Why would someone be interested in buying a rapidly depreciating asset like a used gas guzzling SUV? Even if you pay low book value for the vehicle, the rapid depreciation is no bargain. If the book value let's say is $30,000, I would pay no more than $15,000 for the SUV because I know it will continue to depreciate so fast. Does this make sense to you?
What's the advantage of buying an SUV at a "bargain" vs paying a premium for a car that will have excellent resale value later on?
I don't drive much either and the driving I do is in town driving, where I only get about 20mpg in the summer. It's getting to the point of where it costs more in gas than it does to aquire goods at the store. I'm thinking about buying a small used compact car because it won't depreciate as fast in resale value as a large sedan or SUV. I don't understand the argument people make that you have to drive so many miles a year to break even in the savings for a compact car. If I have $20,000 to spend for a used car, why should I buy a large sedan over a small compact car? Also, why should I pay low book value for a gas guzzling SUV? If the book value is $35,000, the most I would pay is $20,000 because I know the vehicle will depreciate rapidly and so I need a "hedge" against future depreciation
We are talking daily drivers here; neither of the cars you mention would make an economical daily driver, but a great colletor car. A guy down the road from me owns an immaculate Camaro Berlinetta with the big 8. Gas mileage is irrelvant in a collector car.
I believe that website also gave cost figures of $300,000 for 100,000 miles on a Prius, and like $570,000 for 300.000 miles on a Hummer. No junk science; insanity.
you want to save $ on your vehicle? i usually pay cash for a $2000 to $4000 car. if i buy american i try to stay under 70,000 miles, german or japanese under 150,000 miles. i generally drive for about 8 - 18 months then sell it for what i paid for it. with very few exceptions i have also found the better the car (mercedes, bmw, lexus, toyo, infinity) the more economical the car. fewer repairs and higher resale. since i don't ever have a car payment i can drive whatever i want and the $500 - $600 a year i might spend extra in fuel doesn't effect me adversley. the cool part is i change cars often so i get to drive a nice variety of them. now i realize that some people have special car needs (towing, large families etc. etc) but my system should still work. i do try to stay away from american cars. i currently have a 95 buick park ave. paid $2000 a year ago w/ 80,000 miles. it now has 89,000 on it and has cost me $2600 in repairs. as soon as i get that new motor in she's gone!!!!!!!!!! the only thing i do miss is that "new car smell". i have looked and looked for an air freshener that truley smells like new car but no luck.
the only thing i do miss is that "new car smell". i have looked and looked for an air freshener that truley smells like new car but no luck.
If you knew what was in that "new car smell", you probably wouldn't want it. It's mostly plasticizers and other gunk outgassing from all the plastic and synthetics inside the cabin. Some of it's fairly toxic.
I'd like to buy a boat. I don't live on a lake, but am close to many lakes. I'll probably use the boat <10 times per summer locally, and then tow it ~1,000 miles for summer vacation and use it daily for 2 weeks.
My car ('02 Acura TLS) has a towing capacity of 1,000 lbs, probably limited by its ability to stop. The towing weight of the boat will be somewhere between 2000 and 4000 pounds (boat + trailer + gas + toys).
About 3 days/wk I drive a long way to work (~50 miles) on a winding, hilly road in New Hampshire. The ability to pass in a short distance saves me ~10 minutes each way...hence the muscly TLS.
Here's how I see my choices:
1) Buy a second vehicle for towing: Factoring in the incremental costs of getting a second used vehicle for towing (depreciation, repair, insurance, registration), I would guess that this scenario would cost ~$2k per year.
2) Replace my primary vehicle with a used one that will serve all purposes: This would also yield an incremental cost of ~$2k per year (amortized transaction cost of buying/selling, additional gas on 25kmiles/yr).
3) Rent the boat or Rent the Towing Vehicle: These scenarios have huge disadvantages in convenience (coordination each time, and the availability of the rental unit). Also, the break-even for owning vs. renting is around 8-10 boating days per year, including the towing vehicle, so this is probably not cost-effective.
