Old Car vs. New Car?

[Aussiest]

I've been putting this off for a while, but i think it's an interesting topic. The issue of having an old car vs. buying a new car. The question is, why do we really want new cars? Surely they are a waste of money?

The way i see it is:

1. Advantages of an old car:

-no repayments, can own it outright
-doesn't matter if somebody opens their car door on to it, just adds to the "character"!
-who cares, it's only a car, gets you from a to b
-less depreciation

2. Disadvantages of old car:

-target for burglary?
-generally disrespected on the road
-can be money-pit
-embarrassing confused:!)

1. Advantages of new car:

-smells oh so nice when you buy it
-a novelty
-impressive to friends, co workers etc.
-may garner more "respect"
-less of a money pit
-roadworthy
-warranty

2. Disadvantages of a new car:

-repayments (unless own outright) - agh!
-novelty wears off
-some A$$ is likely to smash it 6 months after you get it

I don't know, i think i'll keep dreaming.

What do you think? Are you happy with your old bomb, or do you want a new one? What are the merits of an old car vs. a new car

 

[moXJO]

I've been putting this off for a while, but i think it's an interesting topic. The issue of having an old car vs. buying a new car. The question i ask, is why do we really want new cars? Surely they are a waste of money?

For the 50% tax deduction that business owners get.

I'm still happy driving my old ute around even though I updated the other work vehicles. Was looking at a new 4x4 ute but I just can't justify the price of tritons/hilux. They are flimsy, uncomfortable and flimsy crap. The others are not much better. Don't like getting bogged in my 2wd in the middle of nowhere though.

 

[ajjack]

Yeah, if the old car is roadworthy, but how many are?

The main reason I drive a modern is the safety angle eg.
air bags, stability control, ABS, etc.

 

[steve999]

Buy a 1-2 year old car. That way it's still fairly new, should be under warranty but quite a few $ off brand new. Assuming buying as an individual not a business etc it makes the most sense to me.

 

[chrislp]

My first car was an old money pit, spent thousands on repairs & sold it for less.

My second car was a brand new one which I still drive today after 7 years & have not had to replace any mechanical parts except for a battery, tyres & front brakes.

To me the novelty of a new car wore off after 2 years which seems a pretty decent amount of time.

After these experiences I would only buy a new car (as long as it's Japanese) and never buy a used/old car. Can't beat reliability.

Not to mention I loathe people with smelly cars, especially diesels, worse than smoking IMO.

 

[theasxgorilla]

There is a middle ground. Buy a car that is a few years old, but has done low k's and has a good service history.

The biggest challenge in Aust is the financing.

If you have a mortgage, try to use a facility that allows you to finance at, or near, your home loan interest rate. Otherwise, it's friggin' highway robbery what banks try to change down-under for a "car loan", and worse still for a "personal loan".

 

[Sean K]

Buy both and just think about the positives of each.

I doubt the old car will get driven much though.

 

[Mr J]

2. Disadvantages of a new car:

-repayments (unless own outright) - agh!
-novelty wears off
-some A$$ is likely to smash it 6 months after you get it

You forgot depreciation. I'd look at cars 3-5 years old, or even older. It's not old if the car has good build quality and is in good condition. A Toyota Supra for example is 11+ years old, but I imagine it would run forever.

 

[Bafana]

If you do a lot of driving like myself (over 1250 km a week) a new car becomes an obvious choice as you want the thing to run every time you need it - Reliability. You also want fuel economy (which tends to go down in older cars). On top of that the new car feel last for a fair while, at least a couple of years for me anyway.

Repayments suck but what to do? That's life and if you work it in with your fuel, insurances, maintenance under tax effective you get some benefits that side.

That said I hit a 7 ft something old gray two days ago so feeling the new car smash repairs blues now. My insurer, GIO was great and I am in a same model Budget rental for 14 days right now. Always tick the hire car and windscreen boxes on comprehensive auto insurances. Sure it cost more but makes your life a hell of a lot easier when something goes pear shaped.

 

[johenmo]

If you're gonna go for a used car, buy the Dog & Lemon Guide to steer away from the bad ones.

Buying one a couple of years old can save some depreciation loss but check it against new ones anyway. The only new cars I've had were part of the salary package. Others have been 2+ years. We've had a couple of Toyotas and they so/have run well.

 

[tech/a]

Buy a 1-2 year old car. That way it's still fairly new, should be under warranty but quite a few $ off brand new. Assuming buying as an individual not a business etc it makes the most sense to me.

My first car was an old money pit, spent thousands on repairs & sold it for less.

My second car was a brand new one which I still drive today after 7 years & have not had to replace any mechanical parts except for a battery, tyres & front brakes.

