New vs. used cars (and value)

[Phil Thien]

Been watching used cars on Craigslist for a while, and cross-checking car prices with kbb.

Is it just me, or are cars not depreciating anywhere near as much as they used to?

I know newer engines can often do 200,000 miles. Longer engine life should imply slower depreciation. But I've seen quite a few Honda and Toyota and other top-notch engines develop major problems at 100,000 miles, too. We have a neighbor that spent about $3k on engine work on an Odyssey with 100k miles on it.

I'm kinda stunned to see someone asking $8500 for a nearly 10-year old 2004 Honda CRV with 93,000 miles on it (a recent Craigslist posting).

Does it make any sense to buy used any more?

Where do you find good deals on used cars? Craigslist isn't working for me.

[Mel Fulks]

I've been driving a 1993 Camry I bought used from my son some years back. Recently it developed brake fluid leak and I didn't want to pay for towing ,so I junked it with only 242,000 miles on it. Across the street neighbor was selling her moms car as she had quit driving ,a 2000 Camry . Very clean and only 66,500 miles. Paid NADA book price and quite happy. I've bought only one new car ,and don't anticipate buying another.

[Stephen Cherry]

I've been looking for a new used pickup truck, and I don't see good deals popping up. Also, you can get a bare bones Ford or cheby for about 17-18 k. More and more the new trucks look like the way to go.

[Larry Frank]

I think that with the recession people were/are buying fewer cars and keeping cars longer. This makes the used car market have fewer vehicles and higher in price.

The price of both new and used cars has gotten awful. It makes more and more sense to keep a car even if you have to keep putting money into it.

[Kevin Bourque]

Yes, Craigslist vehicle prices are ridiculous, but just because someone is asking top $$$ doesn't mean they'll ever get it. Also, a lot of vehicle ads that sound like they're being sold privately are actually dealer sales.

[Steve Peterson]

I see way to many used cars listed with 100K miles for about half of the new price. The best half of the cars life has already been used up.

Cars with 30K miles are listed at a discount of only 3-4K less than the new price. There is no advantage to buying used at that price.

The only cheap used cars in my area are the ones with 170K miles or more. I will stick with buying new cars and drive them for 200K miles.

Steve

[Jeremy Hamaker]

so, the following are my opinions, most assuredly not supported by me with hard data.

A few years ago, Cash For Clunkers resulted in a lot of folks trading in used cars for new cars. Normally, these used cars would go out to the market but this time, they were all rendered unusable by having (at least) their engines destroyed. Big or small impact on resulting price? Couldn't swear to it either way.

The recession as mentioned. Except for the buying blip from Cash for Clunkers, I would agree more people are hanging onto their used cars longer.

Newer generation cars are in a lot ways longer lived. All their plastic may break and their electric gadgets fail, but the running gear could be more durable.

I was trying to value my well-used 2005 PT Cruiser a while back and was SHOCKED to find what others were asking for theirs. I too can't quite fathom why someone would think a car like mine should be sold for the high price they're asking...

[Wade Lippman]

Unless you are looking for a cheap old clunker, I don't think it makes any sense. A two year old car just isn't that much cheaper, and is used with no warranty. Just doesn't make sense.

Two years ago my son totaled my 5 year old RAV4, that I paid $20,000 for. The insurance company gave me $15,500 for it, and that was after my $500 deductible. Then I bought a brand new comparably equipped Impreza for $21,000. It really doesn't make any sense. And my insurance only went up a tad.

[ken masoumi]

I have bought used cars a few times in my life but never had good luck with them,all the repairs were major like transmission,engine, etc.so I have come to the conclusion that buying new is a best when you are planing to keep the car for at least 10 years .
I bought a very basic Honda Civic in 2007 cost me $19.000 and so far it has been a workhorse ,do most of the maintenance myself,buying used is a gamble,you may be getting some one else's headache.

[Bob Rufener]

I hadn't bought a new car since 1985 until last year. We normally could buy a 2 year old vehicle at a good discount off of new. We were looking for a different car last summer and, as you stated, the used car prices are not much less than a new car. We wound up buying a new car. With the incentives they sometimes offer such as rebates, low financing etc. it made sense for us to go this way. It has worked out well since we bought a 2012 Camry. The newer cars have much better mpg and the Camry has a six speed transmission which helps with economy. I am getting about 33 miles per gallon over-all and I have gotten 36-37 miles per gallon on trips where I am not running 70-75 mph. 4 cylinders is plenty for our needs.

[Jim Becker]

Used vehicles are holding value better right now due to supply being down since so many of the "gas guzzlers" had to be taken out of said supply. And yea, many late models go and go and go for many miles with proper maintenance. Sometimes it may even make more sense to buy a new or off-lease vehicle from a dealer when the money with incentives is so close to quality used. Even the more "base" models have a lot of creature comforts these days as standard and are safer than many older cars.

[Jim Matthews]

Real values are based on what a used vehicle brings at auction (http://www.adesa.com/kontos-kommentary).

That's the base price, trade-in values are somewhere around that - depending on condition of the car in question, and what the seller intends to buy.
Realistic private sales are maybe $500-$1000 higher than trade in values.

I think you're also seeing to other variables at play;
Regional demand and the buying power at the bottom.

In my neighborhood, cars less than $5000 in price are rarely sold privately.
People shopping cars at that price point have little spare cash and need to buy vehicles on time.

The rip-off shops get that business, because they offer "Buy here - Pay here" credit terms at exorbitant rates
but low monthly payments. I've got a 2003 Ody with up to date service records and no mechanical issues at 94k miles.

I'll be lucky to get any interested buyers, let alone offers at the KBB value.
I'll probably end up keeping it for the minor insurance cost, as a hauler.

If you really want to see a used car that's outrageously priced, look over the Subaru ads.
Low supply, stable demand - prices are 10-15% more than KBB and they SELL!

[John Huds0n]

Have you tried looking on AutoTrader?

Craig's list is free - since you have to pay for an add on AutoTrader and I think you have more serious sellers there

http://www.autotrader.com/

[John Shuk]

Different story on most American cars though.