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View Poll Results: What is your usual vehicle buying habit?
PAY CASH for a NEW vehicle and drive it into the ground (not worried about resale of trade in value). 156 45.75%
FINANCE a NEW vehicle and drive it into the ground (not worried about resale of trade in value). 32 9.38%
PAY CASH for a NEW vehicle, but TRADE every few years while it still has value. 32 9.38%
FINANCE a NEW vehicle, but trade every few years while it still has value. 4 1.17%
PAY CASH for only USED vehicles because I want someone else to take the big depreciation. 101 29.62%
FINANCE only USED vehicles because I want someone else to take the big depreciation. 11 3.23%
I LEASE vehicles (either personal or through a business). 5 1.47%
I only purchase my cars at the Pebble Beach Concours d'Elegance, and my CPA worries about the details. 0 0%
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Old 01-19-2021, 09:27 AM   #121
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Mechanic probably slapped a $5 "spacer" on the downstream oxygen sensor and cleared all codes before re-selling it...that's what I did with one of my vehicles before getting rid of it (code is set when catalytic efficiency drops only slightly...IIRC, below 95%)

Well that's possible but he really is a very honest guy and said he had a complete catalytic converter from another Subaru he had that he was going to put on it. Regardless $2500 was more than I expected and the wife was ready for a new ride. When he told me he didn't make any money on it and in fact lost a little I believe him.
I actually replaced an O2 sensor myself earlier in it's life and I knew the trick about spacing out the sensor to fool the error codes but never did it. I know that the error codes for O2 sensors and catalytic issue are the same or similar but DW was basically ready to upgrade.
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Old 01-19-2021, 09:36 AM   #122
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I still have my 2002 F150 that has been paid for since 2010 (bought used in 2008) When I consider the amount I would have spent in outright cash or perhaps payments since it has been paid for, it just makes sense to continue to do this. We paid cash for a new Honda CRV in 2015 and we plan to drive it another 5 to 10 years before getting rid of it.
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Old 01-19-2021, 10:30 AM   #123
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There have been interesting threads on EVs. I’ve been wondering if it’s worth leasing one? I have a trusty ICE SUV but it’s got many years on it.
I recommend buying it outright if it's an EV. I'm not a fan of leasing in general but it might make sense with a gas car if the terms are good enough and you like driving new cars. Some analysts expect the value of used gas cars to plummet in coming years and leasing transfers that liability to the leasing company. I tend to agree with those analysts. Other analysts disagree but it very common for experts in any industry to not see major disruption to their industry until it's already happening.

I suspect many of those leasing companies might be going broke this decade. The problem they face is that if they listen to the analysts who are predicting a crash in the values of used gas cars, then leasing is not even a viable business anymore. So there is the temptation to only listen to those analysts who are telling them what they want to hear (that the cars powered by gasoline will retain value well).
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Old 01-19-2021, 10:49 AM   #124
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I've only bought one car so far, a 2015 Chevy Impala in early 2019. I was less than a year out of college, so I didn't really have the cash on hand even if I wanted to. I'll probably still finance mostly used cars going forward. I'd rather have the monthly payment than pay cash and miss out on any gains in the stock market. Whatever equity I have will be the down payment on trade in. I don't think I'll ever lease. I like being able to own my car and not have to worry about mileage limits, cash down payments, damage, etc.
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Old 01-19-2021, 10:49 AM   #125
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Everyone has to make their own choice, but it seems counterintuitive for people on an early retirement board to have a lease payment for the rest of their lives. Keeping a car until it’s no longer economical seems to be a far better fit for future or even current early retirees. The only two reasons I can come up with that justify a lease is the desire to have a new car every 3 years or so or the ability to deduct the payments as a business expense. If it’s not the latter, the former is a lifestyle choice, which is totally legitimate, albeit an expensive one. FYI, in my state, you have to pay the full sales when you lease a car, not the value for a turn in after 3 years. Other states allow proration. That means, where I am, I would have to pay the full tax on a new car every few years.

