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.
Wasn’t he asking the auction price of a slightly used one to buy used, not should he get a new one? Did I miss the question or did you?
You might be a tick slow with your advice, Steven. Many former used car sales pros now inhabit the wonderful world of Ebay and with the opportuntity to make a quick $10k purchasing late model flood cars by simply laundering the titles, it is purely caveat emptor land on the web. Three times as much via craigslist or the local on line sales digest. I understand the work that Carfax and others do, but there is too much larceny afoot for them to keep up. If you do chose to buy on the Wild West Web, don’t even think of buying a car without a complete Carfax.
That picture really reminds me of Bastok. I can even hear that dang music in my mind right now. Of course my (main) character was a Galka from Sandoria. I digress (Final Fantasy XI).
New? It’s new! With a warranty. How nice is that? It’ll cost ya though lol.
Sometimes, depreciation can be your friend. Especially when you are considering a used Mitsubishi EVO.
Sort of similar situation here too.
I need a new truck too; I want a Toyota Tacoma crew cab 4×4 TRD, preferably with manual. That’s very hard to find used. I can find used automatics around $20k. A new truck in the configuration I want would probably close closer to $30k. Big difference.
I could pay cash for the used truck, but since we’re about to double our house size, I’d rather put that cash towards the house, and finance, and take the interest write-off, keep my cash earning a little interest until it goes into the house, and sell the old truck.
I am looking into financing a private party used truck too, but I absolutely hated selling another car of mine to a private party buyer who financed, and, the interest rate is higher from my bank vs. interest rate on new. But…I think saving $10k off the top is probably worth the inconvenience.
Or am I dumb and should I just pay cash for the truck?
I strongly agree with the Carfax/Autocheck reports. I use that for everything I sell and even use them to get the few vehicles I buy on the side. The ‘How To Buy A Used Car’ series goes into great detail about using Carfax even before bidding on a vehicle on Ebay or at an auction.
A strong feedback rating (higher than 95% and at least thirty or so feedbacks) along with an independent inspection of the vehicle before payment will keep most folks far away from the few slimeballs that are out there.
A 2007 at the time of that writing was going for that price (Robert rustled it from the weeds of drafts I have). It’s still not too far away from the current valuation given all the features that particular model has.
I am glad the Tacoma is being mentioned. I think Toyota does a much better job with it than with the Tundra if you don’t absolutely require a big rig, in which case an F150 or Silverado are both better, cheaper choices anyway.
Unless you have managed to use it up already, I am with Steve in recommending that you keep the last gen Tundra. It might not be as rugged overall, but given the teething problems with the new model, it should be more reliable. Again…Tacoma is better.
The luxury car arena is a perfect example of where buying used is the smart move. Let someone else bear the depreciation of the first few years. Why spend $80K on a new A8 when they can be had for less than half that price if you go for a model several years old. No one can usually tell the minor differences anyhow between some of the years. The S-Class and the 7-Series are no different. The nice thing about these vehicles is that you are getting state-of-the-art safety, top-of-the-line stereos and seats, along with a requisite V8 (or V12 if your gas envelope is crazy fat).
You usually have an owner that has had it serviced regularly and takes good care of it. If you go the Certified Pre-Owned route through the dealer you’ll pay more, but you will also get a pretty good warranty that usually covers it out to 100K and a couple of years past the purchase. Parts and repairs are expensive beyond that, but you do get a lot of vehicle for the price. The money saved could easily go toward many of those issues. The CPO car from a dealer is going to have someone stand behind it more so than an individual.
Try comparing a $30K new Honda Accord to a used A8 for about the same money. I know firsthand because I have both (08 and 04, respectively). I have already tired of the boring Accord, even though it has had not a single problem in over a year of ownership. The styling, particularly the rear-end, door handles and creases have not worn well with me. I also just don’t like to drive it near as much as the A8. I guess I figured that, as a lifetime Honda owner, I’d go the safe route and have at least one rock-solid reliable vehicle. The A8 has an incredible sound system, rides like a dream, has great V8 torque and engine growl, is much quieter and has so many more features and room. It’s also a safer vehicle with, to me, the most elegant styling of the big luxury sedans. It’s not nearly as reliable, but I have not tired of it yet. It looks brand new. Most people have no idea that it has 45K miles and is an 04. It was a one-owner car that had a full Carfax and a gazillion-point checklist of items addressed. Audi replaced the front rotors/brakes, battery, and put new Pirellis all around. They even fixed a cupholder lid that didn’t close quite right inside.
I have found the service experience to be so much better at Audi and BMW versus a typical Honda dealer. I love the loaner vehicles – new A6 and A3, for example. Great coffee and snacks, nicer waiting area, etc. Not essential, but they do make for a nicer experience when you do have to get these beasts in for service/repair.
I have driven the A8 12 hours straight from Detroit to Atlanta in comfort. In the Accord, I would have needed earplugs and would have probably had a backache if I avoided falling asleep from boredom. The kids love taking the A8 because of the “heat seaters” as they call them in the back. The Accord doesn’t offer em. Nor does it offer a simple trip computer, memory seats, heated steering wheel and on an on. Anyhow, if I HAD to buy an Accord, the next one would at least have a manual tranny (coupe only, I know) to keep it a little interesting. That torque steer saps nearly all of the fun out of it regardless.
I had a similar experience with an 00 740iL. I let the owner have it for the first 2 years or so and swallow close to $30K in depreciation. It was no different than brand-new inside and out to me. I have made up my mind after the new Accord that from now on out I’m going to buy used and get a lot more car for the money. I could never swing new for those type of cars anyhow. In these times, even $30K seems excessive.
As I have gotten older, I’ve realized that it just doesn’t make sense to pay to have that new car smell (not good for you anyhow – ha ha). I also find that, ironically enough, you’re getting an unknown quantity versus a well-inspected, service-documented used vehicle that still has some remaining warranty.
Steven. Can you post a link to the articles on how to buy a used car. The search function can’t seem to find much of anything. Thanks.
used luxury car is the best way to go if you want all the gizmos and safety. In addition a warranty can be bought that really helps owning it and getting repairs since that is the big downside of an older luxury car. Mercedes in particular cost a lot to repair and after 3 years everything goes to hell. yeah, Audi A8, hmmm best interior around….
forget pickups, wait till August – November and they’re are a bargain new. I remember a Tundra for 12K off MSRP my brother almost picked up. Now those same trucks are being sold used for even more. Granted gas prices went down, but come that time of the year again and rebates will soar to move more metal, especially since a refresh 2010 Tundra is coming along…
Excellent advice, Steven.
My buddy picked up a brand new well-equipped ’08 Tundra 5.7L 4X4 4-door (not Crewmax – he needed a long bed for his dirtbike) last year for CDN$34,000 OTD. He couldn’t even find a new Tacoma for that cheap!
Here you go…
https://www.thetruthaboutcars.com/how-to-buy-a-used-car-pt-1/
If you click on editorials, then scroll the menu for car buying tips, and click previous a couple of times, you’ll find it.
We need a librarian out here who is an expert in WordPress.
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…
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!
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
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.