To me the novelty of a new car wore off after 2 years which seems a pretty decent amount of time.

After these experiences I would only buy a new car (as long as it's Japanese) and never buy a used/old car. Can't beat reliability.

Not to mention I loathe people with smelly cars, especially diesels, worse than smoking IMO.

These sum it up for me.
Only I buy NEAR new cars and have a buyer pick them up at auction
$300/car fee.
I pick Model/Make/Milage/Amount I wish to invest and fuel type.
We have 10 in the fleet.
Off he goes to here.

http://www.auctions.sa.gov.au/

2 yr old Commodores for $16,000 with $8k for the old ones now 6 yrs old.
After depreciation ---no brainer at these lease rates!

No good if you want a Porshe!

 

[explod]

On my retirement 11 years ago my wife and I purchased a 180E Merc for $33,000 had 80,000 on the clock, we still have it, goes like a dream, 10 litres to 100k is still ok. Others who brought holdens or fords new are on thier third car since. Only breakdown was power steering pump some 6 years back. It still looks good, came with mag wheels. Serviced every 10,000k average $340 each time.

I also have a Toyota ute, 8 years, second hand, $4,000 has run like a dream. Service it myself. Good second hand vehicles well chosen are far ahead IMHO

 

[trainspotter]

Nothing better than a concourse condition 1973 V8 Triumph Stag in fire engine red. Oldie but a bloody beauty ! Always had second hand cars, generally 2 years old and about 20,000 kms. Full service history, excellent condition, yadda yadda yadda. Bought one from a deceased estate once. 1991 Toyota Camry CSi SV21 sedan. Magnificent little motor car. Still see it driving around town today. Turns out one of my mates daughter bought it off the fella I sold it to. Never had a spanner on it.

In saying all this I bought the V8 Toyota Landcruiser GXL100 series brand new for tax purposes. GST claim, depreciation etc. Gave it to the wife to drive. I get to put fuel in it and clean it. Drive it to the workshop to be serviced. Ho hum ... such is life.

 

[prawn_86]

Obviously im only young so not in a position for a new car anway, but i barely drive (i would do less than 50 kms per week), and i have a 1993 hyundai and it runs like a charm. I have had it for 7 years now, and this year was the first time i had to do anything aside from service it, which was replace the started motor (only fair after all that time).

From my experience i would happily keep buying 2nd hand cars. Im not that into the 'image' side of things from cars, as i never drive the thing anyway.

 

[Aussiest]

Most of these answers remind me that a car is "needs" based rather than being all about image, which is good. Love the idea about the tax break, pity you can't get it on a 2-3 yr old model.

 

[jono1887]

Buy both and just think about the positives of each.

I doubt the old car will get driven much though.

wouldnt $$ be an issue here...

 

[ajjack]

You are right there Aussie, the hack car is primarily needs based.
If you want the 'image', or like tinkering, then buy a second
car for that purpose.

Thats why I have a recent 4x4 for commuting, and a shed full
of vintage/classics to play around with.

 

[nunthewiser]

These sum it up for me.
Only I buy NEAR new cars and have a buyer pick them up at auction
$300/car fee.
I pick Model/Make/Milage/Amount I wish to invest and fuel type.
We have 10 in the fleet.
Off he goes to here.

http://www.auctions.sa.gov.au/

2 yr old Commodores for $16,000 with $8k for the old ones now 6 yrs old.
After depreciation ---no brainer at these lease rates!

!

yawn.............. please provide financial statements to validate these claims


on a side note yes gov auctions and tender processes are often a great way to pick up a bargain

 

[gooner]

Got a Toyota Kluger that we bought new five years ago when the first baby came along - got it on a 1 year salary package to save some tax. It has two fold down seats in the back which turns it into a seven seater for when we have all 5 of us and the oldies in the car. Only car we have and we do 8,000 kms a year. Runs well and can't see me replacing it for a very long time, possibly when kids leave home and no longer need such a big car.

At that time would look at buying second hand due to less depreciation in value

 

[awg]

You can work it out based on your mileage, and depreciation.

I never buy new as depreciation is by far the biggest cost.

2 to 5 yr old if you know what you are doing.

I would never own another Ford, as the build quality is poor.

I have owned many cars, even up to 40 yr old, doing my own maintenance.

You cant maintain the newer ones at all

Modern safety features are a must if you have others in car

Best vehicle I owned was a 25 yr old International Scout 4WD, 345cu V8.

Gas powered, cost me $1500, owed me nothing when I sold it 10 yrs later for $1000.

Was built as a Truck, with truck components, for a life span of 1,000,000km

It was massive, and battered looking, no-one ever hassled me on the road, they always gave way at roundabouts, merging.. haha.

I like Toyota cars, so reliable