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Buy new, buy old, or keep current car?

Discussion in 'Other Guitars, other instruments' started by naveed211, Oct 21, 2020.

  1. chris m.

    chris m. Poster Extraordinaire

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    I think Spontaneous' point is important....

    Even though you leased this Subaru and know it well, I think it helps to have a much more business-like, unemotional attitude to all things cars. In your mind you should be thinking more like a used car dealer, basically. Used car dealers move many, many automobiles a week, buying and selling them. They know how to quickly check out a vehicle and value it accurately.

    Basically, you have a vehicle that is just coming off of lease (the leaser happened to be you), and it has a current selling price from the dealer, a certain number of miles, and a known condition. But there are literally thousands of vehicles that are in basically the exact same situation-- just coming off lease, have an asking selling price, and a readily ascertainable condition and/or warranty coverage. So rather than having any kind of anchoring to the vehicle you just leased, it might make more sense to take a cold, hard look at all of your options for vehicles of a similar vintage and make decisions on that basis. There may be things about the Subaru that are not actually optimal, and you might have an opportunity to switch to a vehicle that actually is a better fit. For example-- better mpg, or more room, or better infotainment system, or more reliability, or lower total cost of ownership, or a color you like better-- whatever.

    It's kind of how I try to think about guitars, bicycles, anything I own personally and like to buy/sell. I try to divest myself of any emotional baggage and think about these things as fungible, exchangeable commodities that have a known value on the open market.
     
  2. mrblanche

    mrblanche TDPRI Member

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    Financial experts say there are a few ways to minimize auto expense. The first is to buy new cars, maintain them well, and drive them until they're essentially worth nothing, and do it again. This depends on buying a good car in the first place. But most cars can be driven 15 years or more quite dependably.

    The second way is to buy used, 3 years old or so. Again, buy the best car you can afford, maintain it well, and trade it when it still has some value.

    The third way is to buy a cheap used car, drive it until it quits, take the plates off it and leave it there and do it again. I have passed up several $500-$600 cars lately. High mileage, but I knew the owners and believed what they told me about their condition.

    The financial expert who advocated #2 said doing that would make it possible to retire as much as 5 years earlier than buying a new car every 3 years.
     
    glenlivet likes this.
  3. jageya

    jageya Tele-Holic

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    usa
    go buy a 2006 acura mdx thats been taken care of...thank me later
     
  4. Telebra

    Telebra TDPRI Member

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    hawaii
    Obviously this post is in CODE. I have managed to decipher the message to mean;
    You borrowed your friends '68' Paisely Telecaster 10 years ago.
    He Fought the Law and the Law won. got put away for Life without Parole.
    Now you need some cash and are thinking of selling the guitar. But his family has hit some Hard Times and are Busted. This puts you in a conundrum that feels like a Burning Ring of Fire. Should you give the proceeds to them, or keep them for yourself.
    Let me save you from this Crossroads Dilemma.....send the guiitar to me
     
  5. Maguchi

    Maguchi Tele-Meister

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    Buy a 1 or 2 year old barely used car with 10,000 or 20,000 miles. You'll get a like new car and save a bunch of money. Toyotas and Subarus are very reliable and durable, but very reasonably priced. Maintenance is not very expensive compared to a Benz or a BMW.
     
  6. Linkslover

    Linkslover Tele-Meister

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    Chicago

    It's freaky pretty simple.

    1. Is the residual purchase price greater or less than the market price of the car in the used car market. You'll lyrically have to do some research here, but there are lots of websites where you can do this.

    2. If the purchase price is less than market price, buy i

    3. If not, negotiate or walk away.

    4. If you buy the car and need to save money, sell it yourself and buy a less expensive car.

    The only other consideration is whether the car has the safety features you want in a car that will be carrying your wife and kids.

    Peace and stay safe,

    Linkslover
     
  7. GearGeek01

    GearGeek01 Tele-Meister

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    Detroit
    If you are trying to stay out of debt or become debt free... the worst possible financial decision you could make would be to lease a car. You want to be in a financial position where you can pay cash for everything.

