Ok my suv is 9 years old. It's a lemon, but I won't go there.

I would like to trade it in for either a new vehicle or something that is 1 to 2 years old. I'm just not sure which is the best route to go.

I need your advice and also what your experience has been and whether you are glad you did what you did or regretted buying a new or used vehicle.

Discuss

Buy used.

Dave Ramsey has tons of good advice about saving money.

Used.

Here are a couple of tips from Dave Ramsey.

http://nashville.about.co...ays19a.htm

http://www.daveramsey.com...player.cfm

I would say this depends on the type of vehicle you are thinking about. You always have to worry if you are buying someone else's headache or lemon when you buy used. On the other hand, you are upside down on a new vehicle purchase for about 2-3 years on average, if not longer, depending on the model you buy.

I can say if you buy certain cars that are not too expensive that can be paid off in 3-4 years you make a wise choice to buy new, have no payments for a couple years and still be able to turn in or sell for decent chunk of change in future. The cars that you can depend on retaining value are hondas, toyotas, lexus, bmw, and some trucks.

If you cannot pay off a car until about 5-7 years it doesnt make sense to buy new because with the amount of interest you pay, and the value at time of payoff, it just isnt worth it.

I am a banker, and see the true amount people pay on auto loans and values of vehicles daily so it is pretty clear what is worth doing and what isnt worth getting into. Cars over 35,000 shouldn't be dragged out for more than 5 years because you pay so much in interest and can never recoup what you spend since value will deplete so much (disregard this only if anitiques). Makes no sense to pay 40,000 for new car, then another 18,000-20,000 in interest to pay it off 6 years down road and it is only worth 12,000-20,000 anyway. You can buy a year old or 2 year old same car for 14,000-25,000, pay it off in 3 years and only pay like 8000 in interest. So 52,000-60,000 for new or 22,000-33,000 for the same car that will end up being worth the same 10,000-12,000 5-8 years down the road anyway?

I can tell you the shorter the loan term the better the interest rate and the lower the amount you will overall on interest.

Hope this helps!

our last car purchase was a brand new kia rio. after 10 yrs of bomby second hand cars we decided that a new car was the way to go.

as we had to get finance for it, a new car has a lower interest rate than a loan for a second-hand car.
our repayments are about the same as for an older car.
plus because it has an engine imoboliser, our insurance premium is cheaper


and to ensure the warranty is valid- we have to have regular services- an old car we probably only got serviced when something went wrong

and being new, it runs on the smell of an oily rag

good luck luv with what ever u choose.

I tried doing this to get a mustang tonight ...didn't work

Used, and pay cash.

Live like nobody else, so that later you can live like nobody else.

I have done both and have decided more than likely I'll never buy brand new again.

It's just such a waste of money to have to get a car, esp. a new one.

I always buy Hondas or Toyotas which are some of the most reliable cars out there. (In the States anyway.)

I try to get one with 30 to 60 thousand miles on it because at that point the price is what I can afford and it doesn't seem so much of a waste.

Plus, as long as I change the oil and do the regular maintenance most likely the car will run for a long time, at least well over 100 thousand miles.

I plan to drive the Toyota I've got now until I can't anymore. I hate car payments.

Used under 30k miles can be as good as new.

Graycap23 said:

And cost a lot less!

I always prefer buying new. I select cars that do not lose much value at all and then after awhile upgrade to newer models. I don't trust older cars because it represents older problems.

micknme said:

this is golden information right here

I am a Nissan girl, we have owned several bought all but one new. Nissans have a great record, the only one I didn't keep for over 10 years was a trade in ( I didn't want to trade it in, that was hubby's idea) Right now we own 2. Buying used is tricky, try and get pre approved from your bank and check out the different rates for insurance, new vs used, sometimes that makes a difference and as stated above no loan for longer than 5 years, geta 3 year loan if you can afford the payments. Also if you go used look at the "certified" vehicles (Nissan's program is called certified others may be called something else) these are the used vehicles that the company sells and stands behind. Our one used purchase was a lease return that was certified, had absolutely NO PROBLEMS for 8 years and by then it was 11 years old. It now has 220,000 miles on it and is still going, after hubby refurbished it a bit.
[Edited 5/6/09 7:40am]

I had read an article somewhere a few months ago and they said that your best bet is to get a used car that is 3 years old. The warranties are still in tact and if there are any problems it usually happens within the first 3 years. I guess it's a better bang for your buck.

My Honda Civic is 10 years old and going strong. I won't get rid of that thing until it dies and I will go right out and buy another one.

Good luck!

i would always go for used, with lowish mileage.

imo cars depriciate too quickly.