I'm from the US. Here's why I previously bought a new car (the high-end trim level Matrix, not luxury though):
I wanted a low mileage car because I had owned several high-mileage, but reliable, used cars, and calculated that I spent at least $200/mo over the year on routine repairs and maintenance.
A low-mileage (sub-30K) late year model, otherwise identical used car cost only $2,500 less than the new car.
The interest rate on a no-downpayment loan for the new car was 0% for 12 mos and 3.9% after. The interest rate on the no-downpayment loan on the used car was 13% from the start.
On the new car, I wouldn't have to pay for the first major service for about 18 months. On the used car, it was coming up in a matter of months. (The 30k). Not to mention it would soon need new tires, brake pads/rotor turning, and it was the half-life for the struts and major transmission services, too. (That's $1000 right there.)
You have no idea how the used car was treated in the breakin period and early oil changes, etc, and by only 30K miles, the damage won't have shown itself the way it will have by 80K miles. So when buying a low-mileage used car, sometimes you're actually making a greater gamble.
As you can see, all the logical points added up to buying the new car. It would actually cost less because of the financing and repair bills I would be less likely to pay during ownership.
Additionally, I was able to buy it right away, without having to hunt around, because the first few used ones I found with the trim level I wanted were safety cone yellow. Ugh.
Moral: BUYING USED ISN'T ALWAYS A SMARTER DEAL.
I love splurging on things, but not when the splurge comes back to haunt me month after month. ;)
EDIT: I agree with you about the luxury car, period, and also I wouldn't buy one used. That's why I'm trying to talk my husband out of a BMW, period. IMO the cost difference between a low-end BMW and a high-end VW isn't worth it.
Where are you banking that your used car loan is 13%?! The one I have now is 6% and bank rate lists current used car loans for 48 months at 6.38%. You need to find a new bank :) I really hope you're not using dealer financing...ugh.
I agree that buying a used car does take a bit of leg work. The last one I bought took me almost 3 months of looking. At the time I bought my last car the dealership wanted $33k for the base trim new. I bought the 1 year old version with 12k miles and higher trim level for 24k. The car was a 4-Runner, not exactly luxury, but a nice reliable car. I'm looking at Range Rovers now and the price difference between new and 1-3 years old is amazing.
I also get a mechanic to check out any car before I buy it. Luckily I have multiple mechanics in my family.
Oddly enough I have bought 1 new car in my life and it was the car that gave me the most problems. I had it in the shop every other week because of some computer/vapor exhaust issue. When I finally sold it, the engine light had been on for about 3 of the years I owned it.
I wanted a low mileage car because I had owned several high-mileage, but reliable, used cars, and calculated that I spent at least $200/mo over the year on routine repairs and maintenance.
A low-mileage (sub-30K) late year model, otherwise identical used car cost only $2,500 less than the new car.
The interest rate on a no-downpayment loan for the new car was 0% for 12 mos and 3.9% after. The interest rate on the no-downpayment loan on the used car was 13% from the start.
On the new car, I wouldn't have to pay for the first major service for about 18 months. On the used car, it was coming up in a matter of months. (The 30k). Not to mention it would soon need new tires, brake pads/rotor turning, and it was the half-life for the struts and major transmission services, too. (That's $1000 right there.)
You have no idea how the used car was treated in the breakin period and early oil changes, etc, and by only 30K miles, the damage won't have shown itself the way it will have by 80K miles. So when buying a low-mileage used car, sometimes you're actually making a greater gamble.
As you can see, all the logical points added up to buying the new car. It would actually cost less because of the financing and repair bills I would be less likely to pay during ownership.
Additionally, I was able to buy it right away, without having to hunt around, because the first few used ones I found with the trim level I wanted were safety cone yellow. Ugh.
Moral: BUYING USED ISN'T ALWAYS A SMARTER DEAL.
I love splurging on things, but not when the splurge comes back to haunt me month after month. ;)
EDIT: I agree with you about the luxury car, period, and also I wouldn't buy one used. That's why I'm trying to talk my husband out of a BMW, period. IMO the cost difference between a low-end BMW and a high-end VW isn't worth it.