Why you should save instead of spend!

[laurence]

Except if you're in the market for a luxury car. A Porche Carrera can be found for 30-40k below new price with only 20k miles on it. Obviously, we've left the world of LBYM far behind at that point....

 

[maddythebeagle]

Cars used to depreciate a lot in the first 3-4 years because after that time they really started falling apart. These days though good cars are much more reliable and don't really start falling apart until 10-15 years.

For japanese cars, I no longer see much value in buying a 2-3 year old used car over buying new. The price of the used car is so close to the new car that the new car often makes sense because you eliminate the possibility of getting a poorly treated vehicle.

I think saving money these days comes down to buying less luxury or buying a used car 4-5 years old.

Thanks for the explanation. I have been thinking about this one for awhile. I have been taught in my family to buy new and keep it until it no longer is worth repairing (run into the ground). Seems like with new safety features and u.s. car companies hurting for business, new might be the way to go.

 

[HFWR]

Porsche Carrera... Isn't she a porn star?

 

[Jay_Gatsby]

I agree ... seems that everyone is asking for absolutely top dollar for used car ... so that new seems the better deal

I've noticed that trend as well.  Why would I want to pay someone for a car with 30k miles on it when a brand new car will only cost me another $2k more?  They've used up 2 of the 3 years of warranty, probably driven the car rougher than I would, failed to change the oil on time, failed to get regular maintenance done (e.g., tire rotation, alignments, etc...) and just overall abused something that cost them over $20k brand new.  I don't know about you, but if I spend $20k on something, you bet I'd take care of it!

 

[shorttimer]

I drive a standard Honda. When we bought it in 1999 new, I shopped around to several dealers, both Toyota and Honda and sat back and waited for a good deal. I had no trade in (gave 1988 Honda to son graduating from college) and was going to pay cash. I don't think I could have gotten a used car cheaper than the deal I made. Since then, DH is nuts about oil changes etc. He does as much maintenance as possible, but we also bring to dealer on the recommended miles until the warranty runs out.

Some of my coworkers ask me when I am going to get a new car ( I probably have the cheapest valued car in the parking lot.) Wait till I drive away for good in a few weeks. I don't think they will get the connection between no car loans and one of the reasons for being able to retire early.

 

[HFWR]

Drove my '92 Chev PU for eight years, about 115k mi. Have had my '00 Chev PU for six years, currently at 64k mi. Intend to drive it another few years, then buy a gas miser for everyday driving, but keep the PU for, well, a PU...

 

[BUM]

OR you could have leased a BMW, been out only $500 cash for first months payment, then you would have an extra $19K in your account + whatever three weeks growth would have been. BMW's lease programs are running at about 2.4% interest right now. Should be able to beat that in a MM account.

Ummm...lease bad...buy good...

 

[getoutearly]

Incidentally, I just had the 60k tune-up done, and it was amazing how much of a difference it made.  Runs smoother, gets better gas mileage, slightly better acceleration, etc.

What, you waited too long to get the tune up and were therefore burning more gas than you could have been?  I guess, by your own definition, you were just being an unAmerican SOB eh?  hypocrit

 

[gtmeouttahere]

Love my PAID FOR A LONG TIME AGO IN CASH 1996 Honda Accord (Purchased in 2000 with more than 100,000 miles on it)with 200,000+ miles on it now.  It'sa CHAMP and runs like a top with good gas mileage.  My son had a BMW that drove him to the poor house with maintenance.  He told me next time he'll listen to his mom.  There has to be a first time for everything!!!!! 

I've also got a 96 Honda Accord. Has 87,000 miles on it and not a problem. Bought it used in 98 with 11,000 miles on it for about $13,000. Its still worth about $6500. I will keep it till it drops which may be a while.

Also had a 94 Accord and that went up to 325,000 miles without any major repairs. Then my sister totaled it. Who knows how much more we could have sucked out of it?

Just bought a Honda Pilot and absolutely love it. It will be on the road a long time.

I don't think I'll get off the Honda kick ever or at least until someone proves me wrong that it isn't one of the best values on the road.

I should've been a Honda salesmen. Grandpa always said I could sell ice cubes to eskimo's. 8) But seriously these figures speak for themselves and I have never heard a bad Honda story. If you want to keep a vehicle forever, buy a Honda.

