Why We Bought A NEW Car

We purchased a brand new automobile. Not a “new to us” automobile, not a “practically new” automobile, an precise factual model new 2022 Subaru Outback. However Liz–you’re now fretting– don’t you realize that:

Our model new Outback

Shopping for a model new automobile needs to be one of many worst monetary selections an individual could make.

Shopping for a brand new automobile is like capturing your self within the foot not as soon as, not twice, however 3 times. Right here’s why:

1. The mark-up on new vehicles is astronomical.
2. The chance value of shopping for a brand new automobile–even if you happen to pay money–is profound.
3. Most automobile loans have rates of interest, which implies you’re spending much more cash.

Not like a house–which generally, hopefully increases in value–a automobile is sort of assured to lower in worth. A automobile is just not an appreciating asset.

Who wrote that?! ME. I wrote all of that again within the halcyon pre-pandemic years of 2014-2019. Again within the instances earlier than our present interval of inflation and bananas automobile costs. So why ON THIS EARTH would I purchase a brand new automobile?

Inflation of the Automotive Varietal

As you might have observed, we have now some inflationary motion taking place nowadays. And as I noted in this article, inflation doesn’t impression all costs equally. Fortunate for me, among the most egregiously inflationary gadgets are vehicles. How superior for me!!!!

In accordance with this Fortune Magazine article from June 2022:

Used automobile and truck costs have risen 16% over the previous 12 months, and 50% greater than earlier than the pandemic.

Thrilled past perception with their used energy wheels

My analysis on the bottom corroborated this as my husband and I discovered used vehicles that value as a lot or virtually as a lot as new vehicles. In some instances, we discovered used vehicles priced HIGHER than new vehicles for the easy motive of availability. In the event you want a automobile instantly, you might need to overpay for a used automobile as a result of you’ll be able to’t get your palms on a brand new automobile quick sufficient (though there are exceptions. See my notes on the Mazda CX5 under).

In regular financial instances–or quite, in previous financial instances–used vehicles have been remarkably cheaper than new vehicles, which made the depreciation on new vehicles astronomical. In different phrases, new vehicles would lose an amazing quantity of their worth as quickly as they have been now not new. Used vehicles, however, had a way more gradual depreciation curve, which meant you may purchase a used automobile for an affordable value after which, if wanted, re-sell that used automobile at an affordable loss. At the moment, thanks to produce chain points, a scarcity of pc chips and inflation, used vehicles are now not a deal.

We have been confronted with the fact of buying a several-years-old automobile for under round $2,000 lower than a brand new automobile. In gentle of that, we noticed no level in shopping for used. While you’re taking a look at a ~$30k buy, we felt {that a} financial savings of $2k isn’t sufficient to justify shopping for a automobile with mileage and with no guarantee.

Why Didn’t You Simply Wait To Purchase a Automotive?

We did. We’ve wanted to exchange our 2010 Toyota Prius for the reason that begin of the pandemic. However… we waited. We started looking for vehicles in earnest in the course of the spring of 2021 and have been flabbergasted by the costs. At that time, used automobile costs have been up 42%!!! So, we determined to attend a 12 months. We have been optimistic that used automobile costs would normalize and we’d be capable of observe our previous roadmap of buying a several-years-old car for a great price. HAH. Little did we all know, inflation was simply getting began.

Why Didn’t You Wait One other Yr?

We thought-about this. Strongly. However, we lack the flexibility to foretell the longer term and have been involved automobile costs is likely to be even larger subsequent 12 months. Plus, we didn’t wish to undergo one other winter with the Prius.

Why Did You Want To Exchange the Prius?

The Prius. Caught within the snow. On our driveway. And this wasn’t even deep snow!

Our 2010 Toyota Prius was a champ. She did her best to outlive Vermont’s winters and he or she made it (kinda) via six of them with out (fully) falling aside. The Prius was ideally suited from a gasoline mileage perspective however abysmal from the views of:

1. Driving on rutted dust roads
2. Driving throughout spring mud season
3. Driving on ice
4. Driving via snowstorms
5. Getting out of our driveway
6. Driving on not-very-well-maintained rural roads

The Prius is made for metropolis and interstate driving. The Prius is just not made for rural backroads. I’m truthfully impressed we lasted so long as we did. Once we lived within the metropolis, the Prius was an excellent automobile. Right here within the woods? The Prius was turning into a joke of a automobile.

