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I can't commit to buying a new car (1 Viewer)

KCitons

KCitons

Footballguy
Wife and I have been discussing buying a brand new car. We have 3 teenage drivers and 4 older cars that we use between the five of us. The newest car is a 2007. Looking at the initial cost and depreciation of a new car freaks me out.

I don't want to spend $25k on something that is only going to lose money every day I own it? The idea of a car payment every month (even at 0% interest) doesn't sound all that fun either. Plus, insurance and licensing will be higher for a new car. (not to mention the nice sales tax bill 30 days after purchase)

I used to love cars, now I hate them.

 
KCitons said:
Wife and I have been discussing buying a brand new car. We have 3 teenage drivers and 4 older cars that we use between the five of us. The newest car is a 2007. Looking at the initial cost and depreciation of a new car freaks me out.

I don't want to spend $25k on something that is only going to lose money every day I own it? The idea of a car payment every month (even at 0% interest) doesn't sound all that fun either. Plus, insurance and licensing will be higher for a new car. (not to mention the nice sales tax bill 30 days after purchase)

I used to love cars, now I hate them.
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I agree and it's sound logic for the most part but regarding "only going to lose money everyday I own it"....keep in mind that your current 4 cars are losing money everyday too. They are going down in value as the years go by and the miles add up.

 
True. But my initial investment is much lower on my current vehicles. The 2007 had a good part of the balance paid due to hail damage. I have $15k invested in the other 3 vehicles combined.

 
KCitons said:
George Jefferson Airplane said:
Try something three or four years old imo
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trying to convince my wife. Her argument is that it won't have a warranty. My counter, is that we could either buy a 3rd party warranty, or earmark the money saved for repairs if needed.

I think she's jonesing for that new car smell.
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Warranty is pretty pointless, imo.

I think the the "all paid for" smell is much nicer than the "new car" smell. Oh yeah, go ahead. I'll let you use that one on her.

 
eoMMan said:
KCitons said:
George Jefferson Airplane said:
Try something three or four years old imo
Click to expand...
trying to convince my wife. Her argument is that it won't have a warranty. My counter, is that we could either buy a 3rd party warranty, or earmark the money saved for repairs if needed.

I think she's jonesing for that new car smell.
Click to expand...
Warranty is pretty pointless, imo.

I think the the "all paid for" smell is much nicer than the "new car" smell. Oh yeah, go ahead. I'll let you use that one on her.
Click to expand...
:lmao:

 
KCitons said:
TheIronSheik said:
Pretty much everything you buy depreciates. Do you have trouble buying food?
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Not really. Food is a necessity to sustain life. A car isn't.

Pick something else that costs over $10k that depreciates in value so rapidly.
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My point was more that everything depreciates. Do you need a car? Then you get one. Do you not? Then don't.

If you are this bothered BEFORE buying a new car, then you will be miserable once you get one.

 
It's probably me using a dated reference point, but it does boggle my mind with the number of people buying cars that cost more than $30,000.

 
WhatDoIKnow said:
KCitons said:
TheIronSheik said:
Pretty much everything you buy depreciates. Do you have trouble buying food?
Click to expand...
Not really. Food is a necessity to sustain life. A car isn't.

Pick something else that costs over $10k that depreciates in value so rapidly.
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A boat. But I do agree with you, and would look at used vehicles.
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Did that in my 20's. Lesson learned.

The best two days for a boat owner: The day you buy it, and the day you sell it.

George Jefferson Airplane said:
KCitons said:
TheIronSheik said:
Pretty much everything you buy depreciates. Do you have trouble buying food?
Click to expand...
Not really. Food is a necessity to sustain life. A car isn't.

Pick something else that costs over $10k that depreciates in value so rapidly.
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Women over 40
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Amen

eoMMan said:
KCitons said:
TheIronSheik said:
Pretty much everything you buy depreciates. Do you have trouble buying food?
Click to expand...
Not really. Food is a necessity to sustain life. A car isn't.

Pick something else that costs over $10k that depreciates in value so rapidly.
Click to expand...
Nice clothing.
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We obviously shop at different stores. Not sure I would hit the $10k mark for every article of clothing in my adult life.

