This is the best way. New cars, even when you negotiate a great price, are a terrible value when you consider depreciation. I buy used always now, generally at least 5 years old. The majority of the depreciation had been realized, insurance is cheaper, in many states registration is cheaper also. Never been unhappy.
Lucking out with repairs? A 5+ year old car won't be offered under a certified pre-owned program, but a 2-3 year old one will. That gets you another 5 years (7 years from the in-service date) and 100K miles under warranty. My last used car needed a new transmission, serpentine belt, water pump and alternator... and all of it was replaced under warranty, with door-to-door pickup and rental cars. When that 7 year warranty came to an end, I sold the car, took $2K and bought another 2-year-old car with the fully loaded trim. That works out to ~$400/year, with the same benefits of buying used versus new, but having a factory warranty brings a lot of peace of mind.
Certified pre-owned may have a warranty, but the "certified pre-owned" part is just a fancy way of saying used. And there's often nothing "certified" about them at all. A friend of mine in CA just purchased a "certified pre-owned" Honda 2 days ago... quite a bit of extra cash for a "182 point rigorous checklist" they do to ensure the car is in great working order. Over a dozen of those 182 points were skipped. So, all kinds of things marked as verified working that are just broken.
Certified pre-owned is a fancy way of saying "used, with a 7 year drivetrain warranty from the manufacturer", which is a lot different than "used and those broken things are your problem now". The checklist isn't the point.
Honda advertises it as being sure that everything on this huge checklist is double-checked and ensured to be working properly before you buy it. The salespeople specifically tell you that. My point is that ads and salespeople lie (surprise) and the "certified" bit doesn't mean anything.
I'm not discounting having a warranty. You can get a warranty on a used car from all sorts of places. Certified Pre-Owned is defined by Honda (and many others) to specifically have the advantage of not having specific things broken when you buy a car. That's what the "certified" part is. That's the whole reason they mention, specifically, the 182 point certification check. It's one of the main reasons my friend paid all the extra money for a certified pre-owned car vs getting the same basic car "used" elsewhere. My point is that the "certified" bit is mostly BS. And not just at Honda. You're still likely to get a car with a bunch of broken stuff when it's "certified".
Depends on how long you keep the car. I drove my last car for 13 years (still have it actually, haven't sold it yet). I just bought a new replacement. The warranty and low mileage are worth a lot when you plan to keep the car for a long time. Lifetime warranty's are also worth considering if you are in it for the long haul (usually only available for original owner).
If you buy used, you really don't know what you are getting. If you want to play backyard mechanic, go for it. Me, I just want my car to work.
This and you know the maintenance was done properly if you're the sort of person to regularly do maintenance.
I've bought this sort of car off someone it lasted twenty years (I drove it for eight) because both the previous owner and myself were on the same page about repairing and protecting it.
You must have been really lucky with repairs. We have a fleet of cars at work and until 7 years ago we always used to buy cars which were 3-4 years old, using the same logic as yours - most of the value that should be gone is gone, insurance is cheaper, whatever. We made the switch to only new cars on lease and having all repairs done under new car warranty saves us TONS of money per year. I personally never want to bother with a used car again.
how do you know if a car has a problem that's not easy to detect? i've had friends selling their cars right after when they discovered there was some weird problem with their cars, and since I don't really know cars I'd be interested to know how I can not get scammed when buying used car
I recently purchased a used 2004 Honda S2000 with 33k miles on it. I went to the S2000 community/forums and they had a huge pre-buying checklist. After buying it (had 5 days to return it hassle free), I went to a Honda dealership for pre-purchase inspection and a body repair shop for inspecting off the record accidents (not on carfax). Finally, I wouldn't buy a car that didn't have a strong forum presence with DIY guides for repairs.
If you can do private deals, not through a lot, or worse the wholesalers...
One great way to filter this is to understand why they are selling the car. Good reasons lead to good cars.
-no longer needed, change in family scenario
-business car sold every X miles
Those were the reasons I got when buying my daily runner vehicle. The guy would buy cars with his rental company, which then rented them to his business. Maintenance and all that got done on the vehicles on schedule, and when it's time to cycle out the vehicle for a new one, he sells.
