Author Topic: Bought a New Car- Do I Deserve a Facepunch?  (Read 5837 times)

Snowman99

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Bought a New Car- Do I Deserve a Facepunch?
« on: July 23, 2018, 12:47:28 PM »
So the twelve year old civic I was driving needed over $1k of repairs to get her to pass inspection this month, which did not include a nebulous "check engine" light problem that also needed to be diagnosed.  I have been driving without AC for four years (commuting 2 hours a day)- another $1k fix for a new compressor.  Not to mention, I was borrowing my wife's car whenever I met with clients so they did not perceive (without justification of course) that they have a bad lawyer.  Edmunds tells me the car is worth between $250-$750.

Rather than throw good money after bad, I retired the old machine and purchased a BRAND NEW car.  Toyota Camry.  I did this because it didn't seem like a decent used car depreciated that much from new and it was just easier.  Dealer knocked down the price to about $20k (MSRP $25K).  New Camry's get about 41 MPG on the highway- about the same as the old Civic.

The car drives really nice and I financed it on account of the 0.9% interest rate.  I have no qualms about the purchase and am now scratching my head as to why I did not do this earlier on account of the ride quality, etc.  Car is necessary for work to meet clients, go to court appearances, depositions, etc.

I plan on keeping this car until it likewise becomes more of a problem than it's worth and it should likely last 10 or so more years (I drive about 20k miles a year).

I'm just wondering: do I deserve a face punch for this, or was this a sound decision?

jim555

  • Handlebar Stache
  • *****
  • Posts: 1705
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #1 on: July 23, 2018, 12:52:52 PM »
Ride it till the wheels fall off.  At least 15 years.  I bought new and rode a car for 16 years, and I'm on 10 on the latest one.

GuitarStv

  • Senior Mustachian
  • ********
  • Posts: 11357
  • Age: 37
  • Location: Toronto, Ontario, Canada
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #2 on: July 23, 2018, 12:54:34 PM »
I bought a new Toyota corolla 13 years ago, and don't think that we lost enough money over that period to be of any concern.

Altons Bobs

  • Bristles
  • ***
  • Posts: 290
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #3 on: July 23, 2018, 01:14:56 PM »
Sound decision. Besides my college car, I've always bought brand new cars and I actually didn't want to replace the last one, but dh was tired of taking it to the shop, he kinda forced me to get a new car, so I did, and my current car is 10 years old, I'd like to drive it for another 10 years unless it breaks down often and is expensive to fix.

August26th

  • 5 O'Clock Shadow
  • *
  • Posts: 39
  • Location: Beautiful Colorado
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #4 on: July 23, 2018, 01:28:27 PM »
Sounds like a good decision in my opinion. You negotiated a great deal and are getting a fantastic interest rate.

Enjoy the car! And drive it for a loooooong time.

Liberty Stache

  • Pencil Stache
  • ****
  • Posts: 755
  • Location: Boston, Massachusetts
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #5 on: July 23, 2018, 01:30:55 PM »
...(I drive about 20k miles a year)...

I'm just wondering: do I deserve a face punch for this, or was this a sound decision?

Buying the Camry? No.
Driving 20,000+ miles each year...yes...even though most of it is probably for work

Snowman99

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #6 on: July 23, 2018, 01:43:12 PM »
...(I drive about 20k miles a year)...

I'm just wondering: do I deserve a face punch for this, or was this a sound decision?

Buying the Camry? No.
Driving 20,000+ miles each year...yes...even though most of it is probably for work

Exclusively for work.  If I didn't have to work, I wouldn't need the car in the first place!!!!!!

Moving closer to work not an option on account of several variables not worth getting into here.

mathlete

  • Pencil Stache
  • ****
  • Posts: 741
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #7 on: July 23, 2018, 01:56:14 PM »
The difference between new and pre-owned is probably negligible to a lawyer on the path to financial independence.  You survived four years of driving without AC. Treat yourself.

MrThatsDifferent

  • Pencil Stache
  • ****
  • Posts: 701
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #8 on: July 23, 2018, 02:17:22 PM »
You deserve the face punch for not doing it sooner...jk

Warlord1986

  • Handlebar Stache
  • *****
  • Posts: 1052
  • Age: 32
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #9 on: July 23, 2018, 02:23:55 PM »
Yeah, you deserve a face punch. But I won't be the one to deliver it because I bought a new Prius 2.5 years ago. I paid it off six months early and now own it outright. I intend to drive it until the wheels fall off.

