What is the best way to always have a young car?

Question

So do you buy brand new and change every year? Do you ever actually own the car or is this effectively renting...

Buy nearly new to avoid heavy initial losses...

Just lease a car, you get maintenance covered.

Total cost of ownership when considering running costs is not straightforwards, e.g a french car needs half as many services as a jap car...

Lots to consider..

Answer 1

The way i did it was.

I bought a brand new car kept it until I paid finance off then sold it then bought a nearly new but better car on finance
(i still had £3500 from first car)

Once i owned that it was sold as well (£6000 in the kitty)

Did the same with the third car (I think i had about £9000 now)

So by the 4th car (now by the way) I can either put a massive deposit down on something special. Or buy a car outright, use half of it, use some of the money to lower monthly repayments, or shorten the finance term.

this obviously took time 9 years to be precise! but now im in a position of being able to choose what to do. Not sure if you were looking for something a bit more short term than this!

Answer 2

Personally, I think most Americans buy brand new and change so often because they're doing the old "keeping up with the Joneses" thing. They don't NEED a new car every year or two or three; they WANT the shiny new yuppie-mobile for the pose factor.

They SAY it's best to have a newer car because newer cars have fewer problems than older cars that need work because of wear and tear, part failure, etc. However, if you get a new car that's a lemon, it spends just as much time in the shop (if not more) than an older car. While it's true that you will tend to spend more on an older car for maintenance, you also have to consider how much you'll save once you have paid the car off. Sure, it can get expensive when you have to replace tires, have a brake job, or even if you get into expensive engine repairs like replacing water pumps/alternators, etc., but having a car payment every month can be even more expensive.

You're right -- it's best to buy a car that's at least a year old if you're trying to be smart about spending money. The average new car drops at least $2,000.00 in value (sometimes more than that) as soon as you drive it off the lot. However, you can get good deals on new cars where you won't take a huge hit once you buy it. Best ways to do that are: (1) Buy at the end of the model year, when they're all on sale, (2) Buy one that has been sitting on the lot for a while, so the dealer is motivated to get rid of it -- they get incentives from the manufacturers for moving cars fast, (3) Buy through a friend or relative who works for the manufacturer and can get you on the A/X/Z plan, and (4) Buy when the companies are offering long-term financing at low rates or even zero percent interest.

Leasing can be a good option because monthly payments may be considerably lower than a purchase, and the maintenance is usually covered for the term of the lease. The catch is you can't drive a lease car much. Most car companies allow 12,000 miles a year at the most and charge you exhorbitant rates (25 cents a mile or more) for every mile the odometer is over the limit when you turn it in. This isn't practical for someone who uses the car primarily to and from work and has a lengthy commute.

You're also right that it's hard to predict how much you'll have to pay per year for maintenance. Again, some cars require less maintenance than others, but if you get a lemon or a car that has more problems than most (I had a Ford that was constantly blowing various bulbs and fuses, so THAT was a pain) it'll cost you more.

P.S.: My car is a 2001 Pontiac Grand Prix, which I bought brand new and got a GREAT deal on by paying cash, getting it on X plan, and buying one that had been sitting on the lot for a while. Don't intend to buy a replacement for at least another 3 years, and the next one is probably going to be something smaller, more fuel-efficient, and used.

Answer 3

I worked for an agency, titling vehicles....people who lease have to put down a downpayment of a few thousand first. Then they make payments for 3 years. At the end of the lease, you have the choice to buy out the lease, or turn it in.

If you buy it out, the leasing company signs their title over to you after you pay them for what the car is worth. AND you pay SALES TAX on the purchase price.

I can't believe how many people are shocked and angered by this. (During the lease, they fold sales taxes into your monthly payment) I have seen lease buy out prices between $10,000 and $25,000 normally, depending on the type of car.

If you turn in the lease, you can start another one, or just go out and buy another car. They will look to see how much you damaged the car, and there is always a clause in the contract that says you can't drive over x miles per year, or you will pay penalties.

I can tell you that about 75% of my customers got so upset about something about their lease, that they told me they would never lease again.

The next best thing you can do is buy a vehicle from a leasing company that is new, but it has been used. (it actually has a title and NOT a certificate of origin, which is like it's "birth certificate"), so you can buy it cheaper. Then every year, trust your dealer to give you another newer car in trade at a fair price.

BUT, if you have to have the latest greatest, well, a lease is all you can do.

Answer 4

Buy a used car , 1-2 years old, still under factory warranty.
Keep it two years and sell it out right or trade it in on another car with the same requirements.

Answer 5

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