New or Used: First World Problems!

Travis writes:

This might seem a little frivolous, but this is a genuine dilemma that I’m currently facing right now. I’ve been looking to replace a 2006 Pontiac GTO that I’ve had for 4 years. It’s been fun, comfortable, and mildly expensive to maintain in the last year with random small but non-typical GM parts-bin stuff falling apart. I got into an accident a few days ago which pushed around the engine enough to declare the car a total loss. Lucky me me for being safe, also lucky me for not having to sell my car while also getting partial refunds on the $2700 that’s been dropped into it in the past 3 months.

I was planning on replacing it with a low mileage 2011 Mustang GT with the Brembo package. A smallish loan would cover the distance between the two cars pricewise, and I’d have a fun newer car that fulfilled everything the old one did while still being under bumper to bumper warranty.

Insurance is giving me more than I had expected and I have the option to buy back the GTO and sell it to a salvage yard if the price difference is worth the hassle. With the extra cash, the reimbursement of repairs, and possible profit on the vehicle itself, with that same loan I’d be taking out, I could afford a new 2013 GT with the Brembos and have at least a grand or two left over. Being able to comfortably afford a nice new vehicle is not something I’ve ever really had the option of in my life. My family is big on hand-me-downs, and when I got the GTO I took it over the option of getting something reasonable like a new Honda Fit. In 3 or 4 years, I’ll be inheriting a 2011 Corvette Grand Sport from the father. I know these are first world problems, and I can just imagine the jokes already but I’m seriously at a bit of a loss. The practical side of me is saying get a 2011 and don’t take out a real loan, find cash elsewhere to make up the small difference. The fun side of me is saying spoil yourself with something new that you can afford and don’t worry about anything falling off and eating your wallet for years to come. The super-sensible side of me is saying get a slightly used Malibu LTZ with a 2.4, pocket a load of cash, don’t take out a loan, and don’t enjoy driving for 3 or 4 years until you get a free corvette. What say you two?

Also, the Corvette is an automatic.

Steve answers:

Two recommendations for you.

The first is to do a little research. In the salvage auction business, there are two companies that are the 800 pound gorillas. Copart and Insurance Auto Auctions.

I would go to their web sites, call up the local branches, and see if you can get a good general idea of the vehicle’s worth. Then I would arrange the vehicle sold at one of their auctions. That way you have a large group of salvage yards, rebuilders and exporters bidding on the vehicle instead of just one.

The second is to wait for the Corvette. I would find a vehicle that satisfies your fun-o-meter while giving you a bit more practicality for whatever future needs, unexpected or otherwise, may arise. A three old sport/luxury vehicle with low miles that still comes with a healthy CPO warranty would be a pretty strong consideration.

The brands and models are endless. Audi, Acura, BMW, Cadillac, Jaguar, Lexus, Mercedes, Volvo. You may even like a Lincoln or a Saab. I would shop around a bit and find yourself a ride worth keeping for at least the next three to five years.

Sajeev answers:

I’d buy what you want now, and immediately sell Dad’s slushbox Corvette when you get it…especially if it doesn’t have Magnaride.

Or buy some beater for 3-4 years, get Dad’s Vette and sell ’em both for a Z06/ZR1 with Magnaride. But that’s just me.

Sure, these are total No biggie: we do this all the time. When it comes to money and non-appliance issues, you really need to decide what you want to drive. Mustangs are great all-around machine on the street, but a Corvette is better elsewhere. It’s time to buckle down and decide what sporting machine you’d actually want to part with your money for. That’s a decision for you.

That said, off to you Best and Brightest!