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New or used for the first car?

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JWong

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A discussion with a few buddies about a car noob that I know. It feels like there's a few pros and cons about getting either new or used cars.

Getting used as a first car could be a great trial run for the person. He can trash it as much as he likes if it's fairly cheap. Problem is, he wouldn't know how to mend it, and it might be a headache when he really needs a car. I'd hate to be his closest friend that would need to maintain his car for him.

Getting new, well... it's new. Fresher paint, new style, probably has better mpg since tech has come a long way.

What do you guys think?

As an aside, I told him to get a Fiat 500 as it is cheap, economical, and awesome looking.
 
Kapura said:
there is no good reason to buy a car new. It'll depreciate in value steeply and immediately.
Click to expand...

But if he plans on keeping it for many years, it's depreciation shouldn't matter as much.

Honestly OP, he should simply get something that's just a couple of years old. Best of both worlds.
 
Ultima_5 said:
But if he plans on keeping it for many years, it's depreciation shouldn't matter as much.

Honestly OP, he should simply get something that's just a couple of years old. Best of both worlds.
Click to expand...

Ok, but wouldn't it be better to buy a 1 year old car at 30k than a new one at 50k?
 
If you can afford it, and the depreciation doesn't bother you, I always recommend buying new.

Absolute WORST case scenerio, you get a lemon; but at least all the repairs are done for free under warranty and you could potentially flip out the vehicle under lemon laws.

With a used car you have less warranty, have no idea how the last driver treated it, things are going to be broken that you don't notice at the time of purchase, your miles are going to be higher, more repairs are likely sooner, etc, etc.

To me, the peace of mind a new vehicle provides is worth the extra cost if you can afford it.
 
I've would have said used no question, but with the way the used car prices look like especially with fuel efficient cars, I would just spend the extra few thousand to get something new.
 
Used to start. Get an older vehicle so you can work on it and hit the the junkyard for replacement parts on the cheap.

Gives you an appreciation for why you want to buy new.
 
RiccochetJ said:
Used to start. Get an older vehicle so you can work on it and hit the the junkyard for replacement parts on the cheap.

Gives you an appreciation for why you want to buy new.
Click to expand...

This.

Also, as a newbie you are more likely to trash your car or damage it through poor handling.
 
Getting a new car is never a good idea. I'm on my 3rd car (driving for 17 years now) and never even thought about getting a new one.
 
JWong said:
50k car is quite on the expensive range of cars. Even an expensive hybrid is like half that price...
Click to expand...

But luxury cars that expensive depreciate the fastest. In 2010, I bought a 2004 Acura RL which is a $46,000 car for $8000.

My first non-junker I ever owned was a 1995 Accord EX...$22,000 car. I bought it in 1997 for $14,000 and drove it for another 120,000 miles over 12 years.

Go used.
 
A fiat 500 is the last car I would recommend someone. Also, it's not as economical and cheap as the competition. Terrible to drive because of US regulations and because US customers love their automatic transmissions. If in Europe, the car is quite good.
 
BigDug13 said:
But luxury cars that expensive depreciate the fastest. In 2010, I bought a 2004 Acura RL which is a $46,000 car for $8000.

My first non-junker I ever owned was a 1995 Accord EX...$22,000 car. I bought it in 1997 for $14,000 and drove it for another 120,000 miles over 12 years.

Go used.
Click to expand...

Reminds me of that Top Gear ep where there was a 7000 gbp Mercedes CL 9 years old.
 
I bought my first car - a 1999 Ford Fiesta - from auction for £600 inc fees. All it needed was a new starter motor. Fantastic little car that drove great, sailed through its M.O.T. and served me very well. Easy enough to maintain too. I'd say go used, certainly for your first one.
 
It's your first car. You're gonna treat it rough and chances are you're gonna trade paint with something or someone else.

Get yourself a reliable, used car and call it good.
 
BigDug13 said:
But luxury cars that expensive depreciate the fastest. In 2010, I bought a 2004 Acura RL which is a $46,000 car for $8000.

