New vs Used

[desch]

Please help me with my logic and/or math.

Just using the book values I am comparing buying a new 4Runner vs buying a used, low mileage certified pre-owned. I am making a couple of (probably flawed) assumptions including the following.

1. Can negotiate down an equal percentage on both
2. Will keep the vehicle for 200,000 miles

Option 1

Used 2011 4Runner limited, base
25,000 miles
KBB value - $37,719
Cost per mile to 200,000 = $.21 per mile

Option 2

New 2013 4Runner limited, base
0 miles
Toyota Website price - $41,030
Cost per mile to 200,000 = $.205 per mile

Help me out. Why would I not buy new?

Thanks!

 

[snatchel]

You answered your own question!

1. In a new car, you are the ONLY person that will have driven the car

2. In a new car, you get the Toyota Care package-- it's not much, but it has added value

3. New car smell

4. You want me to assume APR is going to be the same. It's not u heard of, but rare.

The only way you lose out is if the used 4R is modified already in the exact way you want, and you don't get hit by the new vehicle depre nation when you driv off the lot.

 

[j_shoe99]

Help me out. Why would I not buy new?

I was in the same boat as you, last Fall. They had a used 2011 for $32k on the lot, or a brand-new one for just over $32k(after negotiating).

Pretty simple decision for me....I got the brand new one.

 

[Jayhawk5G]

Please help me with my logic and/or math.

Just using the book values I am comparing buying a new 4Runner vs buying a used, low mileage certified pre-owned. I am making a couple of (probably flawed) assumptions including the following.

1. Can negotiate down an equal percentage on both
2. Will keep the vehicle for 200,000 miles

Option 1

Used 2011 4Runner limited, base
25,000 miles
KBB value - $37,719
Cost per mile to 200,000 = $.21 per mile

Option 2

New 2013 4Runner limited, base
0 miles
Toyota Website price - $41,030
Cost per mile to 200,000 = $.205 per mile

Help me out. Why would I not buy new?

Thanks!

Due to the way Toyota's hold value is will almost never make sense to buy a slightly used model because you will always be so close to what you can buy a new one for.

Now if you could afford a new SR5 but wanted a Trail or Limited, then looking used might make sense...

 

[MpJustice]

As others have stated I could not justify buying a used T4R when I could get a brand new one for just a bit more.

 

[JayceeP]

If you plan to keep it that long- new would make sense. Try looking for a leftover model so you can still buy new but save thousands. I picked up a brand new leftover 2012 Limited over 2 weeks ago with only 250km and saved somewhere in the range of $6,000-$7,000 or more including taxes.

 

[mapdash]

Please help me with my logic and/or math.

Just using the book values I am comparing buying a new 4Runner vs buying a used, low mileage certified pre-owned. I am making a couple of (probably flawed) assumptions including the following.

1. Can negotiate down an equal percentage on both
2. Will keep the vehicle for 200,000 miles

Option 1

Used 2011 4Runner limited, base
25,000 miles
KBB value - $37,719
Cost per mile to 200,000 = $.21 per mile

Option 2

New 2013 4Runner limited, base
0 miles
Toyota Website price - $41,030
Cost per mile to 200,000 = $.205 per mile

Help me out. Why would I not buy new?

Thanks!

Your price for the 2011 is high. I bought my 2011 LE used a year ago for 33k with 25k miles.

At that time with the current deals going for a new LE were 43k-45k.

10k savings new vs used is not uncommon. Add up interest rate savings, and whatever else you want......its not gong to equal 10k.

I have never seen a situation where buying new over used is a better financial decision.

 

[thebwlife]

I bought new because of the same thing.

3 years used was only about 10% cheaper than new in my case. Find my build thread and it has all my purchase details in it.

 

[Stifler]

a 2011 used can be had for under $30k but as stated if you are keeping it for 200k then go new

 

[Auntie Soshul]

I, too, went through the same thing a couple months ago. I could buy a 2011 SR5 at Carmax (no negotiating) for $31K, or a similarly equipped 2013 new for 33K (after haggling). The new car smell alone is worth the difference.

