We're in need of a second car for the Mrs to drive the kiddies to kindy.
My bro in law is a long time Toyota employee so we can get up to 20% off their listed price plus they currently have the 0% comparative rate deal on.
I have a biase against new car, you know, loses 20% as soon as you walk out the door etc etc but the Toyota deal does seem pretty good.
Can I have some words of wisdom please. Deal or second?
Thanks.
Assuming the car is around 30k, 20% is 6 grand off so that is quite significant in my opinion. For the ease of mind that you know you are getting a brand new car with warranty on it, it may be worth it. However you can find some great 2nd hand cars for cheaper, but this may take you some extra time as you can have to be lucky enough to spot on and also it has to be in great condition.
I personally feel the toyota deal from your brother in law may be well worth it, considering he can also get you the best prices and then 20% off that :) What car were you looking at?
loses 20% as soon as you walk out the door
One thing Im confused about, who buys a brand new car and plans on selling it as soon as you walk out the door? Surely even if you're buying a second hand car, the value of that car drops again as soon as you become the new owner (as the car will be 3rd hand car, or 4th, or 50th).
"Surely even if you're buying a second hand car, the value of that car drops again as soon as you become the new owner"
No, it doesn't. There's not even any requirement for a seller of a used car to disclose how many owners the car has had.
Probably very few people plan on selling it straight away. You do often see see 3 month old cars at 10k less than brand new price though. The main reason being that if you try and sell a nearly new car for the same price as an actually new car, people will chose the brand new every time.
It makes sense, the drop in price doesn't only apply to brand new cars, but also other stuff like phones, TV etc. If you plan or think you might need to sell the brand new car in a very short time, you probably shouldn't have bought it in the first place. Otherwise, assuming you have the finances and you're very sure that the car suits your lifestyle, the whole 'losing 20% or 10k as soon as you walk out the door' shouldn't be a problem.
True that new car loses value as soon as you leave the dealership but the value proposition has to be evaluated on your intended usage because obviously you are not selling your car after getting out of a dealership
Can i just say, there is way to little information for any real discussion or opinions here.
whats the budget for the new car ? does it change for the 2nd hand car ? how old / kms / whats the difference in the model/features between the new car and the 2nd hand car?
Used cars also depreciate. Car yards sell them at maximum retail value… when you drive it out of the yard it then is only worth wholesale value and that can be a massive drop with some used cars.
The pros with new cars..
You can get exactly the make and model you want.
The price is drive away, you don't have to pay a transfer fee like you do with used cars.
You know if it has been involved in a crash or fiddled with by a backyard mechanic.
The tyres, battery, brakes, etc are 100% new.
You can usually get discounted servicing deals for a few years.
You don't have to pay for a rego inspection for 5 years (NSW).
You may get more for your trade in on a new car and the price may also be more negotiable depending on what car you choose.
Some insurers will give a new car replacement if written off or stolen within a set period.
Used cars can be a good way to go also but not if you buy at maximum retail from a car yard. Buying at wholesale price is the best way, usually auctions.
if u want small cars like yaris,get new,not much price difference compare to 2nd hand, but like a camry, pickles got 2 yrs old for 15k.
we can get up to 20% off their listed price
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I have a biase against new car, you know, loses 20% as soon as you walk out the door etc etc
Even if that's the case, you've recouped that already on what you saved.
Second hand cars up to a few years old are often only a few $k cheaper than new, so aren't a such a good bargain when you consider that you no longer have new car warranty to fall back on if things go wrong.
And if you're having to borrow to buy it, take into account the extra you'd pay out in interest on a second hand car compared with the 0 per cent you can get on new.
Bottom line, do you want a car that you KNOW your wife isn't going to break down in? Sure, there are some great second-hand cars out there, but unless you know the car before purchasing it, it's really an unknown quantity. If it's within your budget, go new, and you know it will be reliable, and you won't be having to replace it in 5 years time.
jump on the new car deal ASAP as bigT is going away, and so will the chance to snag an AWESOME deal
+20% discount
+0% loan
+new car warranty
+often fixed price servicing
+that often inc extended warranty options
Used car gives you none of this! and cars go wrong, more and more the older they get and cost more and more too!
Check out places like Pickles or Manheim as this is where end of lease vehicles tend to gets sold. Leased vehicles always follow the standard routines for servicing so that is one less thing to worry about. Second hand or leased if your employer offers novated leasing as a staff benefit to employees. You can even lease a used car too.
I find no bargains at pickles at all, everyone is auctioning at dealers price thinking they are getting a bargain. Manheim is more fair, have bought a vehicle here before.
