Used Car vs New Car

[svxthc]

Ive gotta present a speech tomorrow to my classmates on buying a Used Car versus buying a brand new car. Obviously it will be in favor of buying a used car, simply because they are made so much more dependable now and don't lose a quarter of their value when you drive them away. I figured this would be the right place to ask for some oppinions and facts on why buying a used car is better than buying one new. I'd appreciate any input for this speech is due tomorrow and I haven't started preparing it. Thanks guys.

[immortal_suby]

So - you want us to do your homework for you?

Here's one - used cars are better than new cars because they don't make the svx anymore.

[svxthc]

haha, well I'm doing some research talking to my dad who's had much more experience than I have. You don't have to butt in if you don't want to.

[Landshark]

i'm someone who said they would never buy a new car, and is buying his second new car in three years.....

as far as a pickup truck or family sedan, sure, buy a nice used one. performance cars on the other hand, i don't trust previous owners. how badly did they flog the crap out of it? i don't want to be that paranoid. i'm kind of a perfectionist when it comes to my cars, so knowing the maintenance, care, and cleaning was done by me correctly is a good feeling.

[ensteele]

I would not buy just any used car, but some research before the purchase can make a big difference. A good should have records of work and maintenance. That will tell you a lot about the car or truck.

[Shadow248]

Originally Posted by Landshark

i'm someone who said they would never buy a new car, and is buying his second new car in three years.....

as far as a pickup truck or family sedan, sure, buy a nice used one. performance cars on the other hand, i don't trust previous owners. how badly did they flog the crap out of it? i don't want to be that paranoid. i'm kind of a perfectionist when it comes to my cars, so knowing the maintenance, care, and cleaning was done by me correctly is a good feeling.

You would not believe (or maybe you would) how many TAs I looked at before I bought mine. It is just amazing to me how some people can go out and spend almost $35k on a car like a TA and then not care what happens to it. I went to look at one in NJ (first mistake) that had 28,500 miles...I figured "it can't be that bad". This car looked like it had 100,000 daily driven NYC miles on it. The clutch was absolutely shot, there were entire chunks missing from the door edges, the leather was ripped in several places...the list goes on and on. It made me sick. I found the one I have now on Cars.com, and after my experiences with all the other cars I looked at, I didn't hold out much hope. It was listed as having 18,500 miles. All the pics made the car look like it literally had never been used. They were completely accurate. They could have put this car in a showroom and passed it off as new. The engine was as spotless as any new car i've seen. After a year and a half of ownership, it's never given me any reason to believe it was abused or neglected in any way.

I got very lucky. It's definetly a risk buying a used car...but it's a risk with a great reward. There were a couple 2002 leftovers available when I got my car in 2003...for any of those I would have paid close to $30,000 (after "incentives"). Instead I paid $14,000 for essentially the exact same thing. I would say the risk and extra work involved, at least in this case, was well worth the 50% price savings. Then I took the extra money I would have used on a new one and paid off half the car, bought lots of go-fast goodies, and still had money to use to go out and actually enjoy the car.

So I agree with Alan to a point, however in my mind, the risk you take is well worth the money you save. You just really have to do your homework so you know what you are looking at.

[Landshark]

a pre-purchase inspection, as well as maintenace records and receipts are a must (to me anyway). i also look at the engine bay - is it clean, or does it look like the hood was never opened?

if i don't see an owners manual in the glove box, i walk away. how can you not have the owner's manual for your car?!?!?!?!

[Landshark]

Originally Posted by Shadow248

There were a couple 2002 leftovers available when I got my car in 2003...for any of those I would have paid close to $30,000 (after "incentives"). Instead I paid $14,000 for essentially the exact same thing.

that's because GM resale value plummets like a cement block thrown off a building when you drive one off the lot.

[Phil Hill]

Want a slightly novel direction to start your piece with, how about an "energy balance" argument ??

In percentage terms the amount of energy and resources consumed during the manufacture of a vehicle accounts for aproximately 90% of the total energy and resources consumed over a 10 year life-cycle. This just goes to further show how much clap-trap the enviro-lobby talks about vehicle exhaust emmission being major contributors to global warming/Greenhouse gases/pollution !! What about the GWatts used for processing raw materials (mining, processing, refining), actually making the vehicle (stamping/forging/pressing/welding/moulding etc), testing and transporting it to location (from Japan, Europe etc) before you actually get it !!

So if you are only keeping a vehicle for 3-4 years you are contributing to the deepening energy deficite the industrialised world is inflicting on the earth, you are contributing to the global rape and plunder of the global resources, often exploiting underdeveloped nations/sites of environmental significance in the process etc.

Other arguments against older vehicles are :

They are less reliable. Not so, with good maintenance and by taking care of the vehicle it can be every bit as reliable as a new vehicle, in fact possibly more reliable. After all most 15-10 year old vehicles don't have a dozen computers to do everything, for the most part can be maintained for pennies, and as most older cars are "enthusiast vehicles" they are likely to get more attention than their modern counterparts. How many new vehicles on contract hire or lease fail their annual inspection due to neglect ??

They are more polluting. Even ignoring the energy balance thing, again not necessarily so. When well maintained and tuned correctly there is no reason why the engine should be any less efficient, we're back to the "enthusiast" thing again, looking after the vehicle. Even if there is no cat in the exhaust these are only really effective on journeys of longer than 10 miles when they can get up to the correct operating temperature. Don't even get me started on the energy balance of Cat convertors !! Shocking !!