 

[Jayhawk5G]

Your price for the 2011 is high. I bought my 2011 LE used a year ago for 33k with 25k miles.

At that time with the current deals going for a new LE were 43k-45k.

10k savings new vs used is not uncommon. Add up interest rate savings, and whatever else you want......its not gong to equal 10k.

I have never seen a situation where buying new over used is a better financial decision.

If this post was about a Ford Explorer I would buy that, but I have never seen numbers like those on a 4Runner. Not when we went to purchase ours and not now. I just did an Autotrader search and Limited's with 45k + were $38k. 2010 SR5 4x4 with leather/third row and 65k miles was $27k.

 

[huntsonora]

Your price for the 2011 is high. I bought my 2011 LE used a year ago for 33k with 25k miles.

At that time with the current deals going for a new LE were 43k-45k.

10k savings new vs used is not uncommon. Add up interest rate savings, and whatever else you want......its not gong to equal 10k.

I have never seen a situation where buying new over used is a better financial decision.

This was my first thought as well. Last year I bought a 1 year old certified 2011 Trail Edition(23,000 miles) with the additional coverage to 100,000 miles for 34,500 OTD and the new one would have been close to 8,000 more OTD without the extended warranty. I was happy knowing that somebody else took the 20% hit in depriciation. Hell, that pays for a LOT of mods if one was wanting to go that route

 

[Apex_GTR]

I purchased a used 2012 limited 4x4 a month here in CA for 35.7. Truck had everything besides the automatic running boards (came with stationary running boards), certified
7yr/100k with 9k miles. Best price on a new one I could get was 40k that only comes with the standard factory warranty for 3/36k.

 

[desch]

Thanks for the feedback everyone. If I can find I used LE for the price some of you are mentioning I will jump all over that. Otherwise I think I will happily buy new.

 

[adam2562]

I got my certified 2011 trail in January with 33k miles for $33200. And i got 1.9% apr sounds good to me!!

13 months ago i got 2010 limited with 26k miles for $33500 at 2.9% .. i traded it in towards the trail.

 

[Hellamatic]

Buy new. $3000 isn't enough to justify buying used.

 

[jspagna1]

Buy new. $3000 isn't enough to justify buying used.

Absolutely. I ran into the same issue as well. For $2,000-3,000 I would buy new.

 

[M1911]

As others have said, the way that most Toyota's keep their value you don't save much money buying used. Get a new one.

 

[Craigy]

Please help me with my logic and/or math.

Just using the book values I am comparing buying a new 4Runner vs buying a used, low mileage certified pre-owned. I am making a couple of (probably flawed) assumptions including the following.

1. Can negotiate down an equal percentage on both
2. Will keep the vehicle for 200,000 miles

Option 1

Used 2011 4Runner limited, base
25,000 miles
KBB value - $37,719
Cost per mile to 200,000 = $.21 per mile

Option 2

New 2013 4Runner limited, base
0 miles
Toyota Website price - $41,030
Cost per mile to 200,000 = $.205 per mile

Help me out. Why would I not buy new?

Thanks!

The math is a little rudimentary, obviously, but that keeps things simple.

What is a little more interesting is the "cost" of those 25,000 miles, which would be $.132 per mile if we assume the used limited cost $41,030 new (which is off, but makes an easy number). Those first 25k miles were cheap by comparison.

If we apply a .205 cost per mile to the used car, the selling price should be $35,905, which is approximately what KBB lists as private party value, excellent condition.

So the underlying cost is the certifiedness of the used vehicle, which only adds a bit of powertrain warranty. IMO not worth it.

Used non-certified car should be much cheaper which is attractive to buyers who are thinking short-run initial cash outlay vs long-run overall cost.

 

[desch]

So the reality vs the book price turned out to be a bit different than I originally posted. I just bought a 2012 LE with nav and running boards for $34,650. It has 33,000 miles, is certified and is cherry. Invoice on one without the nav was just under $41,000 so for me used turned out to be the way to go. It took a couple of days to get to that final price as it was on the lot at $39,000 but we got there.