Should I Buy a New or Used Car

Should you buy a new or used car?

Buying a car is one of the biggest expenses we have during our lifetimes, so wouldn’t it make sense to figure out if buying a new or used car is the best bang for your buck?

In this video I’m going to show you a very simple chart so you understand my philosophy conceptually, and then show you a website with more tangible numbers to back up my new vs used car buying philosophy.

The reason I compared a Toyota Camry to a BMW 5 Series and a Mercedes E-Class was to show you two different sides of the car buying spectrum. I understand that these cars aren't necessarily "competitors" to one another, but it was the best example to show the car depreciation curve.

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My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.

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[WhiteBoardFinance]

*Thanks for watching everybody! What are your thoughts? Do you buy used or new cars?*
Don't forget to sign up for the newsletter in the description above! (There's a nice freebie that comes with it)

[fatherleo]

C'mon. We all knew the answer to this question before we even clicked on the video.

Of course you buy the brand new Lambo on a 20k a year salary.

[billconserva]

I will give my input based off being in the Transportation business most of my life. I sold new and used cars for half my career and then switched to Commercial vehicles, selling cars up to Medium Duty trucks. Also being a mechanic, that has me with with 50 years in this business. I agree mostly with your suggestions and I do NOT buy any vehicle new myself. I bought 4 new cars in my life time and they weren't worth the price. I am almost 70 now, so take my experience and age to heed! As far as a car, I look at a few things up front. The Year, the Mileage, the Condition, those are the parameters. I look to buy a car that is 2 to 3 years old for the most part but don't rule out a 4 year old one. The mileage needs to be in the range of 10K to 24K, nothing with more miles than that. The condition has to be close to "Almost New", allowing for some minors scratches but that's all. The mechanic aspect, I do those checks myself but others need to take the car to an Independent mechanic that they do business with, after all, they will be doing the work, unlike myself. My scenario is that I drive that car about 8K miles a year and I will trade that car back in for another used car. Once I hit about 50 to 70 K miles. So lets say I bought a used car with 15K miles, drove it to 50K, might go a bit longer if I liked the car but otherwise, I am on the hunt for another one. so about 4 to 5 years and I am getting another used car, trading this one in. Why? Because, I avoid all major potential maintenance cost and I only had to perform routine maintenance such as tires, brakes and fluid changes. Where do I find these cars? Can be any where but mostly the are Trade In's on a reputable dealers lot, hardly any from private owners. What car to buy? Hard to say, i do have a preference brand but more so, avoid a Mercedes Benz at all cost! Parts and labor are way to expensive on that car. I prefer U.S. made cars, parts are less and easily obtained. Hope this helps folks. Just my opinion.

[Answers]

I have a 25 year old 1994 LS 400 Lexus. Original engine. Rarely have any maintenance issues with the car. She is made out Valyrian steel from old Valeria.

[roadrunnerb]

I bought my truck 12 years ago new. I think if you are a person that holds on to it for a long time then buying new is not a big deal. But if you trade out every 5 years or less than go used

[smkinrade]

I'll always let someone else take that initial depreciation on a new car, I'll pick one up a few years old. When I was a teenager I was too broke to pay a mechanic and ended up learning how to do the jobs on my own, which now 15+ years later is how I've ended up as an aircraft mechanic.

[Solidsnake]

Rich people can afford a new BMW
But super rich people can afford a used one

[tomyshaw]

I always bought used cars and kept my monthly expenses under 300$/month on average for two vehicles in the last 12 years. I really think it is one of the reasons why I was able to invest massively in real estate.

[paulnathaniels]

Every time I click on one of your videos, you have like 20, 000 more subscribers than you did when I was last watching your videos haha. This is great man. You deserve the views, attention and side money you're making from making these vids you're in. I don't come to your videos from the "suggested" or creepy A.I. algorithms of what "I" want to watch. I intentionally type your name in the search bar every few days because I want to know what you're thinking/interested in/making short, informative videos about. 

Just wanted to say thank you and its great to learn from you. Keep it up!

[Odej]

Imagine this being true right now. A 2-3 year old car with 20-30k miles is 10-15% less than msrp for a brand new car.

[bigpicturethinking]

I don’t know how to describe it, but a car that you own outright just drives different. It feels different. It feels good in a way a financed car can’t.

[Isaac-rkgm]

Buy used and low, drive it til the wheels fall off, rinse and repeat:)

[outdoorsnevada]

I buy slightly used. 3 years old or so with 30-40k miles on it. That's typically where I try to be. Save money on insurance, depreciation was eaten up by previous owner, etc.

[fhram]

I own a 1997 4Runner with 242, 000 miles which I bought 10 years ago. No issues with it, just regular maintenance. I also bought a 2006 Rav4 about five years ago and is now approaching 200k. The only major problems have been the alternator and a/c compressor, other than that, no issues just regular maintenance.

[minivanlinda]

I have 2010 Lexus ES350 with 89, 000 miles. I paid $7, 000 cash in 2019. The reason my house is almost paid for and I'm 36

[הערוץשלאריק]

This is over simplified. There are many other factors that can affect. From my experience, if you buy and hold the car for many years, new is better. If you change cars a lot then go for used. Also consider why you change cars, maybe because it was old in the first place?..
A car is not a house, good brands makes good cars and has good warranty. Usually no repairs if you take care of your new car for at least few years.
Changing a car is a costly process, in money and time. If new car keeps you from 2 changes compered to old, it might be worth the premium.
When your old car breaks, and you are stuck in the middle of the road you will think otherwise. Also dealing with repairs and garages is hell - especially when you never really know the car history. Usually time wasted is not counted in these comperisons, and time is actually the most valuable thing we have, more than money.

[javierst.martien]

I like how I got an advertisement to buy a new car before watching this.... lol

[charleetho]

We just bought a 1 year old dealer service courtesy car from a dealer. It was 41% off MSRP. We are happy.

[BlakeC]

Exactly, that's why I bought a 4-year old Avalon. You still got some luxury too but at a much better price.

[jamie]

I have always bought new since I could afford to do so. I know exactly how they have been driven and maintained. My first new car was 1989 Ford Escort...my grand kid is driving that. Then I bought a 96' Jeep...my kid has that one. I have an 04' Silverado in the back that I use to go to work and chores. My wife is still driving our 07' Accord. My fun vehicle is a 17' Alfa Giulia, and I really want a 2020 Vette. When I didn't have the money or want to go into debt, I bought used. There was always something wrong that showed up after a while and it was never convenient nor cheep to fix. My point is that if you are going to drive a car for 10-20 years, get new. If you want cheep transportation and don't care how it was maintained or driven, buy used.