You Should NEVER Buy A New Car! 

I always buy new cars for myself, my wife, and my two grown up kids, while they’re getting started in life. Why? They’re trouble free for many more years than used cars, they come with the latest safety features and continuously improving tech, financing is almost always more attractive on new vs used although I usually just pay for the car without a loan. I hate making payments and paying interest. I take care of and maintain my own cars religiously. I love that new car smell and I take great satisfaction in knowing that no one else has owned and possibly abused the car before me. I have no regrets. Yes, it may be financially astute to buy a gently used depreciated car, but everything isn’t about saving a buck.

The "experts" are looking at this all wrong. In every household budget there should be a line item for "Personal Transportation Expense". Regardless of whether you own, lease, or rent, everyone WILL incur transportation expenses. Everyone! Your objective is to minimize the expense (so you'll have more to save and invest). Some used cars will cost more to acquire and maintain than an inexpensive leased or purchased new economy car. You have to put your emotions aside and do the math. Upfront costs, plus yearly payments, plus fuel, insurance, and maintenance. Then account for residual value after 3 or 5 years in order to do an apples to apples comparison. You'll be shocked at how much you spend on transportation.

While I always buy new, I drive them 12-14 years so I go stretches of 7-9 years with no car payment. I'm 56 and have only bought 3 cars in my life. I have lots of friends who buy new cars every 3-4 years and I just dont understand wanting to live with that never-ending car payment.

If you are going to drive it for 15-20 years until it is ready for the junk yard, I'd rather buy new and know it has been serviced correctly.

A car only depreciates on paper. If you keep your cars for a long time, it really doesn't matter. We buy new and keep for 10+ years.

I think generally used Cars definitely saves money, even used clothes are cheaper however most people don’t try to buy used clothes all the time. I for one buy a quality car, research the model throughly to ensure longevity. I have bought 3 new cars 1995 Nissan 200k plus miles 12 year of use. Next was 2008 Lexus gs350 which I still own 255k miles currently. If you keep your new car long enough it will even out. Key is keeping it long long time and buying a bullet proof car.

Love the Rav4, the maintenance is low, I have bought 3 of them new and always used the Toyota financing, 0.9, 1.9, and 3.9 are common if you just wait until a sale. All 3 have been from different dealers. I set my price and don't budge. Great video Erin.

Context matters! We purchased a new vehicle in early 2022 because it was a) less expensive than similar used vehicles and b) the manufacturer offered financing about 1/3 that of what we could get for a used vehicle.

Hi Erin, I have a 2010 Honda Civic that i bought brand new and I paid cash for it. I keep up with regular maintenance on it and have never had any major issues with it. And it gets great gas mileage. It is soo nice not having a car payment. Hope you have a blessed week 😊

Erin: "I will likely buy a new vehicle. Why? Because I want to...." . Yep! I couldn't agree more. For those who saved and have no debt, why not? A new car usually means less repairs. And if you are good at saving and are meeting your financial goals, live life! Also, I think females that don't like to work on cars....yeah...a new car can be a great investment in some situations. I certainly don't want my wife stranded on the road.

You're exactly right about everything you said. I have 2 Lexus vehicles and 1 BMW Z4 roadster in my garage. All were paid for in cash, and only one was purchased new. That said, I just bought a brand new 2024 Toyota Corolla for my sister. There were some 2023 models with 20-30 thousand miles that were priced higher than the brand new one I just bought. Seriously, in this case, buying used would have been utterly stupid.

Pre-Covid the gap between used and new was cavernous. You could get a 4 year old car with 38k miles on it for half the price of new. It was a no brainer for years. The market changed a lot and now its a harder decision.

Depending on where you are reasonably priced, gently used vehicles that meet your specific needs might take enough time and effort to find that the price premium for a new car is worth it to have what you need when you need it. You also need to have a mechanic you trust check out any used car before you buy if you or someone you know isn't knowledgeable in this area and there's still always the chance it will be a problem that needs expensive fixes anyway. And if you want a car with a battery (hybrid/EV) the older it is the closer it is to needing an expensive replacement. There are plenty of cons to used cars that financial advice people ignore by only focusing on the sticker price of new cars.