Her main shortcomings have been:

1. Lack of all-wheel drive
2. Lack of floor clearance
3. Lack of contemporary security options

Floor clearance is just not one thing I thought-about earlier than residing rurally. However after getting each single stick, rock and piece of bark conceivable caught to the underside of the Prius, floor clearance is one thing I take into consideration usually. Moreover, we regularly must drive via a number of inches of snow as a result of when there’s an enormous snow, the state snow plows can’t consistently take away all of the snow from the street. Therefore, having floor clearance and all-wheel drive are crucial (if, you realize, you wish to go anyplace).

Our Driveway: An Ongoing Saga

Extreme snow on a portion of our excessively lengthy driveway

Then there’s our driveway. Longtime readers know alllllll about our bobsled course of a driveway. At a really hilly quarter-mile lengthy, our driveway was the one main draw back we accepted once we purchased our home.

Fortunately, Mr. Frugalwoods maintains it himself with our tractor, which is a year-round job: snow removing all winter, grading within the spring, culvert reconstruction in the summertime, some extra grading within the fall… Regardless of his ministrations, there are fairly a number of winter days the place the Prius can not get out of the driveway.

I do know this as a result of I’ve many fond reminiscences of loading each kids into the Prius solely to find that it could:

a) not go up the little slope from the parking space onto the driveway

b) go up a portion of the driveway after which roll backwards

Enjoyable instances! If it rolled backwards, I’d then must reverse down the driveway, park it, unload each kids and re-load them into our truck (a 2010 Toyota Tundra). Thrilling as this ritual was, I’m over it.

And sure, the Prius was outfitted with top-of-the-line Nokian Hakkapeliitta studded snow tires. These helped a bit, however couldn’t make up for her lack of AWD and 4 centimeters of floor clearance.

Why Don’t You Simply Drive the Truck all Winter?

That is what we did the previous a number of winters. The Prius would make debuts on much less icy/snowy days, however the truck grew to become our every day driver. This was sub-optimal and not our supposed use case for the truck, as a result of:

• The truck will get HORRENDOUS gasoline mileage.
  • I’m speaking 12 MPG. Driving the truck every day defeated your complete existence of the Prius.
  • The entire level of getting a Prius was to capitalize on the Prius’s hybrid capabilities of 46 MPG. Along with costing us $1M in gasoline, driving the truck on a regular basis is horrible for the atmosphere.
• The truck is meant for uncommon utilization for hauling farm gear/constructing provides.
  • The truck is for hauling the snow plow we purchased a number of years in the past.
  • The truck is for hauling our maple syrup-making gear.
  • The truck is for hauling the lumber we used to construct the rooster coop and the woodshed.
• Our objective is to maintain the truck for a lot of, a few years as a beater farm truck.
  • Driving it usually added mileage and put on/tear, which negated this function.

Why Do You Want Two Automobiles?

It is a truthful query as a result of I earn a living from home and Mr. FW is early retired, so we very not often each must drive reverse instructions on the identical time. Thus, having two vehicles isn’t to unravel the issue of a twin commute, it’s to fulfill our wants as subpar homesteaders and to make sure security.

Since there’s zero public transportation out right here, it’s a compulsory security consideration to have two automobiles. We will’t have one father or mother at house with the youngsters with no automobile–if there’s an emergency, they’d haven’t any method to depart. I truly had this occur to me a number of years in the past (as a consequence of Mr. FW being out of city with the Prius and the truck breaking down) and it was an terrible, terrifying feeling. I’ll pay no matter I need to with a purpose to have secure, dependable transportation.

What We Want In A Every day Driver

The chickens approve of their every day driver

After capitulating to the Prius’s ineptitude in our surroundings, we started a two-year-long analysis mission into our subsequent automobile. Our priorities have been:

1. All-wheel drive
2. Cheap floor clearance
3. Reliability
4. Affordability (not shopping for a Tesla over right here, folks)
5. Trendy security options
6. Sufficient room for 2 adults and two kids
7. The absolute best gasoline mileage for a non-electric, non-hybrid automobile
8. Capability to haul issues like skis, paddle boards, kayaks, and so on on the roof

We’d LOVE to get an electrical automobile and it’s our 5/ten-year objective to promote this automobile and purchase electrical. We didn’t get electrical this time as a result of the costs on electrical automobiles are tremendous excessive and the know-how is tremendous new. I don’t wish to get the primary era of any new know-how–I wish to see the way it performs out after which choose a automobile with a confirmed file of reliability. Since electrical automobiles use a wholly completely different know-how than gasoline vehicles, I don’t really feel assured falling again on my earlier data of automobile manufacturers. It’s all completely different now! At any price, our hope is that our subsequent automobile can be electrical.

