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Is it better to buy a used car compared to a new car?


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Hello Guys,
I am from New jersey and I would like to know your opinions about buy a used car compared to a new car, which one is best option.So please suggest me. I read a couple of blogs on used, so just checking on it.

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Posted (edited)

Consider buying a used car, but buy a good one,

maybe 2 to 4 years old.  You can save half the original

price, then use the money you save to invest properly.

You can also buy a better car, a more expensive

model than you could otherwise afford.

 

Many modern cars don't excite the buyer anymore.

Most are utility vehicles and 4-door sedans, and

the color selection is atrocious.  Do you like black,

white, and shades of gray?  Do the designers realize

the vast color range that truly exists?

 

I always check Consumer Reports, and the used cars

I have bought have had "Much Better than Average"

reliability, their best ranking.  I have not been disappointed.

Edited by John_S_in_Penna (see edit history)
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Dittos.  Let someone else eat the initial depreciation.  Just be careful and try to avoid factory buy-backs.  Those were lemons that dealerships couldn't fix. Let your fingers do the walking.  There is a lot of info out there on the internet about what to watch for. 

Terry

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My last car was a Certified Used car. To me that is a great way to go. Mine was just under a year old with about 20,000 miles on it and came with a great warranty. Way less money than a new one and checked out and approved by the manufacturer.  Only one issue with it and it was resolved quickly under warranty. 

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There are many discounts available to new car purchases and financing can be lower for new vs used.  Big factor is how long you keep it.  If you keep the new car for 10 years the difference in price is decreased.  When cars had worse reliability than today, I liked  being the first owner so I knew the maintenance history.  Certified pre owned is a relatively new option. 

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 I am currently looking to purchase a 1932 Ford roadster.

 I would prefer to buy a new one for $460 list price but I may have to get a used one, if I can't get a good deal on a new one.

🙄

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Posted (edited)

You need to add additional information.  Type of vehicle; sedan, SUV, convertible, van, etc, price to pay including all warranty cost, how many miles driven per year, max miles on vehicle when you sell it.  
A certified vehicle is actually a better warranty on a used car from a new car dealer.  
One son in law uses a national company called CARMAX to buy 2 year old cars having a warranty.  They are higher priced than a dealer used car lot but their price is not negotiable.  He usually trades at 160,000 miles. 

A 2nd son in law buys near new cars but about 6 years ago he bought a Toyota SUV with 60,000 miles but it now had 230,000 miles.

I like lower mile vehicles and replaced my 2006 truck with 61,000 miles with a 9,200 mile 2015 Dodge.  The Dodge is used to tow a trailer & not my primary vehicle, Without a warranty. I am gambling I can afford the repair bills.  

 

Clark Howard suggests you purchase a newer used car & drive it 10 years.  Check Consumer Reports at your library as a good reference for dependability.

Edited by huptoy (see edit history)
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I don't really think there's any such thing as a bad car being built these days. A two-year-old car coming off lease with, say, 25,000 miles on it is usually available for half price. I've bought my last three cars that way and ended up with way more car than I could otherwise justify. Both of those cars lasted well over 100,000 miles and I'm still driving the most recent one. I think it's a no-brainer to let someone else take the hit and pick up the car after it has finished with the steep part of the depreciation curve. Most cars are driven pretty sedately and not abused, maintenance has pretty much become "put gas in it when the needle gets close to E," and quality is pretty uniformly high--even Kias are pretty decent cars these days and just about anything you buy should give you 100,000 trouble-free miles.

 

My only caveat might be if you're aiming for a high-end European car--buying one of those is a bit of a gamble. I won with one but if I were to buy another European car with a warranty that was going to expire, I might pony up for an aftermarket warranty. Yes, you'll spend $3000-4000 on the warranty, but when a transmission is $9000 and a set of turbos is $12,000, it might be a smart gamble.

 

There's also the lease option. Some people object to leasing because they don't have a car when it's over, but if you think of it as a fixed payment and you will always have a new car with a warranty, it kind of balances out. It's a mistake to treat a car as an appreciating asset, old or new, so simply making a payment to use one and every few years you get a new one can be a good way to go if you don't want to risk not having a warranty or service coverage.

