Buy, Finance or Lease - the Car Conundrum

[don]

Hyundai After Action Report

Closed the deal. $18,600 out the door - color was right, Big Boss happy.

When I reminded the salesman this was a cash deal he blanched, stuttered and left our cubicle (of doom for many).

Up to that point I was the guy learning about his life - reversing the usual roles. We were a natural. I noticed right away his knuckles had done some work in the ring. A power puncher, he, like so many sluggers, had chronic hand issues.

Cut to the chase - to make the guy's nut, pugilist sentimentalist that I am, I agreed to a no-origination fee, no pre-payment fee, Hyundai loan with a simple interest of 2.9%. That kicked back $750 in rebates to his corner. I put $11 grand down. Total interest over 4 years is $471. In sheeple terms, ten bucks a month.

I'll make 3 or 4 months of payments and then pay it off.

All that's left is to drive it until the wheels, doors and drive line fall off.

I was happy with the judges decision.

[Polish_Silver]

psychology of resale value

However, just like a washing machine or a new furnace that you don't replace until it is worn out, the cheapest way to own a car is to buy a good used one (or new if one can afford it), maintain it well, and drive it until the wheels fall off...and don't replace it any sooner than that.

I think when you are well off, and know it , you can think like that. Most people are trying to prove to themselves, and the neighbors, that they have "made it". The cycle of selling used cars and buying new ones is an effort to prove prosperity. Only, the show of "new car" is so expensive it prevents actual prosperity from ever happening.

BTW, toyotas have very strong resale value. I bought one, used it for a year, and sold it. Altogether, it was very economical. You can get a good pricing idea by appraising the car at CARMAX. Add about 10% to the price they offer you, and that's the price you can expect to get on Craig's list. Edmunds also has an online evaluation service.

[Penguin]

Re: Pre-Owned Lease Matrix

However, just like a washing machine or a new furnace that you don't replace until it is worn out, the cheapest way to own a car is to buy a good used one (or new if one can afford it), maintain it well, and drive it until the wheels fall off...and don't replace it any sooner than that.

Sound advice. Next week Betsy, my little 4x4, turns 9 years old. Although she has endured a couple skirmishes with cars driven by lunatics she is in fabulous shape (body shops are wonderful things). Still looks beautiful and has been maintained meticulously. It was my first new vehicle so it has been babied.

I can honestly state that I haven't even been tempted by another vehicle since I bought this one. It is nice to have something that is dependable and very useful and very paid off.

Will

[thriftyandboringinohio]

Re: Pre-Owned Lease Matrix

It is nice to have something that is dependable and very useful and very paid off.

Will

+1
My 2003 Acura TL is just fine for me, thank you. Bought it in with cash in 2006, been running great, it's comfy and aging very gracefully.
I'll get another 4 years out of it easily.

[jpatter666]

Re: Pre-Owned Lease Matrix

+1
My 2003 Acura TL is just fine for me, thank you. Bought it in with cash in 2006, been running great, it's comfy and aging very gracefully.
I'll get another 4 years out of it easily.

I bought a used 1999 Ford Ranger and a used 2001 Mazda Miata (very fun to drive!) years ago for cash. The Ranger has been fantastic, never a problem. The Miata, I admittedly baby a bit and it just got a major overhaul. But both cars are well under 100K miles (I telecommute) so I expect them to last a looooong time.

In a state with personal property taxes, neither one causes any grief (as opposed to the minor heart attack when I got the bill for the wife's car)

[GRG55]

Re: psychology of resale value

I think when you are well off, and know it , you can think like that...

How did they become well off? Impressing the neighbours with regular sets of new wheels wasn't part of the formula :-)

[GRG55]

Re: Hyundai After Action Report

Closed the deal. $18,600 out the door - color was right, Big Boss happy.

When I reminded the salesman this was a cash deal he blanched, stuttered and left our cubicle (of doom for many).

Up to that point I was the guy learning about his life - reversing the usual roles. We were a natural. I noticed right away his knuckles had done some work in the ring. A power puncher, he, like so many sluggers, had chronic hand issues.

Cut to the chase - to make the guy's nut, pugilist sentimentalist that I am, I agreed to a no-origination fee, no pre-payment fee, Hyundai loan with a simple interest of 2.9%. That kicked back $750 in rebates to his corner. I put $11 grand down. Total interest over 4 years is $471. In sheeple terms, ten bucks a month.

I'll make 3 or 4 months of payments and then pay it off.

All that's left is to drive it until the wheels, doors and drive line fall off.

I was happy with the judges decision.

Well done! Evidently the picture of the pimpmobile Escalade wasn't persuasive :-)

From the commentary on this and other threads on iTulip I have the impression that Hyundai is becoming the "next Toyota" in terms of consumer views about value for money and quality of product.

[jpatter666]

Re: Hyundai After Action Report

Well done! Evidently the picture of the pimpmobile Escalade wasn't persuasive :-)

From the commentary on this and other threads on iTulip I have the impression that Hyundai is becoming the "next Toyota" in terms of consumer views about value for money and quality of product.

Several Korean companies are becoming the "quality value" choice. Witness Samsung.

[astonas]

Re: psychology of resale value

How did they become well off? Impressing the neighbours with regular sets of new wheels wasn't part of the formula :-)

I completely agree with GRG55 that the causality is most likely reversed. Regardless of how much you make, you are "well off" if you can find a way to live happily on considerably less than your income. Understanding that showing off wealth really demonstrates nothing but insecurity is a key component of this.

[sunpearl71]

Re: Hyundai After Action Report

Several Korean companies are becoming the "quality value" choice. Witness Samsung.

Kia has made great strides both in the quality and design stakes. My wife drives the tiny Picanto (bought used) for primarily city driving and is very pleased with it.

[GRG55]

Re: Hyundai After Action Report

Kia has made great strides both in the quality and design stakes. My wife drives the tiny Picanto (bought used) for primarily city driving and is very pleased with it.

Hyundai is the largest single shareholder in Kia Motors...and I think there's some commonality of parts and platforms for certain models...

[shiny!]

Re: Hyundai After Action Report

Hyundai is the largest single shareholder in Kia Motors...and I think there's some commonality of parts and platforms for certain models...

They share the same power trains and engine technology. For example, both Hyundai and Kia came out with the direct inject 1.6 litre GAMMA engines in 2012. The materials they used to build the engines differed but the design was the same. One of them (I think Hyundai) has more automated assembly, while the other has more "by hand" assembly.

[jk]

Re: psychology of resale value

I completely agree with GRG55 that the causality is most likely reversed. Regardless of how much you make, you are "well off" if you can find a way to live happily on considerably less than your income. Understanding that showing off wealth really demonstrates nothing but insecurity is a key component of this.

""Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."" mr micawber in david copperfield.

[astonas]

Re: psychology of resale value

""Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."" mr micawber in david copperfield.

Wow, that is creepy! I was about to include the exact same quote, but got interrupted and opted to quickly hit "Post", since I didn't have time to look it up. Thanks!

[jk]

Re: psychology of resale value

Wow, that is creepy! I was about to include the exact same quote, but got interrupted and opted to quickly hit "Post", since I didn't have time to look it up. Thanks!

i don't think it's creepy. this is a community so it is full of fairly like-minded people. and being the community it is, those people are fairly literate and familiar with the cultural endowment. as for looking it up, all it took was googling "dickens shillings happiness."