As you may have heard, I need a new car. Since @Woolen_Horde was nice enough to start a thread on the subject, I figured I’d get some hivemind feedback too.
The old car was a 2010 Toyota Yaris. It was originally about $18k, and I’m getting around $6500 out of my insurance for the loss. I’m looking to stay in the same general class of car, though I have no real preference of make or model. My general philosophy of car ownership is “drive it until it dies” so I’m not looking at leases or worried about major resale value in a few years.
Currently I’m looking at three major options:
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Get a shiny new 2017. At a discount, of course, this being the end of the year. Dealers are unloading anything they have left right now, so I’m looking at probably $17-18k for another Yaris or a comparable model like a Chevy Cruze.
Pros: Brand new car, best warranty options, cool features like push-button start and bluetooth audio, much less intensive maintenance schedule than older models.
Cons: Most expensive up front, going to take the biggest depreciation hit -
Buy a lightly used model from a year or two ago. For instance, there’s a 2015 Chevy Cruze at the dealership down the road with about 25k miles on it. Listed at $13.5k. Similar deals to be found at other dealers in the area.
Pros: Not paying the “drive new car off the lot depreciation”, good chunk of original warranty still left, certified by the dealer so unlikely to have any hidden issues
Cons: Slightly older model so doesn’t have all the newest features, oil changes and other maintenance are recommended more often than in the newest models -
Buy an older used car comparable to my old Yaris. For instance, a local used car dealer has a 2011 Ford Focus with only 40k miles on it (was a low-mileage lease vehicle) for about $7.5k.
Pros: I barely have to spend anything above the insurance payout
Cons: No real warranties or any kind of guarantee that the car will hold up for a significant period of time, probably a decent amount of maintenance cost
Currently I’m leaning toward option #2, but it’s really tempting to go with #1. The only real reason to go with #3 is to minimize immediate cash expenditure, but I’m capable of paying for a newer model and it seems reasonable to do so now, rather than having to do this again in a few years. Anyone have thoughts or advice?