Question Used Car Prices :How High Is Too High?

[Barbisi]

Hey, car gurus (@shipo,etc.) what is too much to pay for a car? How much milage should we be looking at?
Today we looked at my husband's first choice (for now), a pre-owned certified 2020 Subaru Outback with around 24K miles, a CD player, etc. The cash total would be about $40,000 total (with nearly $4,000 in Washington taxes added on). If we financed at that price our car payment would be insane and we still have to get a second car for me.
What kind of milage is recommended for a used car?
We are not too car savvy but don't want another Nissan lemon and aren't mechanics who can spend endless hours repairing cars.
Thanks for any tips or advice!

[shipo]

In this car market I wouldn't even consider a used car unless it was a classic of some sort. Why? The prices are too high to make economic sense. What I would do instead is shop around for a dealership which sells their new cars without a markup (there are still a few out there), and buy new.

[bornfree2]

I havent been shopping for cars but is that really where the market is at now? $40k for a used car? Cant you get 4 other, reliable used cars for that budget?

[Zombie13]

I did a quick search on one website; 2010-2013 models, 50k-140k miles, can be purchased for around 10K. Yes, they are expensive.
I could replace my transmission again, 15 months after doing so already, for $4500. I could replace it again next year as well, for another $4500.
Though, I am not keen on that idea. Warranty is 12 months/12000 miles. Lame-o.
The 40K price tag is for a specific vehicle, an SUV. We just started looking yesterday, so we need to learn, collect information, before making a well informed decision.

[Barbisi]

Thanks shipo and bornfree2 , I do agree with both of you but solely because of the timing of the BK13 discharge and the relocation we now have two cars pretty much on their last legs : mine (2005), in addition to no radio/cd player (due to fried speakers)and a back right window that has no power (it can't be opened or closed)and a cracked drivers inside door handle, this Sentra now has a short in the fan heater/ AC and consequently does not work at all, meaning in foggy or rainy conditions there is no defroster (very dangerous here where it does rain often)and in warmer weather no AC or heat in colder weather. It started cutting out in Colorado, worked a couple of times here but died completely this week. Also, the driver's side is starting to creak and stop working electronically any day now like the back one(!) ,the 2013 has a frequent clonking sound and we were told in Colorado there is a leak near the transmission (which was replaced only last year during the last months of the BK13.) The KBB value of mine is only around $200+ hardly worth spending $$$$$ to keep it running and my husband detests his lemon Sentra and understandably does not want to spend another 4K + (new transmission ,etc.) just to keep it running since he has a very long commute daily. When we last checked, the KBB was under $4,000 , I believe, so it doesn't make sense to pour even more money into a losing proposition (propping up an almost rickety jalopy) when we finally have the funds to buy something a lot newer with many miles less.
I too prefer new, but at that particular car lot the 2022's cost at least 10K more and I feel they will lose their value quickly in this market. I almost believe buying used is better right now because of the incredible markups and inflated prices, so when the crash happens maybe the value on the used cars won't plummet as much as those on the brand new models. Of course we still have to look at Toyota and Mazda and maybe others.
We have only purchased new in the past , and we are not comfortable selecting any used car with out a dealer warranty (e.g. at the Suburu dealership we visited, that particular car had a 100,000 mile warranty) , since we neither know how to fix or diagnose car issues ourselves.
I do hope the two cars don't spin out of control in heavy traffic - that could be fatal.
Wish us luck!

[shipo]

Just for kicks and giggles, I checked the Mazda of Seattle web site, they have a whopping 92 brand new CX-5s showing either already at the dealership or in transit to their location; they range in prices from a low of $27,475 for a 2.5 liter "S" model to $41,510 for the fully tarted out CX-5 2.5 Turbo Signature edition. What I don't know is if Mazda of Seattle sells at MSRP or of they are engaging in price gouging, but with so many vehicles either already on the ground or on the way there, I'm thinking there is a pretty good bet you can get one for MSRP. Might be worth a call/visit and have a look-see.

[Zombie13]

I did check the Mazda site as well; their prices do appear lower than Subaru's; my default questions are Why, and What's wrong with them LOL! I ask that since some other car lots in the area have less inventory:: ie if Mazda has more cars, why? That's me being pessimistic. We are not familiar with Mazda, and marginally familiar with Subaru, so we are educating ourselves. We will ask them for an out the door quote, since we would need that anyway for a cashier's check from the bank, if we pay in full.

