Why should I buy a used car?
Particularly right now? Interest rates are
still fairly low. All the manufacturers have great lease deals or rebates
going right now. And there are some
really neat new cars!
Money. If you
just don't care about financial growth, you might be happier with a shiny, brand new ride
(who wouldn't?). But
for those of us that would like to see the "net worth" line on our financial
statements grow, new cars don’t look as attractive.
Depreciation is the primary culprit. Say,
for example, you who want a nicer, better car than the one you have, and are willing to
part with $500 a month to get it. You could do a 36 month lease, with no money down, and
get a $25000 car (with a residual value of $12000). It will cost you $500 a month for 36
months, or $18000, plus taxes, insurance, maintenance, etc. Or you could buy a used car
for $15,750, and pay $500 a month (at 9% APR) for 36 months. It would be paid for in 3
years and still have value. Let’s say it’s only worth $9000 at the end of three
years and you’ve spent an additional $2000 on repairs or maintenance that you
wouldn’t have spent on a new car. Your actual cost has been $10820, or roughly $7200
less than the new car in this example. If you have two cars at your house you could save,
using the same example, $14,400. That’s significant to most of us. While every set of
circumstances differs, you can work any set numbers that you find applicable; financing,
leasing, or paying cash, and see if you don’t find a substantial difference
in real cost.
Edmunds.com provides an interesting tool called "True Cost to Own" that will
allow you to compare the relative total costs of owning new and used cars.
At Marietta Sportscar, we look
for cars that have taken the worst of the depreciation, while still having a lot
of usable value. In many cases, the total price of our car is less than the
first year's depreciation alone on a comparable new car.
Freedom. When you sign on for
a new car, you are making a long term commitment. Sometimes your needs simply change, like
when you find yourself newly married and with child(ren) in route a year after you leased
that new Miata. Or when you take a new job traveling around the Southeast shortly after
getting a new Jeep Wrangler. Sometimes we just want a new and
different experience, and don't want it to cost more than a six week vacation in
Hawaii.
Fun. Yes, there are a lot of
really neat cars out there and some of us would like to have one of each. If you shop
well, you can often purchase a used car, drive it a short while, and sell it again without
taking a huge financial or emotional beating. Then you can get something else you always
wanted, and then do it all over again!
Convenience. Buying a new car means
going to a new car dealer to buy it (usually an unpleasant experience) and to
service it (even worse).
At Marietta Sportscar, we'll
try to make your purchasing experience reasonably pleasant. We've all been in
this business a long, long time (our rookie has been at it over 20 years) and we
know what we're doing. We don't have the time or the inclination to play games
with you. Of course, some prospective buyers like to play games or need the
"system" experience common to new car dealers, and Marietta Sportscar may not be
the right place for those.
While having a new car warranty
is nice, you've had experiences in the dealer's service department that you'd
rather not repeat. After waiting several weeks for an appointment, you describe
your problem to a commissioned service clerk who tries to communicate it in
written form to a dispatcher who tries to translate it to the technician who's
actually working on your car - a lot of opportunities for a breakdown in
communication. At our shop (and at most independent shops), you'll talk directly
to the technician. You'll know him and he'll know you. A relationship with a
technician that you trust may save you more in time and money than a new car
warranty would!
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