I agree that EVs are the way of the future - and the demise of gas vehicles within 15 to 20 years. But that gives us plenty of time to switch over.
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Old 01-19-2021, 10:59 AM   #126
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I have traditionally kept my vehicles for around 8 years. But now that we have Teslas Iím not sure what to expect. Teslas are sort of like IPhones. If the tech keeps getting better I suspect Iíll want to upgrade more frequently. I usually get a new Iphone every two years, but hopefully I wonít have to do that with our cars.
We bought two Tesla's new in 2018 and, thanks to free over-the-air software updates, they still feel new, both tech wise and we clean them so also paint and interior still looks and smells new.

We will be getting a new Cybertruck to replace our 2010 F-150 (bought in 2009) but I don't see why we be replacing either of our Model 3's anytime in the forseeable future. If anything, they are both better than the day we bought them. The number of useful features they have now that they didn't when purchased is significant. All free of charge.

Most of our lives both my wife and I bought used cars to save and invest for the future. But once we saw we had more than enough savings/investments to last as long as necessary, we started buying only new cars.

I say let your finances dictate.
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Old 01-19-2021, 12:30 PM   #127
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I've bought one vehicle since 1989. In 1989 I bought a new Toyota Tercel for $7000. In Jan 2011 I bought a 1997 Accord on craigslist for $3200.
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Old 01-19-2021, 01:27 PM   #128
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I understood your post perfectly. In your hypothetical, I would still sell the car before I would pay for a new transmission.
Granted, it's been a few years but when my 1994 Ford Ranger needed a new manual transmission, it set me back a whopping $400. That included a new tranny, clutch and installation. Oh, and I had well over 200K miles on the truck when I replaced it. That truck was pretty much bullet proof and the cheapest vehicle to work on I have ever owned.
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Old 01-19-2021, 01:32 PM   #129
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I don't think so. I doubt many of us would consider ourselves overly susceptible to dealer antics. Probably less so that the general population. Trade in value is negligible on most any car after 10 years. There's little left to haggle on once the car is only worth $5k. And carmax leveled that playing field years ago.

I think the reason most of us drive em till they are dead is more simple: Get ever last mile out of every dollar spent.
And now Carvana is pushing it further. We have sold 2 cars to Carvana and they paid quite a bit more for both of them than was offered by CarMax. As a matter of fact, I was able to sell my 2018 F-150 for more than I purchased it almost 2 years earlier...which I would have never believed could happen. Great timing and circumstances, for sure.
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Old 01-19-2021, 02:03 PM   #130
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I buy with cash and give it away to a family member when I'm ready for a new one, typically after 8 to 12 years.
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Old 01-19-2021, 02:08 PM   #131
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A combination of #1 and #2. I plan on paying cash but usually get a better price on the car by financing with the dealer. If the interest rate is above 1% I just pay it off, if not I'll make the payments.

We tend to keep them forever. Our 2005 Honda Odyssey and 2013 Honda Pilot are still going strong. We only drive about 5k miles/year.

