Help me decide on a car...Corolla/Civic

[inspireone]

Hi Guys,

I am torn on what to choose. I am looking to buy a car (old / new). Here are my options

1. 2006 Civic LE with 25,000 miles asking price 11,500$
2. 2007 Corolla LE (2 owners) (without cruise and ABS) 17,000 miles asking price 11,500$
3. New Corolla 2010 LE (with cruise and ABS) 15,000$ (documentation 250$...whats this anyway?)

the new Corolla 2010 looks to be a good deal but not sure if buying at that price would be a good deal as the first couple of years the depreciation will be max..please let me know your thoughts

Thanks

[heavylee]

Do the used cars come with any warranty?

[dmyh]

Personally, if i were financing the purchase, the 2010 might have better financing rates (maybe 0%), which would be more attractive than financing an 06 or 07 at around 4%.

if you are paying cash, then get the 06 or 07. if the carfaxes are clean, and both cars are about the same condition, i would get the 07. (i dont use cruise control).

just my thoughts. you really can't lose, you have some solid choices. it looks like it will come down to financing and what you are willing to pay.

[bzhayes]

.....the first couple of years the depreciation will be max...

Well you can see how much depreciation is. It looks like $3500 in 3 years... not really that high. Everyone takes it for fact that depreciation is enourmous when you drive it off the lot. I just don't see it when I shop for Toyotas or Hondas. I favor buying used Toyotas to used Hondas, because in my experience people who drive Hondas drive their cars harder than people who drive Toyotas. That means more wear and tear on the car.

Of course, it looks like the used car prices are pre-negotiation and the new car price is post-negotiation (or mid-neg.). If you can get a good deal on the used one, then go for it, otherwise buy the new one. Alternatively I've had decent luck on "just off the lot" used Toyotas. Not many people out there looking for an '09 or '08 so if you can find one, they can be a great deal.

[inspireone]

Thanks guys, appreciate your inputs. I will be paying by cash. However if I take 2010 Corolla i have the option of financing at 2.9% for 3 years..not sure if i can park my money for 3 years and get a better rate.

The used car rates are also post negotiation, max i can knock off a hundred. But the advantage of having a 2007 corolla is that it has one year manufacturers warranty left on it and honda doesnt have any warranty..

Will the Corolla or Honda depreciate more than 1000$ per year after 3 years, if not i think its better to buy a used car than new as new car depreciates at 1500$ per year.

Any thoughts would be appreciated

Well you can see how much depreciation is. It looks like $3500 in 3 years... not really that high. Everyone takes it for fact that depreciation is enourmous when you drive it off the lot. I just don't see it when I shop for Toyotas or Hondas. I favor buying used Toyotas to used Hondas, because in my experience people who drive Hondas drive their cars harder than people who drive Toyotas. That means more wear and tear on the car.

Of course, it looks like the used car prices are pre-negotiation and the new car price is post-negotiation (or mid-neg.). If you can get a good deal on the used one, then go for it, otherwise buy the new one. Alternatively I've had decent luck on "just off the lot" used Toyotas. Not many people out there looking for an '09 or '08 so if you can find one, they can be a great deal.

[dmyh]

i dont think the honda or toyota will depreciate $1k after the first couple of years.

you sound like you are leaning towards the used car. it's a smart financial choice.

dont forget if you buy the new car 2010 it should be eligible for some tax write off this year...

[needabuck]

The Corolla looks like the best option of the 3, although I would prefer the Civic. 1st car 95 civic. I've had Accord, and now I'm in a Toyota 4runner after my last car 00 Camry. Loved them all.

If you are paying cash, have you given any thought to not paying so much and getting a slightly older car? I sold my 00 Camry for a 98 4runner and still had to pay 3k difference. (I needed it for work). The 4runner had 100k miles on it, 142k now. I plan to keep it rolling for 200k at least. I've put tires, a starter, oil changes, and replaced spark plug and wires and that's been it. (all total about $1k in maintenance). I just hate seeing peeps pay too much for anything (especially a car). Good Luck.

[Mike Swinney]

Your buying a Honda you can't go wrong but do some dealing with the salesman