We can be face punched together. Hold my hand. We'll get through it.

I'm more curious about why the hell you're driving two hours each day. FFS, give yourself a better commute!

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #10 on: July 23, 2018, 06:04:23 PM »
Dealer knocked down the price to about $20k (MSRP $25K). 

Are you sure about that?  That's well below dealer cost - I would expect maybe $2K off stick price max on a new Camry.

Snowman99

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #11 on: July 23, 2018, 06:49:45 PM »
Yes. Pretty sure. After all I did buy the car.

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #12 on: July 23, 2018, 07:02:03 PM »
Yes. Pretty sure. After all I did buy the car.

Seems a little fishy that the dealer would sell it for a loss.   Flood car maybe.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4463
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #13 on: July 23, 2018, 07:11:00 PM »
Common to discount these cars below the fake dealer invoice.  However, $20k is an exceptionally good deal with the 0.9 percent financing.  I would do that deal in a heartbeat if I needed a new car.  Where are you located?  You can't get that price in the SF Bay Area.

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #14 on: July 23, 2018, 07:27:17 PM »
Common to discount these cars below the fake dealer invoice.  However, $20k is an exception

That's my point.  That's extreme.  If it was a flood car or some other shenanigans going on, then it would make more sense.  I actually looked into what buyers were paying for Camrys some years back, and they were typically paying within $2000 of the sticker price of near what this one was said to be.
« Last Edit: July 23, 2018, 07:31:12 PM by DreamFIRE »

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4463
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #15 on: July 23, 2018, 07:44:34 PM »
Based on the quoted highway mileage, I assume OP got the "L"  trim.  Haven't seen those here, the LE is the big seller. You should be able to negotiate almost $3k off here, but not sure you could get the 0.9 percent financing with that price.

No new flood cars out there.  Used cars, maybe, but the new ones can't be sold as new and undamaged.

G-dog

  • Senior Mustachian
  • ********
  • Posts: 10359
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #16 on: July 23, 2018, 08:09:37 PM »
You seem to want a face punch, otherwise why post here?  😎

My car got totaled earlier this year (2005 Toyota RAV4).  I looked at the Certified Pre-Owned and used options. Toyota’s do hold value pretty well. At least one reputable web article suggested that certified pre-owned may just be paying a premium to get existing non-expired warranty coverage - so I excluded those. I did chose a 2013 Toyota RAV4 from a dealer.  But you do have to do a fair amount of research to buy used (and new - but that’s narrower scope I think).

TL;DR - you could have gotten used. If you want to slap yourself around a bit, that’s fine.  But time is money too.


EnjoyIt

  • Pencil Stache
  • ****
  • Posts: 933
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #17 on: July 23, 2018, 08:41:29 PM »
I think this was a reasonable purchase and I agree that if you are keeping the car till the repairs cost more than they are worth buying a new Toyota is very reasonable since the long term cost per year vs buying used will be negligible.  Basically by buying new you get a few more usable years out of the car.  I agree though that the 2 hour commute is brutal. That alone would make me want to change paths.  I guess you have your reasons and if the plan is short term may be worth it.  2 hours commutes is not something I would want to do for the next 20-30 years of my life but may be willing to do it if the end really justified the means.

pecunia

  • Bristles
  • ***
  • Posts: 454
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #18 on: July 23, 2018, 08:47:15 PM »
It does give you a good feeling to have a new car for a while.  Then two weeks and maybe 1,000 miles pass.  It is no longer new.  Just imagine those two weeks have passed and forget the face punch.

One break down on an older vehicle and you would have gladly accepted that face punch to have avoided it.

EricL

  • Pencil Stache
  • ****
  • Posts: 800
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #19 on: July 23, 2018, 09:17:03 PM »
You deserve a face punch for driving 2 hours a day. WTF?   But solid call on the car purchase. You eked out every drop of life from your old Toyota and replaced it with something that might carry you to FIRE. 

