Before my husband and I got serious about our debt, we did one thing that was sort of stupid yet sort of smart at the same time. We bought a new vehicle. Like brand spankin’ new. Though I have regrets about buying a brand new car, having a reliable car has been a saving grace for us.
Why Did We Buy New?
We were driving an eight year old European vehicle that was reliable but when something went wrong was very expensive to fix. In our city, there are few mechanics who would work on the vehicle and when they did it was always expensive. Parts from junkyards were few and far between.
In September the A/C went in the vehicle. A deal breaker? No, but my husband does spend a lot of time driving on road trips for work so it could be uncomfortable come the next summer. We got a quote for have it fixed and decided to save for the next nine months to have it repaired. Then came December.
By December of the same year, we had no A/C which was fine but the coil in the passenger’s heated seat caught fire. This of course was no longer covered under warranty so we’d have to ”just deal” with the hole in the seat, never mind the electrical hazard even with the heated seat turned off. We hit a snowbank damaging the bumper and the entire heating system went in the car. When you live in a winter climate you can live without A/C but not heat.
My husband’s grandmother was very sick this same time and we were travelling to her home and hospital a few times per week to be with her. We needed to be able to see her.We were finally at the point of accepting our fate and needed a new car.
Sad Story?
We had never gone through the car buying process at a dealership. We were young, naive and desperate. A car salesman’s dream. Since our finances were a mess at the time, financing was the only option given our current situation. Long story short, we ended up buying the first vehicle we test drove locked in at 3.49%. We didn’t negotiate anything and signed on the dotted line.
We learned a lot from the process looking back. For one, we’ll never buy a brand new vehicle, what a waste of money! We’ll buy at least a few months old. We’ve also improved on our negotiation skills and would never, especially with a car salesman at Christmas time, just accept his offer.
Related: Is Your Car an Asset or a Liability?
We have however enjoyed this vehicle. It has been very nice to know we have a reliable vehicle covered under warranty especially while we’re trying to pay our debt off. Other than maintenance like oil changes and new tires (get them at Costco, btw), we haven’t needed to put any other money into the vehicle. It fits our growing family and provides my husband enough room for his enormous work equipment when he’s inspecting job sites. We’ve learned what we like and don’t like about the vehicle with our lifestyle and can confidently say our next vehicle purchase will be much more methodical and thought out.
Have you ever bought a brand new car? Regrets?
We’ve never bought a brand new car before. I don’t think we ever would, because of the reason you mention. We just would not be able to stomach the thought that it could drop so much in value the second you drive it off the lot. The warranty would be really nice, but if you buy a late model used vehicle I think sometimes you can still get the warranty.
I doubt we will either, unless it’s a stellar deal and we can pay cash!
I always tell myself no regrets, live and learn! 🙂 When hubby and I were young, fresh out of school and both working, we bought a brand new truck. Nothing mattered, we just signed on the dotted line, no questions asked. We later sold the truck so I could stay home with our baby. Like you, we have not and never will buy another brand new vehicle. Back in 2010, we bought my 2010 Malibu for a steal and it was still under warranty!! 🙂
Oh I also live by the ”lesson learned” mantra 🙂
Yes…our last two cars were brand new. No regrets and we are still driving each one 8 and 10 years later.
That is my hope with this vehicle and so far, so good..fingers crossed!
I haven’t bought a brand-new car yet, and hope I don’t have to for many more years. My parents bought me a new little sedan before I left for college, and they told me all about the process and the importance of having A. good credit and B. good haggling skills! I really appreciate both the fact that they gifted me that car – that I still have and hope to drive til the wheels fall off – and that they took the time to educate me on how to do it myself when the time came.
Haha that’s great. I also hope to drive the crap out if this vehicle!
I’ve never bought a new car, but I have thought about it! My cars run fine and the earliest I would need one is in a couple years if we pop out another kiddo. If that is the case, we would probably buy new because we would be looking at a minivan, which tend to be rode hard. Otherwise, into the ground the current vehicles go.
when we bought this vehicle we predicted family growth so bought a larger vehicle (it’s a crossover) so we can have another kid and manage fine! Those kids, costing is more money 😉
I’m a buy-used-only guy, but made an exception once when shopping for a smallish wagon like the Ford Focus. I found a new Hyundai Elantra wagon for $12,000–less than the price I was seeing for used Subarus, Foci, etc.–so I jumped on it. Came with a 10-year power train warranty too. Very basic car, but I felt like I was saving money every time I drove it. 🙂
When we go to get our next vehicle (either a replacement or second vehicle) we will certainly entertain buying new if, like you, the price allows!
