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Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Buck
Date: February 03, 2020 12:37PM
"The road to riches is this simple: Drive a crappy car"

That may not be everything, but a good start. This analyst probably listens to Dave Ramsey.
I'm glad my cars are paid for, and not crappy. Yet.

[www.marketwatch.com]

"Unless you are driving a Ferrari, a car is not an investment. A car is basically a huge waste of money.

Where else can you take $40,000 and set it on fire in seven years? And pay a bunch of interest to the bank in the process? What a disaster.

Funny thing about cars — people’s egos are really tied up in the brand of the car. People like to say they drive a “Benz” or a “Beamer.” Puke. I drive a Toyota TM, +0.28%. They never break down, and they last forever. They’re a great car to own that is paid for."



Edited 1 time(s). Last edit at 02/03/2020 12:40PM by Buck.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Lux Interior
Date: February 03, 2020 12:44PM
I thought you just had to stop going to Starbucks?
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: jdc
Date: February 03, 2020 12:53PM
ugh, dont read it, I did, waste of time.

So if I spend less than $40K on a new car, I will be rich?. Where did this magic $40K number come from? why not $80K? Or $100K?

If I only spend $39K, Im rich?

Hundreds of great cars to choose from, new, under $40K. Endless list.

What if I buy a used car. For $40K, am I safe then?

What if I buy a car for $50K, but its a Tesla and drive 100 miles to work everyday. can I factor in my gas savings vs car payment?

total click bait.



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mikebw
Date: February 03, 2020 12:54PM
Quote
jdc
ugh, dont read it, I did, waste of time.

So if I spend less than $40K on a new car, I will be rich?. Where did this magic $40K number come from? why not $80K? Or $100K?

If I only spend $39K, Im rich?

Hundreds of great cars to choose from, new, under $40K. Endless list.

What if I buy a used car. For $40K, am I safe then?

What if I buy a car for $50K, but its a Tesla and drive 100 miles to work everyday. can I factor in my gas savings vs car payment?

total click bait.

And with no car, many people will not make any money. It is a tool.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: decay
Date: February 03, 2020 12:57PM
Not saying anyone needs a new car, but reliability factors in massively for many careers. If I need to get to a client to service their computers, I can't be breaking down all the time. I can't bike to my clients. Our contracts hinge on being able to do the job.



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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: freeradical
Date: February 03, 2020 01:08PM
Quote
Lux Interior
I thought you just had to stop going to Starbucks?


This is where money really gets wasted. I make coffee at home, so my monthly habit is probably $10-15 per month.

Other money wasters:

- bottled water

- buying lunch instead of bringing it from home

- sodas of any kind

- alcohol

- tobacco

- 420

- buying name brands instead of generics

- any kind of recurring payment needs to be scrutinized

I bet that most people can easily save over $100 per month without any pain whatsoever if they examine where the money is going.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Ammo
Date: February 03, 2020 01:12PM
Agreed. My last car purchase was a used (excuse me, pre-owned) 2015 dealer certified Honda. 34,000 miles for $25,000. I believe it originally sold for about $38,000 new.



Be kind, for everyone you meet is fighting a battle you know nothing about. —Wendy Mass
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Randalls
Date: February 03, 2020 01:25PM
Interesting read. My 98 Civic is a stick and fun to drive. I will eventually have to buy a new car but am not looking forward to it
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: anonymouse1
Date: February 03, 2020 01:33PM
Bought new Prius in 2015 for about $27.5K. No interest loan from Toyota, will be paid off in April or May. Gas mileage is about twice as good as prior 1995 Honda Accord.

So far, the only maintenance (other than oil, fluids, filters) has been three windshield wipers. Maintenance on the 1995 was running $1k/year. Similar cars are selling for maybe $12.5K around here.

Back of envelope calculations says that so far, the gross cost (purchase price minus selling price) is $3K per year. When you take out the avoided maintenance costs and reduced gasoline costs, the cost per year has been about $1.2K. In that scenario, our marginal cost per year, relative to the Accord, after this coming April, goes down to a net profit (depreciation slows down, but avoided costs stay much the same).

Look, I'm not saying this is the absolutely correct analysis. I'm just saying there are lots of different frameworks to look at this analysis from, and the linked article is a trivial, obvious waste of time.

As the Sufi story goes, "The time spent reading this could have been spent more profitably in any other way."
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: RAMd®d
Date: February 03, 2020 01:50PM
people’s egos are really tied up in the brand of the car. People like to say they drive a “Benz” or a “Beamer.”

True enough, but it's a choice, and if one can afford it, it's their choices and not necessarily a bad one.


