When to buy a new car? (payments, credit, convert, sell)

[UrbanAdventurer]

Originally Posted by SpeedyAZ

I don't agree with your reasoning, I think as long as one has enough money set aside to live if a major tragedy were to occur and one doesn't have a mound of debt or bills that need to be paid; a new car can be an alright purchase even if the older vehicle still has life in it.

I don't believe there is anything wrong with just saying "I WANT a new vehicle" if you can financially afford it. Because I trade up every 3 years, I usually don't have to pay much out-of-pocket for my new vehicle and to me, it makes better sense to trade up while my trade is still worth something than to wait until I get peanuts for it. If I trade in a vehicle and say get between $30K-$35K for the trade and buy a new vehicle for $45K-$50K, I'm only paying between $15K-$20K out of pocket versus waiting for 6 years and getting $15K for my trade and buying a vehicle for $45K-$50K and paying $30K-$35K out of pocket.

Yeah but if we're assuming in that scenario you pay your cars off every three years before trading them in, keeping one for 6 years simply means you spend an extra 3 years without a car payment and still get $15k selling it right? It washes basically. There's really no winning this game if you want to drive large. You pay either way, whether it's at the point of sale, or spread out over unending payments.

[Gatornation]

Here is our car plan and I just happen to have a Corolla my wife bought that I hate that I've been driving for three years now.

2004 Corolla
2007 CRV

I HATE the Corolla but have stuck with it since it's paid off(both cars have been paid off for two years now). Over the next two years we are going to save 15k and pay cash for a car to replace the Corolla.
After that we will save about 200 a month to pay cash to replace the oldest car every 7-10 years.

[Tober138]

Originally Posted by BigDGeek

Hopefully I will hold myself to my father's standard: when you've sunk or are about to sink what the car is worth into keeping it running or maintaining it over a 12-month period. Say for example your car's blue book value is $2,000. It breaks down and the mechanic says it'll cost $1,500-$2,000 to fix it and when you ask about further maintenance, he sucks his teeth and says "Wellllllllllllllllllllllllllll...."

That's when it's time.

Generally, that is my perspective on it too. I got my first car while in college and drove that until it was on the verge of falling apart some 10 or 11 years later with about 200k miles on it. Once it reached the point where continued repairs made no financial sense, I finally bought a new one.

I now make more money than I did 10 years ago so I may replace my current car a bit earlier than when it is almost dead - nothing wrong with buying something newer or nicer for yourself if one can afford it. And I would like to buy a brand new car, as the three I have had over the years were all used. They were fine, but I'd like my next car to be a new one (and, yes, its a want, not a need) and if I can afford it, I will.

That said, I've never been a luxury car kind of guy - I see cars as a way to get from point A to point B, so I would never be dropping the $$$ on a Lexus or BMW. I'd rather spend my money on other things.

Originally Posted by Tightwad

The best time to replace, not buy, your cars is when there is a valid need for replacement.i.e. car to small,car wrecked,car body/frame failing. There is no other valid reason to replace a fully functional car.

Yes Tightwad...we all know that opinions and lines of reasoning that differ from yours are not "valid".

Originally Posted by Tightwad

I buy cars on a 20>30 year cycle since I hate car payments and wasting money.

Just because you consider it a waste of money does not mean that it "is" a waste of money...it depends on the person. Everyone has different things that they choose to spend their disposable income on...it could be a luxury car, nice clothes, fine dinners, exotic vacations, etc. Like anything else, if people purchase something for themselves, and feel that what they received was worth the price paid, then it was not a waste of money for them.

Originally Posted by TurtleCreek80

Take care of your own finances; don't worry about Others.

Agreed. Large scale purchases should be based on personal needs and reasons, not to impress others.

Originally Posted by SpeedyAZ

I don't believe there is anything wrong with just saying "I WANT a new vehicle" if you can financially afford it.

You are correct...but there will always be some people who feel they need to tell others how they "should" spend their money.

[On Air]

I run my cars to the ground usually. Currently we've got a 2011 Prius and a 2006 Mini Hardtop. We just recently bought the Prius for the gas millage and such because our old Camry was totaled in an accident after 15+ years (it was my husband's since college.) We had a separate fund for cars that we gradually save and buy the best car we can with the money we've saved once we lose a car for whatever reason.

[Escort Rider]

Originally Posted by Tightwad

The best time to replace, not buy, your cars is when there is a valid need for replacement.i.e. car to small,car wrecked,car body/frame failing. There is no other valid reason to replace a fully functional car. REMEMBER, NEVER EVER FALL IN LOVE WITH A CAR!

If you've done your homework to select the proper car (remember it's a machine) before you buy then it should last you until it's worn out.

I buy cars on a 20>30 year cycle since I hate car payments and wasting money.

There is nothing wrong with viewing cars for their practical transportation value only, as you do, Tightwad. However, some of us are actually car enthusiasts who passionately enjoy driving and who value the way a car performs and derive much pleasure from that performance (such as good handling on curvy roads as just one example). What would life be without some passion or other? In some areas getting the most practical value from one's money is simply irrelevant, and what those areas are will differ from person to person. Cars can be a hobby, in other words. So for most people, cars are just a machine which performs a function, like a refrigerator, and I have no quarrel with that. But for me a car is far more than a machine, and my viewpoint is just as valid as yours.

