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Old 08-27-2013, 08:19 AM   #1096
acesandeights
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Quote:
Originally Posted by eakins View Post
Thanks.

So based on Edmunds, 9%, not 30%.

After one year/15,000 miles it's 19%, still not 20%, 25% or 30%. It's only lost 37% after five years and 75,000 miles, hardly 30% the minute you drive it off the lot.

Also, you've driven the vehicle for a year (or more depending on the example), which has to be worth something if you enjoy the new car smell. If you look at buying a vehicle one or two years old, you still take a significant depreciation hit as the second buyer, 10%+ each year you own the vehicle as a second owner for the first few years.

The key to buying a vehicle is buying new, close to invoice, with significant rebates and driving it for 10+ years. The stupid thing is buying a vehicle that is a couple years old and keeping it less than five years.
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Old 08-27-2013, 11:10 AM   #1097
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Originally Posted by acesandeights View Post
Thanks.

So based on Edmunds, 9%, not 30%.

After one year/15,000 miles it's 19%, still not 20%, 25% or 30%. It's only lost 37% after five years and 75,000 miles, hardly 30% the minute you drive it off the lot.

Also, you've driven the vehicle for a year (or more depending on the example), which has to be worth something if you enjoy the new car smell. If you look at buying a vehicle one or two years old, you still take a significant depreciation hit as the second buyer, 10%+ each year you own the vehicle as a second owner for the first few years.

The key to buying a vehicle is buying new, close to invoice, with significant rebates and driving it for 10+ years. The stupid thing is buying a vehicle that is a couple years old and keeping it less than five years.


New car lets say $26,000 taxes, freight everything out the door.
10 years from now with 150,000 miles what's it worth? $3,000...
Cost to drive somewhere around $23k.

Now....
Two year old same car all taxes in $19,000. Drive it for 5 and sell, probably still worth approx $5,000.
Cost of ownership somewhere around $14k.

Savings by buying 2 year old car approx. $9,000.

This is supposing a cash buyer. Obviously the difference would be even greater for financing unless it is 0%.

The key to buying anything that depreciates like a stone is to decide for yourself what it is worth to yourself and accept the fact it is going to cost much $'s.
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Old 08-27-2013, 11:23 AM   #1098
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Originally Posted by Red9 View Post


New car lets say $26,000 taxes, freight everything out the door.
10 years from now with 150,000 miles what's it worth? $3,000...
Cost to drive somewhere around $23k.

Now....
Two year old same car all taxes in $19,000. Drive it for 5 and sell, probably still worth approx $5,000.
Cost of ownership somewhere around $14k.

Savings by buying 2 year old car approx. $9,000.

This is supposing a cash buyer. Obviously the difference would be even greater for financing unless it is 0%.

The key to buying anything that depreciates like a stone is to decide for yourself what it is worth to yourself and accept the fact it is going to cost much $'s.
Using your numbers:

New:
$23k to drive 150,000 miles in 10 years = $.15 per mile depreciation.
Used:
$14k to drive 75,000 miles in 5 years = $.19 per mile depreciation.

Sounds like the new car is a better deal!
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Old 08-27-2013, 11:28 AM   #1099
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Except you're ignoring the link Eakins provided showing the initial depreciation to be significantly less than what you're showing. Also, you're ignoring the fact the original owner in your example owned the vehicle for ten years and the second owner owned it for five. The second owner still needs to buy another vehicle for the other five years.

Your first example shows it cost that person $23k for ten years and the second example shows it cost that person $14k for five years. So, the second person has a cost of $14k every five years and the first person has a cost of $23k over ten years. Looks like the second person is losing an extra $5k over that ten year period. Not to mention you're using way too much depreciation of the two year old vehicle.

What your example really shows it is pays to buy a new vehicle and keep it at least ten years. Costs significantly less than buying a year or two old vehicle and keeping it for five years.

Edited to add: MacNoob beat me and probably explained it better. I also forgot the smiley.
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Old 08-27-2013, 11:31 AM   #1100
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Quote:
Originally Posted by MacNoob View Post
Using your numbers:

New:
$23k to drive 150,000 miles in 10 years = $.15 per mile depreciation.
Used:
$14k to drive 75,000 miles in 5 years = $.19 per mile depreciation.

Sounds like the new car is a better deal!
Never mind the miles, by his own numbers he's claiming $23,000 for ten years versus $14,000 for five. Then saying it's a $9,000 savings! Maths are hard.

David B.
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Old 08-27-2013, 11:33 AM   #1101
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Originally Posted by Red9 View Post


New car lets say $26,000 taxes, freight everything out the door.
10 years from now with 150,000 miles what's it worth? $3,000...
Cost to drive somewhere around $23k.

Now....
Two year old same car all taxes in $19,000. Drive it for 5 and sell, probably still worth approx $5,000.
Cost of ownership somewhere around $14k.

Savings by buying 2 year old car approx. $9,000.

This is supposing a cash buyer. Obviously the difference would be even greater for financing unless it is 0%.

The key to buying anything that depreciates like a stone is to decide for yourself what it is worth to yourself and accept the fact it is going to cost much $'s.
Wow, that's awesome. So in the next five years, you could do the same thing again, and save another $9,000! That's $18,000 in saving over ten years time, right? I mean, those are your numbers up above.

David B.
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Old 08-27-2013, 11:59 AM   #1102
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Wow, that's awesome. So in the next five years, you could do the same thing again, and save another $9,000! That's $18,000 in saving over ten years time, right? I mean, those are your numbers up above.

David B.

You got me...
I wasn't thinking about the keeping of it for 10 years.

