Poll:Vehicle habits

[athena53]

Sure, but that doesn't mean it's the right move financially.

You've got a car you could sell for $5K because it's old, but doesn't have any problems. The next month the tranny goes out and it'd cost $2500 to replace. You might have to drop the price to $1k to sell that car with a bad transmission. So instead you shell out the $2.5K, but why sell it once it's running again. Hence, the spiral.

That's why I donated mine. I'd taken it to the dealership where DDIL used to work and they gave me the $3,500 repair estimate. I asked about trading it in on a new vehicle and they said the sales guy would get beck to me. He never did. That gave me a hint of the trade-in value! I'm sure I could have sold it privately for something even being honest about the issues, but it was cleaner to have Habitat for Humanity tow it away and I got a tax deduction.

 

[kgtest]

So far... X, none of the above. Financed SOME, paid cash for the rest on a new and a used vehicle...the portion we financed was 1.99% back in the day. Next time we might have enough to pay all cash. I think total we financed about $35k at 1.99% running in tandem for 3 years. They were 4 year loans and we paid them off a year early.

Now we are spending our dough on daycare. I like the new 2021 Suburban but at about 80k...no way, I don't like it that much.

I paid cash for vehicles that were "cheaper" when I was younger and my wife was able to buy her first "nice" car using some inheritance.

I still have my vehicle I took to the high school prom 22 years ago. It still actually produces income for me believe it or not. Been through a lot, can't even tell how many miles are on it after replacing the dash 3x I gave up.

 

[Out_the_Door]

(1) PAY CASH for a NEW vehicle and drive it into the ground (not worried about resale of trade in value)


I'm only on my second car. But the first was bought new, kept for 13 years and I am in year 6 of my second car. I expect this one to last longer as I'm not doing the 70 miles round trip to work and back that I did with my first car.

 

[Teacher Terry]

O2BFree, I assume if someone is buying a car for around 1k or less they probably don’t have a lot of money. The last car was a Saturn with a BB of 1500. I listed it for 1100 and sold it in 30 minutes to a middle aged woman needing it for work. I suppose someone with money could be buying it for their kid but it’s never happened. The first person with the money takes it. I doubt that I will be selling any more as my 2008 Toyota Corolla only has 60k miles on it. Probably last one for me.

 

[O2Bfree]

^^That makes sense. I have a used car currently listed for $10,500, so I doubt if any really low income people would be interested. Very decent cars can be had for much less.

 

[Sunset]

O2BFree, I assume if someone is buying a car for around 1k or less they probably don’t have a lot of money. The last car was a Saturn with a BB of 1500. I listed it for 1100 and sold it in 30 minutes to a middle aged woman needing it for work. I suppose someone with money could be buying it for their kid but it’s never happened. The first person with the money takes it. I doubt that I will be selling any more as my 2008 Toyota Corolla only has 60k miles on it. Probably last one for me.

I sold my 12 yr old Sonata to a fellow for ~$1,200 , he had brought his "son" with him, who sat in the fellow's car the entire time.
It was to be for his son, to go to College.
I let him talk me down $100 because of his needs for his "son".

The next day I saw my car for sale again for $3,500 on craigslist. The fellow had peeled off the LS and lied saying it was a GLS.

So not all people looking for cheap cars that run are nice and decent.

 

[beowulf]

That’s really sad. But there are shysters everywhere. You tried to do the right thing. You aren’t responsible for what other people do after the sale. I’ve done the same thing, but I don’t care what they do after the sale. Two things I always insist on - cash payment and a signed legal disclosure that the car is sold in as-is condition with no warranty given or implied. I once sold a well used car that I had bought used and kept for 6 years for $800. One person who came by to look wanted me to finance it. Yeah, sure. Like I said cash and carry. Now I donate old cars to charities that refurbish them a bit and give them to people who need them.

 

[brett]

We are the exception on our street. Mostly late model Lexus, Acura, Mercedes, and a few Caddies. In most cases there are 2 of that assortment in each garage.

Us, and the folks up the street with the Olds are the exceptions.

All retired/retired early.

But not one Buick to my knowledge!

