New car vs used car - serious question

[Himurakenshin_]

Hi, first time buyer here.
looking at new car vs used car that is 5 years old.


Kia cerato (new) - $99,999
Kia cerato (used 5 yr old) - ~ $53,000

question: why the depre seems to be more for used cars than new cars. Always hear used cars are cheaper as new cars depre more in early years. Long term cost seems like new car is better.

Am I missing something????

 

[mel1888]

Hi, first time buyer here.
looking at new car vs used car that is 5 years old.


Kia cerato (new) - $99,999
Kia cerato (used 5 yr old) - ~ $53,000

question: why the depre seems to be more for used cars than new cars. Always hear used cars are cheaper as new cars depre more in early years. Long term cost seems like new car is better.

Am I missing something????

Its not what u pay but what u get back when u sell. And car depre is computed straight line & depre same every year. But question is why is that of any concern. I have never considered depre when buyin any of my cars. When you buy a car, its money lost in exchange for convenience & comfort. If u are bankin on what u can get back when sell, then gettin one may not be ideal.

 

[Himurakenshin_]

Its not what u pay but what u get back when u sell. And car depre is computed straight line & depre same every year. But question is why is that of any concern. I have never considered depre when buyin any of my cars. When you buy a car, its money lost in exchange for convenience & comfort. If u are bankin on what u can get back when sell, then gettin one may not be ideal.

Thanks. I was considering used cars initially as I thought it would be cheaper choice for a start.

But if I intend to drive for long term, then the would it be cheaper to get used cars or new cars considering the long term cost?

 

[mel1888]

Thanks. I was considering used cars initially as I thought it would be cheaper choice for a start.

But if I intend to drive for long term, then the would it be cheaper to get used cars or new cars considering the long term cost?

Very simple.
If u are able to buy new one, do so.
Nothing beats the feeling & everything that goes wrong is on you. Get bnb workhorse car like toyota, mitsu...these cars i owned b4 so not csb. Kia cant comment but their current designs are more n more eye catching. These bnb cars are more suited for your "long term costs"

 

[zzt231]

buy new.
those used car is so expensive because most of them can $0 drive away.

 

[sigeena]

That depre that you see from the ad also includes the used car's markup.

And the used car market will always tend to price itself slightly higher than the new car market.

Allows buyer to negotiate and thereby get a "good bargain"

 

[Conan1986]

The depre value is only relevant if you’re driving it till scrap.. real depre figure is when you sell/trade-in your ride.. most ppl get a second hand car as a first ride to gain experience and due to lower cash outlay, drive a few years then change..

Kia cerato has changed a lot in these 5 years.. I’d recommend new anytime for the driver assistance safety feature, also less headache since you’ll have warranty

 

[Wolfmaster]

it depend on affordability as well. New car most pple tend to have loan, whereby agent / distributor made money off the loan package... for used car, some pple might tend to pay full due to lower upfront cost...

thus agent tend to make it up slightly higher.. cover for loss of income from loan pkg & also allow pple to bargain.....

 

[Himurakenshin_]

The depre value is only relevant if you’re driving it till scrap.. real depre figure is when you sell/trade-in your ride.. most ppl get a second hand car as a first ride to gain experience and due to lower cash outlay, drive a few years then change..

Kia cerato has changed a lot in these 5 years.. I’d recommend new anytime for the driver assistance safety feature, also less headache since you’ll have warranty

thanks. Good point made.
Seems like used cars are not that cheap in terms of cost per year if one intends to drive till the end of 10 years.

Also noticed that most drivers don’t drive till end of 10 years and would make a change after maybe 5 years down the road.

Getting a car is a huge down payment and a great depreciating asset, will consider carefully.

 

[EJB]

Its not what u pay but what u get back when u sell. And car depre is computed straight line & depre same every year. But question is why is that of any concern. I have never considered depre when buyin any of my cars. When you buy a car, its money lost in exchange for convenience & comfort. If u are bankin on what u can get back when sell, then gettin one may not be ideal.

I go for whichever the car can fit my budget. Depre, etc.. .waste of time.

 

[myviowner]

Thanks. I was considering used cars initially as I thought it would be cheaper choice for a start.

But if I intend to drive for long term, then the would it be cheaper to get used cars or new cars considering the long term cost?

Your priority is $$. Then why not COE car? Cost cheaper than used ride. Again, look at the chances of coe ride/used car would be higher. Yes, you buy cheaper, but in the end spend on repairs...etc

 

[sigeena]

COE BNB cars are the best if you're cost conscious. Availability of parts is also generally easy.

 

[iduncheckmail]

Now Coe relatively higher , so demand for used cars higher due to lower outlay. It is the demand that pushes the yoy depre up. Used car dealers hav no lack of biz now.
When Coe low, the opp happens.

 

[LoUsyGamER]

I drive my new car to coe car, because I got use to the car (sentimentaland do preventive maintenance every 4-5 years, change parts before they spoil. So feels like a new car every 5 years.

So see how much time you want to spend in knowing your car and maintaining it. Use less brain power, get brand new and change car before or on 10 years.

 

[m@maboi]

Kia cerato (new) - $99,999
Kia cerato (used 5 yr old) - ~ $53,000

Assuming PARF > 20k.

Brand new require 40k driveaway
Used required : 15k (Parf below 20k at 5 year mark).

 

[fake_oranges]

Hi, first time buyer here.
looking at new car vs used car that is 5 years old.


Kia cerato (new) - $99,999
Kia cerato (used 5 yr old) - ~ $53,000

question: why the depre seems to be more for used cars than new cars. Always hear used cars are cheaper as new cars depre more in early years. Long term cost seems like new car is better.

Am I missing something????

Assuming drive to zero
New: dep 9,999.9
Used: dep 10,600

LOL. the used car got extra loading for those that can afford a new car's downpayment
If can, new better otherwise suck thumb and get used

Toyota Vios can jiak sai. For same price can get Cerato or Avante which in my opinion, better build quality.
Better drive will be City or Jazz if you dont mind the small space

 

[Himurakenshin_]

Assuming drive to zero
New: dep 9,999.9
Used: dep 10,600

LOL. the used car got extra loading for those that can afford a new car's downpayment
If can, new better otherwise suck thumb and get used

Toyota Vios can jiak sai. For same price can get Cerato or Avante which in my opinion, better build quality.
Better drive will be City or Jazz if you dont mind the small space

Ya, I was assuming drive to zero. So the depre doesn’t quite much what I had expected for a used car that’s why I thought I was missing something in the calculation.

 

[Kia7200]

Used car dealers will use adjust the pa dep close to new cars

So if u can afford to down the min 30-40% then u can consider new car. Or at least car within the warranty period

 

[fake_oranges]

Ya, I was assuming drive to zero. So the depre doesn’t quite much what I had expected for a used car that’s why I thought I was missing something in the calculation.

if drive to zero then you calculate properly
2nd hand car dealers trying to profit due to the 40% / 30% ruling
They are pricing it like a new car. LOL

 

[fake_oranges]

Used car dealers will use adjust the pa dep close to new cars

So if u can afford to down the min 30-40% then u can consider new car. Or at least car within the warranty period

left 5 years $53k
You double it is $106k. Same price as new. But you getting a used unit