[shipo]

Look around, the CX-5 seems to win as many awards as all if its competitors combined. Then there is your other hot-button issue, reliability, Subaru and Nissan are routinely considered at the lower end of the reliability spectrum, Toyota and Mazda at the top.

[Barbisi]

shipo, I'm not as sold on Subaru as Zombie13 seems to be.
I think 40k is too much for a used car as well. I didn't care much for the salesman either!( Not a great sign, eh?)

[Zombie13]

Yes, the CX-5 does look promising, and there appear to be several available, near us.
The 40K for the Subaru includes TTL - tax, title, and license.
Wait... Nissan... on the low end of reliability scale? You're kidding!! LOL!!! Just kidding; we agree with you shipo. Ok now I will step away from the keyboard...

[Barbisi]

shipo , we finally got a chance to check out the Mazda mark and now Zombie 13 really likes a 2019 FWD CX-5 Touring model he test drove tonight. It's 27K (plus around 3k for tax, title, and license.) So grand total : 30k.
It is a pretty basic CUV, not a full SUV, but seems to have a lot of pep and comfortable seats. (No Sirius screen option but an adapter can be done.) It has only 16K miles and we were able to see the AutoCheck report and found out it had one driver and was a lease from California.
Any red flags?

[shipo]

Sounds like a good find. I would run a CarFax on it just to be sure; does it come with an extended warranty?

[Barbisi]

shipo ,the dealership printed out a 4 page AutoCheck (supposedly the equivalent to Carfax) report detailing its entire history. No accidents or repairs but no detailed maintenance listed either. It's not really basic - it has cloth seats with leather trim, a Bose sound system and gasp....... a sunroof, LOL!
As for the extended warranty ,the salesman ,much more professional and polished than the Subaru guy, explained they didn't offer the Certified pre-owned option because it was so much costlier (hence the 40k Outback!) They do have a 60k powertrain warranty still in effect and we could purchase an extended warranty. We didn't get numbers for that -what would be too much of an extra cost?
Also, the back hatch would not open, either from inside the car or with the remote ,so it's in the shop today for repair (Is that a bad omen?)
They did tell us someone borrowed {test drove} it overnight but didn't buy it - more cause for concern? They did agree to wash it, but we are wondering if we should pay a mechanic (One does checks of Japanese cars nearby) to make sure other things aren't wrong that might show up only after it's driven off the lot. Should we pay for a tune up ourselves?
We have never bought a used car before so we are concerned about lemons, naturally.
We did consider new 2022 Mazdas, but none were available to test drive and they either are still in Japan at their plant or on the boat scheduled to arrive in three or more weeks.(The biggest concern we have is how long my husband's car will continue to run with out a major breakdown, and with the leak near the transmission we are fearful it could happen any time.) So putting down the $500 deposit would be no problem, but the wait might be.
The bottom line on the specs : the infotainment screen is less fancy and much smaller than 22's and has fewer music options so it seems more basic to me but this would be Zombie 13's car, not mine, therefore he needs to be happy!

[shipo]

Hmmm, I might be inclined to wait; transmission fluid is cheap; dump in a little per day and you should be good to go.

[Zombie13]

RE: the transmission:
we replaced it 15 months ago; a loud knocking when turning at slow speed (0-20 mph) started occurring, and has persisted since. Took it to Nissan to review once we heard it, they said the transmission was fine. I took it to Pep Boys: they said, bad struts, which were replaced. Noise continued. I took it back, Pep Boys said, struts put in were bad, so they replaced for free. Noise continued. I gave up trying. Took it to Pep Boys again just before leaving Denver, they say, there is a leak near the transmission. So, I do not know if it is the transmission or something else. But, it is very unnerving hearing, and feeling, this Bang frequently. I could take it to a few more shops to ask them all, what is it? And have them replace whatever they suspect it is. Or say to heck with it, and replace the vehicle.
As a note, and maybe this is the issue: when the left axle broke a few years ago, the front hood no longer closes perfectly. One side is 'up' a little. So perhaps the frame got bent when the axle failed, and now we get metal hitting metal under specific conditions when turning. Thoughts? In any event, I am done piddling with this car.