The Automobiles We Thought of Shopping for

1. Toyota Rav4
2. Honda CRV
3. Mazda CX5
4. Subaru Forester
5. Subaru Outback

These are all categorized as “small” SUVs. We didn’t need something bigger–such because the Toyota 4Runner, Toyota Highlander, Toyota Sequoia, Honda Pilot, Honda Passport, and so on–as a result of these value extra and worsen gasoline mileage. The entire automobiles on our listing value roughly the identical and provide roughly the identical gasoline mileage.

I made this comparability chart on Kelly Blue Book and, as you’ll be able to see, these vehicles are practically equivalent in each metric:

We check drove all of them and right here’s what we discovered:

Toyota Rav4

That is the automobile we assumed we’d get as a result of we love Toyota’s reliability file. A lot of the vehicles we’ve owned have been Toyotas and we deliberate to proceed that development. Till, that’s, we sat in a 2022 Rav4. Lo and behold when Toyota redesigned the inside, they didn’t take tall folks into consideration. My husband is 6’2″ and I’m 5’7″. His head TOUCHED the highest of the automobile and mine got here very shut. This was an instantaneous deal breaker. Can’t have a automobile we’re too tall for!

Honda CRV

Valiant snow-clearing effort by the youngsters

This was a advantageous automobile to drive, however we weren’t as impressed with the trunk area. We frequently want to suit two youngsters’ bikes + different sundries and this trunk appeared tight. Extra importantly, the CRV’s whole bundle isn’t nearly as good: the AWD isn’t the very best, neither is the bottom clearance, and recent-year CRVs have had an oil dilution downside. As a result of these components, we discounted the CRV fairly rapidly.

 Mazda CX5

We cherished this one. This was hands-down our favourite automobile to drive. It’s attractive, well-designed, easy as butter to drive and has a really luxurious really feel. I’m nonetheless a tad unhappy we didn’t get a CX5. However, our causes have been sound: its AWD capabilities aren’t top-of-the-line, the trunk area is smaller and, crucially, it isn’t as excessive off the bottom because the automobile we selected. I’d like to personal a Mazda sometime–they’re simply so enjoyable to drive! However, not the fitting automobile for us proper now.

Subaru Forester

Once we turned our analysis to Subarus, we supposed to get a Forester. However once we went to the dealership, the salesperson instructed us that Foresters have been approach, approach, approach backordered and that it is likely to be 6 months earlier than we may get one. He then defined that the Outback has the identical floor clearance and the very same AWD system because the Forester, a BIGGER trunk and can be accessible sooner.

Subaru Outback

Once I searched my images for “automobile,” a lot of “carrot” images popped up. You’re welcome.

Longtime readers will recall that we owned a 2010 Subaru Outback once we moved to Vermont in 2016. It was, actually, the automobile we purchased for our new Vermont way of life! Nonetheless, we have been attempting to make use of it as our truck. We purchased the Prius and the Outback within the hopes that we may get away with utilizing the Outback as our hauling automobile and the Prius as our every day driver. We rapidly realized that an Outback is just not, actually, a truck and you can’t, actually, haul issues like snow plows and full-size lumber. However we tried, let me let you know. Right here’s the complete story on our authentic Outback: Why We Broke Down and Bought a Used Truck.

As quickly as we check drove the 2022 Outback, we remembered why we purchased one within the first place. It ticked each single one in all our bins:

1. Greatest AWD of the automobiles we thought-about (equivalent to the Forester)
2. Highest floor clearance of the automobiles we thought-about (equivalent to the Forester)
3. Greatest trunk area as a result of it’s a station wagon versus an SUV:
   • I LOVE THIS TRUNK and we fill it to the brim on the common.
4. Good gasoline mileage:
   • It harm to say goodbye to the Prius’s phenomenal gasoline mileage, however we weren’t capable of reap the advantages of that gasoline mileage in the course of the winter anyway, so we should always come out forward on our annual common MPG.
   • We’re averaging 30 MPG with the Outback, which is much better than the truck’s embarrassing 12 MPG!
5. 

