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If you're like me and keep your cars 10+ years, depreciation isn't a factor. If you HAVE to have a new car every year or something like that, a lease makes sense.
I have two vehicles, both trucks. My 1994 is the contemporary equivalent of the 3500 crew cab listed above. It sold new in November of 1993 for $30K. So in twenty years prices have roughly doubled.
My friend ended up with a 2012 (three year old) Impala LT, near flawless, "certified warranty" with the balance of the original 100K factory warranty, 32K miles on odometer.......$13,400.00.
So lets say new sticker was $4,000 less in 2012.......$36,000.00 take 10% off that for sale price.......$32,400.00 = $19,000.00 depreciation over three years.......$6,334.00 per year.......$528.00 per month, actually more, because you know the dealer had to sell it for considerably more than was given as an allowance on the trade in. But let's just add $528.00 per month, to the original monthly payment that the original buyer was paying.......
So the monthly payment original buyer made (unknown, but let's assume, conservatively) $350.00 + 528.00=$878.00 a month to drive the car(again, probably more, because we don't know actual trade in allowance/purchase price paid to original owner). So it cost $10,500.00 per year, to drive a new Chevy Impala for three years. Purchase price on my first new vehicle (1977 Chevy Blazer, November 1976).......$5,400.00 IIRC.
Of course, personal experience, salary, size of current bank account is all relative to each individual....... But really. Buying brand new, is just paying the price of the warranty for the next buyer, as far as I can see. The rest is an ego trip to say it's brand new.......til you drive it over the curb, and peel the sticker off the window.
But certainly, to each their own.
BTW.......2015 Corvette, rag top, $81K! I've bought houses for less.
CN.......
Last edited by Compression; 04-03-2015 at 05:24 PM..
I consider myself very financially conservative but I like to buy new and keep my car for a VERY long time (10+ yrs, 150k miles at least). My current vehicle that I bought new in 2004 is almost 12 years old and I will change it when I hit 150k miles.
I think it's ok to buy new as long as you keep it for a decade at least. I like to buy new because I know how I have taken care of it from the beginning, and these days due to manufacturer rebates and aggressive pricing coupled with the fact that people are asking outrageous prices for used cars buying new is not that much more.
If no one bought new cars, how would anyone buy used cars?
The Buddha is said to have refused to eat any food that was prepared for him, accepting only leftovers uneaten by others. It was seen as a way to enlightenment. He did not want to feel that he had any influence or responsibility for the wheel of life.
This is why I bought a new car. 2 years old and I'm only saving 2K? No thanks. Give me new with the longer warranty and lower rate. It all depends on the vehicle.
Are you comparing to a 2-year-old car with low miles?
I have two vehicles, both trucks. My 1994 is the contemporary equivalent of the 3500 crew cab listed above. It sold new in November of 1993 for $30K. So in twenty years prices have roughly doubled.
My friend ended up with a 2012 (three year old) Impala LT, near flawless, "certified warranty" with the balance of the original 100K factory warranty, 32K miles on odometer.......$13,400.00.
So lets say new sticker was $4,000 less in 2012.......$36,000.00 take 10% off that for sale price.......$32,400.00 = $19,000.00 depreciation over three years.......$6,334.00 per year.......$528.00 per month, actually more, because you know the dealer had to sell it for considerably more than was given as an allowance on the trade in. But let's just add $528.00 per month, to the original monthly payment that the original buyer was paying.......
So the monthly payment original buyer made (unknown, but let's assume, conservatively) $350.00 + 528.00=$878.00 a month to drive the car(again, probably more, because we don't know actual trade in allowance/purchase price paid to original owner). So it cost $10,500.00 per year, to drive a new Chevy Impala for three years. Purchase price on my first new vehicle (1977 Chevy Blazer, November 1976).......$5,400.00 IIRC.
Of course, personal experience, salary, size of current bank account is all relative to each individual....... But really. Buying brand new, is just paying the price of the warranty for the next buyer, as far as I can see. The rest is an ego trip to say it's brand new.......til you drive it over the curb, and peel the sticker off the window.
But certainly, to each their own.
BTW.......2015 Corvette, rag top, $81K! I've bought houses for less.
CN.......
Your math is wrong. You have included both the payments and the depreciation, so you are in effect double-counting the cost of the car itself. It does not cost $10k/year not counting gas or insurance - that is a ridiculously inflated figure.
You should either count interest (if applicable) and depreciation, or count down payment and monthly payments, and then subtract any net proceeds* from selling the car. Both ways are valid, but don't double count!
*Which would be negative if the car is upside down at that time so you have to either bring cash to sell it, or roll neg equity into a new car.
Until I can buy a car direct from the factory and use authorized service centers for maintenance I don't plan on buying new and supporting the car dealer model where they can make thousands on a sale and even then the car depreciates a further few thousand when driven off the lot.
I appreciate you people who do buy new though. Thank you!
I see spending much above $15K on a car as foolish.. used craigslist stuff is my target.. I'm boring so a camry or accord will do. Mother told me a co-worker who makes $13/hour financed a $40K decked out SUV.. how silly can one get?
I have two vehicles, both trucks. My 1994 is the contemporary equivalent of the 3500 crew cab listed above. It sold new in November of 1993 for $30K. So in twenty years prices have roughly doubled.
My friend ended up with a 2012 (three year old) Impala LT, near flawless, "certified warranty" with the balance of the original 100K factory warranty, 32K miles on odometer.......$13,400.00.
So lets say new sticker was $4,000 less in 2012.......$36,000.00 take 10% off that for sale price.......$32,400.00 = $19,000.00 depreciation over three years.......$6,334.00 per year.......$528.00 per month, actually more, because you know the dealer had to sell it for considerably more than was given as an allowance on the trade in. But let's just add $528.00 per month, to the original monthly payment that the original buyer was paying.......
So the monthly payment original buyer made (unknown, but let's assume, conservatively) $350.00 + 528.00=$878.00 a month to drive the car(again, probably more, because we don't know actual trade in allowance/purchase price paid to original owner). So it cost $10,500.00 per year, to drive a new Chevy Impala for three years. Purchase price on my first new vehicle (1977 Chevy Blazer, November 1976).......$5,400.00 IIRC.
Of course, personal experience, salary, size of current bank account is all relative to each individual....... But really. Buying brand new, is just paying the price of the warranty for the next buyer, as far as I can see. The rest is an ego trip to say it's brand new.......til you drive it over the curb, and peel the sticker off the window.
But certainly, to each their own.
BTW.......2015 Corvette, rag top, $81K! I've bought houses for less.
CN.......
First that's an amazing price on a 2012 impala, truly amazing.
Second the deperication is the cost of the car, you can't add in a payment to come up with 10,500 a year to own. That would come out to 31,500, or just about the total cost of the car.
Ncole1 beat me to it, but that post wasn't up when I started.
People keep saying buy used...i'm willing to buy used ONLY if I get a HUGE discount over the new price. By huge I mean at least 25% off regardless of how "new" it is. Say it is a 2 year old car I am not paying 5% under the price of a new car, I am paying 25-30% off for a car in GREAT condition with ALL service records then it is a good deal to me otherwise why the heck would I take the risk of buying someone else's problem? Who knows how they treated their car?
+1.......... Used cars are not always cheaper than new!
Case in point, I bought a brand new stripper Chevy pickup last year for $18,300 (brand new left over).
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