5 Things You Should Never Buy New

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Being frugal doesn’t mean you have to give up the niceties in life; you just have to be more creative in acquiring them. Here’s a quick list of luxuries you can buy used and not sacrifice quality.

1. Cars. Once you drive off the lot in your new car, it depreciates in value by 12%. By Buy a used car, when its rate of depreciation flattens out, you put yourself into a cost-effective automobile that ought to last you several years. And let’s be honest with ourselves. There’s really not much of a difference between the 2004 model and 2007. Car makers just want you to think there is.
2. Books. I used to be a sucker for buying new books, but then I realized I can get them for much cheaper online. Here’s how I get a hold of books. First, I check my local and school library. If they have it, I just check it out and read it. Cost? Zero dollars. If the library doesn’t have it, then I check Amazon. You can often save up to 60% on books at Amazon. I’ll go to the bookstore to find books I’d like to read. But I hardly ever buy there.
3. Homes. First, a used home will usually have a lower property tax, as new developments tend to grow in outlying areas that start with little or no tax base. Accordingly, the city often looks to buyers in the new developments to raise revenues for things like police and fire services. All and all, this can result in long-term savings for you. Additionally, a used home is more likely to have a negotiable price, whereas a builder/developer will adopt “take it or leave it” sales tactics
4. Sporting Goods. If your sports fanatic, sport equipment can get pricey. Instead of buying new, check out Craig’s list or EBay for all your sporting needs.
5. CDs/DVDs/Video Games. I try to take the same approach with these items that I do with books. Always check Amazon out before you buy CDs/DVDs/Video Games. You might be surprised by the selection of DVD’s your local library has. You can avoid spending money at all on DVDs if you use them. If you watch lots of DVDs or play lots of video games, services like Netflix and Gamefly might be a cost effective way to get your entertainment fix.

[tags]shopping, house shopping, cars, DVD, Netflix, Gamefly[/tags]

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19 Comments

1. The Frugal Law Student on 05.04.2007 at 11:09

   […] Your browser does not support frames. Please click here http://www.frugallawstudent.com/2007/04/05/6-things-you-should-never-buy-new/. […]

2. Sonadora on 05.04.2007 at 14:43 (Reply)

   Great blog, you’ve got some good stuff here.

   I just finished law school last May and while I have the debt and all that jazz, I actually managed to save money while in law school by deciding the interest on my money in ING was earning more than the interest rates on my loans would be when I graduated. Not to mention I ate a lot of Ramen and worked 20 hours a week!

   Best of luck with your upcoming exams.

3. Teena in Toronto on 06.04.2007 at 20:35 (Reply)

   Thanks for the tips

4. Gina Van Detta on 07.04.2007 at 05:46 (Reply)

   To learn more about John Marshall Law School, Inc., in Atlanta Georgia, a for-profit law school, see www.alpjusticepact.org or email gina.motherofthree@gmail.com.

5. GradGirl on 07.04.2007 at 11:10 (Reply)

   Great thoughts! Thanks for posting!

6. test : demo on 08.04.2007 at 23:07

   […] 6 Things You Should Never Buy New […]

7. Accumulating Money » Carnival of Personal Finance #95 on 08.04.2007 at 23:43

   […] 6 Things You Should Never Buy New […]

8. broknowrchlatr on 09.04.2007 at 05:08 (Reply)

   I’m 80% with you. When you buy a new house, it is often in a new subdivision. The price tends to be slightly under market value for 2 reasons. 1) Many people don’t like the work required in getting a new home established. They like to move in to a house that is already ready to live in. Case in point. My brother in law bought a 5 year old house for about 2% over the rate of a brand new house in the same neighborhood. He didn’t want to have to get the flower bed and lawn going. 2) Partially becasue of #1, houses in a new neighborhood tend to increase in value once the area is finished. Buy a new house and wait a couple years for all the development to finish and for the dust to settle, and you may very well have enough equity gain to overshadow the higher taxes.

   Another point is that when you buy a home, everything is new. So, you probably have at least 5 years of beign sure no appliance will break down. If it does, you can likely get the builder to replace them (being under warrantee)

9. Tight Fisted Miser » Carnival of Personal Finance #95 Is Up on 09.04.2007 at 08:38

   […] “5 things you should never buy new” from the Frugal Law Student.  For the 4 things on the list I’ve actually bought I agree. I don’t plan on buying any of those items new and probably won’t buy a new house either. […]

10. plonkee on 10.04.2007 at 04:28 (Reply)

    Over here in the UK, brand new houses tend to command a slight market premium and have a lower square footage than older houses. They are almost never a good deal, unless the developer is desparate. People are actually willing to spend more money to get a smaller house just so they can be sure no one has used the shower yet.

