New Forester or not- Does my math make sense?

[mrsilv04]

Originally Posted By: Spector
Depreciation over 3 years is almost always in the 40-50% range on most cars. New cars have to be kept 10 years to make a purchase worthwhile whereas a 3 year old has a huge chunk of the depreciation already gone and a low mileage 3 year old car is a no brainer for cost effectiveness


A Subaru Forester or Outback won't depreciate by 40-50% in the first three years. It just doesn't happen.

 

[cptbarkey]

blow the head gasket and sell it to me

 

[MK2]

If you can afford it meaning paying your monthly expenses and still still able to put enough on your savings account, then get the car that you like.

If that's not possible, stick with your old and reliable Forester. Actually, I don't really consider an 03 Subaru to be old. Depending on your age, but personally, I'd just keep and maintain your current car, dress it up a little bit to feel better.

 

[k24a4]

Originally Posted By: Joe1


Depreciation:

6500-3000= 3500 more for new car over three years

Insurance: 1800 additional for new car for 3 years

Repairs: -1800 less with new car

Gas: -300 less with new car over 3 years

Lost investment Income: 1500 more for new car

+3500
+1800
-1800
-300
+1500
Total: 6500 more for new car over 3 years or 180 a month for 36 months.

.


Did I miss something, when I total those numbers I get $4700, not $6500.

The 2014 may have teething issues as a first year vehicle for the new generation. No need to be a guinea pig if you don't have to be.

That said, I really really really like the 2014 Forester. According to reviews it seems better than the previous gen in all important areas-it is roomier, and more refined, has better accommodations and materials in the cabin, a more efficient powertrain and...an available 6-manual. If I were ever to scratch my itch for a new car, this might be the one. But I have vowed to keep the Accord, and I'll hold to my word....for now.

 

[rjundi]

The older Forester definitely leaves lots to be desired except in winter conditions. I understand the itch.

You will typically save more money driving an older vehicle long as possible if it has reasonable care and some luck.

My mom is running around in a 2000 Forester/150k miles she has talked about getting rid of since 2008. She keeps driving it.

 

[KitaCam]

I'm at the other end of the deal....I just bought an 05 Camry with 100k miles for $7,000 out the door...trade in value was $6500 and came with a new clutch...

It runs like it just rolled off the showroom floor...it's costing me $30/month more than my old/killed car, plus any unanticipated repairs I hope don't occur for the next 2-4 years when my payments (borrowed $5k, 48mos @ $111/mo.) are up...it should run 10 years and to 200k miles with basic PM.

My Camry feels to me like a new Forester feels to you, I bet, and we buy cars for what they make us feel...

 

[k24a4]

Originally Posted By: KitaCam


It runs like it just rolled off the showroom floor...it's costing me $30/month more than my old/killed car, plus any unanticipated repairs I hope don't occur for the next 2-4 years when my payments (borrowed $5k, 48mos @ $111/mo.) are up...it should run 10 years and to 200k miles with basic PM.

My Camry feels to me like a new Forester feels to you, I bet, and we buy cars for what they make us feel...


Have to agree with this, when taken care of today's cars age very very well. My 8.5 yr Accord drives like new. Hopefully things don't go south all at once....

 

[Bill in Utah]

Originally Posted By: mrsilv04
Originally Posted By: Spector
Depreciation over 3 years is almost always in the 40-50% range on most cars. New cars have to be kept 10 years to make a purchase worthwhile whereas a 3 year old has a huge chunk of the depreciation already gone and a low mileage 3 year old car is a no brainer for cost effectiveness


A Subaru Forester or Outback won't depreciate by 40-50% in the first three years. It just doesn't happen.


So true! Our 2007 we had it for around 4 years and 60k miles and lost a total of $2500. It and our Honda Accord have been amazing how well they kept their value.

The Corolla has been good too. We will not talk about the Caravans or the Taurus...

 

[VicVinegar]

I've done the same math with my Civic and decided to keep it, and get the timing belt done again. Even with an estimate of $2k in repairs this year (without the t-belt), and another $1k next year, it was still quite a bit cheaper over the next two years to keep the Civic. Plus in Virginia we have personal property tax on the cars. A new $20k car means about $400 a year in extra taxes. Or I can give that $400 to a mechanic.

