Have you ever bought a brand new car?
I've done it once, and I don't think I be doing it again...hahaha.
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Adogslife · 61-69, M
The price of the purchase itself matters less than you think if it’s within your budget. It’s the resale that matters.
What’s the value when you’re done with it and how long will it last?
Ex. Buy a $20k Ford with a $2k rebate. Net $18k. Drive it for 8 years, put 100,000 miles on it and trade it in for $2k. Your real cost is $16k.
Or, buy a $22k Toyota with no rebate. Net $22k. Drive it for 8 years, put 100,000 miles on it and trade it in for $8k. Your real cost is $14k.
The Toyota cost you $4k upfront, but it paid you back an extra $2k. That’s one way to look at it. Another way would be to simply drive the Toyota another 6 years until its trade in value fell to $2k.
Longevity and being problem free is the answer in any purchase. Cars are not intended to be disposable. They are depreciating assets, but the concept of value does exist and can be relied upon.
What’s the value when you’re done with it and how long will it last?
Ex. Buy a $20k Ford with a $2k rebate. Net $18k. Drive it for 8 years, put 100,000 miles on it and trade it in for $2k. Your real cost is $16k.
Or, buy a $22k Toyota with no rebate. Net $22k. Drive it for 8 years, put 100,000 miles on it and trade it in for $8k. Your real cost is $14k.
The Toyota cost you $4k upfront, but it paid you back an extra $2k. That’s one way to look at it. Another way would be to simply drive the Toyota another 6 years until its trade in value fell to $2k.
Longevity and being problem free is the answer in any purchase. Cars are not intended to be disposable. They are depreciating assets, but the concept of value does exist and can be relied upon.