KS Plainsman
Here For The Long Haul!
- Local time
- 1:35 PM
- User ID
- 10148
- Joined
- Aug 7, 2019
- Messages
- 1,982
- Reaction score
- 10,742
- Location
- Kansas
I won't buy a new vehicle for one reason.
I just saw on marketplace a 2008 Corvette for sale.
$18,000.
11 years old. That's not that old in my book. What did it cost new? I'm going to guess $45,000. Give or take.
I remember when the longest loan you could get was 36 months. That's because vehicles depreciate out at 3 years. Still do. My dad would take out 24 mo loans because he traded every 2 years.
Now you can get a loan for 8 years.
Still depreciates out at 3 years. Ever heard of being upside down on your vehicle loan? That's why insurance companies offer gap insurance. Without it you're saddled with the unpaid balance of the loan if the vehicle is totaled before it's paid off.
Think of this. The second you sign the loan papers and that new car is yours, you are now the proud owner of a used car. Before you drive it off the dealership lot, it's already lost money.
That's why I only buy used vehicles. But only if I have to. In the last 10 years I think I've had 10 different vehicles. I only paid for 2. The others I did an even trade for. I traded a 1980 CJ5 for my wife's 2002 F150. Total dollars out of my pocket was $25.
My neighbor came hone a few years ago with a new F150. Fortunatly it was an overnight test drive. He was excited about it. Until I rained on his parade. I asked him what the monthly payment was going to be. He said $800. I then asked him how long the loan was for. He said 8 years.
8 YEARS!!! I pointed out that he was likely to pay more for this truck, over the life of the loan, than what his house was worth. They got the truck back the next day.
It amazes me how fast people load up the miles on those new vehicles as well, which will help that depreciation even more. I just talked to a fella today, who has a 2014 Dodge 1 ton with a Cummins, and it already has 114k on it. 5 years. My pickup is 40 years old and has 320k on it, for perspective.
800 bucks for a car payment is silly in my mind, unless you use it for a business to make money. My house payment was 181 bucks a month, on a 10 year note, and I paid it off in 5, and put a 5500 dollar roof on it in that time as well.
I despise debt, so that has a bit to do with my method of thinking.