Originally Posted By: Cujet
Originally Posted By: SwedishRider
I just don't get what the heck is going on with modern car sales...
2013 Ford Explorer with about 20K miles on it. $41,000!!!
So next to it was a brand new 2015 model... MSRP'd for about $49,000!!!
I write about this all the time, and people discount what I say. Sometimes refusing to believe the facts.
Purchased correctly (on sale, leftover, Costco, etc) a new car is often no more than a few cents per mile more expensive (over it's lifetime) than a used car. There are certainly times where new can cost less per mile. Honda/Toyota are "high value" used cars. Yet, can often be found discounted new.
Often used car insurance is higher.
Repairs and required maintenance on used is always higher, sometimes significantly.
Often used car financing costs are higher.
Often used cars have worse fuel economy, even among similar models.
Used cars often have problems.
Used cars have less life, regardless of how they look. They will also look "old" x years earlier. With cloudy headlights and so on.
When accurately calculated, cost per mile on a new car purchased correctly is generally 3 cents per mile more than a well purchased used car of similar class.
A used car with 30,000 miles will likely need $700 worth of tires in 10,000 miles. Some will need brakes within a year or two, often $400-$600. And on and on... Add that to your payments...
If you find that "unicorn" of a used car. You know the one everyone talks about, the $2000, garage kept, 6 year old car with 9,600 miles on it, purchase it. But don't fool others into thinking they actually exist in the real world.
I totally agree with this too, I've often been fighting the buy new fight.
Thing is, you still have the average salary in the USA around $45-50k/year, and these bigger vehicles which is what Americans want due to obesity and utility, going well into the $40k range.