Puke. I drive a Toyota TM, +0.28%. They never break down, and they last forever. They’re a great car to own that is paid for.

No, noooooo ego in that statement.

That comes from someone who needs a foot up their ass to unclog their critical thinking.

Granted, buying any car new represents a huge loss, driving it off the lot, as they say.

So there's great value in buying used, for the careful, savvy shopper.

But 'I paid $20,000 for my Toyota, and if you don't as I do, you're an idiot' is just stupid.

Buy what you want and can afford, and if you're happy, everyone else can fsck off.




When a good man is hurt,
all who would be called good
must suffer with him.

You and I have memories longer than the road that stretches out ahead.

There is no safety for honest men except
by believing all possible evil of evil men.

We don’t do focus groups. They just ensure that you don’t offend anyone, and produce bland inoffensive products. —Sir Jonathan Ive

Perfection is the enemy of progress. -Winston Churchill

-An armed society is a polite society.
And hope is a lousy defense.

You make me pull, I'll put you down.

Mister, that's a ten-gallon hat on a twenty-gallon head.

I *love* SIGs. It's Glocks I hate.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mattkime
Date: February 03, 2020 01:51PM
I ended up buying a new car because it was better priced than comparable used models. Also, I didn't feel comfortable buying a used car with an unknown history and uncertain longevity.

Buying used makes a hell fo a lot more sense when you know cars. Most people don't. Why would they take the chance?



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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Acer
Date: February 03, 2020 01:51PM
I've bought used and I have bought new. When I buy new, I go for the long term. At least ten years, 100,000+ miles, then I keep going until major repair appears on the horizon or a good deal shows up. Used, I look for cars circa 75K miles, 5 or 6 years old or so.

Per my own anecdotal spreadsheets of 30 years of car purchasing, It takes at least ten years to approach the per-year capital cost of buying a used 6 year old car at 75K miles and running that five years. Even if factoring in the additional maintenance--If, and a BIG IF, you avoid a used lemon. Statistically a Toyota or Honda is the least likely to go lemon on you in old age. If they do go rogue, the parts and service are readily available from an independent shop.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: jdc
Date: February 03, 2020 01:52PM
Quote
freeradical
- sodas of any kind

Soda is only .25¢ a can on sale, or from costco. Even cheaper than bottled water. =)



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Acer
Date: February 03, 2020 01:55PM
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: vision63
Date: February 03, 2020 02:01PM
Just buy what you want.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: freeradical
Date: February 03, 2020 02:02PM
Quote
jdc
Quote
freeradical
- sodas of any kind

Soda is only .25¢ a can on sale, or from costco. Even cheaper than bottled water. =)


That's $91.25 per year.

Add a few more things like that up, and it starts turning into real money quite quickly.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Carnos Jax
Date: February 03, 2020 02:08PM
My only new car purchase was a Saturn (after I graduated college). Every 'new' car since then has been used. Saved mucho bucks, but then again I knew what I was getting into. My next car will be a new Tesla (Model 3, Y or the Cybertruck).



Edited 1 time(s). Last edit at 02/03/2020 02:09PM by Carnos Jax.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: vision63
Date: February 03, 2020 02:16PM
Quote
Carnos Jax
My only new car purchase was a Saturn (after I graduated college). Every 'new' car since then has been used. Saved mucho bucks, but then again I knew what I was getting into. My next car will be a new Tesla (Model 3, Y or the Cybertruck).

I'd like to get the Truck and leave a valuable out in plain sight to watch the thieves try to break the window.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Z
Date: February 03, 2020 02:37PM
So if I drive a '66 Volvo wagon that was purchased for 1/8th the threshold price, I'm rich?

One must enjoy the tinker / maintain aspect of it as I do, but yeah, I can't justify new cars, nice though they are.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mrbigstuff
Date: February 03, 2020 02:43PM
All of my car purchases have had somewhere in the 100K - 200K miles before I got them. True story. But, I do most of my own work.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: jdc
Date: February 03, 2020 02:47PM
Quote
freeradical
Quote
jdc
Quote
freeradical
- sodas of any kind

Soda is only .25¢ a can on sale, or from costco. Even cheaper than bottled water. =)

That's $91.25 per year.

Add a few more things like that up, and it starts turning into real money quite quickly.

Opens can, takes sip of very cold soda... Id pay double. =)

Try living in a house with 3 women, 2 of them teenagers. "we're going to Roseville" send shivers up my spine. banghead smiley



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mattkime
Date: February 03, 2020 03:05PM
Quote
Z
So if I drive a '66 Volvo wagon that was purchased for 1/8th the threshold price, I'm rich?

