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That age old theory only occurs if you keep your car for 3-5 years. After that, the depreciation levels out, and also, keep in mind, while that depreciation is supposedly going on, you're getting the use of the car.....
That age old theory only occurs if you keep your car for 3-5 years. After that, the depreciation levels out, and also, keep in mind, while that depreciation is supposedly going on, you're getting the use of the car.....
There's no "supposedly" about it. It's there and it is substantial!
2. The first one was a 200 Chevy Malibu. The second one was a 2022 Kia Soul, which I bought last December because the used vehicles were so expensive. Three days ago I had a car accident in it An unlicensed driver failed to yield and made a left turn in front of me at a stoplight. I had the green and was driving about 50. (the speed limit.) The car hadn't even had its first oil change.
There's no "supposedly" about it. It's there and it is substantial!
I paid cash for $30k car in 2008. Still driving it nearing 120,000 miles. So, the longer I drive it the longer I get to spread the depreciation out. I spend, on average, $1,400 in repairs. The depreciation is also about $1,400 per year (so far as it's still worth around $10,000). So, the way I figure it's less than or around $3,000 per year and I have not made any car payments since 2002 (I always paid my cars off within 18 months at most and they make you pay them off when you're buying houses).
$3,000 per year is a lot less than car payments at this juncture. That same car is $45,000 -- probably $60,000 to actually be able to buy one right now
Or, I guess I could have bought a $6,000 car a few times during that time period. But, I know the exact condition and maintenance of my car.
Now, I have a $10,000 car that I can drive another 7-10 years. It's been maintained by the book. Why would I give up such a good used car?
I am ready to hear your numbers and how you have saved an amazing amount of money and still had a safe reliable vehicle. Oh, I see, you bought a 4 year old car and traded every 4 years? So, you lost $10k per car to depreciation 3 times in that same time span. Or, maybe you have been leasing cars?
7
But the last new car we bought was around 2000. We used them for business and drove a bunch of miles.
Still got the 90 GMC I bought new in 1990.
Own the 08 CR-V we bought in 2010, when I retired.
I'm 77. If I ever drive a new car again it will be because I leased it and prepaid the lease. At this stage I have more money than time and that's what I would do. Still, no plans to trade anything in.
7
But the last new car we bought was around 2000. We used them for business and drove a bunch of miles.
Still got the 90 GMC I bought new in 1990.
Own the 08 CR-V we bought in 2010, when I retired.
I'm 77. If I ever drive a new car again it will be because I leased it and prepaid the lease. At this stage I have more money than time and that's what I would do. Still, no plans to trade anything in.
That's how I see it too. At some point it may make more sense to just lease. However, I'm trying to time it by driving my 14 year old car a few more years and then buy a new car around 67.
There's no "supposedly" about it. It's there and it is substantial!
Actually in todays new car market there is no depreciation at all, in fact it is the exact opposite.
I purchased my first new vehicle ever this year a 2022 Ford Maverick Hybrid, MSRP $23,659 out the door.
I could easily resell it right now for $30,000, but would then have to wait a year or more to get another one.
4 out of 7 since my first car in 1975 have been new. The first one (Mercury Comet) and the last two (both Mazda3) were used. In between were a new Mercury Lynx (ughhhh), two VW Golfs, and a Honda Civic.
I'll probably never buy another new car.
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An unlicensed driver failed to yield and made a left turn in front of me at a stoplight. I had the green and was driving about 50. (the speed limit.) The car hadn't even had its first oil change.
