New VS Used Cars || Don't Make This Costly Mistake!

New Vs Used cars. We compare buying a new car vs buying a used car and explain which one makes more sense. In the past, buying a used car could save you a lot of money. Now that is not always the case. Buying a used car could actually be more costly in the end. If you are planning to buy a car in 2024 and want to avoid buyer's remorse, make sure to watch this video.

Any views or opinions shared in the video are strictly those of the channel, and do not represent the views and opinions of OMVIC. OMVIC does not necessarily endorse the information or any products shared in the video.

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ABOUT ME

With over a decade of experience as a professional car buyer and auto consultant, Shari Prymak has helped thousands of consumers with their car buying needs. Car Help Corner provides honest, objective, consumer advice with all aspects of car buying and car ownership. For more professional advice, check out Car Help Canada, become a member, and subscribe!

[blueline]

Just remember this boys and girls. The question is not IF you are gonna get screwed when you buy a car, it is a question of HOW BADLY you are gonna get screwed.

[TastyJester]

I just bought a 2006 Toyota Highlander hybrid with 105k on it for $8000, clean and has all maintenance records, drives like a dream. My insurance is $81 a month. Do your homework, be patient and you can still find deals when people pass away and their family sells their lightly used vehicle.

[menguardingtheirownwallets]

Here are the numbers: Since the start of the pandemic, cars have been in short supply so they are expensive. The cost of living has shot up so people don't have the money to maintain their old cars. The result is really expensive used cars that have had virtually no maintenance done on them, so they are falling apart. When you buy one of them you will suffer frequent problems that will require expensive repairs. Let's say a new car is $30, 000 while a 6-year used car in today's market is $20, 000. In the past, that used car would have only cost you a much lower $10, 000 (1/3 the price of a new one). That used car will need $3, 000 in 'extra' repairs (deferred maintenance/repairs); things that were never done by the previous owner that should have been done to it during normal usage.
A car usually lasts only 12 years before major repairs (eg: engine & transmission replacement) are required, so if you buy a new car and keep it for 12 years, it will cost you: [ $30, 000 price + $3, 000 maintenance/repairs in first 6 years + $5, 000 maintenance/repairs in last 6 years = total cost of $38, 000.
If buy two used cars, in the past, each one would have cost you $10, 000, and then cost you an additional $5, 000 maintenance/repairs in the last 6 years, for a total 6-year cost of $15, 000 for each used car. Multiply this by 2 cars and you get a total ownership cost of only $30, 000 = a savings of $8, 000 over buying new.
But if you buy two used cars now, each one will cost you $20, 000 to purchase, will break down much more frequently due to lack of maintenance and that fact will then cost you $3, 000 more repairs than usual, and then cost you an additional $5, 000 maintenance/repairs in the last 6 years (the normal cost of maintenance/repairs for the final 6 years of a vehicle), for a total 6-year cost of ownership of: [$20, 000 + $3, 000 deferred repairs + $5, 000 in normal maintenance/repairs] = $28, 000 for each used car. Multiply this by 2 cars and you get a total ownership cost of $56, 000 = which is $18, 000 more expensive than buying a brand new car.

In the past I would always buy a 6-year old Toyota for around $6, 000 and drive it for another 6 years. Now I find the same Toyotas costing $12, 000 but they are already 12 years old, with almost no life left in them. I just don't see the advantage of buying an old piece of expensive junk when it will cost me way more over 12 years to buy multiple old cars compared to buying just one Brand-New expensive car, so for my next car I will be buying brand new instead of used.

[Arzee]

its very helpful, i know this questions always pops out on my mind thank you for nailing the right and honest answer

[Jen_Rand]

Thank you so much for this video! It’s so straight forward and easy to understand.

[timcoleman]

I ran the numbers on a 4 year old Corolla and it was better to buy new in the long run.

[christinad.]

Excellent information for all prospective car buyers to consider. You rearranged my attitude.

[felixcarballo]

Got my mother used car, 2018 Toyota RAV 4 for 14k here in Florida USA, I think got a good deal . Only 70 k miles on it . Thanks for your videos very informative and professional.

[Fredflinstone]

I’m at a used car dealer yesterday in Sacramento, 04/16. Exclusive motor.. The dealer disclosed they only cover 3 months warranty up to $1500, so essentially they are forcing you to buy extensive warranty with ridiculous price and lame coverage, on top of that, they put me to 10% interest for 72 months.. I was forced to stall the deal because the moment you leave the lot without the extensive warranty, its like gambling and praying your car will not breakdown along the way home, not worth the money.. You’ll need to be careful on getting used cars, seems everyone is about money

[YuriiT.]

100% percent agree. When you buy used car it’s always risk, so no reason to risk when you pay a few percent less than new.

[francisbacon]

A lot of car foreclosures should be starting to happen..

[derekhanson]

Right on Shari. Your vid’s so helpful. One of the biggest unknowns with buying used for us is how was the engine broken in and serviced by the original owner of the new vehicle. Buy a car with 30K miles for example and most people don’t simply change their oil often enough. If original owners don’t change at 1000 then at 5000 and then at 10, 000 miles and then every 5000 after that religiously, car motors will burn up way faster torpedoing the life of the car at 100, 000 or less. Transmissions and axle oils need the same attention jus a little less often. We buy new, change oil and filters (air filters too) every 5000 and we drive our cars for decades and into 300, 000 miles or more. This is the best strategy for us and it works.

[DeBee_Meadows]

Totally agree. 👍🏼 I’ve seen the same evidence while shopping on the lot that you describe.

[lsqecvu]

Every used car is a gable. Possibility of Undisclosed Accidents, shoddy repairs, cheated odometers. If I’m parting with $30k it’s going to be on a brand new one with full waranty. People tend to hold on to good cars for awhile so the chance of getting a lemon is higher when buying used as well. Good vid! Been watching u since CP24!

[mrzombier]

Car dealers have learned during the pandemic that they do not have to negotiate, and can even ask over MSRP if they ARTIFICIALLY keep inventory low (or tucked away in offsite). We may not see the return of the old days anymore when you could walk into a Toyota/Honda dealership and haggle for 20 mins before agreeing to a price.

[billyrock]

Excellent advice and video.

Dealers are gouging used cars at astronomical levels and there’s no MSRP on a used vehicle so the dealer can’t be charged or sent to prison for charging above list price by the police. 👮🏿

Hopefully Toyota can catch up with Honda on supply and availability.

🤓 💰

[bergkampmagoo]

Bullseye on the used Honda CRV with CPO . We recently bought a 2019 CRV EX - 40, 0000m, 1 owner who really looked after it . We paid $24, 500 . No payments 👍 We’re both 60, don’t take long road trips, & consider this to be our last car purchase . It’s a lovely car & we’re very happy with it .

[marc_d.]

Thanks for confirming that. To me it seems the better choice to get the full warranty, full car lifetime, a car with exactly the specs I want and no uncertainty about what the previous owner did to the car or what problems he had. It might indeed cost a bit more, but probably not as much as the all say.

[akashpardeshi]

Hi Shari. Thank you for your channel. Best place to get Informed. I was wondering if you could make a video about Nissan Altimas, like the best years to buy, used or new. Thank you once again.

[ulugbeksaipov]

Very useful, helpful video. Thank you 👍😊