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In all seriousness, that is why I do have a new car, though it was unexpected. My sister had her hours cut at her old job (this was when the recession was at its worst) her plans to move out of our parents house and into her apartment fell through as a result, and her 11-year-old car was on its last legs. Our folks had come into some money--they weren't super wealthy as a result by any means, but they were now more than very comfortable--so my dad bought her a new car. Now, my dad will go bargain hunting--he waits until the new models are coming out, then go hunts down a deal on the outgoing models still left on the lot. And my dad is one of those who'll go in at the crack of dawn and stay until midnight if he must in order to get what he wants at the price he wants. (That any dealership lets him in twice astounds me. I often think they give in to him just to get him to go away.)
Anyhow, it just bugged my dad that he'd bought my sister a new car and didn't get me one. (His parents had played favorites with him and his siblings, so he always did his best to try not to do that with us.) I told him I didn't care (I was working full time and making twice what my sister had when she had been working full time, plus my car was seven years old--had a few problems here and there, but still very reliable.) My mom told him I didn't care. My sister told him I didn't care. But he kept going on that it wasn't fair, so finally, I gave in. (Though we agreed I'd pay the sales tax and car registration.) So my dad went to work bargain hunting, and by the time all was said and done, he got me a 2014 model (he hit the dealership just as they were trying to make room for the incoming 2015's), and got it down from the sticker price of a little under $24,000 to a little over $12,000. So now I have a new car I'm not paying for. (Though every so often I discreetly check with my mom to make sure they're still good with paying for it. She assures me they are. I do love it, and I'd be fool to turn down a new car with some nice features that I don't have to pay for, but it's a big purchase, and I just remember that we were very middle class growing up, so I'm stuck in the habit of thinking that 'we' have to be mindful of our money.)
In all my driving years, I've had:
1.) Two mid-1970 Ford Mercurys when I was stationed overseas while in the Army. Being a poor solider, I went for 'runs and is cheap'. I paid $400 for one, and when that broke down, it was cheaper to have it towed away and pay $400 for another one like it, rather than fix it. I sold the second car to another solider when I transferred back to the states. I don't necessarily *count* these cars, in a sense, given that there was no intention of keeping them for very long. (It wouldn't have been worth shipping them to the United States.)
2.) A used 1992 Jeep Cherokee that I bought in 1994, and had so many problems and so much hassle with the dealership from which I'd bought it over fixing those problem that I got rid of it in 1997, three years after I'd bought it. I can't remember exactly what I paid for it now, but I do remember thinking afterwards it wasn't the bargain I thought it would be. This experience made me suspicious of buying 'used' cars that had been 'reconditioned'.
3.) A new 1996 Jeep Cherokee that I bought in 1997. That was a good car. I still miss that car. I think it cost about $12,000? I know it was a five-year payment plan with decent interest rates. I'd have to go back and check, I know I have the records somewhere. It was the last of the 'no power windows, no automatic locks' that I ever saw, and had 4-wheel drive. It lasted me until 2007, and I drove it all over nine states. That last year with it was rough--it was breaking down so often and costing so much money I finally figured I'd be better off buying a new car.
4.) A new 2007 Saturn ION. Had some nice features. Power locks and windows, which I thought was nifty (since none of my cars had that before.) CD player (the Jeep before it had a tape deck, but no CD player.) The price itself wasn't bad, but unfortunately, between 2003 and 2006, my job field had taken such a nosedive that I'd been laid off twice from two companies that had gone under, and had been taking jobs that paid a lot less just to keep working. Unfortunately, that put me behind on bills, so my credit rating was shot, so they got me on interest charges. (But they would've hit me on interest charges even if I'd bought used, and after the experience with the 1992 Jeep, I was determined to not do *that* again.) After awhile, I was able to refinance the car at a better rate. That was a pretty good car too. I had one minor problem with the drivers window (turned out my dogs' hair got sucked down into the track and jammed the mechanism, whoda thunk? But the mechanics simply vacuumed out the dog hair and it was fine again.) It had a more major problem in the last year I had it, but that was mainly due to parts wearing out. (Which sucks, but happens.) I had that car until August of this year, when my dad insisted on buying the new one.