My first non-junker I ever owned was a 1995 Accord EX...$22,000 car. I bought it in 1997 for $14,000 and drove it for another 120,000 miles over 12 years.

Go used.
Click to expand...

I don't trust used. If I'm ever interested in used, I demand receipts showing proof of proper maintenance.
 
It all depends on how much money your "friend" has. When I was working part time and putting myself through college I bought used. Now that I work full time and can afford it, I buy new.

Just bought a house, so I may switch back to new... We'll see.
 
Kapura said:
there is no good reason to buy a car new. It'll depreciate in value steeply and immediately.
Click to expand...

It's your first car. You're gonna treat it rough and chances are you're gonna trade paint with something or someone else.

Get yourself a reliable, used car and call it good.
Click to expand...

.

Just take someone with you that knows something about used cars, if possible a mechanic.
 
Kapura said:
there is no good reason to buy a car new. It'll depreciate in value steeply and immediately.
Click to expand...

I disagree in some ways. If you buy a car brand new, it has no miles or wear. If you plan to drive it until it's dead, it can easily save money in the long run. You're the only one who is driving it so if you're not a nitwit, it'll remain in good condition.

Buying a used car can lead to all kinds of mechanical issues you didn't know about when you bought it. Even if you do know, maybe you'll put more miles on it than you meant to and the problems will start earlier than expected. I've watched plenty of friends sink thousands of unexpected dollars into their used cars. I guess buying new as a first car isn't a great idea, especially for someone who isn't all that responsible, but I just don't totally agree that there's no good reason to buy new.
 
doitlive said:
A fiat 500 is the last car I would recommend someone. Also, it's not as economical and cheap as the competition. Terrible to drive because of US regulations and because US customers love their automatic transmissions. If in Europe, the car is quite good.
Click to expand...

If competition is the Beetle or Mini, I'd take Fiat in a heartbeat.

Not really sure if you're talking about the Japanese hatchbacks like Yaris or Honda Fit. Fiat is still a better driving and looking car for its class.
 
I bought a brand new toyota corrolla for 19K (after fees etc). I sold it two years later for 14K.

Also getting TDI's is good choice their value is slow. I think even better than the toyota.

Thing with cars, its really a waste to buy the expensive ones.
 
The depreciation of a new car is not something that has bothered me. When I buy a new car, I intend for it to last a long time, so the immediate resale value is not a concern.

Sarcasm said:
Thing with cars, its really a waste to buy the expensive ones.
Click to expand...

True. If you must have a luxury car, lease it.
 
Kapura said:
there is no good reason to buy a car new. It'll depreciate in value steeply and immediately.
Click to expand...

I disagree. Trading in a new car every 3 - 5 years reduces maintenance costs and although it costs more upfront, I think it pays for itself in the long run.
 
Sarcasm said:
I bought a brand new toyota corrolla for 19K (after fees etc). I sold it two years later for 14K.

Also getting TDI's is good choice their value is slow. I think even better than the toyota.

Thing with cars, its really a waste to buy the expensive ones.
Click to expand...

I'd never buy a Toyota new.

It's terrible to begin with, but the reliability is pretty good that a slightly old Toyota is like brand new.
 
JWong said:
I'd never buy a Toyota new.

It's terrible to begin with, but the reliability is pretty good that a slightly old Toyota is like brand new.
Click to expand...

Well it depends. There was no loan, all 19K upfront. Car only got oil changes. Than I sold it for 14K.

I would never get a loan for a toyota, or even anything higher.
 
It all depends if you are going to finance the vehicle or not. Financing a used vehicle usually leads to really high interest rates, whereas you can finance a new vehicle for less than 1% when they are running incentives.
 
I'll always suggest someone buying a car today try and get as new a car as possible.

That's because cars have gotten exponentially safer in the past 5-10 years, and we're talking about life saving differences here. So it seems pretty important to me. Make sure any car you buy today at least has side curtain airbags.

You can also check the safety ratings for any car on IIHS.org, because even some early cars that had side airbags didn't implement them particularly well, so you're still in some danger.
 
I went used for my first - mostly because I was 19 and the money was coming out of my pocket. Taught me some very valuable lessons because things DID go wrong and I know how to handle them now.

