Buying New vs. Used $$$$$

[AmberCamper]

Hi there,

I'm a new poster here, soon to be van dweller. I found Bob on Youtube, then this forum and am very inspired to start living the lifestyle.

At first I was interested in class B, like a PleasureWay, Roadtrek, etc. Then realized I'd rather "my way" and buy a van to convert to my "minimalistic" type specifications. Vans used to build class b's are usually Dodge Ram ProMaster, Ford Transit or a Sprinter.

I personally prefer the Ford Transit. New ones on a dealer lot run in the 30-40k range. I have some money for a down payment but will have to finance the rest....leading to maybe $300/mo or so payment. Would likely be able to pay this off in ~3 years.

I notice posters that seem to have no problem buying a used van for under 5k. That would make me nervous as I intend to travel with it. I'm also not a mechanic. However I'm willing to learn.

What do you think --- is buying NEW worth it?

-Amber

 

[Optimistic Paranoid]

Depreciation is a killer in the first few years.  A new vehicle's value drops thousands of dollars as soon as you drive it off the lot.

To my mind, a used vehicle three to five years old, with less than 50,000 miles, is the sweet spot.  Somebody else took the depreciation hit, and you should probably get another 100,000 relatively trouble free miles if you are careful on the routine maintenance.

What's more, whatever is left on the original new car factory warranty is usually still in effect if there are problems.  See:

http://www.carsdirect.com/car-buyin...erstanding-change-of-ownership-coverage-plans

Of course, that article is a generality, you should check the specifics on any vehicle you are interested in.

 

[Almost There]

Amber, I'm no mechanic either! Okay I can handle a screw driver and a wrench as long as some one else has loosened things for me first....

I also make sure I have a good road service company with continent wide service. No they won't come rescue me if I'm 5 miles in the desert but for 90% of my travelling, it will work.


I have driven for, OMG, 50 years now and have never bought new! I would rather keep an extra 5G in the savings account to buy another vehicle if needed than spend all I had and be in debt for 3 years.

If you aren't sure of your vehicle buying ability, make sure you take along as knowledgeable a friend as you can find, even on the first look-see! Learn from them what to look for. AND have a good mechanic check the one you think you want BEFORE you buy.

It's possible to get really good deals out there - good body, sound mechanical, low mileage but you have to have patience. If you need it today, it ain't gonna happen!

 

[djkeev]

Save $300 a month for three years and go buy what you want without financing it.

If you have zero mechanical ability, I advise new or gently used (1 year 18 months or so) with a warranty.

dave

 

[Optimistic Paranoid]

Save $300 a month for three years and go buy what you want without financing it.

If you move out of your apartment and into a van, the money you save on rent can make the payments.  Conversely, if you are paying rent every month, you may not be able to save $300 a month.

 

[jimindenver]

I've bought both ways and while you can save money and still meet your needs buying used, new and not having to worry for years sure is nice if you have the means.

 

[AmberCamper]

Thanks for the helpful replies. It's especially nice to know some that aren't mechanics but have managed. (roadside assistance is a good idea!)

If you move out of your apartment and into a van, the money you save on rent can make the payments.  Conversely, if you are paying rent every month, you may not be able to save $300 a month.

Exactly my thoughts. I personally want to avoid renting and see van dwelling as a better alternative. Even if one decides to buy new, 30k is pretty much 2.5 years of renting (assuming 1k per month in rent). I feel you also have something to show for it in the end, since you would eventually own the vehicle.

Optimistic P - I would love to find a transit van with a high top with less than 50k miles on it for a decent price. Plenty of Astro and regular size vans, but haven't seen much under the ~15k range with these kind of specs. And they don't have high tops. Would estate sales work? Makes me wonder where you all get your vehicles, haha.

 

[Almost There]

Thanks for the helpful replies. It's especially nice to know some that aren't mechanics but have managed. (roadside assistance is a good idea!)

Makes me wonder where you all get your vehicles, haha.

There's no one right place- the more places you search the better your chances of finding what you want.

It took me 6 months of diligent searching to find my van - and I wasn't even looking specifically for a high top although I lucked out and found one with it already installed. I was prepared to have one put on in addition to the purchase price.