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Hertz is probably going bankrupt in the next 60 days........(90 percent chance?)....that puts 360,000 cars into the used car market....mostly newer and low milage. The used car market is going to take a dump like it has NEVER seen. Remember modern newer cars depreciate very, very fast. They will have to fire sale them as fast as humanly possible. Save your money now.....have CASH in a checking account ready to go.............your going to get some insane values very soon.......and Hertz has mostly high end models with all the toys............I expect to purchase two cars from them soon......Ed

 

 

Then add in all the other rentals that will also get dumped............from all the other national chains.........its going to be a blood bath.........bad news if you purchased a car in the last 18 months...........good news if you going to be in the market soon.

 

 

Edited by edinmass (see edit history)
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33 minutes ago, edinmass said:

Hertz is probably going bankrupt in the next 60 days........(90 percent chance?)....that puts 360,000 cars into the used car market....mostly newer and low milage. The used car market is going to take a dump like it has NEVER seen. Remember modern newer cars depreciate very, very fast. They will have to fire sale them as fast as humanly possible. Save your money now.....have CASH in a checking account ready to go.............your going to get some insane values very soon.......and Hertz has mostly high end models with all the toys............I expect to purchase two cars from them soon......Ed

 

 

Then add in all the other rentals that will also get dumped............from all the other national chains.........its going to be a blood bath.........bad news if you purchased a car in the last 18 months...........good news if you going to be in the market soon.

 

 

Since they most likely will all go to auction, boy that will be one hell of an auction to be at.  After the first few go through they'll just about be giving them away to get rid of them. 

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4 minutes ago, auburnseeker said:

Since they most likely will all go to auction, boy that will be one hell of an auction to be at.  After the first few go through they'll just about be giving them away to get rid of them. 

 

They'll probably send them to Mannheim or Adesa to wholesale to dealers, and it'll still be regional so all the cars won't be dumped in one place for one auction. In fact, I just mentioned to Melanie last week that we should start paying attention to our Mannheim inventory alerts because of Hertz going belly-up. A new tow vehicle or a replacement for my Cadillac CTS wagon for a discounted wholesale price? Nice.

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2 minutes ago, Matt Harwood said:

 

They'll probably send them to Mannheim or Adesa to wholesale to dealers, and it'll still be regional so all the cars won't be dumped in one place for one auction. In fact, I just mentioned to Melanie last week that we should start paying attention to our Mannheim inventory alerts because of Hertz going belly-up. A new tow vehicle or a replacement for my Cadillac CTS wagon for a discounted wholesale price? Nice.

I went to an auction in Florida with a dealer that i got hooked up with to buy a new (used) work truck.  You don't buy used trucks in the Northeast.  A 4 year old HD 2500 Series gas Chevy 4x4 went through with a contractors cap big winch front bumper in nice shape other than a dent on the box side with just about 100K and absolutely no rust.  Almost got it for 4G until some other guy jumped on and ran it to 6G then bailed.  I did put a tranny in it about 40K later but also another 120k on it total and finally sold it for 2G after having it 10 years.  Can't complain about that one.  Of course the dealer knew which lanes to go to and which to avoid.  Helps to have the right guy. 

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I used to by good, low mileage used cars all the time, especially for the reasons stated above. All less than 20,000 miles. My opinion is changing though. I am a volunteer fireman and most of our calls are accident calls. The newer cars have far superior crumple zones and you can't imagine the amount of damage and still people walk away. Now, when you consider the average hourly charge for good mechanics is approaching $150 per hour, you better have a warrantee. Most cars over 35,000 miles and you're on your own. If I'm buying a used car, it will have less than 20,000 miles or I look elsewhere.

 

Frank

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Posted (edited)
6 hours ago, Nolan Walker said:


Hello Guys,
I am from New jersey and I would like to know your opinions about buy a used car compared to a new car, which one is best option.So please suggest me. I read a couple of blogs on used, so just checking on it.

Well, it really depends on a lot of variables, including what type of car/vehicle are you needing/wanting ? What type of driving/usage you expect from it ? Is it for a single person or family ? Your budget ($20K or $85K) ?  Are you able to pay cash or will it need to be financed ? Etc, etc, etc, ...