I think a lot of people get caught up in all the latest and greatest features on the new models, and that ends up jacking up the prices for things that drivers have done without all these years (for example, when rear-view cameras first came out on cars, it made the cars more expensive. Now they're becoming more standard.)
And there might be some who get caught up in having the most up-to-date gadgets on a car. For example, CD players *were* available for Jeeps in 1996....but they were *pricier* at that time, because it was still a new enough thing to jack up the price. (I still had a lot of cassettes, so I played those in the car and recorded any favorite CDs to a cassette tape.) Eventually, the tape deck wore out, and a cheap CD player was installed. And automatic locks and power windows were available, but still new enough to push up the price. By the time I bought a 2007 car, CD players and power locks/windows were standard, but USB ports and remote starters were just coming out, and *those* were pricy. Now I have a 2014 car with a USB port, and that's considered par for the course now. It also has remote start, and while that's not standard yet, it's also become more common that it's not that expensive anymore. I think that's a lot of it for me....while I'm fascinated with the latest gadgets cars come with, I'm okay waiting a few years until they become part of a 'standard package' instead of being charged a lot more extra to have it.
Honestly, given a choice, I'd just as soon drive the car until the cost of keeping it running is more prohibitive and time-consuming than buying a new car would be. I definitely don't like the "I just finished paying for it, time to get a new one!" (I want to feel like I got more than my money's worth out of the car, which for me means I'm still driving it a few years after it's been paid off.) I don't particularly like having car payments (I doubt anybody does), but most people just don't have the cash on hand to buy one outright, new or used.
What I'm planning on doing is setting aside some money over the next few years, so that hopefully when the new car is not new and needs replaced, I have more money for a down payment so that whatever car I buy after this won't cost so much in car payments. But I'm recognizing that I have that luxury, thanks to my dad. A lot of people just simply don't have that option.
Even if you buy a new $40000 car and finance it at a low or zero rate what about the higher insurance? In my state what about the $2800 sales tax check? And the $1800 first year registration?
Those two things really make me shy away from new / expensive cars.
Yikes.
Your registration fee is ridiculous! Damn I'm in NY and it's not nearly that bad. My registration for or 2 years on a 2014 Dodge Durango Citadel is only $175. My insurance went up less than $30 a month. This vehicle brand new cost twice what my last vehicle cost brand new.
Not sure why people finance then sell - you should've just leased!
Leasing can cost you an arm, leg, and a kidney. If I leased my last vehicle, I would have had to pay $0.25 per mile on over 18,000 miles plus the dings and dents. The SUV wasn't super clean either....that's what happens when you haul dogs and firewood.
Much cheaper to own the vehicle. If I like it and there hasn't been any issues, I'll keep it after it's paid for. My last SUV had an electrical problem. Water leaked in it in several places every time it rained for months. Dealership claimed it was in my head. Yup, I normally take showers in my vehicle. It was finally fixed, but it had numerous issues after that. Things were starting to need repairs and it would have cost me several months of car payments on the vehicle I really wanted to we decided it was time to upgrade. Electrical issues suck!
So my dad went to work bargain hunting, and by the time all was said and done, he got me a 2014 model (he hit the dealership just as they were trying to make room for the incoming 2015's), and got it down from the sticker price of a little under $24,000 to a little over $12,000.
Can I borrow him next time I go car or house shopping? Damn. He has skills!
Yeah I don't get it either. So many new cars on road everyday out here in SD and I wonder how in the heck people are able to buy such expensive cars in such in an expensive city, with such high taxes and registration fee's when we have so many low paying retail, and tourist jobs locally that out number the higher wage jobs.
It's beyond me, I even see people with nice new luxury cars in section 8 housing, now that's fishy. The jobs out here don't pay nearly enough for one to afford a new car if you combined that with the high rents and home prices, you'd think people are jackin them from dealer lots since they can barely afford to live here!
It really takes 2 incomes to afford a $30,000 vehicle in cities where the cost of living and taxes are out of this world. Basically the upper middle class with good credit have it easy when it comes to being able to buy a new car.
I guess people like being in debt. I always buy used, and own my cars outright. Just think how expensive the insurance rate will be for 6 months on a new car?? It's too much, many peoples entire paychecks will go towards the monthly car payment and car insurance.
