Either way I spend 12k cash now. But I think the newer Corolla might last a lot longer? But then I have a loan for four or five years. Idk which is better. I’m worried if I buy the older one it will break down in the first couple of years
Buy 10 year old/110k miles Toyota Corolla for 12k with cash or buy two year old/33k mile Toyota Corolla for 22k with 12k down payment
byu/theRedditUser58 inpersonalfinance
Posted by theRedditUser58
18 Comments
Honestly the 10 year old Corolla will probably run another 100k miles easy, these things are basically indestructible. Having no car payment is gonna feel way better than driving something slightly newer with debt hanging over you for years
I’d go 10 years old but honesty the price difference if you are keeping this car for an extended period isn’t major. I mean like 7-10 years of ownership for either car. If you plan on having it for <= 5 years I’d go with the older one. If you are keeping it for the better part of a decade or more, I’d go with the newer one.
So if you financed the remaining $10,000 on the newer car for 5 years at 6.5% interest, that’s like $200/month.
I honestly think you could have an independent mechanic look at the 10yr Corolla and have them check everything out for $75-$100 and if that checks out, I’d but that. The mechanic is going to be able to help you make a good decision.
Disclaimer, not financial advice, just some thoughts on the car market to ponder on. A $22k used Corolla with 33k miles is a bad deal. That pretty much is what the car was worth when it was brand new with its MSRP in 2024. Your monthly rate even with good credit would likely be taking a big chunk of money per month for more than what is reasonably worth in a used car.
With decent/good credit a person can get a near identical monthly payment for something nobody else has ever driven, with a factory warranty (although its likely you wont need it if you are looking at anything Toyota, Mazda, or Honda in their compact lineups).
There certainly is power in not having a monthly payment, and a 110,000 mile 10 year old Toyota realistically does have life in it.
Not really an answer to the question but hope it provides another perspective :-p
Factor in the cost of consumables in the older car. Tires, battery, brakes & rotors, etc. every car needs it eventually, but a 10 year old might need all of it tomorrow
I stg I thought you were buying a Toyota Corolla for a 10 yr old child at first.
I recommend the older vehicle with a good pre-purchase inspection, and then still make the car payments you would have made on the newer vehicle, but put them in a HYSA instead. If you need money for repairs to keep the older car going for longer, take it from that car fund, but otherwise keep building it for as long as you would have had the loan. When the car is actually not worth repairing, then you’ll be prepared to replace it without taking on debt. Repeat every 10 years or so, and you never pay interest for a car again.
If you drive 20k miles a year or less, buy the 10yr old, if you drive over 20k miles a year buy the 2 year old.
A Corolla realistically will get you 300k miles if well maintained, and possibly more. You take a bigger risk in not getting more by going with the 10yr old one without knowing how it was maintained.
1. Have you compared the 2023/2024 to a new model? Some dealers may be very eager to off-load a 2025 if they still have any. New cars often have favorable interest compared to used vehicles. That brings me to item #2
2. How’s your credit/what’s the interest rate of the loan? If your credit is garbage and you’re going to have 20% interest it makes the decision much easier.
3. How much savings will remain after spending $12k? If it brings you to zero savings/EF then you should likely reduce your budget/down payment.
4. How quickly will you be able to re-save this amount back up?
Newer cars have more computer / electronic features that may break down and more costly to fix. I drive a 1996 tacoma and 2006 corolla – both still running strong with no major work.
I’m going to go against the grain and say don’t get a super old corolla. If money permits. I would recommend getting at least a 2023 Corolla because it has Toyota safety sense 3.0. It can basically drive itself on the highway and on most roads. It’s super convenient and makes long commutes super easy and less tiring. This technology simply doesn’t exist on older cars, and tbh completely slept on, espcially used car enthusiasts. Brand new Corolla hybrids can go for like $25k, so it’s not like you have to get a really high mileage few year old car.
I personally have a 25 Camry and I love this feature about it. Yes I do felt like I did spend a lot and I could have saved 10 grand probably buying used. But buying used you kind of lose out in the longer run anyway, so it kind of evens out. Why not just get the better car now anyways if you’re going to spend the same amount eventually. Assuming you keep it 10-15 years. And also Toyota is not the only option you can go further brands that have slightly less reliability but they have better APR deals.
if the older car with high mileage is properly taken care of, for example regular fluid changes and no short drives etc. it will be a better car than the one with less miles that’s driven by an idiot. Just food for thought. get them inspected by a trusted mechanic.
12k for a 10yr old Corolla is asking quite a bit, even for a audi a4 that would be asking top dollar lol.
You can find better deals at car auctions man and much easier to deal with. Don’t get anything too mashed up. Always filter by runs and drives with clear title. this will help and keep the odometer reading below 100k.
In this forum, the answer is buy the 10 year old corolla. Never finance a car if you can afford a reliable one without financing. A 10 year old corolla with 110k miles is still reliable.
I mean new carollas are, what, 24000?
If you want to go down the new route just drop 2k more for a brand new
As someone with a 2 year old Corolla, get the 10 year old one. The newer models are a lot more cramped than the older gen. My mom has a 2016 Corolla and it is noticeably more comfortable to drive and ride in (6 inches more leg room in the rear seats!). I don’t even know how that happened when the dimensions of the car didn’t change. Its a bummer.
You should be able to get a brand new ’25 Corolla for about the same cost as that two-year-old one and probably get a better deal on the loan for it if that’s the way you choose to go. I don’t think the two-year-old Corolla should even be an option.
Hard pass on that brand new corolla price for a used one thst will also come with interest payments making it more expensive than a new one.
Hard hard hard pass.
Buy the newer model! You’ll be happier with your decision the day you buy it and the day you sell it. The amount you’ll pay to finance the remaining 10k for a couple years is close to insignificant.
Be happy. End of story.