That said, this was also a car that didn't have major electronics and I could work on it in the driveway if I needed to. Loved my 82 Citation for that.
 
Doing the research myself right now.

I was considering buying a used Honda Civic, but found out that's a terrible purchase for someone who likely won't put much mileage on it. Civics barely depreciate, even in the first few years, so it doesn't make sense to buy used if you can afford new.

I'm leaning towards a 2-3 year old Nissa Sentra right now. Still reasonably reliable, and they have massive depreciation over the first 2-3 years as well. I'd save about $9-10K for buying a 2010 with less than 20,000 KM on it.

JWong said:
I'd never buy a Toyota new.

It's terrible to begin with, but the reliability is pretty good that a slightly old Toyota is like brand new.
Click to expand...

The problem is they just hold their value too well. If you're in a climate like mine (Ottawa, Canada), rust is what will wear out Toyotas and Hondas here, not mileage. I test drove an 8 year old Honda and it was already starting to rust. A few more years and it will be an old rust bucket. If you're buying new, there's no risk, and you're only losing about $2K a year on depreciation. You are spending a bit more in the end, but you also get a new car out of the deal. New corollas and civics are a lot nicer than they were 10 years ago, and have a lot more power to boot.

Just make sure that whatever you buy, new or used, you're not paying interest, or not much. Don't buy outside of your means. A vehicle is just a waste of money, in the end.

Grinchy said:
I disagree in some ways. If you buy a car brand new, it has no miles or wear. If you plan to drive it until it's dead, it can easily save money in the long run. You're the only one who is driving it so if you're not a nitwit, it'll remain in good condition.

Buying a used car can lead to all kinds of mechanical issues you didn't know about when you bought it. Even if you do know, maybe you'll put more miles on it than you meant to and the problems will start earlier than expected. I've watched plenty of friends sink thousands of unexpected dollars into their used cars. I guess buying new as a first car isn't a great idea, especially for someone who isn't all that responsible, but I just don't totally agree that there's no good reason to buy new.
Click to expand...

Yeah, and also, if you're buying used, chances are it needs a good bit of maintenance off the bat. You'll notice a large percentage of used vehicles for sale are either around the 60,000KM mark or 100,000KM mark. The former will require new breaks, and the latter will require a new timing belt and possible breaks. Count on buying new tires soon as well.

There's no doubt you can save money buying used, but I don't think it's as black and white as people make it out to be.

br0ken_shad0w said:
I've would have said used no question, but with the way the used car prices look like especially with fuel efficient cars, I would just spend the extra few thousand to get something new.
Click to expand...

Seriously. Used car prices for civics and corollas are downright ludicrous. $5K for a 9 year old car starting to rust, and that needs over $1K of maintenance off the bat is a little much.

But hey, with the Sentra I'm looking at, I'd be crazy not to buy used. Saving $9K for less than 3 years of light usage is pretty insane.
 
My first car was a used car. I beat the bejesus out of it ... it was probably already beaten before I got it. Really the only thing good about buying used is the affordability (can possibly buy used cars outside of your "new" car price range) and no big depreciation hit.

My 2nd car was new. Satisfaction of being the only owner. Much much much lower interest rates even though depreciation hits hard (whatever, I owned the car for 7 years). Latest features and creature comforts on the market in the new cars. Warranty coverage.

You can also deduct the sales tax on a new car come tax time.
 
Here we go again... I swear this same thread pops up about once every month. Always ends in massive debate over finance stuff.
 
1st Car: Used Automatic
2nd Car: Used Stick
3rd Car: Whatever you feel like. I bought new because I needed a boost in my credit rating, and had my dad cosign the loan.
 