 

[doneat54]

(5) PAY CASH for only USED vehicles because I want someone else to take the big depreciation.

Have never bought a brand new car, have never had a "car payment". Lately prefer 1-3 year old cars. Usually keep them as long as they meet my needs and until they start having mechanical issues.

 

[doneat54]

I'll add that 10-15 or so years ago, I used buy 5-7 year old cars from private sellers only. One owners with maintenance records if possible. Maybe 43k-$6k cars. I do almost all my own maintenance, have 3 antique cars I work on too, so I am pretty good at finding cars that are without issues.

More recently we have been buying newer cars, and unfortunately have to deal with stealerships which I almost universally hate.

But at the present time I am in a "phase" dealing with 120k mi plus cars. My '08 plow truck which is starting to cost me money and a car that my wife nicknamed "sh!tbox" that I bought Nov '19. It's an '02 Ford Taurus wagon that I paid $1300 for and have put 13k miles on it since then. I bought some new headlights for it an had to replace the coolant reservoir. I keep a spreadsheet of every penny that I put into it and, including tax, title and registration, am up to like $1820. I hike every day pretty much with our two dogs so it gets pretty dirty. At this point it is more of a challenge of just how far I can keep it running. And there is some upside to driving a POS car, not worrying about dings, where you park it, throwing all kinds of crap in the back. And I chuckle at myself sometimes, knowing I fit that "Millionaire Next Door" profile.

I do plan on selling the plow truck in the spring and getting a 1-3 year old SUV, like a Cherokee or Highlander.

 

[rk911]

I sold my 12 yr old Sonata to a fellow for ~$1,200 , he had brought his "son" with him, who sat in the fellow's car the entire time.
It was to be for his son, to go to College.
I let him talk me down $100 because of his needs for his "son".

The next day I saw my car for sale again for $3,500 on craigslist. The fellow had peeled off the LS and lied saying it was a GLS.

So not all people looking for cheap cars that run are nice and decent.

+1. in 2003 we sold our 13-yr old minivan for $1500. guy said it was for his daughter. when he comes to the house with the cash he asks me not to sign the title. no deal, i say. if he wants the car then i sign the title. he thinks and then agrees. for his daughter, huh? hah!

 

[Global Wizzo]

I’ll keep them until the mx costs get stupid. Really like my 2014 E350, but the 50K minivan bought new for 35K depreciated over 15K in a year. Never worth buying new unless you are planning to keep long term or you just like burning cash. MHO.

 

[Pointby2]

2017 - Financed a new vehicle (for DW), but quickly paid it off. Still have it. VW GTI.

2016 - Paid cash for a new vehicle, still have it. Focus RS.

2014 - Financed a VW Diesel Wagon (For DW), paid it off quickly. Would still have it but they all got recalled. This was going to be her "forever" car.

2009 - Paid cash for a new vehicle (DW), kept it 8 years. Porsche GT3.

2007 - Paid cash for a used vehicle, kept it 7 years. Toyota Tundra.

2007 - Paid cash for a used vehicle, kept it 2 years. E36 M3.


Not much of a pattern there, except I prefer to pay cash and like fun cars.

 

[leftcoastjayhawk]

I sure wish I could vote for #7!

My standard is buy new or late model used, with cash, and keep for a minimum of 10 years or 200,000 miles, whichever comes last. And so far the kids are following at least the 10 year rule for their own cars.

We did sell the 1968 Toyota Celica in 1987 at only 140,000 miles, because of the birth of child #3. The Celica only had 4 seats, and the older daughters objected to being "double belted" into a single seat for all family outings. They had to suffer for a month until we bought a Dodge Minivan. It was somewhat roomier... (Tip: never take "double belted" children with you to the dealership when negotiating for a bigger car.)

I do still have the 1973 Datsun 240Z that I bought new. It only has 188,000 miles on it, so obviously I cannot sell that yet!

"Maintenance" costs are climbing on that 240Z though, since I just spent several times the original sticker price restoring/fixing it up. I think that officially makes it a "hobby", not a car.

