Should I buy a new car or not? (house, cheap, cost)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No one can tell you what you should or should not do.
You don't have to purchase a new 'new' car, you could choose to purchase one that is about 3 or 4 years old and it will have all the safety features and have power and would likely cost you $15K - $17K or thereabouts. If I wanted to purchase a car just to have something fun but knew I would not use it that much, I would look for something preowned.
My thoughts exactly. Never bought new car in my life. We came very close to buying a new car 2 years ago, but ended up buying a 3 year old, 15K car off the used lot. It felt exactly the same as a new one when I drove it, and had all the features I needed, but was 8K less. With only 15K miles on it, I felt like this was essentially a 1-2 year old car. And it felt GREAT after driving a then-14-year-old, 150K Chevy Prizm. I enjoy it a great deal.
Well I do buy my cars brand new but I only have 1 car at a time and they are not my 'toys'. I keep my a car a long time, last one was 13 before it was time to replace. My current car is a 6 yr old Prius and I hope it will last at least 7 more years. It should since I have low miles on it. To me it's worth it to purchase new because I buy practical mid-priced vehicles that don't depreciate quickly, I pay cash, I keep the vehicle well maintained, and I keep my cars longer than a decade. The trick is to continue saving $ for the next car so when it's time to eventually purchase, that purchase can be in cash too.
Unfortunately the used cars in my area are priced so high it is ridiculous. For instance, this brand new car has a $1000 factory rebate on it and the final cost is 23700. They are selling 2014s with 20k miles for 22k and not budging on the price so it makes no sense to buy used.
I currently drive a almost 13 year old truck, I bought it for cash brand new and it has served me well, has 140000 miles on it and has zero issues with it. The problem is that it is not fun to drive and does not have the creature comforts of the newer vehicles nor the safety. It is very down on power (0-60 in like 10+ seconds) because its a base model. I was thinking about getting a new Mazda3 hatchback sGT (184hp) for around a tad bit more than 26 out the door, fully loaded with everything (they are running good discounts on the 2016s right now).
The thing is that I don't drive very much, my commute is all of 5 miles each way and on the weekends I perhaps drive a bit here and there. I take a few long distance trips in a year as well. My justification for buying a new vehicle would be that my commute to work would be a bit more fun.
I also would be keeping this car for at least 10 years, I don't change vehicles often. I would also keep my existing truck because I need that to haul my motorcycle.
I would be buying the new car all cash and financially I can very comfortably afford it. Sometimes I feel it would be nice to own a nice car but at other times I ask whether I will use it enough to justify spending 26k on, financially I know I could just rent a nice car for long distance trips and it will come out cheaper but should I be so cheap as to think about it that way? I mean most people just buy themselves something nice if they can afford it right?
So the question is, should I or should I NOT? I know some of these decisions tend not to be purely financial I seem to be conflicted about this - on one hand I think yikes 26k, that is a boatload of money to put into something I may not use very much, on the other hand I think I have a good job, am successful I think it's fine if I drive something at least decent...and it's still an entry level economy luxury car, it's not like i'm spending 50k on a BMW or something.
As others have said, no one can tell you what to do. Clearly, you can afford it. The biggest thing to me is that you seem not to be settled with the idea, which suggests maybe you should hold off. Just because a vehicle is 13 years old does t mean you HAVE to get rid of it - especially since there is nothing wrong with it. I have three vehicles. The NEWEST is 13 years old. The oldest is 18 years old.
You're paying cash for the car. $26K is a modest car in 2016. You're the type who keeps your car forever so your lifetime ownership cost is going to be very low.
A couple of things:
Obey the 11th Commandment: Thou Shalt Not Pay Retail. You get the best deals on leftover cars as the model year changes. You never get the best deal on really popular cars. Since you seem to hold cars forever, there won't be any difference between a 2016 and a 2017 a decade from now.
You haven't talked at all about how that $26K relates to the rest of your finances. If $26K is your life's savings and you make $7.50/hour, it's a mistake. I'm guessing that's not the case but it needs to be said.
I agree with the overall sentiment that late model used cars aren't a very good deal.
Unfortunately the used cars in my area are priced so high it is ridiculous. For instance, this brand new car has a $1000 factory rebate on it and the final cost is 23700. They are selling 2014s with 20k miles for 22k and not budging on the price so it makes no sense to buy used.
That's how I feel. I bought a new car because of rebates, warranty and low interest finance. The user cars seem to be way overpriced. Many have high mileage.
My financial snapshot - income is $142k/yr, I have zero debt, single, no kids or outstanding obligations, my liquid net worth is around $400k, my age is 42, my monthly expenses are around $2300 including everything. However in addition I spend about $5k on travel in a year.
To each their own. Personally I've decided I wont purchase a new or luxury vehicle until I've achieved passive income that will cover it's expense. So till that day comes, its used hyundais for the wife and I. We don't mind at all, big picture.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I seem to be conflicted about this - on one hand I think yikes 26k, that is a boatload of money to put into something I may not use very much, on the other hand I think I have a good job, am successful I think it's fine if I drive something at least decent...and it's still an entry level economy luxury car, it's not like i'm spending 50k on a BMW or something.
