I know buying new off the lot isn’t wise given instant depreciation. Don’t know much else besides that or even where to start with how to get a car. The 20% down / max 4 year term / 10% monthly income rule is what personal finance teaches but is that still ok with you all’s experience? Finance a used or loan a new car? Also what are some good models to look for?
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I’m in the same boat and used cars are super expensive atm. Wondering if going for a new car might be the answer?
Just going from a purely financial point of view, going for a new car is the way to go. Buying a used car right now will result in a big depreciation hit whenever the market returns to normalcy, given they are being sold at new car prices.
So, let’s say the price is 30,000 for both new and used cars. The used car is 3 years old.
After 1 year from today and assuming a flat 20% rate,
New car’s value: 24,000
Used Car’s value: 12,288
Let’s say the market has returned in to normalcy by then and you decide to sell, you’ll lose almost 17,700 on the used car, while only losing 6000 (in comparison) to the new car. Plus, the longer you hold the car the more the chances of the pricing returning to normalcy.
Get a new car or something that’s like 1-2 years old. Base level luxury car (BMW, Audi).
Lease or finance?
What kind of car did you have in mind? And yes, I'll agree that with the used vs new issues you might as well just buy new straight up at the moment. I recollect from another thread that a Lexus NX would be a good start for a simple A-to-B runabout these days. Test drive one, get a feel and drive some other models, and ultimately "you do you homey".
Taking the buy new car advice, I’ve been looking into a 2022 civic or prius. Something ~25K off the lot but still has modern amenities and won’t break the bank. Already have to pay to live in high COL city and will be working long hours so don’t know if it’s worth it to look at higher end models, especially if the consensus right now is to buy/finance.
Hondas & Toyotas are great. I've owned Toyota, Audi, and BMW in that order - my 4Runner lasted 320K miles. Civic or a Camry is a great option for an A-to-B car with some modern features. However, be sure to test drive different models and trims, really get a feel for what you like. While my commute isn't the worst thing, I'd say it takes me 30-45 min to drive to work every day, so I wanted to make sure I had a car that I could enjoy if I had to sacrifice my time for the drive.
I currently have a 2020 BMW 335i, and I love it to death... however I would not recommend a luxury brand for those who are jumping in. There's PLENTY of time for that down the road - get a nice consumer car, save some bread, and then pull the trigger on an Audi/Merc/BMW when you get a little older. Best of luck to ya.
This would be a smart financial decision. Like others have mentioned used car prices are out of wack so make sure to compare used versus just buying new. A lot of the times its only a little bit more to get a new car. I'd personally go for the Civic over the Prius as I'm a Honda > Toyota person (except for the SUVs).
Nissan Z
Like the others are saying a new car is the way to go. You're going to get a better deal new than used with how used cars are priced right now.
Toyota or Honda should be good, really anything reliable. You just want to avoid spending time where the car goes back to the shop for some defect. I'd also recommend just going with some kind of sedan and stay away from trucks or suvs since gas is at an all-time high. No need for your car to hit your wallet hard on the regular. Get used to owning and maintaining a car before you branch out to other types that are bigger or more luxurious.
As stated above, I’d go new. A Camry or Accord is probably the safest bet from both a depreciation standpoint and reliability standpoint. I went with one of those after I graduated college and needed a new car and it’s been solid for 30k miles over the past 3 years. I commuted 70 miles per day for my first job, so I bought a car with that in mind and focused on reliability and MPG. I know drive less than 10 per day. Also, don’t skimp on the trim. If you actually want something, get it within reason. I got the highest trim and added a couple options for a few more thousand, but I knew I was well within my maximum budget, and the marginal benefit of getting these add-ons was well worth it
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