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Some people just don't think of a car as just a transportation device.
Exactly. I have two vehicles that I purchased used, both are over 10 years old. One has 117k on it and the other 210k. I put 20-25k miles on a year. In the next year I will be replacing the 210k mile vehicle and for the replacement I'm going new this time. I'm I going to eat the depreciation on it..sure but when I'm done with the vehicle (10 years+) it won't be worth squat anyways. It's been a long time since I've owned a new vehicle and there are a lot of nice options now that my old ones don't have that I would like. It's time.
But all of those same "nice options" are available on a vehicle that's a couple years old, too…
Quote:
Originally Posted by deevel79
I lease new every 36 months because I and my wife depend on reliable transportation and need a daily driver that is not going to give us problems and if so it is covered under warranty.
We have excellent credit therefore we are able to get really low rates on our leases. Also, we dont go high end. Currently we are leasing a 2012 Nissan Rogue and a 2014 Honda Civic. Combined our payments are $518/month for both our vehicles.
I see vehicles as something that provides me a service and treat it as such. Sort of like a cell phone bill. People complain about car payments but dont seem to mind paying cell phone bills in the hundreds (depending on your plan) every month.
I have all of this in a 12 year old Focus. lol
It's a reliable daily driver, requires nothing but occasional oil changes and basics like brakes or tires, and costs me nowhere near $260 month!!
And if something IS going to cost me that much every month, I'd dang well better own that sucker after 3 or 4 years!
(But then my cell phone bill is $50 month for unlimited everything.)
Last edited by itsMeFred; 12-04-2014 at 11:56 AM..
This is a logical fallacy. Warren Buffet is not a car fanatic, like, say, Ralph Lauren (who has a ton of money and a huge car collection) or Jay Leno, or Ron Pratte. Rich people buy expensive cars (and infact, are the only ones that buy them new) as well as spending money on multiple large houses, yachts, aircraft and private islands. They, like any of us, buy what they like and are into. If they are into planes, then they have planes. If they are into cars, then they have cars. Warren Buffet, and a number of other financiers, are NOT into cars, so they don't BUY the cool cars or expensive cars or race cars or classic cars. But other equally rich folk, like Bill Gates, DO buy expensive cars and have collections thereof.
What would be a smart buy for you, like your old Focus, would NOT be for me, as I actualy LIKE cars and like fast cars or cool cars or technologically interesting cars. A new Focus ST would fit that bill. My '63 Mercury Comet hot rod project would be a bad choice for YOU because YOU couldn't maintain it, and you'd have to have some one else do the restortion work on it, so it would cost you way more than it does for me to own.
So can we stop telling others that buying something other than what YOU would buy is a dumb idea? I lease a MINI Cooper for my wife and she writes the lease off on our taxes as she uses it for her home business. We may not "own" it, but we get to use it and when the lease is up, we can write of another new car or move on to something else, new OR used that's fun, stylish, or just pushes the right buttons at the time. And since I get enjoyment out of that, then it's a perfectly reasonable thing to spend MY money on, just like for any other hobby or passion.
I guess at the end of the day it is all about preference. For me I would rather have the paid off Escalade ESV and maintain it than buy a newer SUV and have a payment for 3-5 years.
We have averaged about $2500/year in repairs over the last 2 years. This is with us maintining everything recommended. It is MUCH CHEAPER overall than having a car payment. Here is the math that I was doing when we thought about getting a new QX56 a few weeks ago.
Current car: 2006 Cadillac Escalade ESV
Payment: $0
Full coverage Insurance: $100/mo
Gas: $300/mo
avg monthly repairs: $$230/mo
Mo cost: $630 ; $430/month without yearly averaged repairs.
New car: 2013 Infiniti QX56
Payment: $600 x 60 months ($10k down, loan bal of $36k)
Full coverage Ins: $130/month
Gas: $300/mo
Avg monthly repair: $0
Mo cost: $1,030
I'll keep and repair the Escalade until the tranny or motor blows up!
Last edited by Panther2004; 12-04-2014 at 12:19 PM..