These are some of the basics you need to figure out and present to others before any practical advise can (or should) be offered.

 

OTOH, if you're just looking for "opinions" (and you know, everybody has at least one) by others, based on their personal desires and/or experiences, you can ignore my above suggestions. 

Edited by TTR (see edit history)
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I am 83 and have NEVER had a new car.  Mostly low mileage 10 year or older. Insurance savings alone are immense. But then I have never used one for work.  

 I owned and drove a semi truck for 40 years. After 3 new ones, the rest were used.  I drove one for 11 years. I agree with Matt, few if any cares today are bad and few if any that will not go 150,000 or 200,000 miles.

 Of course, if one has the money, spend the darn stuff. The economy needs for us to do so.

 

  Ben

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There are some pretty great deals out there now too.  My last car was a 2 year old Lincoln MKX CPO. As stated above , the certified warranty is better than the new car warranty.  It’s been a relatively trouble free car for the 5 years I’ve had it.  It was a rental return.  I have purchased many rental returns over the years and have never been disappointed. 

 

Today I am picking up a 2019 Challenger R/T as a CPO car. I was very particular in what I wanted so I was pleased to find almost exactly what I wanted and in a color I liked. I also got an insane deal on the price. This car has 22K miles and as I drive less than 3K miles a year for this car, it will probably be my last car. (I’ve said that about my last 3 cars though)

 

I looked at new ones but the dealers weren’t willing to discount much below MSRP - rebates so I walked. There was one other CPO car that had about half the miles this one had and their asking price was just a little higher than the one I bought.  The show stoppers were The color, white, and they weren’t too generous with my trade.  I usually sell my trades outright but with the virus and all i decided to take the easy way out. I’d advocate for a CPO used car any day.  Let someone else take the depreciation hit.

 

Interesting, I hadn’t heard about Hertz. I worked for them for a short while as a part time retirement job.  Too bad if they are folding.  I met some great people working there.

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Although this may or may not be relevant the last time we bought a car it was for my wife. She wanted a Kia Soul and when I began checking prices on used ones(also my preferred choice) I came to realize that the cost difference between a quality used one and a new one was about $1000 or so. Adding in the extremely low cost financing and excellent warranty on a new Kia it was silly to buy used.

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2 hours ago, huptoy said:

You need to add additional information.  Type of vehicle; sedan, SUV, convertible, van, etc, price to pay including all warranty cost, how many miles driven per year, max miles on vehicle when you sell it.  
A certified vehicle is actually a better warranty on a used car from a new car dealer.  
One son in law uses a national company called CARMAX to buy 2 year old cars having a warranty.  They are higher priced than a dealer used car lot but their price is not negotiable.  He usually trades at 160,000 miles. 

A 2nd son in law buys near new cars but about 6 years ago he bought a Toyota SUV with 60,000 miles but it now had 230,000 miles.

I like lower mile vehicles and replaced my 2006 truck with 61,000 miles with a 9,200 mile 2015 Dodge.  The Dodge is used to tow a trailer & not my primary vehicle, Without a warranty. I am gambling I can afford the repair bills.  

 

Clark Howard suggests you purchase a newer used car & drive it 10 years.  Check Consumer Reports at your library as a good reference for dependability.

 

I bought a four year old 2014 Chevy Equinox from Carmax that had only 14,000 miles on it. It was like new at half the cost of a brand new one. Found out that the way CARMAX works is they get used vehicles from the larger Auto Auctions and when you trade a car in at Carmax an Appraiser from the auction comes to Carmax to buy it from Carmax and auctions it off. The trade in cars go to auction. So the CARMAX cars are shipped from the Auction lot for Carmax to sell and your traded in goes to auction. Many of the Corporate Companies that give their sales employees new rental cars to drive and rotate them every 4 years. The employees get new model cars every four years. The company cars are well maintained and low mileage.This gives you great value to purchase this way and CARMAX will not negotiate pricing. We love are Chevy Equinox.

