New vs Used

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Thelgord

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The debate has raged, in my circle at least, for as long as I can remember. Which is better to have, a new rig, a used one that is paid off?

Without getting to esoteric about it, I will try to cover the pros and cons of each. Your feed back is, of course, most welcome.

New:
Pros:
1) Warrenty: This is a big one for a lot of people. Not being forced to pay for every little dent or ding is huge. Also if something catastrophic breaks, like a transmission, you only need to find a way to get it to a certified shop. Big bonus here for those who hate working on transmissions (myself included).

2) Reliable: Most new vehicles are insanely reliable. Yes, there are exceptions, but for the most part, they work as they should.

3) After market support: Most new 4 wheel drives have a crazy amount of after market support. With the growth of "Overlanding" and camping in general, everything from OEM to custom is springing up in just about every corner of the world.

4) "Cool Factor": Having the latest and greatest sitting in your driveway on some meaty tires with an RTT on top is sure to make you the talk of your neighbors. It's not just keeping up with the jones's at this point, it's plowing over their lawn gnomes while slinging mud across the windscreen of that powder blue Prius. It's hot dogs and 'Merica! Well, that last part may be a bit extreme, but you know who they are. ;)

Cons:
1) You will be paying a monthly payment, every month, without fail, every single month. Seriously, like $500+ a month, just for the privilege of parking it in your driveway. That is not counting full coverage insurance, gas, upgrades, trip funds, and that cool bottle opener mounted by the tail gate.

2) Well, really #1 is about it. If you buy new, you will have a great number of advantages.

Used:
Pros: It will be paid off! More money for upgrades, trips, and (generally) lower insurance cost.

Cons:
1) Maintenance: If you buy it used, you have no idea about the skill level of the last person to work on it. I just changed the rear brakes on one vehicle and the last owner actually had the ware bar for the brake pad clipped to the retaining clip for the pad, preventing it from moving at all. Horrible job. But that is the chance you take with a used vehicle.

2) You better know how to use a wrench. Used vehicle are by their definition, low cost. Part of that low cost is doing a lot of the work yourself. Granted this is a skill you should have regardless of what you drive, but those with a paid off vehicle, and a warrenty you don't have to sacrifice are more likely to pull out a tool box than call a tow truck.

3) Older vehicles tend to make weird noises, that are usually normal for them, given their age. A loud stereo helps overcome this ;)

4) Everyrhing starts to look like it's about to fail at any moment. While this is not really true, for the most part, the fear of the next breakdown is ever present. It can be frustrating, but the cost is generally less than the monthly payment of a new vehicle. Still, you are always watching for something to break, especially items recently repaired.

That is my short list anyway. Still, I have chosen to go the "pre-owned" route, and if everything goes right I will be selling my 2013 Toyota Tacoma on Friday. I have since purchased a 1999 Isuzu Vehicross. Nasty little thing that I DO NOT recommend for the faint of heart. Parts can be a challenge to find, and you will spend countless hours trying to track down a problem on what you initially thought was going ot be a two hour repair. Still, I absolutely love this little gem, and I wouldn't trade it for anything. Besides, the $550/ month for the Taco, plus the cost of the insurance every month just means more money for trips, upgrades, and of course, repairs. LOL!

What do you all think? New or Used? Which would you drive, and which do you drive?
 
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professorkx

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Don't get in too deep on anything with payments, house, vehicle, anything, as it takes the fun out of the experience. I have always bought used, fixed the rig up, and then sold them when we needed a extra money in the budget, and I have taken my old rigs on long overland trips and always made it back home under my own power.

As my career has progressed, I am able to buy new and pay cash, and ordered my 2014 Rubicon exactly like I wanted it, added the Chrysler million mile bumper to bumper warranty with zero deductible, and paid cash. This one will be with me for a very, very long time, and the title sits in the safe. Same for my wife's 2009 jeep, bought new, million mile warranty and I have the title, so it's easy and cheap to keep.

If you can't put enough money down on a new rig to get a low enough payment to keep your budget in check, buy used and fix up your own rig over time. Test your budget by paying the payment for 3 months into savings account before you buy to be sure you really want to give up that much money each month. The internet is a wealth of knowledge, and with the right attitude, you can learn to do anything on your rig, which brings a lot of satisfaction and saves money for overland trips.

Unmanaged debt is the enemy...
 
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Kevin108

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The answer is always: it depends. I was planning on a 4-door JK and working with the stealership to have an Ursa Minor J-30 installed and rolled into what was financed.

The problem was my XJ was giving me fits while the floor was rusting out from under it, so that accelerated my vehicle replacement schedule from late 2018 to early 2015. Not having access to the vehicle budget I'd originally planned on, I fell back to looking at what I'd considered prior to discovering the Ursa Minor setup.

We wound up with a meticulously-maintained FJ with 80,000 miles and outfitted it as well as possible with no budget. My work commute is 6 miles a day but we've put 30,000 miles on it in two years with various adventures and not a minute of trouble. The only part failure has been the switches that turn the interior lights on when you open the doors.

New would have been great, but a carefully-selected used vehicle can certainly be a better buy. Another major pro to going used is that you aren't eating the depreciation. I know the platforms overlanders tend to choose aren't as susceptible to massive devaluation, but it does happen. A quick KBB says the JK would be worth 72% of the purchase price (vehicle only) where as the FJs are still going for 88% or better of what we paid for ours. Just something to factor in, as that is money that just evaporates.
 

The other Sean

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I'm sort of in the middle. My last two rigs were 1 owner lease returns with a little bit of the factory warranty left. I let someone else eat the depreciation. On my current truck I was able to buy a 3 year old top trim level model for what a brand new base trim level truck would have cost. I still had 25K miles of the power train warranty left and the extended warranty that was rather inexpensive that took me to 99k miles. At this time in my life, I find no fun in general and major repairs. I'll gladly tinker and improve, but my days of swapping transmissions and the like are LONG gone.

