Used Car Shopping - Not Fun

[Walt34]

Like a couple of others I have been ordering our vehicles (except for the Honda) but since we keep them until reliability or parts availability become issues I don't worry too much about the slightly higher price we pay for that. The 2003 GMC 4WD pickup is now 22 years old and only has 120k miles on it, and garage kept since day one. Ditto the 2014 Honda Accord, although slightly less mileage being the "daily driver".

The GMC has a tape deck and the cigarette lighter/ashtray was standard!

I don't know that I'll order a new truck though since I'm now 75 and the prices are getting silly so I'm not sure I'd get the value from a new one unless I make it to 95 or so, which is doubtful. I'll certainly take a hard look at Carmax; a BIL bought his 2003 GMC pickup there and he's still very happy with it. Or maybe that was just a good year for GMC pickups?

But for the time being I'll just hang on to what I've got until something real expensive breaks on it. And maybe even then I'll just eat the cost of a new transmission or engine; that'd certainly be cheaper than a new truck.

 

[EastWest Gal]

Actually it was cheaper for me last year to buy new than used. That is when you consider all aspects of purchasing a vehicle. In the area I live you need a dependable vehicle and we put a alot of miles on our vehicles.
If you drive up town to get groceries once a week then I would buy a junker.

We just started shopping for a new car with my son, due to potential expensive repairs. New seems to be the same price as used. I can't figure out why.

 

[freedomatlast]

I've found the same thing with Toyota and Subaru. GM, Ford and Stellantis, not so much unless it's a niche vehicle.

 

[Music Lover]

I've never understood this as most fatal accidents occur in close proximity to your home.

That's likely because most trips are in close proximity to one's home.

 

[OddGuy]

Just go to the VW dealer and pay cash for the last car you will ever own before your license is taken away.


A day of pain for you, then all your remaining driving days in something that works.

 

[COcheesehead]

That's likely because most trips are in close proximity to one's home.

Reminds me of an old joke. Did you hear the one about the guy who read that most accidents occur within 20 miles of home? So he moved 20 miles away.

 

[FD1000]

Since 1994 only new vehicles by Honda, Toyota and lately Hyundai and Kia because they were much cheaper with 10 years warranty and I sell them after that.
So, instead of flying first class for several hours, I prefer to buy new vehicles with all the new technology and safety. I can do both, but at least it's a good reason that lasts years, not hours.
A used Honda and Toyota is still expensive and why it's not worth it.
In retirement we have been driving about 6-7K miles per year, but we will replace our vehicles within 10 years regardless. We don't save on good vehicles, never luxury ones.

 

[audreyh1]

I don’t worry about vehicle depreciation rates.

 

[AudiDudi]

I don’t worry about vehicle depreciation rates.

I like to let other people take the depreciation hit. Last car I bought was 2 yrs old with just under 40k miles. It was about 45% less than what it sold for new. Montana also has a graduated age scale for vehicles. 0-5 yrs is a flat fee + % of vehicle value, then 6-11 yrs and over 11.

 

[jollystomper]

I dislike the car buying process so much that I just go the CarMax way. Fixed prices, won't be buying a lemon, dump off my old car for the pennies trade in value. Of course, this will cost more than buying used on you own. But for me, I like the ease of CarMax.

I agree with this. Of the 4 cars purchases we made since 2013, 3 were from Carmax and the 4th from another national "fix priced" dealer. We have had good experiences with this method. I think the "buying used on your own" is the same gene as "owning rental property", and I was not born with that gene . We do not smoke, drink, or gamble, and I still do our lawn work, so one may as well BTD on something .

Earlier this year we went back to 3 cars and I BTD on a low mileage 2023 Highlander. I liked the style and Carmax had a large influx of them that drove the prices down at the time. I am very happy with it, especially for longer trips.

My only criteria for buying used is that they must be new enough to have these features: rear view camera and Android Auto screen support.

 

[TheWizard]

I don’t worry about vehicle depreciation rates.

