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Rich dad is another shady salesmen. It was a good "light" read. But following most of his made up life and taking his advice put tons of people in trouble in 2008. Leveraging and useing OPM's money can be very costly. I especially liked how he recalled buying a house in Portland (for a rental) and he lived across the country. That may work for an experienced landlord (I have 7 single family rentals, a farm, other undeveloped land) but, certainly not for the rookies following his advice. Did you buy his game too?
I think cashflow quadrant most. It gave a good insight between rich man, poor man mentality and the difference in how they view money. That put a lot together for me. I didn't buy real estate, especially when I figured out that people were able to get mortgages because of fancy loans... a crash waiting to happen. People were buying more than they could afford. No, I did not buy his game.
I have no plan. I don't get the budget thing. I spend what I have to. I have an intuitive sense of my spending and I know if something is needed, reasonably wanted or frivolous. I keep the frivolous to a minimum.
Suze also recommends against buying new since the car value drops 20-30% almost instantly, instead buy new-used car that is two years old and has low miles.
The problem is that the used card from reliable brands like Toyota, Honda and Subraru drop very little even after a couple of years. You get only a 15-20 % drop for the car that has racked up 20-24K miles. And who knows how those initial miles were driven (jack rabbit, hard acceleration and braking, too much stop and go miles) even if the scheduled maintenance was done.
After having learned that from one car I have always bought new - my Honda car and minivan and Toyota Camry Hybrid. By using it gently and maintaining it well two of them are riding well with > 100K miles and my 2000 Accord can still go 500 miles in a single day's journey without a hiccup.
I am a fan of buying new Honda / Toyota cars in the $15-25K rage and use it for 10+ years till it dies ( which it almost does not).
Yeah buying quality used cars...you have to go back 3-4 years. Buying 1-2 years out is so close to new that you might as well buy new. Unless the 1 years old car has a ****load of miles on it.
You can save money on 1-2 year old Chevys, Fords and Chryslers for sure.
The problem is that the used card from reliable brands like Toyota, Honda and Subraru drop very little even after a couple of years. You get only a 15-20 % drop for the car that has racked up 20-24K miles. And who knows how those initial miles were driven (jack rabbit, hard acceleration and braking, too much stop and go miles) even if the scheduled maintenance was done.
After having learned that from one car I have always bought new - my Honda car and minivan and Toyota Camry Hybrid. By using it gently and maintaining it well two of them are riding well with > 100K miles and my 2000 Accord can still go 500 miles in a single day's journey without a hiccup.
I am a fan of buying new Honda / Toyota cars in the $15-25K rage and use it for 10+ years till it dies ( which it almost does not).
This...the old adage does not apply anymore..maybe on higher end American or German....but on Toyota, Honda, subaru etc this doesnt hold up- three year old models with 30K miles are not even 5K less, and at a higher rate. I'd rather pay the extra $$ upfront esp since I'll know the service history.
Yeah buying quality used cars...you have to go back 3-4 years. Buying 1-2 years out is so close to new that you might as well buy new. Unless the 1 years old car has a ****load of miles on it.
You can save money on 1-2 year old Chevys, Fords and Chryslers for sure.
But when you buy the 3-4 year old cars the maintenance issues wipe out the savings. A car for the first 4 years needs almost no maintenance except oil changes and an air filter change.
Sorry, after having seen an issue after issue with a couple of friend's American car purchases I now buy only Japanese cars. And especially if it was made in Japan than a factory in Kentucky ( like my Accord and Camry Hybrid).
The problem is that the used card from reliable brands like Toyota, Honda and Subraru drop very little even after a couple of years. You get only a 15-20 % drop for the car that has racked up 20-24K miles. And who knows how those initial miles were driven (jack rabbit, hard acceleration and braking, too much stop and go miles) even if the scheduled maintenance was done.
After having learned that from one car I have always bought new - my Honda car and minivan and Toyota Camry Hybrid. By using it gently and maintaining it well two of them are riding well with > 100K miles and my 2000 Accord can still go 500 miles in a single day's journey without a hiccup.
I am a fan of buying new Honda / Toyota cars in the $15-25K rage and use it for 10+ years till it dies ( which it almost does not).
My feeling exactly. I paid $18,000 out the door for my (new at the time) 2000 Accord. It has about 170K miles on it and still runs great and gets great gas mileage.
I owned several used cars prior to that, with mixed outcomes. My best used car was the one one I bought when I turned 16, for $1200, a monster Ford sedan with a V8 engine. I used it all through high school and undergrad, and then my brother drove it for years after that. My worst car, by a long long shot, not even remotely close to any of the half dozen cars I've owned, was a used Mercedes. It was admittedly an old car, 18 years old when I bought it. But my current Honda is nearly that old and is very reliable.
But when you buy the 3-4 year old cars the maintenance issues wipe out the savings. A car for the first 4 years needs almost no maintenance except oil changes and a air filter change.
Sorry, after having seen an issue after issue with a couple of friend's American car purchases I now buy only Japanese cars. And especially if it was made in Japan than a factory in Kentucky ( like my Accord and Camry Hybrid).
A 2010-2012 Honda, Toyota, Nissan, or Subaru with ~50-60k should not need much maintenance.
Maybe Tires, brakes and filters...but that isn't a lot of money on these types of cars.
Even if you had $1000 in maintenance cost on the 2012 model...still way ahead.
You have quoted MSRP for the 2016 model. Who pays that any more?. I am more likely to not pay more than $25K for the 2016 car when the 2017 ones are coming out
The problem is that you are comparing 2 different time frames and extrapolating it for the $ 1000 spent. At 4 years the new car with 50K miles will need only $1000 or even less but the 8 year old car will have more problems ( especially if it had a bad driving history) and now needs $5000 in parts and maintenance. That will almost wipe out the initial savings. You can do that for every 5 years with the 4 year difference.
And then the 4 year earlier model will have less safety features.
My feeling exactly. I paid $18,000 out the door for my (new at the time) 2000 Accord. It has about 170K miles on it and still runs great and gets great gas mileage.
I also paid $18K for the 2000 Accord SE model.
I looked for models with VIN number starting with J (Japan) rather than 1 (USA). The ones with the VIN starting with J were available only in red color. And so red it was for me.
Mine has only 140K miles, since we now have 2 other vehicles to use.
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