Unless you are very wealthy and can absorb the depreciation, why would you buy a new car vs. a car that is a couple of years old? The statistics show the average car depreciates around 60% in the first four years. Why are people so willing to go sign for a new car and then literally lose thousands of dollars in depreciation as they drive it off the lot? This seems pretty clear cut to me but there must be some rationale for so many people to actually go do this. Thanks for your comments!
2007-10-22 14:56:54 · 8 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Because you have a strong brain and those TV Ads are not hurting your brain but most people have a weak brain and they hear all the time inside their heads "I must buy that cool car", "I gotta have this new car" and so on.
Some people even buy their cars with car loans. Can you believe that?
They are working very hard for the Germans, French, Italians and Japanese while the they are resting at their beaches.
They see a $19,999.00 USD car on TV but they end up paying $39,999.00 USD after a few years.
Sad but true.
2007-10-22 17:26:06 · answer #1 · answered by Anonymous · 0⤊ 4⤋
Clearly somebody has to buy a new car. I buy new cars. Usually from the same dealer so I can build more clout. New car pricing is a highly efficient market so it is easy to get the same price as everyone else is paying within a few dollars. Then I maintain them properly and get about 150K miles without unexpected breakdowns that would leave me stranded by the road. I also own several vehicles so I can drive to appropriate one for the application. A truck for hauling. A minivan for kids and vacations. A small car for routine local driving (save gas). That's what I do and I'm not even rich.
2007-10-22 18:20:13 · answer #2 · answered by Marlin B 2 · 0⤊ 0⤋
The 2 biggest reasons are status-symbols and reliability.
For many people, a new car isn't just a means of transportation, it is a way to show others you're doing well financially. Perhaps you think it's silly or vain or wasteful to buy a new car, but you might buy all new clothes instead of shopping at thrift stores for used clothes. It's really no different.
Also, new cars are more reliable because they have fewer miles on them, and therefore you will get more use out of them and have lower maintenance costs. New cars also come with better warranties than used cars, which also reduces maintence costs.
2007-10-22 15:12:39 · answer #3 · answered by DirtyFrank 3 · 4⤊ 1⤋
What you need to ask your self is; what is that this going to price you finally? You are watching at a $2400 fix for a tight auto with simplest eighty,000 and relativly more recent mannequin. after it's performed it is going to on the whole be nice and pushed with out disorders for a whilst except you're discovering extra to be improper. even supposing you offered it as is, you could get at so much $2000 for the auto. so if you are taking the 2400 and 2000 you've gotten 4400 to spend on a brand new used auto. A $4400 auto isn't the finest on the planet. you're watching at purchasing a older mannequin, ninety eight or older, with greater mileage. as that stands, you're watching at disorders even quicker once more along with your new used auto, and for that reason going to need to spend more cash solving that, considering that you'll by no means purchase a used auto with no need to repair anything. So, i could say repair the auto in your 2400, and be performed with repayments. That is the nice factor, not more repayments. so, relying on what your per thirty days cost used to be, you would nonetheless be saving more cash via repairing it. ask your self how a lot have you ever stored when you consider that the repayments have been completed, does it outweigh what the maintenance might be? simply what i feel will have to be performed.
2016-09-05 20:32:57 · answer #4 · answered by belk 4 · 0⤊ 0⤋
Because sometimes people don't do the most financially prudent thing. I'm sure you don't either sometimes. Have you eaten out at a restaurant within the past month? Well eating in is cheaper, but you went out because that meal had a value to you. To some people a new car has value to them and is worth spending their money. That's what makes capitalism successful. You can spend your money the way you want.
2007-10-22 15:11:21 · answer #5 · answered by Jay P 7 · 3⤊ 1⤋
this has been the trend ever since the end of WW2 new models with new doodadds and bigger engines..but now they are getting so complicated that it is easyer to buy new and trade at 50000..basicly you have a car payment the rest of your days ..but if yer smart there are great deals out there,,this is way the car sales are down people are keeping them longer
2007-10-22 15:09:55 · answer #6 · answered by goat 5 · 1⤊ 0⤋
Because they cant find a used car with the options they want or they want to seem rich and show off to their friends.
2007-10-22 15:10:06 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Because there's nothing like a shiny new mustang!!!!!
2007-10-22 15:06:47 · answer #8 · answered by Anonymous · 2⤊ 0⤋