Re standard routines for servicing, yes that is true. However, leased vehicles' drivers are reckless! I'm one of them unfortunately, drive at work, always flooring to get to speed limit in shortest time possible because we have to get from A to B fast. I heard a colleague also did burn out a lot to screw up one of the vehicle he didn't like. So up to date servicing tell very little about vehicle history.
Caution!
Pickles have been known to sell Leased/rental vehicles without standard service routines passed off as Government fleet etc.
Inspect and do all your homework before you buy.
I've always thought that a second car should be a cheapie, like under $10k. How much are you spending, what sort of car do you want? If it is just for driving the kids to and from and a bit of grocery shopping I'd be looking for a corolla sized car at around $6-$8k.
Thanks for the great responses so far.
Little info as I have little clue and have not made up my mind on anything.
Well… I am also a hopeless decision maker so this is my lazy way of getting someone else to make up my mind for me… :-)
The 0% rate only applies to non Hybrid Camry and Aurion only so that pretty much set the price range though i don't imagine going beyond the $30K mark.
Aim here is to get the most out of my $$$ rather than find the cheapest car. Per say, if I get them same model Camry from previous year, would it be cheaper than getting a spanky brand new one with discount and so on…. Initial look on carsales indicated no.
Discount - it's off the rrp and I was told they have specials where I could get better savings so it's sorta put another fork in my decision make process. Wait for a super special or go with discount…
Reading through the responses, i must say i am leaning toward a new one. Taking Geewhizz's bottom line further, there's also the safety side of used car to be considered.
Wait a min.. What happen to finding a car that suit you? If you want the most out of your money you might end up with a hilux, but is that what you need?
I want the hilux actually.. :-) but this is for the mrs
You might be able to get the 20% off and 0% interest on a demo model?? They sell as new, but knock off that "new car price" since they've done a few km. (But maybe the 20% off is only applicable if pay full retail??)
Shame you're not in Brisbane, or I'd offer you a 2008 bmw 320d within your budget. :) But you might want to consider a car like that. A 2008 bmw (and some other makes) have better features than many other new cars, and maybe will last as long too??
A car yard will provide a warranty, but you'll pay less with a private seller.
In QLD we have to get a safety certificate to sell a car privately (and they nit-pick every little detail), so I reckon the money saved more than covers potential future surprises.
Car yard warranties are usually a bit of a scam. Whilst it does save you some $$, it's not as great as you think it is.
Have a quick google one them.
Will you still pay the ridiculous dealer delivery charge or does being an employee circumvent that and you just pay for rego and screwing number plates on for about $100
You dont want them to do a pre purchase detail anyway as all they do is add swirl marksand charge you massively for the privilege
had a chat with the local deal today. apparently just rego (~$800) and stamp duty (~$665) on top
have you seen what a car looks like fresh off the boat? you don't want a new car in that condition
I didn't realise there was an ocean between Altona and Blackburn in Victoria… :)
That's a good point. An Australian made car should have a significantly lower dealer delivery charge.
You will need to check if you can get the 0% finance as well as the 20% discount as i know holdens wouldnt do this for there employees
good point. just sms bro in law to check. thanks.
+1 Aurion, is a awesome car and will be good for 250k/15+ years before k's and time means you might have to spend anything on it; way better than the camary for about the same price point IMO. 0% would have me saying AMEN unless your older and want a small 4cl car for getting around?
This^. Can recommend my Aurion enough
What car does your Mrs want to drive?
If(Mrs wants Fiat Punto, NEW MRS,Buy car)
Budget? Requirements? If a brand new Camry would fit the bill then go new. If the mrs wants say a bit exciting and practical maybe a used VW golf gti would be better…(just a example)
If it's your misses car, ask what she wants. Big cars are easy to load with kids. Small cars are easier to drive in town and park.
I bought a demo because I wanted a five star safety rating and I got 30% off the drive away price. It can be hard to find a 5 star ANCAP rating on a second hand car.
Like everyone else said, it's very hard to go wrong with a Toyota.
ANCAP safety reports a few new Toyotas you might like (all 5 star):
Aurion
http://www.ancap.com.au/pdf/468.PDF
Corolla Hatch
http://www.ancap.com.au/pdf/495.PDF
Maybe even find out if your bro knows of any ex demo toyotas at his yard. Some ex-demos have $1000's slashed off and with the discount ontop could be a hefty sum off for a near new car.
If you intend keeping the car for 10 years or longer, I'd say go for the new car with the good discount and sleep easy for years to come. If you are a "car churner" (person changing cars every 12 to 36 months), then buy secondhand. Just my opinion.
More info, what are your used alternatives and their prices? what Toyota are you considering.
This is a car for your wife and kids, I'd put safety at the top of the list.