On Tue, 16 Aug 2011 14:11:04 -0700 (PDT), firstname.lastname@example.org
Rainy day savings.
You have to do that if you want to always get to work and not finance.
I did finance 2 cars early on, so I know that doesn't always work out.
Used cars. One for $1200, another for $6000.
But you gots to get to work.
You can always get a "decent" used car without getting in too deep.
If you select right. There's the rub.
On 8/16/2011 5:11 PM, email@example.com wrote:
Arrgh- this bit where Tbird replies direct even when I thought I clicked
group, is almost enough to drive me back to Outlook Express....
Shrug. I buy used, pay cash, and always have a spare one on hand. One
craps out, I drive the other until I get the first one repaired or
replaced. Never had a car payment in my life, and never plan to. I've
got nobody to impress. As long as it is anvil-reliable, gets tolerable
MPG, and isn't physically painful to drive, I'm not too fussy. I'm on
year 3 with the 6 YO go-to-work minivan, and year 8 with the 12 YO
mainly-used-for-road-trips high-mpg compact. Fingers crossed, I'll get
at least another 5 years out of both of them.
Year ten on 16 year old V6 Mistyque and year 4 on 10 year old PT
Cruiser. Mystique is the Wife's car, shared by eldest daughter when
she is home.
I buy 5 or 6 years old, for $5k to $6k and never have a "car loan"
although I generally have a line of credit running, so some interest
does get involved - but it's cheaper (usually) than cashing
Most people finance so that is a factor to consider. New cars often have
better rates than used making the difference more pronounced. Lat car I
bought was the same price for cash or for the 0% financing. At that rate,
no reason to lay out all that cash at one time when it can be getting a
dismal return in the bank.
My nephew is the business manager of a very large local used car lot. It
was a great place to buy used because the owners business plan was to do
high volume of late model cars at good prices with minimal haggling.
Before my nephew worked there we bought a 9 month old vehicle with
<10,000 miles for $8k less than a new one.
I have been looking at a replacement vehicle and have found that used
prices are the same if not more than new for the same vehicle. I have
also looked on the car lot I mentioned and my nephew confirms what I am
finding is the norm because used wholesale prices are really high.
What is a "wholesale" price (for used vehicles) ?
I didn't know there was a substantial middle (wholesale) layer for used
cars. Ask you nephew to explain it to you, then post it here.
I can easily see how today a lot of people maybe aren't credit-worthy
for a new car, and hence they are forced into the used car market where
maybe buyers outnumber sellers.
I wonder if the effects of the cash-for-clunkers program is still
causing an overall reduction in the number of used cars available for
Yep - Cash for Clunkers did not do anyone any favors as it reduced the supply of
low end vehicles. That worked all the way up the used market making 1 year old
vehicles very expensive. Combine that with government pressure to stop building
SUVs and you can't find any used SUVs at a reasonable price.
Somebody shoulda been beat repeatedly with a clue stick for that C-for-C
nonsense. The public interest would have been better served by just
passing out 100 dollar bills on street corners. Rather than take the
worst, lowest MPG, highest polluting cars off the road, it mainly
removed middle-age but still quite servicable vehicles from the
secondary market. (I kept an eye on most of the local 'death rows'. Many
of the cars were nicer than what I was driving.) People driving the true
crap, that couldn't afford a new car even with the $4500 kickback, now
had even fewer choices for upgrading, and had to keep their junkers in
service even longer. If they HAD to have a C-for-C program, it should
have been structured so that the dealers had to sit on them for 90-120
days, and do free (aside from paperwork) one-for-one trades for anyone
bringing in something even older (say, at least 2 years), and with
higher miles on the clock. THAT would have done some useful culling from
the herd. And any reliable vehicles left over should have been donated
to 'wheels for work' or similar charities, rather than destroyed.
Better a 10 mpg car driven a few dozen miles a week to a paying job,
than yet another unemployed person who wants to better themselves,
sitting at home. Trashing working equipment Just Ain't Green.
As actually run, the program was a back-door aid package to the
automakers. It thoroughly pissed me off as a taxpayer that my money was
being wasted that way.
Wow. You "saved" $8000? $8k is more than TWICE what I have EVER paid for a
car in my entire life! I've always bought used cars and generally put
about 100,000 miles on them. (My wife OTOH only gets about 50,000 miles
out of the the cars she's bought :) )
I have a 96 Jeep Cherokee right now. It had 94,000 miles on it when I
bought it and has 168,000 now. I paid $3200 for it in 2006. I had a 78 Chevy
pickup before that that I bought in 1986 for $1500. It also had a little
under 100,000 miles when I bought it. It had over 270,000 when I finally
got rid of it because the body was just too far gone. Original 350 V8 by
Make it as simple as possible, but not simpler. (Albert Einstein)
Larry Wasserman - Baltimore Maryland - lwasserm(a)sdf. lonestar. org
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