If you make up your mind that you want a specific make, model and year with a specific size engine you'll drive yourself nuts and never find anything.

I don't shop by make, color or engine (as long as it was an 8 cyl.) although I did want a full size van with low mileage and barn doors. I am partial to Chev/GMC and Fords but wouldn't pass up the right Dodge.

Perhaps, giving us a clue as to your general location and price range once you're ready to buy - we have some absolute wizards here who love to search for vehicles and can turn up things I could never find.

 

[Mobilesport]

Save $300 a month for three years and go buy what you want without financing it.

If you have zero mechanical ability, I advise new or gently used (1 year 18 months or so) with a warranty.

dave

I agree , I've bought used cars my whole life and  in the end after you factor in EVERYTHING  , repairs annoyances , breakdowns , tools , tows , time messing with it , you could of bought new , my dads first 2 cars were used and then he started buying new  ,  I remember one time after many years of working on my G30 van that was 17 years old , I'm outside doing body work to my van after already doing a massive amount of other work to it and my dad pulls up in a brand new bright shiny white Ford F150 that's paid for , and how much more time and money was I going to have to put into that old van to get it even close to everything working and acceptable?
When it came to money , my dad was a very smart man.
Really if a person cant afford to buy new , why buy at all?

 

[BigT]

Depreciation is a killer in the first few years.  A new vehicle's value drops thousands of dollars as soon as you drive it off the lot.

To my mind, a used vehicle three to five years old, with less than 50,000 miles, is the sweet spot.  Somebody else took the depreciation hit, and you should probably get another 100,000 relatively trouble free miles if you are careful on the routine maintenance.

Yup, this is what I do/did.  I bought a 5 year old van with 50K miles for less than half the new price, and it's in great shape!  

Now I'm shopping for an even newer full-sized Chevy Express (2015) and finding them for about $20,000 with 50K on the odometer.  

 

[Optimistic Paranoid]

Optimistic P - I would love to find a transit van with a high top with less than 50k miles on it for a decent price. Plenty of Astro and regular size vans, but haven't seen much under the ~15k range with these kind of specs. And they don't have high tops. Would estate sales work? Makes me wonder where you all get your vehicles, haha.

I think that model may be too new to have gotten that cheap, yet.  I had a look in www.truckpaper.com, and I didn't see anything under $20k.  If you really have your heart set on that particular model, you may have to buy new to get what you want.  Sorry.

 

[AmberCamper]

Thanks for all the suggestions. Thought I'd update.

After some more thought (and inspiring vandwellers from here and youtube), I decided to go in a much different direction. One that's not so heavy on the wallet. Now browsing on craigslist for a used conversion van and learn how to fix it up...with the help of some mechanically-inclined friends.

 

[speedhighway46]

As a wise person told me years ago when I was just a youngster, "Never finance a depreciating asset!"

 

[djkeev]

Thanks for all the suggestions. Thought I'd update.

After some more thought (and inspiring vandwellers from here and youtube), I decided to go in a much different direction. One that's not so heavy on the wallet. Now browsing on craigslist for a used conversion van and learn how to fix it up...with the help of some mechanically-inclined friends.

This is exactly what I'm doing! ^^^ 
Not as a full time thing but a self contained travel vehicle.

Here's my thread on my ideas.......

https://vanlivingforum.com/Thread-Building-a-Class-B-camper-from-a-Conversion-Van

Good luck! 

Dave

 

[Optimistic Paranoid]

Thanks for all the suggestions. Thought I'd update.

After some more thought (and inspiring vandwellers from here and youtube), I decided to go in a much different direction. One that's not so heavy on the wallet. Now browsing on craigslist for a used conversion van and learn how to fix it up...with the help of some mechanically-inclined friends.

A word of advice.  It's a LOT easier and cheaper to do mechanical repairs to a good body than it is to do body work on a mechanically sound vehicle.  In other words, look for a good body with a blown engine or tranny and DON'T get involved with a van with a lot of rust or other body problems.  ESPECIALLY a van with a lot of rust on the frame and running gear.

Don't know where you are, but you REALLY want to limit yourself to buying a van from somewhere where they don't use salt on the roads, even if that means having to travel a good distance.  Just saying.

