Why do people buy new vehicles? - Page 5 - TigerDroppings.com

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TulaneUVA
USA Fan
Member since Jun 2005
20413 posts

re: Why do people buy new vehicles?


quote:

But yeah, a consumer lease is a sucker deal for the most part.


That's a pretty big blanket statement.

Who's the bigger sucker? The guy who buys new vehicles every three years because he wants the latest and greatest? Or the guy who acknowledges that he will want the latest and greatest vehicles, and leases them. Becuase trust me, the latter guy is more financially cognizant that the former. It doesn't make you a sucker just because you want the latest and greatest and that's how you choose to spend your money...it does if you don't know how to do it right.

The miles restriction is no big deal. I have a 2nd vehicle to parry that with. The damage is also no big deal. I had tons of small nicks and dings here and there, and the Acura dealership forgave up to $1500 worth in damage. I didn't pay a dime extra.

It's all about your personal situation.







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VetteGuy
LSU Fan
Mandeville
Member since Feb 2008
10940 posts

re: Why do people buy new vehicles?


quote:

Or the guy who acknowledges that he will want the latest and greatest vehicles, and leases them


That is an excellent point and one that I totally understand. Note I did say "for the most part".

Luckily, in your case they forgave the damage, but they didn't have to. Also, most consumers have enough trouble with a regular buy/sell transaction. Throw the complexities of leasing in the mix and they haven't got a shot.

I just can't recommend leasing to most folks, but obviously you may be an exception.






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ArRazElle
Alabama Fan
Member since Sep 2012
3862 posts

re: Why do people buy new vehicles?


I was an accounting major in college and had one particular professor whose pet peeve was people buying new vehicles. If he found out one of us had bought a new one, he would give a 20 minute lecture on depreciation, and how stupid people were for not purchasing used cars.

Although I understand the logic of buying used, I've always bought new, I suppose, because of the emotional aspect of having a brand new car. Now that I'm older and, hopefully, more reasonable, I would like to think I might at least entertain the thought of purchasing a previously owned vehicle, especially with all of the higher end dealerships having certified pre-owned automobiles backed by warranties much like their new cars. There really is no good reason not to buy pre-owned vehicles these days.






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LSUzealot
New Orleans Saints Fan
Napoleon and Magazine
Member since Sep 2003
51561 posts

re: Why do people buy new vehicles?


quote:

Even if you have all the money in the world like every OT baller,


Does not compute. If you are a millionaire why wouldn't you buy a new car? In fact I'd say it's dumb to buy used if you can afford it.

Agree otherwise.






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CarRamrod
USA Fan
Spurbury, VT
Member since Dec 2006
34499 posts

re: Why do people buy new vehicles?


quote:

how stupid people were for not purchasing used cars.
IMO he looks like the stupid one.






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trillhog
Elite Membership
Member since Jul 2011
18747 posts

re: Why do people buy new vehicles?


quote:

Does not compute. If you are a millionaire why wouldn't you buy a new car? In fact I'd say it's dumb to buy used if you can afford it. Agree otherwise.


i agree, it annoying when people talk down to you like you are dumb b/c you like a new car, tell ramsy to frick off.






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Lithium
South Alabama Fan
Member since Dec 2004
42136 posts

re: Why do people buy new vehicles?


Hate driving a used Porsche. Guy who had it earlier probably drove the shite out of it





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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6564 posts

re: Why do people buy new vehicles?


Buying used is not saving you any money. All the incentives plus the warranty make a new car your smartest investment. Plus you don't have to deal with someone else's cooties in your vehicle.





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Gaston
LSU Fan
Dirty Coast
Member since Aug 2008
19836 posts
 Online 

re: Why do people buy new vehicles?


I bought my first used vehicle this year after the former purchase of two new ones. Even though the used vehicle was a nice-ass CPOed one, it took a great deal of elbow grease to get it right. I like my shite clean.

