Certified Used or new

[mattnxtc]

Ok so I am lookin to probably make my first real car purchase now that I have a full time job and what not. I am lookin to get something like a 4 door accord/altima/camry.

My 2 real options are:

Certified usedv (02-03 models):
Pros: cheaper, warranty, can probably get a better model
Cons: going to have around 40-50k miles on it

New (07 models):
Pros: its new, warranty, no miles on it, will last longer
cons: will cost around 4-5k more

What do yall who know a bit more think? is it worth the extra 4-5k to have a car with no miles on it?

[Mason Hellmuth]

Everyone is going to say used.

[smk67]

I am not an expert or anything, but why not look for 05 and 06 used? These cars would not be 'certified' because they would have the factory warranty remaning (I think only cars without a factory warranty that will rollover will become certified)...

[blackize]

It probably doesn't matter too much if you're getting a Camry/Accord. They hold their value really well, but also 40-50k miles is nothing for them. Going used saves you money though so I'd probably do that.

[bobman0330]

[ QUOTE ]
It probably doesn't matter too much if you're getting a Camry/Accord. They hold their value really well, but also 40-50k miles is nothing for them. Going used saves you money though so I'd probably do that.

[/ QUOTE ]

I agree. If you're willing to buy a high-mileage car, you can get a great vehicle for not much money at all. I drive an '02 Acura that I bought with 75k miles. Runs great, only problem I've had in the year or so I've owned it has been a $250 A/C repair.

[sonneti]

Used, no doubt.

[bigbootch]

It depends what kind of car you want to get. For cars that have steep depreciation curves (a lot of luxury cars, especially Audi's and Jaguar's), it totally makes sense to get a recent-model used car.

But for Honda's and Toyota's, given the price depreciation curve, it really does not make too much sense to get a slightly used car (except in weird borderline cases, e.g. you have EXACTLY 22k you want specifically an Accord and a used one falls slightly under that). But in general, assuming you have some flexibility, you should get a new car.

Another point: while it does not make sense to buy a slightly-used Honda, it does make sense in many situations to buy a really old Honda. Like a 1995 Civic or something like that.

-bigbootch

[pirateboy]

What if I found a 2002 Nissan Sentra with 55k miles on it for $6k? I know KBB value for private party is greater, but does it "make sense" as you say?

[DonkeyKongSr]

Used. Buying new is for suckers and people with plenty of money. You'd be blowing thousands of dollars instantly that you could put toward making a 1 or 2 year old car look really nice.

[z28dreams]

Used is generally good advice, but not always entirely true.

With some new-car incentives, rebates, etc, an 05 or 06 model could cost almost the same as an 07 model. My parents ended up going with a base '07 trailblazer for this very reason.

BigBootch hit the nail on the head - here's how it typically works:
first 2-3 years: heavy depreciation
next 5 years: all depreciate around the same rate
after that: very little depreciation

You can drive something like a 1996-1998 model car now for a year and probably almost break even selling it if you're good negotiating.

Also, don't get a sentra. Get something you'll want to drive for a while.

One major mistake people make is to buy something cheap because they don't want to spend a lot of money. In 2-3 years they get sick of it, and end up selling it for a big loss and buying something new.

Try to pick a car that's nice (but not so nice you can't afford it), and try to drive it to the ground.

For around $6k, you should be able to find some decent cars.
For example, if you like nissan (since you mentioned the sentra), you could find this car:

2000 Maxima SE
75,000 miles
Leather
$6500

(edmunds TMV, private party, average condition).

This would be a MUCH nicer car than a sentra.