Author Topic: Optimal way to spend $3-4k/yr to drive a car for a couple of years? Covid Ed  (Read 4257 times)

chesebert

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I have sorted out my priorities as easy > nice > cheap.

Are you changing the thread title to: Easiest way to drive a nice car for a couple of years?

I'm sure there are many dealerships that would be happy to deliver a brand new car to your door. https://www.tesla.com/support/delivery-options
That's fair; I should probably change. I don't think I can drive a Tesla for $3-4k a year - can I?

Optimiser

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I have sorted out my priorities as easy > nice > cheap.

Are you changing the thread title to: Easiest way to drive a nice car for a couple of years?

I'm sure there are many dealerships that would be happy to deliver a brand new car to your door. https://www.tesla.com/support/delivery-options
That's fair; I should probably change. I don't think I can drive a Tesla for $3-4k a year - can I?

You could probably get pretty close. Here is a listing for a 2019 Model 3 with 8,000 miles listed for the same price as a brand new standard range plus. Asking price and actual sales price on a used car obviously aren't the same, but depreciation on Teslas does seem to be pretty low.

Paper Chaser

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If purchase price, and cost of insurance/registration/etc don't matter, then all you're looking for are vehicles that won't depreciate much. Those break down into two categories:

1) vehicles at the bottom of their depreciation curves - typically older, higher miles. They'll have very low purchase price, and will be cheap to register/insure. (you seem reluctant to go this route for a few reasons)

2) new vehicles that don't depreciate much - you can just google this. You'll get lots of trucks and Jeep Wranglers and things that will make terrible city vehicles but there will be other options too. Many of those other options (camrys, etc) would also fall into ideal vehicles from the first category too, where they have strong reliability and a low buy-in. People know this and that's the reason for the slowed depreciation.

A Tesla might be an interesting option, especially if there would be any kind of state funded tax credit for buying new. But do you have a place to charge it regularly? Is your valet reliable enough to do that frequently? Or could you charge while at work? Insurance costs for Teslas are all over the place, which makes that hard to predict. And their network of service stations is sparse in most of the country, so if anything were to go wrong you might experience more downtime than other more traditional models. They also have some track record (minimal as far as I know) of removing features paid for by the original owner when ownership changes, and that might impact resale value.
« Last Edit: June 18, 2020, 10:57:28 AM by Paper Chaser »

chesebert

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I would want to cap the cost at $25k - I hate tying up too much funds in a depreciating asset. Is Tesla still a possibility?

Optimiser

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I would want to cap the cost at $25k - I hate tying up too much funds in a depreciating asset. Is Tesla still a possibility?
No

This website ranks brands by resale values and you can look at it by individual models as well: http://usedfirst.com/ranks/ It should give you some idea of what to expect in depreciation even if you are going to lease something new.
« Last Edit: June 18, 2020, 11:56:30 AM by Optimiser »

chesebert

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This is very helpful and what I need.

chesebert

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I haven't read the thread yet but Hertz is off loading most of its cars either thru their dealerships or via the "Rent2own" program. Many newer low mileage cars going for low cost. Something like a 2019 Nissan Versa with 30k - 40k miles going for around $8500. I'm looking for a car myself (small van) and check out cars.com and truecars.com as well asocal dealers who seem to have some good used car deals now.

Just read that the OP is looking more for a high end expensive luxury car. Hertz has those too well under price IIRC.
That is fantastic. It's so difficult to decide when to jump into car ownership. I know I will need a car in the fall for sure, but I can probably still hold out for a few months before I go to the office. I think between parking, auto and umbrella insurance, I am gonna be out at least $450/month, whether I drive or not.

chesebert

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Final solution: lease a cheap Hyundai for 24 months. Easy, check; cheap, check; nice, lol.  I can get into a car whenever I am mentally ready to go back to work, and when I am done in 2 years I can just drop it off at the dealer.

Parking + insurance+gas will be like $500/month ..lol.
« Last Edit: June 19, 2020, 08:14:44 PM by chesebert »

Ecky

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Korean cars seem to offer some of the best value recently, and their reliability is (generally) very good too - it's come a long way in the last 20 years. This seems a fair option to me, given your preferences. I personally wouldn't lease, but I'm also in a situation where I need to be much more financially mindful.

Be aware that newer cars have much higher insurance costs than older ones, and leased vehicles typically have higher insurance requirements. We pay $19 per month to insure our older Hondas.

chesebert

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Exactly. My ancillary costs will comprise the larger portion of the total auto cost. The insurance problem is compounded by the fact that I now need to carry umbrella insurance as the liability on typical auto would not be high enough to protect me. I also would separate umbrella insurance carrier from auto carrier, thus eliminating any combo deals - always better to have 2 companies with deep pockets.