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I have been buying low mileage ten year old cars for 25 years. I also purchased five new one ton dualy Desiel’s five years in a row, trading them in with about 3500 miles on them. I see both sides of the issue. When the market dumps......it’s going to be insane......think like oil the last three months...........with high unemployment, net worth down across the boards, low cash balances for most working Americans.......the new and used car market is going to leave blood in the streets. Hertz won’t be the only large company dumping cars............I think the price will drop to about 30 percent of new delivery cost on most of the inventory for 9 months or more. Remember most of the rental cars are loaded with all the toys......so the plain Jane cars are going to be in the toilet. My current three every day drivers.....97 Chevy S-10 With 103k, 06 Mercedes CLK430 Convertible with 41k, and my 05 Ford Focus with 80k................will probably become of so little value that I will give them to some local people who have fallen on hard times. I will replace all three with 2018 or newer units.......and it will probably only cost me the price of one decent used car from three months ago. I hate to pay insurance on newer cars, so I probably won’t get comprehensive or collision.

Edited by edinmass (see edit history)
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My son traded his car, a 2008 Dodge Caliber that used to be mine, on a 2016 car he bought from carmax.  His Dodge was not sent to auction, it wound up back on the carmax website.  Carmax gave him $2500 for it, they listed it for $8595.  They did put new tires on the front and maybe an alignment.  We checked the vin and the car ownership report they posted.  No question it was his car.  Not saying this is typical but it was our experience with them.  Son has been pleased with his carmax purchase so far.

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2 hours ago, Matt Harwood said:

just about anything you buy should give you 100,000 trouble-free miles

Aren't you the same guy that had an issue with his tailgate and was forced to go ballistic on the Cadillac customer service girl?:P

 

1 hour ago, oldford said:

Now, when you consider the average hourly charge for good mechanics is approaching $150 per hour, you better have a warrantee

-I just found out that the wife's ford explorer has airbags built into the rear seat belts? This triggered a check engine light and a what should have been a $900 repair had I been outside of the warranty period. I have had an endless smathering of pricey little nuisance problems from our current Ford and Toyota products. New cars are just too complicated-too many gizmos. John Elkann of Fiat Chrysler spoke at Pebble Beach and admitted that modern automobiles now have more lines of code than any Airbus plane. Scary stuff for some poor old stiff like me! 

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8 minutes ago, md murray said:

Aren't you the same guy that had an issue with his tailgate and was forced to go ballistic on the Cadillac customer service girl?:P

 

Correct. And while that incident really pissed me off and damaged my hand (maybe permanently), it didn't stop the car from driving me to work every day. Gas, oil, four wheel bearings, and that goddamned tailgate over the course of 10 years and 130,000 miles. That's probably par for the course for any late-model car these days. I find that acceptable, even though Cadillac and I are currently litigating and I probably won't ever buy another one of their cars.

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1 hour ago, plymouthcranbrook said:

Although this may or may not be relevant the last time we bought a car it was for my wife. She wanted a Kia Soul and when I began checking prices on used ones(also my preferred choice) I came to realize that the cost difference between a quality used one and a new one was about $1000 or so. Adding in the extremely low cost financing and excellent warranty on a new Kia it was silly to buy used.

This is true on a few different vehicles.  We did the same for My wife's new Toyota Tacoma. A new one is about 3 grand more than a used one.   Again,  coming from the North Country rust is an issue with used vehicles and very costly repairs. 

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2 hours ago, Matt Harwood said:

 

They'll probably send them to Mannheim or Adesa to wholesale to dealers, and it'll still be regional so all the cars won't be dumped in one place for one auction. In fact, I just mentioned to Melanie last week that we should start paying attention to our Mannheim inventory alerts because of Hertz going belly-up. A new tow vehicle or a replacement for my Cadillac CTS wagon for a discounted wholesale price? Nice.

Last time this happened (having an insane amount of late model used cars sitting around)  I was a wholesaler for Enterprise, so I know how all of this works.   Nothing was selling, so the manufacturers sold them back to rental car companies for pennies on the dollar.  Companies like Enterprise (who purchase their cars outright) get them so cheap (so cheap most people wouldn’t believe it) when new that they really don’t lose anything when the market is flooded-they just don’t make as much.  Companies like Hertz lease most of their cars, so this will be manufacturers selling them.  Companies like Enterprise will be able to name their price.