Of course I'll qualify that by saying my Civic is still very reliable and most of my repairs have been gaskets, ball joints, and bushings that have simply worn out over 13 years and 206k miles. If it was a [censored] shoot if it was going to start on any morning, I'd look at the value judgement differently.

 

[Joe1]

I thought I'd update this thread 19 months later.

The Forester is at 158k miles. Here is a breakdown of costs incurred since 03/2013:

Jul-13 - New Serp belt, alternator belt and AC recharge performed at local independent shop: $300

Dec-13 - 4 New Bridgestone Ecopia tires from Costco: $470 OTD with rebate.

Oct-14: new spark plugs, wires, MT fluid, front and rear differential fluid, fuel filter, coolant system flush and fill,and replacement of leaky valve cover gaskets. $700 at local independent mechanic.

I've been changing oil and air filter myself during this time.

I was entertaining the thought of selling this vehicle as I was having difficulty getting it into 1st gear on occasion, it was also running a bit "rough" and was loud and "shaky".

However, after my recent $700 in repairs, it is now operating flawlessly. The tune up and fluid changes totally transformed this vehicle. I can't believe how quiet and vibration free it is now. It also accelerates smoooooothly.

The only issue is the AC compressor. The mechanic says something is wrong with it and that it will be more cost effective to recharge the system every year than to replace it.

I've put about $1500 into this vehicle over the last 22k miles which I do not consider to be an egregious amount. From a financial perspective, I believe I am ahead of where I would have been if I had purchased a new Forester in 03/13.

I've already replaced the timing belt @105k miles. With any luck, I may be able to hit 200k miles with it by doing oil and filter changes and front brake pads.

I had a "major" service performed at the Subaru dealership @ 125k miles. I find it hard to believe that it deteriorated so much in 30k miles which leads me to believe that they may have "forgotten" to perform some or most of the services I paid for. Needless to say, I won't be going back to the dealership again.

Overall, I have been happy with this vehicle for the 10 years I have owned it. It has been reliable, but I am slightly disappointed with having to replace the valve cover gaskets and the minor AC issues that have recently surfaced.

 

[fdcg27]

...and other than the tires, you could have done all of this work yourself for well under a hundred bucks in parts and supplies.
Even with what you spent, you're still ahead drving this old Subie over replacing it before it's actually done.
Subarus seem to hold up pretty well, although the Hondas we've had (eight) have held up better than the three Subies we've had the pleasure of owning.
OTOH, no Honda is anything like as nice to drive as an AWD Subaru on a nasty winter day.

 

[jimbrewer]

Sure. Don't forget that your depreciation cost for the past year was only around $600 or so as compared to maybe $3000. That may be a non-cash expense, but it's a real expense.

That said, I'd say your experience with this car is only average. They do make improvements over ten years and you are getting close to the end.

 

[rjundi]

I would double your repair fund for $1800 to $3600.

 

[Lolvoguy]

Originally Posted By: fdcg27

OTOH, no Honda is anything like as nice to drive as an AWD Subaru on a nasty winter day.


you can get the same effect for far cheaper by outfitting a honda with 4 snow tires

...true story

 

[SwampSurvivor]

Originally Posted By: Lolvoguy
Originally Posted By: fdcg27

OTOH, no Honda is anything like as nice to drive as an AWD Subaru on a nasty winter day.


you can get the same effect for far cheaper by outfitting a honda with 4 snow tires

...true story


Oh no! You started WWIII!

 

[Dave Hess]

I would rather buy a Toyota or Honda than a Subaru.

 

[Win]

Seems like a lot of arithmetic over something as inconsequential as a car.

If you want / need a new car, get one.

If you don't, then don't.

 

[rjundi]

Originally Posted By: Win
Seems like a lot of arithmetic over something as inconsequential as a car.

If you want / need a new car, get one.

If you don't, then don't.


Cars are expensive items. I learned from my parents to hang onto them and have achieved incredible financial success and have a nice home with 65% equity to show for it. Emotional decisions can be expensive.

 

[Lolvoguy]

Originally Posted By: Win
Seems like a lot of arithmetic over something as inconsequential as a car.

If you want / need a new car, get one.

If you don't, then don't.


this

there are far more important decisions in life than a car purchase

 

[supton]

Cars are the second most expensive thing one typically buys. I suppose one might stuff their house with things which would add up beyond a new cars value; but a car is the second most expensive single item most people buy. It also is the one item that depreciates the most over time.

It's totally worth the thought!