Some comments:
TJ wrote:
I love how people justify buying new cars over used (how much can a car get “beaten to hell” in a year, for example). The biggest drop in value over the life of a car comes as soon as you drive it off the lot, and that’s a guaranteed loss versus a potential loss of repairs when buying used. I’m all for people buying new cars if they want, as long as they understand why they’re doing so (that new car smell, ick factor of other people having driven it, finding the exact car they want, etc), but I’m highly suspicious of saving money due to less repairs.zeromoney wrote:
the best bang for your buck is a 1-2 year old car.. they lose so much of their value the minute you drive it off the lot. And not everybody beats up their cars.T’POl wrote:
It looks like you will have to give up a lot of fun and important things if you buy a new car. If I were you, I would buy a gently used car and not get into too much debt just for a car.Finance Junkie wrote:
You should buy a new or 1-2yr old car if:
(1.) You live or transit through a high crime area.Sun wrote:
Somehow I think you have attached too much to the new car purchase.A.M. Postscript wrote:
What about leasing?
Dear TJ, et al,
The problem with buying the car new is that the particular trim package is also a well-known for being a track racer. So I won’t know if someone’s been driving it down the freeway like an insane maniac, taking advantage of the full horsepower in the engine. Or if they modded it out like crazy raced it every weekend, then took the mods out and traded the car back in. Crazier things have happened.
So finding a ‘gently used’ one is a huge risk here. And when I say ‘huge’ I am not joking. This is an extremely powerful car with a lot of torque. Someone getting rid of one in a year with only 10K miles on it has probably ‘beaten it to hell’. Sure I’d love to have something with a ‘gently used’ 30K on it than with 10K ‘beaten to hell’. But you’ll never actually know right?
I considered a used one but every single car forum I have read for this specialty vehicle has counseled away from buying it used. And if I’m going to keep the car for a decade, I figure it’s ok to take the first year’s depreciation hit for having the car to myself and no one else to blame for ‘beating it to hell’.
Even when someone buys it off of me later, I fully expect them to be suspicious of me driving it gently. No one gets a 300+hp engine to drive it gently. No one. This car doesn’t even come in an automatic. It’s a 6-speed manual and is race ready when you drive it off the lot. I know what this car is and the specs on it. I want it because I’m going to love driving it. (The interior leaves something to be desired which is why I’m still considering a different car.)
I want to get exactly the car I want from the factory because the most popular wheels in dealer stock inventory sicken me. New car smell sickens me. But I’ll get over the smell. I can’t sell the ugly premium stock wheels for the $2K the dealer will charge me for them. Sun is probably right, I have attached too much to the new car purchase, but unlike most people, driving is very important to me. Therefore, T’Pol’s remark, “It looks like you will have to give up a lot of fun and important things if you buy a new car.” is very wrong. I am really going to love this car and it’s going to be the source of a lot of fun.
I have actually considered leasing since I may not actually get rid of my Altima, but even then I will take a depreciation hit as car dealers push that onto the leaseholder anyway. In the long run, because I believe I’ll keep the car for a long time, I think I’m better off trading in my Altima for what little the dealer will give me, handing the dealer some cash as a downpayment, and paying off a car loan as quickly as possible.
As far as Finance Junkie’s comment about high crime or traffic area, I wonder how he will feel about this next statement. Someone was killed on the front sidewalk of the house last year. How high crime can you get? Homicide is an anomaly for the neighborhood for sure, but every morning I seem to have a ding on my car because of the a$$hole guests of my neighbors. (They lean on the car with their studded belts or generally just throw food and trash around. The dog lives for chicken bones carelessly tossed into the yard.) Even though I am slightly worried about dings and scratches, all it means is that I don’t park directly in front of the house but across the street where the kids don’t congregate. Frankly it wouldn’t even occur to me about ‘breaking down in a bad neighborhood’. That’s what cellphones and AAA are for, and lately living in the ‘hood has changed my perception of it a lot. Most people are actually pretty nice and will help if you ask. You just have to sniff out the crazy first.
I appreciate all the comments. I’ve considered all these things before deciding what to do. The question now is, will I really pull the trigger and put a car payment into my monthly budget? It’s been really nice not having one. I’ve been thinking a lot about this and if I can get a renter into my apartment soon, I won’t have to feel too guilty about taking on car payment.
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{ 11 comments… read them below or add one }
Well, after all, what’s the point of being in control of your finances if you don’t spend the money on what YOU love?
For me, it sure as heck wouldn’t be a car, much less a new sporty one. (My car used to be a huge part of my identity, but then I moved to NYC and learned to do without, and now I can’t imagine going back — and I HATE driving now, even when I have to.)
But I’ve chosen to spend a lot of money on rent every month so that I can live in Manhattan and be within walking distance of my work, both of which are huge happiness boosters for me. And I like to save my money so I can splurge on travel.
I know this blog exists somewhat so you will feel accountable, but in the end, everyone needs to choose what’s important to THEM. If you can afford the car and it’s worth the sacrifice to you, more power to ya.
Why not instead put the payment, insurance, and gas money in a special account for 6 months and see how it works out. If it does work out, you have a big down payment ready, some money to start up the insurance, and some traveling money already to go.
The list initially sounded like all the reasons why you shouldn’t buy new, but it now sounds like it’s actually a list of things you’re choosing to forgo in favor of having the car you really want. Seems practical enough to me – at least you know what has to happen in order to afford the car!
Is it a Corvette?
Moom – Nice try. It’s not a Corvette, but that’s a very good guess. I’m not ready to spend *quite* that much though.
either way no one can argue you haven’t put a lot of thought into this! i think that alone makes you smart in my books, so good luck whatever you decide to do
(just be sure to drive it to one of our happy hours if you get it so we can see!)
Oh, heck, go for it! You seem like you know what you’re doing. It doesn’t sound like this purchase is going to kill you financially. You make a good argument for buying new. I thing a 1 or 2 YO car is usually a good idea, but you’re right – some of these may take more of a beating than, say, a used Volvo station wagon. I never thought of that before – thanks for pointing it out!
Agreed with the others. As long as you’ve thought it through, go for it! After all, saving money’s excellent but figuring out your priorities and putting your money there is equally important. Enjoy it!
I guess the question I’d ask isn’t “why new instead of used?”, but why such a ballsy car when it’s costing you a lot of other things? If you want to go fast on a budget, the motorcycle seems to make sense. If you want something that’s badass 4wd, the boy already has one. I’m scratching my head on the amount of money things like the WRX cost, but know that if it’s what you want, it’s not going to break the bank, either.
Are you getting an STi?
I just drove my mother-in-law’s 3 year old lexus 300 something or other. She can afford new, but bought this one used – still a pretty penny.
But damn. I drove it at night. And the HID headlights really are a terrific improvement from both my late 90’s vehicles. And my 1985 fun car, forget driving at night completely. The point is that the new technology in bulbs, the engineering on the lenses, big differences.
New/newer cars have nice bells and whistles.