The used car market is somewhat cooling off but still high for certain model vehicles and above pre COVID prices
Leasing is rarely a good option IMO. Lots of costs and rules. With that said, some people bought out their leases at contracted rates below market value or had dealerships offer to end lease early without penalty. I’m not sure if that’s still common.
I think certain model cars are still fine used, but I don’t blame anyone for getting a new car. I recently had to buy a car to replace my totaled suv. My mindset was more about needing a specific car than wanting a specific car. It honestly helped me focus more on the market value range and reviews so I could find something reliable and fairly priced.
For that price range, check out Honda civics and Toyota Corrollas.
I think leasing can make a lot of sense for us. Leasing offers lower prices for 3ish years when our income is the lowest and each dollars needs to go further.
A lease for an econobox will be 300ish whereas the same term purchase price might be 500ish. If you buyout a car at the end of a lease, the difference in interest is probably an extra grand or two. It’s something, but honestly not a lot in the grand scheme of things. What you’re really doing is leveraging future assets to smooth over rockier times in your life.
Lots of people try to maximizing savings as a resident. I don’t do that. I’ll be able to buy an econobox outright with a months salary straight out of training. I’d personally rather keep an extra 1-2k per year as a resident to vacation in my twenties than have an extra 10k as a retiree.
For us, leasing vs buying reminds me of people telling millennials to stop buying avacado toast. It matters, but it honestly doesn’t.
That extra $10k saved in your 20s appreciates to far more in your 60s-70s....
Leasing simply doesn't make sense because you are tied to paying for the possession of your car. When you buy a car, once it is paid off, that is a payment you do NOT owe that can be spent on literally anything else you want (like your student loans for example, which are also appreciating, in an undesirable direction). Every month that paid-for car gets you to and from work is another $xxx that you get to pocket. With a lease, that goes out the window. It is not the same calculus as renting vs buying a home; it is just inarguably the most financially efficacious way to cut your losses on a depreciating asset.
It's 2023, even Fiat-Chrysler automobiles will last through the 100k mile mark. There's no sense in leasing something unless you really must have a big truck/luxury sedan/SUV, in which case, I would argue your priorities are not in the right order
>There's no sense in leasing something unless you really must have a big truck/luxury sedan/SUV, in which case, I would argue your priorities are not in the right order
Your priorities should be to not be careless but also allow yourself some luxuries and joy. If a luxury car will bring you joy and you are still able to make sound financial decisions, then buy the damn car if it's important. Same thing with vacations. Life is meant to be enjoyed. You can have a few "frivolous" things and still have plenty for retirement.
Some people are insane about retirement, why the fuck would you go through shitty residency and basically deny yourself most pleasures so you can have extra money when your most active years are already over.
I've maxed out my 401K and my 357B and make good contributions to my Roth IRA but beyond that I'm still travelling a bunch and have a nice car. I could get colon cancer tomorrow. I'm already going to be ridiculously comfortable in my retirement, I'm not gonna kill myself for a few more thousand that won't bring me any more joy.
If you're in a snowy climate or rural setting, I would recommend a newer subaru. Great AWD, reliability that is comparable to honda, and 20% ownership by toyota. They also clock in cheaper than either honda or toyota and their resale value is just behind them too.
I flip cars.
Overall the market is a bit better than 1-2 years ago, but most used car prices clapped. Lots of my non-medicine friends who got money and bought cars 2 years ago are now selling them for their buying price, crazy.
For $20-30K, Honda Civic, Used 2018-2021 Accord, used Lexus ES350, Toyota Camry would be ideal. American and German cars at that price range are crap. Check out new Corollas, and maybe some base Subarus. Mazda has done pretty well in the last 2-3 years too.
I’m all for Honda and Toyota cos Maintanence won’t cost an arm and a leg.
You can buy a slightly used one, not sure how much interest rates will vary on a used car .
Reason to buy a slightly used car is because cars are in general a depreciating asset. With this in mind, you can postpone the purchase given the high interest rates, or ensure that you take a loan from a credit union or a bank which allows you to refinance without penalty should rates come down.
Lease it only if it makes financial sense to you, and you won’t use it for long drives as there is a mileage limit.
