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Why the fixation on a new car? If I were in your situation, I'd sell the paid-off Audi for 20k, and buy a Honda or Toyota that would be reliable as hell and hopefully get 30+mph...and I would think you could get a 2-3 year old with comparable or even fewer miles on it, and with preventative maintenance there's no reason you can't drive that for 8-10 years, putting that car payment aside the whole time...with your math you've got 80k saved up in 8 years plus the savings on gas. Not quite as stylish, though.
Mileage will have a negligible effect on value on a car that's already five years old. It's gone from ~26k to 13k in five years. With low mileage it might go from 13k to 8k in the next five. With high mileage it might go from 13k to 5k in the next five years. Not that big a difference. You could get a used Civic and save a fair amount between operating expenses and depreciation. Of course, I look at thing a little differently. I'm damn well going to want to spend three hours a day in a car I like. The A3 is perfect for that. Maybe you're spending an extra grand or two a year over a used Civic. Personally, I think that's worth it. I wouldn't rush out and buy a luxo barge, but I wouldn't subject myself to a Geo Metro either.
"...keeping it for another few years is not doing anything for me financially ..."
yes it does - it's called opportunity costs that you don't have to pay when you own your car (instead of it being "just" in your possession) - this money can be spent on something else or even better: invest it and gain interest instead of "investing"/dumping money into an depreciating asset
The cost of car ownership only decreases as a car gets older. The only exception being at the point that it requires many expensive repairs. An even more important point is that if you can't pay cash for a car then you're living beyond your means. A new Audi or any type of new car is a luxury item not a necessity.
Why the fixation on a new car? If I were in your situation, I'd sell the paid-off Audi for 20k, and buy a Honda or Toyota that would be reliable as hell and hopefully get 30+mph...and I would think you could get a 2-3 year old with comparable or even fewer miles on it, and with preventative maintenance there's no reason you can't drive that for 8-10 years, putting that car payment aside the whole time...with your math you've got 80k saved up in 8 years plus the savings on gas. Not quite as stylish, though.
I recently replaced both of my foriegn cars with UAW made Fords. Both of the old cars were around 60K, needed tires, brakes and 60k maintenance.
Paying cash I spent $35K and my two cars for the new ones. If I had kept them I would have hhad to sink thousands into cars that would be worth much less in a year or two.
i say if you can afford it get a new one. not everything is about doing things as cheaply as possible. if you can do it treat yorself if you like new cars.
theres not alot we spend big bucks on as we dont travel much or like jewelry but we enjoy new cars.
i buy one every 3-4 years. there is the reliability factor too . cars today are back to finite lives again remaining trouble free for about 4-5 years overall.
jd powers called it almost 2 decades ago when those maximas were going 150k with no parts needed. they said manufacturers were going to go back to building in a certain amount of years of reliability and then become to costly to own .manufacturers were putting themselves out of business with this new extended reliability they were building in.
today i find by the 5th year or 60k miles reliabilty has become an issue again.
not only that but repair costs can be amazing. try replacing a factory nav or transmission coupled with new tires and the major services at that point and there is the depreciation on your brand new car and you didnt even get the car and you just spent it..
i thought about buying out my nissan xterra at 45k.. i figured in the cost of tires,the 60k service, brakes ,the optional warranty the timing belt in another couple of thousand miles and it was within spitting distance of a new vehicle. throw in the reliability factor after 60k and forget it, there was no way i was buying this 4 year old vehicle .
but thats stil not the main reason for getting a new car. the fact you can afford one and enjoy one is reason enough in my book.
If it was me, I would drive it to the ground. the car is paid off. also, with this economy, loosing a job can be a problem. I knew some people who were cocky, thinking that they will never loose their job because their "field" is in demand, and they lost their jobs.
I will much rather have no payments at all and not have a extra thing to worry, with or without a job.
nothing to worry about? i wouldnt call a failed transmission or expensive engine repair nothing.
while you may not have car payments you certainly may have expenses that can easily cost thousands. the other problem is with an old car the repairs can easily exceed the cars value. now you need money for another car.
hardly a worry free ordeal owning an old car. it may not cost as much as a new car but cost it will.
i say if you can afford it get a new one. not everything is about doing things as cheaply as possible. if you can do it treat yorself if you like new cars.
theres not alot we spend big bucks on as we dont travel much or like jewelry but we enjoy new cars.
i buy one every 3-4 years. there is the reliability factor too . cars today are back to finite lives again remaining trouble free for about 4-5 years overall.
jd powers called it almost 2 decades ago when those maximas were going 150k with no parts needed. they said manufacturers were going to go back to building in a certain amount of years of reliability and then become to costly to own .manufacturers were putting themselves out of business with this new extended reliability they were building in.
today i find by the 5th year or 60k miles reliabilty has become an issue again.
not only that but repair costs can be amazing. try replacing a factory nav or transmission coupled with new tires and the major services at that point and there is the depreciation on your brand new car and you didnt even get the car and you just spent it..
i thought about buying out my nissan xterra at 45k.. i figured in the cost of tires,the 60k service, brakes ,the optional warranty the timing belt in another couple of thousand miles and it was within spitting distance of a new vehicle. throw in the reliability factor after 60k and forget it, there was no way i was buying this 4 year old vehicle .
but thats stil not the main reason for getting a new car. the fact you can afford one and enjoy one is reason enough in my book.
I disagree with this. Depends on the car and whether it was well maintained or not to determine longevity. A Corvette should last longer than a Focus. Some Toyota 4cyl drivetrains will last over 200,000miles easily. I give both examples because I have experienced them myself.
I understand from acquaintainces who are auto. techs. that the high end european cars tend to have poor longevity if there as been neglected proactive maintenance.
If you are that concerned about the financial minutia and your your commute is going to increase to 30,000 miles a year i'd be looking at a very frugal car when it comes to MPG something that can get in the 40mpg range, Audi at this point could be kept as a second car if you like it that much but as a daily driver for that many miles a day it makes for a crappy and unreliable older car.As for the Audi's value? i think you are being very optimistic thinking you'll get $20K for it,$15K might be a more realistic value..
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