Tempted by a new car

[Jay_Gatsby]

Get the new car, but go with a Honda Accord rather than the TSX. Perhaps not the same driving experience (but you're starting a family, so the Autobahn is out), but it's just as safe and of the same quality. A 4-cylinder Accord with leather (EX) will only set you back around $22.5k, which saves you $7.5k over the TSX. Take that money and put it into a 529 for your future kid(s). A 4-cylinder "LX" model will set you back less than $20k, leaving you over $10k. Now we're talking real money. Is buying a TSX really worth that much to you?

Many of us can afford the TSX, BMW, Mercedes, etc... but we're on this board because we're focusing on FIRE. Spending more money on a car than is reasonable is inconsistent with this goal. Wait until you're 40 to buy the TSX. Still plenty of time to enjoy it, and you'll have far more disposable income to afford it and your kid(s). That $10k you saved will be worth around $16.5k if invested to get 5% annual growth.

 

[MasterBlaster]

Meanwhile I looked at 1-2 year old used cars and found the prices higher than the new car I ultimately purchased.

Agreed, Japanese cars bought used at the 1-2 year old mark are no bargain.

However, you probably could have bought them at a much bigger discount were you to bargain hard. The used car price comparison between the apparent price on the lot and the bargain-for price can be quite different. The mark-up in used cars is really large.

Nonetheless, I agree, buy Japanese cars new and buy domestic cars at the 1-3 year mark for the best value.

 

[bdk]

Current car (mazda) is 8 years old with 80k miles.

May I ask what model Mazda you have? I am on my 2nd one, and they have served me well. My first was a 1989 626 which I gave away at 211k miles (it was a stickshift and still had its original clutch!); I currently drive a 2002 Protege with 140k miles. I was going to change the timing belt last weekend, but when I took its cover off, the belt still looked in very good shape. I did a thorough inspection for cracks in the belt and didn't find any. So I told myself I'll inspect it again in about 30k miles. Both my Mazdas were built in Japan; look at your VIN, if it starts with a "J" then it was Japan-built.

Re your headlight problem: dumb question, but did you check the fuse? I'd take the car to a couple of independent mechanics and get a quote.
The noisy suspension can be easily fixed, by changing the shocks/struts. I did it recently for a friend. Most shock absorbers are about $100/pc so you're looking at about $300 for parts & labor.

To get a very rough idea of how much things will cost, you can use this estimator:
Auto Repair Costs? Free Online Estimates and Pricing Information

 

[Katsmeow]

I always think about buying used, but someone never end up doing it. That said, we drive our new cars for a long, long time (usually over 150k mileage).

When I got my Prius a few years ago, it replaced a car with 200k miles on it. I looked at newer used ones and they were more expensive than what I could negotiate for one brand new.

I also don't like buying really old cars. Newer cars are clearly more safe and I like that. I also like many of the newer features.

We are looking to buy a new minivan later this year (no, we aren't getting rid of the Prius.). I looked at what was available, looked at used ones and will be buying new. However, I expect to keep it at least 10 years.

 

[Bestwifeever]

If you start a family soon it may be harder financially to pop for a luxe car. I say go get that TSX .

 

[PSUgrad2]

Have you looked around for used TSX's in your area?

For what it's worth, I picked up a certified used 2006 TSX about 14 months ago for $18k, with 31,000 miles on it. Personally, I liked the smaller style that was last built in 2007 better than the new ones, so was only looking at used. But $18k for a car with 2 years of warranty left and only 30k miles, vs. $30k for the new version wasn't a hard choice.

 

[RetiredGypsy]

There's no question that paying $1000 to fix the mazda and driving it for another year is cheaper than buying a luxury car. But I'm getting to the point where additional investments in the mazda feel like throwing money away. Would be nice to have the additional safety features (6 airbags vs. 2) and other comforts from the newer car.

If you're getting $5,500 from Carmax, it sounds like about five $1,000 things would have to get in the way before the car became worthless as a trade in. If you have $5k in repairs that need done now, it would probably be worth trading it in if you're dead set on getting a new car.

However, if you're tossing about $1,000 in repairs a year into it, that's potentially another five years at minimum before you'd need to spend $34,000 on a new one. I'd assume it'd inflate to about that price anyway.

Was there a similar situation that got you the Mazda? You were throwing too much into the car you'd had previously? When the suspension on the TSX starts squeaking, will you use it as an excuse to buy another car later?

 

[MasterBlaster]

My impression of Carmax is that their cars are very expensive for what they are.

Go look at Carmax to figure out what you want. Then go to any other dealer to find a similar car. If you bargain hard you'll probably save around $2k.

 

[Luckygem]

Yes, buying a new car is a bad investment..or is it? We know it will instantly lose value, but if and only if you are absolutely sure that you have the money for it without sacrificing anything worth while, it then becomes a good choice. Who cares if it loses half the value in 5 years if you are not going to sell it. If its a car that you want to enjoy and can afford it, go for it. You only live once.

