Buying a new car is always a bad decision – financially. It doesn’t matter which brand or make or model. You will always lose money.
It’s just a question of how much.
All new cars bleed value like the Titanic took on water after it hit the iceberg. Even the least-“leaky” ones, from brands with high resale value – Toyotas and Hondas, for instance.
Both make great cars – reliable, well-built, etc. But that’s not the issue.
Even the cars which depreciate less horribly than others – those Toyotas and Hondas – still lose about 20 percent of their value during the first 12 months you own them. If you buy a new car for $35,000 – which is the average price paid for a new car – you can expect to take a $7,000 haircut on the car during that first year.
Not counting the additional money you spent on full coverage insurance (based on the replacement cost of a new car) and property taxes, in states/counties that get into your pocket that way, too.
After six or seven years, that $35,000-when-new car will probably have lost about half its value, $17,500. That’s not a haircut.
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14 comments:
Leave it up to you to buy a $35,000 and up car.Leasing has come full circle.I pay $200 per month for a lease and return my car every 3 years for a new one.12,000 miles per year is easy for me to limit myself to.
you lose 20% of the value just driving it off the lot.
I bought a new car once, in 1973. I learned my lesson early.
Everyone wastes money on something. Cars, alcohol, designer clothing, eating out, expensive vacations, cigarettes, boats, whatever. Find what makes you happy and leave everyone else alone.
My last 2 cars have been new. A 2013 Ford Fiesta (so far new tires and a radio issue) and a 1997 Geo Metro. Both were/will be run until they fall apart. $200/ month for the Metro, $300/month (for 6 years) for the Fiesta. Yes, I might have gotten a better "deal" for a used car but I wouldn't have gotten the car I wanted. Manual transmission, crank windows, and an FM radio. Plus what difference is the resale price if you never plan on reselling it? I don't get "replacement value" insurance. I just make sure I can afford to swallow it if something should happen in those first few years. It's called savings. As soon as the car is paid I'll dump the comprehensive (around $100 for 6 months).
It all a bunch of BS. Right now the used car lots are FULL of flood cars from the last couple of years. Article after article admits they lose track of those that are supposed to go to demolition.
Its a crap shoot either way but I would rather buy new, have a 3 year warranty and the Lemon Law to cover my behind.
I lemoned a new Jeep a few years back. Worst vehicle and the dealership was also worthless in resolving the repair issue. Can't do that with a used piece of crap that you would now be stuck with and have to lose money pawning your problem off on someone else.
This is just more MSM propaganda to lift up the failing used car industry.
buy a new honda every 10 years well worth it then getting some others piece of junk
So let me get this right...you pay 500$ a month for two rolling crap boxes...I’ve got some beach front property for sale in Kansas I’d love to sell you...those two cars aren’t worth the gas you put in them every week...
I would rather buy new, if I could afford it. The warranty is usually much better, plus you know exactly where the vehicle has been. Ever bought a car that was in a flood?
I buy new cars because I don't want someone else's hand-me-downs. Who knows what the actual condition of the used car is. Plus, with a new car I get a 3 year bumper to bumper warranty.
Used (certified) is a winner every time!
That $5,000 diamond ring you bought for her, when things go south, and they will, she can only get $35 for its for gold value. There is also those $500 designer shoes you got, after a week or two of walking around in them, they are worth $50 if you are lucky. There is that nice home you bought in Salisbury, close to downtown, you could walk there and shop, it is now surrounded by dumps, and crack houses, worth half of what you paid.
4:32 Aren't you a ray of sunshine? Your life must really suck to be so negative. Maybe that is why she left.....
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