When your car needs $2000 of repairs, just remember...

[Devsman]

if it were a Chevrolet, it would need $2000 of repairs every month.

[kbiz]

Devsman a écrit :

kbiz a écrit :

People talk about the depreciation when you drive a new car off the lot, but they don't talk about the maintenance costs included in buying a used car.

If I understand my economics like I think I do, seems it should more or less even out. After all, you sell a car when it starts becoming too expensive to maintain, so the sale price would have to be a point of indifference on the depreciation/maintenance curve. That's of course assuming a lot of things are ideal when in practice they won't be.

Yes, it's total cost of ownership. Purchase price less sale price plus expenses. Simple equation.

I think you'll still spend a bit more if you buy a new car, but if you buy one with good resale value, you'll get the fun and satisfaction of driving something new. And the relative difference is not very significant if you average it over the life of ownership - five years.

Peace of mind has value too.

[Devsman]

kbiz a écrit :

Devsman a écrit :

If I understand my economics like I think I do, seems it should more or less even out. After all, you sell a car when it starts becoming too expensive to maintain, so the sale price would have to be a point of indifference on the depreciation/maintenance curve. That's of course assuming a lot of things are ideal when in practice they won't be.

Yes, it's total cost of ownership. Purchase price less sale price plus expenses. Simple equation.

I think you'll still spend a bit more if you buy a new car, but if you buy one with good resale value, you'll get the fun and satisfaction of driving something new. And the relative difference is not very significant if you average it over the life of ownership - five years.

Peace of mind has value too.

Usually the determining factor for me is financing. Most people don't realize just how expensive financing is.

Virtually any new car on the market, I would have to finance. But at this stage in my life, I can buy a decent enough used car in cash.

A quick Google search later, I find auto financing is actually not that bad. Looks like of the total money you pay for a car, on average you're somewhere around 11% interest. As in, if it's a $30k car, adding up all your payments should come to around $33300.

Way better than mortgages.

[kbiz]

Devsman a écrit :

kbiz a écrit :

Yes, it's total cost of ownership. Purchase price less sale price plus expenses. Simple equation.

I think you'll still spend a bit more if you buy a new car, but if you buy one with good resale value, you'll get the fun and satisfaction of driving something new. And the relative difference is not very significant if you average it over the life of ownership - five years.

Peace of mind has value too.

Usually the determining factor for me is financing. Most people don't realize just how expensive financing is.

Virtually any new car on the market, I would have to finance. But at this stage in my life, I can buy a decent enough used car in cash.

A quick Google search later, I find auto financing is actually not that bad. Looks like of the total money you pay for a car, on average you're somewhere around 11% interest. As in, if it's a $30k car, adding up all your payments should come to around $33300.

Way better than mortgages.

Never finance a depreciating asset. A car is the perfect example of that.

There are rent vs own calculators you can look at. Just compare it to 3.4% money market rates.

You have a good outlook given your situation. I would buy a used car with cash. It's better than financing. You need a car. Keep rolling that cash into each new car. Maybe throw another chunk in the next time - if little Devsman allows.

Remember, what the big print giveth, the small print taketh away. Anyway, that's my advice.

[Devsman]

kbiz a écrit :

Devsman a écrit :

Usually the determining factor for me is financing. Most people don't realize just how expensive financing is.

Virtually any new car on the market, I would have to finance. But at this stage in my life, I can buy a decent enough used car in cash.

A quick Google search later, I find auto financing is actually not that bad. Looks like of the total money you pay for a car, on average you're somewhere around 11% interest. As in, if it's a $30k car, adding up all your payments should come to around $33300.

Way better than mortgages.

Never finance a depreciating asset. A car is the perfect example of that.

There are rent vs own calculators you can look at. Just compare it to 3.4% money market rates.

You have a good outlook given your situation. I would buy a used car with cash. It's better than financing. You need a car. Keep rolling that cash into each new car. Maybe throw another chunk in the next time - if little Devsman allows.

Remember, what the big print giveth, the small print taketh away. Anyway, that's my advice.

Agreed.

[Tiberius]

Bahahaha... thats why i always avoid buying gm cars

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Devsman a écrit :

if it were a Chevrolet, it would need $2000 of repairs every month.

No that is ford. Since after all ford does stand for:

Fix
Or
Repair
Daily