New car vs. used car - revisited II

Posted by Data Babble | 8:06 AM | , | 1 comments »

I got some better feedback from people this time concerning my comments about buying new versus buying used. So, I thought I would go for one more post here. Life with the Quinns commented that they bought a used Honda minivan for about $10,000 cheaper than new, but ended up spending about $10,000 in future repairs. E.C. commented that it can also make sense to buy new if you plan on driving the car for a long time. Also, it's helpful to finance a new car if you can get 0% or a very low rate rather than coming out of pocket for the full purchase price. That way you can keep the money in your account earning interest.

Like I've said before, you rarely hear the negative side of buying a used car from these radio and TV personal finance personalities. "It's always better to buy used!" No, actually many people have made out much worse with a used lemon and it cost them much more financially. Unless you're a mechanic and can fix you're own car problems, buying a used car can be a disaster.

Even many "lucky" people who have purchased used cars and had no problems will spout the same "always buy used" rhetoric. Yes, buying used is great financially if you luck out and get a genuinely good used car. But, this basically boils down to a financial risk with many variables involved.

So I'll leave it at this: Do your homework and don't get caught up in the idea that buying a used car is always more financially responsible, because sometimes it's not.

1 comments

  1. Life with the Quinns // February 7, 2008 at 3:12 PM  

    I definitely think that my next car will not be used anymore. However, I will be looking to finance it at 0% interest. =) Thanks for the tip! Your website is very helpful.