Hammer Time: Why Buy New?

Steven Lang
by Steven Lang

A reader writes:

“Would you have any idea on the auction value of a low mileage 2007-2009 Toyota Tundra CrewMax Limited 4×4 5.7? I have been looking to upgrade from my current 2005 Tundra to one of the new ones but hate all of the new car dealer shenanigans. Thanks so much for your time and response. I really appreciate it.”

Steve Lang responds:

More than welcome. For a 2007 model the cost would be 26 grand and up . . . which brings us to the bigger question. Why?

One thing that has amazed me over the years is that folks will spend major dough on something that their own ride can already do for a small micro fraction of the cost. If you end up getting the 2009, chances are you’ll go through a phase where the slightest ding or dent on it will drive you up the proverbial wall. When it comes to sweating the small stuff, owning a new car is a true bitch compared to a near-new car. You’ll have higher insurance, worse gas mileage, greater depreciation, tremendous opportunity cost, and, eight weeks later, nothing will be different in your life other than your bank account and that Toyota dealer you so hate.

My advice would be ‘Do Nothing’. When the local new car dealer tells you about a 2009 Nissan Versa they’re selling for $7990, and neglect to tell you the $1200 in BS doc fees and freight they have attached to their glorified sled, tell them you can already get the same damn car on Ebay or at an auction without the bogus bottom line.

When it comes to cars, the free market that is ‘No Reserve’ still works quite well. Now if we’re talking about banks, that’s another story.

Steven Lang
Steven Lang

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  • Turbo G Turbo G on Mar 14, 2009

    Thanks for the excellent tips and discussion. What amazes me are the high asking prices via private seller on the used Toyota trucks! It can be almost cheaper to get a new one...

  • John Horner John Horner on Mar 15, 2009

    Most one or two year old Toyotas and Hondas are not a good deal for the buyer because they depreciate so slowly. As several have already said, buying a two to three year old European luxury car can be a smart buy, as long as the thing doesn't end up burying you in servicing costs. I'm not usually an extended warranty buyer ... but would be on a high end euro car!

  • Tulsa_97sr5 Tulsa_97sr5 on Mar 16, 2009

    Quick trick to pull up a list of any of the ongoing series here, google search like site:thetruthaboutcars.com "Hammer Time: " will pull up a list

  • Luke Luke on Mar 16, 2009

    You can still get hosed on flood cars by legitimate dealers. My folks were shopping for a ~06 Jeep Grand Cherokee. Their local Chrysler dealer found a decent-sounding Laredo at an auction. They dropped it off in my parents' driveway for an inspection. Guess what? Every single visible fastener on that truck was coated with rust. Interior, exterior, everything. All the A/C hardlines under the hood were corroded. The bolts on the seat rails looked worse than a junkyard car. We pulled up the carpet under the rear seats and found a moldy sweat sock.

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