Author Topic: How bad is it?  (Read 3529 times)

DINKs

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How bad is it?
« on: July 04, 2016, 08:52:31 PM »
Two years ago, I purchased a brand new 2014 Volvo. Since I've discovered MMM, I've learned this to be a major no-no. I bought it with cold hard cash right off of the lot. Yes, I know cars depreciate THOUSANDS as soon as you drive it off.  At the time, I paid $35K and now with the miles and depreciation it's worth about $27K. A little background, my wife was t-boned before in a terrible accident and has a severe neck injury for life, I purchased this Volvo based on its safety rating and the location/abundance of air bags it contains in the cab.

My question, I guess, is, is it really a bad investment to buy a brand new car if you intend to keep it until it literally falls apart?

With my wife and my combined income we are still on track to retire early (we are 30 y/o and intend to retire in 11 years.)

SoccerLounge

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Re: How bad is it?
« Reply #1 on: July 04, 2016, 09:29:52 PM »
I can only suggest that you look for a quality used vehicle that has a similar safety rating and number of airbags. But your situation is pretty unique. Given your wife's medical issues, it may be that your choice of vehicles is limited, and you stick with what you have. Either way, best of luck!

DINKs

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Re: How bad is it?
« Reply #2 on: July 04, 2016, 09:42:17 PM »
I can only suggest that you look for a quality used vehicle that has a similar safety rating and number of airbags. But your situation is pretty unique. Given your wife's medical issues, it may be that your choice of vehicles is limited, and you stick with what you have. Either way, best of luck!


So do I sell it while I still can get some value out of it and recoup the money?
Or keep it forever since it's already paid off?

gooki

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Re: How bad is it?
« Reply #3 on: July 04, 2016, 09:48:16 PM »
Look at it this way. With your current progress to financial independence and personal values in mind, assume you own no car.

So if you had to buy a car today, would you buy the 2014 Volvo for $27,000.

If the answer is yes, keep it.

If the answer i no, i'd buy a lower cost car, sell it.

If the answer is no, I'd buy a more expensive car, keep it and give yourself a face punch.

Altons Bobs

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Re: How bad is it?
« Reply #4 on: July 04, 2016, 09:56:17 PM »
A car is never an investment. But based on your situation, I would keep it. I have always bought new cars with cash except my college car which was a used car, I also paid cash for it. I don't feel bad for buying new cars at all.

EricL

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Re: How bad is it?
« Reply #5 on: July 04, 2016, 09:56:29 PM »
Yeah, you screwed up. But if you're truly on track to retire in your 30's, only a little  I wouldn't shed tears over that spilled milk.

happy

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Re: How bad is it?
« Reply #6 on: July 05, 2016, 02:19:42 AM »
At least you paid cash. If the car suits you, I'd keep it for its full length of life, its the second best strategy to buying used with cash.
Gooki's answer is really the correct one.

Playing with Fire UK

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Re: How bad is it?
« Reply #7 on: July 05, 2016, 02:40:35 AM »
There is value in you and your spouse feeling safer in this car. We can't say how much that should mean to you, but it needs consideration when you are weighing it up.

former player

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Re: How bad is it?
« Reply #8 on: July 05, 2016, 03:25:24 AM »
It wasn't a careless purchase: you did your research and chose the car for good reasons.  Those good reasons are still there.  And as Playing with Fire UK says, there is also value in feeling safer, particularly after a traumatic and life-changing event.

MMM is not just about saving money, it's about maximising value (which is more than just financial) while not trashing the planet.  Sometimes that gets lost in the race to find ways not to spend money.  I'd say: keep the Volvo, look after it well (keeping it garaged if you can, regular cleaning, regular servicing (much of which you can learn to do yourself if you wish) and have no regrets.

DINKs

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Re: How bad is it?
« Reply #9 on: July 05, 2016, 03:43:18 AM »
It wasn't a careless purchase: you did your research and chose the car for good reasons.  Those good reasons are still there.  And as Playing with Fire UK says, there is also value in feeling safer, particularly after a traumatic and life-changing event.

MMM is not just about saving money, it's about maximising value (which is more than just financial) while not trashing the planet.  Sometimes that gets lost in the race to find ways not to spend money.  I'd say: keep the Volvo, look after it well (keeping it garaged if you can, regular cleaning, regular servicing (much of which you can learn to do yourself if you wish) and have no regrets.

That's where I'm at with this. It's great on gas, safe, and should provide us with at least a decade or more of hassle free maintenance. We do ride our bikes as much as possible! :)

begood

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Re: How bad is it?
« Reply #10 on: July 05, 2016, 07:09:46 AM »
Just before I found MMM, we sold a 1998 Volvo S70 with about 120,000 miles on it. It was 14 years old at that point, had started needing more maintenance more often, and the backseat room wasn't great for our growing girl.

We replaced it with a new Honda Crosstour - acres of backseat room and comfortable for my husband, who has lower-back issues. But it's not as comfortable as the Volvo on long trips, and it doesn't have that "safe as houses, solid as a rock" feel that the Volvo does.

I'm already looking a decade out, thinking about going back to Volvo when the time comes. Will we buy new? We might. We drive cars a long time, and I like knowing the whole history of the car - who drove it, in what conditions, and how it's been cared for. A luxury? You bet. But a worthwhile one, in my opinion.

GuitarStv

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Re: How bad is it?
« Reply #11 on: July 05, 2016, 08:53:04 AM »
This is a little heretical, but I'm not convinced that buying a new car and driving it into the ground is substantially more expensive than buying an old car, repairing stuff, junking it, buying another old car, repairing stuff, junking it, etc. ever few years.  The latter certainly requires a lot of time commitment.

JLee

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Re: How bad is it?
« Reply #12 on: July 05, 2016, 09:04:16 AM »
This is a little heretical, but I'm not convinced that buying a new car and driving it into the ground is substantially more expensive than buying an old car, repairing stuff, junking it, buying another old car, repairing stuff, junking it, etc. ever few years.  The latter certainly requires a lot of time commitment.

I think it depends heavily on the car and also on whether or not you are willing to do your own work.  I generally sell vehicles for more than what I paid after driving them for a year or two. If you're paying a mechanic to fix everything that goes wrong, then that's definitely going to add up quickly. However, you'll run into the same maintenance items eventually on a car you buy new.

I've also never had to junk a vehicle. I tend to buy Toyota/Lexus trucks/SUVs which last practically forever if they don't rust.

Kaspian

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Re: How bad is it?
« Reply #13 on: July 05, 2016, 09:19:27 AM »
Do run that car 'til the wheels fall off.  ...And lesson learned--don't do it again.  Next time buy used.  Lots of current, new repo cars with only a few miles on them for substantially less out there to be had.  Used new car doesn't automatically mean more maintenance.