One must enjoy the tinker / maintain aspect of it as I do, but yeah, I can't justify new cars, nice though they are.

pics plz!



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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Yoyodyne ArtWorks
Date: February 03, 2020 03:12PM
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

Ain’t that the truth. Plus:

With very rare exceptions, cars are depreciating assets, often rapidly depreciating;

Ask the average car owner about the importance of waiting until the engine oil (not just coolant) has reached normal operating temperature before driving the car aggressively, and you’ll get a blank look.

Which is why I have little interest in expensive new cars...and why I seldom buy used cars (or motorcycles).



Once we place nonhuman animals outside our sphere of moral consideration
and treat them as things we use to satisfy our own desires,
the outcome is predictable.

- Peter Singer
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Dennis S
Date: February 03, 2020 03:17PM
My mom drove 29 years in one Honda and one Toyota.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mattkime
Date: February 03, 2020 03:29PM
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

I definitely ran into this while shopping for a family car. Seemed liked Subarus and Honda CRVs sold for $1k less per year since new. Made zero sense to me.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Rick-o
Date: February 03, 2020 03:41PM
I'm at the age where I don't want to mess with vehicle repairs constantly coming down the pike that you pretty much have with used vehicles. My main driver is a Silverado pickup and I buy new, leftovers from the previous year usually, and flip them every 4-5 years.

I basically just need oil changes during that time frame. I make enough dough not to worry about scrimping here and there for everything I buy and I want a reliable vehicle when I travel.

My philosophy is if I don't have enough cash, go out and make more until I get what I want. grinning smiley



Mr. Lahey: A lot of people, don’t know how to drink. They drink against the grain of the liquor. And when you drink against the grain of the liquor? You lose.

Randy: What the @#$%& are you talking about?
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Bill in NC
Date: February 03, 2020 04:03PM
Quote
Dennis S
My mom drove 29 years in one Honda and one Toyota.

I'm daily driving & slowly fixing up one of these:

[www.theonion.com]
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: dk62
Date: February 03, 2020 04:13PM
I am probably the worst offender there - I lease. But have zero interest dealing with reliability and out of warranty repairs.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: jdc
Date: February 03, 2020 04:28PM
Quote
mattkime
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

I definitely ran into this while shopping for a family car. Seemed liked Subarus and Honda CRVs sold for $1k less per year since new. Made zero sense to me.

Also same. We looked at Odessey minivans -- 2016 and 17 (there was no 2018) we all fine, but still $30K. Brand new 2019, fully redesigned, was $35K. New was a no brainer. (we got something different)

The $40K in the article is way above average. it was $35K for the Odessey EX-L -- leather, sunroof, and tons of extra doodads. Pilot about the same too. Those are *really* nice cars.



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: bfd
Date: February 03, 2020 05:06PM
Quote
freeradical
Quote
Lux Interior
I thought you just had to stop going to Starbucks?


This is where money really gets wasted. I make coffee at home, so my monthly habit is probably $10-15 per month.

Other money wasters:

- bottled water

- buying lunch instead of bringing it from home

- sodas of any kind

- alcohol

- tobacco

- 420

- buying name brands instead of generics

- any kind of recurring payment needs to be scrutinized

I bet that most people can easily save over $100 per month without any pain whatsoever if they examine where the money is going.

In today's world, the "subscription" economy is killing people's bank accounts. Streaming services, iPhone forever, software subscriptions, dinners-in-a-box, you name it. The recurring payment sucks plenty of tens and twenties and fifties from people's bank accounts. It's just like all the wall warts and vampire tech that constantly sucks electricity $$$ from it as well.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Dennis S
Date: February 03, 2020 05:10PM
Quote
Bill in NC
Quote
Dennis S
My mom drove 29 years in one Honda and one Toyota.

I'm daily driving & slowly fixing up one of these:

[www.theonion.com]

Ha ha. I just bought a '98 Camry.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: N-OS X-tasy!
Date: February 03, 2020 05:40PM
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

How does $26K for a low mileage (~26K), three year old Infiniti QX70 rate? I don' know nobody.



It is what it is.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: N-OS X-tasy!
Date: February 03, 2020 05:43PM
Quote
Dennis S
My mom drove 29 years in one Honda and one Toyota.

Was it difficult for her to drive two cars at the same time?



It is what it is.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: N-OS X-tasy!
Date: February 03, 2020 05:56PM
Quote
mattkime
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

I definitely ran into this while shopping for a family car. Seemed liked Subarus and Honda CRVs sold for $1k less per year since new. Made zero sense to me.

You just described two of the most popular used cars in America. Supply and demand still drives pricing - of course these are going to be more expensive than other options.



