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cars got me thinking

January 3rd, 2018 at 11:47 am

After we bought the cars I got to thinking about how I've changed my mindset about cars quite a bit. I have always been a buy new and keep car till it dies sort of person. But recently I've started to change. I'm wondering if it's okay to not keep a car until it dies. I am starting to think that it's worth being okay buying a car that you can afford at that moment in time for a purpose. And when that purpose is done it's okay to sell the car?

Cars are depreciating assets. So in the ideal world people would only buy used cars and keep them till they die. But that still raises the question, how used a car do you need to buy to be uber frugal? To maximize the frugality of cars, which are SUPER expensive does it have to be 10 years old and you drive it for 3-5 more years? What if it's only 1 year old and you drive it 10 mores years? Why couldn't you keep it longer?

I guess it's a sliding scale. Right? That to each person the valuation of car is what they put on it. Some would argue any used car is a deal. While myself included might argue perhaps it's gotta be at least 5-6 year old to be worth? But I did save a bit buying a 2-3 year old used car.

Reflecting back on our cars we've now had I've come to the realization that we can just make the best choice at the time we make the decicion.

My first car was a 99 toyota corolla bought for $11k including taxes/fees we sold in 2012 because my DH really wanted a car with latch and airbags. It had 150k miles and still running super strong and if my DH didn't want newer safety features I'm sure it'd still be running! We sold it for $3500. We bought a 2006 Hyundai Sonata in 2012 for $11000 taxes and fees.

He had 2000 ford focus bought new for $13k including taxes and fees we sold in 2010 because it broke down. We sold it for $2500. We bought a new subaru outback base model for $23000 including all taxes and fees.

In 2015 we sold the Hyundai Sonata for $6500 and leased a 2015 Subaru Legacy for $28k. DH wanted the car so we did it. What will happen I'm unsure.

Now in 2017 we ended it buy buying a used 2015 Sienna Minivan for $31k. We aren't selling the Subaru Outback 2010 instead we're giving it to my mom and i'll call it $7k value.

Looking back the best value of depreciation was the new Toyota Corolla for $576/year. Then the Ford Focus $1050/year deprecation, then the Sonata $1500/year. I'm not sure what our current 2 cars will end up but I've decided that you can't always make the best decision with cars.

You have to make the best decision with the information at hand. That means what sort of car do you need or want? Can you afford it? Do you think i'll serve it's purpose?

Have you reflected on all the cars you've owned? How would you judge your purchases? Wise? Unwise? Okay? Did it make you happy and serve a purpose?

1 Responses to “cars got me thinking”

  1. rob62521 Says:

    When I was younger, I bought used cars and "traded up" when I could. For most folks, they would say we are unwise because we buy new cars. But, we can afford these cars and we go to a dealer we trust and have a good service plan and good maintenance. We don't keep the car until it dies, but often trade it off before it loses all value. It's a mixed bag. I've kept a car until it was basically worthless and started to cost us money and then debated -- is it worth fixing and will I get my money out of it. It is whatever works best for you.

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