 
I'm not necessarily advocating buying a new car, particularly if it is out of the budget.....however, there is a certain peace of mind that does come with having a new vehicle and full warranty for 3-4-5 years that covers anything that may come up.

Further, the depreciation on a well maintained car is not quite as bad as you may think. Many people think you lose half the value when you drive off the show room floor, as this was the norm back in the 70's and 80's I suppose.

But cars these days hold their value rather well. Many vehicles ride good as new at 200,000+ miles even.

And zero percent interest is pretty much the best deal there is available, imho. I mean, wtf gives someone else 25K worth of merchandise and asks them to pay it back over 3 years for a total of 25k?

Personally, I buy my vehicles new. I don't lease. But, I only have one car payment, as I keep the cars until they are fully paid off and then some. When both are paid off, trade in the older vehicle for a new car. Trade in also knocks off your sales tax burden. Last vehicle I traded in I think was a 2002 Mazda 6. I offered to sell it for $6k to someone in a hurry, and they declined. Dealer gave me $8K in trade-in. The vehicle was 7 years old with about 90,000 miles on it (fwiw, I believe that was about 35+% of the original purchase price.), I thought I got my money's worth :shrug:

 
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It only depreciates when you go to sell it and you seem to keep vehicles for a long time. I wouldn't worry about it like you are.

Warranties will cover you for the first few years with a new car too. Put your big boy pants on and go buy that car.

 
avoiding injuries said:
It only depreciates when you go to sell it and you seem to keep vehicles for a long time. I wouldn't worry about it like you are.

Warranties will cover you for the first few years with a new car too. Put your big boy pants on and go buy that car.
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You must have missed my previous post. I don't spend a lot of money on clothes. Much less big boy pants. (mostly jorts)

 
:shrug: when I buy a car I buy it with the knowledge that I will be owning it for the next 10 to 15 years.. Knowing that makes buying new worth it IMO..

 
guru_007 said:
I'm not necessarily advocating buying a new car, particularly if it is out of the budget.....however, there is a certain peace of mind that does come with having a new vehicle and full warranty for 3-4-5 years that covers anything that may come up.

Further, the depreciation on a well maintained car is not quite as bad as you may think. Many people think you lose half the value when you drive off the show room floor, as this was the norm back in the 70's and 80's I suppose.

But cars these days hold their value rather well. Many vehicles ride good as new at 200,000+ miles even.

And zero percent interest is pretty much the best deal there is available, imho. I mean, wtf gives someone else 25K worth of merchandise and asks them to pay it back over 3 years for a total of 25k?

Personally, I buy my vehicles new. I don't lease. But, I only have one car payment, as I keep the cars until they are fully paid off and then some. When both are paid off, trade in the older vehicle for a new car. Trade in also knocks off your sales tax burden. Last vehicle I traded in I think was a 2002 Mazda 6. I offered to sell it for $6k to someone in a hurry, and they declined. Dealer gave me $8K in trade-in. The vehicle was 7 years old with about 90,000 miles on it (fwiw, I believe that was about 35+% of the original purchase price.), I thought I got my money's worth :shrug:
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When the real value of the product is $20k.

 
avoiding injuries said:
It only depreciates when you go to sell it and you seem to keep vehicles for a long time. I wouldn't worry about it like you are.

Warranties will cover you for the first few years with a new car too. Put your big boy pants on and go buy that car.
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It also costs you more money in insurance and if you're like me it will drive you nuts when you get your first scratch.

No thanks, I'll stick to my used cars with a few scratches already on it.

 
Brony said:
It's probably me using a dated reference point, but it does boggle my mind with the number of people buying cars that cost more than $30,000.
Click to expand...
It shouldn't. Most people are completely terrible with money which is why the net worth of the average person is jack squat.. even amongst higher earners.

 
I agree, I wouldn't buy new unless you can afford to pay cash at the time of purchase because you are loaded and have a high positive net worth.

However, it is true if that if you are willing to keep the vehicle long enough that the depreciation shouldn't bother you... you haven't realized the depreciation until you sell.

I would say the majority of money even the most frugal of people spend though is on depreciating assets or assets that tread water.

How do you live with yourself when you buy a computer or a TV or really anything that isn't an investment

 
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.