Snowman99

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #20 on: July 24, 2018, 07:16:56 AM »
Thanks everyone.  It feels strange and guilty to buy such a luxury item such as a base model Camry.  Don't feel so guilty anymore.

As for the armchair experts who don't believe the price I paid, the best thing about these anonymous forums is that I don't really care whether you believe me or not.  Going forward, you should know that MSRP is a total BS number and the car company isn't "losing money."  If it makes you feel better, though, the dealer refused to take off a BS "documentation" charge of $495, so perhaps they made their money there.

I agree that the 2 hour commute is terrible, but it is a necessary evil at this point.  Eventually plan to telecommute once feasible so hopefully not for long.

the_fixer

  • Bristles
  • ***
  • Posts: 369
  • Location: Colorado
  • mind on my money money on my mind
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #21 on: July 24, 2018, 08:24:35 AM »
My opinion is if you HAD to finance it then you deserve a face punch for buying more car than you can afford.

If you have the funds to pay cash but decided that you could get a better ROI on your money then that is a personal choice and I have no issue with that.

Sent from my Pixel 2 XL using Tapatalk


Fireball

  • Stubble
  • **
  • Posts: 211
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #22 on: July 24, 2018, 08:26:01 AM »
Looks like a 2014-2016 Camry L with low miles is $14,000-ish in my area. I think buying slightly used is still the best financial decision, but people in glass houses shouldn't throw stones. So....congrats!

fattest_foot

  • Pencil Stache
  • ****
  • Posts: 546
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #23 on: July 24, 2018, 08:34:23 AM »
My personal opinion is that buying new isn't actually bad as long as you're driving it until it no longer becomes worthwhile to make repairs; driving the car throughout the entire lifecycle.

The people who need facepunches are those that buy new and then sell 3 years later. They're eating the depreciation and that's about it.

I also don't think financing is a terrible idea. I bought my last car, new, with a 0.99% interest rate. For the entire loan period it was about $350 in interest. I'd argue that it would've been stupid not financing it.

inline five

  • Pencil Stache
  • ****
  • Posts: 617
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #24 on: July 24, 2018, 08:35:06 AM »
I think you made a prudent choice given your set of circumstances.

I was faced with a similar dilemma on a 20 year old car several years ago. However my difference was I only drive 3k miles a year and I can work on my own stuff. I elected to put about $1,500 into it for new steering and suspension components plus new tires. The AC repair required a weekend but saved around $1,000 as it was the evaporator. Under $100 in parts. I know how to evacuate and charge the system too so that was only $11 in R134a vs a couple hundred charged at a shop.

It's almost laughable when I think about this stuff and look at our income on a monthly basis. To be honest since you drive so much you really do need a newer car, a cheap unreliable one is probably not in your best interests. Overall it will be a drop in the bucket over 10-15 years of ownership.

Slow&Steady

  • Bristles
  • ***
  • Posts: 477
  • Location: Midwest
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #25 on: July 24, 2018, 08:35:58 AM »
I also buy new cars and drive them for 10+ years.  I am currently driving a 2017 Nissan Leaf, my neighbor pointed out to me that they have a horrible trade in value.  I told him that I was sure they do but that wouldn't really matter much since the plan is for it to be my daughters 1st car in 10-12 years and I am sure it will reach the end of it's life while teaching a teenager how to drive.  The 2006 Prius (that was purchased brand new) is currently acting as a bumper car for an 18 year old and I couldn't be prouder of that car.  - no face punch from me on that one.

I also commute 2 hours a day.  I hate it but it suits my family and my non-work related life better than living closer to work.  We each have the privilege of choosing our own priorities and if living closer to work is not one of your priorities that is your/my privilege to choose that. - no face punch from me on that one either. 

Lanthiriel

  • Pencil Stache
  • ****
  • Posts: 727
  • Location: Portlandia
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #26 on: July 24, 2018, 08:58:02 AM »
About 3 months ago I bought a 2018 Honda Fit EX for $18.5k out the door with 0.9% financing. It replaced my 2005 Ford Escape that got 18 mpg. Since then I got a job that is 10 miles from my house instead of the 3 miles I was commuting before. I very much appreciate having a more comfortable, quieter car with twice the gas mileage. I also drive it to other office locations once or twice per month that are 3-ish hours away and enjoy that the $0.545/mile does more than cover my gas. My point? I get it. It's nice to buy something reliable at basically cash levels of financing (my Ally savings account is throwing off 1.75% interest, so it makes no sense to pay cash).

