Posted on 07/28/2020 8:29:03 AM PDT by Responsibility2nd
You can’t lose if you don’t play
When a 3 year old used car is selling for only 3 grand less than the new model the market is wrong.
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True. This is just one of many valid points that refute the old and incorrect notion that it’s always better to buy a nearly new car than a new car.
Will Hertz be offering a new car warranty? Will they be offering dealer finance at 1 or 2 percent?
Look. if you’re like most people and drive a car for at least 8 years, then for crying out loud - BUY A NEW CAR!
Yeah. What Hertz will likely do is flood the auctions (Manheim) with rentals.
Dealers will buy then and put them on their used car lots.
By then, the markups will have been added. But even at that - it will be interesting to see what the overall used car market will look like in a few months.
Depreciation used to be the big thing. Plus the fact that Americans only kept cars for a few years. And also I think personal belief. I was raised in a used car household, became a used car guy. Finally got in a wreck (pretty much the only thing that gets me buying a car, definitely a buy and keep guy), was looking at used and a friend said “the situation is totally changed, look at new”. Sure enough, 3 grand more for 50,000 fewer miles on it, and bumper to bumper. New car for me.
Fire Sale!!!!!!!!!!!!!!!
This affects the entire auto market for a couple of months. Just as dealers are ordering 2021 models.
But no sustained impact.
“Look. if you’re like most people and drive a car for at least 8 years, then for crying out loud - BUY A NEW CAR!”
Nah, I’d rather buy a used car for cash and own it outright. I’m not taking out a loan for something that depreciates in value. If I have to take a hit on the depreciation, I’m certainly not going to take a double hit and pay interest too.
I have a couple of dollars, I’ll take three cars......
The Prices Hertz is asking is hardly a Fire Sale.
The Used Car Market is weird right now. A Relative is a Used Car Sales Manager and he is saying the Auction Prices are so inflated he can’t buy and make enough of a Profit for his Dealership.
He is more dependent on Trade Ins rather than buying from Dealer Auctions to keep up his Inventory.
That being said, the BMW Dealer he works for is having a record Month in new Car Sales after a Kung Flu lag a couple of Months ago. It’s crazy...
Boogie - you fail to understand even the basic fundamentals of buying new vs. used.
Depreciation? What’s that?? I’ll tell you what that is. That’s a hard loss you take on a car that you buy and then sell next year. And that rule applies equally to NEW and USED cars. Do you plan on buying retail and selling wholesale in a year? No? Then quit with the silly obsolete notion about depreciation. It actually costs you MORE MONEY to buy and maintain a used car over 10 years than if you had just bought a new car in the first place.
You don’t take out loans? Great. Pay cash for your car. Just know that on average a buyer pays MORE for a used car than a new car - based on age, mileage, condition and value.
And what do you mean about paying interest on a new car? Let’s say you do need a loan to buy a car. New or used. Interest rates on new cars are always lower that used car rates.
Hertz is selling Nissan Sentras with about 45k miles on them for about $9000. These are rental cars, and they’ve had a lot of drivers - odds are some of them didn’t care the slightest bit about some rental car. The prices aren’t that great, all things considered.
So that means that the market value of *every* used car in the country will go down...perhaps in a big way.
“And that rule applies equally to NEW and USED cars.”
Of course it does. Who doesn’t know that? Obviously I do, since I acknowledged in my comment that even buying a used car I was “taking a hit on depreciation”.
Actually, you seem to be the one who doesn’t understand the concept of depreciation since you say we shouldn’t worry about it unless we are selling a car within a year. That’s utter nonsense. Depreciation is a constant devaluation of an asset, which is why you can claim depreciation against the value of your assets EVERY year on your tax return, not just the first year you own an asset.
“It actually costs you MORE MONEY to buy and maintain a used car over 10 years than if you had just bought a new car in the first place.”
More nonsense. The maintenance cost of the car over its lifetime doesn’t magically increase if you bought it used versus if you bought it new. It’s the same damn car.
“And what do you mean about paying interest on a new car?”
Self-explanatory. You generally end up paying at least 50% more, sometimes up to 100% more for the cost of the vehicle over the sticker price just because you are paying interest.
“Let’s say you do need a loan to buy a car. New or used.”
Let’s say I don’t to buy a used car, because I don’t. So interest isn’t an issue for me then. That’s a huge amount of savings over buying a new car with a loan at interest.
I typically hang on to them for 5 years. Because I get them brand new, my maintenance costs are very low and I can get up to three years from a set of tires and brakes.
At the end of term, I simply sell what I have third party and negotiate for a new car with at least a 20% down payment in hand. I also pay for all fees and taxes up front (never roll it into your loan!)
I don't do dealer trade-ins as that is where you generally get screwed over in a new car transaction. But that's me. People that are savvier about negotiating might do better trading it in but I'd rather walk into a dealer without that complication (and have cash in hand).
There are quite a few Freepers who are of the "buy a used car and drive it into the ground" mentality and that might be fine for them but doesn't work for me. I like having a car that only I drove configured to my own specifications. I don't want to deal with the ramifications of somebody else's bad driving habits, food stains on the upholstery and cigarette burns on the floorboards, etc.
Do you follow Dave Ramsey don’t you? You mimic his silly talking points almost to a T.
I occasionally listen to Ramsey. His silly talking points as you so ignorantly describe them make absolute sense. Especially when it comes to cars.
Buying cars is stupid and a necessary evil. New cars even more so
But in our society we need mobility.
What we don’t need is the latest ride in the driveway.
To say a used car is more expensive than a new one reeks of arrogance.
Three years ago, we bought a 2015 Chevy Equinox. As if this week, it’s paid off. Yesterday was the first repair on it in three years.
The car payment was $200 less per month than new. Insurance is cheaper. Repairs are nil.
I’ve got a company car. My previous personal car ran 300,000 miles. Besides maintenance items like tires and brakes, the only repair was $95.
There goes your warranty argument.
>>Now? Now we will have the opportunity to buy a nearly new car at even greater discounts.
Having bought a used rental once in my life, I will never do it again. Less than 30K miles on it, and had problems starting from a week after I drove it off the lot....had to fight them (using the Mass lemon laws) for almost a year in order to get them to write me a check, but I did it.
People really beat the crap out of rental cars, and since they sell them off after 18+/- months, there is no real incentive for these companies to take care of them.
Rental cars are crap. Don’t buy one unless you can get it really really cheap. And have a mechanic check it out.
Three years ago, we bought a 2015 Chevy Equinox. As if this week, it’s paid off. Yesterday was the first repair on it in three years
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The first of many. A Chevy Euinox? Forgive me if I take no advice from someone who would buy a Chevy Equinox .
“That’s a bad mamma jamma”.
“It actually costs you MORE MONEY to buy and maintain a used car over 10 years than if you had just bought a new car in the first place.”
Ridiculous. I bought a used Chrysler for my daughter from an impound lot for $800. We put in $500 for tires and a battery. She drove it for three years without it needing any work except oil changes.
I bought a 15 year old Subaru Legacy Wagon for $2,700 with 104,000 miles on it. I’ve had it three years and have 144,000 and have only done routine maintenance. My last Legacy got 240,000 miles with only routine maintenance and a water pump and a starter.
No new car deal could beat that.
Nope, try another straw man.
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