349: When to Buy New vs. Used and is That Car Repair Worth the Cash?

Oct 31, 2022

01:18:00

forum

Ask episode

view_agenda

Chapters

auto_awesome

Transcript

info_circle

Episode notes

The new vs. used car debate has been going on for as long as automobiles have existed. For almost the entirety of time when cars were being bought and sold, it seemed like a responsible, frugal decision to buy used, save up some money, and take the repairs with the deal. But inflation has changed this debate in 2022 (and beyond). Used car prices are high—sometimes even higher than new cars—prompting shoppers to reconsider what makes the most financial sense.

In the first half of this show, we talk to Liz Frugalwoods, financial blogger and borderline professional at buying and selling cars. She recently made the bold decision to buy new—a shock to many of her readers. How could Liz, a financial independence expert, do something as careless as buying a brand-new car? Had she given up on the path to frugality? Not exactly. Liz shares some good reasons why buying new instead of used makes more sense, especially today.

To close out the episode, we bring on local mechanic Jesse Johnson, who gives a brief masterclass on buying, selling, and maintaining cars. As a mechanic with decades of experience, he knows exactly what car owners do to slowly destroy their daily drivers. He also knows how to get the most bang for your buck and when it’s the right time to sell that clunker sitting in your driveway.

In This Episode We Cover

The reasoning (and math) behind buying a new car vs. buying a used car

Taxes, registration, fees, and other trade-offs when buying new vs. used

The most important questions to ask yourself when shopping for a vehicle

Tips when selling a used car and the #1 thing to NEVER do

What parts of a car are worth repairing and which can wait

How to find a great mechanic in your area and get a free car wash

Trade-in tips and what to know to get the most out of a dealer

And So Much More!

Links from the Show

Find an Investor-Friendly Real Estate Agent

BiggerPockets Money Facebook Group