It is what it is.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Bernie
Date: February 03, 2020 06:15PM
Trucks hold their value, compared to cars.

If you are not picky the end of year leftovers go for about 20% off and good financing. This makes them cheaper that the late model used trucks.

CPO, or certified previously owned, are also good values.




Staunton, Virginia
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: space-time
Date: February 03, 2020 08:42PM
Quote
Z
So if I drive a '66 Volvo wagon that was purchased for 1/8th the threshold price, I'm rich?

One must enjoy the tinker / maintain aspect of it as I do, but yeah, I can't justify new cars, nice though they are.

Those cars will run forever.

But I am curious how safety are compared to today's cars equipped with airbags and designed to protect the passengers but sacrifice the engine and trunk compartments.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: space-time
Date: February 03, 2020 08:49PM
Quote
N-OS X-tasy!
Quote
mattkime
Quote
Acer
And another thing, I've found the well-priced, late-model used car to be a fiction, unless you know someone. Another 10% and I get new.

I definitely ran into this while shopping for a family car. Seemed liked Subarus and Honda CRVs sold for $1k less per year since new. Made zero sense to me.

You just described two of the most popular used cars in America. Supply and demand still drives pricing - of course these are going to be more expensive than other options.

still cannot explain why those 2-3 older cars are only 2-3K less than a new car. If they are popular, there are plenty of offers and also plenty of buyers. and most buyers can do the math and figure out they could get a new car for only 2-3k more. So who buys those cars?

I went thought the same exercise in 2016 and I decided to try a different brand. I have a Mazda CX-5 which is not siapointing so far (except a day time running light)
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Don C
Date: February 03, 2020 08:51PM
Bought the 2004 Nissan Quest new and it is still running well. No idea how many miles are actually on it because the digital odometer is unreadable but it is well over 100,000. Drivers seat does not heat and the tailgate doesn't always lift on command but we have no plans to replace it. Amortizes pretty well when you keep it that long.

The other one is a 2009 MINI Clubman with over 100,000 and so far no signs of failing (which could be kiss of death, of course).


Do get new car envy sometimes, but no payments is awfully nice.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: davester
Date: February 03, 2020 09:31PM
The bread-and-butter good reputation vehicles like Honda Odysseys, Toyota Camrys, etc hold their value so don't depreciate much since people are willing to pay a premium. However, for less popular cars or for luxury vehicles, buying new is typically like throwing $20,000 into the toilet because they literally do drop by $10k or more the second you drive them off the lot. I like the higher end cars so I always buy them slightly used. My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: space-time
Date: February 03, 2020 09:44PM
Quote
davester
... My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.

That is very, very nice. How long was the remains warranty? was it 4 years (and remaining 80 k miles)?
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: jdc
Date: February 03, 2020 09:51PM
Quote
davester
I like the higher end cars so I always buy them slightly used. My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.

They have BMWs all over carmax like that.

Wife got a 2016 S60 with 19K for $19K. Its a sweet ride. Feels and looks nearly new. Looks *identical* to a 2019.

Seats are like warm butter, could sit in them for hours. Zippy fast, 36 on the highway, kickin stereo.

She works 1 minute away and has put little miles on it...



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: davester
Date: February 03, 2020 09:58PM
Quote
space-time
Quote
davester
... My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.

That is very, very nice. How long was the remains warranty? was it 4 years (and remaining 80 k miles)?

Since it was a CPO warranty it was 4 years or the remaining 80k miles. I didn't drive that far in the 4 years so I ran out the 4 years. Still have the car, long since ran out of warranty and I still only have 70k miles on it. We made a life decision many years ago not to live a long way from work to avoid commuting so we don't put many miles on our cars.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: mattkime
Date: February 03, 2020 10:49PM
Quote
davester
The bread-and-butter good reputation vehicles like Honda Odysseys, Toyota Camrys, etc hold their value so don't depreciate much since people are willing to pay a premium. However, for less popular cars or for luxury vehicles, buying new is typically like throwing $20,000 into the toilet because they literally do drop by $10k or more the second you drive them off the lot. I like the higher end cars so I always buy them slightly used. My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.

Sedan or coupe, right? I just played another round of 'could I get a fancier wagon for a good price?' The answer is always the same - no!
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Carm
Date: February 04, 2020 03:17AM
Quote
vision63
Just buy what you want.
Words to live by.
Dave Ramsey doesn’t always give good advice. Some people live by his word. I find faults but don’t say anything to my SIL or a friend who follow most of his advice except the % of paycheck to church.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: RecipeForDisaster
Date: February 04, 2020 05:44AM
Ditto for us... last new vehicle purchase (2008!) we planned to get a used Tacoma. The prices on these things were so high, we were floored. With a new one, we ordered what we wanted and actually paid LESS than one 1-3 years old due to smart timing and haggling. If you could get a decent deal on a late model vehicle, buying used would make a lot of sense.