Another thing to keep in mind is interest rate. I can't believe that some people buy cars with interest rates over 10% these days. That's a horrible rip-off to pay so much interest. I personally buy new cars and keep them for as long as they'll last for piece of mind, knowing maintenance is done regularly and what has happened to that car from day one. I have some friends who bought cars on auctions that had taken a swim in a lake/river and despite being dried off when sold, there were major issues that came back to haunt them and they went through multiple old car purchases in a matter of about 2-3 years. There was no reliability or piece of mind there. I learned to drive on my mom's Toyota Corolla 2001, which my mom bought brand new. When I got my first full time job, I bought my first official car, a Toyota Prius 2013, with financing at 0% interest after negotiating on the purchase price. By 2021, my mom's 20 year old car was no longer reliable as it kept breaking down and we had to replace and fix one thing after another. So we sold the Corolla and bought a new Toyota Prius 2021. So now we still have the 9.5 year old Prius and the 2 year old Prius and plan to use them as long as possible. Could I have bought a cheaper used car each time? Sure... But reliability is worth it to us since we use cars for as long as they'll run in the end. I never understood why some folks were calculating expenses of new vs. used cars for just 5-7 years. It shocked me to find out that on average, folks who buy a new car only keep it for around 7 years before getting another brand new car to replace it. That makes no sense to me. But buying a new, pretty cheap and reliable car, and keeping it for decades can easily win out from reliability perspective and having less stress over the duration of the time keeping the car. Even if you can save a couple dollars buying used doesn't always win out in my book depending on context.

We found we spend similar or less buying new as we keep cars 15+ years, knowing they’re driven easy and well maintained. Plus many new cars come with 1-2 years free maintenance. We also choose cash or interest free loans. Peace - John

Another factor is registration taxes. Here in Minnesota, we pay ~$60 a year minimum per vehicle. Ten year old vehicles are considered fully depreciated and are at that minimum amount. Brand new will cost you the most. A new Rav 4 will likely cost $400+ than a 10 year old one, or maybe $200 for a 5 year old one. A vehicle that cost $80k may be closer to $1,000 more than a 10 year old vehicle. Buying older in Minnesota saves on annual registration taxes.

I totaled my forester after hitting a deer. I found 2 1/2 year old Subarus for sale at only about $4000 less than a new one that had a 3 year warranty. I bought the new one. I did avoid all of the traps that the seller was trying to push on to me. Tire protection, paint warranty, serius radio, extended warrantee, and extra protective floor mats. All the extras would have cost me over $6000 more. Then after negation was over, I told the dealer I was paying cash. The salesman and the sales manager did not like it. The sales manager even said that I must not care about the appearance if the car because I should but the warranties. I said that I take care of my cars, but I enjoy keeping my hard earned money also.

Hi Erin. You had me worried for a minute that you were going to completely agree with Suze Orman. I have bought a few new vehicles in my life. Sometimes you just want something new that no one else has owned or abused. I bought my Chevy 10 years ago new and it has been flawless. I have no plans to sell it. Of course everyone has their brand preferences and experiences, but I love my car.

I've mostly bought used cars in the past. I put a lot of miles on my cars. I drive my cars until the wheels fall off or the engine goes. I needed a replacement vehicle a little over a year ago. Given the weird state of auto sales, I bought a new Toyota RAV4. It was only $1,000 more than the used ones I could find and they had 20k to 30k miles on them. I did finance it, but put 50% down. I dont need lots of bells and whistles. The more add ons you get the more things could break down and need to be repaired. Maintenance costs are potentially higher the more bling you buy. So, as long as the vehicle has air conditioning, heat, blue tooth, and a working radio....I'm good. My new RAV4 was a basic stripped down model. I'm very happy with it.

Great video! I just purchased a used car. It was $10k off new, had 4000 miles, and has an extended warranty longer than a new car since it was “Ford Certified”. Since this car was only owned for five months before it was traded in, it means I got a longer warranty than possible had I bought new. I did search the entire United States, and was lucky to find one that matched all the features I wanted only a six hour drive from where I live. I have found two minor scuffs to the paint, but other than that you couldn’t tell it isn’t a brand new vehicle.

I bought a car in 2023, brand new, completely with savings. I plan to keep it for as long as possible. Why new'? Because used cars have been so expensive

I really appreciated this video. I have seen so many financial guru's guidelines on car payments that are really unrealistic. I bought a new Honda in 2016 and it's still going strong. At the time, I could pay it off in 3 years and have had a lot of years with a very reliable car and no monthly payment. I figure if I'm going to drive it for a long time (and I intend to keep this for a long time!) then the "hit" you take from the new car is not as big of a deal. And then I don't have to worry about what the previous owner did (or didn't do).

