Used car vs. new car: Join the debate
Posted
Sep 05 2008, 07:17 PM
by
Karen Datko
Rating:
There's an interesting debate going on at Prime Time Money about whether it's smarter to buy a new or used car. Right now, used seems to be winning.
What do you think? Before you jump in, read the exchange between "PT" and contributor "J." It's instructional and highly amusing. PT also gives great tips to use whether you're buying a new or used car.
Here's a serious part, with J arguing for a new car:
PRO (J): Interest rate of 1.9%.
CON (PT): The rate may be low but your monthly payment is almost certainly going to be much higher. Not to mention off-the-lot depreciation. That's money you could be using for retirement savings or your kid's education.
Here's a funny part:
PRO: Newest safety features, such as tire-pressure monitoring and electronic stability control, as well as enough airbags to make the car practically float in the water.
CON: Airbags are for wimps. More people are injured from them than protected. (OK, I just made that one up.)
J's arguments include better gas mileage, warranty, dependability, low maintenance, and all of the latest safety features and new toys.
PT notes that when you purchase a used vehicle, you'll have less debt (and less guilt about it) and cheaper insurance (with the option of a higher deductible), and you can park it wherever without worry because it probably already has a few dings.
PT adds, "Cassette-tape player, cigarette lighter, unintentional two-tone paint job, and a free workout from the manual windows and lack of power steering. Need I say more?" (J replies that PT could get a workout if he mowed his lawn now and then.)
We agree with Mr. ToughMoneyLove, who wrote that "if you are a person that values emotion, impulse satisfaction and style, buy new. If you are a common-sense money person, buy used."
