206 replies to this topic

[ChipShot]

The new car thang is crazy.

Yet you buy a new one every 9 years. Uh, OK. Now I understand.

[Nylaan]

I criticize people who buy "brand" new cars because of the immediate depreciation of driving off the lot. Buy that same car 1 month later, and save 15% yet still have a reliable vehicle.

This isn't exactly true. The car I paid OTD for $20K new; you may get it for $15K (with about 4X the mileage of my car) or $17K (with 2X the mileage). To know the entire history of the car adds value in my mind because it reduces risk of repairs or issues that are not my fault.

On top of that I fully plan on owning for ten years. The 1996 version goes for $4-6K with 150K miles (I'll have maybe 100K) which would put me on track for $1500/yr for depreciation.

Running the numbers if I bought for $17K today, over 8 years is.... gasp.... $1500/yr in depreciation!

Of course I could have bought a different car. But for what I got, you'd be hard-pressed to find many cars that will be much cheaper in the long run. And I get the peace of mind that I know the entire history of my car.

The key to not wasting money on cars is not necessarily to buy used - it's to buy what you need. From my price point I'd have to sacrifice a lot just to save a couple hundred a year, but based on the vehicles I see around Folsom, there are people who pay much more (both because their vehicle depreciates more per year and because they replace more often than they need to). And that is far more costly in the long run than fretting whether to but your economy car used or new.

The other advantage to buying newer cars, for me, is buying less cars in the long run - I will never drive something older than ten years old because I would never want to be that far behind in safety technology. Would you rather drive the safest 1998 car or an average 2008? And while I'd be fine driving a 2003, I'd also rather buy a car once every ten years than once every five.

The key is to not overpay for your vehice. That doesn't mean new isn't an option.

[mylo]

This isn't exactly true. The car I paid OTD for $20K new; you may get it for $15K (with about 4X the mileage of my car) or $17K (with 2X the mileage). To know the entire history of the car adds value in my mind because it reduces risk of repairs or issues that are not my fault.

On top of that I fully plan on owning for ten years. The 1996 version goes for $4-6K with 150K miles (I'll have maybe 100K) which would put me on track for $1500/yr for depreciation.

Running the numbers if I bought for $17K today, over 8 years is.... gasp.... $1500/yr in depreciation!

Of course I could have bought a different car. But for what I got, you'd be hard-pressed to find many cars that will be much cheaper in the long run. And I get the peace of mind that I know the entire history of my car.

The key to not wasting money on cars is not necessarily to buy used - it's to buy what you need. From my price point I'd have to sacrifice a lot just to save a couple hundred a year, but based on the vehicles I see around Folsom, there are people who pay much more (both because their vehicle depreciates more per year and because they replace more often than they need to). And that is far more costly in the long run than fretting whether to but your economy car used or new.

The other advantage to buying newer cars, for me, is buying less cars in the long run - I will never drive something older than ten years old because I would never want to be that far behind in safety technology. Would you rather drive the safest 1998 car or an average 2008? And while I'd be fine driving a 2003, I'd also rather buy a car once every ten years than once every five.

The key is to not overpay for your vehice. That doesn't mean new isn't an option.

After a 5 second Craigslist search: http://sacramento.cr.../458399471.html

"RETAIL WAS $84,000 SELL NOW FOR $69,500"

$14,500 depreciation in 1 year, also known as 17.26%, and that's assuming you can't talk him down further.

[Dave Burrell]

Define "cash".

Do you mean "liquid assets that could be converted into a vehicular purchase" or do you actually mean "wads of bills in a sock drawer". If the latter, that's not a very safe way of keeping your money

this kind




I get the impression he has a vault at home full of it.

[ChipShot]

I get the impression he has a vault at home full of it.

We are comfortable, but that doesn't mean I bought a Lexus or BMW. I am smart with my money...which is why I have some. I could have bought-up, but why?? Now, if I had 'Lottery" money, that's a bird of a different story...or something like that !!

[cw68]

Yet you buy a new one every 9 years. Uh, OK. Now I understand.

No, all but one of my cars was a used one and I'll never buy new again. It was a mistake.

[ChipShot]

No, all but one of my cars was a used one and I'll never buy new again. It was a mistake.

OK, OK...you hate new cars. We get it. They're evil. We know. Sheesh.

[Nylaan]

"RETAIL WAS $84,000 SELL NOW FOR $69,500"

My point is money-related and how buying a new car doesn't mean you are spending less. I suspect there are people who buy used cars and spend more than I do per year - how does that necessarily make any more sense? I can't imagine you are telling me that buying a used Lexus is a better financial deal than buying a new anything under $20K.

When money is all that matters, what do you think is good? Adding up insurance, maintenance, repairs, depreciation, gas, etc. I can show my cost for first year of ownership was just about $3K and that is pretty much the expectation for years 2-10 also, with maybe a small dip to around $2.5K for a couple years when the depreciation is less but the repairs haven't kicked in yet. What do you think is reasonable?

Where do you lie on that scale? How many days a year do you lose because your car is in the shop? (Opportunity cost of having a used car...)

I also require pristine reliability. I don't exactly have a SO to drive me to work or help with errands if my car is in the shop. I'm simply screwed. It's the primary reason I got rid of my old car (92 Ford Escort). When I break down, I am completely at the mercy of the person who tows my car and where it gets taken because I have no idea how to do that optimally.

[mylo]

I bought a used car, my year 1 cost, including depreciation, is less than $500. I saved $2500 if you compare the two of us At $7k for the car, that's 2.8 years and I could buy another one!

[Nylaan]

So your car will never have repairs, and insurance and gas is free? Let me in on your secret!

[ChipShot]

Some of you don't leave Folsom, so reliability isn't an issue. You'll drive the thing till it dies on Bidwell . Sorry....that ain't me. I drove my Explorer until I knew it was 'time'. CarMax gave me almost triple what any dealer would have on trade, so I was happy. Now it's someone else's problem. Choices.

[mylo]

So your car will never have repairs, and insurance and gas is free? Let me in on your secret!

All cars have repairs. My older volvo has cheaper repairs than most new cars, and a lot can be done myself (harder to do on new models).

Insurance and gas are non-discretionary spend, but I'd still bet those costs on my $7k car that gets 28mpg are lower, too.

[DrKoz23]

You'll drive the thing till it dies on Bidwell .

Is that EAST Bidwell???

[Orangetj]

Hey, Mylo - what kind of car did you get for $7K?

[ChipShot]

Hey, Mylo - what kind of car did you get for $7K?

Sorry