Neither do I.
Folks who buy a new car and then trade it in on another new car in two or three years are the ones for whom depreciation is an issue.
Keep a new car for 12+ years and it's a non issue...

 

[FLSUnFIRE]

The car I bought new and just sold cost me 27 cents a mile in depreciation (purchase-sale/miles) and maintenance (mostly oil changes and a new set of tires). Not too horrible, insurance was around 15 cents (FL) and gas probably averaged around 12 cents a mile. I didn't keep it long enough for any major repairs so about half of it was depreciation during the steep side of the depreciation curve from new. I owned it for about 5.75 years. Even saving some depreciation by buying used would end up costing more in maintenance for the same period (was coming up on some service and was about to time out of the factory power train warranty at 6 years) so I'm guessing close to break even given the cost of late model used cars compared to new in recent years it's probably the better bet IMO to buy new in today's market.

Sort of interesting to think about since it's timely for me. I figured buying new would be a lot more expensive relative to used than it probably is in today's market given my back of envelope analysis and feel a little better about the BTD moment I just had with another new vehicle.

Carmax has come up a bit in this thread.... from what they offered and what my car will sell for at a dealer they must be making good margins (I got 11% higher selling to another nationwide corporate dealer not associated with my purchase) unless they sell 11% cheaper too. Retail will probably be about 30% more than Carmax offered me.

 

[freedomatlast]

Folks who buy a new car and then trade it in on another new car in two or three years are the ones for whom depreciation is an issue.

Most of the time, but not always. I just sold a 2023 model for a little more than $8000 more than I paid for it.

 

[freedomatlast]

I've looked at both buying from, and selling to, Carmax and Carvana several times, and in all cases they severely lowballed the trade and were much too high to buy from. Crazy high margins. The only thing I can think of that may be keeping them in business is that people will pay a big premium for the no haggle experience. Also, many people compare the Carvana / Carmax price to the advertised price from other dealers and think they got a decent deal. What they forget is that you can bargain with most other dealers and save several thousands of dollars off the advertised price, but there's no bargaining with Carmax and Carvana. And in addition, they tack on ridiculous shipping costs, if it's not at your location, whereas other dealers generally do not charge specifically for moving a car from one location to another. At Carmax / Carvana, it's take it or leave it. I chose to leave it.

 

[pb4uski]

We just started shopping for a new car with my son, due to potential expensive repairs. New seems to be the same price as used. I can't figure out why.

That's been my experience recently. A couple decades ago I always bought ~2 year old cars whose age and mileage were still under warranty for a year but was able to buy them at a good discount compared to new. More recently, such cars were only a few thousand or less than new, not enough of a discount to make it worth buying used given that we often hold cars for a decade or so.

 

[Semi-Retyrd]

My last sale was a 2014 Toyota Camry with 100K miles bought new for $30K and almost sold to Carmax in 2022 for $11K. My wife's friend was looking for a car and we sold it to her for the Carmax price. I was happy with the car and it was in very good condition, but since we were moving out of the country I had to sell it.
If you have a lot of free time on your hands and live near a Carmax you could try this - park and watch customers bring their cars in for a quote. If you see one you like, offer a little above the Carmax quote and you will get a car that's been checked out for issues at a wholesale price.
Of course this requires you to be less selective, which may not work for your case.

 

[Qs Laptop]

We just started shopping for a new car with my son, due to potential expensive repairs. New seems to be the same price as used. I can't figure out why.

I'm shopping Lexus RX350s, new and used. Used models are priced higher than the original MSRP on the window sticker of that vehicle (original window sticker is visible on dealer's website.) I can't figure out why, unless it's "tariff fear." There is also high demand for these vehicles.

 

[mountainsoft]

I don’t worry about vehicle depreciation rates.

I generally don't either, but I only purchase vehicles that have already depreciated. If I buy a new vehicle for $30K and need to sell it a couple years later for whatever reason it may only be worth $20K. That's a $10K loss, a really bad investment. That same $10K could earn a lot more money with even safe investments.

