Buying a Used Car?

[mikebanker]

Should I buy a used 2006 Honda Accord instead of a new one? I could afford the new one, but everyone is telling me it's not a good investment. Help.

[mikebanker]

and the new Honda Accord 2010 is an excellent deal too especially with the finance rate.

[disneysteve]

Should I buy a used 2006 Honda Accord instead of a new one? I could afford the new one, but everyone is telling me it's not a good investment.

]and the new Honda Accord 2010 is an excellent deal too especially with the finance rate.

1. A car is not an investment.
2. A new car is never an "excellent deal."

What you should buy and how much you should spend needs to be based on your income, expenses, savings, other debt, etc. It should not be based on what "everyone" is telling you.

How much do you have saved to put toward the car purchase?

[DebbieL]

I wouldn't purchase a new car. Buy one a few years old and let someone else take the hit for the depreciation. A car a few years old should still give you years of use.

[Seeker]

What you should buy and how much you should spend needs to be based on your income, expenses, savings, other debt, etc. It should not be based on what "everyone" is telling you.

The above is completely true.

The below is also true:

Whether to buy a new or used car is purely an emotional call at this point without additional info.

These are the facts with which people should make a logical decision with:

1) You are looking at financing. If it's financed, then it's not "affordable" unless you already have the full cash price, but instead "choose" to finance (essentially the monies are better left where they exist since they produce more $'s than the current costs of the new car would bring).

2) What price are you looking at for the '10? Interest rate? Term?

3) What price are you looking at for the '06?

4) Would the '06 also be "financed"? If yes, then Interest rate and term of loan?

5) Is the '06 certified or does it come with any kind of warranty? Or is it "as-is"?

6) What is the mileage of the '06 and how many miles per year is average for you? Are you mechanically inclined or do you have a friend that could help you check the '06?

7) Compare external costs between the two cars as well (insurance rates, registration costs, etc).

8) What happened to the old car? How old was the old car? How many miles? How often do you replace cars?

---

With all the above in mind, almost always the gently used car is the least costing option. Especially if you are going to "finance"

Whether a person buys new or used, is up to each individual. And there are logical reasons for either.

[Adriansane]

used

Should I buy a used 2006 Honda Accord instead of a new one? I could afford the new one, but everyone is telling me it's not a good investment. Help.

buying a new car is never easy. you get the benefits that come with a new car, but at a price. personaly id buy used. the minute you drive the car off the lot it decreases in value and its resale value plummits in large amounts over the course of the year. compare what the cost of it is used to what it was worth brand new. factor in the mileage. if its from a dealer, does it have a limited warranty? if its from a private party, did they beat the thing? or did they take care of it? go to kbb.com and find out what the value of the car is in it's current condition. hondas are great cars and they last forever. very reliable. but do your homework. ask tons of questions that youre concerned about from whoever you purchase it from... hope i helped a bit

[cypher1]

If you can afford the new one, and thats what you want, then go for it. Overall, after affordability, its preference. Personally I wouldn't buy new on a car, even if its Honda. Out of Accords, the 04-07 generation I prefer most. One thing to keep in mind, at 08+, they upgraded the size/class to full size sedan, from mid. That explains a couple years ago I couldn't figure why a new Accord cost more than the Camry. So higher cost/class, more room though. Due to the size, V6 is definitely preferred over 4cyl, as I heard complaints of it being under powered. As for used, it goes back to others said, for how much of a deal? If its only 2-3 grand saved, than buying new, thats a whole other story.

[disneysteve]

If you can afford a new car, then what is the purpose of buying the old one.

The purpose is to make the most financially intelligent decision and the best use of your money. New cars depreciate sharply the instant you drive them off the dealer's lot. A $25,000 car loses $3,000-$5,000 in value immediately. After 2 years, that 25K car is worth thousands less than that. Let someone else eat that cost. I bought my car 1 year old as a dealer demo. I saved about $5,000 over the cost of a new model. That was over 12 years ago and I'm still driving it. We bought my wife's car 2 years old as a certified pre-owned vehicle. We saved about $8,000 in the process. That was 8 years ago and we are still driving it. Buying new rarely makes sense financially.

But you don't get manufacture warranty (or only a year or two if you're lucky) if you buy a used car. Just make sure you check the carfax if you're gonna buy a used car.

It is easy enough to extend the warranty when buying a used car. When we bought my wife's van, we did that. I think it cost us $600. But buying used saved us about $8,000 so it was well worth it.

[littleroc02us]

A new car is a want and a used car is a need. If you think of it that way, you will save, save, save. I want toys to, but they cost. In my opinion, a used car is a better deal 99% of the time, unless you are a millionaire and can afford to pay for it in cash. A new car will depreciate 60% in like 4 years. My 2007 Mitsubishi Galant that I bought for cash for $9000 was orginally 24k, so I bought it when it was fully depreciated and it still had warranty left on it. What you don't get with a used car is the new smell. I can live without that. Think of it this way to, I could have bought 2 1/2 used cars for the price of a new one if it were to totally brake down, and I could put in 5 engines and 3 tranny's in to equal the cost of a new. Don't do it man, your paying for a toy if you buy new.

[littleroc02us]

New doesn't always mean reliable, I bought a brand new Dodge Ram in 2001 which ended up cost around 28k, (Yes, I was stupid back then)with a warranty and it ended up blowing the tranny 2 times before 60k miles. It was a total piece of junk. I ended up selling it for $5500 in 2006, I almost had to give it away. New doesn't always mean reliable....

[disneysteve]

What you don't get with a used car is the new smell.

And studies have shown that the new car smell is the result of toxins and carcinogens released by all of the plastics used to build the car.

New doesn't always mean reliable

Also true. Our 1996 Dodge Grand Caravan was recalled 4 times in the first 4 years and then was destroyed by a fire caused by a faulty grounding of the gas tank assembly.

[elessar78]

I love Hondas. Since this is a saving forum, you came here for advice about saving money. Buy the used 2006.

I'm in the market now in the same model year range and I would buy an 06, with 100K miles on it. I drive an Accord now that has had major trouble (but there are always outliers, 99% of Hondas are super reliable and even though I baby my car, something went terribly wrong mechanically) and I purchased it new.

There's no reason, other than car-lust, to buy the new 2010. I love the way they look and probably have great specs but there's nothing financially sound that you've presented. If you can make the 2010 cheaper than the 06 then you'd have my blessing.

[disneysteve]

If you can make the 2010 cheaper than the 06 then you'd have my blessing.

Same here. Show me numbers that make the new car the better deal and I'd say go for it.

[greenskeeper]

buy used, pay cash, drive til the wheels fall off.

I do my own maintenance (I know a lot of the driving public can't)

I have never had a car payment, but also have never had a car "newer" than 5 years old.

Currently I drive a 98 Jetta TDI and 97 F250 powerstroke

both are approaching 200k each and show no signs of slowing down.

[Seeker]

Same here. Show me numbers that make the new car the better deal and I'd say go for it.

CHH did in posting #4 above (but that sort of excludes insurances and incidental costs to ownership -- which are more expensive in new autos as well). But, it IS possible to buy new and pay less than the cost of a used car, but it means being flexible and sometimes not getting the same model of car you would have liked.

Honda autos do hold more of their values, and "used" is not always that much cheaper than a new. Though a 4 year difference should see more savings than CHH's comparison btwn a 2 year old Honda versus a new Volk.

The numbers need to be run. Always. For all perspectives. And there are pros and cons to all things.