This is a great video and I agree with a lot of what you said. In general, a car is a terrible investment, but that doesn't mean you shouldn't buy a new car. We buy new cars for a few reasons: We like knowing we are the only ones who have ever driven the car, and we get to enjoy all of the "good" miles and less maintenance for the first several years. Also, similar to you, we hold onto them for a long time which allows us to have many years without having a car payment, which we can use to invest. In my opinion, what is hurting many people who are buying cars now, whether new or used, is these long-term loans (7 or even 8 years) people are using in an attempt to afford cars they probably shouldn't buy. Then, after a couple of years they are upside down and can't sell the car for close to what they owe. Buy new and hold forever has worked well for us.

As a muscular, bald dude I get a lot of weird looks driving around a used (but awesome) 2011 Prius. It’s amazing. I would like to buy a new car (RAV4 actually, Toyota gang strong) several years from now. A lot of dealerships offer free maintenance by mileage or a set amount of years. Essentially having free maintenance is a huge bonus and lowers the cost of ownership.

Bought a Prius in 2010 during the “runaway Prius scare” and in the middle of the Great Recession with 3 years of free dealer service and cash factory credit, drove it for 12 years as the sole owner and finally sold it in 2022 when gas price was high and use car price was through the roof. The depreciation averages just $1000/year.

Never let any 1 expense take a huge chunk of your income. It's all about the margin you have after paying all of your expenses.

Great video and perspective. I just recently bought a brand-new vehicle. My personal car was 25 years old, and it ran great but electronically, was falling apart. To pass inspection, had to replace the headlamps and the parts alone, was $1,500 each. Secondly, I was concerned if the safety features - airbags, etc, still worked. My wife's car is a 2008 Jeep Grand Cherokee Overland. She bought it slightly used (dealer demo). Her car does have some issues here and there. We decided to buy new since we keep our cars for a long period and want something reliable since we like to take road trips. In the end, I got a 2024 Subaru Outback Touring XT. Taking into account for inflation, it was $1,000 (after discounts) more than my wife's 2008 Jeep Grand Cherokee. To be fair, we got a good deal with the Jeep since it was a demo model and I think - I could be wrong, Jeep was having financial problems at the time and were eager to sell. I could have paid cash but 1) it would have put a good dent in my savings, 2) the interest rate for the loan was less than the interest rate I made in my savings account and 3) the car loan interest rate was WAY less than my return on my brokerage account (over 20% difference). So, I decided to take a loan since it would cost me more if I paid in cash. One thing I didn't expect, was insurance. For the required insurance, my new car insurance is 2% less than my wife's 2008 Jeep and 10% less than my 25-year-old (1999) car.

I love your thoughts on this subject. You always seem to hit all the important points to consider. I'm a fan of the used camp but I did purchase a brand new car once. I kept it for over 12 years and close to 300,000 miles on it. Looking back I should have held on to it. It went through several members of my family and it always performed and was reliable.

I had a neighbor who would always buy a new truck every few years, and when I asked him why, he said it was because for his work he had to do a lot of fixing machines, and he wanted his truck not to be something he had to worry about. It may have been more expensive, but it was worth it to him. Also, he took really good care of his truck to sell it with a lot of its initial value

I've done either, depending on my need/wants. Biggest saver on cars getting older is learning to recognize when something is a want, instead of a need. Sometimes still go the want way though. But sold an expensive to keep running car 4 years ago, bought a cheap to keep running car while saving up for paying cash for my next planned new car purchase.

I fully agree with the "buy new but drive it until the wheels fall off" take. I kept my previous car (a 2004 Rav4) from 2004 - 2018, at which point I had to replace it because I got rear ended and my insurance company declared it totaled since it was cheaper than having it repaired.

I had only one used car, a 2001 civic that I drove from 2013 to 2016. It was an okay experience. It got the job done. Later, I sold that and bought a 2016 Honda accord. It was fully paid off by 2018. My wife drives that now, and that car will probably run for another 7 years. Buying new is good as long as you keep it long-term and amortize the cost in the long-term.

I buy new cars every time because I can and it makes me feel better about reliability. My first two cars were used and always seemed to have to get fixed every few months for something small that added up. Used cars you never know how they were maintained by the original owner and if there were any issues before you got it (car dealers and individuals will not tell the entire truth). My new cars have gone at least 5 years before I needed to fix anything outside of warranties and wear/tear. Also, I bought my last two new cars at 0% APR and didn't put anything down because of that. In today's market when the rates are over 6%, then that down payment makes a difference. I think when people say never buy new, they are talking about the actual same brand/model vehicle. If you are looking at any vehicle at a price point, then you almost always can go new. Unless your budget is something small like $10k.

