Is it Better to Buy a Used Car or a New Car
Author: damnage
Posted: Wed Jul 27, 2005 5:15 pm
Post subject: Is it better to buy a used car or a new car
Hmm...cars. Such a necessary evil. I sold cars for over five years and worked in the F&I (Finance and Insurance, yes, I've seen thousands of people's CRs) department for two dealerships over two years. I swore I would never buy a new car.
However, with the low finance rates offered by manufacturers today it has me thinking. It really has me thinking because I drive a mere 8K-10K per year. So when I look at a two year old car with 25K miles on it I'm seeing three years of use already on the car.
In crunching the numbers on some vehicles I've been considering new versus used and it comes out to mere $25-$30 per month difference per month on similar terms. It's that close due to about a 3-4 percentage point difference in new versus used loan rates.
So...a two year old car with one year of warranty and three years worth of mileage (for my average driving habits) or a brand new car with three years of warranty and under 100 miles. It gets interesting.
I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.
Just my .02
Author: PFFrank
Posted: Thu Jul 28, 2005 1:29 pm
Post subject: Suze Orman's on Used Cars
damnage wrote:
I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.
"Car" and "Investment" should never be used in the same sentence (unless of course you're a collector of classic cars )
I always like to call them "depreciating liabilities" to really hammer home their proper place in my personal net worth statement.
Author: maddybeagle
Posted: Fri Jul 29, 2005 6:34 pm
Post subject: Suze Orman's on Used Cars
yeah, suze said that and got me thinking and I think she actually has something going there and capital gains and dividend taxes are currently LOWER than ordinary income taxes. If that continues (as I think it will), 401ks will still have their place, but maxing them out may not be the smart more for everyone.
I dont like her GM commericals, kinda selling out>
Board Monitor
Posted: Sat Jul 30, 2005 5:32 pm
Post subject: Suze Orman's on Used Cars
I found the GM commercials to be interesting. Although I don't condemn her for doing them, I bet she probably regrets it considering all of the negative publicity that she has gotten.
_________________
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Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Posted: Wed Jul 27, 2005 5:15 pm
Post subject: Is it better to buy a used car or a new car
Hmm...cars. Such a necessary evil. I sold cars for over five years and worked in the F&I (Finance and Insurance, yes, I've seen thousands of people's CRs) department for two dealerships over two years. I swore I would never buy a new car.
However, with the low finance rates offered by manufacturers today it has me thinking. It really has me thinking because I drive a mere 8K-10K per year. So when I look at a two year old car with 25K miles on it I'm seeing three years of use already on the car.
In crunching the numbers on some vehicles I've been considering new versus used and it comes out to mere $25-$30 per month difference per month on similar terms. It's that close due to about a 3-4 percentage point difference in new versus used loan rates.
So...a two year old car with one year of warranty and three years worth of mileage (for my average driving habits) or a brand new car with three years of warranty and under 100 miles. It gets interesting.
I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.
Just my .02
Author: PFFrank
Posted: Thu Jul 28, 2005 1:29 pm
Post subject: Suze Orman's on Used Cars
damnage wrote:
I would have to agree with Suze though that new cars, heck almost any car, is a bad investment. I mean is it fair to call it an investment? I always hated to use that term with customers.
"Car" and "Investment" should never be used in the same sentence (unless of course you're a collector of classic cars )
I always like to call them "depreciating liabilities" to really hammer home their proper place in my personal net worth statement.
Author: maddybeagle
Posted: Fri Jul 29, 2005 6:34 pm
Post subject: Suze Orman's on Used Cars
yeah, suze said that and got me thinking and I think she actually has something going there and capital gains and dividend taxes are currently LOWER than ordinary income taxes. If that continues (as I think it will), 401ks will still have their place, but maxing them out may not be the smart more for everyone.
I dont like her GM commericals, kinda selling out>
Board Monitor
Posted: Sat Jul 30, 2005 5:32 pm
Post subject: Suze Orman's on Used Cars
I found the GM commercials to be interesting. Although I don't condemn her for doing them, I bet she probably regrets it considering all of the negative publicity that she has gotten.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
posted by CardRatings.com at 12:08 PM
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