Comments on: Why It’s Smarter To Buy Used Cars

By: Frugal Living: Knowing When to Draw the Line | MoneySocket

Frugal Living: Knowing When to Draw the Line | MoneySocket — Mon, 10 Mar 2008 20:07:03 +0000

[...] costs you more in the long run factoring in time, engine wear, and gas. I’m an advocate of buying a used car, but I wouldn’t buy cheap light bulbs for it. They burn out quicker and cost you more in the [...]

By: Danny Tsang

Danny Tsang — Tue, 15 Jan 2008 07:52:44 +0000

Hi Plonkee,

Great point. I’m really against buying 1st year runs of a re-designed model or a brand new model as well. Those always tend to have issues. Yet another benefit of going used! Thanks for the comment

By: Danny Tsang

Danny Tsang — Tue, 15 Jan 2008 07:51:32 +0000

Hi Arron,

Yes I do agree, like what Justin mentioned above, the high demand Japanese cars only really work out when they are at least 4-5 years old. Those are the types of used cars I like to buy anyway as the discount on the later model ones are minimal. The craziest sticker shock I saw was at a Honda dealer where a one year old, 10k mile used civic was pretty much the same price as a new one.

So yes, on slower depreciating cars the discount isn’t as great in the first couple years of ownership. All in all, it’ll have to come down to the individual car and the deal placed in front of you. Thats another thing, on used cars you’ll see more potential for true deals (undervalued vehicles) for whatever reason, but on new ones you’re pretty much paying market value. So I say go used, but find the right car and the right deal

Thanks for commenting

By: Danny Tsang

Danny Tsang — Tue, 15 Jan 2008 07:46:24 +0000

Hey Justin, you’re right I do notice that high demand cars tend to sell for a lot when its just a few years old. I would only touch those if they are 4-5 years old, which of course in Honda and Toyota’s case, is nothing. They’ll run until the wheels fall off. It does depend on the car, but most of the time 4-5 year old cars beat new ones money-wise. Thanks for commenting

By: plonkee

plonkee — Mon, 14 Jan 2008 20:23:27 +0000

I’m a proud non-car owner myself, but I do know that the only car my parents bought that turned out to be rubbish was the new one. Turned out that particular make/model combination was a dud for a couple of years - during the period they bought. The advantage of buying used is that you don’t need to be the one to find that out.

By: Aaron Stroud

Aaron Stroud — Mon, 14 Jan 2008 19:59:43 +0000

Good article Danny. I started to write a comment about how buying used isn’t always the best option, using a Toyota 4Runner as an example. But the numbers didn’t work out how I wanted them to . So let’s just leave it at buying a good used car is almost always the best option in terms of money. However, this benefit is mitigated somewhat when considering vehicles that depreciate more slowly.

By: Justin

Justin — Mon, 14 Jan 2008 19:58:58 +0000

It REALLY depends on the car. I have been seeing one and two year old used Hondas and Toyotas for MORE than the same model and trim level of new. Three and Four years old at only a slight discount.

By: Arnold Mecca

Arnold Mecca — Mon, 14 Jan 2008 18:42:21 +0000

Convincing arguments. My wife likes new cars over used but I find them just fine. I have a pre-owned accord and its a perfect car. I got a great deal on it too.