 

[mathjak107]

im taking a lease next week on a bmwx3....great deal on it,actually cheaper to lease it for 4 yrs than to try to buy it and sell it after 4 years or so...i like new cars every 3-4 years so leasing is usually cheaper for me....of course if you keep the car long term nothing beats buying it but at this point we are still working and enjoy new cars as well as the reliability factor ....the thing that makes me crack up is those that argue that leasing is bad and then they go and negotiate the best deal they can on a car,then after 3-4 years when the vehicles most reliable days are usually behind it they trade the car in to the dealer at the low wholesale price anyway...yeah big savings there ha ha ha

 

[mathjak107]

I've noticed that trend as well.  Why would I want to pay someone for a car with 30k miles on it when a brand new car will only cost me another $2k more?  They've used up 2 of the 3 years of warranty, probably driven the car rougher than I would, failed to change the oil on time, failed to get regular maintenance done (e.g., tire rotation, alignments, etc...) and just overall abused something that cost them over $20k brand new.  I don't know about you, but if I spend $20k on something, you bet I'd take care of it!

i agree ,the problem is car prices have not been going up much at all killing resale value on alot of vehicles...my nissan xterra which is a 2002 is worth far less today than the lease figured residual value at because the new ones are only up about 2,000  more.in fact if i bought the truck instead of leased itand was trying to trade it back in id gotten killed..i could have bought my truck out at the lease end for 13,500 which i was going to do..then i figured 1500 for the warranty,,,new tires,,60,000 mile service,,a new battary,brakes , sales tax on everything ,a timing belt change in another 15,000 miles...........needless to say back it goes and for 349.00 a month im taking a new bmw x3 instead......

 

[free4now]

....the thing that makes me crack up is those that argue that leasing is bad and then they go and negotiate the best deal they can on a car,then after 3-4 years when the vehicles most reliable days are usually behind it they trade the car in to the dealer at the low wholesale price anyway...yeah big savings there   ha ha ha

In most cases the buyer would be ahead in that situation. The complicated way lease prices are calculated allows the dealer to take advantage of people without them even noticing. More importantly the lease makes negotiating very dificult or impossible. When you buy you negotiate one number, the bottom line (well maybe an interest rate too if you finance). When you lease you are typically stuck with the residuals, buyback prices, and finance charges the dealer quotes. Do you know what interest rate you are paying in your x3 lease agreement without pulling out the agreement?

 

[brewer12345]

What, you waited too long to get the tune up and were therefore burning more gas than you could have been?  I guess, by your own definition, you were just being an unAmerican SOB eh?  hypocrit

Actually, I had the 60k servivce done a little early, since it was more convenient that way and the car was not running quite as well as I thought it should. But thanks for your concern. O0

 

[mathjak107]

In most cases the buyer would be ahead in that situation.  The complicated way lease prices are calculated allows the dealer to take advantage of people without them even noticing.   More importantly the lease makes negotiating very dificult or impossible.  When you buy you negotiate one number, the bottom line (well maybe an interest rate too if you finance).  When you lease you are typically stuck with the residuals, buyback prices, and finance charges the dealer quotes.   Do you know what interest rate you are paying in your x3 lease agreement without pulling out the agreement?

probley wouldnt matter what the rate is ,its the overall lease payment that counts..but i bet take the cost of a lease for 4 years,then take the cost of buying and trading in the vehicle at the end of 4 years at the wholesale price....i bet you will be very surprised which cost less overall

 

[lazygood4nothinbum]

the only thing that bugs me about a 4-year lease is if it is on a car with a 3-year warranty. if so, i'd have to factor in the cost of an extended warranty, or take the car for 3 years at a higher rate. imagine replacing the engine on a lease. ouch.

 

[youbet]

I find the definition of "tune up" on modern cars interesting.  Generally it means changing the plugs and some filters and closing the hood.  There really isn't anything for the mechanic to "fine tune" or adjust.  DW still thinks the mechanic goes over her car with a fine tooth comb, tweaking this and that, when she brings it in for a "tune up."  Ha!  They change the plugs and filters, look at some high profit wear parts for opportunites to do some additional work, and close the hood spending as little time as possible.

I always "tuned" my own cars when that meant changing points and plugs, setting timing and dwell, etc.  It was labor intensive, needed to be done frequently and you could save a bundle doing it yourself with inexpensive tools and gauges.   Then, pollution control do-dads were added under the hood and the job got tough so I stopped.  Now, there isn't much involved in doing a 'tune up" so I'm back to doing them myself again.  Of course, none of my current fleet has hard to reach plugs or filters and that helps.  Admittedly, I'm beyond the days of crawling on top of engines to reach plugs up against the firewall, etc.

Cars are indeed much more reliable these days.  Thank goodness.

 

[73ss454]

probley wouldnt matter what the rate is ,its the overall lease payment that counts..but i bet take the cost of a lease for 4 years,then take the cost of buying and trading in the vehicle at the end of 4 years at the wholesale price....i bet you will be very surprised which cost less overall

The manufactures will always make leasing cheaper for the person who's going to get out of their cars every 3 or 4 years.
Can you guess the reason why they do that?

I know their just nice people!

