Is buying a NEW CAR a stupid thing to do?
 

My point is that we only lose money with a NEW CAR.

After 2 years, it lowers its value by 20-40%, depending on how much you use it. After 5 years, 50% or more.

New cars also require more expensive insurance, etc..

Why buy a new Car? Tell me a good reason, other than to "show off" or to get a VIP status in your social circle.

Why should anyone give you a good reason... It's up to YOU if you want to buy a new car or not...

Buy one thats 6 months old- might even still smell new :)

:2 cents:

Show off status only. One of my friends back in 97 bought a 94 used car for about 45% off, the used car looked basically new, had a few perks with it. He still has the car now and it?s still running great! Instead of paying 38k for it new, he got it for around 21k. I seriously don?t see any benefit in getting a brand new vehicle unless it comes with one helluva fucking good warranty from the dealer.

Lease all your cars...every 3 years, give it back...tax deduction, no worries of car problems and deprecation.....i havent been to a mechanic for almost 15 years

I don't want to deal with repairs. Cars in their first 2 years very rarely need anything more than an oil change.
WG

Used cars still depreciate the same as new cars until the 5-6 year mark.

Generally 3-4 years the car has lost 50% of the purchase price...less if you got yourself a good deal of course ;)

New car insurance is not always more expensive since it goes by number of cars of that model on the road, price, your age, type of car and other factors.

New cars generally don't fuckup until the 3-4 year mark.
Used cars cost more to maintain.

New cars are more fuel efficient.
Used cars generally are not.

You will lose money no matter what type of car you get.
Save your cash and get a friend to drive you :)

Agreed! It's actually smarter to lease if you set up your business right, and get a good deal on the price with a GRV :thumbsup :thumbsup

With gas prices going up what, 100% in the last 3 years? In 3 years you don't want to be one of the other 50 million americans trying to sell a gasoline car to.... wait.....who the heck would want it? your asset= byebye

Buying a brand new automobile is a ridiculous financial decision.
Period.

But hell if some sucker is making 1M clear he can actually go out and buy 100 grand worth of automobile without being all that stupid. But we all know that the average idiot out there lives in twice the house he can afford and makes more in auto / auto insurance payments than his house payment.


Follow the 10% rule I came up with. Your automobile should not cost more than 10% of your annual income. That means if you make 100 grand you buy a $10,000 car.... extreme idea, I know, but it use to be:
Common sense!

thats dumb. so someone making $100k/yr should drive a 95 accord? gimmie a fucking break

I asked what's the point in buying a new car, if we only lose money.

Troll.

It will cost you a grand per year tops, in insurance and maintenance/repairs. :winkwink:

If you buy a new car, dont buy it with the intention of selling it back.

Its all about feeling good, If you can hold your head high while driving a 97 Ford escort than so be it. I find it hard though to talk the big game I talk and then get into some junker. Normal people just dont understand why somebody with money drives a piece of crap car, they just all think you are full of crap. Even though I was taught to live in the most expensive home you can possibly afford but drive the cheapeast car you can find (the way of the super wealthy) I do not follow it. Generation X works a bit different I think.

For webmasters who work from home and never have meetings or never has ANY business lunches (I'm talking about myself) how would I get away leasing a car as a tax deduction if I don't have to go anywhere for business reasons?

Better question is why not buy something you like?

Are you that big of a tight ass that you can't spend some money that you work hard for on things that you like?

Nothing with buying pre-owned. You can get great deals on them now. Dealer lots are loaded down with excess inventory.

Just have to get one that was perfectly maintained and care for, non-smoke, no kids, no dogs pissed in it, etc.

There's also the collectors market where you can buy classics that are like investing in antiques.

- restocking the staff beer fridge
- office supplies
- transport to the business meeting with your buddies
- transport to the business meeting with the potential model (which happends to be your current gf)
- checking mail
- many others

you need to get creative :pimp

yeah, but the car sucks and tbh, if I was doing $100k/year take home you can bet your sweet ass there'd be 40-50k worth of car in my driveway

Yea but don't you have to keep really accurate mileage records like everytime you go to a "business meeting"? And what if you get audited and the IRS asks "who" you had this "business meeting" with?

I would crap in my pants :helpme

buy a used car !! that's all 6 month old car is the best to buy and it still be like new one ...

I concur.

You don't take TGP owners and program owners out to dinner and a good time when they come through town? Don't take them out for drinks? Don't go to the store to buy office supplies? Don't meet with people you MIGHT do business with someday?

Think it through.... you will figure it out.

you got it all wrong, its called the 90% rule - if you make 20k a year you buy a car that costs 18k, if you don't believe me ask all the black guys that live in this country

I don't put that much mileage on my car, so five years ago i bought a low-mileage 1998 eclipse turbo convertible that would have cost me twice as much if it was new...it's now eight years old, looks great, runs great, and still only has 60K on it.
It's a personal decision based on your lifestyle etc., but there's a lot to be said for not buying new, whether it's leasing or buying used.

yeah you do need to keep logs of the trips - a small price to pay.

ask the IRS officer what they had for lunch on Thursday April 21, 2005 - there is no way you can be expected to remember this sort of junk - you're a busy professional with a lot on your mind like making $$$ so you can pay your tax bill :upsidedow

True... that makes sense :)

To the topic starter. If you don't want to buy a brand new car I highly suggest buying a certified pre-owned benz or bmw, if its only a few years old and looks just as good as new. I don't think anyone can tell because the cars are in immaculate condition.

You're dumb for saying that what I said is dumb.

And of course you'd spend another 20 every year trading it back in
I know your type real well

The intelligent man will save and invest the 50k and the 20k per year and in a decade or so he'll have an extra, what, 1M+++ sitting around while you are still playing with yourself in your 50k automobiles


I'm handsome enough that I don't have to buy status automobiles.. so long as it has a V8, cold a/c and starts up and drives reliably I am happy and fine.

a v8???? :1orglaugh


in germany you would have to pay atleast 25k to get a good v8

If you can afford it, buy it, if you can't don't buy it :)

pick one up thats a few years old, that way you get a good saving usually!

If you lease, the 10% rule should be no problem;)

No one says you can't amortize the payment over a few years. Couldn't you borrow money from a bank or the car manufacturer and pay $10,000 per year for 5 years if you're making $100,000/year!

I prefer the 100% rule :thumbsup

Good thinking.. but unfortunately, then, you not only own a largesized liability but while it sits there depreciating you're paying interest on the money you've got out on the automobile....

Paying interest on money you have tied up in a depreciating liability, that's not a good thing
The rule says that your car should cost 10% of your income - not on an ongoing basis, just one time, just once.

See.

I wouldn't! :winkwink:

not if you buy used like he suggests. i drive an 83 monte carlo. i love that car. though i guess in europe its always been about small cars, so i could be wrong.

depends on your own situation

2 years? What exactly are you doing to your cars?

That's a complete myth unless of course you run the car into the ground. Modern engines should last for a very very long time and should always just start with no fuss.