 

That said, Hertz is obviously a big player, one of the biggest) and they’ve been run so bad that they have lost money for a few years now, so there are fewer companies that can absorb tens of thousands of cars.  

 

I have said for years that there are more new cars manufactured that we can possibly responsibly consume.   
 

 

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7 hours ago, Nolan Walker said:


Hello Guys,
I am from New jersey and I would like to know your opinions about buy a used car compared to a new car, which one is best option.So please suggest me. I read a couple of blogs on used, so just checking on it.


There are very few reasons to ever buy a new car.

 

1.  You have money to burn and feel good about supporting the economy.

2.  You are buying something like a C8 Corvette or new Ford GT40, because you can.

 

That’s about it really. 
 

Certified used cars come with better warranties.  Even older used cars are priced so much better.

 

 

 

 

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Well have always been a contrarian and have bought more than a few "lemons" (Vega GTs and Astre - key is to buy with AC, they got a real radiator). That is because both enjoy working on them and have the equipment to do so.

 

For limited income friends who are not mechanically ept I recommend name cars coming off lease. Most do not care about the number of doors so selection is wide.

Orlando being the rent-car capital of the world, times should be interesting. Most dealers have full lots already and I see a lot of "bring it to your home" advts.

 

So the environment is already "interesting" and if Hertz dumps it will be unimaginable.

 

Am kinda sorta almost looking for one of two specific cars, a C5 Corvette or a Caddy XLR & occasionally check out FaceBook Marketplace/Craigslist/Autotrader/Gurus and despite quite a wide selection (target rich) have seen little price erosion as yet. Of course this is asking and not selling prices (which from the listing ages.

 

Just curious when those closely watching the market expect that major price drop to occur. Soon or off a aways ? YWTK

 

 

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Someone has to buy a new car so that there are used cars.  Yes, there are ways to make used cars from dealer demo units and the like.  I usually bought new cars at the end of the current model year or as leftovers when the next model year is out.  I did buy used too, primarily when buying a second vehicle like a pickup truck that was used for work or transporting friends purchases.  When you are the only pickup in the neighborhood you have lots of “friend requests” long before Facebook made that phrase famous.

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39 minutes ago, Matt Harwood said:

 

Correct. And while that incident really pissed me off and damaged my hand (maybe permanently), it didn't stop the car from driving me to work every day. Gas, oil, four wheel bearings, and that goddamned tailgate over the course of 10 years and 130,000 miles. That's probably par for the course for any late-model car these days. I find that acceptable, even though Cadillac and I are currently litigating and I probably won't ever buy another one of their cars.

You're a very lucky man!  Your experience with that car is nothing short of remarkable but again you're talking about a car that's 10 yrs old. Increase in tech/parts content just in the last 5 yrs alone have made exactly what you're describing a near statistical impossibility. It would be great to own a new car for 10 yrs problem free but reliability metrics don't lie.   

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1 hour ago, 39BuickEight said:


There are very few reasons to ever buy a new car.

 

1.  You have money to burn and feel good about supporting the economy.

2.  You are buying something like a C8 Corvette or new Ford GT40, because you can.

 

That’s about it really. 
 

Certified used cars come with better warranties.  Even older used cars are priced so much better.

 

 

 

 

Or you live in the Northeast and everything used is rusted.   Then of course I still buy used but from several states south of here and have it shipped. 

 

Let me know when the Saturn Sky redlines tank.  They seem to be holding close to 10 G and up for a nice one, though book seems to say less. Have yet to see may advertised in book range without High mileage or some other issue. 

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11 minutes ago, auburnseeker said:

Or you live in the Northeast and everything used is rusted.   Then of course I still buy used but from several states south of here and have it shipped. 

 

Let me know when the Saturn Sky redlines tank.  They seem to be holding close to 10 G and up for a nice one, though book seems to say less. Have yet to see may advertised in book range without High mileage or some other issue. 

