new car vs old

[Goldy1]

My dad offered to give me 5 grand toward a used car and 10 grand toward a new car.
I'd rather have 10 toward a used but he's extremely stubborn and won't listen or begin to hear my arguements on why used is better.
We are a family of three.
our son is three.
I currently drive a 2007 saturn ion.
It's bearable but i occasionally get cranky when we all travel places and need more space.
i'd like to go roomier but not huge
we are considering a chevy equinoz.
it goes against my principles to buy a new car.
My parents are comfortable. They have a pension,three paid off small homes and good savings and good jobs but they are not rich.
For thr record i bought my current car when it was 2 years old on my own in cash. It runs great and i had no problems buyin used. My folks dont ever support me or buy me stuff and this is just a really random gift i do appreciate.

[disneysteve]

I think you need to look at the numbers. Find some used cars that you would like and compare the prices to the new cars. How much would you have to spend out of pocket beyond the gift money in each case? Go with whichever one will cost you the least.

That said, I'd be really annoyed by this offer. Basically, your father is trying to control your decision by posing the deal that way. A gift isn't a gift if it has strings attached. If he wants to give you 5K, that's great. If he wants to give you 10K, that's great too. But whatever he gives you should be yours to spend as you see fit, not as he sees fit, which is what he's doing here.

Still, either way, it is a very nice offer since, of course, he doesn't have to give you anything.

[MonkeyMama]

I think it is a fair offer because the point is a used car wouldn't cost as much. To me it makes sense that it would cost a lot more for a new car.

Why is it against your principles to buy a new car?

At the end of the day, it should just come down to the math. Don't get me wrong - I have never bought a new car, but that was a purely financial decision. If someone gave me $10k towards a car I Would consider it. $5k towards a used car might be more useful.

[tripods68]

My dad offered to give me 5 grand toward a used car and 10 grand toward a new car.
My folks dont ever support me or buy me stuff and this is just a really random gift i do appreciate.

It's a not a tough decision to make if you can make a valid arguments. It's his money and you don't have to agree or take it. I rather have all the newest safety features of a new vehicle....after all you all you have to make up are the difference not the full price it you play it right. Regardless it was very generous offer of your parents to do this and still savings a chunk.

[Max G]

Just off the top of my head, if you are thinking of buying Chevy equinox specifically than $10k for new one is better than $5k for a used one and it's not even close. I haven't looked at car prices recently but its a popular model that's haven't been produced for awhile so the prices for used 2-3 year old car has not fallen too steeply. The difference between used and new might be more than 5k but you also should consider inherent value in buying new car such as less chance of unexpected repair troubles, latest safety features, etc. Also resale value would be higher whenever you decide to get rid of it since your car would be 3 years newer.

[jpg7n16]

What's the market value of your current car?


It sounds like your dad is making an offer. You don't have to accept it, it's just an offer.

What I would do is firmly decide on what car you would like. Chevy Equinox? Something else? Figure that out first. Then imagine he wasn't making the offer at all, what would you do? What amount would you spend? How would you pay for it?

Add $10k to that and see if you can buy it new or not. If yes, get a new one. If no, get the one you would otherwise get and pocket the $5k. Make your current year IRA contribution with it.

[bjl584]

Your Dad's logic seems to be that a new car costs more, so he will give you more if you choose a new car.

But, I'm with Steve in that I don't like gifts that have strings attached. But, like he said, he doesn't have to give you anything at all.

It comes down to what you want and how much you will have to finance (if anything) and how comfortable you are with that.

[LivingAlmostLarge]

I'd be thrilled either way strings or no strings. I'm sure whatever you choose will be the right choice.

Personally I'm a new car fan. I like our new used car we just bought but I still like knowing everything about our car and it just seems to be kept in better condition than most.

Although since we did buy a used car, if we don't have another kid, I can definitely see us buying a new car in 5 years when it's 11 years old and my DH gets a very cool new car at 40. But if we do, then I figure it'll be 8 years old and I'll resell it for a minivan instead and while there will be depreciation it won't be as bad for owning a car for 2 years. But I'm keeping the minivan till it dies.

[snafu]

I suggest you run the numbers as interest rates and trade-in values vary from buying a new car from buying a used car. You also need to factor in insurance rates and operating costs. You will need to evaluate all the extra features for your particular lifestyle. Which will you use regularly, nearly daily and which are just 'toys' that add to the cost. Try to imagine keeping the car 5 years or more with the warranty. I'd be reluctant to buy the new 'model' car because those changes so often result in problems not yet identified. The critics haven't had time to evaluate all the quirks and those popular magazines feature those cars the manufacturer's sponsor as a regular marketing tool.

I'd look at the lists in Consumer's & Lemon Aid to see the repair rate & weaknesses identified in the older version and skim e-pinion type site to see if buyers would buy their car again. It's exciting to buy a new car but it's work too.

[Goldy1]

A new car costs more money but he originally offered me nothing for used and 5k for new. I said thanks but he could tell i was not at al interested in new with only a 5k gift. I did not ask for more and he offered. He was trying to sway me to new and he can be controlling but his gift is very generous.
on a progress note i test drove the chevy equinox today. It was much roomier than a saturn ion. I liked it a lot.
quite frankly i was overwhelmed with all the options and learning about the 4 diferent models which vary in price. I felt like i was in a jetsons spaceship at first. It had a camera showing the view behind me etc and it was level2 only.
my husband will help with that though.
i was disappointed to hear the gm discount i get is a mere $250 off for 2013 models and a full 2 grand for the 2012. I get a $500 rebate on either also.
i think 2012 will be awiser choice but all the cheapest models are gone in the 2 colors i like so we shall see.
im getting a full $7500 bluebook value for my saturn ion. They rated it excellent.
I might buy a second llevel model 2012

[ecoadapt]

I think you need to look at the numbers. Find some used cars that you would like and compare the prices to the new cars. How much would you have to spend out of pocket beyond the gift money in each case? Go with whichever one will cost you the least.

Comparing would be a wise action. Weigh in accurately and pick the one that would cost you lesser.

[YLTL_Dan]

I always use the "20% rule" for buying a car. Basically, you take 20% of your annual income to see how much car you can spend on a car. To factor in the gift amount, I'd do something like this

Let's say your income was $50k

Income adjusted car amount = $10k
Gift = $10k
Trade-in = $7,500
Rebate/Discount = $750

Total = $28,250

This is obviously just a guideline, but if the Equinox was much more than that, I'd start to consider buying a used car (based on the $50k income).

[dawnwes]

Are you planning on more children? We had just a 4 door car until we had our 2nd child. It may not have been ideal, but it was fine.

Our newest car is a 2004, so I really am of the "don't buy if you don't need" option, even if your father is offering you a gift.

ALthough, if all your other funds are funded (emergency, ongoing retirement) and you have the cash to front the rest, I would be apt to say go ahead if you really want to.

[amarowsky]

My roommate's dad offered him a similar offer his was 15k but it HAD to be new. And my friend is too stubborn and will only buy a truck and they're solo expensive new.

Personally if I had your offer and u wanted more space, buy something bigger for as close to 5 grand as possible. If you Dont like it as a backup sell it and bank the cash.

[cypher1]

While I don't know you or your dad, it may sound like a nice offer, but if you take it I wonder if he'd somehow use it against you down the road. Generous offer, but I'd still pass. But then again it may be more of a pride thing for me.