Our cars are devalued significantly.

[Jerrytball]

Well, there you go. You are one of the lucky few people who don't appear to have taxable income. Congrats.

And yeah, the only reason I have a bill is because I went for that 0%. I usually don’t have bills. I don’t usually carry credit card debts or mortgage so got nothing to deduct lol maximize my blue collar career so when I am at 70 like I am now, I don’t have to sweat it, but for some reason, everybody in the family thinks I am the local bank ?

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[Dear_OP]

"Our cars are devalued significantly."

Not a problem if you keep it long term ie. > 7 years.

 

[Dwood11]

Keep in mind that some dealerships will list cars lower than normal market value only to add nick nacks you don’t want/need.

A grand here for “paint” protection. A grand there for gps tracker. 500 here for door protectors. Blah, blah, blah.

I actually walked out of the dealership after looking at a used gmc at4 4x4 years ago. I’m not going to say why. But you can probably guess.

 

[Scooby24]

Only if you think of cars as a financial investment.

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

 

[Sikkun]

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

If you are going to view vehicles as a purchase you have to financially optimize you would never buy a new vehicle and drive it until it’s effectively worthless.

 

[zvez]

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

if you're really concerned about resale value, then why wholesale it to a dealer, carvana, etc. I'd think to maximize what you get for the car you'd retail, even tho it's a colossal pain in the ass. I know the cost of cars are high, but it's really a consumable no different than a computer, and everyone knows how value on electronics plummets.

 

[Shepherd]

Does anyone remember how much we all got for the car we replaced. I had a 8 year old Honda accord. Got almost 22k for it. Plus the 7500 rebate. Neither of those financial incentives are available today

and I am keeping this car at least 8 years!

I sold my 10-year-old 4Runner 4x4 Trail Edition Premium for more than half of what I paid new. To be fair four-wheel-drive trucks hold their value. I put that money into my interest-bearing money market and gladly took Ford’s 0% financing. I’m not worried about depreciation. It’s all theoretical and on paper until another black swan event happens like the pandemic, so you really don’t know what its value will be in the future

I tend to think the Mach-E GT Will be a desirable used EV in the future, as cars become indistinguishable, boring grocery getters. The Mach-E will stand out like the ‘60s muscle cars do for us now.

 

[Madtroniks]

Warren Buffett said: "Price is what you pay, value is what you get."

 

[Kamuelaflyer]

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

Cars are tools, nothing more. They’re not investments. You’ll be forever disappointed if you insist upon looking at them that way.

 

[DYohn]

"Our cars are devalued significantly."
Unlike every other production vehicle in the world.

 

[mkhuffman]

Cars are tools, nothing more. They’re not investments. You’ll be forever disappointed if you insist upon looking at them that way.

My MME is a toy!

 

[Mach1E]

How can you not? Resale is a consideration most people have when it comes to making a decision about a vehicle. If you've got more money than common sense I suppose it doesn't matter. Otherwise it's foolish not to be concerned with resale.

It’s amazing how so many people get philosophical with a “who cares?” Attitude when it comes to resale values and the cost of ownership of a car.

Car dealers must LOVE these kinda shoppers as they can take them to the cleaners every time.

But whether or not people think it matters….. it matters.

Cost of ownership is a straightforward formula-

Purchase price + financing costs + insurance + maintenance + fuel - resale value= cost of ownership.

Now people can pretend those things don’t matter, but they all affect your bank account. Unfortunately it’s only the resale value that you don’t know about until later. Most of the other stuff you can figure out during the time of purchase.

 

[DYohn]

It’s amazing how so many people get philosophical with a “who cares?” Attitude when it comes to resale values and the cost of ownership of a car.

Car dealers must LOVE these kinda shoppers as they can take them to the cleaners every time.

But whether or not people think it matters….. it matters.

Cost of ownership is a straightforward formula-

Purchase price + financing costs + insurance + maintenance + fuel - resale value= cost of ownership.

Now people can pretend those things don’t matter, but they all affect your bank account. Unfortunately it’s only the resale value that you don’t know about until later. Most of the other stuff you can figure out during the time of purchase.

And, if you do the math and don’t like the number, don’t buy the car.

to me it does not matter. When I trade in an old for a new car I’m always happy if the trade value covers tax and registration.

 

[Jerrytball]

Cars are tools, nothing more. They’re not investments. You’ll be forever disappointed if you insist upon looking at them that way.

Never looked at a car as an investment, but what I do expect, or more hope is if I pay 60,000 for a car I can get at least half back after two years on a trade in. Now I can say I was very satisfied after I’m on a 2019 ICEGT Mustang from Carvana for 38,006 months later I took it to the Nissan dealer because I wasn’t driving it and the wife was complaining. It was just taking up driveway. It was paid off so there was no bill except for Insurance and tags. Nissan without me buying another vehicle from them just gave me 35 for it, which I thought was pretty good. It had 16,000 miles on it.

 

[mkhuffman]

It’s amazing how so many people get philosophical with a “who cares?” Attitude when it comes to resale values and the cost of ownership of a car.

Car dealers must LOVE these kinda shoppers as they can take them to the cleaners every time.

But whether or not people think it matters….. it matters.

Cost of ownership is a straightforward formula-

Purchase price + financing costs + insurance + maintenance + fuel - resale value= cost of ownership.

Now people can pretend those things don’t matter, but they all affect your bank account. Unfortunately it’s only the resale value that you don’t know about until later. Most of the other stuff you can figure out during the time of purchase.

I agree it does matter, but a car depreciates. Always. Well, I guess there are rare exceptions. Regardless, a new car depreciates the day it is driven off the lot. So if that is a problem, don't buy new cars. If you do, then expect it.

Also, back when I got my car, used cars were selling for more than what people paid for them new just a couple years before. There were shortages of everything, including cars. To expect my 2021 GT that I purchased for $62k to remain scarce would have been illogical.

What has happened to its value is totally predictable. Does it make me feel warm and fuzzy inside? No, but I understand how it works, and I am not complaining. My car was worth it to me then, and it is still worth it to me.

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