North Am,erica's Love of the New Automobile

Look , I just read this article.

One fact amazed me.

What does this mean for me ? Well, thats when I’ve mostly been buying this relative vintage since 1968 to serve my personal needs.

What’s wrong with me? I’m obviosly not average. Am I not as smart or stupid as the average guy?

for me cost is paramount, Lets look at this tidbit

That’s almost $2000 per year!

Look , I bought a 93 Dodge Colt for $7000 in 1998. I still have it. Not one major
repair. It is still our best vehicle. Not one surprise.If I gave it away today, my depreciation for car ownership would be $780.00 per year. Now that’s less than 50% of what the average guy spends on depreciation. At over $1000 per year, Its no small hit.

Hey you new car buyers, what’s in it for you to blow an extra $1000 per year to own a new car?

I’m all for it. I’m the guy who always buys five-year-old cars that the “must have brand new wheels” folks are dumping for pennies on the dollar.

Yeah, I never understood why people bought new cars. To me, a car is transportation. If it runs, but has mismatched wheels or a bad paint job or a piece of copper tube replacing part of the radiator hose (guilty of all 3) what the hell do I care?

I bought a 93 Nissan with less than 100k miles on it for under $2k a few years back, and except for a new clutch (which wears out eventually anyway, obviously the previous owner didn’t know how to drive a stick very well) I haven’t had any problems (knock on wood) .

I hate driving anyway, only do it when I have to, so why do I care if I have to roll up my own windows? I’m not paying an extra grand a year to have some fancy-schmancy audio system with a USB port for my mp3 player.

I buy a brand new car and then run it until it lets me down. As a single man, one night sitting by the side of the road is enough for me to get a new one (I have no one to rely on.)

Right now I have a ten year old Acura with 153K on it. I expect it to get to at least 200K before it starts to let me down.

They trade them in so that those that want a used car can find a good reliable vehicle.

:rolleyes:

And…. My last post was a little snarky.

I have owned four used cars in my life and two new ones.

I agree that IF you can find a good used car that isn’t TO used, it’s a good way to go. But if you have specific needs for a vehicle, that can sometimes be hard to do.

My Wife and I are on the ten year plan. I just bought my car new, and she will replace her six year old car in about four years. We drive them into the ground. Or at least, have in the past.

We buy new cars (infrequently as it is) so that we can get the car we need.

Because I’ve never had a good experience with a used car, that’s why. I’ve bought them from dealers, I’ve bought them from private parties. For some reason, I’m the guy who winds up with the car that’s only weeks away from getting a cracked block ($1,500), severe rusting ($900) or not having the necessary parts available (we gave it away.)

On the other hand, we bought our Mercury Village in 1995, have maintained the hell out of it, and still drive it every day. When something happens like the transmission blows up, I’ll sleep soundly knowing that I got my money’s worth.

I like knowing that (almost) all the milage that has been put on my car, I put on. I like knowing that however well or poorly it has been maintained has all been my responsibilty.

On the other hand, My car is now 7 years old, with 50 thousand miles, and barring something unforeseen–like a major car accident–I’ll drive it at least another 3 years and 50 thousand miles.

My parents have always been of the “buy a new car, maintain it (reasonably) well, and drive it into the ground” mindset. Mom’s last vehicle was a mini-van with more than 200 thousand miles when she traded it in.

Between my wife and I, we’ve owned 5 new vehicles over the last 15 years or so. When my wife returned from a year working overseas during which she’d managed to save quite a bit of money, her primary criteria was that she wanted “a green car with a CD player”. In 1993, not all that many cars had CD players as standard equipment, or were green, so she paid cash for a new 1993 Mazda 626 sedan. In 1995, when I had to have new transportation, I’d had such crappy luck with my last couple of used cars that I was determined to buy the best combination of new, cheap and reliable I could afford, which was a base model 1995 Honda Civic sedan with no options other than A/C (essential in Atlanta) and an AM/FM/cassette deck.

We kept the 626 until our second child was born, in 1999, when it had just over 100K miles on it. Still ran fine and was in very good condition, but we needed room for more than four passengers – the dreaded minivan. The used options at the time weren’t particularly inspiring – Chrysler products that were guaranteed to have transmission problems, or a host of other mediocre American vehicles that weren’t that much more reliable. We wanted sliding doors on both sides, which was a relatively recent innovation at the time, so the pool of used options got even smaller. Honda had just introduced the redesigned Odyssey, but the pricing was a bit high for us and there was an insane waitlist, as demand was far outstripping the very limited supply. At about that time, Mazda introduced the redesigned MPV. It had everything we wanted in the way of features, was a bit smaller than the Odyssey (which was actually a good thing, as my wife already had trouble getting the 626 in our garage), and was built on the 626 platform, which we knew from having had one for the previous six years. It was seriously underpowered, but we knew that going in and accepted it as a necessary compromise.