We bought the vehicle we currently own new eight years ago. We didn’t negotiate a better APR, which I now know was dumb, but it’s still in great condition due to the fact that my hubby take really good care of it. At least it’s paid off and we intend to drive it into the ground. Our next “new” vehicle may be a slightly used one, but we have no intentions of buying anything soon.
That’s my hope with this vehicle too.
We have new cars, but it does help that W is really good with cars and used to be a car salesman, so we are able to get them cheap. Also, new doesn’t always mean that it’s more expensive than a car that is a few months old. Many dealerships offer rebates or sales (at least they do in the U.S.) that many times make the car cheaper than a used one.
I think you’re an exception 🙂
I’ve only bought a car once in my life (before then I used a loaner from my parents). At the time it was 2 years old so it was new to me but not brand new. I think this is a good range to shoot for. You get the relability that comes with a new car but don’t get hammered as badly with depreciation.
Exactly, and that’s what we plan on doing, 1-2 years old. Heck, even a few months old!
I bought my car new. I really don’t know if I’ll buy new or used for my next one. I guess it will all depend on the rebates/ 0% financing availability when that time comes.
I love hearing peoples opinions about buying used or new cars. We purchased a new car not too long ago. My main issue with buying used cars right now is that there is a used car shortage and so the prices are very expensive. If I’m going to buy a car and I have to pay just a little bit more money to get a new car with zero miles vs 30,000 then I’ll just get the new car. I know that everyone feels differently about this though.
Oh it’s definitely a multifactorial thing. I’d do the same thing in your case.
This is definitely a question I’m dealing with. I’ve been looking at cars that have 50k miles or less on it. Both my wife and I have older cars with a ton of miles on them, and they aren’t super reliable. Too many repairs in the past year. I think being a newer used car is the best way to go.
I’d probably agree but you have to do what’s best for you guys!
We bought a brand new van a few years ago, and have been very happy with it. The thing is, a year old car can be purchased for a quite a bit less, with lots of life left on the warranty. Next car we buy will be a year or so old.
Same with us.
We bought a new Prius at the end of 2012. We noted that a replacement battery pack for the Prius is between $3k and $4k. The cost of our new Prius was about $4k above what many used ones were going for. So we went with new. My wife loves the car.
If the wife loves it, that’s all that matters!
I was very gung-ho about buying a new car with my fiance (now wife). I was very naive, which you would have been able to tell from one look at my finances, but thankfully my wife had worked at a car dealership during college, and wouldn’t even entertain the idea of buying new. So, we ended up with a 3 year old car with about 30k miles, and we paid less than half of what the original owner did. I love the vehicle, but even now I think I spent too much for the position I was in. But like you, I do love the reliability of it. I’m glad it worked out for you!
Her knowledge was obviously invaluable! Live and learn in our case 🙂
I personally wouldn’t buy a new car again, I got a new car in 2004 and still have it today. But next time, I’ll try a 2-3 year old Volvo or Honda instead.
Dude, 10 years with a car is pretty decent!
Most of the people think that purchasing a used car means inheriting the problems. But by inspecting the car in good manner to ensure that there is nothing else to worry about.
The current car I’m driving was 2 years old when we purchased it. It’s been reliable and has been a good value all-around. I also bought a new car before, and liked that too…especially that genuine new car feel! Really though, I think the most important thing is to get a car that is reliable and fits within one’s budget. If borrowing can be avoided, it’s even better.
I have seen that lot of people changed their cars out 3-4 times , and all they’re doing is throwing away money.So yes, buying a new car is a wise choice if you’re going to stick with it for long time at least for 3-4 years.
I bought a new car when I was in my last year of college. I got a pretty good deal (bought in January and they were trying to get the “old” models off the lot), but I still wish I’d bought a older used model and saved the markup. Thanks to some savings and my grandparents help I was able to pay cash, so I didn’t have payments, but I sold the car a couple years later when I moved to NYC for grad school.