Quote:
Originally Posted by I-Hate-Hulse
I don't think it can be understated how much getting into a new/used car(s) every 3-4 years contributes to the destruction of personal wealth. Losing 20-30K (on a moderately price vehicle) in depreciation every 4 years is incredibly expensive, but lost on so many in my circle of friends. Luxury German vehicles in particular....
Buy something reliable, keep it 10+ years, rent a truck if you really need it 5x a year. Avoid debt if possible.
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Buying used isn't always the way to go. I leased a Toyota Matrix in 2009, which meant I could write off a significant portion of the lease payment. Then I bought out the lease.
The car was, not due to our negligence, written off in an accident last year. We also had a new baby, so needed something bigger (that could accommodate both a car seat and stroller). Ended up with a VW Taos. At this point the Matrix was 14 years old. It's a shame, as the vehicle probably would have lasted another 15+ years.
When buying the new vehicle, the lightly used ones were actually slightly more, and we had to go on a waiting list to get the new one. With the new vehicle, you get the warranty, so you're looking at almost no maintenance for the first 4 years or 60k. If you buy a 7 year old vehicle, for example, you're running the risk of getting a lemon.
Anyways, long story short, you can come out ahead buying new. The key is, as you say, get a vehicle you plan to have for 15 years, not 3-4. Buy from a manufacturer that is known for reliability and holding value long term. Also, only buy within your means. Look at interest rates, on any lease or financing payments, and not just total monthly payments. It's baffling how many people drive away from a dealership with a nice vehicle simply because they can afford the monthly payments right now, with no concept of how much money they are actually spending on the vehicle, interest payments, etc..