Tips on Buying Cars/New verses Certified
Good morning Sir, I am currently in the market for a F 150 4x4 v8 flex fuel pickup. After cruising the Internet I am would appreciate any advise prior to a purchase. The new pickup prices appear to be close or lower than some of the certified low mileage pre-owned units with the same trim packages. I assume the new vehicle prices do not include several dealer fees? I plan to own the pickup 6-8 years, use as a daily commuter, pull a trailer 4-6 times a month and my credit score is excellent.
Any thoughts would be appreciated on what my best option maybe.
Thank you, Chris
That is an excellent question. New versus used, value. My first tip would be to compare the "Out the door price." Get the price from a dealer as an "Out the door price". That will include everything if the dealer is honest. Do the same on used vehicles from a dealer and on used vehicles from an individual, just add sales tax.
Odometer mileage, Box size and transmission type, are important when comparing used and new trucks. Automatic transmission has better resale. A full box has better resale then a short box. The amount of mileage will depend on the year but 12,000- 15,000 for each year of age would be average.
If a new truck cost 35,000 OTD and a two year old truck cost 29000 OTD, that difference is 6000 or about $850 a year over 8 years. The used will have higher maintenance but certainly not $850 a month, every month. I think it is best to compare new and used this way. If you are financing it is probably going to be hard to beat a new truck because the finance rate will be lower on the new truck and that could account for over $2000 in interest difference. When considering the interest rate difference it makes the prices of the new and used much closer.
Do the math and figure out the total difference.
I usually go with a new vehicle because I want to break it in and I like getting it exactly the way I like, options, color, etc.