Author Topic: Car buying issues  (Read 3065 times)

whybe

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Car buying issues
« on: October 10, 2015, 01:39:09 PM »
So,

Moved to a new city.

Problem 1 - being a 0 car household has become that much harder,  especially since I now will probably need a car to get to work (40km each way +/-). Or spend 3 hours on public transport every day, which I'm OK with but find it quite draining at the end of the week, plus I'm working weird hours which are not all covered by public transport at all.

Problem 2 - DW and I have spoken a year ago and decided on a sum we were willing to put into a car. I've since changed my mind and am not interested in spending that much. We're talking $18k +/-, when converted from local currency (non US). I was thinking of somewhere in the area of 1/3-1/4 that amount as my revised amount.

This has come to light recently as my father offered us to buy his car at ~50% its market value, or $12k. It's a Renault Clio hatchback 2013 1200cc automatic. If that makes any difference. Any purchase we end up making will be in cash.

Anyhow I can't seem to get through to DW why I don't want to spend that much on a car. Obviously I think there are better things to do with this money. She is stuck on why I didn't fill her in on changing my mind. Which I have apologized for profusely.

I dont want to cave in on this,  I think it is a lot of money to be spending.

How can I move this forward to where we are both happy?

sokoloff

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Re: Car buying issues
« Reply #1 on: October 10, 2015, 02:33:53 PM »
I wonder if there isn't another issue underlying your & DW's positions.

Objectively, if you can get a 2013 for 50% under market value from a known seller, that's a pretty strong deal and may allow you to "skip a car" vs buying a car that's 7-10 years older than that and then another one 5 years from now. If your objection to spending the money only came up when DW's father made the offer, I can see why she's upset or questioning your actual motive.

This doesn't seem like an issue large enough to make into a high-stakes one or one that I'd hinge a relationship on. (Just trying to help you see the big picture.)

whybe

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Re: Car buying issues
« Reply #2 on: October 10, 2015, 02:44:27 PM »
Actually my father is making the offer :-)

pbkmaine

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Re: Car buying issues
« Reply #3 on: October 10, 2015, 02:48:24 PM »
I think you need to give in on this one. 1) It's a really good deal and 2) You had already agreed to a larger amount.

RWD

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Re: Car buying issues
« Reply #4 on: October 10, 2015, 03:01:57 PM »
You should consider the following in making your decision:

Depreciation
Assuming the Clio can be had for ~50% of market value you could own it for about five years before it was worth less than you paid for it. Compared to buying a market value $4500-6000 vehicle over the same time span you would lose about $2250-3000 in depreciation.

Opportunity cost
Worst case scenario (compared to a $4500 vehicle) the Clio will require an additional $7500 capital to acquire. At 10% interest that could be worth about $4579 in lost investment opportunity over five years. You should calculate your own estimate of opportunity cost based on how you're investing.

Fuel savings
The Clio is likely more fuel efficient than whatever you can find for $4500-6000.

Maintenance
The Clio will likely be cheaper to maintain than an older vehicle.

Insurance
You'll have to do your own research to determine differences in insurance costs.


Seems to me that the cost is likely to be similar or not much more for the Clio. Were I in your position I think I would take that offer.

gooki

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Re: Car buying issues
« Reply #5 on: October 11, 2015, 01:19:53 AM »
Be a jerk.

1. By the Clio.
2. Sell it for a 66% profit.
3. Use the profit to buy the car you do actually want to own.

End result, a free car.

Retired To Win

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Re: Car buying issues
« Reply #6 on: October 11, 2015, 08:10:48 AM »
... DW and I have spoken a year ago and decided on a sum we were willing to put into a car. I've since changed my mind and am not interested in spending that much. We're talking $18k +/-, when converted from local currency (non US). I was thinking of somewhere in the area of 1/3-1/4 that amount as my revised amount... I can't seem to get through to DW why I don't want to spend that much on a car. Obviously I think there are better things to do with this money. She is stuck on why I didn't fill her in on changing my mind. Which I have apologized for profusely.

I dont want to cave in on this,  I think it is a lot of money to be spending.

How can I move this forward to where we are both happy?

It could be that part of your wife's resistance is based on faulty assumptions about the reliability and safety of a cheaper -- ergo older -- vehicle.  You could search this Forum (or elsewhere) for lots of case histories disproving that faulty assumption.

I drive a 1996 Dodge Dakota with 140,000-plus miles on it.  My wife drives a 1998 Subaru Forester with 243,000-plus miles on it.  We've owned both vehicles well over 10 years (which also means neither was a spring chicken when we acquired it).  Both vehicles have proven to be extremely reliable, safe and useful.  Maintenance -- and occasional repair -- costs have been relatively very low, and certainly much less than the overall carrying costs of a newer vehicle would have been.

So, in our experience, older -- thus cheaper -- vehicles do work.  Maybe stories like this one can move your wife in your car buying budget direction.

Good  luck.

whybe

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Re: Car buying issues
« Reply #7 on: October 13, 2015, 01:33:51 AM »
Thanks all! Great advice.

MMM in his post about cars did say to disregard anecdotal evidence of (un)reliable cars... :-) and go for wide statistical data. Only problem is, there's no such option of magazine I know of that does what lemon aid or consumer reports do for the US market. Plus, many models which are popular here are not on a typical car owner's radar. Makes such as Skoda, Opel, Fiat, Renault, Peugeot, Citroen, Hyundai, are not even on the list even while they do offer cars with statistically better fuel consumption... So I don't know how to match what is said in said magazines with the cars on sale here...