Snowman99

  • 5 O'Clock Shadow
  • *
  • Posts: 49
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #27 on: July 24, 2018, 09:59:54 AM »
I also buy new cars and drive them for 10+ years.  I am currently driving a 2017 Nissan Leaf, my neighbor pointed out to me that they have a horrible trade in value.  I told him that I was sure they do but that wouldn't really matter much since the plan is for it to be my daughters 1st car in 10-12 years and I am sure it will reach the end of it's life while teaching a teenager how to drive.  The 2006 Prius (that was purchased brand new) is currently acting as a bumper car for an 18 year old and I couldn't be prouder of that car.  - no face punch from me on that one.

I also commute 2 hours a day.  I hate it but it suits my family and my non-work related life better than living closer to work.  We each have the privilege of choosing our own priorities and if living closer to work is not one of your priorities that is your/my privilege to choose that. - no face punch from me on that one either.

Also, the best thing about driving a car into the ground is that there is no way for the dealer to screw you on the trade! 

Just Joe

  • Handlebar Stache
  • *****
  • Posts: 1994
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #28 on: July 24, 2018, 10:38:03 AM »
I would have suggested looking for an off-lease car with 35K miles on it but otherwise good purchase. Sedans are taking a kicking from trucks and SUVs right now so the deals are probably on the sedans. Enjoy the new car. We replaced nearly 20 year old car a couple of years ago with an off-lease used. The difference was night and day between the ride qualities of the two vehicles. Quiet and comfortable.

the_fixer

  • Bristles
  • ***
  • Posts: 369
  • Location: Colorado
  • mind on my money money on my mind
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #29 on: July 24, 2018, 11:36:02 AM »
Surprised by all of the people suggesting that it is ok to finance a car without further qualifying statements.

I get it that you can make more on your return but only if you actually invest that money and far too many people fail to do so.

Add to that people buying more car than they normally would becuse they are financing it and it is only $10 more a month and ensuing lifestyle creep.


So many reasons to avoid financing a car or anything else and the lackadaisical attitude shown towards it is not reflective of the risk that it can pose

Sent from my Pixel 2 XL using Tapatalk


bacchi

  • Magnum Stache
  • ******
  • Posts: 2846
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #30 on: July 24, 2018, 11:42:41 AM »
I would have suggested looking for an off-lease car with 35K miles on it but otherwise good purchase. Sedans are taking a kicking from trucks and SUVs right now so the deals are probably on the sedans. Enjoy the new car. We replaced nearly 20 year old car a couple of years ago with an off-lease used. The difference was night and day between the ride qualities of the two vehicles. Quiet and comfortable.

Yep. A slightly used car takes some of the insta-depreciation out of the 2nd owner's hands.

Just Joe

  • Handlebar Stache
  • *****
  • Posts: 1994
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #31 on: July 24, 2018, 02:28:41 PM »
Hey, the ideal used car is our "other" car which is worth about a grand. Still I understand appearances and reliability matter professionally sometimes.

DreamFIRE

  • Handlebar Stache
  • *****
  • Posts: 1108
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #32 on: July 24, 2018, 02:48:55 PM »
Going forward, you should know that MSRP is a total BS number and the car company isn't "losing money." 

MSRP?   I said, "below dealer cost", not anything about MSRP.  You do realize they aren't the same thing, don't you?

dacalo

  • 5 O'Clock Shadow
  • *
  • Posts: 15
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #33 on: July 24, 2018, 03:42:58 PM »
Good job OP. My car is 12 years old now and it runs well with working AC. Wife's car is 6 years old. Dreading the day we have to buy a car.

Accidental Miser

  • Pencil Stache
  • ****
  • Posts: 500
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #34 on: July 24, 2018, 04:01:45 PM »
We bought a new Accord two years ago under similar circumstances.  I estimate we will keep it for at least 25 years and I know what kind of maintenance it has had all its life.  You will get a face punch if you don't drive it at least 200k miles.  Check back when you sell!

pantherchams

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #35 on: July 24, 2018, 04:49:07 PM »
Yes, you deserve a face punch.  You could have got like a 2015 Camry with 30K miles on it.  Now you'll be paying for a lot of depreciation. 