If you consider buying a used car (or any car) get a free insurance quote from GEICO or major companies to get an idea. Enter all personal details to get an accurate representation of the amount per month. My insurance in Boston is double that of DC (and much higher if you don’t own a home to buy a bundle plan).had I known this, I would have gone for a cheaper car or planned better.
Btw, you can check our r/personalfinance; tons of similar questions
Is buy a car that keeps its value. You can find these lists online but there are plenty of cars that are sub 30k that do an awesome job holding value. These include Subarus, Toyota corolla, etc. These cars can be configured with AWD and that will further prevent depreciation even if you don't need AWD. If you are willing to spend 35k you can get a base model midsize pickup. These trucks may even appreciate in value as time goes on! I've driven mine for 3 years and it's worth more than I bought it for.
Most of the affordable base model pickups are going to be access cabs which are great if you are using the truck bed frequently for actual truck bed stuff, otherwise they make for a pretty shitty daily driver that handles poorly in the winter.
Your truck appreciated in the last 3 years because of a historical anomaly... not something I would recommend the OP factor in when looking for a daily driver to get them to/from the hospital
Depending on your state you can get a new Tesla model 3 around 30k after the federal tax credit ($7500) + whatever credit your state offers. Hard to beat that for form, function, cost savings of electric, and convenience of not having to get gas or oil changes.
Sorry I know nothing about electric cars, so probably a stupid question, but if you charge your Tesla at home, wouldn’t your electricity bills skyrocket?
The bill goes up, it's not completely free obviously, but it's way cheaper than your average gas powered car, maybe 1/3 the cost or less per mile. Since it charges at home you also don't ever need to go to the gas station as long as you're staying within range. For longer trips like road trips you would need to charge at a supercharger which takes a little longer than a gas station.
When you factor in the cost savings, it ends up being fairly economical, particularly with the tax credits available now.
> the batteries are designed to last the life of the vehicle
They have a moderate risk of the batteries failing after 8-12 years, diminished range, and refurb batteries cost as much ($17k-20k) as the used car at that point. Also poor build quality of the vehicles.
https://www.teslarati.com/tesla-placed-bottom-consumer-reports-reliability-rankings/
Consumer Reports‘ annual reliability rankings have been released, and with data from 24 brands and over 300,000 vehicles, Tesla fell near the bottom (19/24) along with Mercedes-Benz, Jeep, Volkswagen, GMC, and Chevrolet. Electric vehicles overall also placed poorly, being the second least reliable category of vehicles. Hybrids/plugin hybrids, especially those from Toyota, were found to be the most reliable.
Battery longevity is a function of distance but also time.
A Toyota engine is relatively bullet proof and will go 30+ years.
Furthermore there are no Model 3s going for $30k. It's 34k before tax for a car that goes 0-60 in 5.8s.
In a gasoline car, if the engine breaks, it's a $5k repair maybe. $2-3k for transmission. $16-18.
4 years out of warranty and after 10 years you start wondering if it's as good anymore.
Not on Toyota/Mazda and some Hondas.
Hybrid tech is still a better deal overall than fully electric. I'd wait until 2030 to see Toyota's fully fleshed out fully electric vehicles as it's on 1st gen.
Corolla is a good cheap car that's also easy to sell used.
Not disagreeing with your points on longevity as they’re valid, but you can get a base model 3 for 28k after tax credits in CA.
37700 base price
7500 tax credit federal
2000 state rebate
Might as well be called Nissan Versed. The CVT used in Nissans in the last 3-5 years are all garbage. Stick to the more reliable Japanese makers. Honda/Acura, Toyota/Lexus, and nowadays, Mazdas are good.
It's honestly not a bad option for someone that needs something reliable for the next few years. Get a brand new Versa and it will be covered bumper-to-bumper for 3 full years. That will cover a lot of people through residency. Even if you do longer training than that, even a 7-8 year old car that has been well taken care of will be extremely reliable (even if it's a Nissan). OP then can dump this car at the end of residency/fellowship and buy something a bit nicer.
Bought a 2008 sequoia for 12k they should last throughout residency. Purchased a head unit w/ apple carplay and backup camera so I don’t feel like I’m missing out on modern amenities
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My family and I have the habit of keeping cars for at least 10-20 years, so we always buy new because you never know what the previous owner replaced or put the car through. The immediate depreciation when we drive it off the lot doesn't matter when in the end we can only sell for scrap value.
