4 ms·

Actually, I think it might take some of those into account. It mentions a Lost Wages term, assuming 1/3 day per failure. It also has includes "Transaction cos

by rflrob 17y ago

Actually, I think it might take some of those into account. It mentions a Lost Wages term, assuming 1/3 day per failure. It also has includes "Transaction costs" for buying a new(er) car. It's been 5 years since I bought my first, and so far only car (a '96 Camry, still going strong), but I'd disagree that the cost of time looking for a new car is much less, if at all. I would also be inclined to disagree with their assertion that "your car is in no way a positive-dollar-value asset". While I'm sure there are usage patterns where this statement is true, in cities with poor public transit, employment may be effectively directly conditioned on owning a car, thus very quickly making it a positive-dollar-value. I suppose the counter argument is that no one is forcing you to live in that city, but that starts getting really hairy. Either way, I would like to see the paper that this poster is connected to (if there is one). A lot of the terms and figures

chanroyal 17y ago
at the very least he doesn't mention 'time spent maintaining the car.' But then again, he doesn't mention 'fear of damaging paint job' for new cars.
sokoloff 17y ago
If you know what car you want, you can buy a new car in about an hour without getting cleaned out too badly. If you only pretty much know what you want, add an hour or so to that. You can easily spend 10-20 times that amount of searching for a used car if you're at all particular about just color, miles, brand/model, etc. "There are no used car factories." If you're very particular about options and condition, it only goes up from there. All new cars are roughly the same (as other new cars with that config). No two used cars are the same. So you need pre-purchase inspections, research into the history of the car, need to consider whether to throw your money away at used car warranties, etc. I can understand why people who "just want any car" buy new cars. All that said, I bought one brand new car 14 years ago (when I was 25) and think it was a huge mistake; I'm still driving that car today, 158K miles later, which lessens the failure somewhat. Even though I could pay cash for any new car the average person has heard of (no Maybach, McLaren, etc), I probably won't buy another new one until I'm too old to work on them. They're just too damn expensive, especially when you look at the huge selection of 3-4 year old off-lease cars selling $0.30-0.40 on the dollar.
- DanielStraight 17y ago
  This explains better what I was trying to say. Used car shopping is stressful. You never know (unless you're a mechanic or something) if you're getting a good car. You never know if you'll have problems a week later. With a new car, you're protected by warranties at least for a while. Also consider that being the sole owner of a car might make it easier to sell used. I think the simple fact is that the issue is not simple. It's not enough to say new cars have a huge initial depreciation, so you shouldn't buy them. There are way more things to consider.
  - jrwoodruff 17y ago
    I've never owned a new car. In fact, most of the cars I've owned were between 5 and 10 years old when I bought them. That said, I really prefer buying off private sellers, especially when they're the ones that bought the car new. They might be pulling one over on you, but it's easier to judge the history of the car when you meet the owner, see their garage/driveway. If you just need a car to get you from point A to point B, there's no reason a 5-year-old Honda won't work for you. Especially if you're a two-car family. Obviously, though, there are other considerations. If you drive 50,000 miles a year for work, a new car is probably smarter. But for the average commuter, I don't think it's necessary to drop 25 large to get a reliable vehicle.
  - Poiesis 17y ago
    Used cars from a decent dealer nowadays have a modest warranty.
DanielStraight 17y ago
In my experience, 1/3 day per failure is optimistic by at least an order of magnitude.
- dagw 17y ago
  Plus I imagine there is a limit in many jobs to the number of times you can call up and say "I'm sorry I can't make it today, my car broke down" before you don't actually have a job.

by rflrob 17y ago

chanroyal 17y ago

at the very least he doesn't mention 'time spent maintaining the car.' But then again, he doesn't mention 'fear of damaging paint job' for new cars.

sokoloff 17y ago

If you know what car you want, you can buy a new car in about an hour without getting cleaned out too badly. If you only pretty much know what you want, add an hour or so to that. You can easily spend 10-20 times that amount of searching for a used car if you're at all particular about just color, miles, brand/model, etc. "There are no used car factories." If you're very particular about options and condition, it only goes up from there. All new cars are roughly the same (as other new cars with that config). No two used cars are the same. So you need pre-purchase inspections, research into the history of the car, need to consider whether to throw your money away at used car warranties, etc. I can understand why people who "just want any car" buy new cars. All that said, I bought one brand new car 14 years ago (when I was 25) and think it was a huge mistake; I'm still driving that car today, 158K miles later, which lessens the failure somewhat. Even though I could pay cash for any new car the average person has heard of (no Maybach, McLaren, etc), I probably won't buy another new one until I'm too old to work on them. They're just too damn expensive, especially when you look at the huge selection of 3-4 year old off-lease cars selling $0.30-0.40 on the dollar.

DanielStraight 17y ago
This explains better what I was trying to say. Used car shopping is stressful. You never know (unless you're a mechanic or something) if you're getting a good car. You never know if you'll have problems a week later. With a new car, you're protected by warranties at least for a while. Also consider that being the sole owner of a car might make it easier to sell used. I think the simple fact is that the issue is not simple. It's not enough to say new cars have a huge initial depreciation, so you shouldn't buy them. There are way more things to consider.
- jrwoodruff 17y ago
  I've never owned a new car. In fact, most of the cars I've owned were between 5 and 10 years old when I bought them. That said, I really prefer buying off private sellers, especially when they're the ones that bought the car new. They might be pulling one over on you, but it's easier to judge the history of the car when you meet the owner, see their garage/driveway. If you just need a car to get you from point A to point B, there's no reason a 5-year-old Honda won't work for you. Especially if you're a two-car family. Obviously, though, there are other considerations. If you drive 50,000 miles a year for work, a new car is probably smarter. But for the average commuter, I don't think it's necessary to drop 25 large to get a reliable vehicle.
- Poiesis 17y ago
  Used cars from a decent dealer nowadays have a modest warranty.

DanielStraight 17y ago

In my experience, 1/3 day per failure is optimistic by at least an order of magnitude.

dagw 17y ago
Plus I imagine there is a limit in many jobs to the number of times you can call up and say "I'm sorry I can't make it today, my car broke down" before you don't actually have a job.