Feels dickish to deliver a face punch... but I mean, you asked. I was just in the same position 6 months ago and bought a 2011. 

But it's your money; if this is what makes you happy, then good on you. And who cares what i think anyway...

What he/she said.

I don't understand buying new and taking the depreciation hit vs. a couple years old with low mileage.  The other HUGE upside (IMO) with this strategy is you can get a fully loaded vehicle, or one with the options you want, without paying anything for it versus buying a new stripped down version, which is the only version you can consider if you're making the argument there "isn't a real cost savings buying used".

But whatever floats your boat.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4463
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #36 on: July 24, 2018, 04:59:20 PM »
You got a great deal, even for the L trim.  That's why I asked where you are located.  In California, the doc fee is set by state law and is much lower, but even with the $495 doc fee, you did very well.  It would take a lot of hard negotiating to get more than $3k off MSRP here in Silly Valley, where the streets are apparently paved with gold.  If you accomplished that, it would be tough to get the 0.9 percent financing because there are incentive trade-offs involved. 

The used cars you see on dealer lots that are three years old are mostly lease returns.  They haven't always been well maintained.  Dealers call the better ones certified and ask top dollar.  Used is a different market, mostly financially weaker people that don't negotiate well and pay too much.  I would rather buy new and negotiate down to a slightly higher price. 

With your job, a new or newer car is important.  I have no issue with what you did, in your shoes I would have done that deal in a heartbeat.

daschtick

  • 5 O'Clock Shadow
  • *
  • Posts: 70
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #37 on: July 24, 2018, 08:34:51 PM »
I'm glad people buy lots of new cars - This ensures that there are plenty of excellent used cars available to choose from.  However, it is nothing to sweat over - that was a reasonable purchase.  Truth be told, I have fallen victim to new car smell a time or five(!) in my life also - Doh!

pantherchams

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #38 on: July 24, 2018, 08:41:11 PM »
The used cars you see on dealer lots that are three years old are mostly lease returns.  They haven't always been well maintained.  Dealers call the better ones certified and ask top dollar.  Used is a different market, mostly financially weaker people that don't negotiate well and pay too much.  I would rather buy new and negotiate down to a slightly higher price.

Lease take offs are poorly maintained, and people who buy used are financially weak and pay too much?  Whatever you gotta tell yourself. Glad lots of people are buying new.

Accidental Miser

  • Pencil Stache
  • ****
  • Posts: 500
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #39 on: July 24, 2018, 08:51:31 PM »
Surprised by all of the people suggesting that it is ok to finance a car without further qualifying statements.

I get it that you can make more on your return but only if you actually invest that money and far too many people fail to do so.

Add to that people buying more car than they normally would becuse they are financing it and it is only $10 more a month and ensuing lifestyle creep.


So many reasons to avoid financing a car or anything else and the lackadaisical attitude shown towards it is not reflective of the risk that it can pose

Good Point @the_fixer ,  Although this may not apply to the OP, it sure as hell applies in a general sense.  The offer of below market rate financing has relieved millions of people of billions of dollars that they wouldn't have spent otherwise.  If the choice is between buying a sound and serviceable three year old car for 15K out of pocket or a new car for 25K with 60 months  at 0%, lots of folks will buy the new car and ultimately spend 10k that they probably didn't need to spend simply because it was easier to pay that over time.

I am susceptible to this and I know that it's easy to look at the payment and not see the ultimate BIG impact of the extra spend.  It's for this very reason that I will no longer borrow money for anything again.  It's too easy for me to ignore the aggregate cost in the moment.

TheAnonOne

  • Handlebar Stache
  • *****
  • Posts: 1383
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #40 on: July 24, 2018, 08:53:33 PM »
This board has gotten so damn soft.

Buying a new car is NEVER the most prudent choice. You probably could have found one 1-3 years old for 5k less with hardly any miles, or even better something with 50k+ miles for barely 10k.

The facepunch is deserved 100% you have failed MMM class today.