My other truck is 20 years old now - I think I got it in 2007. That was purchased used with 70k miles on it. I wouldn’t say we got a good deal, but it was further away from new pricing and fit the bill.

It’s hard to watch that instant depreciation, but it’s nice to order the features you want in a new vehicle. We keep these Toyotas until it’s unwise to fix them. My old truck is still doing very well.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: Michael
Date: February 04, 2020 05:56AM
I buy new based on 2 criteria: 1. reliability, and 2. resale value. I'm typically surprised/pleased at how much they are worth when I buy a new one.

My biggest surprise was in 2011 when somebody rear-ended my in my 2005 Ford Ranger and totaled the truck. I had paid $14,000 for it in 2005 and got $8,000 from the insurance company without any sort of negotiation on my part. So, it essentially depreciated $1000 a year. That's with me putting 20,000 miles per year on my truck, at the time. By the way, the reliability issue always had a asterisk for the Ranger. It was always going to need 2 repairs that totaled $500-800. I owned 5 Rangers over the years and that just always happened. Right now I own a Tacoma that's been problem-free for 4 years. Fingers crossed since it's out of warranty.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: modelamac
Date: February 04, 2020 08:01AM
Not if you treat it like a consumable. You spend at least $40k in food over 7 years, and there is nothing left of that money in the end. With a car, you at least have scrap value, and if lucky, you might get $500+ for it. You have had the use of that product for 7 years, the same as the food.

The statement "The road to riches is this simple: Drive a crappy car" is nonsense, no matter who said it first.

Quote
Buck
"The road to riches is this simple: Drive a crappy car"

That may not be everything, but a good start. This analyst probably listens to Dave Ramsey.
I'm glad my cars are paid for, and not crappy. Yet.

[www.marketwatch.com]

"Unless you are driving a Ferrari, a car is not an investment. A car is basically a huge waste of money.

Where else can you take $40,000 and set it on fire in seven years? And pay a bunch of interest to the bank in the process? What a disaster.

Funny thing about cars — people’s egos are really tied up in the brand of the car. People like to say they drive a “Benz” or a “Beamer.” Puke. I drive a Toyota TM, +0.28%. They never break down, and they last forever. They’re a great car to own that is paid for."



Mr. Curmudgeon, on several OSes and an ego trip.
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: davester
Date: February 04, 2020 09:52AM
Quote
mattkime
Quote
davester
The bread-and-butter good reputation vehicles like Honda Odysseys, Toyota Camrys, etc hold their value so don't depreciate much since people are willing to pay a premium. However, for less popular cars or for luxury vehicles, buying new is typically like throwing $20,000 into the toilet because they literally do drop by $10k or more the second you drive them off the lot. I like the higher end cars so I always buy them slightly used. My best deal was buying a 3 year old fairly high end BMW with only 20k miles on it, a 100k mile CPO warranty, for $20k, approximately $30k less than the sticker and with a better warranty to boot.

Sedan or coupe, right? I just played another round of 'could I get a fancier wagon for a good price?' The answer is always the same - no!

Nope. Four-seat convertible. I have no interest in owning a car with a roof. Unfortunately, there are hardly any choices in the US if you want more than two seats and a removable roof. BMW, Mustang, Mercedes were about it when I got that car. There are a couple more now (Volvo, VW) but I wouldn't want either of them.



"In science it often happens that scientists say, 'You know that's a really good argument; my position is mistaken,' and then they would actually change their minds and you never hear that old view from them again. They really do it. It doesn't happen as often as it should, because scientists are human and change is sometimes painful. But it happens every day. I cannot recall the last time something like that happened in politics or religion." (1987) -- Carl Sagan
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: archipirata
Date: February 04, 2020 10:57AM




Athens, OH
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Re: Speaking of expensive cars: "Buying new cars is like taking $40,000 and setting it on fire"
Posted by: JPK
Date: February 04, 2020 11:17AM
I just sold my trusty Chevy Avalanche today. Bought new for over $50k in 2007. Served me very well for over 150k miles. Sold it to a co-worker for $4k today. He will probably drive it for another 100k miles.

New car is a 2013 Mercedes with 70k miles that stickered at almost $90k. I am picking it up tonight for just under $20k.

I plan on driving it for 2 years - then buy a Ford Raptor!

JPK
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