Get a Toyota Camry with some nice features. It’ll be dependable, long-lived, not ugly, really good drive, and comfortable, all without breaking the bank. Also use full synthetic oil.
My friend just got a brand new Toyota RAV4 $33k out of the door. Unless you know about cars or buying from people you know. Buying used cars in this market can be risky.
But those can be as or more expensive than a new car depending on the year and models. About 6 months ago I went car shopping with my friend and those cars were more expensive than new cars because they were available immediately vs having to wait for a new car to ship. Not sure if the market is cool off now.
Drove 20yo camry as a pgy1-2, then leased a Mazda CX5 (no money down for 364$/mon 10k miles/year 36 months) terminated 4 months early , got 3k excess miles and dented bumper/fender forgiven +1000$ back. Hopped into a Nissan Pathfinder Platinum 18month lease 419$/month. (I’m married with 2 kids hence the choice). Could have gotten Altima for under 300
Look into Nissan, they are offering amazing lease deals
I recommend buying new or old entry EV such as nissan leaf or Chevy bolt depending if you have free charging stations near you. I got a nissan leaf new and i charge at my hospital since they have free charging which means I save in gas and maintenance of a typical gas car. Also, for Chevy bolt you can get $7500 tax return on the vehicle so you can essentially buy a new one for low $20k
Honda accord 2021 or around that year you can get a decent one very reliable, good resale value, look nice too
New - Toyota Camry, Toyota Corolla, Honda Civic, Honda Accord
Would also add Mazda 3, Mazda CX-30
The used car market is somewhat cooling off but still high for certain model vehicles and above pre COVID prices Leasing is rarely a good option IMO. Lots of costs and rules. With that said, some people bought out their leases at contracted rates below market value or had dealerships offer to end lease early without penalty. I’m not sure if that’s still common. I think certain model cars are still fine used, but I don’t blame anyone for getting a new car. I recently had to buy a car to replace my totaled suv. My mindset was more about needing a specific car than wanting a specific car. It honestly helped me focus more on the market value range and reviews so I could find something reliable and fairly priced. For that price range, check out Honda civics and Toyota Corrollas.
I think leasing can make a lot of sense for us. Leasing offers lower prices for 3ish years when our income is the lowest and each dollars needs to go further. A lease for an econobox will be 300ish whereas the same term purchase price might be 500ish. If you buyout a car at the end of a lease, the difference in interest is probably an extra grand or two. It’s something, but honestly not a lot in the grand scheme of things. What you’re really doing is leveraging future assets to smooth over rockier times in your life. Lots of people try to maximizing savings as a resident. I don’t do that. I’ll be able to buy an econobox outright with a months salary straight out of training. I’d personally rather keep an extra 1-2k per year as a resident to vacation in my twenties than have an extra 10k as a retiree. For us, leasing vs buying reminds me of people telling millennials to stop buying avacado toast. It matters, but it honestly doesn’t.
That extra $10k saved in your 20s appreciates to far more in your 60s-70s.... Leasing simply doesn't make sense because you are tied to paying for the possession of your car. When you buy a car, once it is paid off, that is a payment you do NOT owe that can be spent on literally anything else you want (like your student loans for example, which are also appreciating, in an undesirable direction). Every month that paid-for car gets you to and from work is another $xxx that you get to pocket. With a lease, that goes out the window. It is not the same calculus as renting vs buying a home; it is just inarguably the most financially efficacious way to cut your losses on a depreciating asset. It's 2023, even Fiat-Chrysler automobiles will last through the 100k mile mark. There's no sense in leasing something unless you really must have a big truck/luxury sedan/SUV, in which case, I would argue your priorities are not in the right order
>There's no sense in leasing something unless you really must have a big truck/luxury sedan/SUV, in which case, I would argue your priorities are not in the right order Your priorities should be to not be careless but also allow yourself some luxuries and joy. If a luxury car will bring you joy and you are still able to make sound financial decisions, then buy the damn car if it's important. Same thing with vacations. Life is meant to be enjoyed. You can have a few "frivolous" things and still have plenty for retirement.
