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I will chime in,vehicles are a waste of money and for a lot of people a status symbol.
As for vehicles,1986 Toyota used ,drove it 286,000 was still in excellent condition.
I replaced it with 99 Toyota,bought new in 2000,now has 195,000 and will drive it till it needs repair.
But this is an automotive enthusiast board. Of course people on here want new or newer cars.
You drive a car from point a to point b
Many people on this board want to enjoy that drive from point a to point b
You can get Caddies ridiculously cheap in the ten year range. I almost bought one but after researching it realized it was probably a bad idea. It was a '03 and the engine had a known intake or head gasket issue. After reading up on the cost of replacing the suspension, no thanks....
Next vehicle won't be used, going new. Regardless of brand.
How are people buying cars these days? Just about every car is atleast $30k and suv and minivans over $40/$50k. Is everyone financing or saving large sums of money?
The price of a quality new car with some nice options are absolutely insane.
It's all relative with the money values.
My first new car was 4200 dollars, a 68 cutlass, but an average salary was 8ooo dollars back then.
Now at 40,000, for a car, people are making 100,oo a year.
But the average income in the US is currently less than $50K…
For that $40K car.
New cars almost never make financial sense. If you have that much disposable income to blow, go for it. Be happy. Everyone likes new toys.
But the vast majority of us are trying to either squeeze as much out of our limited income as possible, or have the money but don't see the logic in typing up that much in a depreciable asset. (There's a reason Warren Buffet drives used cars)
For either of these scenarios, a 3-5 year old car in the $8-12K range will be a much smarter purchase. And, they're still new enough to have all the whistles and bells, be solid and reliable and need very little maintenance. Even if you finance it, do the math and compare the higher interest on, say, $9K to a phenomenal 0% on $20K.
You're still miles ahead with used. And, 3 years down the road, you'll have your used car paid off. It'll actually be an asset (though depreciating) at that point, rather than a debt that's ALSO depreciating.
Last edited by itsMeFred; 12-04-2014 at 09:25 AM..
My first new car was 4200 dollars, a 68 cutlass, but an average salary was 8ooo dollars back then.
Now at 40,000, for a car, people are making 100,oo a year.
Maybe YOU are making 100K per year.
Even when both my wife and I were working, we never came close; she, RN, me, licensed A&P mechanic.
Now, with me retired, drawing two checks, and her working, we still don't come close.
100K these days is the dream that 20K was in the '60s!
If you put down $10k and finance $20k over 4 years at 2.9% then your payments will be about $450/mo. After 4 years your car is paid off and you can drive that car for another 6 years while saving $450/mo to put as a down payment on your next car. $450/mo over 6 years is about $32k.
You are spending $3160/year for 10 years to drive a new car
I just bought a Ford Focus with 95,000 miles for $4000
If I make it last more than a year, I'll be making money compared to you.
You are spending $3160/year for 10 years to drive a new car
I just bought a Ford Focus with 95,000 miles for $4000
If I make it last more than a year, I'll be making money compared to you.
Can't blame people for wanting new.
Some people just don't think of a car as just a transportation device.
I lease new every 36 months because I and my wife depend on reliable transportation and need a daily driver that is not going to give us problems and if so it is covered under warranty.
We have excellent credit therefore we are able to get really low rates on our leases. Also, we dont go high end. Currently we are leasing a 2012 Nissan Rogue and a 2014 Honda Civic. Combined our payments are $518/month for both our vehicles.
I see vehicles as something that provides me a service and treat it as such. Sort of like a cell phone bill. People complain about car payments but dont seem to mind paying cell phone bills in the hundreds (depending on your plan) every month.
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