Five years later, in 2004, we were closing in on 100K miles on the MPV. As ours was one of the first of the redesigned models off the line, we were in uncharted waters as far as longer-term reliability, and while we were content with the vehicle, we knew we’d take a hit in trade-in value once it passed 100K. We just decided we’d rather go ahead and refresh. Of the options on the market, the MPV still seemed to be the best choice for us, particularly as they’d increased the horsepower somewhat and added a lot of new features, and with the end of the 04 model year coming on there were good deals to be had – we actually bought one trim level higher than our first one for a lower driveout price.

Meanwhile, I continued to drive my 1995 Honda Civic until December of 2005, when it succumbed to engine problems. Since I was traveling for work a lot, my car was spending most of its time parked in the North Daily Parking deck at Hartsfield airport, so my wife and I decided to see how long we could go without a second car.

We lasted until July of 2006, over six months, but at that point I changed jobs and my travel pattern changed from flying someplace different every week to driving to a customer site two hours away on Mondays and driving back on Thursdays, so I needed another vehicle. Along the way, we’d added a third kid, which meant we definitely needed something with plenty of interior seating. My wife had complained for years about not being able to switch off with me, since my Civic had a manual transmission, which she hates driving. We wanted to be able to load up all five of us in either car, which effectively meant we needed at least six-passenger capacity, since two of them are still in car seats or boosters, which take up some of the nominal seating capacity. We didn’t want another full-sized minivan (there’s only so much emasculation one can take), and we certainly didn’t want a large SUV. We did want something a little easier on gas and a bit nimbler and more fun to drive. We also didn’t want to spend vast amounts of money. We looked at all the used wagon options and so forth, but there were very few possibilities that fit all our needs, with the exception of the new Mazda 5: six passenger seating (though two of them better be kids), better gas mileage than most minivans, smaller footprint, sliding rear doors, flexible interior configuration, and actually sort of fun to drive (based as it is on the Mazda 3 platform).

In short, we’ve bought new cars on something like a five year schedule for my wife’s main vehicle, and when I needed a replacement for mine we bought new, but in each case it was because the available options on the used market just didn’t do it for us in terms of what we needed from a vehicle.

It’s all about utility. Poorer people can’t justify the depreciation costs. Wealthier people don’t care so much. Sure, a new car depreciates the most in the first year of its life, and within 3 years or so has lost half its value. So what? All that means is owning new cars is more expensive than owning used ones. And going for a vacation to the French Riviera is more expensive than staying at the Motel 6 on the Florida coast.

Do you understand why some people might choose to buy a Tag Heur watch instead of a Casio? Or who might choose to own a $3000 Gibson guitar instead of a $200 Strat knockoff? Or wear $80 jeans instead of $19 Wal-mart specials?

What people get out of a new car:

  • The enjoyment of knowing that they are the only people to have owned it.
  • A long factory warranty
  • Having the latest design
  • Everythinng’s new. The wipers clean the windows properly. The glass is pristine. There’s no play in the steering, no slop in the transmission, no squealing brakes, the tires have excellent traction, there are no rattles and squeaks.
  • The car is a known quantity. They know that outside of their monthly payments and gas, there will be no additional costs for several years, as pretty much everything is covered by the manufacturer’s warranty.
  • Features not available in older models.
  • Better financing. I bought a new Ford Escape. It was a $35,000 vehicle, and the equivalent 2 year old version was about 23,000. But the dealer was offering 0% financing for four years, and other factory incentives brought the cost down to $30,000. But the loan for the used vehicle was something like 7%. Adding in the cost of financing, the used car was just as expensive as the new one, so it was an easy decision. Even if I could pay cash, my money could earn 4-5% in the bank, which means the money cost of the used vehicle would have been around $4000 for those four years.
  • Tax deductions. When depreciation is tax deductable, it really makes a big difference.
  • Change. Some people like to change their vehicles every couple of years, simply because it’s fun and they can afford to do it. I fail to see how that’s any more crazy than wanting to spend $5000 a year on a vacation or any other luxury.

I owned one car from 1985 until 2000. I leased for a couple of years because the manufacturers were giving out insane leasing deals that actually cost them huge money, and I took advantage of it. Then in 2003 I bought the Escape, and I plan on driving it for many more years. So I’m not the new car type myself. But I wouldn’t presume to criticise others for making different choices.

Of course, some people are stupid about it. They take out long loans and buy cars they can’t afford and get themselves into financial trouble. But that’s a completely different issue.