So I am itching to buy my first ever new car. But here’s something I am struggling with: the price tag.
I don’t make a lot of money (about 30-35 k) per year, and I’m a single person so I don’t have a lot of financial obligations other than for myself. But I’m eyeing some cars that I really like and they are price tagged at around 40-55k. Now, obviously, I know that I am shopping out of my range. I should probably be aiming for cars that sell at around 20-30k. But is this a reasonable perspective to have: If I buy a car that costs me 50K, I’m not really spending 50K because when I resell it later, I’ll be expecting at least 50% of it back in the resale value because I may not own it for longer than 3 or 4 years OR it will have very low mileage on it
(about 50,000 km or less). So in the end, I’m really only spending around 25k.
I don’t know, but that’s how I reason it to myself to make me feel better that I’m not actually going to spend 50k on a car because I’ll get at least half it back when I resell it.
Is this correct in thinking like this? (of course there are other expenses like gas, insurance, maintenance, taxes) but I mean just from the price tag cost to when I resell it, the difference should only be about 25k in actual money spent to buy this car. I am also aware that cars are not investments but liabilities and value of cars go down a lot. The cars in this
range that I am looking at however are not cheap cars and usually do maintain their value pretty well even after 3 or 4 years.
Please confirm or correct my way of thinking.