DS16 will be getting his license soon an I'll probably let him drive the Pilot and get DW a new minivan and I'll take the old one. I keep thinking buying used is more financially prudent but when I price used vs. heavily negotiated new, the price difference is pretty negligible factoring in the additional age and miles of the used vehicle.
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Old 01-19-2021, 02:11 PM   #132
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There have been interesting threads on EVs. Iíve been wondering if itís worth leasing one? I have a trusty ICE SUV but itís got many years on it.
Based on my review of Tesla lease, it's not favorable lease terms. It was downright poor. That said, I want to look at the newer EV's, such Mach-E and ID.4 as they will have tax credits that can be applied (up to leaseholder to decide to pass along to you or not), so could be beneficial. Tesla never passed that along to the end consumer. Unknown as to how to value a 3 year old EV may keep this leasing from being a good option.
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Old 01-19-2021, 02:46 PM   #133
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I buy a new car when there is a need, keep it for a few years then either give it to family member or trade it when there is still value. Either pay cash or zero % interest financing if available.
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Old 01-19-2021, 05:33 PM   #134
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We typically have two vehicles, usually a minivan or small SUV, and a pickup truck. We kept the last minivan we had for 10 years (paid cash for it). We traded that one in for a small SUV (Honda CRV to tow behind the motorhome), and paid cash. That was 6 years ago, and we wonít be trading it for another several years. I traded my 2007 pickup for a 2013 because the trailer I needed to tow was too much for the 2007. Paid cash for the 2007, but financed the 2013 for the incredible deal, then paid it off a couple months later. Once we decided to trade the trailer for a motorhome, we didnít need the F-350 Superduty and traded down in 2017 for a Honda Ridgeline...the trade covered the entire cost of the Ridgeline. We drove the Ridgeline over 70k miles in two and a half years and had to use the extended warranty too many times for comfort, so when the warranty was about to expire, we traded for an F-150, and paid cash for the remainder. Off topic, but, Last week, we traded our motorhome in and downsized to a Sprinter based class C, and covered the excess with cash. The previous motorhome was six years old, but we had some problems with it and decided to downsize so we could take it into state parks that were inaccessible with the monster bus.
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Old 01-19-2021, 06:27 PM   #135
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In the past 17 years I have owned 2 used pickups and just bought a Model Y in June. DW had two new Wranglers over the past 20 years and just bought another new Wrangler Rubicon last year.

I also think it's somewhat resource related and for commuting what did I care? Parking spaces were too small and door dings common. Things like 4wd, decent seats and entertainment were most important than new. Today I figure might as well enjoy driving and have some unique vehicles while we appreciate them. I mean going 0-60mph in 3.5 seconds does not get old or less fun..
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Old 01-19-2021, 07:30 PM   #136
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How do you offload the car that requires costly repairs without making them though? You cant really sell it without a transmission, etc.. right?? SO you fix it to be able to sell it but at that point it drives fine. We get into this spiral at my housel
Our experience is that when the rods are knocking (on a car, bought new, but now with 360,000 miles), a truck with bad transmission (at 275,000 miles), or a sedan that has body damage greater than its bluebook value, you just call a junkyard and sell it for scrap. Easy peasy.
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Old 01-20-2021, 01:37 AM   #137
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I had a Ford Taurus, wifes car ex my company car. Some shifting noise.

Took it to a good transmission shop. When I went back a few days later the owner asked if we liked the car (we did not,,,,absolute pile of a rubbish car). Electonic transmission could go anytime.

We parked it. Shopped for a new Camry. Only drove it to the dealer to negotiate a trade it. Dumped it rather than put one dime into it. No doubt the dealer auctioned it out.
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Old 01-20-2021, 03:10 AM   #138
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When I was a poor student, I used to buy older vehicles cash and drive them until the wheels came off or until they couldn't pass the state inspection anymore. As a young professional, I financed a new vehicle and kept it 8 years (at which point it started to require costly repairs). As my wealth grew, I started buying new (non-luxury) vehicles cash, changing them every 4 years. For my last car, I bought a certified pre-owned luxury model cash and I plan to keep it until it becomes too costly to keep on the road. I'll probably go that route again for my next car.
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Old 01-20-2021, 07:42 AM   #139
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#5, Have never spent more than 6K on a used vehicle. If we do drive or travel on a long trip, say any thing over about 300 miles 1 way, we just rent a new vehicle from Avis or Hertz or some other rental place
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Old 01-20-2021, 07:51 AM   #140
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Based on my review of Tesla lease, it's not favorable lease terms. It was downright poor. That said, I want to look at the newer EV's, such Mach-E and ID.4 as they will have tax credits that can be applied (up to leaseholder to decide to pass along to you or not), so could be beneficial. Tesla never passed that along to the end consumer. Unknown as to how to value a 3 year old EV may keep this leasing from being a good option.
I agree that Tesla leasing numbers are terrible deals. OTOH, the Nissan Leaf has very good leasing available. Which is weird, since Teslas (esp Model 3 and presumably the Y) have strong resale value while the Leaf has terrible.
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