Should You Buy a New or Used Car

[whoeverwhoever]

After watching this video, i decided to get a horse.

[adamsteele]

Answer: buy Scotty Kilmer's 1994 Toyota Celica.

[chrisnotap]

Except for Toyota and Honda. Buy it at 100, 000 Km (60, 000 miles) and drive it to 400, 000km (240, 000 miles) and beyond for minimal cost.

[JattAnmoli]

What repair costs? My 20 year old Toyota repairs itself.

[canadude]

This is great advice and he' s right. I am on my fourth car and always bought in the "sweet spot".
Car #1: 5 years old. 54, 000kms drove it for 10 years. Sold it with 225, 000kms
Car #2: 4 years old. 80, 000kms, drove for 1.5 years. Sold it with 110, 000kms for only a little bit lower than I paid for .
Car #3: 3 years old. 44, 000kms, drove for 9 years. Sold it with 313, 000kms
Car #4 (current): 5 years old. 50, 000kms, will keep it for about 6 -8 years depending on repair $$..

[NewYorker]

This video was true and has always been true, up until the last few years. Now use cars are almost as expensive as new cars, and it doesn't make sense to buy a used one in many cases

[jclair]

I think your repair cost line is a bit deceiving, the repair costs of a 10yr old car likely will not equal the cost of a new car.

[mcconn]

Great video. I have done this for 5 decades and totally agree with your basic idea. From my experience, however, I would suggest that cars are significantly better now and I have moved my replacement time to the 150K range. I actually do not base it on miles. I base it on maintenance costs. I hate buying cars so I replace when maintenance is likely to be more than the car value...one man's opinion.

[paulmarkferanil]

Life after WWE. Thank you Heartbreak Kid

[GordonBurnsVideo]

OK - I used to work as an analyst at the leading car lease company in the UK. I was asked to establish the best time to sell off the company cars. Turned out the best advice I could offer was to NOT buy new cars but buy cars about 2-3 years old, and keep them to about the same time frame as advised here. Same answer. Of course no salesman or manager is going to want a used car, so the advice though economically sound is not viable in the scenario. But for the rest of us it could well be the best advice. Buying an older car (say 6 to 10 years old) with low mileage and good service record is probably the safest and most economical route.

[padistedor]

You knew the answer before you clicked on this video, but you watched it anyway.

I'm not buying a car. I just clicked the vid to get a better look at this guys hair.

[senorbautista]

Great advice!
Thank you Shawn Michaels.

[onefastr]

For some reason I want to listen to Michael Bolton after watching this.

[baunakieyethoda]

Disclaimer: I am not an expert. My comment (below) is an opinion at best.

Firstly, the mileage say nothing about vehicle condition. A low mileage vehicle may have been through hell. Secondly, some vehicles are inherently made to develop problems quickly. Example are Volk Wagon & Audi (door knobs & AC problems), Bmw (techno-gig issues). These cars need a technician on stand by at 50, 000 mile. Other cars (made by Toyota or Honda) are mostly good to go at 50, 000 miles (except some sporty or techno models or some really malhandled cars). I have no personal experience with American cars. This is my opinion. All cars have pros & cons & hidden secrets.

Car Model does not matter to car lovers. The handler can be a junky or perhaps a persnickety old car lover. You have to evaluate each vehicle like a potential profitable business deal (new or old car, both have hidden facts - to consider carefully).

Yes it's best to buy a car when its market value is not hyped - usually the 2-10 years old models but it's even better to buy a vehicle in the year when the market price history showes stability and to sell it before the market value starts to fall again - unless you are not a big fan of car model, then you can keep your vehicle çar until it becomes a vintage model.

Yes it's good to buy a car with a good resale value and to sell it before it market value begins to crash again. Kelly blue book gives a rough guide as to when a vehicle's market price crashes and at what rate. Buy & sell the models with the most stable prices over 5-10 year windows - this will minimize your investment loss. Some cars lose thousands of dollars in the 1st 2 years... others lose market value more gradually. It's a good idea to do market research on the index car before purchase.

Cars with low resale value experience most market crash at 1-2 years like Mercedes or Tesla.

Cars with high resale value are still expensive at 2 to 4 years of age. Example include Honda Civics & Toyota Corollas.

If you wish to buy a car like a benz, the best time is 2 years of age and make sure not to keep the car for longer than 2 years. After 2-4 years, the vehicle has lost its market value by 10s of thousands of dollars. Or you can wait until the year when the market price history for the index car showes stability. Some models will sell horribly but as I said, resale value research on index cars is critical to save money if you wish to keep a newer model or resell the car & protect yourself from depreciation costs or maintenance bills.

If you want to buy a toyota or a Honda to keep until scraped, a 7-10 year old certified car, sold by a single careful owner is mostly the best deal for the ticketed price. The car price at this time is usually stable & reasonable.

On the other hand, Re-Selling is not always the goal. A good car that is well maintained does not develop maintenance issues. It does not disappoint you anywhere. The problem is that most people slack off in the maintenance aspect of the game.

