Buying new vs. used cars.

New vs used. Which car is right for you? Consider the following.

Owning a brand new car is exciting. But financially speaking, it makes more sense to buy a used car. As soon as you drive a new car off the lot, it loses a great portion of its value. This is because your car is no longer “new”.

New cars lose about 40% of their value within 3 years, then depreciation starts to slow down. Why not buy a used car and allow someone else to take that depreciation hit?

The previous owner will have absorbed the steepest part of the depreciation cycle. At that point the costs of owning and operating the car will be reduced. The money you save on depreciation will surely go a long way.

Another benefit of buying used is lower cost. By buying used you pay less. You will also save on financing costs, insurance premiums, registration and licensing fees. You don’t have to worry about paying sales tax.

As with everything else there are a few downsides to buying a used car. There are greater chances for costly unwarranted repairs. You may very soon have to do major maintenance on your car, including replacing tires, battery, brakes, muffler, and perhaps even the transmission.

A used car is usually less reliable. You don’t know exactly what you’re getting into and how the previous owner treated the car. However, every situation is different and some used models may actually be far more reliable than some new ones.

If you can pay cash, go the new car way. Enjoy the feeling of knowing you're the original owner of a new car in mint condition. Nothing can replace that feeling.

Otherwise do not hang your hat higher than you can reach. Practice financial prudence. Save your money and comfort yourself knowing that one day you will be able to afford that dream car. One day when money is no object.

Last Car News

True "sport" utility

BMWs in general are wonderful cars to drive, with impressive power and great handling which doesn't compromise the smooth ride. This 650i Convertible that I'm driving is no exception to that. Its got 360 horsepower, a 6-speed manual transmission and big grippy tires. And surprisingly, given the latest BMW designs, this car actually looks good.

The convertible top works very well, can even be operated at low speeds. The rear window powers up or down so it can be lowered with the top in place for nice ventilation, or left up when the top is down to act as an air deflector. At high speeds, with all the windows up, the wind barely rustles your hair.

So what's not to like? In a word, its I-Drive. I-Drive is BMW's system of using a single knob to access all of the standard driver controls, including ventilation, navigation, audio system, etc... I-Drive turns the ultimate driving machine into the ultimate annoyance.

It took me two days to figure out how to adjust the base on the stereo, and its at least three menus into the system. Changing stations is just as difficult, although I think there is a way to change them via steering wheel controls.

Everytime I got into the car, I would set it to "Sport" mode (tightens the suspension, improves steering response), I would turn off the stability control, set the navigation screen and trip computer screen the way I want them, and if it was raining, I would turn on the automatic wipers. After shutting the car off and returning later, I would have to do all of this over again. Extremely frustrating.

There is no reason I can see for this complicated way of accomplishing simple tasks like adjusting audio controls except for the fact that they had the technology to set it up this way. Technology for technology's sake is not useful.

The 650 I was driving runs about $85,000. As much as I love driving this car, the annoying I-Drive would make me look for an alternative.

--Perry Stern

BMW 6-Series - Annoying German Engineering

The FJ Cruiser is Toyota’s all-new retro-styled off-roader. I’ve had the opportunity in the past to take the FJ off-road, and found it to be extremely capable. However, this was my first chance to see how it takes on day to day driving.

The bold styling of the new FJ Cruiser is a big attention getter. Available in a number of bright colors, my tester was painted Voodoo Blue. It seems that everything about this vehicle is big: it’s got big tires, large grille, oversized mirrors trimmed with running lights (carry over from the original concept) – even the door handles are super sized. And one-upping all of the competition, the FJ Cruiser has three front windshield wipers, where all others just have two.

This big theme carries over to the interior, where knobs were designed to be operable while wearing gloves. Unfortunately, the back seat is not as large as everything else. Rear seat passengers are a bit cramped, and given the small rear windows, it’s also somewhat claustrophobic back there. Access to the rear seat is easy with rear-hinged access doors unless you’re parked in a narrow parking spot, in which case it’s almost impossible to access the rear seat. Cargo space is plentiful, and rear seats can be folded flat to extend the space.

The FJ Cruiser has plenty of power from its 239-hp V6, and it rides rather smooth on the pavement. Handling is not bad for a big SUV, however it is not terribly maneuverable in parking lots. The FJ needs almost 42 feet to turn around compared to a Hummer H3 that can make the same maneuver in five fewer feet. Visibility is also an issue – there is not much window between the back door and the rear of the vehicle. A very large blind spot.

Overall, Toyota has built the FJ Cruiser with the purpose of handling severe off-roading. And while a higher percentage of FJs will leave the pavement (intentionally) than most other SUVs, it’s still likely that most will never leave the road.

--Perry Stern