 

[bbuzzard]

While this thead is interesting, my point was that I would rather purchase my cheap car with the work done by my investments rather than an expensive car purchased by the sweat of my brow. It is like having an employee who works for free without whining. Of course, that's just me.

OTOH, the downside is that I lost a car in yesterday's market. Grin and bear it.

 

[free4now]

probley wouldnt matter what the rate is ,its the overall lease payment that counts..but i bet take the cost of a lease for 4 years,then take the cost of buying and trading in the vehicle at the end of 4 years at the wholesale price....i bet you will be very surprised which cost less overall

So you're a monthly payment buyer, eh? Step into my office... we will take care of you!

 

[mathjak107]

the only thing that bugs me about a 4-year lease is if it is on a car with a 3-year warranty. if so, i'd have to factor in the cost of an extended warranty, or take the car for 3 years at a higher rate. imagine replacing the engine on a lease. ouch.

my current leases were a 4 yr factory warranty otherwise your right...in fact with my new bmw x3 lease even maintaince is covered for 4 years.i pay nothing even for wind shield wipers...
   i just find that after 4 years or so cars today are much more problematic than even just a few years ago..after the just put oil in my maxima for 200,000 miles of the 90's the manufacturers realized they were putting themselves out of business.....and so there is a definite difference in longevity of parts according to jd powers and my own ownerships...thats not to say if you keep a car many years the costs of repairs will make it a worse deal than trading it in every 4years  but the reliability factor drops big time and that to me is worth alot.... my last few nissans and my volvo were great for the first 3-4 years.then ownership became problematic...in fact id venture to say that in the 8 years i kept my well maintained volvo the only thing i didnt replace was the glove compartment door!

 

[thefed]

Bought a used 80 Ford in 83, drove it to work for 25 years.
Joe

Something ain't right about that math.......

 

[thefed]

i just find that after 4 years or so cars today are much more problematic than even just a few years ago..after the just put oil in my maxima for 200,000 miles of the 90's the manufacturers realized they were putting themselves out of business.....

I'm proudly sporting a maxima of the 90's. A 98 max with what has been rated the most reliable motor for 10 straight years.

It has 80k miles, and a few suspension problems (comes with any car)...but that's it. I plan on putting 200k on it. SO, living 4 miles from work....I might have it in 2020!!!

 

[laurence]

my current leases were a 4 yr factory warranty otherwise your right...in fact with my new bmw x3 lease even maintaince is covered for 4 years.i pay nothing even for wind shield wipers...
   i just find that after 4 years or so cars today are much more problematic than even just a few years ago..after the just put oil in my maxima for 200,000 miles of the 90's the manufacturers realized they were putting themselves out of business.....and so there is a definite difference in longevity of parts according to jd powers and my own ownerships...thats not to say if you keep a car many years the costs of repairs will make it a worse deal than trading it in every 4years  but the reliability factor drops big time and that to me is worth alot.... my last few nissans and my volvo were great for the first 3-4 years.then ownership became problematic...in fact id venture to say that in the 8 years i kept my well maintained volvo the only thing i didnt replace was the glove compartment door!

We're just going to have to agree to disagree on this one, some cars are lemons, but no manufacturer is going to destroy their reputation to go back to "planned obsolescence". There are a thousand senior term business papers out there on where that took the big 3 auto makers. You've got plenty of people on this board who have kept cars for a decade or more with very few problems.

Just say, I like new cars, it's what I want to spend my money on NYFB, and it's all good! I have a love affair with cars too, brother!

 

[mathjak107]

the problem with the big 3 was their quality sucked when the cars were new...my nissans were very reliable for the first 36,000 miles or so..i dont think its a coincidence the alternator on my altima failed at 37,000 and on the quest at 39,000.....
you see we were led to be believe that japanese cars were long lasting and trouble free based on earlier products we owned...when the first alternator failed i chaulked it up to bad luck and an isolated inceident....when the 2nd one went im like hey whats up here...after visiting some nissan websites and everyone chiming in we all realize that almost none of has that trouble free performance we had from earlier cars we owned...jd powers wrote an article a few years ago about the very subject..parts were re-designed to be trouble free for just so many years and then creat business............

 

[laurence]

You'll have to cite a source for me. My extended family has owned Hondas, Nissans, Infinitis, and Toyotas from model year '79, '83, '95, '97, '99, '01, '03, '05. All except the '79 cvcc are still on the road, that car was "traded in" running just fine for a '95 Honda Accord Hybrid. Everyone has loved their Accords, Altimas, etc. No problems.

If you look at consumer reports, Accords and Camrys always top the list. There really hasn't been a degradation in quality. Now other manufacturers have to raise their game to try and compete, thus the 7 year 100k warranties.