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Used or New Car Purchase

Used or New Car Purchase

tsloan
tsloan 38 XP · · 2 replies

Within the FI community, I hear they tend to buy used cars to save the money and invest it instead. However, when I buy a car I tend to keep them for 10+ years and have bought new since 2005. I currently have a Tesla, that while I was married and living in an area that didn't require daily long distance driving and I had home access to a Level 2 charger, it worked out great and I loved it. I still do enjoy driving it, however, I am now divorced and renting a place that doesn't have access to any electrical to charge the car here. I paid to have a Level 2 charger installed at my parents about 5 miles away, but based on where I live I find myself thinking I can't go a lot of places because then I'll have to go back and charge again. I do love my parents, and visiting with them, but it's about a 4 hour time committment to get charged back up. I have limited my driving and still have to go to their place at least once a week. So my delima finds me considering selling my 2025 Tesla with less than 6,000 miles on it to get a different car. I would prefer a hybrid that doesn't require plugging in, so that I can get about 50 miles to the gallon so that I can continue to save on high gas prices. Traditionally I've purchased foreign cars like Toyota, Nissan and Subaru. I have recently considered Kia because I know people that have them or had them and liked them. They are cheaper and have a good perceivd warranty. What would you recommend? New or used? Which make? If used, what mileage and year should I target? Your thoughts and feedback are appreciated.

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Replies (2)

UncleFrank

UncleFrank

1,500 XP

8 hours ago

A used Toyota hybrid. You can buy a car like that with nearly 100K miles on it and drive it for at least another decade.

roberto -

roberto -

3,699 XP

1 day ago

I'm not sure that it would be worth the hassle to change vehicles. I recently took a 2200 mile road trip, so I was super charging the entire time. The average cost came in at $0.10-$0.11/mile. Granted, that was about 90% highway driving, so probably less efficient than all city or mixed city/highway driving. If you managed to get a hybrid that could consistently get 50 mpg and regular unleaded was at around $4/gallon, you would be looking at a fuel cost of about $0.08/mile. But the gas powertrain in the hybrid would potentially have higher maintenance cost associated with it (oil changes, air/oil filters, spark plugs, belts, etc.).

In that comparison (inefficient mostly highway driving with an EV, versus more efficient mixed driving with a hybrid) you would optimistically save around 25% in terms of fuel cost. Unless you drive absolutely ridiculous number of miles per month/year/etc, you are very likely to take a long time to break even just on the fuel cost. Plus, if gas prices go up even a little bit or if you get a vehicle that isn't as efficient as 50 mpg, the calculus changes unfavorably. I used $4/gallon, as that's what I happened to see regularly on my recent road trip.

However, according to AAA, the current average price for gas is $4.31/gallon. At that price, and with a 40 mpg fuel efficiency, you are looking at $0.1078/mile fuel cost. Basically, it is the same fuel cost as charging an EV at public super chargers all the time and driving mostly on the highway, which is about the most expensive way to drive/charge an EV.

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