 

[jerome len]

1st of all, Mazda isn't worth $5500. If CarMax will pay cash for it, take it....fast. Next, regardless of the Mazda value, it will be worth junk price if you need a new engine......a risk you take for an order car. Next, what will tires, maintenance, etc. cost you compared to the same costs on a new car?

OK, if the Mazda gives you a year or two of trouble free service, that's the cheapest cost. If not, you pay big. And, what's your time worth, shopping for best service price, time in the shop, rental car, etc. if your busy, you have to factor in lost time, if you're retired, doing all what's neccessary on an old car may fill your time and be enjoyable.

Next, think of the Chrysler ad; "imported from Detroit". We need to put people back to work, Consumers Report lists a lot of cars make in Detroit (very few Chryslers) that are reliable and cost less than 30k.......in fact, I think most Ford and Chevy cars cost under that.

So, you have choices and options based on cost, time and luck. Good luck, just be glad its not a computer built 8 years ago. Does anyone still use their "386" or "486" which I think was around 8 years ago? We complain about cars but I look forward to the day when my computer lasts as long and is as reliable as the cars I own......A family member still drives a GMC truck he purchased new in 1987.

 

[NW-Bound]

To the OP:

I stopped caring about cars a long time ago, perhaps 20 years. But you are still young, and make good money as I remember from your past posts. You can afford it. And once you felt unsatisfied with your old car, and even went out to look at new cars, you will not be happy until you get that new car. No need for rationalizing, no need to ask this forum. Just go get that Acura this weekend (I don't even know what the TSX looks like, and would not know to suggest any other choices).

 

[soupcxan]

Well they were able to fix the light without replacing the entire assembly as originally thought, so that was not too bad. Still haven't found a cheap solution to the steering/suspension noises, but at least there's less pressure to make up my mind quickly.

Of course, now that I have started driving new cars, it's hard to resist...

 

[e86s54]

I'm approaching 30. If I were FIRE'd I wouldn't care about the suspension noises because I wouldn't be driving anywhere, and I'd have the time to fix the dang headlight myself.

Headlights draw a fair bit of current and so if the connections aren't great, you can have those intermittent problems. I would play with the bulb connections a bit, use some contact cleaner and that has usually done the trick for me.

 

[Dimsumkid]

Well they were able to fix the light without replacing the entire assembly as originally thought, so that was not too bad. Still haven't found a cheap solution to the steering/suspension noises, but at least there's less pressure to make up my mind quickly.

Of course, now that I have started driving new cars, it's hard to resist...

You never gave specifc details about what the real issue is with the steering/suspension. It's usually not too expensive to replace the struts. Sway bar links are easy to do yourself (usu. 2 bolts to remove). There's some bushings that could be replaced too, but it's hard to know without more details. If you're mechanically inclined, you'll save a lot of money here.

You made the comment earlier about any money going into the Mazda would be wasted. The same is true with any car, new or old, unless it's a classic collectible car. You drive a new car off the lot and you'll immediately lose 10-20%.

 

[Birdie Num Nums]

I bought a used Corolla in 1982, with 27K miles on it, and had many problems with it during the 16 years I drove it. It was frustrating. Guess I got a lemon. In 1998, I decided to buy new and got a Saturn SW2. (Paid cash for it, BTW.) I have been happy with it over the past 13 years (and have only about 68K on it so far). Anecdotal, I know, but I never regretted buying new. When I decided to buy new 13 years ago, it was only after reading a few sources that said that--although the car depreciates heavily once it's driven off the lot--generally it all "evens out" financially after some 6-8 years, although YMMV. (You can't compare the associated costs of a $30K new car to a $500 "beater" over this period of time, however.) The "new car smell" was irrelevant. Besides, the smell of new cars made primarily of plastic ain't as aromatic as the new car smell I remember as a kid.

 

[haha]

Carmax offered to buy the mazda for $5,500.

I drove the Accord and CR-V but I have to admit I like the Acura TSX the best, at under $30k (similar offerings from Lexus are over $35k). No question that I can afford it..... Would be nice to have the additional safety features (6 airbags vs. 2) and other comforts from the newer car.

This is a really nice car, that may cost you an additional ~$24,000. You cay you can afford it. You note the undeniable fact that will be safer and more pleasant to drive. Those side window airbags can save you from a head injury that can ruin your life. Also, in most places Acura dealer service is pleasure, not the torture that service from a low end dealer usually provides.

Problem solved!

Ha

 

[LightningDawg]

best to buy used....

The past 6 cars I have purchased have been off autotrader.com. I target cars within a six hour drive or so. I find used cars that I want, usually certified used, between 1-3 years old. I haggle over the price via email before I even go to the dealership. I have even negotiated trade in value ahead of time as well. The deal is not made unless both sides are as advertised.

It works for us.

 

[chinaco]

Your money.. your decision.

I tend to drive my cars a little longer than 8 years and 80k.

I shoot for 12 years min. By that time (and mileage) I typically begin having regular (and expensive) repair costs.

When I FIRE... I am liable to shoot for 20 years (if the car will) because our mileage will be lower.