In comparison, we have sold most of our used cars for the same amount we paid for them, if not a bit more (barring wrecks where we couldn't sell the vehicle).

 

[COcheesehead]

I value our cars through KBB occasionally when I update our NW statement. Both of our cars, a ‘23 BMW X3 and a full size ‘24 Bronco Badlands went up in value since we purchased them.

 

[2HOTinPHX]

I'm shopping Lexus RX350s, new and used. Used models are priced higher than the original MSRP on the window sticker of that vehicle (original window sticker is visible on dealer's website.) I can't figure out why, unless it's "tariff fear." There is also high demand for these vehicles.

Your last sentence answered your question regarding pricing.

 

[mountainsoft]

Newer VW's are not known for long term reliability.

I can't speak for the newest models, but we have found VW's to be very reliable and inexpensive to own and maintain. My current 2000 Jetta has only cost me $9834 (including the cost of the car) over the last eight years. And yes, I keep detailed records.

I owned my 1976 Rabbit for over 35 years and spent less than $10K over all that time.

My wife's 2004 Jetta has only cost us $7456 in seven years, again including the cost of the car itself.

Sounds like he already has a junker.

I don't consider my car a "junker". Sure it's 25 years old but it runs and drives great. The paint is shiny with no dents, scratches, or peeling pain. The interior still looks new, no rips, stains, or wear anywhere.

Trust me, we have owned junkers. Most of our first cars cost under $500 each and we put a lot of sweat equity into them just to get them running. My 2000 Jetta feels like a new car to me.

The only reasons I have considered replacing it is to gain a bit more cargo space, a "slightly" higher ride height, and an automatic transmission. So far all of the larger vehicles we've looked at actually have LESS cargo room with the seats up, sit way TOO high (opposite problem we have now), and the transmissions are very slow to respond. Not to mention all the features I have now that are missing in newer models.

As for those folks recommending we buy a brand new car, thank you, I appreciate your advice, but we obviously live in different worlds. We could not afford a new car even if we wanted one, which we don't. Could we stretch our budget? Maybe, but why? That's a lot of money wasted just to go get groceries. I would rather buy a used car and spend that money on things we enjoy more.

 

[Diogenes]

The problem is you've narrowed your search to VW's and Audi's. ...

Exactly. It may be, that VWs are rising in price, because other German brands are receiving (correctly) a reputation for being unreliable, while some buyers still want a German car. That leaves them with VW.

Broadening one's search should offer considerable benefits. In our SUV-suffused market, sedans or coupes are likely available at comparative discount.

I'm a zealot of my own... only recommend Miatas (to pretty much anyone). Prices on older ND Miatas are starting to look reasonable.

 

[Texas Proud]

We just started shopping for a new car with my son, due to potential expensive repairs. New seems to be the same price as used. I can't figure out why.

Or close enough to not want to go used... well, except for one that is 5 or more years old and approaching 100K miles...

 

[ArmchairMillionaire]

The only thing I can think of that may be keeping them in business is that people will pay a big premium for the no haggle experience. Also, many people compare the Carvana / Carmax price to the advertised price from other dealers and think they got a decent deal. What they forget is that you can bargain with most other dealers and save several thousands of dollars off the advertised price, but there's no bargaining with Carmax and Carvana.

When we bought our 2024 Trax LS at the very end of 2024, the stealership was not willing to bargain at all. Their position was that the Trax was basically a new vehicle for 2024, and they have several customers interested in it at the MSRP of $22.9K. They said since we were the first to inquire since they ordered it, we had first crack at it. If we did not want it at that price, they would just call the next customer in line.

Since it was the exact model/trim/color we would have ordered, we just wrote them a check for it.

 

[ivinsfan]

That's likely because most trips are in close proximity to one's home.

Yes my point was using a beater car to "run errands" is somewhat of a trade off.