Anyway, enjoy your new car. It's too late to bring it back now!

swampwiz

  • Bristles
  • ***
  • Posts: 347
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #41 on: July 27, 2018, 06:00:49 PM »
So the twelve year old civic I was driving needed over $1k of repairs to get her to pass inspection this month, which did not include a nebulous "check engine" light problem that also needed to be diagnosed.  I have been driving without AC for four years (commuting 2 hours a day)- another $1k fix for a new compressor.  Not to mention, I was borrowing my wife's car whenever I met with clients so they did not perceive (without justification of course) that they have a bad lawyer.  Edmunds tells me the car is worth between $250-$750.

Rather than throw good money after bad, I retired the old machine and purchased a BRAND NEW car.  Toyota Camry.  I did this because it didn't seem like a decent used car depreciated that much from new and it was just easier.  Dealer knocked down the price to about $20k (MSRP $25K).  New Camry's get about 41 MPG on the highway- about the same as the old Civic.

The car drives really nice and I financed it on account of the 0.9% interest rate.  I have no qualms about the purchase and am now scratching my head as to why I did not do this earlier on account of the ride quality, etc.  Car is necessary for work to meet clients, go to court appearances, depositions, etc.

I plan on keeping this car until it likewise becomes more of a problem than it's worth and it should likely last 10 or so more years (I drive about 20k miles a year).

I'm just wondering: do I deserve a face punch for this, or was this a sound decision?

I would say that $20K for a new car is Moustachian.  Of course, the problem with a new car today is that it will probably go obsolete (i.e., to the driverless car) before it dies.

I have a beater VW with about 165K miles and a CEL.  The wholesale value on it is about $350, LOL.

swampwiz

  • Bristles
  • ***
  • Posts: 347
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #42 on: July 27, 2018, 06:06:05 PM »
We bought a new Accord two years ago under similar circumstances.  I estimate we will keep it for at least 25 years and I know what kind of maintenance it has had all its life.  You will get a face punch if you don't drive it at least 200k miles.  Check back when you sell!

The government might outlaw human driven cars before 2040!

Dicey

  • Walrus Stache
  • *******
  • Posts: 8056
  • Age: 60
  • Location: NorCal
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #43 on: July 27, 2018, 07:57:47 PM »
Common to discount these cars below the fake dealer invoice.  However, $20k is an exceptionally good deal with the 0.9 percent financing.  I would do that deal in a heartbeat if I needed a new car.  Where are you located?  You can't get that price in the SF Bay Area.
I had the same question.We helped a friend buy a new one last year and her dad a few months after that. They got good deals for the Bay Area, but not $20k, and certainly not for the new model. I'm not against purchasing new vehicles under the right circumstances, and yours seem to fit.

dustinst22

  • Bristles
  • ***
  • Posts: 375
  • Age: 39
  • Location: Huntington Beach, CA
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #44 on: July 28, 2018, 12:08:44 AM »
I'd say it depends on your net worth position and how far you are from FI.

If you haven't hit FI, my general rule of thumb is to spend no more than 10% of income on a car.

mizzourah2006

  • Bristles
  • ***
  • Posts: 365
  • Location: NWA
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #45 on: July 28, 2018, 06:47:10 AM »
It’s been my experience that if you can wait it out and keep an eye out that the difference between new and used is nowhere near as large as people say until you start to get to the 80-100k miles mark. I was looking at Terrain’s at the end of 2015 and the 2012-2013s with 40-60k miles on them were between $18-$20k for the things my wife wanted (obviously the $18k ones were the older and around 60k miles). We talked to the dealer and got them to give us a new one for just under $23k. I’d rather have an extra 40k miles than save $2-$3k, but to each their own.

Prairie Stash

  • Handlebar Stache
  • *****
  • Posts: 1499
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #46 on: July 30, 2018, 02:22:37 PM »
Facepunch. A camry drops $5000 in year one (and the 2018 are 11 months old) and another $4000 in year 2 according to the link provided. The first year of driving the car will have $0.31/mile depreciation. The next year is $0.17/mile, you always pay extra for that new car smell.

https://usedfirst.com/cars/toyota/camry/

The 2019 camry's are coming out in the next 2 months, at which point the 2018 models are worth about $20,000...you didn't get any deal at all.  So you paid full price on last years model. A quick google search will show you got standard finance rates and the standard price for July. That's what my local online listing are; $20,000 and 0.9% financing for 2018 models. I don't even need to ask the salesmen, thats the full local list price on a car that was $25,000 last fall when it came out.

