3 ms·

Use some of the money saved from not buying a new car. Or buy a second cheap car :)

intrasight 6y ago
This has been my strategy for last 12 years. I own a 17 year old Volvo XC wagon and a 16 year old Toyota Camry. Volvo I bought 13 years ago from a 96 year old gent who's family had taken away the keys. Bought it sight-unseen on Craiglist for $9000. I'd put it up against any modern SUV for looks and functionality (except smartphone integration). The Toyota was $4500 and had 30K miles. The Volvo heads to the shop on Wednesday. I'm concerned that I'm in for an expensive bill from the mechanic (~$1000) for various ailments. Never an easy analysis on a car with a KBB value of like $2500. But on the other hand, I'm driving a $40K car. Another benefit of second used car is that if friends and family come to visit, they have a car to use.
- Danieru 6y ago
  I did a similar move but ended up buying a lemon. Still, despite so far putting 150% of the "value" into repairs I realize it does not matter. Large Ratios of a small number are nothing compared to even small ratios of a large number. Once the repairs are done I get to know the state of those parts. Absolute worst case, and the engine needs replacement, we're still only talking about 1 year worth of depreciation on a new car. Will I need to replace the engine? Likely not. Would it have been slightly cheaper to spend 2x on a better used car? Sure, but maybe that one would have been a lemon too. The scary part of used cars is spending money on repairs. Yet even expensive repairs are cheap. They are only expensive relative to the market value, but the market value is based on that lemon market risk. The end result of having bought a far too cheap lemon: I've still spent less than a properly vetted vehicle and now I know some good mechanics down the street. The vehicle itself now has parts which are known quantities. I'd really love an excuse to buy a new car. I've got the cash for it, but nothing modern cars can provide justify paying an engine replacement of depreciation every year.
  - intrasight 6y ago
    >I'd really love an excuse to buy a new car I look for that excuse myself regularly now. I think the biggest "excuse" is new accident avoidance tech. A friend last year hit a bear. She didn't see the bear but her Subaru did, and probably saved her life.

This has been my strategy for last 12 years. I own a 17 year old Volvo XC wagon and a 16 year old Toyota Camry. Volvo I bought 13 years ago from a 96 year old gent who's family had taken away the keys. Bought it sight-unseen on Craiglist for $9000. I'd put it up against any modern SUV for looks and functionality (except smartphone integration). The Toyota was $4500 and had 30K miles. The Volvo heads to the shop on Wednesday. I'm concerned that I'm in for an expensive bill from the mechanic (~$1000) for various ailments. Never an easy analysis on a car with a KBB value of like $2500. But on the other hand, I'm driving a $40K car. Another benefit of second used car is that if friends and family come to visit, they have a car to use.

Danieru 6y ago
I did a similar move but ended up buying a lemon. Still, despite so far putting 150% of the "value" into repairs I realize it does not matter. Large Ratios of a small number are nothing compared to even small ratios of a large number. Once the repairs are done I get to know the state of those parts. Absolute worst case, and the engine needs replacement, we're still only talking about 1 year worth of depreciation on a new car. Will I need to replace the engine? Likely not. Would it have been slightly cheaper to spend 2x on a better used car? Sure, but maybe that one would have been a lemon too. The scary part of used cars is spending money on repairs. Yet even expensive repairs are cheap. They are only expensive relative to the market value, but the market value is based on that lemon market risk. The end result of having bought a far too cheap lemon: I've still spent less than a properly vetted vehicle and now I know some good mechanics down the street. The vehicle itself now has parts which are known quantities. I'd really love an excuse to buy a new car. I've got the cash for it, but nothing modern cars can provide justify paying an engine replacement of depreciation every year.
- intrasight 6y ago
  >I'd really love an excuse to buy a new car I look for that excuse myself regularly now. I think the biggest "excuse" is new accident avoidance tech. A friend last year hit a bear. She didn't see the bear but her Subaru did, and probably saved her life.