn less than you fellas

But in all seriousness though, at those prices I don't understand why anyone would bother buying second hand. Don't Mitsis have the 10 year diamond warranty thing too. So I mean 19k for a 2016 Lancer with 10 year warranty, and low interest finance I'm assuming. That's such a good price it's almost thievery!

[Brazen]

Probably only buy new from now on. I used to buy second hand but it often ends up being a false economy - depending on car! I think used car prices are way too high in Australia - I can understand why though as nearly everyone needs a car which keeps demand high for late model used.