This board has gotten so damn soft.
The facepunch is deserved 100% you have failed MMM class today.
pretty much, paying full price for a new car is strange to endorse.

Another Reader

  • Magnum Stache
  • ******
  • Posts: 4463
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #47 on: July 30, 2018, 06:19:56 PM »
"The 2019 camry's are coming out in the next 2 months, at which point the 2018 models are worth about $20,000...you didn't get any deal at all.  So you paid full price on last years model. A quick google search will show you got standard finance rates and the standard price for July. That's what my local online listing are; $20,000 and 0.9% financing for 2018 models. "

New or used?  You can't find that car new at that price in the Bay Area.  Truecar says an exceptional price is around $21,600.  I think I could do a couple of hundred better, maybe a little more today or tomorrow, because EOM.  Perhaps you can copy that local online listing here, if it's for a new car.  Then those folks that want to buy one can call that listing.

Cars don't depreciate the way you describe.  Go on your local dealer's lot and see what you will have to pay for a used 2018 with 5k miles, even after haggling.  The price will be very near the new price, because used buyers are a different crowd.


mizzourah2006

  • Bristles
  • ***
  • Posts: 365
  • Location: NWA
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #48 on: July 31, 2018, 06:24:22 AM »
Facepunch. A camry drops $5000 in year one (and the 2018 are 11 months old) and another $4000 in year 2 according to the link provided. The first year of driving the car will have $0.31/mile depreciation. The next year is $0.17/mile, you always pay extra for that new car smell.

https://usedfirst.com/cars/toyota/camry/

The 2019 camry's are coming out in the next 2 months, at which point the 2018 models are worth about $20,000...you didn't get any deal at all.  So you paid full price on last years model. A quick google search will show you got standard finance rates and the standard price for July. That's what my local online listing are; $20,000 and 0.9% financing for 2018 models. I don't even need to ask the salesmen, thats the full local list price on a car that was $25,000 last fall when it came out.

This board has gotten so damn soft.
The facepunch is deserved 100% you have failed MMM class today.
pretty much, paying full price for a new car is strange to endorse.

This is a weird argument because it assumes the only value a car has is associated with the year it was manufactured and the only reason you own a car is to re-sell it. To me personally a car with 0 miles on it has more value than a car with 40k miles on it because that provides an additional 3.5 years of use given our average miles per year driven and this is regardless of the year.

Given your argument a 2018 model with 0 miles on it is worth the same as a 2018 that has 20k miles on it just because the manufacturer’s model is 2018 and when the 2019s come out the value automatically drops 5k. To me the value of a 2018 vs a 2019 with identical mileage is identical because when I try to sell it in 12-15 years there will be no difference to buyers/dealers.

the_fixer

  • Bristles
  • ***
  • Posts: 369
  • Location: Colorado
  • mind on my money money on my mind
Re: Bought a New Car- Do I Deserve a Facepunch?
« Reply #49 on: July 31, 2018, 08:02:06 AM »
One reason the value drops due to model year is the the dealership typically discounts the prior model year to get them off the lot to make room for the next year.

It is a manufactured / psychological thing.

Take your average person going into the dealership and looking at 2 cars a 2018 and a 2019 both are exactly the same with 0 miles and the exact same price what one do you suspect they will buy? Of course they will buy the newer one because who wants to say they have a 2018 when they can have a 2019 IE the latest greatest. Hence the reason that the price gets discounted to move the old stock.

As the discounted sales are reported the value on all of that model year drop and for the first few years this causes the value to drop but flattens out as it gets older as buyers are then looking at condition VS newness


Now take a pair of Jeans one made in 2018 and one in 2019 both are the same cut and same price no one would think to look at the date of manufacture and would just grab the pair on top.

Like it or lump it that is the way it is



Sent from my Pixel 2 XL using Tapatalk
« Last Edit: July 31, 2018, 08:07:46 AM by the_fixer »