I always go in with some cash in hand and something of a trade in, so I end up with not too bad of a payment. I also work it so I can easily budget more on the payment and pay off early. I got a 5yr loan on my current truck and I am about 2-3 payments from paying it off in just over three years. I do it that way so on lean months I can easily make the payment, but on fat months I can double down if I so choose.
 

professorkx

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[QUOTE="I always go in with some cash in hand and something of a trade in, so I end up with not too bad of a payment. I also work it so I can easily budget more on the payment and pay off early. I got a 5yr loan on my current truck and I am about 2-3 payments from paying it off in just over three years. I do it that way so on lean months I can easily make the payment, but on fat months I can double down if I so choose.[/QUOTE]

Excellent strategy!!
 
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T-One

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Old mechanical diesel engines without chargers of any kind are the ones i prefer simply because they are very easy to repair and mentain and I also don't have to worry much about the fuel quality in 2nd and 3rd world countries. There are still tens of thousands pre 90 land cruisers, hilux or g wagons around the globe. Many people still choose such old vehicles for world travel just because they are reliable and they always bring you home somehow, no motor emergency system or other electronics that stops you from wrecking your engine to get back to civilization.
 

[DO]Ron

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When I could still afford it (before I met my ex wife :P) I bought a new car.. paid it off right off the bat so only had pro's.. no MOT, nothing failing on me.. factory warranty..

Then again, had a 1.5 year old car that i traded in for a 10 year old Land Cruiser, Buying a Land Cruiser even semi new is way, WAY, out of my budget range.. hell, this 10 year old Cruiser is more expensive then that new car i bought I mentioned above.. and it isn't paid off..

So there wasn't a choice, I wanted a cruiser so second hand it is :) but I guess things are priced way diffrenty here then in the USA so it isn't a good comparison..
 

CDN Offroader

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- Cons to new- Warranty - may be voided by mods. (may also save you from making expensive mods?) May be voided by location, activity.
- Do you really want to squeeze that shiny new paint down that tight forest trail? Answers may vary.
 
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Darren01

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I used to be all about new rigs only. I loved the warranty and reliability. However, the more I learn about other platforms the more I'm starting to get into used vehicles. So I bought a used rig for a dedicated overlander, and I have my new rig for daily driving.

If I had to do it all over again, I'd probably just buy a 100 series for daily and overlanding and keep a Honda Accord or something similar for daily driving when I feel like conserving gas lol.
 

FeralBoy

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I like a certain vintage. I want pushrods, a real lever for the transfer case, manual hubs, floor mounted dimmer, and fuel injected.

Sent from my SM-G930V using Tapatalk
 
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squishware

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I purchased a 2006 LJ Rubicon in 2006. The auto transmission went out just out of warranty. I got Jeep to fix it and give me an extended warranty on the new one. I could not keep paying that ridiculous payment for a Jeep I no longer trusted. My one new vehicle. Never Again.
 

Kevin108

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[QUOTE="I always go in with some cash in hand and something of a trade in...
Excellent strategy!![/QUOTE]

Not always. When you do the math on borrowing money, you have to factor in several things. Average numbers: new car loans are 2.84%, inflation is 2.08%, first year depreciation is 19%, and second year depreciation is 15%. Just based on APR and inflation alone, you wind up borrowing the money for free after the first 18 months or so. When you're taking ownership of a depreciating asset, it's usually smarter to use someone else's money rather than your own.

Depending on what you are trading in, you might be giving them your old car and getting the same deal you would have anyway.

It's easy to determine what you can afford. Do the math before you're being handed a 4-square and being pressured.

The most important number to know is, where applicable, your state's new car sales tax. That can unexpectedly add thousands to the purchase price of a new vehicle.

tl;dr - Don't worry about what the payment number is. Focus on the sale price and you'll avoid most of the stealership tricks.
 
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The other Sean

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Excellent strategy!!
Not always. When you do the math on borrowing money, you have to factor in several things. Average numbers: new car loans are 2.84%, inflation is 2.08%, first year depreciation is 19%, and second year depreciation is 15%. Just based on APR and inflation alone, you wind up borrowing the money for free after the first 18 months or so. When you're taking ownership of a depreciating asset, it's usually smarter to use someone else's money rather than your own.

Depending on what you are trading in, you might be giving them your old car and getting the same deal you would have anyway.

It's easy to determine what you can afford. Do the math before you're being handed a 4-square and being pressured.

The most important number to know is, where applicable, your state's new car sales tax. That can unexpectedly add thousands to the purchase price of a new vehicle.

tl;dr - Don't worry about what the payment number is. Focus on the sale price and you'll avoid most of the stealership tricks.[/QUOTE]
That's why I buy a lease trade in. It's three years old and someone else took the hit on depreciation. It's still a new vehicle to me. hell, mine is 6 years old now and it's still "new" as far as i'm concerned.

As far as the trade in, one always needs to weigh the pros and cons of it. My last truck had 112K miles, was ready to start popping rust and the tires were 2/3rds worn. The dealer offered me $1600 when I knew at most I would get $2000 on craigslist after cleaning it all up, fixing a couple of things and wasting my time with tire kickers. Did I lose $400? not really. I handed the sales buy my keys, he handed me a garbage bag, I emptied out anything of value, he handed me the keys to my new truck, I tossed the bag of junk in and drove off and left the old truck there.
 

Northernlady

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I just bought my 2011 JK but it only had 38,500KM on it so it was just like new, and I do have an extended warranty. Someone else took the depreciation hit and I am driving a sweet little ride. It was the best of both worlds!