Covid has changed the standard depreciation curve. Before covid, the only good reason to buy new was if you had enough money that you just didn't care about depreciation. New cars depreciated too fast to be considered a smart money move. Today (post covid) it really depends. I agree. If your in the market for a Rav4, its better to buy new, but if your looking at a jeep Cherokee, used is the better option. And on top of that, why would anyone buy the used Cherokee when its the same price as a Rav4 I don't understand either. The decision now greatly depends on which model your buying. I was similarly in the market for a used sedan. It was so hard to find a reliable car at the price we wanted that I nearly did what you suggested and bought a new model simply because I could buy new cheaper than used. Luckily I found a 9 year old malibu with ridiculously low miles that just made more sense to buy, but cars like that are HARD to find.

This is a social technological issue. For starters I have NEVER owned a new car. Bought used, paid cash, only bought liability insurance. Here is the problem: Years ago I had a conversation with a man who told me he "Loved Cars". I asked him what a cam shaft was. He didn't know. This guy was carrying an Automobile Magazine around. I pointed at a picture of a part in his magazine and asked him what it was. He said "cam shaft" in a questioning voice. I was pointing at a crank shaft. People who "Love Cars" don't know how they work!? What about all of the technologies in this society? Try finding an economist who says anything about Planned Obsolescence. What is the annual depreciation of automobiles in the US since Sputnik? Ask an economist.

I buy new, and keep them forever. I have a 2003 Subaru Outback for leisure (camping, cycling, kayaking, backpacking, snow activities, etc.). It only has 91,000 miles. I also have a 2006 Toyota Avalon for my daily driver, and it has 90,000 miles. Both bought brand new.

The video felt like a justification on why you should buy a new car. Yes, the new Rav is cheaper than a used Jeep but a few year old Rav is cheaper than the new Rav and basically the same car. The depreciation of 2-3 years can be quite significant and that money would be better served in something else like an investment. Just because you can afford to do something doesn't make it a good financial decision. Buying a brand new car is 100% a status symbol or a display of financial ignorance or immaturity.

There's one thing I always consider when buying a vehicle, if it's UAW made, I don't buy it.

I've bought three new cars in my life (1987 Thunderbird, 1991 Ford Ranger, 1999 F150) paid them off early and had many years with no car payments. Having money to invest was fabulous! My F150 died two days after losing my job to layoffs in 2015, so had to buy used, which I've had now for nine years. In the first year, I had $8000 in repairs (motor and transmission) and just recently $2500 more in repairs. But these repairs are still less than a monthly payment in the long run. I'm hoping my next vehicle can be new again, but I currently love my used 2007 SUV.

Hi Erin great analysis and as usual it depends on your situation whether to buy new or gently used. On the 20/4/10 slide (7:49) last bullet has misspelled word.

I bought an equinox in 19 for 14k cash. Just hit 120k miles. Great investment.

Great job Erin another wonderful video I love “Finance is Personal“ now at 60 and we’ve purchased two new cars ever, we have purchased mostly used. Ran them for about 10 years and well over 100,000 miles. we’ve had a lot of success with Hondas and Acura‘s.

The issue here is those depreciation schedules are not always accurate. I got my last car for 5k less than MSRP after tax. That shows a few years later when it's only worth 20% less...but I really only lost a couple percent.

Great video Erin. I agree with you completely. The last time I purchased a used vehicle was 1973. I have only purchased new vehicles since 1982, which was also the last time I had a car loan. I am also like you, while I only purchase new vehicles, I keep them for at least 12 years. In 2022, I purchased a Lexus SUV (GX 460). Granted it cost $75,000, but I paid cash for it and it only cost me about 1% of my net worth. Seeing I am almost 68 years old, this will probably be the last vehicle I ever own.

I've bought new for the majority of the cars I've owned in my life. Looking back though, buying new rather than used was easily not the worst aspect of my car purchase decisions. Usually that has been exceeding what should have been my budget, too small down payments, and financing for too long. I'm on a better track now - my car has been paid off for several years and as of this June I'll have owned it for 10 years. Fortunately I'm in a position now where I'm only averaging about 2K-3K miles on it annually, and I am planning to hold on to it at least until I've reached some other financial goals, or if the car gets to a point where I need to replace it. But I've had nearly zero problems with it so it's only been regular maintenance costs for quite some time now.

