[USER]

I know most people here favor buying old cars and have low or no car payments. However, what do you think when it comes to buying new basic economy cars?

I can buy a new one for $20k that comes with 10 10-year warranty, or half the price $10k on an used one with 100k miles.

With a new car, I know I would not have to replace anything for at least 3-4 years.

With a used one, you’re always prepared for something to break. I also don’t know much about cars so I don’t know how to inspect them when buying used.

Yes insurance is a bit more expensive new but not by much with my current policy.

[Allison]

My experience is that later model cars were built with lighter weight materials to try to meet cafe standards. While they’re new they don’t last the way older cars have proven themself to.

I’m still firmly in the pre 2015 camp, even preferable to the 2005 ish camp.

I drive 60k miles a year and I’ve had more issues with fleet/company vehicles a few years old with 75k miles to 100k miles.

Now that the company car program is no more and I drive personal cars my 2000-2005 lexus/Toyota products have cost less in maintenance up to 350k miles than anything newer has or would have cost me if it was my own

[Michelle]

Buy a vehicle that isn’t one of those 10 year 100,000 miles warranties that you can’t actually use.

I buy my cars new. And if you buy the most basic of the basic models… you usually make out ok.

I like to buy my cars once then drive them until they die. 15-20 years.
Toyotas. Hondas.
Not Kia or Hyundai.

After Covid, used cars aren’t worth it anymore.
I’m all about frugality. Buy a base model Toyota Corolla.

If you can’t pay cash for it, you don’t get new car dealer incentives on used cars.

I have an 8 year old Toyota. It’s needed nothing but oil changes.

After 8 years the car has only lost about $6,000 in value from the price I paid for it brand new.

[David]

If an economy car ($20,000 range) suites your needs then buying new and keeping long term is fine. If you keep it fifteen years and sell it for $5,000 thats $1,000 / year.

Hard to beat that.

A lot of folks want something bigger or with more features. A 10-12 year old garage kept Honda or Toyota from an individual seller can be a huge value here.

Think like a Tundra, Sienna, Odyssey, Pilot, Highlander or something like that.

These had a higher initial price when new, so much more depreciation than a $20,000 economy car over ten years, the 10 year old vehicle starts to make more sense in those cases.

Not sure what you are looking at for $20,000 (maybe Hyundai or Kia?) but I would lean more towards a corolla or a civic for a new basic economy car even though that might put you more in the $24,000-ish range.

Quality and reliability would be worlds better in my opinion.

[Dees]

For myself, I would get a new reliable $20K car that holds value for a while, especially since used cars have been priced so closely to new ones.

For a teenager, I would get a reliable used one, knowing the high odds of them being rough on the car while learning to drive.

[Mindi]

I wouldn’t buy a car with 100k miles on it, that’s usually when everything starts breaking.

I go for 50k miles.

Price is good because it’s already depreciated for the most part, but still a lot of good milage left before most systems start to fail.

[Christina]

I have always bought new cars and drive them until the wheels fall off. I still reached FI as planned.

Buying used is not a requirement to FIRE.

[Don]

As always the particular details of the car like model, year, engine type, usage and service records are more important.

If you can get a new car that is super reliable, safe and fuel efficient at 0% financing it’s definitely worth it

[Author]

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