Why Buy Used? Avoid the Hidden Costs of Buying New

depreciation
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#1

Originally published at: http://www.klipnik.com/used-cars/buying-tips/why-buy-used-avoid-the-hidden-costs-of-buying-new/

Buying a used car is smart for a variety of reasons, and one of the best is that it saves you a ton of money. This is fairly obvious, right? But you might be surprised by exactly how much cash that new car is costing you. Let’s explore. Sure, new cars are lovely, shiny things,…

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#2

Are there any good stats for the cost of repairs beyond year five of ownership? $28,000 savings sounds great, unless you have to give it to Hans to keep your wagen on the strasse. I am guessing if the repair cost data were available you would have included it.

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#3

You’re right that there’s not as much comprehensive data out there on the repair and maintenance costs for older cars. I was able to find a recent Consumer Reports study of how much owners paid on average in the 10th year of ownership (i.e. for 2007 models being driven in 2017). The most was for BMWs, which set their owners back on average $1125 per year at the shop. That’s about a hundred bucks a month – or $5625 over the course of five years, which still nets you a savings of $22,375 vs. the average brand-new car.

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#4

About $1,100 a year in maintenance and repair is what a 2004 Mercedes e320 wagon with 175k miles costs me. Keeping it in top shape too. A 2000 Toyota 4Runner is half of that but will cost more to buy. My experience agrees with this article completely! Those fancy dealer showrooms are designed to make you and your money part ways.

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#5

Thanks for sharing these additional data points. It’s great to hear that they are in line with the Consumer Reports study. I’ll take a hundred bucks a month in maintenance any day over the many hundreds each month that most new car buyers lose in depreciation alone.

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