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I used to think the same. We bought a new car 3 years ago with a financing which we still need to pay for 3 more years. However, we had to spend nearly $1000 on
by esalman 10y ago
I used to think the same. We bought a new car 3 years ago with a financing which we still need to pay for 3 more years. However, we had to spend nearly $1000 on a new set of tires and alignment recently, and now I'm thinking it is better to get another brand new car as soon as we get a deal from the manufacturer or the dealer.
- kayoone 10y agoWhy would that be better ? Deprecation of new cars in the first 3 years is crazy high, they loose 50% value in that time. Buying a new car every 3 years is one of the worst thing s you can do financially.
- massysett 10y agoBoring midsize cars do not depreciate nearly this much. A $22,000 Honda Accord depreciates only $10,500 over five years. Besides, they depreciate this much because those first years of car ownership are worth the most. The car is under warranty and is most trouble-free during the early years. People pay that much for the first years of car ownership because they get more utility from newer cars, not because they are suckers.
- ssharp 10y agoA lot of cars coming off lease these days that are two or three years old get certified by the dealer, which gives an extended warranty for the person buying the used car. That's a nice little bonus where you buy the car when it starts hitting linear depreciation and you still have a decent warranty.
- btian 10y agoI buy a new car every 2 years or so because it makes me happy. Money sitting in the bank earning no interest doesn't make me happy.
- buerkle 10y agoWhy is spending money on a new car better than $1000 on new tires? That's about three months worth of payments vs years of payments on a car.
- esalman 10y agoI guess it is a good deal if the residual value of the old car pays for the rest of the financing plus the down payment on the new car, and the monthly payment stays the same. Actually it is frustrating for us to have to spend this much on maintenance on a car which is just 3 years old.
- ensignavenger 10y agoWhat kind of tires did you get for that price?
- cpursley 10y agoNew Tires is a very strange (and illogical) reason to purchase a new vehicle. How is that any more frustrating than filling your gas tank when it's empty? All vehicles (used, new, gas, electric) need new tires after x amount of miles. This is a regular and expected maintenance item that all vehicle owners must deal with. It would be a different story if a critical component like your transmission unexpectedly went out well before it's life expectancy. Honestly, if you consider $1,000 on new tires to be a frustrating expense, then you really can't afford to purchase new cars in the first place. A new vehicle is a multiple of the cost of new tires and even more so when the balance of your last vehicle is rolled into the new financing and spread out over payments with interest. I worked at a car dealership while in college. There's a reason the "finance guy" drove a 10+ year old Honda that he paid cash for. http://www.mrmoneymustache.com/2011/11/28/new-cars-and-auto-financing-stupid-or-sensible/ http://www.mrmoneymustache.com/2011/11/28/new-cars-and-auto-... http://www.financialsamurai.com/the-110th-rule-for-car-buying-everyone-must-follow/ http://www.financialsamurai.com/the-110th-rule-for-car-buyin...
- pilom 10y agoYour logic uses the faulty assumption that you should always have a monthly payment. You shouldn't. Average live of a car is much longer than even a 7 year loan so at some point you shouldn't be making payments on it any longer. If you just keep rolling into newer cars, you are spending more than you need to.