 
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guru_007 said:
I'm not necessarily advocating buying a new car, particularly if it is out of the budget.....however, there is a certain peace of mind that does come with having a new vehicle and full warranty for 3-4-5 years that covers anything that may come up.

Further, the depreciation on a well maintained car is not quite as bad as you may think. Many people think you lose half the value when you drive off the show room floor, as this was the norm back in the 70's and 80's I suppose.

But cars these days hold their value rather well. Many vehicles ride good as new at 200,000+ miles even.

And zero percent interest is pretty much the best deal there is available, imho. I mean, wtf gives someone else 25K worth of merchandise and asks them to pay it back over 3 years for a total of 25k?

Personally, I buy my vehicles new. I don't lease. But, I only have one car payment, as I keep the cars until they are fully paid off and then some. When both are paid off, trade in the older vehicle for a new car. Trade in also knocks off your sales tax burden. Last vehicle I traded in I think was a 2002 Mazda 6. I offered to sell it for $6k to someone in a hurry, and they declined. Dealer gave me $8K in trade-in. The vehicle was 7 years old with about 90,000 miles on it (fwiw, I believe that was about 35+% of the original purchase price.), I thought I got my money's worth :shrug:
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+1

avoiding injuries said:
It only depreciates when you go to sell it and you seem to keep vehicles for a long time. I wouldn't worry about it like you are.

Warranties will cover you for the first few years with a new car too. Put your big boy pants on and go buy that car.
Click to expand...
Agreed

snogger said:
:shrug: when I buy a car I buy it with the knowledge that I will be owning it for the next 10 to 15 years.. Knowing that makes buying new worth it IMO..
Click to expand...
Same here

 
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when I buy a car I buy it with the knowledge that I will be owning it for the next 10 to 15 years.. Knowing that makes buying new worth it IMO..
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If you are planning to keep a car that long then why not buy a 5 year old car and keep it 5-10 years?

 
Buying a new car = something I will never do again, unless I have a windfall of disposable money.

As CSTU said, buy a 5 year old car for half the price (or less) of that new car and keep it for 10 years. Also, in case you need to sell or just prefer something else, it makes it much easier to sell for what its worth.

No idea why so many in here are saying that even your older cars depreciate. Duh.........just nowhere near as fast. That's his point.

 
Wooderson said:
In the last 2.5 years my wife and I and both got new vehicles.

So much less stress doing it this way.
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So much less money in your pocket also.

I actually think its more stressful driving/owning a new car just due to the fact that I know how pissed I would be if someone goes and opens their car door into in the parking lot, or keys it, or whatever.

I prefer to go with older cars and maintenance them correctly. I can afford new cars, but meh, so not worth it at all for me with that inflated cost. Hell the taxes alone can buy you a reasonable used car.

 
It cracks me up that a new, top of the line Ford Taurus costs $40k. A crappy Dodge Durango can also set you back $40k. Even a pos Chevy Malibu starts out around $25k. I think these days you are much better off buying a pristine 2-3 year old vehicle that still has some factory warranty remaining.

 
KCitons said:
George Jefferson Airplane said:
Try something three or four years old imo
Click to expand...
trying to convince my wife. Her argument is that it won't have a warranty. My counter, is that we could either buy a 3rd party warranty, or earmark the money saved for repairs if needed.

I think she's jonesing for that new car smell.
Click to expand...
This is the way to go - CPO with an extended warranty and relatively low mileage. Let some other sucker take the hit off the showroom floor; find one that's just off a 3 year lease, clean with low miles. That's basically a new car.

We're looking at a new family SUV for the wife this Spring. We were initially thinking about going with a new Honda Pilot, but more and more I'm thinking there's a better value proposition in spending the same amount or maybe even a little less and getting a luxury SUV off its first lease and buying CPO.

 
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.

 
Otis said:
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
This seems like some great progress on the financial front for you

We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.
Click to expand...
 
Dentist said:
Otis said:
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
This seems like some great progress on the financial front for you

We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.
Click to expand...
Click to expand...
I'm learning GB :thumbup: If only I'd learned these lessons a decade ago, I would be :moneybag:

 
Otis said:
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.
Click to expand...
One of the biggest financial mistakes my wife and I made when we first got married was pissing away tons of cash on top end vehicles.

