Depriciation on buying new cars?

Question

Do you lose more money buying a new car every two or three years than if you keep a car for many years and having to pay for increasing maintenance and repair costs?

Answer 1

New cars drop nearly 20% in value the SECOND you sign the dotted line. In four years you have lost over 40% of the value that you will NEVER recover. Example: say you bought a car for $20,000.00. Four years later it's worth (maybe) $12,000.00. Do you honestly think you would have spent over $8,000.00 in repairs on a used car? Not even if you bought a clapped-out Kia Rio. Always buy a four year old car that has been well maintained, stuff a savings account with about $2,000.00 and you now have a good car that will likely take you anywhere you would ever want to go and an instant warranty sitting in the bank, (you will seldom see ANY major repair that will exceed two grand on a decent car). One last note: leasing is the worst deal you can possibly make -- an absolute money pit for three to fours years that you get zero in return except the status of being seen driving a new car. Of course your status may fall somewhat when you have to return it to the dealer at end of lease and walk home with NOTHING. Just remember, no car is an investment. They ALL go down in value like a rock. Why not let some other dope take the hit?

Answer 2

Let me give you an example:

I bought a 1986 Pontiac Parisienne Brougham in 1994, and I paid $ 5000. It was a really nice one. I am still driving it today, and it now has 292.000 miles on the clock. In the past 12 years, I had to replace two starters ($ 200 + $ 200) and needed to rebuild the engine once ($ 3200), replaced the fuel pump ($ 450), and a transmission linkage ($250). All big repairs as anyone would agree.

So I spent a total of $ 9300 on buying and fixing this car over the past 12 years, and all the repairs were done professionally by mechanics while I ws siting pretty, sipping a Cappuccino.

Let's do the math for a new car:

Say, buy a brandnew Chevrolet Caprice these days (it's the same car, essentially), $ 35.000. Sell it in 3 years for about $22.000 if you're very lucky, do his 4 times in 12 years, and you've spent $ 52.000, if you sell the car. If you keep it, you will have sunk 74.000.

Sounds like more than my 9.300, doesn't it?

Answer 3

The numbers could be worked in favor of either side. If you can afford to trade every 2 to 3 years you normally get the best service from the dealerships. On the other hand, I personally do not like dealerships and tend to grow attached to the vehicle I am driving as long as it gives me good service.

Answer 4

you're going to lose money regardless! If it's going to cost the same in repairs and maintenance then you may aswell update your car more often

Answer 5

yes and no you always lose money on cars its the worst investment ever.But can you do maintenance your self? if no the best thing for you will be to bay a new one every 2 or 3 years

Answer 6

good answer Tahini, you are saving lots of money, but unfortunately you are driving a **** box. Lease a car, you get a brand new one every three years, you spend money but get many benefits for it.

newest safety features.
newest convenience features.
more power.
better gas mileage.
never out of warranty.
nice driving car.
a nice car overall.