Bees, should I buy a new car?

posted 3 years ago in The Lounge
Post # 3
3197 posts
Sugar bee
  • Wedding: August 2011

@Deejayelle:  Wow, here in the United States a 7 year old vehicle would never have such a high resale value unless it was a luxury vehicle.  So bear in mind that my opinion is based on knowing that in my country you are lucky if you get say $2000 from a dealership for a car that old.  

Personally, paint is not a big deal.  I know you want a car that looks nice but if you do not have any savings right now what happens tomorrow if for some reason you lost your job?  I suggest taking the next year or so and saving up the money you would’ve spent on a new car note and putitng it into a savings account.  Once you have enough money to live off of for 3 to 6 mos then consider a new car.  We don’t have Holdens in the USA but if it’s a half decent car if you maintain it, it should be OK for another year or so, minus the paint.  

Post # 4
1604 posts
Bumble bee
  • Wedding: September 2013

my personal opinion is that a new car is NOT worth it.

I chose to buy a car that was just over a year old and still had the remainder of the manufacturer’s warranty.

My car was $10,000 less than it would have been if it had been new and it was only about 14 months old. And I still had the warranty.

So I compromise – I wouldn’t buy brand new, but I won’t buy more than 2-3 years old either.

It worked well for me and my husband (who paid WAY too much interest on his new car) plans to do the same in the future.


Post # 6
3756 posts
Honey bee
  • Wedding: April 2014

Buying a brand new car is an enormous waste of money. The minute you drive it off the lot it depreciates significantly. You’d be smarter to shop around for a 2011 or around that year and get a much lower monthly payment. My monthly car payment is almost $400 and I very much regret that. I’ll be much smarter next time and buy a reliable used car for a reasonable amount of money. I would definitely recommend waiting a little while and putting that chunk of money that you’d be spending on a car, into a savings account and see how that goes. 

Post # 7
920 posts
Busy bee
  • Wedding: June 2015

Be cautious that the “sale price” you looked up for your current vehicle may be a few thousand dollars more than they would actually offer you as a trade in. Kelly Blue Book is a good site to get a figure of what you should get from a dealer when trading it in.

Also, I don’t think a brand new car is ALWAYS a hiuge waste of money… buying brand new makes sense if the car is going to hold its value really well, and if you can afford to put down a large down payment. Just my opinion.

edit- whoops just saw your second comment regarding the trade in value.

Post # 8
6073 posts
Bee Keeper
  • Wedding: August 2012

@Deejayelle:  A 2007 year old car with 90000km (55k miles) is a pretty new car in my book.  I’m not familiar with Holden cars though.   I think repairs and services $500-1000 per year are very normal and acceptable.  You’re going to have to put some money into it, and that is not bad honestly.  I really think you should hold on to that car and save your money. 

In the US, most people have been told at one point or another that new cars are a waste of money, never buy brand new, buy a few years old at least.  Some even say if you are going to get a loan for a car, only do a 3 year car loan and never any more.  If you cannot afford the payments on a 3 year loan, then don’t get the car (this is Suze Orman’s advice).  Or pay cash for the car.

The paint does not sound like a huge issue.  Unless you are in a place where it snows and they salt the roads a lot, then I can see rust being an issue. 

You also said you have no savings.  Adding a $500/month car payment is not a very smart financial move.  I’d up that bank guy one and try living without $500 a month for a whole year FIRST, not 2-3 months.  That doesn’t account for any emergencies or unknowns you might have.  I’d work on saving money for your future and retirement, while dealing with a 5 year old car.   It’s a baby!  My car is from 1998, paid for, costs $1200-1500/year to operate (that’s gas, insurance, tires, oil change, repairs, plates, registration, anything to do with a car).  That is a smart financial move!  It’s value is about $800, but I’m driving that thing until the repairs are double its value.

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