Last post on Dec 08, 2013 at 7:13 PM
You are in the Sedans
What is this discussion about?
Chevrolet Malibu, Nissan Maxima, Mazda MAZDA3, Nissan Altima, Honda Accord, Honda Civic, Hyundai Elantra, Lexus IS 250, Acura TSX, Car Comparisons, Sedan
#3399 of 3640 Re: Honda Civic [suydam]
Aug 20, 2013 (8:55 am)
suydam wrote: "...Tom and Ray, the car guys, say that as a rule of thumb you should expect to put $1000 per year into a used car...."
Yes, I recall them saying something like that too, and I'm afraid to say that averaged out it more or less held true for me back when I was driving c. 10 year old cars. Some years might be $500, but other years might be $2000, and the average was probably around a thousand.
But that might be another argument for new car. If you spend 7k on a used car and spend another 7k in maintenance and repair over the next 7 years, you're out 14,000, and at the end of it you have ancient car with almost no value.
If you instead start buying a new car, at the end of 7 years you'll still have something that's worth a good deal, and you can either trade it in or keep driving it. For many new cars, all you'll basically just need to do are a lot of oil changes, and probably a set of tires, but maintenance and repair costs will almost certainly be very low and quite predictable.
Your time and stress levels also are worth money. The stress and the hours at repair shops I used to spend with old cars was worth something to me in cold, hard cash, even if I was never paid for it. To be almost free from those annoying hours spent in that way with a new car is a positive dividend that's worth a good deal imho.
Again, just my 2 cents.
#3400 of 3640 Re: Naive purchaser looking for advice [gmanusmc]
Aug 20, 2013 (8:54 am)
gmanusmc has a good idea about looking into a lease.
No matter what the brand, it's a good time to buy or lease because car dealers are clearing out the last of the 2013 models. You should be able to get a good deal. Try this site:
There are other, similar sites that are probably just as good. You put in the model you want, and then dealers within a 50-100 mi radius compete for your biz and offer you a good price.
Aug 20, 2013 (9:15 am)
Thanks a lot everyone, I'm absorbing a lot of information here.
I'm a pretty frugal money conscious kind of guy so my initial impulse when I hear "purchase new" is "OMG no, depreciation!!!!" but I do see that a used car can end up costing the same, if not more. Essentially, my goal, is to have the most reliable vehicle possible, while incurring the least overall cost (duh, who has any goal other than that), to that end, and thinking along the lines of the reason people are suggesting purchasing new, why hasn't anyone recommended purchasing something 3 or so years old from a dealership? Don't we get most of the same benefits (reliable) while not incurring the cost of depreciation?
#3402 of 3640 Re: Purchasing New [acemanhattan]
Aug 20, 2013 (9:28 am)
I think you'll find that because Hondas keep their value pretty well, a three year old Honda costs not much less than buying new.
#3403 of 3640 Re: Purchasing New [acemanhattan]
Aug 20, 2013 (9:56 am)
Agree with gm 100% here.
If you're going to get a 3-4 year old Ford, GM or Chrysler, sure, go ahead and get used. Probably that's better than a 10 year old Honda. You also might be able to get a 3-4 year old Hyundai or Nissan at a good price.
But if you're fixed on Honda, and as a big Honda fan myself I can see why, then getting a 3 year old Honda in tip-top shape ("Certified") doesn't get you much of a discount compared to new. And by 3 years your bumper to bumper warranty has expired.
And yes there's depreciation, but the first three years in a car's life are almost always its best and most trouble-free years.
#3404 of 3640 Re: Purchasing New [acemanhattan]
Aug 20, 2013 (10:06 am)
Maybe consider one of the last of the new 2013 Mazda3s? They have an all-new Mazda3 for 2014, and so the last of the old generation if you can find one are going for a big discount. Here's what I got from carsdirect, which is another good site to try:
2013 Mazda Mazda3 i SV 4dr Sedan in 40201
Target Price: $14,786
Having owned both Mazdas and Hondas in my life, I think they are both good cars. Imho Hondas are better, but it looks right now like you can get a bare bones base 2013 Mazda3 for about 2500 less than a 2013 Honda Civic.
Aug 20, 2013 (10:21 am)
In the long run buying is usually cheaper than leasing. But if you want a different car every 3 years or so, this is something to consider.
Per month for 36
months $2,599 total due at signing.
or finance at 0.9 for 5 years...
APR for 24-60 months
2013 Civic Sedan Special APR
0.9% APR for 24-60 months
For well-qualified buyers and buyers that qualify for the Honda Graduate Program criteria
#3406 of 3640 Re: Purchasing New [acemanhattan]
by Kirstie@Edmunds HOST
Aug 20, 2013 (10:32 am)
As a self-described cheapskate, I find myself agreeing with what others are saying here, particularly since you initially talked about keeping the vehicle for 6-7 years, and that was gonna be a mostly-used-up used vehicle. So, if you can keep a semi-beater for 6-7 years, surely you can plan to keep a brand new vehicle for at least as long, if not longer, eh?
One advantage to owning it from new is you get the full length of the manufacturer warranty (some of the longer warranties don't transfer in full to the 2nd owner), and you will know how it's been maintained (hopefully very well) and cared for. Then, once you're finished paying for the vehicle, you'll have that uber-pristine used vehicle you were thinking of buying right now, only it'll be almost FREE for you to own it.
Aug 20, 2013 (12:24 pm)
What is the typical length of the manufacturer warranty and what might I be surprised to find that it does not cover?
Also, if I want to go the new car route, but with the budget of someone on a modest teacher's salary, and I want to get 100k miles out of it with great gas mileage, what other makes and models might I consider?
I saw the mention by benjaminh of a Mazda3 (thanks benjamin), what else might I consider?
#3408 of 3640 Re: New Car thoughts [acemanhattan]
Aug 20, 2013 (12:33 pm)
If you go new, you can get 100k+ out of any car with proper maintenance.
If you want to keep your out-of-pocket cost as low as possible and fit payments into your teacher's salary, you might check out something like a Kia Rio (I just leased one) or Kia Soul. I've seen great lease deals on these lately, e.g. $159/mo. with nothing out of pocket, 3 years, 12k miles a year. No worries except gas and regular maintenance and insurance. Five-year/60k bumper to bumper warranty, 100k/10 year powertrain warranty.
My 2004 Elantra GT, purchased new when you could get a fully-loaded Elantra for $13k (not any more!), has almost 90k miles, is still under factory warranty, and has had little beyond regular maintenance--no problems at all for the first 8 years. So it's possible to not spend much for a new car and run it 100k miles or more with few problems. I like the Hyundai/Kia warranty for long-term ownership because engine/transmission problems are the most costly to fix, and I don't have to worry about paying for those for 100k miles or 10 years, whichever comes first.
BTW, that Elantra has a KBB private party sale value of about $6k... after 9-1/2 years!