2007-07-17 01:55:38 · 7 answers · asked by jay 1 in Cars & Transportation ➔ Insurance & Registration
I’ve never lost and somehow I always manage to at least break even. But I have to add that I try very hard to keep the mileage low and the car in almost perfect shape and negotiate for the best price and rate available. So far it’s worked well for me.
Good luck.
2007-07-17 03:19:41 · answer #1 · answered by deanspurrier 3 · 0⤊ 0⤋
I think so. Cars depreciate the most in the first year or two. You are basically using the car for the most expensive part of it's life cycle, and then getting rid of it when the cheaper part of its life cycle comes around. I think you have two options:
If you want to have a new car, buy whatever floats your boat automotive-wise that has a reputation for dependability, and drive it until the wheels fall off. My last car was replaced at about 165,000 miles, and my son is driving it now. The van before that had 175,000 miles on it when I sold it to another family member. In both cases, I paid for the cars in 3 years, and drove them for another 3 years before I got a replacement. (Yeah, I drive a lot of miles). I plan to keep my current truck for at least 6 years, maybe more.
If you're not worried about getting a new car, buy a used car that's maybe 2-3 years old, with low miles, and in good shape. Do your homework to find reliable makes, and be willing to shop around and haggle a bit. Then have a mechanic check it over, and consider getting the carfax.com report on it.
I think the guys at cartalk.com have a guide on buying used cars. Check around at the site below and see if you can find it. It might cost you a few bucks, but it'll save you hundreds, maybe thousands.
2007-07-17 02:05:21 · answer #2 · answered by Ralfcoder 7 · 1⤊ 0⤋
It depends on what type of payment arrangment you have. If you pay for the car in full or get three or four year loans, probably not as you are able to catch up to the negative equity caused by depreciation. Longer loans do not enable you to catch up with the negative equity and that gets rolled into the new loan and you definately start to lose money with each trade.
2007-07-17 02:04:27 · answer #3 · answered by Sane 6 · 0⤊ 0⤋
Unless you have the money to pay cash for a car, buying using financing is silly. At the end, you'll have spent more on financing than the car is worth.
Buy items that appreciate. Lease the ones that depreciate.
2007-07-17 02:04:49 · answer #4 · answered by David 2 · 0⤊ 0⤋
The best value in driving cars is to buy a used car in good condition. If you like to drive newer cars, just buy one that is a year old and in great condition, and drive it until you feel its worth it to you to upgrade again.
I do it that way and when I find a car I like that seems to be low maintenance, I tend to drive them a long time very happily. If the car is troublesome, just sell it and get another one. The original owner is the one who takes the big depreciation hit.
2007-07-17 02:01:48 · answer #5 · answered by John M 7 · 2⤊ 0⤋
you always lose money trading cars as they are an item that depreciates in value
2007-07-17 02:00:20 · answer #6 · answered by bungee 6 · 2⤊ 1⤋
well duh....yes...many thousands
2007-07-17 01:59:52 · answer #7 · answered by Anonymous · 1⤊ 1⤋