OT-Best time to buy a used car?
10-08-2002, 08:16 PM
#1
Racer
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OT-Best time to buy a used car?
I've been thinking lately about when is the "best time" to purchase a car? More specifically, how many years/miles after the car is new is the best time? I would define "best" as the time that results in the lowest total operating cost (gas, insurance, maintenance & repairs, depreciation loss).
At one extreme is a brand new car purchased from the dealer. This results in the highest depreciation loss and insurance rates but the lowest maintenance cost (just fluid changes; everything else is under warranty).
At the other extreme is an older high mileage car that is cheap to buy, cheap to insure, has low depreciation loss, but may have questionable reliability resulting in high repair costs.
Extend your thinking beyond P-cars to ordinary vehicles such as Hondas, Toyotas, etc.
At one extreme is a brand new car purchased from the dealer. This results in the highest depreciation loss and insurance rates but the lowest maintenance cost (just fluid changes; everything else is under warranty).
At the other extreme is an older high mileage car that is cheap to buy, cheap to insure, has low depreciation loss, but may have questionable reliability resulting in high repair costs.
Extend your thinking beyond P-cars to ordinary vehicles such as Hondas, Toyotas, etc.
10-08-2002, 08:31 PM
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Three Wheelin'
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I've had pretty good luck with low mileage just off 36 month lease cars with full maintenance & disclosure (damage etc.)
There are some good cars out there. But then I think it is somehow related to the make/warranty/service/basic engineering - I've had pretty good experiences with current model Mercedes (bought 2 used - 36 month lease) and a couple brand new, and IMHO, there wasn't that much difference between any of them in terms of basic reliability new or used.
As an aside, I sold 2 of my leased vehicles (98 BMW 528 Sport and 98 SLK) directly at the lease maturity and the new owners were very happy. They got pristine cars that were maintained by the book, and all repairs and recalls on warranty taken care of. That's one good reason to go after a relatively low mileage off lease car. The BMW and Mercedes dealers always took care of any recall item, warranty claims, etc when the car came in for service.
If we're talking about "savings" I was able to recapture quite a bit of the equity in both leases on resale after 36 months - ended up with about 79% on the BMW and an astounding 92% on my SLK. That was a great sale, but the car only had 12,000 miles on it after 3 years!
<img src="graemlins/yltype.gif" border="0" alt="[typing]" />
There are some good cars out there. But then I think it is somehow related to the make/warranty/service/basic engineering - I've had pretty good experiences with current model Mercedes (bought 2 used - 36 month lease) and a couple brand new, and IMHO, there wasn't that much difference between any of them in terms of basic reliability new or used.
As an aside, I sold 2 of my leased vehicles (98 BMW 528 Sport and 98 SLK) directly at the lease maturity and the new owners were very happy. They got pristine cars that were maintained by the book, and all repairs and recalls on warranty taken care of. That's one good reason to go after a relatively low mileage off lease car. The BMW and Mercedes dealers always took care of any recall item, warranty claims, etc when the car came in for service.
If we're talking about "savings" I was able to recapture quite a bit of the equity in both leases on resale after 36 months - ended up with about 79% on the BMW and an astounding 92% on my SLK. That was a great sale, but the car only had 12,000 miles on it after 3 years!
<img src="graemlins/yltype.gif" border="0" alt="[typing]" />
10-08-2002, 10:03 PM
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I prefer the other end of the equation. I look for 10 year old cars in good condition for under $1000. Pay cash. No monthly payments. No interest.The insurance and taxes are lower.
Avoid the economy cars. They are pretty much used up in ten years. Ford Thunderbirds, Olds Cutlass, Saab, or something nice with options. Plan on spending $300 to $500 for maintanence. Dont expect it to be perfect.Don't buy a car with more than one major problem. Like bad front end, bad exhaust, bald tires, bad brakes etc. It usually takes me a few months of looking to find something. Usually a private sale as dealers need to make money.
I found a nice Aerostar van for $600 because the owner had two other cars and was always loaning it out and getting it back with an empty tank. He just wanted it gone. But first he put on new front tires.
I try to have two vehicles so I don't have to worry if one of my cars dies or if I get a chance to sell one of them for a profit. Most of the time I get two or three years from a car and get back at least half the purchase price when I'm done with them. I figure I spend less than $100 a month for transportation and have my choice of cars to drive. I went over my budget when I bought the Porsche but hey, it's a Porsche and when I get a fender for it I'll have three cars to drive.
BTW The thunderbirds are nice but watch out for rust in the quarter panels and door posts.
Avoid the economy cars. They are pretty much used up in ten years. Ford Thunderbirds, Olds Cutlass, Saab, or something nice with options. Plan on spending $300 to $500 for maintanence. Dont expect it to be perfect.Don't buy a car with more than one major problem. Like bad front end, bad exhaust, bald tires, bad brakes etc. It usually takes me a few months of looking to find something. Usually a private sale as dealers need to make money.
I found a nice Aerostar van for $600 because the owner had two other cars and was always loaning it out and getting it back with an empty tank. He just wanted it gone. But first he put on new front tires.
I try to have two vehicles so I don't have to worry if one of my cars dies or if I get a chance to sell one of them for a profit. Most of the time I get two or three years from a car and get back at least half the purchase price when I'm done with them. I figure I spend less than $100 a month for transportation and have my choice of cars to drive. I went over my budget when I bought the Porsche but hey, it's a Porsche and when I get a fender for it I'll have three cars to drive.
BTW The thunderbirds are nice but watch out for rust in the quarter panels and door posts.