11. Mike on 11.04.2007 at 06:37 (Reply)

    I think in terms of frugality all of these make sense. With text books I buy used whenever possible.
    However, with other books and especially with CDs I often buy new because I want to support the artist that created them. Buying a book or a cd means it is more likely that author or that band will release another one. Sure, my contribution isn’t huge- but sometimes I still like to make it, I figure a three or four dollar increase in price is often worth it. Really, with used CDs I know that legally there is some difference but I don’t see much difference between buying a used CD and just downloading the album. (when there are a number of CDs I’m interested in buying I’ll often listen to them online or download them to see which ones I’m actually interested in before I go out an buy one or two of them)

    Oh, and good luck with finals.

12. zen on 12.04.2007 at 09:22 (Reply)

    I’m with Mike - I like supporting the artist, so I tend to buy new (and at the concert, especially with smaller acts).

    Books? I’m all about used. I love getting one with plenty of additional notations and notes added and highlighting the important parts.

13. The Frugal Law Student on 12.04.2007 at 19:27 (Reply)

    Great comments, everyone.

    I agree supporting the artist is important. I guess I’ve become a cynic in thinking that the artist hardly gets any of the money if I buy new, so what’s the point?

    If it’s a smaller act or someone selling on their own, I’ll buy new because I feel the artist will get more of a benefit.

14. pf101 on 16.04.2007 at 10:07 (Reply)

    Books are my downfall. I rarely buy new but I also don’t get them from the library (unless I’m buying their used ones). I’m developing my own library and like to read my books over and over. I’m also horrible at returning things on time so I’d owe a TON in late fees.

    Good post!

15. MeMyselfAndI on 16.07.2007 at 08:30 (Reply)

    Other valid points:
    1) Cars: I disagree to get a 3 year old vehicle. Why? A 1 year leftover (or car simply used by folks that need transportation for a day while their personal car is in the shop), will usually still have a warranty on the vehicle. And because they need to move the product off their lot, they can choose to lower the asking price. In our example, a Toyota dealer was asking $17,300 for a 1 year old Corolla. My wife and I talked them down to just $13,900!

    2) Books: Borrowing books does cost money. It’s simply rolled into your taxes (whether you’re renting, or own the home).

    3) Homes: Buying a used house (i.e. 10+ years old or so), can get you into a heap of trouble. I’ve seen many new houses that the first homeowner only paid for 15 year shingles, so you may only have about 5 years left in the shingles. Also, if you get a new house, your major appliances (i.e. heater, hot water heater, central air conditioner).

    4) Sporting goods: There are certain items that I know that I wouldn’t purchase used in this category. Jock straps or socks. Also, I’d only buy a helmet or shoulder pads if I knew the person, and knew how they took care of it. Think of the transmission of diseases through something like this.

    5) CDs/DVDs/etc: I would never buy these used. The number of scratches, etc. are astonishing. Don’t believe it, just go to your local BlockBuster and rent 4 movies (which they end up reselling as used after a certain timeframe). I’d bet that on average 2 out of those 4 will be scratched very badly. This has also happened when we’ve borrowed DVDs from our local library, although it’s probably more like 1 out of 4 that had problems.

16. Brett McKay on 16.07.2007 at 17:30 (Reply)

    MeMyselfAndI-
    I think you make good points. Especially in regards to used homes. I’ll concede that borrowing books from the library is a hidden cost by way of taxes. But the amount I pay that goes directly to taxes is so small that borrowing books still beats buying new.

17. The Best of Frugal Law Student 2007 | The Frugal Law Student on 31.12.2007 at 10:22

    […] 5 Things You Should Never Buy New What Does It Mean to Be Frugal When You’re Wealthy? Battle of the Sexes: Who Spends More? Do This, Retire Rich “Super Suppers:” Not So Super […]

18. 5 Things You Should Never Buy New - MakeupTalk on 14.04.2008 at 23:49

    […] CDs/DVDs/Video Games. I try to take the same approach with these items that I do with books. Always check Amazon out before you buy CDs/DVDs/Video Games. You might be surprised by the selection of DVD’s your local library has. You can avoid spending money at all on DVDs if you use them. If you watch lots of DVDs or play lots of video games, services like Netflix and Gamefly might be a cost effective way to get your entertainment fix. Source […]

19. Christine on 18.04.2008 at 16:11 (Reply)

    Great post, although as far as video game rentals you should check out Get Your Gamez. Their service is top notch and depending on where you live in the country their ship times are better than Gamefly and MUCH better than Gameznflix!

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