[StealthRabbit]

Originally Posted by hml1976

Just wondering what kind of parameters you use to decide when its time for a new car?
Since you are my neighbor... buy 'new' WHEN YOU DON"T live in a state with 8% sales tax!!! (I have not bought a new one in the 30+ yrs I've been here), but... I have plenty of 'used' to chose from (12 in the driveway tonight ) 10 are 50 MPG VW's My current 'driver' cost me $35.00 and gets 46 mpg (no gas / OPEC or dinosaurs required), and many think it is pretty 'cool' (StealthRabbit with suspension kit). I found my Rabbit in a 'brier patch near Fern Prairie'

actually the 'short' answer is ... When your BIG ship comes in (like when DH gets a $3m settlement when his company gets bought out)

....

DH hates his car, he's a Director at a mid-size corporation and people that work for him drive BMWs...

Time for DH to start playing detective / investigator Most of those young buckaroos driving the Beemers have a secret passion to own something more practical and A LOT more fun. so then DH does this >>>

Originally Posted by miyu

.. My husband is a car freak and he will detail all the used cars until people think they are completely new... once we got asked how much our shiny 2001 BMW was... because somebody thought it was the 2010 model...

DH determines what HE wants and is FUN and INEXPENSIVE. There are some older BMW's / Volvos / MB's that really are cool cars and under $5-$8k My son just picked up a NICE 'cherry' Volvo AWD with 6 speed / Turbo and very low miles. It is classy and sits next to the Ferraris, Lamborghini's, Porsches, Bentleys in the private parking garage of his employer. AND it is cheap enough to insure, and to USE (As in not worrying about getting it stolen or scratched. ) Cars happen to be expendable, especially in our climate (having had 4 of my 50 mpg cars get crunched by cell phone taking SUV's on our rainy roads.) (very hard to find replacements, since they only imported 700 of them )

Have DH do some dreaming and investigation and find JUST the right match for him, then give him a reasonable budget ($7k-$10k) and let him have some fun. (have him go check out Aaron's Porsche at Camas Hardware ) There are so very FUN cars hidden in workshops / barns in Camas Washougal area. (Get a 'gorge runner', and jet down to Skamania Lodge / Fairgrounds frequently. http://www.skamaniacounty.org/facilities-rec/ (this was great for my kids learning yrs, and Mom and dad can hang-out nearby (WalkingMan /Joes Coffee) )

Don't sweat the college $$ for kids. You can utilize 'Running Start' (2 yrs for free) and kids can get CHEAP loans / grants for the remaining $$ (much cheaper than parents paying). I started ROTH IRA's for my kids @ age 12. I matched their income 100% into ROTH (up to limits). They each had enough to pay for college in the ROTH's (AND it is not counted against their FAFSA). They each consolidated their student loans (~$16k) @ 2.7% for 20 yrs... no big hurry to pay those off.

[mathjak107]

im a bit of a car buff and always love new cars so as long as we can do it i get a new car whenever the warranty is up on the older one.

my last 2 bmw's had 4 year warrantys and all maintaince included and were actually cheaper to own then my nissan xterra. so when the warrantys are up i get another. its just to costly to own these long term without warrantys and maintaince included .

i got a deal in the mail the other day to drive in my 2009 and drive away in a 2011 for no money down and not 1 penny more a month. ...we just may do it. they are selling used pre-owned cars at such a premium as folks dont qualify for new ones so they are giving away the new ones to get a late model used one.

i found trying to own cars beyond 4 years or so just ended up costing more then just getting a new one. my volvo was a horror. i think the only thing i didnt replace in 8 years of ownership was the glove compartment door. i finally got rid of it at 88,000 miles when the rear failed. imagine a rear failing. my muscle cars i owned as a kid never had a rear fail.

back in the 90's a japanese car would go 100k with no failures they were that good. jd powers predicted that the japanese cars would eventually have to stop building in the durability or they would put themselves right out of business eventually. well they were right, by the early 2000's the failure rate of key components were on the rise. definite life spans were now being built in so the cost of trying to keep one going for a decade would increase drastically. right at the 4 year mark the alternators failed a month apart in our nissan quest and our altima.

for what the 11 years of ownership cost on my sons nissan altima in the later years he could have bought a new one years earlier.

[Gandalara]

Originally Posted by hml1976

My question isn't really if we can afford a new (to us) car (just one, mine will last many more years) but when you decide its time for one.

When the old one falls apart.

[mathjak107]

my experience has been by then you have already sunk a ton of money in. we always thought okay this last 1500 should hold us for a year and then boom another issue happens. then you go well i just put 1500 bucks in so ill just do another 500 for this issue.

i found it never ends after a point.

[Ultrarunner]

The two reasons for most people to buy a car is NEED or DESIRE

Many people buy because of desire and not out of need.

Coming form a car background, we buy based on need and keep a lookout for a good deal.

I alerted my bother to a 4,000 mile Chrysler 300 that was garage kept and flawless... the owner had paid close to 40k and the estate was selling it... my brother offered 13k cash and bought it.

The only he did was buy a new battery... just didn't want to chance a problem because the car had sat for 14 months...

A third reason has to do with business... so far, I have never sold a car for less than I have paid for it... all were used and gave good service... something better came along and I upgraded.

I think your Husband will see many more years of service from your vehicles... you could very well have one or both of them ten years from now.

My daily driver is 20 years old... people stop me every week asking if I want to sell