I am currently considering buying a brand new car instead of used for the first time. My vibe has treated me great for the past 5 years but the ride is very rough compared to newer cars (always has been a stiff ride) and while I know the car will MAKE the long trips I don't know if my body can make the long trips for much longer riding on the VIBErating seat. Everyone always says "buy certified used" and I got to thinking, if dealers are making a lot of money on used (especially "certified") maybe they don't make THAT much money on new? Maybe that "depreciation" only applies to those thinking of selling their cars right away? Like, for example... IF I could have got a vibe for $14k in 2008 with 0 miles would that have been a better deal than me getting my used 2008 vibe in 2012 for $9000 (private party) with 78,000 miles.... I would have gotten another 78,000 miles out of it. Instead of being at 187,000 I would be at 109,000.
Say I sell my used vibe for $3000 today. That's:
$9000 sticker
$540 sales tax
$1187 interest
total: $10727
- $3000 private party sale:
$7727 "spent", or $128/month at the time loan was paid
Now if I had bought NEW (at $14k) I would have paid:
$14000 sticker
$840 sales tax (assuming same interest, but new loans have BETTER apr)
$1857 interest
spent: $16697
-$3000 private party sale
$13697 "spent" or $228/month at time loan was paid
BUT I would get ANOTHER 4 years out of this car (2008-2012) instead, so, If we adjust for USE:
Used vibe: 5 Years of Use
$7727/60: $128 a month for "use"
New Vibe: 9 Years of Use
$13697 / 108 months: $126/month for "use"
Am I forgetting anything here? Either way if I keep the car my payments are $0 so those calculations are linear. If the car blows up at 250k either way I would have got 250k out of it. I feel I got a good deal on my vibe private party and it would have been even worse if I bought "certified" since a local dealer wanted $13k ($14k on sticker) for a "certified" 2009 in 2012.
Do you guys always buy new? Used? Why? Have you crunched the numbers? I hope I am missing something because otherwise it seems like I really should have bought new.