So far, I've got 150K of my miles on that vehicle, and it was maintained, full dealer service, which I kept up on. One of the best used deals I've had so far. Since I've all the records, I know I've got some basics to get done in the next 50K. No big deal.
Another thing to do is research the models and overall performance. Calling in the service departments, or your local mechanic can yield some good info.
I just got another used car to become the daily runner. Reason was a death in a family, car no longer needed. That's a potentially good reason.
Turns out that model of car was released as a V6 and V4. The V6 is an outstanding runner with few problems and a modest maintenance schedule. The V4 is just pissy, not the same kind of car. I got the V6, and will need to have some preventative maintenance done in the next year or so. The prior owner kept up on that with service records.
This is a no brainer to continue. I'll have my mechanic take a good look, and recommend the "make it go 80K" with few hassles work. This will probably cost $1K or so. Given the price of the car, the total investment is well worth it.
Both of those work well for cars less than 10 years old and under 100K miles or so.
For newer ones, it's a bit harder because the failure data might not be out there yet. I tend to avoid that scenario, buying new, or buying old enough to make getting the necessary things done totally worth it.
Some older vehicles are more or less time tested. I have one of those too. It's the backup car that costs me almost nothing. I loan it out sometimes too, if somebody needs a runner for a short time. It's long paid for, runs great, and just isn't worth much, so it's all low risk. I have 360K miles on that old car. Paid $1500, and $500 or so every few years to maintain. That was my rainy day, "have to get there" or "they need to get there" car, and it has served us well. That model is known for very long service life, and the purchase reasons?
-damaged front axle due to accident
-they got new car
In every other way, that car was perfectly maintained. The guy I got it from did the axle work, and sold it cheap as a runner, due to it's cosmetics. Wonderful purchase!
To me, that under 5 years old used market is where a lot of the risk is. Buying ones that are 5 to 10 years old, where the reason for selling the car makes sense, the driver / maintenance profile is sane, etc... is much lower risk.
Additionally, the lower overall costs in that range mean there is plenty of room to invest a little common sense maintenance without feeling like it's all too much money. So, that's my sweet spot. I really don't value higher end / expensive cars enough to own them.
They sure are fun to gawk at and drive once in a while though!
It helps to identify type of car. The less picky you are, the better this all works.
What I've typically done is identify something like:
-small engine, high reliability, good MPG, clean.
For cars, 4-10 years old, you can set a price, say $2500. This will put you in a reasonable age range, as that price is low enough to filter out returns, newer vehicles. Set a minimum of $2k. Double all of that for nicer cars that aren't just runners.
Hit craigslist, and friends to find some cars. Research a few of those, and you will center in on one you like.
Then drill down on that car, looking for plausible deals. Call 'em, get their reasons, go visit, talk to them to judge who you are buying from, see the car, and go from there.
It's perfectly ordinary to get a car inspected. You can arrange that ahead of time with your mechanic. Figure out a deposit, or whatever makes sense.
Got a friend who can test drive? That helps too. There are a number of things I do on a test that helps filter out problems. I'll put a couple here:
1. Start the car and let it idle for a long time, until it comes up to operating temp. This takes 10-15 minutes. If it acts irregular, dies, begins to run rough, smokes, it's probably got some issues. Continue, until the fan comes on.
While it's idling, lift the hood, examine things. If it sounds funny or odd, it is. If you see leaks, there are. Simple common sense things here.
2. Get in the car, blast the heat. It should be right there, hot.
3. Blast the AC, if it has it. Should be there, cool in about a minute.
4. With a friend, try everything out. Lights, features, radio, whatever. Test all the electric options.
5. Time to drive the car. Take it out on the road and drive normally for a bit. It should perform like a reasonable car.
6. Find a long stretch of road, put the car in second gear, then drive about 30 MPH for a good mile or two. This will stress the engine, and doing this will filter out cooling system issues, and the engine should be smooth.
7. Exercise the car. Speed up, and use the brakes hard. If it's got ABS, that system should trigger.
8. Take some corners, handle the car a little. Make sure you go fast enough, say 70 MPH, and it should not shake or shimmy.
