I had always assumed that buying a low mileage, recent year used car was a sure way to save money. I am no longer sure after buying a 2002 Toyota Camry with 10,000 miles. I was originally interested in a 2001 model, but was swayed to 2002 after learning of improvements in that model year. While the car was in excellent condition, I did not feel that I was being offered an obvious savings over a new car. The car had a sticker price that claimed true market value with pictures of NADA guides in the background. I became suspicious after not being able to get 2002 used car values on any of the big sites, including NADA's. A few days later, Kelley Blue Book added 2002's and I was able to determine the market value, which was a little more than $2000.00 less than the sticker price. After some dramatic negotiating/arguing, I was able to lower the price to the KBB value. An important footnote is that my credit, while on the mend, is not good enough for the 0% promotions, which would have clearly made a new car a better option. The dealership claimed to be doing me a favor by moving me from special finance (where I had had a very positive buying experience with the same dealership on a new Tundra purchase four months earlier). I was told I was now a Tier 3 , and could finance with Toyota Credit, which was supposed to be an honor . The finance person advised that the interest rate would be higher without an extended warranty, which I was interested in anyway, and that it would cost more and be for a shorter term because the car was used. I feel that a new car purchase would have come with a lower rate and better extended warranty, which would have made up for the $2500-or-so saved by getting a new 2002 or 2003. Any opinions / similar experiences?

I don't know alot about this, I only know that the newer the car the higher your insurance premiums.    A brand new car is the highest.   We once bought a demo car with few miles on it for that very reason, it was practically new, but we didn't have to pay new car insurance rates.

I don't know alot about this, I only know that the newer the car the higher your insurance premiums.    A brand new car is the highest.   We once bought a demo car with few miles on it for that very reason, it was practically new, but we didn't have to pay new car insurance rates. IMO, the primary advantage for buying used vs new is the lower insurance and taxes.  The other exception is when some actually enjoys repairing older cars and/or they don't factor in the cost of one's own time in doing such.

I don't know alot about this, I only know that the newer the car the higher your insurance premiums.    A brand new car is the highest.   We once bought a demo car with few miles on it for that very reason, it was practically new, but we didn't have to pay new car insurance rates. I can only speak of my limited experience, but after I bought a new car a couple months ago, I was terrified to find out what I'd be paying for insurance.  My wife drives a 96 Explorer 4X2, and full coverage for it is about $51/mo in our area (Baltimore, MD metro). Since my new vehicle was a 4X4 with a bigger engine, and brand new, I was worried.  Turns out the insurance on the new vehicle is $1.11 more a month than the Explorer.  I don't know why that is.. maybe because of the Explorer's tire issues, but I was shocked.  Happy, but shocked.

I had always assumed that buying a low mileage, recent year used car was a sure way to save money. I feel that a new car purchase would have come with a lower rate and better extended warranty, which would have made up for the $2500-or-so saved by getting a new 2002 or 2003. Any opinions / similar experiences? Yup, next time you're in the market for a used car, shop for cars that are being sold by private individuals, not dealers. You see, dealers have to make a profit. That's why they are in business. Dealers are also more sophisticated negotiators than the typical private individual and dealers also have business overhead to contend with such as fixing the car up, cleaning it, storing it on their lot, etc. These are costs that private individuals do not have. As a result, you're almost always going to get a better deal on an identical used car if you buy it direction from its owner than through a dealer. The down side is that you probably are not going to get a warranty of any kind on the car and you have to finance the entire cost of the car up front.

The dealership claimed to be doing me a favor by moving me from special finance (where I had had a very positive buying experience with the same dealership on a new Tundra purchase four months earlier). I was told I was now a Tier 3 , and could finance with Toyota Credit, which was supposed to be an honor . The finance person advised that the interest rate would be higher without an extended warranty, which I was interested in anyway, and that it would cost more and be for a shorter term because the car was used. Don't believe a single word you hear from a car salesman.  Emphatically, don't believe a single word you hear from a finance person about how good they are being to you, what an honor it is that they've chosen to finance you, how much money they are saving you, etc.  What a load of baloney! Everything is negotiable.  They can shave a couple of tenths of points off of the rate which will free up enough money to pay for the extended warranty.  The total amount financed is the same or more.  Or they might keep the same rate and give you 39 payments instead of 38.  There are numerous ways they can manipulate the numbers which may appear to make the deal better for you, but almost always makes it better for them. Go to the library and check out, Don't get taken every time by Remar Sutton.  Your next car buying experience will be better for it.