Anyone get a new car every year or two?

BigBake · 03-12-2008, 09:18 PM

Does anyone trade cars every year or two?

I knew a few people that would trade vehicles every 13,000 miles or so. And from what they said it would only cost a little each time.

Just curious if you do that how do you work it to your advantage and not take it in the shorts on depreciation?

Cyclone42 · 03-12-2008, 10:02 PM

If you are going to do that, why not lease instead?

rworkman83 · 03-12-2008, 10:05 PM

I wish I got a new car every two years...

jumbopackage · 03-12-2008, 10:14 PM

The most cost effective way to own a vehicle is to buy used and run it into the ground.

It's insane to take depreciation hit after depreciation hit on new car after new car. You're basically throwing money down the drain.

kingcy · 03-12-2008, 10:20 PM

I hate buying cars. Yes new ones are nice, but the shopping around, talking to pushy salesmen, wondering if you are getting screwed, not for me anymore. I have owned one car for 6 years, one for 2, and baught a new pickup last fall and want my old one back (new isnt always better). The first few years out of college I traded more often but not now. Waste of money and waste of time to me anyway. Others will disagree.

Its not cost affective to own new ones. If you wreck it driving off the lot you are out some bucks, have to buy a new car, and if you loan money on it you go upside down on you loan. Its not bad if you have the cash to trade but, a lot of people that trade every few years go upside down and when it catches up to them it hurts.

Cyclonepride · 03-12-2008, 10:22 PM

I get a new work vehicle about every two years, but by then I have 50,000 to 60,000 on it, and it's handed down. I can't imagine doing that with a personal vehicle is profitable by any stretch.

Incyte · 03-12-2008, 10:24 PM

Originally Posted by jumbopackage

The most cost effective way to own a vehicle is to buy used and run it into the ground.

Amen brother.

mwitt · 03-12-2008, 10:24 PM

I'm 21 years old, and my parents have had two primary vehicles since I've been alive. The current one has well over 200,000 miles, and it's still in pretty good shape.

LindenCy · 03-12-2008, 10:36 PM

I have 171,000 on mine. Every mile I get is gravy at this point.

herbicide · 03-12-2008, 10:41 PM

Originally Posted by jumbopackage

The most cost effective way to own a vehicle is to buy used and run it into the ground.

It's insane to take depreciation hit after depreciation hit on new car after new car. You're basically throwing money down the drain.

Me three. People don't always relate that no payment increase does not mean it is cost free, both in the literal sense and in the long term. All that depreciation adds up in the end.

Ames · 03-12-2008, 10:45 PM

Originally Posted by BigBake

Does anyone trade cars every year or two?

I knew a few people that would trade vehicles every 13,000 miles or so. And from what they said it would only cost a little each time.

Just curious if you do that how do you work it to your advantage and not take it in the shorts on depreciation?

If you own a good car and it is in demand used it seems to work. I have a friend that owns a $50,000 Tahoe. He trades every 2 years for $12,000. So basically he gets to drive a brand new $50,000 SUV always under warranty for $6k per year. He also gets a year free from OnStar every trade and a few months of XM. He doesn't lease because of the mileage.

I was trading for a new car once a year for a while. I finally found the perfect car and have had it for 3 years. It was expensive, but I considered it expensive toys/hobby.

herbicide · 03-12-2008, 10:50 PM

Originally Posted by Ames

If you own a good car and it is in demand used it seems to work. I have a friend that owns a $50,000 Tahoe. He trades every 2 years for $12,000. So basically he gets to drive a brand new $50,000 SUV always under warranty for $6k per year. He

He is actually "paying" more than 6k a year. His payments may not reflect it, but inflation and depreciation are eating away his equity in the vehicle, unless he is fronting the cash at trade in time.

Also, a $50K vehicle a few years back was more vehicle for the money, due to inflation. In other words, he is either buying a vehicle worth more than 50K or he is downgrading.

Ames · 03-12-2008, 10:53 PM

Originally Posted by herbicide

He is paying more than 6k a year. It is actually $6K plus whatever his payments are. (Unless the first one he bought outright, or is paid in full by trade in time)

You didn't quote the part where I said it works if you own the car and the car is in demand.

Chris · 03-12-2008, 10:55 PM

I've been leasing a new car at 2 year intervals on a Ranger, Explorer and Expedition for I don't know how many years now. No money down, just turn in, sign and drive away the new ones every 2 years. Payments have stayed close to the same - like just renting without maintenance costs. Now that my kids are grown and off to college, buying outright the leases I have now.

kilgore_trout · 03-12-2008, 11:00 PM

underwear depreciates in value more slowly than most new cars do. i think it's crazy to pay interest on a depreciating asset (like a car). if you have the cash,or if it's a lifestyle thing, go nuts. financially it's imprudent.

last two cars I bought were on ebay. crashed the first one. cleaned myself up, bought some new underwear and got the second one.