Yeah, a little quirky, only needs a tune up, strike one in my book. Though I had a co-worker selling an older car, what maintenance have you done, brakes tires fluid changes etc. She was seriously offended, I told you we have had to do nothing to the car it runs fine. Run away my first thought.
I will leave 3 thumb rules to live by, without going into the extensive logic and calculations that buttress them:
- Only buy new if you plan to keep it 4 years or more.
- Consider CPO used cars instead of new, which can be a good deal because of additional warranty time.
- Buy older used cars only if you like to wrench or are closely related to a competent, charitable mechanic.
This tread is 8 year old
Only 3??? I guess you donāt believe in personal choice .
Tires 8 years old should be replaced. Couldnāt help it.
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I came close to buying a new car once in my life; a Subaru. Thankfully common sense returned and I backed out.
Iāve purchased used cars my entire life and they all have served me very well; and my cars get driven a lot. From 250 minimum to 400k miles is the norm.
I disagree that a well used car is always a headache. Iāve always spent time and patience (often 3 to 6 months) during car searches and being a mechanic Iāve never waded into one with major problems.
The flip side are those people who have no mechanical expertise and whose patience for acquiring another car is razor blade thin. Those people quite often end up in trouble and is where I take issue with financial guy Dave Ramsey. He always advises people to dump that new car debt and buy a ā1000 dollar beaterā.
Not necessarily feasible if the buyer has zero mechanical aptitude and said beaterās engine or trans fails 3 days later or itās broke down every week.
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It depends; I have a saying that is a variation: You donāt get what you donāt pay for.
Research has shown the lowest cost of ownership of an average car is to buy a 2 year old car of the reliable brands (Consumer Reports) and keep it for 10 years with regular maintenance. This tactic avoids the high depreciation costs of a new car and avoids the high maintenance costs at end of the car life. Remember everyone drives a used car.
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Yeah I guess thatās it. I have bought new and used but really do not like the process of finding a used car unless there is really a model I am looking for. I agree that Ramseyās car advice is a little dated. Often people are better off with a new car unless they bought a $70,000 truck. Then again there is good debt and bad debt. Credit card, bad but there is debt that helps to build net worth over the long haul as long as you can handle the risk.
Like said before, depreciation is not a cost except in bookkeeping. You never pay it unless you trade or are in business. What do you think that new suit would be worth after you wore it a few times?
I bought our 2017 rav4 off lease, 17,900, got offered 23k probably, 2k over blue book which was 21 to 23. Car and house prices are nuts! Wonder when this bubble will burst!
Has to be soon. Iām starting to see āliar loanā mortgages being issued again.
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Yeah but once this $300 a month per kid kicks in, Inflation at itās best. Though 1.5 years ago thought things would crash, but gone crazy instead. 18% portfolio gain last year, pretty flat this year, what is a liar loan?
A liar loan is one that you apply for with minimal (or sketchy) documentation.
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In the past, those loans were bundled and sold. The original holder doesnāt hold into them for long. The problem is the buyer, or the last owner when the liar loans default (if they do). The enticement is high interest rates. Weāll see how it works out.
Right now the best used car value is the one you own. Take good care of it while you wait for a better time to buy your next car.
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Nothing new under the sun. Back in the crazy 70ās inflation was fueled in part by people jumping the gun for fear if they waited prices would be unaffordable. In 75 when we wanted to build, mortgages required 50% down which was a little high for a first time buyer. By 1976, the price of a house went up about 30% in one year but only 25% down payment required. When mortgages were 3%, I advised to lock it in now for who knows whatās to come. I suspect 9% mortgages and 10% inflation if we are lucky, plus many supply shortages. You should not mess with mother nature or markets. Thatās what the Soviets did (and some other unmentionables).