This Blog

Syndication

Welcome to MyLRS Sign in | Join | Help

New cars!!! Over priced and over rated!!!

Share |

It is nice when all the new model cars come out and there is always a new model that catches your eye. Why would anyone buy a brand new car? Yea it is nice to have something new to drive but as soon as you drive it off the lot you've just lost your retirment fund on the depreciation.Typically you lose $5,000.00 as soon as you drive off the lot.

I have come to this conclusion after buying several new cars myself and losing money on them. Now it is getting time to but my wife a better vehicle and it amazes me how much cheaper you can get a slightly experienced vehicle for. My wife told she would like a BMW, yea right!

Well as I was conversating with some friends and told them what she wanted and they were like " why not you can get one pretty cheap". So I started looking and they were right! I have found several 2002 BMW 325i sedans for between $11,000 to 14,000 averaging around 50,000 miles. These are very clean nice cars too! I looked up what it would have cost new and the same car was $27,000 brand new not including the intrest you have paid unless you pay cash. The car has lost over half its value in no time at all.

The worst car so far I have seen is the Ford Fusion. I have found some 2006 models for $11,000 with only 20,000 miles on them. A brand new Ford Fusion with the same options runs $22,000 MSRP. Yep, the car lost half its value in one year. I will never buy a brand new car again! Did you know that 80% of all millionares buy used cars that have already lost their depreciation. I say buy slightly experienced vehicles and put your extra $5,000 in an investment plan.

Published Dec 19 2007, 10:35 AM by mlinley
Filed under:

Comments

 

scott s said:

What about that intoxicating new car smell?  I'd recommend never to say never.  I said I wasn't going to buy a new one again, but I did, just last month.  I think the key is to do your research, be patient, and  buy one that you like, pay it off, and keep it.  New cars pay off if you keep them long enough, and there's nothing like the experience of buy a brand new car, and driving it off the lot knowing that no one else has owned it but you.  I've taken a bath in more than my fair share of new car deals, yet I continue to go back.  Let's see how long this new Silverado lasts, and what my opinion is on this subject in a few months.....

December 19, 2007 1:10 PM
 

SCOTTY2THAG said:

Lord willing.....In My lifetime.....I will not only buy but Special order me a car just the way I like it.  Of course that will be several years down the road when finances are better.  I will lose my tail on it I know but as Springer said there will be nothing like driving a car that only you have owned.  I will probably be so picky as to do the PDI myself too. Just because I can. And if for some reason I don't get the chance too.  I will always have that dream to chase.

December 19, 2007 5:05 PM
 

nate said:

I'm with Mike, not only will I always purchase used cars, but, from now on, I will always pay CA$H!!!!

December 20, 2007 9:02 AM
 

btaylor said:

Buying a new car is a special experience. My wife dealt with 2 different used cars while getting through school but had always wanted a new vehicle. Once she was secure in her job, we were blessed and were able to get her the new vehicle she wanted and what made sense for our family.  Now she is very happy. And if Momma ain't happy, nobody is happy. I see no reason that we won't drive it until the wheels fall off of it, just like our previous vehicles. Since I live 1.5 miles from work, I'm content to drive her old car. For now  :^)

December 20, 2007 11:14 AM
 

jc said:

I recently bought my first vehicle new, after owning maybe 50 cars of a used variety, and I have to say, theres nothing like it. Every body owes it at least once to themselves, life is short, to do it once. There's a wooden box at the end of this race for all of us. So why not do it once?

December 29, 2007 10:24 AM
 

Bob said:

Nothing like owning a new car - if you can pay CASH.  I have had one new vehicle and I financed it two years ago.  Regretted it when I got the payment book.  What sucked about the cars I financed - they would depreciate faster than I could pay it off so I could never get ahead of them.  I heard of a guy named Dave Ramsey - took his Financial Peace class - and now I will never buy new again.  I just paid off my new truck i got 2 years ago and will never borrow for a vehicle again.  I will make payments to a mutual fund and withdraw the interest when I need a "new" (gently used) car in 5-7 years.  Doing this - my cars will be essentially free for life instead of making the bank richer.  Cars are a horrible investment.  If you can stay away from CREDIT Cards and debt, just get good used cars to get by, and invest your money wisely, you will be a millionaire by time you are 50 with a normal blue collar job!  Then you can buy whatever you want with cash.  I buy used with cash now, I get great deals when I'm laying those $100's down on the hood - the saleman go weak in the knees and I save $1000's.  I have bought 3 used cars this year with cash and with I'm in control instead of the salesman.  I OWN a 05 F150, 98 Jeep Cherokee work beater/Mud buggy, a mint 97 Orange Mustang GT and love each of them.  Of course the wife gets the 05 F150 and I get the two old cars.

January 5, 2008 11:11 PM

About mlinley

About mlinley: I guess you can say I was born in love with cars. As a kid the only toy I cared about were hot wheels. The only time I deviated from cars was during my BMX racing days. As soon as I turned 16 it was back to cars. My first car was a 78 Ford Fairmont (Futura). I actually started driving it when I was 14 but flipped it about six months after I got my license. Since then I have had to many to list. Here is a list of my favorite: 78 fairmont,73 laguna, 86 Mustang GT, 79 chevy truck, 91 Mustang GT, 94 Cobra, 02 Mustang GT. I currently drive a 2003 Ford F-150 . I have a beautiful wife and two awesome boys.