I think it's smarter for someone to purchase a semi new car that's lost most of it's value, and is a few years old. New cars are a waste of money, they're too expensive and overpriced, unless you're well off and have the means, because other than that, they're a burden to your finances and can leave you vulnerable to repossession if you lose your job or another financial crisis enters your life.
Anybody buying a new car has to be absolutely insane unless they have money to burn.
Find a car that is known to be reliable around 10 years old with low miles. For example when I was car hunting the best deal I came across was a 2003 Buick Century with 70K on it, $2600. Just wasn't my style or I would have bought it. Drive it around for about 5 years and then sell it, you'll get about half of what you paid for it. Keep in mind you're also going to save a lot on insurance because you don't need comprehensive.
Posts like this are hilarious.
Would you mind listing some of these 10 year old cars that are "known to be reliable" and aren't going to start having a lot of parts wearing out out until the +15 year mark?
A car is a machine, and machines by their very nature are going to wear out parts. The older a machine gets and the more it is used, the more likely and more often it is going to require said repairs. A 10-15 year old car under normal use is going to require a lot of repairs as parts wear out. You may *think* you are saving $$$ on that $2000 10 year old beater, but when you are paying for constant repairs and sitting on the side of the road with the hazards on, you aren't going to be saving much.
I always buy new. But then again, I've never been one to have any interest in paying for someone else's problems.
How are people buying cars these days? Just about every car is atleast $30k and suv and minivans over $40/$50k. Is everyone financing or saving large sums of money?
The price of a quality new car with some nice options are absolutely insane.
The way i do it is check how much i have in the bank.If theres just $5K then the car i'll be buying will be $5K or less, sometimes theres $20K in the bank.
Kinda depends if you want to go into debt or how much you want to go into debt buying something thats going to continually lose value as long as you own it.
Would you mind listing some of these 10 year old cars that are "known to be reliable" and aren't going to start having a lot of parts wearing out out until the +15 year mark?
A car is a machine, and machines by their very nature are going to wear out parts. The older a machine gets and the more it is used, the more likely and more often it is going to require said repairs. A 10-15 year old car under normal use is going to require a lot of repairs as parts wear out. You may *think* you are saving $$$ on that $2000 10 year old beater, but when you are paying for constant repairs and sitting on the side of the road with the hazards on, you aren't going to be saving much.
I always buy new. But then again, I've never been one to have any interest in paying for someone else's problems.
Good deals can be had if you are patient and know whats a good deal and whats not.
We just sold our 05 Toyota Echo with 250 trouble free K on it for $1500,while it was running well and needed nothing i thought at 250K it was time to get something with a lot less miles and our daughter just got her drivers license and wanted something with an automatic transmission., we bought another Echo,an 03 model in mint condition with a mere 60K for $4000.
While a nice brand new $40K vehicle would be nice its also nice to have no car payments every month.
While a nice brand new $40K vehicle would be nice its also nice to have no car payments every month.
Whether you're saving up money every month to buy a car later, or putting the same money per month into a car payment to buy a car now, your budget doesn't care. I've done both, many times. I've decided that I like having the cash in savings and not tie up the savings into a car. Debt is not a bad thing if you are capable of managing it effectively. Which is the key, have a budget and stick to it.
As for buying by monthly payments instead of overall price, if you have a monthly budget the overall price does determine how much you're going to spend per month, so you still shop by overall price. For example, if my monthly budget is telling me I can spend $300/month on a car, I'll be looking at cars in the $15-18k range for purchase and $20-30k for leasing if there are incentives on the lease.
My parents were looking for mid sized SUV and the prices for the vehicles in that age range really were weren't worth it over a new vehicle. They ended up with a new one and may just sell it 2 years.
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I paid $400 for one, and when that broke down, it was cheaper to have it towed away and pay $400 for another one like it, rather than fix it. I sold the second car to another solider when I transferred back to the states. I don't necessarily *count* these cars, in a sense, given that there was no intention of keeping them for very long. (It wouldn't have been worth shipping them to the United States.)
It was finally fixed, but it had numerous issues after that. Things were starting to need repairs and it would have cost me several months of car payments on the vehicle I really wanted to we decided it was time to upgrade. Electrical issues suck!
The jobs out here don't pay nearly enough for one to afford a new car if you combined that with the high rents and home prices, you'd think people are jackin them from dealer lots since they can barely afford to live here!