 
Da Guru said:
Otis said:
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.
Click to expand...
One of the biggest financial mistakes my wife and I made when we first got married was pissing away tons of cash on top end vehicles.
Click to expand...
For about a 15 year period starting in 1998 I wasted an obscene amount of money on cars. That's one of those things I'd like to go back and counsel younger Otis on.

 
Otis said:
Da Guru said:
Otis said:
Gator Shawn said:
I went a stretch where I was buying a new car every 2 or 3 years. Now both cars are paid off and I can't fathom a car payment. Cars just aren't that important to me since my kids have gotten out of their toddler years. (14 and 11 now)

Buy it new. If you get a lemon the warranty will be nice. By the time the warranty expires, you know if you have a good car or not. Keep it until the wheels fall off.

No car payment is nice.

Alternatively, buy it off lease ~3 years old, leasing companies unload them at good deals when they are lease returns.
Click to expand...
We only recently added a second car to our household. The first was a stupid new luxury SUV lease that is a lesson learned. When we added the second I found a used 6 year old SUV and paid cash. It's a wonderful feeling not making a car payment, and the used car is more comfortable to drive, bigger, and our all around preference. We're driving the lease into the ground until it's up in March and sparing the miles on the used car until then, but I cannot wait to get rid of that stupid thing.

No car payment rocks. We'll buy our next main car and keep it till after it's paid off and then drive it long as we can.
Click to expand...
One of the biggest financial mistakes my wife and I made when we first got married was pissing away tons of cash on top end vehicles.
Click to expand...
For about a 15 year period starting in 1998 I wasted an obscene amount of money on cars. That's one of those things I'd like to go back and counsel younger Otis on.
Click to expand...
You wouldn't have listen even to yourself.
 
Local Ford dealership has a black Friday special on Ford Fusion SE. $139 a month for 2 years with zero down. Wife wants to go look in the morning, I keep telling her its a bait and switch. Looks like I won't be sleeping in tomorrow.

 
If you're worried about depreciation, buy a Honda Accord not a Ford Fusion. Hondas hold their value extremely well.

I was shopping for a two year old Honda earlier this year and it's kind of pointless because they still cost about 80% of a new one.

 
KCitons said:
Local Ford dealership has a black Friday special on Ford Fusion SE. $139 a month for 2 years with zero down. Wife wants to go look in the morning, I keep telling her its a bait and switch. Looks like I won't be sleeping in tomorrow.
Click to expand...
Like this Ford Fiesta SE?

*$119/mo - 24 month lease. 10,500 miles per year. $1,799 down. Total MSRP: $17,505. First payment, $645 Acquisition Fee, Taxes, Title, Registration and Documentation Fee extra. Must qualify for lease conquest. Offers ends 11/30/14.

No real catch - just know you can live within the mileage and how much more the all those other fees will be. Probably $3K plus in this example. You get to drive around a new Ford Fiesta (just not too much with that mileage ...) for 2 years and then turn it in for $250 approx. a month - all payments included.

 
Last edited by a moderator:
Binky The Doormat said:
KCitons said:
Local Ford dealership has a black Friday special on Ford Fusion SE. $139 a month for 2 years with zero down. Wife wants to go look in the morning, I keep telling her its a bait and switch. Looks like I won't be sleeping in tomorrow.
Click to expand...
Like this Ford Fiesta SE?

*$119/mo - 24 month lease. 10,500 miles per year. $1,799 down. Total MSRP: $17,505. First payment, $645 Acquisition Fee, Taxes, Title, Registration and Documentation Fee extra. Must qualify for lease conquest. Offers ends 11/30/14.

No real catch - just know you can live within the mileage and how much more the all those other fees will be. Probably $3K plus in this example. You get to drive around a new Ford Fiesta (just not too much with that mileage ...) for 2 years and then turn it in for $250 approx. a month - all payments included.
Click to expand...
No more like this one:

2015 Ford Fusion SE Sedan Lease for $139/month for 24 months*

*24 month lease. 10,500 miles per year. $1,999 down. ZERO DOWN Total MSRP: $24,760. First payment, $645 Acquisition Fee, Taxes, Title, Registration and Documentation Fee extra. Must qualify for lease conquest. Offers ends 11/30/14.

Here's a link to the add



 
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