Why I bought a NEW car
I am 53 years old. Never in my life have I allowed myself to buy a car I truly love...until now. This is the story of how I allowed myself to make a huge purchase just for the joy of it. And it wasn't even a purchase I'd intended to make. Let me explain.
During the peak of the pandemic (early July 2020), I paid $35,990 for a used 2019 Mini Countryman SE All4. The Countryman — which I call a "Maxi Cooper" — isn't a bad car, but I regretted buying it almost immediately. I'd intended to replace my 2004 Mini Cooper with a newer version of the same model, but allowed myself to be talked into a compact SUV.
For two years, I drove the Maxi Cooper and tolerated it. It wasn't a bad car by any means, but it was a bad car for me. I'm not an SUV guy. I'm a small-car guy.
Last month, I took the Maxi Cooper for an oil change. While I was waiting, the dealer offered to buy it back from me. I wasn't expecting that.
As you probably know, the used-car market in the U.S. has been crazy for a couple of years. According to the U.S. Federal Reserve, prices on used vehicles are up 55% since July 2020. Prices for new vehicles have also increased during that time, but by only 18%.
Because I write about money, I'm aware that used-car prices are high, but I hadn't considered that I might sell the car I purchased only two years ago. I'm the sort of person who buys a car and keeps it for a decade or more. But when the Mini dealer told me they'd pay $33,000 for a car I'd bought 26 months earlier, I was intrigued.
I contacted one of my buddies, a former car salesman. "What am I missing here, Jeremy?" I asked. "This seems like a pretty good deal."
"It's not just a good deal," Jeremy said. "It's a miracle. It's as if you leased that car for $115 per month. You should take the offer. Now. Before they change their mind."
Before you read my story, you might want to read this similar story from Liz at Frugalwoods: Why we bought a NEW car. Here's a relevant excerpt:
"In normal economic times – or rather, in past economic times – used cars were remarkably cheaper than new cars, which made the depreciation on new cars astronomical. In other words, new cars would lose a tremendous amount of their value as soon as they were no longer new.
"Used cars, on the other hand, had a much more gradual depreciation curve, which meant you could buy a used car for a reasonable price and then, if needed, re-sell that used car at a reasonable loss. Currently, thanks to supply chain issues, a shortage of computer chips and inflation, used cars are no longer a deal."
How much does it cost to drive? Driving cost calculators and tools
My girlfriend recently bought a new car. After 23 years, she sold her 1997 Honda Accord to a guy who's more mechanically inclined than we are. Kim upgraded to a 2016 Toyota RAV4, and she loves it.
One of her primary considerations when searching for a new car was the cost to drive it. In her ideal world, she would have purchased a fully-electric vehicle but it just wasn't in her budget. The RAV4 hybrid was a compromise. According to fueleconomy.gov, it gets an estimated 32 miles per gallon. (And actual users report 34.7 miles per gallon.)
Kim's quest for a fuel-efficient car prompted me to revisit apps and online tools that help users track their driving and fuel habits. I've written about these in the past -- and, in fact, this is an updated article from 2008! -- but haven't looked into them recently.
Here's a quick look at some of my favorite driving cost calculators, tools, and apps.
Don’t buy a new car without this cheat sheet!
Congratulations — you’re about to snag a new ride! We’re assuming that you’ve already done some research: You know how much you can afford to spend, which car you want to buy, and the true market value (what other people are paying) for that car in your area.
And now you’re ready to buy. Follow these steps to get a good deal and make the car-buying process at the dealership as painless as possible. To help make it easier, download our cheat sheet and take it with you.