If you want to re-sell a toyota or a honda, buy it at 4-5 years of age, use it for 1-3 years, and then exchange it, upgrade it for another dealer certified 4-5 year old Toyota or Honda. This way you do not lose a lot of money to depreciation or repairs.

But honestly speaking, if you are not a car person, a Honda or a Toyota will last longer without major repairs (with some sporty or techno model exceptions).

Yes it's a good idea to rent a car for long drives but it is a better idea to save & use the $250 rental for major vehicle maintenance costs. Drive 40 -50 miles and let the car rest like a horse... it's going to love you & live longer than you would expect.

Buy a compact sedan instead of a giant megalodon. What's the point of a car? Guzzling gas? Or giving up your savings to insurance companies? Or taking you & your small family safely & comfortably from point A & point B?

Instead of turning on the ac in the summer, avoid driving between 11 am & 5 pm... you will save 20% on gas. Avoid a V6 or a V8 non-compact car engine for some extra savings... every dollar adds up in the end.

Avoid hard accelerations & hard decelerations... these bad habits generate most of the major maintenance costs - transmisdion, tires, brakes, fuel system cleaning, oil health.

Some cars with have a higher insurance bill ab-initio.

Some cars will have higher maintenance costs sooner at 4-5 years of age because of rough usage or techno feature malfunction or just inherent durability issue.

I agree that most cars for personal use (until scraped) are purchased best at 10 to 12 years of age.

Meanwhile, most cars for resale are best purchased at 4-6 years of age and sold off at 8 -10 years if age. The 4-6 year to 8-10 year tine frames are best for ensuring that one does not losing a lot of money in market depreciation.

Repair costs??? I don't view these as losses. Maintenance costs extends the life of the vehicle that is running on the road for you. It's money well (invested &) spent. But if you want to eventually sell the car then market depreciation is a factor that you should alway consider. Buy the car when it is 4-5 years old, keep a maintenance log & sell it back to a dealership (or a private buyer) before it is 8-10 years old.

Buy car & wheel cover, dont wreck the car paint or rotors in the sun or rain. Don't accelerate or decelerate strongly. Keep the interior protected from kids and pets and odors...Stop smoking in your car - this is a given; maintenance is neccessary to keep the market value of your car.

Don't wreck your car if you want to sell it. Do your maintenance regularly. Decide to either sell the car at 8 -10 years or to keep it till it's good for scrape dealers.

If you spend $3000 a year on car maintenance every year, save $250 a month for pending costs, I think your car is going to stay new even after your odometer stops working.

Buy an old used $ 5000- $7, 000 certified Honda or Toyota; make payment full in cash or credit and then save or budget to spend $1500 - 3000 each year on major repairs. Home to office runs does not ruin a car & chances are that this car savings fund will transform your car into a better condition over time, compared to it's condition at purchase.

Keep a good mechanic, a good car towing service and emergency road side assistance number.

Notice, you are not buying a car for 17, 000 or 25, 000, you are buying a car for $5000. This gives you a lot of wiggle room spread out over the next 10-15 years. Just tske good care of your vehicle & be wise in your choices of car spendings. Do not buy those spinner wheels or deafening sound system and save for a major repair.

Live a modest life and learn to appreciate your old used rickety car. It goes month after month without complaining. Save cash to pay it back for this unconditional love & faithful service. Don't pimp it, save to fix it.

Old is gold. Keep your car in health & happy with monthly car maintenance savings. It's going to be reliable, by your side always, & never at the junk yard - your great grandkids will enjoy it as an expensive vintage ride!

If you like newer models, just take care of your car, buy it when the market price is stable & sell it before it's market price begins to crash

[creatingmind]

I totally agree with this however...
Always check year end manufacturer rebates and dealership end of year inventory clean out incentives. Ive seen brand new Subarus off the lot go for the same price as a 2 year old sweet spot models with over 30, 000 miles.

[jrkchckn]

A few years ago, we (wife and I) made it a goal to break the leasing cycle. We saved cash and essentially did what the gentleman is talking about. I recently purchased a used (one owner, garaged, private sale) 2014 bmw x1 with 64k miles for 13.5k, cash. I do my own maintenance as much as I can. It’s a great feeling having no car payment and just maintaining as I go. My wife went with a used 2016 VW tiguan which I had fun negotiating on, for 12.5k. We can afford really expensive cars, but cars are such a poor place to put your money into if you are trying to build wealth.

[steveknight]

Great advice. I’m a handy guy and can do regular maintenance ; brakes, oil change etc. But there comes a point where strange things start to happen. Most cars loose 40% of their value after 3 to 4 years but are very reliable to 12 to 15 years. So you get 8 years of use at a 60% percent residual value. The real cost is depreciation plus maintenance. And in that sweet spot you have the goldilocks scenario.

[bigdude]

The real question is should you or shouldn't you rock a mullet in 2018?

[KidMillions]

The best advice is to learn car maintenance yourself. It's easy just from youtube. Your local car mechanic is not a genius.