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Buying first new car; do yo have this perspective?


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5 replies to this topic

#1 cornflakes2

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Posted 06 December 2016 - 06:40 AM

So I am itching to buy my first ever new car.  But here's something I am struggling with: the price tag.

 

I don't make a lot of money (about 30-35 k) per year, and I'm a single person so I don't have a lot of

financial obligations other than for myself.  But I'm eyeing some cars that I really like and they are price

tagged at around 40-55k.   Now, obviously, I know that I am shopping out of my range.  I should probably be

aiming for cars that sell at around 20-30k.  But is this a reasonable perspective to have:  If I buy a car that

costs me 50K, I'm not really spending 50K because when I resell it later, I'll be expecting at least 50% of it

back in the resale value because I may not own it for longer than 3 or 4 years OR it will have very low mileage on it

(about 50,000 km or less).   So in the end, I'm really only spending around 25k.

 

I don't know, but that's how I reason it to myself to make me feel better that I'm not actually going to spend 50k

on a car because I'll get at least half it back when I resell it.

 

Is this correct in thinking like this? (of course there are other expenses like gas, insurance, maintenance, taxes)

but I mean just from the price tag cost to when I resell it, the difference should only be about 25k in actual money spent to buy this car.  I am also aware that cars are not investments but liabilities and value of cars go down a lot.  The cars in this

range that I am looking at however are not cheap cars and usually do maintain their value pretty well even after 3 or 4 years.   

 

Please confirm or correct my way of thinking.


Edited by cornflakes2, 06 December 2016 - 06:42 AM.


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#2 mjd420nova

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Posted 06 December 2016 - 10:37 AM

I'd look into getting one of the manufacturers certified used cars.  They are mostly lease units around three years old and under 40K mileage.  Some really nice cars are around half the original price.



#3 martinluth123

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Posted 07 December 2016 - 02:13 AM

Once you've decided what you like — and have already established what you can afford — it's time to arrive at a purchase price. The Kelley Blue Book Fair Purchase Price gives you an accurate idea of what people have paid in your area for the car you have an interest in. A credit union should also be able to provide you with perspective, and may have a contact on the showroom floor. An important note regarding referrals: Get the referral before taking another salesman's time for a walkaround and demo. Most of these people work on commission, and commissions are notoriously small. If you plan on working with a referral, start with a referral. Finally, when discussing what you want to pay, don't reveal a "per month" number; that's the oldest trick in the book. If you're thinking you can budget $20K — and you're looking at a $25K car — tell 'em $20K. You can always work up...while it's much harder to back up.I have some good work experience with a OOH Media software and my words are clearly based on what I felt through such processes in the past.



#4 cornflakes2

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Posted 07 December 2016 - 02:21 AM

Thanks for the replies, both excellent points made mjd and martin!



#5 NickAu

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Posted 07 December 2016 - 02:43 AM

I'd look into getting one of the manufacturers certified used cars.  They are mostly lease units around three years old and under 40K mileage.  Some really nice cars are around half the original price.

I agree, Also do not over extend yourself if you are getting a loan, If for some reason you cant work how can you make payments. If you have cash buy the nicest car you can for the cash you saved, and get insurance don't drive too fast, OMG I sound like a old man.



#6 Chris Cosgrove

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Posted 10 December 2016 - 07:34 PM

It's your money, how you spend it is your decision but I think you are underestimating depreciation. My wife bought a replacement car which was only 9 month old back in May and she paid £14k against a new list price of £20k, and that was at a major dealer.

 

Oh yes, I now get to drive around in her old one !

 

Chris Cosgrove






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