Every inch of the headliner I had to painfully dab and swirl with woolite, I had to get replacement trim pieces, the a/c knob was sticky, the soft-touch rubber had to be replaced...The paint isn't perfect, the bumper has rubs on it too...I need to replace the sunroof and rear window seals...it is a 2009 (had 24k miles in 02/12).

The car runs great, but it's been a pain to get it close to perfect. On a luxury item I think it'd be worth it to have it brand new - it just wasn't an option for me. Still happy with the purchase but CPO =/= new by a long shot.






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BTHog
Arkansas Fan
Member since Jul 2012
8335 posts

re: Why do people buy new vehicles?


quote:

Why do people buy new vehicles?


Because some people have businesses which use the tax write off, which is of far more value than the savings of buying an already depreciated vehicle.







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Muahahaha
Ohio State Fan
Ohio
Member since Nov 2005
3420 posts

re: Why do people buy new vehicles?


quote:

Better rebates
0% interest
Better warranty


This.






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Catman88
LSU Fan
Baton Rouge, LA
Member since Dec 2004
39350 posts

re: Why do people buy new vehicles?


Simply put I had an 8k rebate on my truck and a nice warranty and service package too. I drove my truck off the lot having paid pretty much the same as it would have been bought used.

So why buy used?






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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6564 posts

re: Why do people buy new vehicles?


Delete


This post was edited on 11/13 at 10:39 am


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wiltznucs
South Florida Fan
Apollo Beach, FL
Member since Sep 2005
7602 posts

re: Why do people buy new vehicles?


Given the historically high resale values of used vehicles right now and the more favorable interest rates and warranties I'll only be buying new for the time being.





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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6564 posts

re: Why do people buy new vehicles?


quote:

Because some people have businesses which use the tax write off, which is of far more value than the savings of buying an already depreciated vehicle.


Huh? The depreciation clock starts running again when the car is sold used.



This post was edited on 11/13 at 10:12 am


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ArRazElle
Alabama Fan
Member since Sep 2012
3862 posts

re: Why do people buy new vehicles?


quote:

All the incentives plus the warranty make a new car your smartest investment.


This isn't always true.

There are many variables including warranty (which are often offered on pre-owned vehicles), the actual selling price of the vehicle, if it's financed & for how long, the interest rate, depreciation rate and the fact that many of the incentives offered don't really make that big of a difference unless it's 0% financing, that should be taken into consideration when deciding between buying new or used.

The best thing to do is take it on a case-by-case, car-by-car basis, not make a broad general assumption either way.






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ArRazElle
Alabama Fan
Member since Sep 2012
3862 posts

re: Why do people buy new vehicles?


quote:

Huh? The depreciation clock starts running again when the car is sold used.


The majority of the depreciation of a new car happens in the first three years of ownership which is the main advantage of buying used. Let the original owner get stuck with it.






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otowntiger
LSU Fan
O-Town
Member since Jan 2004
8421 posts

re: Why do people buy new vehicles?


quote:

Definitely one of the dumbest big purchases you can do.
Unless you plan on keeping the car for a very long time in which case it doesn't matter how much it depreciates. For example we bought a new minivan and paid something like 28k (I know ) We've had it 6 years and have had no trouble with it and take good care of it so we think we should have it another 10 years or so. In that case it dosen't matter that the car's value goes down sharply or not. When we are done with it we will certainly have gotten our money's worth out of it and it will be worth next to nothing.






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GREENHEAD22
LSU Fan
LafayettebywayofBush
Member since Nov 2009
8034 posts

re: Why do people buy new vehicles?


So I am not reading all those pages but I am planning on getting a new truck with in the next couple of weeks. Tell why I shouldn't? All used trucks are only 3-5K cheaper than new. For that I would just rather get a new one.





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Layabout
UNO Fan
Baton Rouge
Member since Jul 2011
6564 posts

re: Why do people buy new vehicles?


quote:

The majority of the depreciation of a new car happens in the first three years of ownership which is the main advantage of buying used. Let the original owner get stuck with it.

The OP was talking about depreciating the vehicle as a business asset. For tax purposes there is no difference between a new and a used vehicle.






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