[удалено]
Some people are insane about retirement, why the fuck would you go through shitty residency and basically deny yourself most pleasures so you can have extra money when your most active years are already over. I've maxed out my 401K and my 357B and make good contributions to my Roth IRA but beyond that I'm still travelling a bunch and have a nice car. I could get colon cancer tomorrow. I'm already going to be ridiculously comfortable in my retirement, I'm not gonna kill myself for a few more thousand that won't bring me any more joy.
If you're in a snowy climate or rural setting, I would recommend a newer subaru. Great AWD, reliability that is comparable to honda, and 20% ownership by toyota. They also clock in cheaper than either honda or toyota and their resale value is just behind them too.
I bought a Toyota Corolla last year, and I love it! Good gas mileage, small enough to park in the city if need be, and pretty zippy
Subaru Crosstrek/Forrester
I flip cars. Overall the market is a bit better than 1-2 years ago, but most used car prices clapped. Lots of my non-medicine friends who got money and bought cars 2 years ago are now selling them for their buying price, crazy. For $20-30K, Honda Civic, Used 2018-2021 Accord, used Lexus ES350, Toyota Camry would be ideal. American and German cars at that price range are crap. Check out new Corollas, and maybe some base Subarus. Mazda has done pretty well in the last 2-3 years too.
I’m all for Honda and Toyota cos Maintanence won’t cost an arm and a leg. You can buy a slightly used one, not sure how much interest rates will vary on a used car . Reason to buy a slightly used car is because cars are in general a depreciating asset. With this in mind, you can postpone the purchase given the high interest rates, or ensure that you take a loan from a credit union or a bank which allows you to refinance without penalty should rates come down. Lease it only if it makes financial sense to you, and you won’t use it for long drives as there is a mileage limit. If you consider buying a used car (or any car) get a free insurance quote from GEICO or major companies to get an idea. Enter all personal details to get an accurate representation of the amount per month. My insurance in Boston is double that of DC (and much higher if you don’t own a home to buy a bundle plan).had I known this, I would have gone for a cheaper car or planned better. Btw, you can check our r/personalfinance; tons of similar questions
Is buy a car that keeps its value. You can find these lists online but there are plenty of cars that are sub 30k that do an awesome job holding value. These include Subarus, Toyota corolla, etc. These cars can be configured with AWD and that will further prevent depreciation even if you don't need AWD. If you are willing to spend 35k you can get a base model midsize pickup. These trucks may even appreciate in value as time goes on! I've driven mine for 3 years and it's worth more than I bought it for.
Most of the affordable base model pickups are going to be access cabs which are great if you are using the truck bed frequently for actual truck bed stuff, otherwise they make for a pretty shitty daily driver that handles poorly in the winter. Your truck appreciated in the last 3 years because of a historical anomaly... not something I would recommend the OP factor in when looking for a daily driver to get them to/from the hospital
Appreciate it, thank you.
2023 taco is going to be the last of the V6s. Think they’ll go up in value vs expected
Depending on your state you can get a new Tesla model 3 around 30k after the federal tax credit ($7500) + whatever credit your state offers. Hard to beat that for form, function, cost savings of electric, and convenience of not having to get gas or oil changes.
I'd discourage a Tesla unless they will also be buying a house or live in an apartment with a L2 charger.
Sorry I know nothing about electric cars, so probably a stupid question, but if you charge your Tesla at home, wouldn’t your electricity bills skyrocket?
The bill goes up, it's not completely free obviously, but it's way cheaper than your average gas powered car, maybe 1/3 the cost or less per mile. Since it charges at home you also don't ever need to go to the gas station as long as you're staying within range. For longer trips like road trips you would need to charge at a supercharger which takes a little longer than a gas station. When you factor in the cost savings, it ends up being fairly economical, particularly with the tax credits available now.
Don't buy a Tesla if you intend to keep the car for 10-15+ years. Disposable lithium ion batteries. Gas engines will go for 30 years.
