New cars are such a ripoff

[winb83]

You have to make almost $47 dollars an hour working 40 hour weeks for a month to "afford" the depreciation a Toyota Camry takes in the first year of ownership. That adds up to making almost $98K a year.

2020 Toyota Camry: True Cost to Own | Edmunds
That first year depreciation is almost a $6000 hit. The second year's depreciation is under $1800.

If you go buy that same car in year 2 after that hit and invest the $6000 you would have lost just leaving it sitting there for 8 years you'll make $4000 extra on top of it @ 8% growth annually.

In that first year what happens to that car to justify that loss in value? Is a 1 year old car no longer mechanically sound? It is not almost as mechanically sound as the brand new one? Let's say it last 200,000 miles. If it was driven 13,000 miles that first year that's 6.5% of it's life gone. You lose 22% of it's value in exchange for 6.5% of it's life. Fair trade right?

 

[Alvin]

The car you're driving right now is a used car. Do you not have piece of mind over it? It was new, someone (you) bought it and used it so now it is no longer new. Are you suggesting you don't trust the manufacturers of cars to make a stable product?

I totally get making poor financial decisions. What I don't get is the mental gymnastics people go through to try and make those bad decisions sound like good ones.

The piece of mind you speak of in a figment of your imagination. The truth is you can get a 3 year old car turned in off a lease, low miles, regularly taken to a dealership with provable service records documented and you can get the car inspected before purchase. The mechanical difference between that car and a new car you buy at the same point of their lives that came off the same assembly line is negligible. Also @ CPO you'd get a manufactures warranty for 3 years after purchase.

Let's say this car is a 2020 Honda Accord. You avoid $6000 in depreciation charges. If you invest that $6000 for 30 years at 8% average return, you never touch it again or add to it and it site at the end of 30 years that $6000 in avoided depreciation is $60K. That's enough to buy 2 brand new Honda Accords when you're ready to retire. Do that 3 times in your life at 10 year intervals and that's an extra $101K you can retire with and all you had to do with duck $18K in depreciation cost.

Buy your peace of mind is worth the opportunity cost of turning that $18K in depreciation into $100K of money right?

He means when buying used there is a chance someone fukked the car up, like a used hellcat or demon is a terrible choice unless it has extremely low miles bc people drive those cars like shyt.

 

[OfTheCross]

You have to make almost $47 dollars an hour working 40 hour weeks for a month to "afford" the depreciation a Toyota Camry takes in the first year of ownership. That adds up to making almost $98K a year.

2020 Toyota Camry: True Cost to Own | Edmunds
That first year depreciation is almost a $6000 hit. The second year's depreciation is under $1800.

If you go buy that same car in year 2 after that hit and invest the $6000 you would have lost just leaving it sitting there for 8 years you'll make $4000 extra on top of it @ 8% growth annually.

In that first year what happens to that car to justify that loss in value? Is a 1 year old car no longer mechanically sound? It is not almost as mechanically sound as the brand new one? Let's say it last 200,000 miles. If it was driven 13,000 miles that first year that's 6.5% of it's life gone. You lose 22% of it's value in exchange for 6.5% of it's life. Fair trade right?

Deprecation is a bytch.

I just realized now how lucky I was to have been able to save up to buy cars cash.

The last car I bought cash was 6 years ago for $5000. I'm looking to sell it now for $2500. So basically I got to use a car for 6 years and all it cost me was $2500.

That's decent value for the purchase.

 

[winb83]

Deprecation is a bytch.

I just realized now how lucky I was to have been able to save up to buy cars cash.

The last car I bought cash was 6 years ago for $5000. I'm looking to sell it now for $2500. So basically I got to use a car for 6 years and all it cost me was $2500.

That's decent value for the purchase.

That's an average cost of $416 a year between $34 and $35 a month. That's insane value you got for it. Hell even if you kept it at the $5000 it's only $833 a year or $70 a month.

People who make moves like that especially when they don't necessarily have to come out ahead in the game of life.

 

[ExodusNirvana]

Buying a car is a CHOICE.

It isn't a scam.

Basically

By these metrics, you should not buy anything except maybe a house in a nice city or antiques to fill it with

Buy a car....WITHIN YOUR MEANS

Don't buy a luxury vehicle that you couldn't afford in the first place and then get mad at the cost of upkeep

It's like dating a bad bytch who likes to go out every weekend when you're a homebody....who the fukk told you to do that???