    People tend to want to keep up with the Joneses or live beyond their means. Best first thing to do is to cut up your credit cards. Or, have just one (people use the excuse of having it for "emergencies" the put a new Suhr Strat copy on it later...) and keep the balance below 30% at all times. Pay cash or do without. So many people stamp their feet like little red-faced three year olds who plead "I want it I want it I want it" which the credit card companies are preying upon for their existence.

    The Amway corporation in Grand Rapids, Michigan has done all of their business from the very beginning in CASH. Now Amway still does all their business in cash. If they want to build a $40 million dollar new factory, they pay cash.

    Motor City Guitar in Waterford, Michigan started his business 30+ years ago with cash. He has done business with nothing but cash the entire time he's been in business. Today he is a dealer for Gibson, Fender, Suhr, PRS, Friedman amps, Dr Z amps, Marshall, Mesa/Boogie... and many more big names I can't remember right now. He told me one time Gibson's minimum order for a dealer a few years back was $30,000.00. He pays cash for everything. He started his business with his wife 30+ years ago with a $750 piano he bought from his mother. Cash.

    If you have any savings at all (most people do not) buy a car for cash and live within your means. If you are making payments on your wife's car sell that and buy something for cash money and live within your means.

    Make a list of all your credit-related debts. Start with the smallest debt/bill you have and double whatever you have been paying if you can. Then, when that debt is paid off, cut up the credit card or do away with the possibility of being in debt to that same thing again. Take the money you were paying on that item and roll it over to the next higher debt/payment you have until that debt is paid. Then do away with that credit card or debt permanently. Do this with every bill until you are paying off your home mortgage with double payments (or more).

    Then do all your personal business for cash. If the kids leave the nest and you want a different house... plan ahead and plan to buy your house for cash. Live within your means. That might mean you miss out on the cliffside house in Malibu, California, but you are debt free and can live beyond the struggles most people do to themselves by shooting themselves in the foot on purpose by getting into too much debt because they can't control compulsive urges.

    As far as your Subaru... count up the thousands you've already spent. Add in the price they are now going to sell you the same car you've already bought one time, now you want to buy the same car twice... And now the car has more miles on it than when they sold it to you the first time. Now you're asking them to sell it to you a second time. I don't see where that makes any sense at all.

    End the lease and get rid of the car, get into your savings and buy a car you can pay cash for. Might be a hoop-dee of some kind but get over the social pressure of keeping up with the Joneses... a car gets you from point A to point B. In that respect my $1,500 cash used 2009 Nissan Versa gets me to the store exactly like an over-priced Ferrari. Except I got more room for groceries in my Nissan.

    I think most people could benefit from being homeless for a while. Once you have nothing and can buy nothing and have no credit you learn that life is much easier than what the world tries to force you to live by.

    But I think the pressure from the credit card and loan companies is too great, its too easy to get credit and live outside of your means, thus most people I think will fail at being totally debt free. But its worth a shot...
     
  8. teleplayr

    teleplayr Tele-Afflicted

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    I've never owned a new car, and never will considering the major hit you'll take the minute you drive it off the dealers lot. Not to mention you'll have to have "Full Coverage insurance" on a new vehicle.

    I've always bought used & for cash.

    Once I bought was a used Toyota pick-up that was 3 years old with less than 19,000 miles on it for $3,000. The main reason it was so cheap was that we recently had a severe hail storm and it had extensive hail damage.

    Ugly? You bet! But I drove that truck for 17 years with no major problems. When I sold it I had 425,000 miles on it.

    High mileage isn't a deal breaker (within reason/average last I looked is 15,000 miles a year) when you're looking at a Japanese vehicle, IF it's had routine maintenance done on it. Car-Fax can be your friend! A seller with maintenance records is a big plus.

    It's always a good idea to have a honest repairman check-out whatever you're looking to purchase. If the seller won't allow it....Walk away! Spending a few dollars to have a mechanic check-out a vehicle is money well spent.

    As stated before "Keeping up with the Jones's" is just an ego thing and a good reason to keep you in debt. Sorry, but being in debt to impress someone is just a lame idea.

    So far over the years the most I've spent on a used vehicle has been $5,800! I saved money over the years in advance just for the reason to have cash to buy something used.


    So far I've had good luck with all the used vehicles I've bought & saved a lot of cash.

    Best of luck to you on your search!
     
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