Buying a new car is like getting a wife that's a virgin.You never know what the guy before you did to it or how hard it was ridden, or if they did the break-in properly. Sure you might end up with problems, but at least you know they're your fault. But, you'll probably put more money in for that privileged than it was worth. And at the end of the day you'd probably be best off if you had just accepted a good slightly-older model that was used but not abused.Plus, used models have track-records that can help you understand them better. New models are a bit of a gamble.
No, but how about a cheap apartment, or live with a roommate, or rent someone's basement, etc. We convince ourselves we "need" the 3 bedroom apartment in the nice, safe part of town, and then we're doomed to be renters our entire lives.My first "house" was a single wide trailer on a rented lot in a trailer park. At 1,008 square feet it was larger than most apartments and my payment was $180 on the trailer and $250 for lot rent. I saved up a $15,000 down payment for my house in no time flat. Or, you know, I could have pretended I "needed" something more than that and rented the $800/mo apartment and never have been able to save up a down payment.If you want to be rich, you have to make sacrifices. If you don't, well, then just keep doing what everybody else is doing and you can stay in the lower middle class like everyone else.
Sure, the peace of mind is nice, but the question is: Can you afford it? If you aren't paying cash for the car, my response is no, you can't. I just bought a $70,000 Hummer with cash. I'm not rich and I can't afford $70k for a vehicle. Know how I did it? I let some rich person buy it and drive it for the first 14,500 miles. Then I bought it for $23,000. I'd love for any average-incomed Schmo such as myself to try justifying spending $47,000 for the privilege of driving those first 14,500 miles. You can't do it, because it's a colossal waste of money. The same holds true for most new cars. They drop in value like flippin' rocks. In virtually every case you can save thousands upon thousands of dollars by buying used. There are exceptions. A brand new Prius that can be had for $23k tends to sell for $18k with 30,000 miles on the clock. That's a no-brainer - buy the new one. You tend to see the same thing with VW TDIs. I've seen used Jettas with asking prices MORE than new; not sure how they're selling them, but they are.
I've sold a lot of cars 3 to 4 or more years after buying them and have either broke even or actually turned a small profit on all of them. The trick is to buy a car that is fully (or nearly so) depreciated. A $3,000 car, if kept in decent condition, will still be worth at least that much a year or two down the road. Hobbyist cars are great for this, too. I owned a Pontiac Fiero for over 3 years and sold it for $500 more than I paid. Toyota MR-2, same thing. Also, any good 4x4 will hold it's value forever if you buy at the bottom of the market. Go find an old 4x4 pickup for a few thousand bucks, if you maintain it you'll always get your money back when it's time to sell.
He made a lot of money in real estate. Then he lost it all and declared bankruptcy. Since bankruptcy almost all of his money has come from his seminars, books, etc.
Closed AccountAug 25, 2009
i don't know, buy ANY stock where the company didn't go bankrupt and sit on it for 40 years?
heavywaveAug 25, 2009
But why would they buy cheap cars?
Closed AccountAug 25, 2009
it really depends what you want a car for and when you want it. Some people cant wait +5years for 'that' car.
aggieotisAug 25, 2009
Buying a new car is like getting a wife that's a virgin.You never know what the guy before you did to it or how hard it was ridden, or if they did the break-in properly. Sure you might end up with problems, but at least you know they're your fault. But, you'll probably put more money in for that privileged than it was worth. And at the end of the day you'd probably be best off if you had just accepted a good slightly-older model that was used but not abused.Plus, used models have track-records that can help you understand them better. New models are a bit of a gamble.
fatcatmanAug 25, 2009
No, but how about a cheap apartment, or live with a roommate, or rent someone's basement, etc. We convince ourselves we "need" the 3 bedroom apartment in the nice, safe part of town, and then we're doomed to be renters our entire lives.My first "house" was a single wide trailer on a rented lot in a trailer park. At 1,008 square feet it was larger than most apartments and my payment was $180 on the trailer and $250 for lot rent. I saved up a $15,000 down payment for my house in no time flat. Or, you know, I could have pretended I "needed" something more than that and rented the $800/mo apartment and never have been able to save up a down payment.If you want to be rich, you have to make sacrifices. If you don't, well, then just keep doing what everybody else is doing and you can stay in the lower middle class like everyone else.
fatcatmanAug 25, 2009
Sure, the peace of mind is nice, but the question is: Can you afford it? If you aren't paying cash for the car, my response is no, you can't. I just bought a $70,000 Hummer with cash. I'm not rich and I can't afford $70k for a vehicle. Know how I did it? I let some rich person buy it and drive it for the first 14,500 miles. Then I bought it for $23,000. I'd love for any average-incomed Schmo such as myself to try justifying spending $47,000 for the privilege of driving those first 14,500 miles. You can't do it, because it's a colossal waste of money. The same holds true for most new cars. They drop in value like flippin' rocks. In virtually every case you can save thousands upon thousands of dollars by buying used. There are exceptions. A brand new Prius that can be had for $23k tends to sell for $18k with 30,000 miles on the clock. That's a no-brainer - buy the new one. You tend to see the same thing with VW TDIs. I've seen used Jettas with asking prices MORE than new; not sure how they're selling them, but they are.
fatcatmanAug 25, 2009
I've sold a lot of cars 3 to 4 or more years after buying them and have either broke even or actually turned a small profit on all of them. The trick is to buy a car that is fully (or nearly so) depreciated. A $3,000 car, if kept in decent condition, will still be worth at least that much a year or two down the road. Hobbyist cars are great for this, too. I owned a Pontiac Fiero for over 3 years and sold it for $500 more than I paid. Toyota MR-2, same thing. Also, any good 4x4 will hold it's value forever if you buy at the bottom of the market. Go find an old 4x4 pickup for a few thousand bucks, if you maintain it you'll always get your money back when it's time to sell.
lakaiAug 26, 2009
this is un-American lol. fail
snowwrestlerAug 27, 2009
He made a lot of money in real estate. Then he lost it all and declared bankruptcy. Since bankruptcy almost all of his money has come from his seminars, books, etc.