Then.... of course you would have to take into account the cost of maintaining a 7-10 year old car which would likely make it much closer $ wise anyhow.
And who the fuck wants to drive a 10 year old car?
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Old 08-27-2013, 12:26 PM   #1103
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Originally Posted by Red9 View Post
You got me...
I wasn't thinking about the keeping of it for 10 years.

Then.... of course you would have to take into account the cost of maintaining a 7-10 year old car which would likely make it much closer $ wise anyhow.
And who the fuck wants to drive a 10 year old car?
I have a 97 Silverado. LOVE IT. I really hate the gigantosaurous trucks all the manufacturers are making today. And my 16 year old truck gets just as good of gas mileage as the new ones do.
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Old 08-27-2013, 12:37 PM   #1104
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I have an 02 Acura, still in great shape and I don't mind driving it a bit.
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Old 08-27-2013, 01:52 PM   #1105
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Quote:
Originally Posted by Red9 View Post


New car lets say $26,000 taxes, freight everything out the door.
10 years from now with 150,000 miles what's it worth? $3,000...
Cost to drive somewhere around $23k.

Now....
Two year old same car all taxes in $19,000. Drive it for 5 and sell, probably still worth approx $5,000.
Cost of ownership somewhere around $14k.

Savings by buying 2 year old car approx. $9,000.

This is supposing a cash buyer. Obviously the difference would be even greater for financing unless it is 0%.

The key to buying anything that depreciates like a stone is to decide for yourself what it is worth to yourself and accept the fact it is going to cost much $'s.
Does not compute! ... By your numbers, you'd have to do the 5-year ownership of a used-car thing twice instead of a new car for 10 years. So you're talking $28K for two used cars over 10 years v's $23K for a new car. If you finance the used cars, probably at a slightly higher rate, then the difference becomes greater still.

I don't want or need a $26K car so my formula went something like:
Buy new car for $10.5K
Drive for 18 years and 140,000 miles. Still going strong. Still probably worth $1500 - $2K. Cost of ownership per ten years is under $4,750, or depreciation at $0.06/mile (BTW, it also gets 23mpg and has cost less than $2000 total for ALL maintenance, repair, tires, etc. over that time.)

That car was financed (has been paid-for for 14 years ). My next car will be ~10 years old and under $6K cash. I will probably keep it for another five to ten years and if I lose $5K, I won't be disappointed.
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Old 08-27-2013, 02:37 PM   #1106
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Does not compute! ... By your numbers, you'd have to do the 5-year ownership of a used-car thing twice instead of a new car for 10 years. So you're talking $28K for two used cars over 10 years v's $23K for a new car. If you finance the used cars, probably at a slightly higher rate, then the difference becomes greater still.

I don't want or need a $26K car so my formula went something like:
Buy new car for $10.5K
Drive for 18 years and 140,000 miles. Still going strong. Still probably worth $1500 - $2K. Cost of ownership per ten years is under $4,750, or depreciation at $0.06/mile (BTW, it also gets 23mpg and has cost less than $2000 total for ALL maintenance, repair, tires, etc. over that time.)

That car was financed (has been paid-for for 14 years ). My next car will be ~10 years old and under $6K cash. I will probably keep it for another five to ten years and if I lose $5K, I won't be disappointed.

I already admitted red-faced to not taking into account keeping the car for 10 years in my numbers...

You wasted a good rant.
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Old 08-27-2013, 03:30 PM   #1107
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Originally Posted by slartidbartfast View Post
Does not compute! ... By your numbers, you'd have to do the 5-year ownership of a used-car thing twice instead of a new car for 10 years. So you're talking $28K for two used cars over 10 years v's $23K for a new car. If you finance the used cars, probably at a slightly higher rate, then the difference becomes greater still.

I don't want or need a $26K car so my formula went something like:
Buy new car for $10.5K
Drive for 18 years and 140,000 miles. Still going strong. Still probably worth $1500 - $2K. Cost of ownership per ten years is under $4,750, or depreciation at $0.06/mile (BTW, it also gets 23mpg and has cost less than $2000 total for ALL maintenance, repair, tires, etc. over that time.)

That car was financed (has been paid-for for 14 years ). My next car will be ~10 years old and under $6K cash. I will probably keep it for another five to ten years and if I lose $5K, I won't be disappointed.

Must be nice. My 4 year old car already has 139K miles on it. But on the flip side, my 16 year old truck just rolled over 112K.
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Old 08-27-2013, 03:45 PM   #1108
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Must be nice. My 4 year old car already has 139K miles on it. But on the flip side, my 16 year old truck just rolled over 112K.
LOL! No shit. I bought my Toyota in 2005. Between having a company truck and the bikes I didnt drive it hardly at all for about 3.5-4 of those years and I still put on 240k miles.
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Old 08-27-2013, 03:54 PM   #1109
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Originally Posted by slartidbartfast View Post
...
Still going strong. Still probably worth $1500 - $2K. Cost of ownership per ten years is under $4,750, or depreciation at $0.06/mile (BTW, it also gets 23mpg and has cost less than $2000 total for ALL maintenance, repair, tires, etc. over that time.)

That car was financed (has been paid-for for 14 years ). My next car will be ~10 years old and under $6K cash. I will probably keep it for another five to ten years and if I lose $5K, I won't be disappointed.
Just wondering why you wouldn't buy new again. Seems $4,750 is less than $5,000, likely with less maintenance on the new vehicle, better mileage, better safety and free $100 bills in the glovebox (ok, that last part is made up).
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Old 08-27-2013, 03:57 PM   #1110
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Just wondering why you wouldn't buy new again. Seems $4,750 is less than $5,000, likely with less maintenance on the new vehicle, better mileage, better safety and free $100 bills in the glovebox (ok, that last part is made up).
Think hes saying that HIS car is $4750 per 10 years. Not a new one.
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