Need advice on a car I bought!

[dparm]

Originally Posted By: Pop_Rivit
You financed it because you couldn't afford it, and after a year you're either treading water with the value or upside down (depending on how you spin it with the warranty). Chances are when you sell it you'll need to bring cash to the table in order to unload the car.



I financed my car. Why? Because the interest rates are so stupidly-low (1.49% for 60 mo). I can make more money letting that cash payment for the car earn interest.

 

[dparm]

Originally Posted By: satinsilver
I think the car looks great! Linky:

http://www.bobistheoilguy.com/forums/ubb...911#Post2819911



It's pretty mint. I'd keep it and drive the [censored] out of it for as long as you reasonably can.

 

[Artem]

Who cares about warranty anyway? I've purchased 3 cars and a bike NEW and declined the warranty right away. Never had an issue with any of the cars while a normal warranty would be active. Issues started creeping up once the cars started reached 100k+. The bike was totaled after 5,000 of use... would a warranty have benefited me any in this situation?

The same goes for any electronics that I've ever purchased. Not once have I ever had a warranty claim on anything that I've owned. My 07 Civic had a TSB on the rear camber arms and Honda replaced an alternator bolt as a precaution due to another TSB for a possible failure. The only reason I took the Civic to the dealership was because of a letter I got in the mail about the rear control arms causing premature tire wear. I would have never went in there if it wasn't for that.

So why people purchase extended warranty's beyond the regular manufacturer's standard warranty is beyond me.

Paying $3,000 for an extended warranty on a $12,000 car is hilarious. Most people never see the dealership for any repairs in the 3 years and the dealership pockets a cool 3gs without lifting a screwdriver.

 

[Quattro Pete]

Originally Posted By: Artem
Who cares about warranty anyway? I've purchased 3 cars and a bike NEW and declined the warranty right away.

Were they Euro cars? On some of the Euro cars the warranty can pay for itself long before you hit 100K miles.

With that said, I agree that $3K for a warranty is rather steep, and I even told that to the OP when he was shopping for it last year.

 

[Artem]

No, a 1998 Toyota Camry and two 2007 Civics. I laughed at the sales man when he mentioned purchasing extended warranty.

My 07 Civic Si was modified without a month after bringing it home, so I voided the warranty on both the engine and transmission right there and then anyway. Haha

 

[Quattro Pete]

Originally Posted By: Artem
No, a 1998 Toyota Camry and two 2007 Civics.

LOL, yeah. Buying something that's supposed to be known for its reliability and then doubting it by purchasing an extended warranty would be funny. Alas, a Volvo S60R is nothing like a Camry or a Civic. When stuff breaks, it's usually very expensive to fix.

 

[CBR.worm]

I've never purchased a warranty for a Japanese car, or any electronics. We love to drive German cars and will purchase as much warranty as is reasonable. With our current BMW, the warranty has not been needed - 70k miles, 5 years and no issues. The last one, a different brand that we will not buy again, a $10,000 warranty would have saved us money before we got to 65k miles and 5 years old.

 

[hattaresguy]

Aftermarket warranties are usually a waste of the paper they are written on, I'd take back whatever you can from it.

Sounds like your in a bit over your head, who finances a $12k 9 year old car? I didn't think banks touched vehicles that old. Now your going to have to come to the closing with some money, very expensive way to own a toy for 12 months.

Anyway, dump the warranty, pay down the note and dump the car.

 

[Pop_Rivit]

Originally Posted By: gofast182
Originally Posted By: Pop_Rivit
You financed it because you couldn't afford it, and after a year you're either treading water with the value or upside down (depending on how you spin it with the warranty). Chances are when you sell it you'll need to bring cash to the table in order to unload the car.

...

Let's be careful not impugn people who finance cars as a whole because most people purchase cars in that manner. One can finance a car and be responsible about it, it's over-extending oneself that's the problem.


Not a chance-I'll always call into question people who lease and finance depreciating assets. Financing and leasing are foolish ways to buy/borrow cars, best left to those who aren't responsible enough to save for the purchase.

Just because "most people do it" doesn't mean it's a good idea.

 

[cchase]

Seems to me purchasing outright as opposed to say, financing a 0% APR loan, would be foolish.

Better to keep the cash yourself to invest as you see fit, while paying off the loan than to instantly remove all free cash from your finances.

You live in a very black-and-white world, Pop. It's not always correct.

 

[fdcg27]

Originally Posted By: cchase
Seems to me purchasing outright as opposed to say, financing a 0% APR loan, would be foolish.

Better to keep the cash yourself to invest as you see fit, while paying off the loan than to instantly remove all free cash from your finances.

You live in a very black-and-white world, Pop. It's not always correct.


We could have easily written a check for our '12 Accord, or even a couple of them.
We financed the car since I can easily beat the .9% rate offered with the money I kept in my pocket by not paying cash.
At one time, I thought exactly as Pop does.
I've come to realize that the opportunity cost involved in paying cash is not always worth it, since there are so many really cheap financing deals offered by captive finance arms.
It isn't just a matter of subsidizing sales, either, in that the automakers themselves may have few good alternatives for intermediate term investment of their free cash.
I might make an SDIRA contribution and buy some stock, while the average company is not likely to want to do that with cash on hand, especially since it can always securitize its loan book in whole or in part if it needs or wants to and it's only vulnerability is to increasing rates degrading the value of its loan book.
Does anyone see any large increase in interest rates over the next few years?
I don't.
The OP bought a car he wanted and financed it to avoid tying up cash.
The OP should carefully consider the condition of the car in pricing it.
If the car really is a creampuff, then it's worth more than some price guide might indicate.
Used car values are all about condition.
A car in premium condition will bring a premium price.
I'd dump the extended warranty, get back what you can from it and then price the car at a level appropriate to its mileage and condition.
If the car really is all that, I'd make this very clear in any ad since while any car can be reconditioned, a good original car is always a better bet IMHO.
Finally, there is nobody among us who can honestly say that they've never made a purchase they didn't later come to regret.