CBS News ( 7 days old ) : New or Used car sticker shock ...

[SC Maintenance]

Video is pretty funny. The people in the video bought a used Tesla, and are now looking to buy a used $40K Ford Explorer. How much is an Explorer new anyway?

So supposedly these people are complaining about the cost of cars. Ditch the Tesla and The Explorer. Buy a $10K 12 year old Accord. Put the rest of the money in T-bills and you have enough interest payments to cover your insurance and gas for the year.

Sorry, but stupid people deserve to stay poor.

 

[ATex7239]

Video is pretty funny. The people in the video bought a used Tesla, and are now looking to buy a used $40K Ford Explorer. How much is an Explorer new anyway?

So supposedly these people are complaining about the cost of cars. Ditch the Tesla and The Explorer. Buy a $10K 12 year old Accord. Put the rest of the money in T-bills and you have enough interest payments to cover your insurance and gas for the year.

Sorry, but stupid people deserve to stay poor.

You need an SUV that can seriously haul to carry around a toddler with diaper bag and snacks.

Everyone knows that.

 

[b_b]

the trick to affording an expensive vehicle is to buy a moderate one ( that holds its value) and trade it in on something desirable the moment you have it payed for. bonus points for buying while incentives are high or buying old stock for a deep discount.

 

[SC Maintenance]

the trick to affording an expensive vehicle is to buy a moderate one ( that holds its value) and trade it in on something desirable the moment you have it payed for. bonus points for buying while incentives are high or buying old stock for a deep discount.

Now that I can afford to pay cash for virtually any new vehicle, I have no desire for one at all. Once you see your money put to work making money, without you having to put any effort in at all, your will to part with it is low. Its easy to see how the rich keep getting richer, and the poor keep going the other way.

 

[b_b]

Now that I can afford to pay cash for virtually any new vehicle, I have no desire for one at all. Once you see your money put to work making money, without you having to put any effort in at all, your will to part with it is low. Its easy to see how the rich keep getting richer, and the poor keep going the other way.

things wear out and need to be replaced eventually, and trucks don't present as a good used value. trucks are priced on a 200k mile lifespan. I rather pay for the first 100k miles of usage and be under warranty. Let the next person pay for the second half and work on it themselves.

 

[andrew_j]

Unfortunate as new vehicles are why folks don’t build wealth to afford something new cash eventually.

Buying used works well cash with goal of swapping out hopefully something better when repairs excessive or you can afford it cash.

Many folks unfortunately use loans to buy something way above means vs if cash you drop expectations.

 

[jeepman3071]

I can see what your saying. Weird but my properties- houses have no mortgages but I finance my cars. Years ago I didn't.
Why? I don't want my money in a depreciating assets either so I finance.
I like my money in the stock market or real-estate where I can make it work and pay as I go on a vehicle. That's a twist isn't it

This definitely makes sense, but only if you are smart and have low interest rates. I remember my parents did this with my mom's Honda Fit when it was 0% financing.

Most people don't do this though. They have high interest loans so they end up paying double for the vehicle, and also pay higher insurance rates. Not to mention they get to a point where they have negative equity in the vehicle, and end up facing a situation where the vehicle needs expensive repairs before they are done paying it off.

 

[walterjay]

My first car payment was a whopping $100.00 per month for 12 months. I put 50% cash down. When I handed the salesman 1K in green cash he said that he had never seen anyone put that much cash in his hand. Sorta blew my mind.
My current financing situation is 48 months at 0%, Why pay cash eh?

 

[Allaneddie]

Yes, but it has been a winning game for you lately as markets have risen substantially. I personally have a rather conservative investment setup right now, so earning 4.25% risk free on cash is a no brainer. My 3.5% mortgage is fine because I also like being liquid, but paying 6+% on a car is just something I could not do mentally

Yes, with those percentages it makes sense to pay cash for the car. But buy if you really need one and not "want" one.

 

[eljefino]

You need an SUV that can seriously haul to carry around a toddler with diaper bag and snacks.

Everyone knows that.

A high roof is useful for babies and toddlers.

Since I was a kid, the front passenger seat became verboten until you're 12, so you need more room in the second row, now.

Car seats need an adult to kneel on them, to compress the vehicle seat foam enough, that one can tighten the belt/LATCH for less than an inch of wiggle. When the adult is kneeling, their back, head, and shoulders need to be somewhere and a high roof helps with that.

Of course we know Minivans aren't cool, so you have to give them a different name. Even Chrysler, king of the concept, had to drag a crossover name back up and just calls their (shh) van a "Pacifica."

 

[ATex7239]

A high roof is useful for babies and toddlers.

Since I was a kid, the front passenger seat became verboten until you're 12, so you need more room in the second row, now.

Car seats need an adult to kneel on them, to compress the vehicle seat foam enough, that one can tighten the belt/LATCH for less than an inch of wiggle. When the adult is kneeling, their back, head, and shoulders need to be somewhere and a high roof helps with that.

Of course we know Minivans aren't cool, so you have to give them a different name. Even Chrysler, king of the concept, had to drag a crossover name back up and just calls their (shh) van a "Pacifica."

Sedans I have owned and used front and rear facing car seats or boosters with my kids in no particular order: Honda Insight, Nissan Sentra, Ford Fusion x3, Honda Civic, Chevy Malibu. Ideal, no. Manageable, yeah.

The minivan is the GOAT for people hauling.

 

[Barkleymut]

Yes, with those percentages it makes sense to pay cash for the car. But buy if you really need one and not "want" one.

Current daily driver is a 2009 Ford Flex with 147k miles. Bought it used in 2012 for $19k with 40k miles on her. When i dispose of it, it will be because my family's lead mechanic (me) can no longer fix whatever ails her.