So i wanted to upgrade my beloved first car lancer 2001 that still looks/runs good, the car i want is around $30K new or $16-20K used.
I can afford to buy new one without the loan but not sure if I should?
why people buy new cars? is there a hidden benefit ?…like selling it later better or claim tax
no but been thinkin of it.
why people buy new cars? i thought there is a hidden benefit that i dont know… like selling it later better or claimt ax dont know
the cars that i expect to hold onto for a while I buy new, the cars used in my business as workhorses i buy ex fleet as these cars get abused and not worth the new car coin.
Got a lazy $30k sitting around? must as well buy new. want to save some cash so you can buy a car and have a holiday then buy 2nd hand.
I've bought new. Twice, in the last 5 years.
If I couldn't claim the usage on tax, I would never buy new again. The car depreciates at an uncomfortable rate.
If you really want to upgrade, consider a demonstration model or dealer second hand. Something with a warranty is always good. Especially new car warranty (If car is less than 3 years old - Depending on make and model)
Should you finance?
If you have a house loan and the car loan interest rate is lower, than yes.
If you want to purchase a home sooner rather than later, it's worth considering, to keep the cash on hand.
I am using 2nd hand car at the moment. I think you can get pretty good deal with the second hand one.
For example: 40k KMS with 2 years of service warranty from dealers with almost half the price of brand new one. Think about it!
However, brand new means you are the sole owner of the fresh new car.
2nd hand
2nd hand.
With the amount of depreciation from brand new it is literally throwing money out the window.
So that is an ozbargain biased opinion, my regular opinion would be the same.
Shop around.
I've never bought a new car, and have pretty much resigned myself that I likely never will. I see that initial hit of depreciation as entirely avoidable. Let someone else pay it. I don't feel I'm really missing out on anything to be honest. Well, apart from all the angst negotiating with car salesmen over a discount and free mats LOL.
We bought a demonstration car.
The only benefits in a new car are the warranty and new car smell (or the special feeling that comes from being a first owner).
With longer warranties on modern cars you can get a 1-3year old car that has current warranty but has already taken the biggest hit on depreciation. So they biggest difference is the new car smell snob factor.
And the "comfort" in knowing a previous owner hasn't caused any difficult to identify mechanical damage.
Although perhaps this can be checked by getting a mechanic to check the potential 2nd hand car you want to purchase?
With the new car you get to choose the colour, options etc.
used car while it's value for money you always end up compromising on a few things.
I always buy used with low km and 2 to 3 years of age. Let some other sucker wear the initial depreciation. It is at its worst in the first couple of years. After the value drops, depreciation starts to slow down. After workin for years in the automotive industry, I would never buy new ever again. Even when I buy motorbikes, I do the same. Under 10,000km and 3 years old and already st 50% of their value. Too bad, suckers, I'll take that saving for something almost brand new.
If you are smart with your car buying, you can buy new cars and not take a depreciation hit, if you are willing to flip them within 6months/year. Usually in the $100-150k range, not in OPs price range. Basic rule of thumb is order a car before it is released, get the standard discount, make the right choice (so for example recently the GLC has been sold out), then flip it before demand dies down. You just need to make sure you have the next car lined up.
For the OP, don't buy new. You will lose money. If you think a Lancer looks good, then you are in the minority. That for you is a good thing. Keep it.
Look for a car about 1-2 years old with some warranty/service left and pushing about 20,000-25000km maximum.
I'm looking at picking up a used a45 hopefully about 55-60k so seller would've lost about 20k in 1.5 year =D
if you're on OZB posting questions, than I'm going to assume it's a need and not a want. if you need to upgrade your car, then get a 2nd hand. Never, NEVER buy new on a loan. My first car I had for 10 years and the 2nd I had for 11 years, both 2nd hand Japanese cars and gave me no real problems.
The only reason I bought a new car now was for the safety of my wife and family. We recently had our first baby and will be having another soon so safety is the utmost important priority and I wanted to ensure I did everything I could to keep my family safe.
happy hunting!
The second you walk out with your new car keys it drops in value 3-5K before you even drive it. Or so I've been told.
That only makes sense if you sell the car as soon as you walk out. Otherwise, (purchase price - selling price) รท number of seconds you owned the car = depreciation per second as far as your concerned
I find the real depreciation starts when the car changes shape.
Correct, after they have been shortened by a semi trailer, or bent by a tree, they aren't worth much at all.
Just depends,have you bought yourself a house yet ?