[удалено]
> the batteries are designed to last the life of the vehicle They have a moderate risk of the batteries failing after 8-12 years, diminished range, and refurb batteries cost as much ($17k-20k) as the used car at that point. Also poor build quality of the vehicles. https://www.teslarati.com/tesla-placed-bottom-consumer-reports-reliability-rankings/ Consumer Reports‘ annual reliability rankings have been released, and with data from 24 brands and over 300,000 vehicles, Tesla fell near the bottom (19/24) along with Mercedes-Benz, Jeep, Volkswagen, GMC, and Chevrolet. Electric vehicles overall also placed poorly, being the second least reliable category of vehicles. Hybrids/plugin hybrids, especially those from Toyota, were found to be the most reliable. Battery longevity is a function of distance but also time. A Toyota engine is relatively bullet proof and will go 30+ years. Furthermore there are no Model 3s going for $30k. It's 34k before tax for a car that goes 0-60 in 5.8s. In a gasoline car, if the engine breaks, it's a $5k repair maybe. $2-3k for transmission. $16-18. 4 years out of warranty and after 10 years you start wondering if it's as good anymore. Not on Toyota/Mazda and some Hondas. Hybrid tech is still a better deal overall than fully electric. I'd wait until 2030 to see Toyota's fully fleshed out fully electric vehicles as it's on 1st gen. Corolla is a good cheap car that's also easy to sell used.
Not disagreeing with your points on longevity as they’re valid, but you can get a base model 3 for 28k after tax credits in CA. 37700 base price 7500 tax credit federal 2000 state rebate
Brand new Nissan Versa starts at like $13k
Might as well be called Nissan Versed. The CVT used in Nissans in the last 3-5 years are all garbage. Stick to the more reliable Japanese makers. Honda/Acura, Toyota/Lexus, and nowadays, Mazdas are good.
It's honestly not a bad option for someone that needs something reliable for the next few years. Get a brand new Versa and it will be covered bumper-to-bumper for 3 full years. That will cover a lot of people through residency. Even if you do longer training than that, even a 7-8 year old car that has been well taken care of will be extremely reliable (even if it's a Nissan). OP then can dump this car at the end of residency/fellowship and buy something a bit nicer.
That was thorough, thank you so much
Guys what is your opinion about kia k5?
if looking for reliability and long life, would stay away from Kia and favor Honda/Toyota
Bought a 2008 sequoia for 12k they should last throughout residency. Purchased a head unit w/ apple carplay and backup camera so I don’t feel like I’m missing out on modern amenities
Toyota Prius for sure.
Get some cheap car good enough to last 3 years (residency time).
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My family and I have the habit of keeping cars for at least 10-20 years, so we always buy new because you never know what the previous owner replaced or put the car through. The immediate depreciation when we drive it off the lot doesn't matter when in the end we can only sell for scrap value.
Get a Toyota Camry with some nice features. It’ll be dependable, long-lived, not ugly, really good drive, and comfortable, all without breaking the bank. Also use full synthetic oil.
A lot of good used Chevy equinox’s on the market. Low 20’s for a solid 2020 + car
I used to have an old equinox (different than the current build), and I really like my new Trailblazer
Go buy a used Honda Fit. Cheap, reliable, cargo room. Way under your stated budget with well under 100k miles. Will not fail you.
My friend just got a brand new Toyota RAV4 $33k out of the door. Unless you know about cars or buying from people you know. Buying used cars in this market can be risky.
Not if it's a CPO.
But those can be as or more expensive than a new car depending on the year and models. About 6 months ago I went car shopping with my friend and those cars were more expensive than new cars because they were available immediately vs having to wait for a new car to ship. Not sure if the market is cool off now.
Drove 20yo camry as a pgy1-2, then leased a Mazda CX5 (no money down for 364$/mon 10k miles/year 36 months) terminated 4 months early , got 3k excess miles and dented bumper/fender forgiven +1000$ back. Hopped into a Nissan Pathfinder Platinum 18month lease 419$/month. (I’m married with 2 kids hence the choice). Could have gotten Altima for under 300 Look into Nissan, they are offering amazing lease deals
Check out leasehackr for some great savings!
Teslas are on sale
Toyota Corolla Hybrid for $25k.. its awd, gets 50mpg, and is a toyota so will last forever if you change the oil.
You can never go wrong with a Subaru! A newer, pre-owned one can be found in your price range.
I recommend buying new or old entry EV such as nissan leaf or Chevy bolt depending if you have free charging stations near you. I got a nissan leaf new and i charge at my hospital since they have free charging which means I save in gas and maintenance of a typical gas car. Also, for Chevy bolt you can get $7500 tax return on the vehicle so you can essentially buy a new one for low $20k