You must be one of the following:
1) young
2) didn't save enough when you were young
3) make a below average wage
Buying a new car gets easier as you get older. If you're making below average then you shouldn't buy new, period. Look at $10-15k used cars. But if you're an average wage earner then it should be reasonably easy to buy a $30k car.
If you put down $10k and finance $20k over 4 years at 2.9% then your payments will be about $450/mo. After 4 years your car is paid off and you can drive that car for another 6 years while saving $450/mo to put as a down payment on your next car. $450/mo over 6 years is about $32k. Now you have $32k and a 10 year old car that's still worth about $5k. That's $37k to spend on your next car which you can buy with cash. Drive it for 10 years and save $450/mo and you'll have $45k and a 10 year old car that's still worth about $5k. That's $50k to spend on your next car.
Do you see a pattern here? Even if you can't afford a $450/mo car payment, this logic still works with smaller amounts. If you drive your car for 10 years and keep saving your monthly payment after the car is paid off, you will always be able to buy a more expensive car 10 years later WITH CASH. The problem is, most people will spend that $450 on something else once their car is paid off, then when it's time to get a new car they start whining that they can't afford anything nice.
How are people buying cars these days? Just about every car is atleast $30k and suv and minivans over $40/$50k. Is everyone financing or saving large sums of money?
The price of a quality new car with some nice options are absolutely insane.
This is a logical fallacy. Warren Buffet is not a car fanatic, like, say, Ralph Lauren (who has a ton of money and a huge car collection) or Jay Leno, or Ron Pratte. Rich people buy expensive cars (and infact, are the only ones that buy them new) as well as spending money on multiple large houses, yachts, aircraft and private islands. They, like any of us, buy what they like and are into. If they are into planes, then they have planes. If they are into cars, then they have cars. Warren Buffet, and a number of other financiers, are NOT into cars, so they don't BUY the cool cars or expensive cars or race cars or classic cars. But other equally rich folk, like Bill Gates, DO buy expensive cars and have collections thereof.
You cut off the relevant part of my quote. I'll put it here so I can make my point again.
Quote:
Originally Posted by itsMeFred
But the vast majority of us are trying to either squeeze as much out of our limited income as possible, or have the money but don't see the logic in typing up that much in a depreciable asset. (There's a reason Warren Buffet drives used cars)
Warren Buffet is one of those people who HAS the money, but doesn't see the sense in tying it up in a depreciating asset. It has nothing to do with car people, or rich people who blow money on cars or anything.
My point was simply that new cars are not a good investment. As well as being horrendously wealthy, Buffet is first and foremost an investor.
Quote:
Originally Posted by Merc63
So can we stop telling others that buying something other than what YOU would buy is a dumb idea? I lease a MINI Cooper for my wife and she writes the lease off on our taxes as she uses it for her home business. We may not "own" it, but we get to use it and when the lease is up, we can write of another new car or move on to something else, new OR used that's fun, stylish, or just pushes the right buttons at the time. And since I get enjoyment out of that, then it's a perfectly reasonable thing to spend MY money on, just like for any other hobby or passion.
And again, you missed the relevant part of my statement. I'll put it here so I can re-make my point.
Quote:
Originally Posted by itsMeFred
New cars almost never make financial sense. If you have that much disposable income to blow, go for it. Be happy. Everyone likes new toys.
You cut off the relevant part of my quote. I'll put it here so I can make my point again.
Warren Buffet is one of those people who HAS the money, but doesn't see the sense in tying it up in a depreciating asset. It has nothing to do with car people, or rich people who blow money on cars or anything.
Actually it still doesn't make your point, because Warren Buffet is not a car guy so he NATURALLY would not buy cool or interesting cars, as he's not interested in them, whether he's an investor or not. He also does not buy INVESTOR qualty cars that earn their owners millions of dollars. So using HIM as the "reason" you shouldn't buy cool or interesting or new cars is not a valid point, no matter how many times you say it.
My '63 Mercury Comet hot rod project would be a bad choice for YOU because YOU couldn't maintain it, and you'd have to have some one else do the restortion work on it, so it would cost you way more than it does for me to own.
What a very odd statement.
Why would you make the assumption that I would pay someone else to do this because I'm incapable?
(In case you haven't guessed yet, your assumption is WAY off the mark. lol)
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