We buy new with the intent to drive for at least 10 years. Paying off any financing ASAP! This way I know the vehicles weren't driven hard and I have complete control over maintenance. Honda Civic and Toyota Rav4, so 10 years is the absolute minimum.

I’ve always bought new just because I don’t want to worry about problems. As a single person it’s a pain when you have car problems. However, almost all of my vehicles have been pretty modest. The last one was a Kia Soul for about $18k before taxes in 2021. That was a great deal I doubt I’ll ever find again.

If you have a business you can lease (or buy) new cars, legitimately use them for business, and make them a partially deductible business expense. Otherwise a gently used car is best.

the problem is people dont take care of cars properly when they buy them new. they dont keep up with oil changes and they dont do anything to prevent rust (i live in NYS). i change my oil at 4K miles and spray them with fluid film yearly. i have a subaru crosstrek i bought brand new, the only new car i ever bought. i have sprayed it annually. when i bought it, the used car market was so screwed up a car that was 3-4 years old and had 40K miles on it was only selling for a couple less then brand new. historically this was not the case, nothing is normal anymore. i owe 18K on the car and it's blue book is 22K. i dont regret my purchase, also i know the car is taken care of properly..... it will have a longer service life

It's important to note that a new car has much higher insurance and registration costs. That could nearly double the monthly cost of car ownership over finance payment alone.

Engagement for Erin, keep up the great work.

I've had both used (my money) and new (company cars). In either case, it's important to avoid new models. In the first year of production, car companies find and fix problems. The second year of production is good, but the third year is better. I had a first year Renault Scenic II that was constantly having problems. With the transition to EV's and increased government regulation, we could see a drop in used ICE vehicle prices. Paris is already banning older ICE vehicles.

All used cars were formerly test vehicles. The first/second owner finds the factory defects and weak points in the car and pays dearly for the priviledge. I always buy about 10 year old vehicles. My current is 2009 Nissan which I paid $3K cash. In the 7 years since, my only expenses have been tax, license, gas, oil changes, and $300 for new alternator. It needs a NEWER right front tire now and that will be about $60 from You-Pull-It. I could push it off a cliff right now and be ahead but I can sell it to You-Pull-It.($500-$600? maybe). I don't insure the car. I paid cash because it avoids bank insurance requirements, I only buy liability insurance ($58/month) for myself which I don't consider a car expense. If I short of $$ when buying, I can use my emergency fund to buy but I have never had to resort to the EF.

The only thing that matters is total cost of vehicle, fuel and maintenance divided by the months of ownership. As such, the numbers rely a lot on the car you buy, interest rates and it's not as simple as "never buy new".

I never thought I'd stoop to taking financial advice from someone who drives a jeep... but I'll admit. This was an objectively good video.

Today my 2006 BMW wouldn’t start (dead battery, it’s cold here). I was in a hurry because I needed to bring the kids to school. So I unplugged my 1991 from the trickle charger, which hasn’t been started in 8 months, it of course started right up. Brought the kids to school no problem. Put the other car on a charger, it’ll be fine in a few hours. Both cars have high miles but are not money pits. I’ve had the 91 for over 20 years and the 2006 for 10! The 2006 biggest costs have been gas, insurance, and tires, in that order. Way less than any car payment! I’d never want to buy any vehicle, new or used with a loan.

I always now pay cash for used vehicles. The last new car I bought was the last one I will buy. I bought it new and kept it for 20 years until it wouldn't go in reverse and then drove it for a few more years.

Unfortunately if we all decide not to buy a new car, nobody will have a car. Someone has to buy a car before it can be used. Someone has to get that sucker punch regardless.

Agree 100% with you here. I always buy new. The last new car we bought was a 2018 Ford Escape for my wife. Sticker was about $28,000. Since both our Dad's retired from Ford, we got the employee discount, which knocked about $2,000 off. On top of that, Ford was offering $6500 in rebates, plus 0% financing! (I get employing pricing for Stellantis vehicles. Jeep, Dodge, Ram, etc since I retired from there) so, we paid $19,500 for the $28,000 vehicle, and while I rarely finance a car, we took out a 0% loan for four years for most of that amount. We are heading back into that time, out of covid, where dealerships are filling with cars, and we are starting to see rebates and finance deals again. My youngest daughter got rear ended in her brand new car she had for 15 months, and it was totaled. Insurance gave her almost the price she paid for it, as those models are still in demand. She had to take a small loan, for what she still had outstanding on the old, and Chevy was offering a special 2.1% interest rate. So, along with everyrhing you said, one can't discount rhe benefit of manufacturing deals, and having a full warranty on your car!