 

[winb83]

Basically

By these metrics, you should not buy anything except maybe a house in a nice city or antiques to fill it with

Buy a car....WITHIN YOUR MEANS

Don't buy a luxury vehicle that you couldn't afford in the first place and then get mad at the cost of upkeep

It's like dating a bad bytch who likes to go out every weekend when you're a homebody....who the fukk told you to do that???

So let me ask you if you made $100K a year and were given the choice to work a month get paid nothing and get a car brand new for the same price as a 1 year old version without you paying extra are you making that deal? Yet if presented in reverse fashion people make that same deal everyday.

Can you explain the loss of value in the first year of a car other than it being a huge markup that almost instantly vanishes and leaves you with nothing extra in exchange?

 

[CrimsonTider]

Deprecation is a bytch.

I just realized now how lucky I was to have been able to save up to buy cars cash.

The last car I bought cash was 6 years ago for $5000. I'm looking to sell it now for $2500. So basically I got to use a car for 6 years and all it cost me was $2500.

That's decent value for the purchase.

Depreciation means nothing if you’re not trying to sell the car

 

[ExodusNirvana]

So let me ask you if you made $100K a year and were given the choice to work a month get paid nothing and get a car brand new for the same price as a 1 year old version without you paying extra are you making that deal? Yet if presented in reverse fashion people make that same deal everyday.

Can you explain the loss of value in the first year of a car other than it being a huge markup that almost instantly vanishes and leaves you with nothing extra in exchange?

Because the car, under most circumstances, when removed from the factory, is in pristine MINT condition.

The minute it is driven, the parts that make up the car immediately take on what is known as "wear and tear"

It's like a comic book taken out of a protective sleeve. The minute it is touched with humans hands and oils and moisture is applied to it, it is no longer in MINT condition

 

[Deuterion]

You can’t buy a used car if no one bought one new.

 

[OfTheCross]

You can’t buy a used car if no one bought one new.

Leases and rental cars are the majority of used cars

 

[OfTheCross]

Depreciation means nothing if you’re not trying to sell the car

Not true. It's still an L being taken by the original owner.

The same person could've bought the 1 - 2 year old car in great condition for substantially less

 

[CrimsonTider]

Not true. It's still an L being taken by the original owner.

The same person could've bought the 1 - 2 year old car in great condition for substantially less

No it’s not an L. Depreciation is not even a cash cost.

Great condition is still used and not the same condition as new. You also don’t get to pick the color and customizations that you would like

 

[CrimsonTider]

Because the car, under most circumstances, when removed from the factory, is in pristine MINT condition.

The minute it is driven, that parts that make up the car immediately take on what is known as "wear and tear"

It's like a comic book taken out of a protective sleeve. The minute it is touched with humans hands and oils and moisture is applied to it, it is no longer in MINT condition

Every single thing we buy loses value once it’s used

I don’t understand why people act like this loss of value is so bad when it comes to a car

That PS5 depreciated as well when you took it out of box. Did you take an L because you didn’t buy used PS4 pro or some shyt?

 

[Deuterion]

No it’s not an L. Depreciation is not even a cash cost.

Great condition is still used and not the same condition as new. You also don’t get to pick the color and customizations that you would like

You also have to factor in that the original owner had the ability to enjoy the product a whole year or so before the person in the secondary market. If you want the 2022 Mustang but are going to wait til 2023 to cop it used, that’s fine but someone was enjoying the 2022 all 2021 and into 2022 prior to the next year release. It’s something totally intangible but if you want the 2022 features today and not tomorrow then you HAVE to buy new.

 

[winb83]

Because the car, under most circumstances, when removed from the factory, is in pristine MINT condition.

The minute it is driven, that parts that make up the car immediately take on what is known as "wear and tear"

It's like a comic book taken out of a protective sleeve. The minute it is touched with humans hands and oils and moisture is applied to it, it is no longer in MINT condition

Are you suggesting the wear and tear that happens in the first year is that devastating that it justifies that much a loss?

As a collectors item yeah the use is damaging but if the car is purchased with the intention of use a year of use isn't a big deal. If wear and tear is a concern the depreciation should be less in the beginning as it's closer to new and accelerate as it gets older and older because the older the car gets the less close it is to that newer condition.