Call for “why you should buy a used car” links

Leave yours...

http://www.edmunds.com/advice/buying/articles/47079/article.html

http://www.roadandtravel.com/buyingausedcar/newvsused.htm

http://cars.about.com/od/helpforcarbuyers/a/buyingused.htm

http://www.womentodaymagazine.com/money/newused.html

And more neutrally:

http://www.cars.com/go/advice/Story.jsp?section=buy&subject=new_used&story=nuIntro&referer=advice&aff=national

http://www.msmoney.com/mm/life_purchases/auto/newvsusedfl.htm

I am a major advocate of buying used and have written about this many times on my site. In fact, I just wrote about this topic today. I would love to hear your reasoning for why a new car is a smarter choice.

Hey Ramit,

I just started reading your blog a few weeks ago. Coincidentally, my car needs some hefty (for my budget) work. My aunt wants me to get a "newer" car, while one of my friends gave me a point-by-point explaination on why I should repair instead of replace.

Anyway, this isn't a pro-Used Car site, but it is interesting: http://www.carbuyingtips.com/

Thanks!

Here's something more in-depth, and both-sided:

http://www.cars.com/go/advice/Story.jsp?section=buy&subject=new_used&story=nuIntro&referer=advice

That's not what Suze says...

Link here

She advocates Certified Pre-Owned because they: are cheaper, have low mileage and they have factory warranties.

Dangit.

I went searching for articles to support buying used cars because this is something that I have considered smart for a long while.

I ended up finding an article that actually supports NOT buying a new car: http://www.wired.com/news/business/0,1367,60703,00.html

It's about a guy who sells used cars, and then steals them back -- just so he can sell them again.

http://www.consumerreports.org/cro/cars/buyingleasing/pros-and-cons-of-buying-a-used-car-206.htm

http://auto.consumerguide.com/CPO/index.cfm/act/CPOprosandcons/

Be interesting to hear your thoughts on this.

My advice is at:

save money on used cars

I look forward to seeing what you say!

An unrelated question -- do you know of any resources for comparing Roth IRA funds? I'm looking to invest in one, but am sure there are some resources I'm missing.

Ask Bankrate!

http://www.bankrate.com/brm/auto-advisers/br_newvused.asp

Not everyone views a car as a tool to get from A to B. I realize cars are not smart places to put money, but for me, it's a passion and hobby, and I proudly admit it. I got my BMW new and have put thousands into it ... and it brings joy to every day of my life. My point? Respect that not everyone views a car the same way. Sure, I could have a decade-old Honda, but I'd be miserable. As enthusiasts say, it's not the destination we love, it's the journey. Take the long way home!

This isn't a link, but here are my reasons:

1) Can pay cash.

2) Cheap insurance.

3) Don't have to worry about dings and scratches so much.

Not exactly what you asked for, but this article describes the tradeoffs between new and used.

http://www.fool.com/car/car04.htm?source=PFinAg

I'm a Pundit (literally), so I'll be curious to hear what you have to say tomorrow. I had a good experience (in terms of personal finances and satisfaction) recently buying a slightly used car and planned to try repeating it in the next couple of years.

Used cars are great, but for the same money you can buy a really nice bike.

I went carless almost two years ago and have benefitted in ways I never imagined.

No car insurance, payment, gas, etc. I've lost lots of weight, my coffee habit is reduced since I get woken up by a ride.

Additionally my company pays less on my insurance, I don't spend time dealing with car repairs and maintenance, my grocery bill is reduced because I have to shop more often and can't load up the cart with tons of unnecessary items.

There countless other little things that made it a great move for me, and I think it is something that more people should consider, it really isn't that hard to pull off.

I live in the midwest in a small city that is by no means geared towards bikes. My daily roundtrip commute is eight miles and takes about the same amount of time as in a car.

Yeah, it takes more work and if I need to buy drywall I have to borrow a truck, but that is a small concession.

I am an IT Manager/programmer, I wear a tie at work, and ride there everyday on a track bike.

Interesting topic. I probably also would buy new, mostly because I'm looking for fuel-efficiency and safety first, but I'm curious to hear Ramit's reasoning on this topic.

http://www.daveramsey.com - Dave Ramsey says don't buy a new car unless you are filthy rich because they are too expensive.

I have purchased both used and new cars over the years, but I recently just purchased new. My point of view is if I can own the car for 10 years and average the depreciation over those 10 years, the difference between new and used isn't terribly high. I also like getting the first 5 years of ownership covered under a warranty so my risk for out of pocket expenses isn't too high.

I posted about my latest purchase at: EverybodyLovesYourMoney

I was about to write on this same topic on my Blog. What I can't imagine is how buying new can ever approach the cost of used. I target between $50 and $75/month in pure car costs (purchase price-residual value/months). I own two cars and both are withinn that range. Point me to a new car that is that cheap and I'll buy one.

With used cars, you never know the dealer's profit on the transaction. That depends on the Dealer's Vehicle Cost(DVC). If the dealer stole the car, they could be making a pounder(car lingo for a car deal in which the front end of the deal yields $2,000 or more gross profit.) However, if they stole the car, the profit they made was probably due to them buying the car for less than it is worth. That's what makes great deals great deals: When two people came agree on a number.

On the other hand, when buying new, you can research and buy your car for invoice. Nowadays, most dealerships will gladly print your the vehicle's invoice if you drive their car and show sincere interest in purchasing.(If they won't - find somewhere else to do business!) When buying invoice you know that you are not being taken advantage of by the dealership. If you come to find a deal where they show you a break-even deal or even a loser for them, it is most likely made up from "dealer hold-back," which is an undisclosed gross profit the dealer receives from the manufacturer, and even Edmunds.com can't touch. It is usually very small on cheaper cars($200-500), but can range much higher for the more expensive vehicles($700-$2500+). This is usually where they are making up the loss, however it also could be a unit used solely for advertising or a deal in which the dealer thinks they will make up the loss on the back end of the deal(finance charges, products: gap insurance, warranties, etc..).

The crazy factor that most people never bring up is, "how the hell can manufacturers explain dropping prices on single units by $8-10,000??"(in the form of rebates and incentives.) Sort of makes ya wonder how much the manufacturer is raking in per car deal.

The dealerships will always get blamed, but if you go to trade in a car you bought brand new and it has depreciated DRASTICALLY(> $10,000) in a short amount of time, it is probably due to the manufacturer's alter of the Actual Cash Value of the car by dropping incentives.

Not neccessarily needed info, but kind of nice to know maybe...if you have any car buying questions, please feel free to email me at highgross14@gmail.com.