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Yeah imagine that. A very limited production mid engine supercar becoming a collectors item and gaining value.
Yep and a Ford too...
I can you tales of those buying cars as collectables... one was a friend of Dads that bought a new 1978? Indy Pace car Corvette… he kept it for years and when he passed it was sold for a lot less than was paid...
The estate had it appraised because the wife thought it to be worth a fortune...
Buying a new car was the best financial decision I made in my life. I used to buy used cars and spend a lot of money on repairs. I bought a new car in 2006, have taken care of it and it still runs great with no mechanical issues. I love driving a car I own with no car payments. It might only be worth $1500 or so but in my life it's priceless.
I can you tales of those buying cars as collectables... one was a friend of Dads that bought a new 1978? Indy Pace car Corvette… he kept it for years and when he passed it was sold for a lot less than was paid...
The estate had it appraised because the wife thought it to be worth a fortune...
Most cars simply do not become worth much. Sure they might have some rarity or collectible value but most cars simply never break that it’s just a car barrier.
Having a old car doesn’t mean it’s gonna be worth 80,000 dollars.
My buddy kept a 1990 454SS in PRISTINE condition. I’m talking showroom condition. Never drove it, immaculate. Best offer he ever had was 26,000 bucks.
I had a 1989 GMC that I had rip roaring fun with it. Drove the snot out of it. Still have it. Best 13,000 bucks I ever spent. I can probably sink 10k into it and get another 30 years of fun out of it.
I drive my cars. Sure they may be older, but they run great are reliable and cheaper than buying new. When I sell them they are in great condition, well maintained, and I don’t worry about if they don’t sell. I’ll drive them till they sell
Buying a new car was the best financial decision I made in my life. I used to buy used cars and spend a lot of money on repairs. I bought a new car in 2006, have taken care of it and it still runs great with no mechanical issues. I love driving a car I own with no car payments. It might only be worth $1500 or so but in my life it's priceless.
I think buying a new car is a great idea — just not trying to keep a newer car. I bought a new car in 2009 and 10 years later I’ve spent $300 or so on “repairs”..and maybe $150 on stuff like a new air filter and spark plugs out of guilt. Maybe a bottle of wiper fluid. For the last 3-4 months I’ve considered which new car I’d be most likely to buy tomorrow....as long as she holds off on a major, major, repair I can put that decision off until tomorrow...then I may park her and decide if I want to make the repair to keep mileage down on my new car for a while.
Lets say you have 20 years left to retirement. You buy a new $40K car every six years and that car depreciates to $0 every single time you trade it. That's only 3 more cars till retirement. You're only saving at most $120K and that's assuming you got your "used car" for free and it lasted 20 more years with no repairs of any kind (highly unlikely). The extra $120K isn't going to add much to your wealth. That's only roughly 2 years worth of the average US salary. I fail to see how this is the key to financial independence. At best you can retire 2 years early and at that point you'll probably just work till you can get Medicare anyway. Warren Buffet didn't get wealthy because he drove an old truck and has a flip phone.
Let’s tweak your scenario a little.
Let’s say you start at 25 years old buying those new cars.
That’s:
$40k spent at 25 years old.
$40k spent at 31 years old. At this point your first $40k car is paid off. You can also drop full coverage insurance.
$40k spent at 37 years old + 6 years of money spent on payments + 6 more years of money spent on full coverage + higher property tax + loss of any return on all that money you could’ve otherwise had.
At this point the 37 year old driving the Honda Accord they bought at 25 has a good chunk of change saved. This money is saved at a time in life where people are little more likely to be spending money (children/home/life, etc) and paying higher interest on debt (student loans, credit cards, etc).
If just an extra $100k could be set aside by say 40 years old - it could mean a lot...to a lot of people. Now the average 40 year old with $50k saved up has $150k....$150k that will be added to as usual and compounded for 25 years. Basically life changing considering the average amount saved by 65.
Now imagine if (compared to new every 5 or 6 years) this person were “crazy” and drove a car the proved to be reliable for 20 years somewhere between 20-55 years old!! Difficult but really a small sacrifice in the grand scheme of life. Granted, it’s not a sacrifice that everyone needs to make. If you’re settled in on a good job by 35 with low debt and a little savings...by all means make a standard retirement contribution and make room in your budget for a new car every 6 years.
Let’s say you start at 25 years old buying those new cars.
That’s:
$40k spent at 25 years old.
$40k spent at 31 years old. At this point your first $40k car is paid off. You can also drop full coverage insurance.
$40k spent at 37 years old + 6 years of money spent on payments + 6 more years of money spent on full coverage + higher property tax + loss of any return on all that money you could’ve otherwise had.
At this point the 37 year old driving the Honda Accord they bought at 25 has a good chunk of change saved. This money is saved at a time in life where people are little more likely to be spending money (children/home/life, etc) and paying higher interest on debt (student loans, credit cards, etc).
If just an extra $100k could be set aside by say 40 years old - it could mean a lot...to a lot of people. Now the average 40 year old with $50k saved up has $150k....$150k that will be added to as usual and compounded for 25 years. Basically life changing considering the average amount saved by 65.
Now imagine if (compared to new every 5 or 6 years) this person were “crazy” and drove a car the proved to be reliable for 20 years somewhere between 20-55 years old!! Difficult but really a small sacrifice in the grand scheme of life. Granted, it’s not a sacrifice that everyone needs to make. If you’re settled in on a good job by 35 with low debt and a little savings...by all means make a standard retirement contribution and make room in your budget for a new car every 6 years.