They are less safe. Once again, another myth. Sure it doesn't have pre-tensioning safety belts and 9 airbags in every corner of the car....... but in real terms an understanding vehicle dynamics and driver education score much higher on the safety scale than any gizmo on the car. All the additional "safety features" do is give the driver a greater perception of safety, which then causes them to take more and greater risks.

Please note, these are just argumentative statements, not necessarily the whole-heartedly held beliefs of the author !! Just trying to get the thought process going !!

But at least you know now that you are doing the world a favour by keeping that old gallopy of an SVX going from an environmental stand point !! As if you needed justification

[Shadow248]

Originally Posted by Landshark

that's because GM resale value plummets like a cement block thrown off a building when you drive one off the lot.

Your statement is slightly incorrect. Remove the "GM" and it's absolutely true:

"...resale value plummets like a cement block thrown off a building when you drive one off the lot."

Much better.

And this is very important info to use in a speech such as this.

Doesn't matter what car you buy, it's going to lose a ton of value as soon as it's titled. A TON. In fact, the inherently higher import prices simply mean that those cars lose MORE in their initial depreciation. Alan and I went through this with Porsche vs. Corvette resale and I already proved that if anything, Porsches lose more value. I can do this with any car brand really...except maybe Hyundai and Kia and such...they are newer companies, so they are in a sense the exception to the rule. Leftover models are similiar. But it's more based on demand than anything. The 2002 f-body leftovers were selling at about $3k-$4k below sticker. Some at sticker price (i.e. the collector's WS6 and 35th Anniversary SS). That's because they had no replacement. The 2004 GTO leftovers sold for up to $10k below sticker because there was a BETTER replacement already on the way. I know for a fact that Infiniti I30 leftovers were selling for $15k+ below sticker when my mom bought hers. And I also know that leftover Hondas will sell for about $5k below sticker (because I sold them).

These are just a few examples, but it's a good illustration of how you lose money on buying a new car. ANY new car...not just GM as Alan would LOVE for you to think.

[Landshark]

Originally Posted by Shadow248

Alan and I went through this with Porsche vs. Corvette resale and I already proved that if anything, Porsches lose more value.

you did? oh yeah, you said ZR-1's held their value, and i found a local ad for one with low miles for pretty cheap, ad then you made a bunch of excuses.

These are just a few examples, but it's a good illustration of how you lose money on buying a new car. ANY new car...not just GM as Alan would LOVE for you to think.

that is true, but American cars plummet much quicker.

[dcarrb]

A wise (and wealthy) person once told me:

Never buy on credit anything that depreciates in value.

That should be the factor considered first and foremost when it comes time to buy a car... new or used.

dcb

[NapaBavarian]

Used is usually better, but I'll probably buy my next one new so I can get the 6 speed automatic and a sunroof in the truck, cant do that in 05, just a 5 speed

[Shadow248]

Originally Posted by Landshark

you did? oh yeah, you said ZR-1's held their value, and i found a local ad for one with low miles for pretty cheap, ad then you made a bunch of excuses.

I'm dissapointed how quickly you forget.

I used the example of an 1988 L98 Coupe (NOT A ZR1) vs. a 1988 911 of comparable condition and mileage. I also used a 1997 vs. a 1997 911. Same result. The Porsche actually depreciated a tad faster. Of course, that's probably because most of it's original cost was "Image Premium".

Originally Posted by Landshark

that is true, but American cars plummet much quicker.

Proof?

This is just plain not true. At least not as a rule.

[Landshark]

Originally Posted by Shadow248

I'm dissapointed how quickly you forget.

oh, the ironing.

I used the example of an 1988 L98 Coupe (NOT A ZR1) vs. a 1988 911 of comparable condition and mileage. I also used a 1997 vs. a 1997 911. Same result. The Porsche actually depreciated a tad faster. Of course, that's probably because most of it's original cost was "Image Premium".

you can't be getting Alzheimer's already! your confused thinking is confusing you, too. here is your (NOT A ZR-1) quote:

Originally Posted by Shadow248

There are two Vettes for sale in my local paper...an '85 with 40k for $15k and a '92 with 50k for $26k. As with any car, there are real cheapos and there are real rare ones that fetch alot. You'd probably have to pay someone to take an '84 Vette, but a 91 ZR-1 would fetch nearly 100g's. The C5 targas (97-99)are still pulling low-mid $30's, which is great value for a car that only sold for $42-$45 to begin with. On the flipside, i've seen plenty of Porsches under 10g's around here.

$100,000 for a ZR-1??? maybe on planet GM. here's one with a low 14k miles for $33.5k (highest price within 200 miles):
http://www.autotrader.com/fyc/vdp.js...p=y&cardist=58

here's one with 13k miles for $28.9k:
http://www.autotrader.com/fyc/vdp.js...=y&cardist=200

here's one with 46k for $16.9k:
http://www.autotrader.com/fyc/vdp.js...=y&cardist=200

i guess that's plenty to show they are NOWHERE CLOSE TO $100k.

as far as 911 Carrera's, the *91's* (with some mileage on them) are pulling low-mid $30's, *not* 97-99's.