So I'm leaning towards Scenario 2. Any suggestions on a $10-15k vehicle that can tow 3,000 lbs, economize on fuel, and get from 40mph to 70mph quickly (not towing)?
Yeh, but this summer I need the boat for 20 days. That's ~$6k in rental fees.
Alternately, the truck/SUV rental would be 25 days, which is not cheap either...and I still need to buy the boat.
You're probably right, but I think I'll find myself chincing on rental days because the expense comes from cash flow rather than capital outlay.
You live in Manchester, I'm in the Sunapee area. MHT has more commerce, so I would guess that you have access to any available options for renting a towing vehicle. I was thinking more in terms of "renting" the vehicle from any one of several friends...lots of buddies in the trades. But this isn't a solution for a 2 week trip.
I assume you've tried Home Depot...
I don't live in Manchester....Manchester is the largest city with the highest probability of renting the vehicle I need. They also have an airport with rental cars. Home Depot rents trucks..They don't have any trucks for a family of 5.
A friend does and has no regrets as buzzes around in a BMW 3 series coupe that is a joy to drive and has no hassles to deal with second vehicle and driving an abysmal SUV or truck about at high fuel prices to boot. I think more people will start doing this once they realize that those few real usages of a SUV do not out weight the fuel costs of driving around solo.
Obviously its a balance thing, but couple yourself with the right individual and you can move the boat pretty much on demand is what my friend found thru that service using it once.
If you don't drive much, or you have the space to park an extra, occasional use vehicle, and insurance on a parked car is not too bad in your area, now is a good time to pick up that monster SUV you always wished you had. Forget blue book. Blue book values are dropping as fast as the gas price rises.
With regard to towing a 6000 lb boat - people who can afford to own and use 6000 lb boats don't give a hoot about gasoline prices.
I would love to see a successor to the 245 Volvo wagon come back. Solid frame, heavy suspension. Tow anything on wheels (if it has trailer brakes), 7 passengers (if the last two are small) or a full-sized sofa on a flat load deck (try that in your Explorer). 29 mpg highway with 4 passengers and luggage aboard. We still have two of them in the family but they have over a quarter-million miles each on them, so they won't last forever.
I would love to see a successor to the 245 Volvo wagon come back. Solid frame, heavy suspension. Tow anything on wheels (if it has trailer brakes), 7 passengers (if the last two are small) or a full-sized sofa on a flat load deck (try that in your Explorer). 29 mpg highway with 4 passengers and luggage aboard. We still have two of them in the family but they have over a quarter-million miles each on them, so they won't last forever.
Why won't they last forever, what's wrong with them? Do they have terminal rust? Are the parts unavailable?
I'm currently replacing the engine in a '82 car with 438,000 miles; hopefully, it will outlive me (maybe not with this engine). There is no need to go out and buy a plastic car to replace your volvo, just keep using it.
In countries with high import duties, and no winter, they indeed last forever. I did a seminar at a local college in Malysia and was picked up at the airport by one of those boxy Volvos. This one had been refurbished and was pusing 750,000km (about 466,000 miles). The seat and floor mats had ben renewed, new paint job, but I was told the engine was original. There are local companies that spcialize in refurbishing old Volvos and Mercedeses from the 80s.
But how many posts do we get that ask "My transmission is shot/I need a new Catalytic converter/My brakes need replacing/my oil needs changed/etc. Should I buy a new car, or keep this rotten heap?"
That's the problem, (almost) everyone treats cars like disposable appliances and that's how many of them are made. I would rater work on that old volvo than just about anything currently made (at least you don't have to remove 4 layers of plastic covers before you can see the engine).
I would rater work on that old volvo than just about anything currently made (at least you don't have to remove 4 layers of plastic covers before you can see the engine).
I have to remove about 10 bolts for a plastic shield just to get to the air filter on my wifes Lexus. They all seem to be going that way.
06/10/2008 9:52:30 AM