If you buy a new car then it means you have to work couple of years more to retire.

There's something to be said for that "high" of driving that brand new car especially if you buy it in cash.

I go new, paid cash. Actually, I got a loan out and paid it off after 1 payment because they gave a $750 rebate with a loan. Figured $750 was worth the extra hour it took to get the loan. I don’t want to buy someone else’s problems. Did they change the oil, do maintenance, etc? After 5 yrs there is wear and tear and 60,000+ miles of travel. I want low repair costs, few repairs and easy availability of parts. Definitely slow depreciation. I drive a car 12-16yrs. I like the Toyota Camry as all family members are tall (comfortable). The depreciation is low and slow. There is a good record for few repairs and easy availability of parts. The insurance costs are reasonable.

This is another example of a decision that's heavily but not purely financial. And by that I don't mean wanting a fancy car, I mean considering things like the value you place on a warranty, your ability to find a good used car, your ability to negotiate prices, and your timeline. It might be the objectively better financially to buy a /good/ used car, but if you buy a lemon, can't do any work yourself or have a trusted mechanic, or need something right away, a new car may still be the better option. These are just examples to demonstrate that there are things to consider besides the on-paper dollars moving.

I've bought a lot of cheaper cars over the years and have been killed by depreciation when it's time to replace them. Certain brands and models are tempting because you get a lot of value for the purchase price. But, your investment depreciates rapidly. I started breaking that cycle a few cars ago and it's starting to pay off when it comes time to trade them in. For instance, my last purchase was when I bought a new 2020 Toyota 4Runner for $41K which I drive today. Blue Book on it today is $35K. So, in 48 months, I lost $6K in value - or $125 per month. Cars are always a bad/necessary investment. But, guiding your decision on purchase price alone is not wise.

I saw a news report about odometer scams being on the rise. And they are generally undetectable; even dealers are getting duped. It makes me afraid to buy a used car.

This is a great point. Figure out your budget for a car and find what is newest and best fits you in that range.

Erin, this is a good video. Another aspect to take into consideration if financing is that new cars are financed at a lower interest rate that used by at least 1% and the interest increases significantly if one carries out financing beyond 48 months! I am in the dilemma of do I buy baseline model or gently used as this will be my last car and needs to last 10-15 years. Best wishes and keep up the helpful videos 😊

Erin you’re spot on. If you’re in the early stages of your wealth building journey, I recommend buying used. Avoid excessive car payments and put the extra money into investments instead. However, once you’re further into your wealth building journey and have the means to purchase a new vehicle - live a little and enjoy. In my case, I purchased a 2022 Tesla model Y cash. A) I’ve been working and investing for 20 plus years. B) Due to my profession, I was exempt from sales taxes saving 12k on a new vehicle. The statement “ You should never buy a new vehicle” is in my opinion a lack of understanding that finance is personal.

I won’t buy new for one reason, going through a dealership. I hate the game of going through a sleezy salesman that is trying to make the most profit from you. Everyone gets a different deal on the exact same vehicle depending on location, salesman, and time of the month/day/year. I’d rather see direct sales from the manufacturer with standardized no-haggle prices for each vehicle no matter where you buy it.

Another factor to consider is warranty. Here in Australia I can buy a new Mitsubishi with 10 year warranty, or Kia/Hyundai 7 years. That’s a long time to not have to worry about major expenses due to breakdown, and they often have capped price servicing too. Also don’t pay for all the upgrades available, buy a base model or maybe one level up from that. The upgrades are generally just more electronic s#*t to break anyway.

We just started putting $500/month into a sinking fund for the next vehicle. Our daily driver is a 12 Ford Escape has 196K on it. It runs I will say that. Our next vehicle will probably be a used one paying cash.

LOL. Timing! I just bought a 2 year old car Saturday for a huge discount. Still has a warranty and it was like brand new inside and out. Perfect.

I’m debt free, and net worth of 2.8 million…I think buying new right now makes sense, and a treat to me👍of course paying cash! Keep until warranty is over, and sale it. Still able to get descent money out of it, and pay cash again for another one👍I like buying gently used…less than 5000 miles. I bought a 2023 Tesla Model 3 with 500 miles $16,000 cheaper than new

If I have the ability to pay the loan payment then I buy new. I just bought a new Silverado 1500 LT for 58000. I put 28000 down and got 0 % financing for 3 years. yes my payment is 855 a month. But that was only about 100 dollars more than a 72 month loan with interest payments. And I looked for a used truck but unless I wanted to buy a truck 6 or 7 years old and with 50000 miles or more on it they were 40000 dollars used. And a used truck costs more to finance and the warranties are usually gone also. My truck is covered for 3 years bumper to bumper so no worries about repairs for 3 years unless I crash it.