I normally recommend going used, but good used cars are still a bit expensive relative to historic values, and you can get incredible deals a new cars if you shop aggressively. In December of last year, I purchased a new Corolla for $15,150 after incentives and got a $1000 debit card on top of that. It also included a really great maintenance package for the first 2 years of the car. That said, buying a car at this time of year is a completely different game.
 
used. preferably as bare-bones as possible. especially for a first-time driver.

my car history has been thus:
1st - '89 geo tracker, no power anything (including steering), 89,000 miles on it. car was a total bucket, but i loved it and it served me well for almost 2 years
2nd - hand me down '98 escort zx2, ~80k miles on it, power steering/locks/windows, first in-car CD player, great car lasted me 2 years until it got totalled in an accident
3rd - '02 Elantra, salvage title bought for almost the exact amount i got from the previous accident, only 13k miles on it, and basically in new condition. this car served me well for nearly 7 years, power everything, after-marketing CD player/stereo. it being salvage means the price was stupidly low up front but i got basically nothing for it ($800 which was probably more out of pity than anything) when i traded it in toward...
4th - '11 Elantra, currently leasing this car. the base package was nicer than anything i'd had previously. i love this car and appreciate all it's features. i'm not sure i'll ever be flush enough to want to BUY new as the depreciation factor is too much for me. i'd have to buy something that would last me close to a decade.
 
daw840 said:
It all depends if you are going to finance the vehicle or not. Financing a used vehicle usually leads to really high interest rates, whereas you can finance a new vehicle for less than 1% when they are running incentives.
Click to expand...

This right here.

The OMG depreciation people are whacko. Who sells a new car after a month? Idiots?

Lower intrest, lower maintenance costs.
 
The OP is too bare. We need more information about your friend so that we can all give better tailored advice that would fit his/her situation.

Is he 16 years old and this his first ever car?
Is he 21 years old and buying his first car while finishing college?
Is he 23 years old, just started a new job and is planning to buy his first car without daddy's help?
Is he 28 years old, with a stable job, never needed to drive before or always had an old car he could borrow from his parents but is now finally looking to buy his first car?
etc...
 
If money is really tight (less than 10K USD) then get a cheap reliable car like used Corolla or Camry. If you have 10-20K in budget then a certified pre-owned. If you have a budget of more than 20K and you're planning on keeping the car for at least 8-10 years... get new.

I've owned too many used cars that were turned into absolute POS after 20K miles.
 
AstroNut325 said:
If money is really tight (less than 10K USD) then get a cheap reliable car like used Corolla or Camry. If you have 10-20K in budget then a certified pre-owned. If you have a budget of more than 20K and you're planning on keeping the car for at least 8-10 years... get new.

I've owned too many used cars that were turned into absolute POS after 20K miles.
Click to expand...

protip: people generally don't get rid of used cars that run like a top and have no problems.

With the current state of the economy people are holding on to used cars longer. There is less supply of used right now and a glut of new cars sitting on lots. This leads to awesome cash back deals and awesome dealer financing. I got 0% for five years and my credit isn't even that great.
 
Buy new. People that say otherwise I think are being unfair and downright ill-advised.

Benefits of buying new:

1) Maintenance costs are little to none.

2) Durability.

3) Fuel efficiency.

4) Low interest rates (if financing).

5) Features and the full comfort of owning a new car.

6) You are the only driver. The car is wasn't driven by another person.

++ a few more I'm pretty sure but this is just from the top of my head.

Disadvantages of new car:

1) Depreciation.

2) Initial cost of entrance.

...... ..... .... Nothing else. Really.

___________________________________


Benefits of buying used:

1) Initial cost of entrance. Meaning: Cheaper.

2) You can pretty much beat the car down because it's a used car (but this only applies if the car was bought at a price of < $3,000) only then this rule would apply. Otherwise, if the car you bought was $10,000 or >, technically, you wouldn't want to do that.

3) Savings.

...... ..... ... Pretty much it.

Disadvantages of buying used:

1) The car is driven by another person. It's probably run-down.

2) Maintenance costs are extremely high in most cases.

3) Stress factor <--- Yes, I'm not kidding. Thinking about when will this car need another trip to the garage.

4) Old technology.

5) Not fuel efficient.

6) Much higher interes rates (if financing).

7) Costs in the long run are infact a lot higher.

++++ Much more.

________________________________

Make a choice. I say go new, you won't regret it. Not one bit. There's nothing wrong with buying used, just make sure you know what you get yourself into.
 
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