Don't buy a new car to get better gas mileage

[93dx_hatch]

@BrockwayMT

The point is people don’t look at cost per mile, and that is the important part (or maybe cost per hour if you plow snow or are an inner city taxi or something). For most people who don’t drive a lot of miles it’s cheaper to drive a car or truck that’s paid for and gets 15mpg than to spend $20,000 on a new car that gets 30. 20g with tax interest, new title, insp, tire tax, etc. costs you 25 thousand and change. At $3.50 that is 7143 gallons which will take you 107,000 miles in your 15mpg vehicle. If you subtract $5000 for maintenance of the 15mpg vehicle you can still drive it 85000 miles in five years and be money ahead. Obv for the person who drives 60k per year this doesn’t work out. However for the average person at 12,000 miles per year it does.

I agree with this but you are leaving out the value of the 15mpg if its traded in. Its not like your 15mpg car is worthless

[snowracer101]

not getting into leasing…but buying used vs. buying new.

My dad was looking at a escalade. he could have got a used 07 loaded for $46,000 with 10K miles. He has awesome credit and he still got a 7.x% interest rate.

If he bought a left over 07 same options it woulda been $56,000. 0% financing for 60mo.

His payments on the new escalade were CHEAPER than the used.

Basically if you are going to buy used…don’t finance anything over $15K. It’s just not worth it with interest rates.

[Dlucas]

@sedlmeier101

not getting into leasing…but buying used vs. buying new.

My dad was looking at a escalade. he could have got a used 07 loaded for $46,000 with 10K miles. He has awesome credit and he still got a 7.x% interest rate.

If he bought a left over 07 same options it woulda been $56,000. 0% financing for 60mo.

His payments on the new escalade were CHEAPER than the used.

Basically if you are going to buy used…don’t finance anything over $15K. It’s just not worth it with interest rates.

The payments on the new escalade are cheaper, obviously due to his lower rate. However, he’s going to take a bigger hit in depreciation buying new, however…it will equal itself out being @ 0%.

You could have an 800+ credit score, you will never see a rate under 7%, unless its from a credit union. Rates went up considerably after Hurrican Katrina.

[Dlucas]

@Joe

:picard: 0 equity > negative equity, which is what you usually end up with if you buy a new car and are looking for lease type payments.
For example, my truck stickered for 41k. I put 0 down, leased for 3 years @ $330 a month. At the end of my lease, I will have spent a total of $11880 on payments, minus the interest income I have on that money chilling in my bank account at 5%, instead of being long gone. Say 11,000 to be very conservative. It’s actually a good deal lower than that.
At the end, instead of trying to go to 800 different places to haggle on trade in values and still getting shafted, I drop it off and negotiate from scratch. Any interest paid on a car note notwithstanding, show me where I’d be able to get 30k on trade for my truck in 3 years and I’d be damn impressed.

For that matter, show me ANY $40,000 car, new or used, that I could drive around for 3 years without coming up with any money up front, for less than $11,000, and how. I dare you.

I’ll save my equity for appreciating assets, thanks.

Thank you for basically suming everything I’ve said in this thread in one post. :tup:

If you finance a car over $40,000, you’re a fucking idiot. (assuming you put little to nothing down)

[AngryHero]

I find leasing a car if you are young to be stupid.If your older and have the money then its a different story.

[Dlucas]

@87conquestTSi

I find leasing a car if you are young to be stupid.If your older and have the money then its a different story.

Leasing when young = stupid? Why? Do you know what you’re talking about? It’s when you are old and rich you should be buying cars straight cash.

[AngryHero]

It seems to me you should be saving up for a house and buy a 1k car and drive it into the ground.Thats like 3-4 months of payments on a lease and i could turn around and sell the car for about the same in a couple years.Not much maintenence is required if you have a basic idea of what you are doing.

[theblue]

well, you have to also factor in opportunity cost.

you should be out taking chances with jobs and buying fast cars when young… not chaining yourself down to mediocrity (which is what is happening if you have to drive a shit car just to own a house).

