I'm looking for is a list of the pro's and cons of a new car purchase. (buy, engine)

[usayit]

Originally Posted by CGab

However, depreciation doesn't really matter if you plan on keeping that new car until you run it into the ground or at least close! That's when you really come up on top. People who buy cars (not lease) and trade them in constantly are the ones that lose.

Depends.... Depreciation is built into the cost of vehicle ownership. If you finance that depreciation you are paying much more.

Consider buying used (to avoid much of the depreciation) AND driving it to the ground... you'll still be out ahead.

When it comes to buying new vehicle, the opportunity costs of that depreciation you are absorbing is noticeable AND unavoidable..... In my view, it is a luxury and a personal decision. One friend of mine would say "I pay for the privilege of being the first one to fart in that driver's seat."

[ged_782]

Originally Posted by CGab

However, depreciation doesn't really matter if you plan on keeping that new car until you run it into the ground or at least close! That's when you really come up on top. People who buy cars (not lease) and trade them in constantly are the ones that lose.

I think that is important to keep in mind. Trading-in something a couple of years old or less, you're going to take a hit. However, the person who buys that car off the lot may end up paying almost as much as the original purchaser. You really need to consider selling the vehicle yourself as a private-party sale in that case, to minimize your loss. But I suspect most people in that situation are probably not in a financial situation where they can easily do that, as the vehicle more than likely is still being financed.


I'm sure most people who intend to drive new vehicles and keep them short term, are going to lease, rather than buy. I can't remember the last time anybody I know bought (not leased) a brand-new vehicle, then traded it within a couple of years.

[FreedomPenguin]

Kind of off topic but not. I have a 12 Scion tC, (corolla basically) with 150k miles. Good to hear your car is totally reliable at those high mileages. I am convinced im keeping this for at least 15-20 years. Does what I need, happily and reliably.

Wouldn't it just be more efficient to fix the problems that come up? I saw you said you want safety. Are they unsafe?

[corolla5speed]

[quote=FreedomPenguin;53963751]Kind of off topic but not. I have a 12 Scion tC, (corolla basically) with 150k miles. Good to hear your car is totally reliable at those high mileages. I am convinced im keeping this for at least 15-20 years. Does what I need, happily and reliably.

Wouldn't it just be more efficient to fix the problems that come up? I saw you said you want safety. Are they unsafe?[/













Fixing the little things before they become big things is the key to reliability and safety with any car. Long term you win in the value category as well by not putting repairs off. Most manufactures do a pretty good job where safety is concerned in the manufacturing of cars these days and I have no issues with my car. Personally I drive like I have an egg between my feet and the pedals, if I break an egg then I have a lot to learn about safe driving. Thanks for your comment.

[Blondebaerde]

Originally Posted by corolla5speed

My car turned 16 today. I'm thinking about replacing it but the book value is low and it still runs well. I went thru this same scenario with it's predecessor and finally gave it away. The question is my current car is still in good shape both mechanically and physically so should I buy a new one? I guess I'm looking for is a list of the pro's and cons of a new car purchase.

Simplest explanation: last new car (truck) I bought was 2006, because I was pretty sure I'd keep it until Hell froze over. Eleven years on, it's just getting warmed up at 116K miles. That being a Tacoma with almost as much in mods as it cost me (okay, half as much ). I paid it off in three or four years and wouldn't part with it, which was basically the plan from square 1. Pickups are immensely useful for men.

Point being, if you're going keep it beyond maybe five years, and it's one of relatively few models with minimal depreciation (Tacomas, FJ Cruisers, various others foreign and domestic), you have the huge upside of:

- Latest gadgets and tech, just that much cooler every year
- Peace of mind, it's under full warranty
- Not driving a crapmobile, if you care what anyone else thinks (some don't)

Obvious downside is spending all that money up front, of course, and you'll be upside down at some point on the loan for most vehicles, should you need to get rid of it early. Wouldn't recommend that.

Otherwise, last car I bought (2016) was a CPO, because I wanted it. Sports car, though, which is different. Otherwise, I personally look at (about) 5 year old, after they've taken the bulk of depreciation. Problem there is lack of warranty, of course, which can bite you. Did not on my Porsche Turbo, but did on my BMW 540i. Go figure: latter brand is absolute ___t quality, former is recognized for the complete opposite and rightly so by every reputable measuring entity (Consumer Reports, JD Powers, Edmunds, etc.) Data trends don't lie.

Should I ever buy again, and I'm thinking pay off the Porsche and buy an electric version CPO, some years from now, I may consider leasing...not all leases are a scam, though some are. We'll see what the depreciation is on those; 911s don't depreciate terribly much or rather "level off" at a higher level than one might expect (try and find a used 911 w/full records for less than $35K). OP may wish to examine leases too.

[Arktikos]

Originally Posted by corolla5speed

It's a 2004 Corolla with 230,000 miles

Keep it indefinitely.

[eaton53]

Originally Posted by CGab

I'm an insurance agent and most new cars cost less to insure now than older cars because of all the new safety features new cars have.

He's only going to need liability insurance on his old car.
On a new one he'll need full coverage. I doubt that it's going to be cheaper.

[rummage]

Originally Posted by corolla5speed

My car turned 16 today. I'm thinking about replacing it but the book value is low and it still runs well. I went thru this same scenario with it's predecessor and finally gave it away. The question is my current car is still in good shape both mechanically and physically so should I buy a new one? I guess I'm looking for is a list of the pro's and cons of a new car purchase.

The cons for a new car:
Higher insurance costs.
Overtly careful where you park it out of fear of it being scratched.

The (hopefully) pros for a new car:
Better miles per gallon.
Improved safety features.
Improved comfort.
Modern decor.
Years before any expected major repairs needed.

How does your old car look? Does it have rust spots on it?

[DixieLand09]

I would drive your Corolla for another 60,000...you still have life in your car and Corolla's are known to last FOREVER...I would also buy another Corolla but under 2017...has anyone seen the front off a 2018? Hideous...transformer looking thing...I hope Corolla goes out of that look. I have a 2016...and actually perfer the look of the 2013

[Stonepa]

Originally Posted by HappyRider

How's this different than enjoying a new car NOW instead of putting that saving, which may or may not happen, toward the new car?

Because if you can't save up and pay cash for whatever you want, new or used, you can't afford it. Leveraging debt to get what you want when you want it is why so many, in fact a vast majority, of the US middle class will always stay poor and be broke at retirement (regardless of income, i.e. cash flow). It's called restraint. Now, I couldn't care less what others do with their money but when they ask for advice this is the advice they are going to get.