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Personally I think there is much more to it than your blanket statement. You have to factor in type of vehicle , miles you drive a year, do you maintain it or pay someone else...etc.
Well, suffice it to say that depreciation does matter.
Well, suffice it to say that depreciation does matter.
If it matters to you... for some it doesn't. Pure and simple.
Just like I can't wrap my head around the person that drives a toaster with wheels, purely because it gets them from A to B the least costly way possible. I'm sure those people just can't understand someone that is just throwing money away buy purchasing something new.
For the record, my last new vehicle was in '01. In the next year or two I will be buying something, mostly likely new. If I just happen to find what I want pre-owned I won't turn it down though.
But is it worth the extra $2000? Especially when you already have it for free on your smartphone?
honestly I would avoid all of that stuff. There is going to be a whole lot of cars on the market in ten years with a lot of broken electronic gadgets that will not easily or cheaply be fixed.
Again, I purchased a 2002 Regal GS fully loaded for $4K with 65K miles on it, it cost $27K in 2002. That's a substantial loss.
It's for sale.....
And you did very well on that one and if I was looking for a beater commuter car I'd be all over it...but I'm not. I've already got one.
One year of driving that car in MI and it will need a few front end components, tires (if it hasn't already) , brakes, belt, a hose or two, thermostat, shocks and struts... so what $2k worth of work if you are paying someone ? That 60k to 90k range is where many wear items need to be replaced. Now you are at $6k on a 12 year old car which will need more and more things as the time goes by.
Brand new tires, nearly brand new brakes... I've been buying cars like this for a while, 25 years. I expect to put about $1 to $2K into it over the next five years. Definitely going to need struts at some point and that should be my biggest expense. $300 for all four and a case of beer my Brother and I will drink after we put them on.
I'll probably get about $2K or $3k for it when I sell and whoever buys is going to get a deal because I take care of my equipment. At most it's going to cost me $4k to have this car but will probably be closer to $2K, that's a significant difference than the $23K it cost the last guy.
Also keep in mind I'm saving on insurance as well. I don't need comp, if I smash it that's my tough luck but I'm not out 30 grand either.
Mine was more like two-thirds that amount. I took the 0% for 60 months. Always a big fan of using someone else's money for free while my investments earn returns.
That's the way to go.
Back in '02 I financed the entire amount on an F250 4X4 at 0% for 36 months (the max they would do).
Back then my money market account was paying approx 3% or so IIRC.
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.
My last car was used - it was the first used car I have ever bought. I have always bought new, and kept the car until it died, so it was pretty affordable for me. But with the prices of cars now, new is probably out of the question for me. I refuse to finance a car for more than 4 years, and I also refuse to have a car payment of more than $300, so cash down and older cars is the way I will go.
Where are people getting this idea that "used" is somehow synonmous with "beater" or "basic??"
"Used" can be a *really* nice car, with all the toys, and even the new-car smell (they bottle that, ya know )
The only difference is a few thousand miles, and that someone else has eaten the initial depreciation...
Where are people getting this idea that "used" is somehow synonmous with "beater" or "basic??"
"Used" can be a *really* nice car, with all the toys, and even the new-car smell (they bottle that, ya know )
The only difference is a few thousand miles, and that someone else has eaten the initial depreciation...
Where are people getting the idea that depreciation even matters if you buy a new car and keep it for 10 or 12 years?
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