[Dlucas]

@theblue

well, you have to also factor in opportunity cost.

you should be out taking chances with jobs and buying fast cars when young… not chaining yourself down to mediocrity (which is what is happening if you have to drive a shit car just to own a house).

Seriously…Who wants to invest in something with a financial return and potential equity with every dollar you invest in it? :uhh:

Do you have your own house? How old are you?

[theblue]

you just twisted my words to imply that I said owning a house is bad. I said no such thing, read again.

I’m 28 - and only now am I ready to start looking for a house because the reasons are right (not leaving the area for 5+ years, steady GF, good job).

I’ve got a pretty healthy 401K as a result of not having house payments.

[Dlucas]

@theblue

you just twisted my words to imply that I said owning a house is bad. I said no such thing, read again.

You said to buy fast cars when young…because its stupid to buy a house and drive a shit car…right?

[AngryHero]

@theblue

well, you have to also factor in opportunity cost.

you should be out taking chances with jobs and buying fast cars when young… not chaining yourself down to mediocrity (which is what is happening if you have to drive a shit car just to own a house).

So why mod a lease?I havent exactly been saving up for a house either.Iv put the money into a different car instead.

[theblue]

I said it was stupid to buy a house if you have to give up everything else just to be a home owner.

If you can’t afford a nice car and a nice house at the same time then you’re not doing so hot at work and should focus on making more money.

[AngryHero]

@87conquestTSi

I find leasing a car if you are young to be stupid.If your older and have the money then its a different story.

@Dlucas

Leasing when young = stupid? Why? Do you know what you’re talking about? It’s when you are old and rich you should be buying cars straight cash.

@Dlucas

Seriously…Who wants to invest in something with a financial return and potential equity with every dollar you invest in it? :uhh:

Do you have your own house?

@Dlucas

You said to buy fast cars when young…because its stupid to buy a house and drive a shit car…right?

I guess i still dont know what im talking about then when you shouldnt lease when young.I believe you just contradicted yourself a bit there.

[Joe]

@87conquestTSi

It seems to me you should be saving up for a house and buy a 1k car and drive it into the ground.Thats like 3-4 months of payments on a lease and i could turn around and sell the car for about the same in a couple years.Not much maintenence is required if you have a basic idea of what you are doing.

what if you already own a house/ don’t want to drive a shit car?

[Justin]

This thread is littered with bad advise.

[AngryHero]

@Joe

what if you already own a house/ don’t want to drive a shit car?

I said for young people.I was thinking of young as 17-25ish.More towards the lower end of that spectrum.

[snowracer101]

I can talk about the leasing a bit.

I leased a 2002 jaguar x-type. I put like $2500 down and my payments were $200 a month for 24 months.

So essentially I paid $7300 to drive a decent AWD car for 2 years.
I ended up getting out of the lease though because I had 12K miles a yr and I was doing 12K miles in about 8 months.

Leasing is good on some cars (mostly domestics) because you don’t have to worry about selling the car and taking a huge hit, also you can negotiate the lease too.

My friend leased a f150 4x4 extended cab STX for $1,500 down and $58 a month. that is a danm good deal

[VANDIT]

@theblue

I said it was stupid to buy a house if you have to give up everything else just to be a home owner.

If you can’t afford a nice car and a nice house at the same time then you’re not doing so hot at work and should focus on making more money.

agreed…

[VANDIT]

@sedlmeier101

I can talk about the leasing a bit.

I leased a 2002 jaguar x-type. I put like $2500 down and my payments were $200 a month for 24 months.

So essentially I paid $7300 to drive a decent AWD car for 2 years.
I ended up getting out of the lease though because I had 12K miles a yr and I was doing 12K miles in about 8 months.

chances are you did not put 2500 “down”

chances are you used that 2500 to cover taxes and other itemized fees, and there was a smoking deal for that month on specific jags just like there is everywhere, every month… and the 2500 WAS NOT “DOWN” money(cap cost reduction) people get these confused all the time…

and really you gave UAC 7300 + (cost to get out of lease early) unless somehow that moneys was worked into a new deal (not uncommon) to drive a car for a couple months :tdown: