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If you're worried about the "value" lost over the first year, then you probably can't afford the vehicle in the first place. Otherwise, you count it as the cost of using the car, and keep it long enough to get equity out of it.
And as was mentioned, these days you might get that equity back way sooner than used to be the case. So you get a new car that no one else has had the chance to abuse, AND by the time you're tired of it, you're not upside down in it.
Buy a car because you like it and can afford it, not because it's a wise financial investment in anything other than your lifestyle (much like a vacation isn't a financial investment, or going out to a nice dinner, or a show).
OR you are good at managing your money.
A Vacation, Meal, Car, or 401K contribution IS an investment.
Unless, like the Federal Government you have your own printing press and an unlimited amount of $.
If you're worried about the "value" lost over the first year, then you probably can't afford the vehicle in the first place. Otherwise, you count it as the cost of using the car, and keep it long enough to get equity out of it.
And as was mentioned, these days you might get that equity back way sooner than used to be the case. So you get a new car that no one else has had the chance to abuse, AND by the time you're tired of it, you're not upside down in it.
Buy a car because you like it and can afford it, not because it's a wise financial investment in anything other than your lifestyle (much like a vacation isn't a financial investment, or going out to a nice dinner, or a show).
Someone on this forum once posted that a car is not an investment, it's an appliance. Once I read that it completely shifted my perspective.
I don't need to google anything. You keep thinking of your meals and vacations as investments. I'll be just fine thinking of them as meals and vacations.
Based on my own experience I would disagree with this statement. There's always a risk that the used car has been abused to the point that parts will start failing shortly after purchase.
Having a mechanic check over the vehicle may slightly reduce that risk, but comes nowhere close to eliminating it.
PS I've never bought a new car, but I'm considering it since there are some great deals out there due to the time of year and inflation of the used car market. There's a Mazda dealer here that lists a few used cars that are more expensive than the equivalent brand new cars after Mazda incentives
even buying a new car does not guarantee that you will have no problems, it also just reduces the risk. this is why the automakers have a warranty on new cars. a good mechanic can, and usually will, find issues that the average mechanic wont find.
A Vacation, Meal, Car, or 401K contribution IS an investment.
No, only the 401K is an investment, opportunity cost or not.
And if you EVER catch me thinking of a car I'm looking at buying as a basic appliance to get from point A to point B and to spend the absolute least on I possibly can, just shoot me.
And if you EVER catch me thinking of a car I'm looking at buying as a basic appliance to get from point A to point B and to spend the absolute least on I possibly can, just shoot me.
That's not quite how I interpreted it. After all, a blender enthusiast isn't going to buy a $15 blender just to make smoothies. The way I see it cars depreciate way too fast to really be considered an investment (with a couple exceptions). There's almost no chance that your asset will appreciate or even depreciate favorably. That's the way I saw it. It certainly doesn't mean you need skimp on the car.
I don't need to google anything. You keep thinking of your meals and vacations as investments. I'll be just fine thinking of them as meals and vacations.
Less "investments" more "as a way you choose to invest your money"
Loosing the opportunity to do something else with it.
I'm sorry you have trouble grasping this very basic concept.
Less "investments" more "as a way you choose to invest your money"
Loosing the opportunity to do something else with it.
I'm sorry you have trouble grasping this very basic concept.
And I'm sorry you have gotten to the point of thinking about eating food vs making an actual investment. Sounds like a horrible existence.
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