 

[piccolopat]

I've financed vehicles in the past but for my last two, we decided to lease. We did this for two reasons: the cost to lease was extremely competitive and it was a new brand/vehicle type that we wanted to try out before buying. Our plan was to buy the cars outright at the end of the lease if we liked them or turn them in if we didn't. We ended up liking and bought them out. We've always held onto our cars for many years with the oldest having been 15 and 17 years before they died and plan to do the same with these. We may replace the older of our two current vehicles (only 10 years old but low mileage) earlier than that if our daughter needs to replace one of hers. If we do that, we'll again look at lease cost to see if it makes sense to do that again and keep our money invested for 3 years. If not, we'll just buy it cash.

 

[winyaz]

I generally pay cash and drive it until the estimated repair/maintenance is more than the value of the car. My last car I tried to go beyond that and I regretted it. In theory it was more cost effective to do the repairs/maintenance rather than buy a new car, but every few months something else was needed and it kept adding up. Now I may get rid of my current one after 100K miles, before the maintenance and repairs start piling up.

 

[dcrambler]

Pay cash for 4 year old nice cars and get them for 40-50% of sticker and then drive for 6-8 years. Makes the most financial sense to me by far. Still get a great car with low mileage (15-35K) and pay half or less. Take the difference in new and invest.

 

[Out-to-Lunch]

(Tip: never take "double belted" children with you to the dealership when negotiating for a bigger car.)

Excellent comment!

We (honestly and with no embellishment) used to drive with 9 people in a VW bug. If only it had seatbelts to do double-belting!

And I would love to have your original Z.

 

[ivinsfan]

Pay cash for 4 year old nice cars and get them for 40-50% of sticker and then drive for 6-8 years. Makes the most financial sense to me by far. Still get a great car with low mileage (15-35K) and pay half or less. Take the difference in new and invest.

Would you mind sharing how you pull this off in the real world. Cause I am not seeing that large of a discount on slightly used cars. For example do you look for a certain brand or type of car to make this happen?

We just traded off a car we drove for 8 years, got a very fair offer from the dealership. That car has already been turned over..It had around 100K and needed new tires...looks like it sold for about a 55-60% discount off the original purchase price...now sticker price is not always purchase price.

 

[doneat54]

Would you mind sharing how you pull this off in the real world. Cause I am not seeing that large of a discount on slightly used cars. For example do you look for a certain brand or type of car to make this happen?

It depends on the models you are buying, not true across the board. For the popular reliable stuff (Honda and Toyota sedans for example), resell is higher and you can get that much off for a fairly new car. Both other models, that are just less poplar but still good cars you can. We bought Volkswagen CCs, a '12 and a '13, when they each were 2+ years old, for just about exactly half of sticker when new. Still have one of them.

Pickup trucks, forget it, their values stay up for a long time.

 

[atintera]

Buy Used, and only a few years old!

#5 for me. After reading Dave Ramsey's Total Money Makeover book, I realized one of the biggest mistakes I had made in looking back was my car buying habits. I had started with new cars and loans, and only once paid off the loan before trading in. Over time, I had put soooo much $ into the cars on average each year. Since then, I paid off all debt in only 3 years, and have since only bought cars with cash. Never regretted it and is way more fun. If you like newer cars, just buy one that is 2-3 years old! It will be a lease return and in excellent shape for nearly new feel yet save you lots.

Also - unless physical reasons prevent it, consider doing our own oil changes and even brakes. Both are very easy and don't require lots of knowledge or investment. Over time, that saves a substantive amount of $ and provides a DIY hobby!

 

[Ctarborist]

I prefer 5. DW prefers 1.

 

[indiajust]

only two purchases, both new vw's. stumbled into 2 well worn old trucks. still have second vw and second truck. 94 mazda and 98 jetta. just not ready for the 2000's yet.

 

[Markola]

Mostly 1 and 5. We tend to buy 2-3 year old certified cars and max the warranty, then keep them 10-15 years.

 

[ragabnh]

I am a car guy, bought and sold 7 cars since 2014, all used except one, payed cash and traded all for other ones. I don't like leasing.

Most expensive was $100k Porsche 911 and the least expensive was $14k for a used Toyota Tacoma truck which I needed for some construction work and sold after one year.