Never tell a dealer what you can afford monthly, shop/negotiate based on “out the door price” only

My first new vehicle was purchased in 1981. It was a Toyota Tercel without any extras. I’ve always bought new cars, but within my budget. I haven’t had a car payment in 28 years with brief exceptions that gave me a better deal and was paid off in less than two months. After years of investing, at 64 years old, I bought a BMW 540i xDrive in 2021. Financing 10% of it saved me an additional $2,500 after a long negotiation to get a good price. I had ordered it during the height of Covid and my salesman spent two weeks in intensive care about the time my car arrived from Germany. Fortunately he made it through, but wasn’t there for my receiving the car. I paid the car off six weeks later.

The thumbnail is near a dear to my heart because that is the car I bought back in 2010 and it still runs like a charm.

We buy a new Honda every 6- 8 years . The Warranty is important even on a new car . Gently Used is a who knows how it was cared for and can lead to large repair costs . We save to pay the difference for what we get on our trade in and our cash account we add to every month for our next new car . No car payments for 45 years....

I think an often overlooked benefit of new or gently used cars are the warranties that they provide. My parents followed the Dave Ramsey perspective pretty heavily and purchased used cars directly from previous owners vs purchasing at a used dealership. I observed them paying quite a bit in repairs. When I first began car ownership, I followed their methods initially and had several cars that really racked up repair costs and became unreliable. I decided to purchase my 2013 Hyundai accent from an Enterprise in 2015. It had several 10s of thousands of miles, but was very reliable. I’m still driving that car almost 10 years later and I drive a lot to meet my business clients.

I like to buy new…a model known for longevity and reliability, and then keep for a long time.

Right now some used cars are more expensive than the equivalent new car model. (With in like 2 or 3 years, under 50k miles.) It’s crazy in this slice time.

I’ve never bought a new car… I’m not against it but we are just not in a good enough spot yet. We prefer to pay cash, but if someone was to finance I prefer the Money Guy Show’s 20/3/8 rule. We usually keep a car till it’s dead.

I always buy new and pay cash. On average my wife keeps hers about 8 years, my turnover is 15 years. I’m 66, retired, and driving my fourth car.

How much of my Net Worth can I spend on a new car? Is 2% - 5% reasonable? When I researched the car I want, a used model was 5K less than a new one. Thus, buying a new one is a better choice.

Our net worth is in the top 10% and each of each of our four cars are worth about $5,000. All Toyotas. We don't care about cars or impressing others, cars are just like another tool to us. Guess we donate more to charity than how much we spend on ourselves.

As stated above COVID changed everything!!! Used vehicles are no longer much cheaper than new. With that said, I buy 3 year old certified used. Typically off lease cars with 36,000 miles or less. Always cash. While the price isn’t negotiable I can usually get free oil changes.

I always buy a new vehicle because I don't want to deal with a vehicle where I know it's history and how it has been driven. When you buy I usec vehicle, unless yo know the person, you take a risk. Last year I had two vehicle, both bought brand new...a 1994 Accord station wagon and a 2015 EV-V6. I finally retired the Station Wagon and got me the 2023 MDX and I am hoping for another long relationship.😊

I have only bought one new car and we would still have it if my wife had not had a deer hit her. The car was a Prius because it was a long commute vehicle and only cost about $25,000 when we bought it. (How is Steve Jr. doing Erin ?)

We’ve found dealers who sell “program” cars. They are loaner or rental cars that customers use when their cars are in for service. The dealers put new cars in service every year and rotate out the 1 year old car with 8-12k miles at a $2-3k discount and get the remaining vehicle warranty. We buy a virtually new car at a discount then drive the car for11-12 years. We just got rid in a “program” vehicle we drove for 170k miles over 11 years. Not sure we could do that with a used car that’s already 3-4 yrs old. We’d be buying cars more frequently in that case which also doesn’t make a lot of sense.

Repair cost has gotten crazy.