   One in all my all-time fave images of Kidwoods

   Good reliability:

   • We aren’t 100% jazzed with Subaru’s longterm upkeep file, BUT, shopping for a brand new automobile means it’s below guarantee for 3 years/36,000 miles for fundamental and 5 years/60,000 miles for the powertrain, at which level we’d promote it and get an electrical automobile anyway.
6. Glorious fashionable security options.
7. Good affordability and inside a pair thousand {dollars} of all the opposite vehicles we thought-about.
8. A roof rack got here commonplace:
   • That is good for holding our ski roof field (particulars under) and my paddle board.
   • This automobile was made for individuals who like outdoorsy, rural stuff, which makes life straightforward on us. Continually attempting to retrofit the Prius into one thing it’s not designed to do was a ache.

Plus, the ready time for an Outback was shorter than all the opposite automobiles, apart from the Mazda CX5. We may’ve pushed a CX5 off the lot the day we checked out it, so if you happen to want a automobile ASAP, try Mazda!

This brief ready interval was essential for us as a result of we wanted to have the automobile earlier than late October/early November (AKA the beginning of winter). And, we wanted to have it with sufficient time to re-sell the Prius. Promoting stuff in the course of the winter (homes, vehicles, chickens) isn’t terribly frequent right here. Most people appear to favor to transact when the climate’s first rate. We put our title on a ready listing for an Outback in mid-April and had the automobile in hand by Might thirty first. Good for our timeline!

Extra on Security Options

One more reason we wished to improve to one thing newer than our 2010 was for the brand new security options of the Outback, together with: automated braking, blind spot detection, extra airbags, rear cross visitors alert plus fashionable crash check situations. Newer vehicles have been re-engineered to fulfill larger crash check security requirements, which implies they lead to fewer deaths. The variety of miles we drive means we’re more likely to die in a automobile crash than from every other supply, so having new security options have been a precedence. Once we added the Outback to our automobile insurance coverage, our legal responsibility insurance coverage truly went down–it’s cheaper to insure the Outback than the older Prius as a result of we’re a lot much less more likely to get into an accident with a more recent automobile.

The Destiny of the Prius

Kidwoods washing the Prius in preparation on the market

Whereas used vehicles are bananas costly to purchase proper now, that additionally means it’s a fairly candy time to promote a used automobile. We listed the Prius on the market on Craigslist, our native city electronic mail listserve and Fb Market. We initially listed it on the value we paid for it again in 2015: $8,900.

We didn’t get any gives at $8,900 and so after two weeks, we lowered the value to $8,400. That was evidently the candy spot as a result of we instantly began to get gives. Apparently, a lot of the queries got here via Fb Market, which we’d by no means used earlier than. Previously, we’ve purchased and bought the whole lot via Craigslist, however I suppose Fb Market is extra standard now. Many because of our pals A & C for recommending we use it–I truthfully wouldn’t have even thought-about it.

A mechanic messaged me (via Fb) that he wished to purchase it for his sister-in-law and came visiting the subsequent day to take it for a check drive. He supplied us $8,000, we countered at $8,200 and he agreed. An ideal negotiation the place each events felt like they obtained a great deal!

My Ideas for Promoting a Used Automotive:

1. Do your analysis on pricing. Don’t simply use the Kelly Blue Ebook value, have a look at what related used vehicles are promoting for in your space.
2. Checklist on the very prime of the market with the data that almost all patrons wish to negotiate and you may all the time decrease the value. You possibly can’t precisely enhance the value, so listing excessive after which discount down.
3. Be terribly clear concerning the situation of the automobile. You don’t wish to hoodwink anybody and it engenders belief whenever you’re clear. It’s a used automobile, everybody is aware of it’s going to have some points. We included the under rundown in our description of the Prius, together with images of the physique injury:

Make certain to reveal carrot irregularities too

Whereas a superbly dependable every day driver, this automobile does have 163k miles and comes with the next recognized defects that we by no means felt have been value fixing:

• Faint gasoline odor exterior the automobile when the tank is full to the highest. It goes away after the primary ~50 or so miles following a fill-up. We had our mechanic look into it and he couldn’t discover any leaks and pronounced it secure. He beneficial towards dropping the tank except it obtained worse. That was a 12 months in the past and it hasn’t gotten worse.
• Occasional rattles from all the warmth shields and plastic fairings below the automobile. We’ve our mechanic chase these down every time it’s within the store, nevertheless it nonetheless has a warmth protect rattle at sure low rpms. You possibly can’t hear it past idle.
• Very, very gradual leak within the AC system. I’ve to cost it as soon as each spring (straightforward to do with a $15 package from Walmart) and it blows chilly all summer season. We had our mechanic do a fluorescent dye check, and he didn’t discover something (not stunning because it should be such a gradual leak). We may throw elements at it, however we simply cost it each spring. Been like that for no less than 4 years.
• Minor physique points: small crack on decrease left bumper, slight separation of bumper on higher proper, minor floor rust and a few paint chipping alongside the roof. See images for particulars.

The one that purchased it mentioned he was particularly involved in shopping for from us as a result of we have been so forthright in outlining the automobile’s recognized defects. He appreciated that we disclosed all of this upfront and each he (and we) felt comfy sharing this data of the automobile’s shortcomings.

Do Not Do a Commerce In With a Dealership

Once we purchased the Outback, I requested the dealership to tell us what they’d give us for the Prius if we traded it in. I already knew I wasn’t going to commerce it in, however I wished the info of their provide for this submit. After assessing the Prius, the dealership supplied us $3,000 and instructed us that was, “an ideal value for a automobile so previous.” HAH. By going via the nominal trouble of washing it, vacuuming it, photographing it and itemizing it, we made $5,200 extra by promoting it ourselves. Folks, it’s well worth the “trouble” to promote a automobile your self.

The Prius Numbers

Right here’s the breakdown on our 2010 Toyota Prius:

Which means the Prius solely depreciated $133 per 12 months (or 16.73%):  Good! Like I mentioned, unhealthy time to purchase a used automobile, nice time to promote a used automobile.

The Outback Numbers

What you’ve been ready for! Right here’s what we spent on our 2022 Subaru Outback Premium in Autumn Inexperienced:

As you’ll be able to see, we put $2,500 of the Outback buy value on our cash-back credit card, which implies we netted 2% money again–often known as $50. The dealership mentioned we may put a max of $2,500 on a bank card and so we did. We paid the remaining steadiness by way of private examine. We’ve by no means financed a automobile as a result of we don’t wish to lose cash to curiosity. Since we knew we’d want to purchase a brand new automobile, we started saving up money for this buy about two years in the past.

The ground mats, kick mats and seat cowl all doing their jobs

You’ll additionally word that the ski roof rack was $100 cheaper than the listing value. That’s as a result of we purchased it throughout an REI 20% off member sale and thus acquired a 20% low cost. We weren’t the one REI members who thought to do that. The shop was filled with gigantic supply bins of kayaks, roof racks, bicycles, and so on. Clearly low cost week is the fitting time to purchase costly outside gear!

We additionally purchased very good, very costly flooring mats, which cowl your complete flooring (and sides) of the inside. We did so as a result of we plan to in the future promote this automobile and we wish to maintain it as clear as doable. And, since we dwell within the woods, we get about as a lot dust within the automobile as exterior the automobile. And gravel. Mud. Sticks. Leaves. After which after all there’s the snow, ice and salt… to not point out our two kids. We have been capable of re-use this backseat cover we had in the Prius, however sadly, the kick mats didn’t match (affiliate hyperlink). So, we bought these and they’re ideally suited since each of our children really feel the necessity to prop their muddy boots on the seat again in entrance of them (affiliate hyperlink). And with that, the Outback is absolutely dirt-proofed!

Due to Craigslist we have been capable of finding some used rims and snow tires, that are obligatory out right here within the wintry sticks. The rationale we get rims (along with tires) is in order that Mr. FW can swap the tires himself each season, versus paying our mechanic to take action.

Okay I can’t consider anything to let you know. Hit me together with your questions!

Have you ever had to purchase/promote a automobile just lately? What was your expertise?