 

[ArtW]

I'm just gonna +1 everything OP has said here
There is a good side to buying new, as mobilesport pointed out, but 1, not everyone can afford a new van, cash, 2, you really do lose your ass on depreciation on a brand new vehicle
My uncle Mac was a car salesman, and he always shook his head at folks who bought brand new
The only advantage to totally new vs 2-5 years old, is , you can get the exact vehicle you want, color, engine, tow package or not, eyc. and 2, you can get a better interest rate, though the extra cost will tend to negate that somewhat
Luckily I'm enough of a wrench I can buy those 'godawful' $500 cars and trucks and get a good bit of use out of them, but that approach isn't for everybody, though if you're willing to learn, and have mechanical aptitude, and can do the work, refurbing a good body / frame with a blown motor can sure teach you a lot lol

 

[Whitey]

As a wise person told me years ago when I was just a youngster, "Never finance a depreciating asset!"

In the days of double digit interest rates that was good advice.  Today money is almost free so it's more about philosophy than financial prudence.  If it's $1000 per month for rent vs $300 per month for the van @ 3 percent interest the advantages to saving up aren't as clear.  Add in a 2 percent (or so) inflation rate and financing looks even more attractive. Depreciation is the killer.

I'm grappling with the same quandary as the OP, with a time frame of just under five years until early retirement.  Insurance here is very expensive, as is parking, and gas just hit $3.80 US per gallon so that Chevy with a 6 liter is getting some second thoughts. Vacancy rates where I live (Vancouver) are somewhere around 1 percent, which adds to the hesitation.

 

[Every Road Leads Home]

Depreciation is a killer in the first few years.  A new vehicle's value drops thousands of dollars as soon as you drive it off the lot.

To my mind, a used vehicle three to five years old, with less than 50,000 miles, is the sweet spot.  Somebody else took the depreciation hit, and you should probably get another 100,000 relatively trouble free miles if you are careful on the routine maintenance.

What's more, whatever is left on the original new car factory warranty is usually still in effect if there are problems.  See:

http://www.carsdirect.com/car-buyin...erstanding-change-of-ownership-coverage-plans

Of course, that article is a generality, you should check the specifics on any vehicle you are interested in.

I'm a huge advocate of buying new if you can.  I usually buy a new truck every three years and wait until they have both dealer and manufacturer advertised rebates.  My last Silverado was 13k off MSRP.  There's not much depreciation the first three years when you get a huge discount like this and you can get near what you paid for it when trading it in because the blue book value goes off original MSRP not what you actually paid.  Last vehicle I traded in, they gave me $3000 less than I paid for it, 3 years old with 75k miles.  

I've bought many new and used vehicles over the years. I've always owned two vehicles.  For my daily driver I prefer new, like to be able to hop in and go anywhere with out worrying about breaking down.  Have a bumper to bumper warranty, free roadside assistance if it is needed.  

For my around town errand vehicle I either buy them used or swap my daily driver into that role then buy a new daily driver.

 

[DrJean]

I don't do well with used at all   unless I'm the one who used it hahaha  It always cost me as much to keep it running as a new one!


I picked the Ford Transit (cargo) van...not the wagon...because of some stuff the wagon doesn't have...    waiting for it's build.

If you join AAA auto club, you can get bids at discounted prices through their website, and you can finance for maybe 2% interest btw.

 

[ZoNiE]

Depreciation is a killer in the first few years.  A new vehicle's value drops thousands of dollars as soon as you drive it off the lot.

To my mind, a used vehicle three to five years old, with less than 50,000 miles, is the sweet spot.  Somebody else took the depreciation hit, and you should probably get another 100,000 relatively trouble free miles if you are careful on the routine maintenance.

What's more, whatever is left on the original new car factory warranty is usually still in effect if there are problems.  See:

http://www.carsdirect.com/car-buyin...erstanding-change-of-ownership-coverage-plans

Of course, that article is a generality, you should check the specifics on any vehicle you are interested in.

X2. I buy all my vehicles in the 30-60K mileage range.
Bought a 2 year old Lexus IS-250 for $5K less than a new Camry for my wife. Much more durable car for the money. 30K miles on it then.