 

Book value on the Skys is not in the right realm. We've sold multiple low-mileage Skys and they routinely bring high-teens, low-$20s. I have a 15K mile black-on-black Redline right now and it's VERY popular at $20K and probably won't last long. And even at that price, I think they're one hell of a big bang for the buck. Really fun little cars with surprising power. I don't know how the book calculates their value at $8000, but that's way off. Maybe something to do with the lease rates and buybacks when they were new.

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Posted (edited)
15 minutes ago, auburnseeker said:

Or you live in the Northeast and everything used is rusted.   Then of course I still buy used but from several states south of here and have it shipped. 

 

Let me know when the Saturn Sky redlines tank.  They seem to be holding close to 10 G and up for a nice one, though book seems to say less. Have yet to see may advertised in book range without High mileage or some other issue. 

 

I've always had a thing for a Mallet Sky.  They look so much better than the Solstice.  $25,500 when a regular Sky is $15,000+ anyway.

 

https://bringatrailer.com/listing/2007-saturn-mallett-v8-sky/

Edited by 39BuickEight (see edit history)
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2 hours ago, Matt Harwood said:

 

Book value on the Skys is not in the right realm. We've sold multiple low-mileage Skys and they routinely bring high-teens, low-$20s. I have a 15K mile black-on-black Redline right now and it's VERY popular at $20K and probably won't last long. And even at that price, I think they're one hell of a big bang for the buck. Really fun little cars with surprising power. I don't know how the book calculates their value at $8000, but that's way off. Maybe something to do with the lease rates and buybacks when they were new.

I've never ridden in or driven one but I figured they were a nice package for the money.  Good looks for the time,  from what I have heard corvette like performance, A solid fairly common drivetrain, so parts should be reasonable but they really don't seem to need much as they are riding on very proven components and from what I see just different enough you most likely aren't going to pass another on the road.  The flip nose looks handy for working on them as well.

Of course I want a stick as well so that eliminates about half of them. 

So I guess they are at the bottom of the curve and if I wait much longer I will be paying more?  I don't want a white, red or Yellow one and I'm not crazy about the two tone interior.  Boy now I'm getting picky. 

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Have had two issues with Solstice/Sky : 4 cyl engines and cloth tops. That said I was sort of in line before they came out and were talking about a V6 and then it went turbo-4 instead. Just personal preference.

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I probably wouldn't have the top up much like my other convertibles,  spring and fall for storage.  I heard the turbo 4 is pretty good in them.  Again nice thing is it's an off the shelf engine shared amongst the fleet so not being exotic is a big advantage when it's time for repairs. 

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That turbocharged-4 makes 260 horsepower and 320 pounds of torque in a rear-wheel-drive chassis that barely weighs 3000 pounds. The Saturn is a little heavier and a little softer than the Solstice, but the Solstice is so ugly that I'm OK with the slight loss of performance in the Sky. The last one I had walked a late-model Mustang GT pretty hard and the guy behind the wheel stopped me to ask what was in it thinking it was modified. Nope. I think that's part of it--everyone underestimates it thinking it's just a cute little car like a Miata. I'll wager that little 4-cylinder will suck the headlights out of anything this side of a C6 Corvette...

 

I, for one, really like them and think they're probably the biggest bang for the buck if you want a 2-seat sports car. 

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I liked the styling first but once I heard about the performance of the redline that sold it.  Now I just have to let the moths fly free if i find the right one. 

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21 hours ago, TerryB said:

Someone has to buy a new car

 

So they can go through life says "drives like new" and know what they are talking about.

 

A mix of both is just fine, but if you want a conversation it seems to require the extremes.

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22 hours ago, Matt Harwood said:

 

Book value on the Skys is not in the right realm. We've sold multiple low-mileage Skys and they routinely bring high-teens, low-$20s. I have a 15K mile black-on-black Redline right now and it's VERY popular at $20K and probably won't last long. And even at that price, I think they're one hell of a big bang for the buck. Really fun little cars with surprising power. I don't know how the book calculates their value at $8000, but that's way off. Maybe something to do with the lease rates and buybacks when they were new.


 

Matt......to show you what a dinosaur I am, I have no idea what the car your talking about looks like. That’s how pre war car I am.

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