Your scenario is not realistic. A single 25 year old person’s transportation needs aren’t the same as a 40 year old with 2 or 3 kids. Dropping insurance coverage is a money saving strategy? A pay my car off and then total it and then what? Safety and comfort improvements added to cars within 20 years is a bonus. I’m not taking a family trip in a 20 year old car cross country.
For someone planning every detail to the future, you’re leaving out a lot of assumptions and adding a lot of risk. The way people find out their car is no longer reliable, is typically after one too many strandings. It is impossible to buy a car and assume it will last a specific amount of time. Sure your car may have, but you only knew that after the fact.
Just live within your means and you don’t have to sacrifice anything to be able to retire comfortably.
Your scenario is not realistic. A single 25 year old person’s transportation needs aren’t the same as a 40 year old with 2 or 3 kids. Dropping insurance coverage is a money saving strategy? A pay my car off and then total it and then what? Safety and comfort improvements added to cars within 20 years is a bonus. I’m not taking a family trip in a 20 year old car cross country.
For someone planning every detail to the future, you’re leaving out a lot of assumptions and adding a lot of risk. The way people find out their car is no longer reliable, is typically after one too many strandings. It is impossible to buy a car and assume it will last a specific amount of time. Sure your car may have, but you only knew that after the fact.
Just live within your means and you don’t have to sacrifice anything to be able to retire comfortably.
Not realistic? Most vehicles sold are capable of hauling around 1 or 2 kids. Not sure where the idea came around that one’s first infant means an immediate SUV/CUV/minivan shopping trip. My parents did 1 and then 2 kids with cars like a Datsun 510/Buick Century/Regal coupe, etc. A very small percentage of new vehicles sold are 2 seater coupes incapable of hauling 1 or 2 small kids in the backseat. Sure, look for something a little more practical when the time comes and the kids have grown a little.
And ya know - theirs typically two parents who may upgrade vehicles at different times. Maybe mom gets a new car when say baby #1 is 3 years old while dad keeps chugging along in a 12 year old Camry. Of course the family will likely take the newer vehicle on a road trip. When mom’s new car is say 5 years old, it’s time for dad to get a new one. Perhaps dad actually decides to let mom have another new car while he takes over mom’s older one.
Let’s not pretend people like my parents did the impossible by driving cars 15-20 years. A family with two cars can easily get 15 years/150-200k miles out of each vehicle.
And thank you for bringing up families.
For the average family, spending most of their time with two car payments can SIGNIFICANTLY impact their future. Life altering even. Generational transformative money.
What’s safer - going through life on a financial cliff or driving a 20 year old car?
I’ll take less stress and the ability to significantly improve socioeconomic position in life. Ya know...things that money saved, invested and compounded can allow for...safer city, better neighborhood, bigger house, college for the kids, more comfy retirement.
On the front end, yeah driving a car to 20 years old could be a tiny bit more “dangerous”, but on the backend it allows for safety to be enhanced in other ways.
It’s a little foolish to think one can’t possibly benefit in any way by making an effort to avoid car payments by driving his or her car longer.
Not realistic? Most vehicles sold are capable of hauling around 1 or 2 kids. Not sure where the idea came around that one’s first infant means an immediate SUV/CUV/minivan shopping trip. My parents did 1 and then 2 kids with cars like a Datsun 510/Buick Century/Regal coupe,
Your parents didn't have legally required rear facing baby seats that don't FIT in the back of so many cars these days.
Knock it off with the "we made do" crap and think about what is legally required now. Kids stuff: strollers, rear facing car seats, etc, just don't fit in many modern sedans and in NO modern coupes. Hell, they won't fit in the cars your parents used, either. And getting a child in and out of a latched rear facing car seat is a real PITA, and cannot be done in the backseat of a coupe. At all.
Your parents didn't have legally required rear facing baby seats that don't FIT in the back of so many cars these days.
Knock it off with the "we made do" crap and think about what is legally required now. Kids stuff: strollers, rear facing car seats, etc, just don't fit in many modern sedans and in NO modern coupes. Hell, they won't fit in the cars your parents used, either. And getting a child in and out of a latched rear facing car seat is a real PITA, and cannot be done in the backseat of a coupe. At all.
Which mass produced vehicles are incapable of holding a baby seat?
Regardless, it’s rather irrelevant - the point is that two adults can save a tremendous amount of money by going a significant amount of time without a car payment. If that means being forced to trade in their current vehicle for something of similar value that’s more kid friendly - so be it...drive THAT kid friendly vehicle a long time and cease the perpetual payments.
Is that really hard to figure out?
BTW - I really am curious about which vehicles won’t hold a child. A while ago I was looking at the Honda Civic Type R and happened to see conversations about child seats. Some Type R owners were posting pictures with TWO baby seats in the back.
Let’s not pretend that suggesting no car payments is the modern equivalent to walking to school 10 miles uphill in the snow while barefoot.
Last edited by eddiehaskell; 10-20-2019 at 11:24 AM..
There's also low depreciation. I bought a brand new Jeep for $37K and traded it 7 years later for $24K. Actual cost per month was $154. Not bad for a car payment.
Wrangler I take it?
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