I noticed you said “gently used”. No way to determine that unless a mechanic takes a look before the buy. Also, a low mileage used car is high in demand. Certain vehicles do have high resale price regardless of

Bought 8 new cars/trucks in my life. Financed all of them. Some because I didn't have the money, some because I earned more on investments than I paid on the loan. My latest was a 2018 Chevy Silverado. At the time, it cost ~$40K, and two year old models were going for $34k. When you are towing a 7500# travel trailer on 1500-mile trips , you want to minimize your chances of breaking down on the highway. That said, besides my current truck, my favorite car, and one I loved the most was my used '05 Grand Prix. Owned that car for 11 years and had over 200K miles on it. The thing I find silly is buying a luxury car, like a Cadillac, when you can get an equivalent Chevy for way less. Same with Lexus/Toyota, Infinity/Nissan, etc. And, those luxury car parts cost way more than the standard car.

I have forgot what a car payment is ,,, still rocking My 1997 mustang Gt ,, easy to fix and parts are cheap ,,, $50 a month for insurance and $200 a month in Petrol ... Every time I see a new car I see $1000 payment plus $400 full coverage insurance ,, throwing your money into a fire ,, there are so many modernized parts for old cars to make them look modern

5 years ago the way to go was buy used with low miles, it would ge about half the price of new and still have 90% of it's life expectancy left. Then you maintain it and drive it til it rusts out from under you. If I pay $20k for a truck and drive it 10 years, that's $2000 a year to set aside for a new one. Step 2 is learning how to fix the darn things yourself. Wyen labor is $150 an hour, and a simple radiator job takes 3 hours, it adds up quick. Go to school if you have to. My automotive degree cost me about $10,000 and it paid for itself in 3 years, and I don't even work in the car business. I drive 16,000 miles a year and never spent over $1000 in repairs throughout a year. That includes an internal transmission repair back in november.

Buying brand new is almost always dumb unless you just have tons of money.

This is not a simple topic. Used Car, you could be just buying somebody else's problem. What is the car's condition. Is there a Warranty/Extended Warranty? The cost these days Post Corona are high (Supply Chain). The economy and what it has done to the market (Inflation the last 2.5 years). I'll tell everybody this, my paycheck has not gone up about 25% in the last 2.5 years. I said 25%. In Denver, CO the minimum wage, yes I said minimum wage, just went up to $18.29/hour. That effects the price level. I think there are many things that need to just burn out. It will be several more years.

Rounding the corner at 67 years of age, I never have nor ever will purchase a new vehicle. I received very wise counsel early life that as a guy it’s easy to become defined by what kinds of wheels we own. As long as my identity is not tied to what I own or drive, I make sound financial decisions … that, and the determination to be a wise steward of God’s provision, has allowed me (us) to reach and exceed our financial goals.

I would hate to have you as a wife or a mother. 😮You are pretty much always right, lol. My take based on many years with cars, including as a hobby and a moment as a dealer selling used sports cars, is much the same. Used cars CAN be a better deal, but at increased risk. New cars CAN be a good deal, but only modest models at their entry versions. The best used cars are typically coming off a 2-3 year lease, if you can get auction access you can get a good price on a car with more options compared to an entry level model, as the high end versions depreciate much faster. You also will still have a factory warranty, but pay many thousands less. Almost all cars will get close to 200k miles now adays without major drivetrain work.(but lots of regular maintenance) If you buy new, buy a modest model (not a luxury model)with entry level options. All the bells and whistles cost a lot extra and don’t hold their value. The difference in price runs thousands of dollars. Be careful about dealer add ons, none of them are worth the money despite the dealers insistence. Finance as little as possible for as short as possible. For a family I recommend one newish care and one very used car. The advantage of a newish car is reliability, and later knowing what is and isn’t wrong with it as you keep it for multiple years.Then eventually keep that one as the old car and start back with a newish car. We bought one new low level VW SUV in 2021 for $30k with 0% 6 year factory financing(otherwise would have paid cash). Our other daily driver is a 2012 Chrysler I bought at Auction in 2014 for $12k cash. I do have 2 sports cars that are about 35 years old, they are worth more than I paid used, but require TLC and are not daily drivers. Good content!

People seem to think about this all wrong. Buy cars undervalued or that will go up. Modern cars last a really long time. 3-400k miles. I've made money on all but one of my vehicles. I have a couple classics that have doubled in value that I drive when I want to be fancy. My current daily is a 2007 Sentra that I bought from someone at my work for $500 and I have been driving it for 4 years. Could easily sell it for $3k. Rinse, repeat. It's just a car, no one cares. lol

I bought a used Toyota almost 22 years ago. It has 266,000 miles on it and is my daily driver. Im still not convinced I’ve got my money out of it. Cars are such a money sink that greatly reduce your ability to save/ invest. Not sure I’ll ever own a new car.