Buying American Cars What Does It Mean?

7263 messages, Last post on May 27, 2009 at 4:31 AM

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What is this discussion about? Car Buying

With parts coming from everywhere, does "Buying American" have much meaning anymore? Is quality and price the bottom line?

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#6494 of 7263 Re: I put my money on American [sidious6688] by cooterbfd Nov 04, 2008 (3:07 am)
Replying to: sidious6688 (Nov 04, 2008 2:44 am) "Factor in depreciation and the American cars sadly get killed. " Or do they??? When these studies show percentages of depreciation, it is vs. MSRP, and not actual selling price. So depreciation rates aren't as bad as you'd think. Now, if you want to debate why a Toyota sells for closer to MSRP than a Chevy, THAT'S a different story altogether. Replies to this message: circlew (Nov 04, 2008 4:05 am) captain2 (Nov 04, 2008 7:28 am) sidious6688 (Nov 05, 2008 2:57 am)
#6495 of 7263 Re: I put my money on American [cooterbfd] by circlew Nov 04, 2008 (4:05 am)
Replying to: cooterbfd (Nov 04, 2008 3:07 am) Depreciation and residual value either way you loose more buying American cars. Period. You can put your money on American. It's still a free country. Hope their cars improve, though. Regards, OW
#6496 of 7263 Re: I put my money on American [cooterbfd] by captain2 Nov 04, 2008 (7:28 am)
Replying to: cooterbfd (Nov 04, 2008 3:07 am) yes and no - because resale value percentages vs. actual price or real street price mean absolutely nothing - it has always been about the total dollars it costs to own anything over a defineable period of time - meaning how much you actually pay for something vs. how much you can sell it for later - in gross dollars. What percentage that resale value might be of MSRP or anything else is unimportant - obviously what IS important, the total dollars lost. The BMW is a car that maintains one of the better resale values in the industry in terms of %residual value - but are also quite expensive to own because the gross dollars of depreciation is quite high. Those 2 sedan favorites, the Accord and the Camry both sell for competitively higher initial prices, have good resale values (much like the BMW) but both usually lead the pack when it comes to true operating expense - the gross dollars lost is less primarily because the the initial price is less. 'American' cars tend to sell new at a lower price than their 'Japanese' counterparts so therefore they must also have a lower resale value - and vice versa. The truth of the matter is that over the shorter term (up to about 5 years) and/or on leases the 'Japanese' cars can very easily be less expensive to own than the cheaper 'American' car. If you subscribe to the the contention that there is no real long term reliability differences in most cars these days and are willing to drive that car for a long time then the equation will swing very decidedly into the favor of anything that costs less to buy up front - be it American or Korean (or whatever). Statistics, though, tell us that the average car BUYER is keeping a car 4-5 years and overall 'ownership' periods are even less than that when you also consider the 2 to 4 year terms of leases these days. Replies to this message: sidious6688 (Nov 05, 2008 2:57 am)
#6497 of 7263 Invest the difference... by parkman50 Nov 04, 2008 (11:18 am)
It amazes me how many people miss the point. When considering Japanese vs. American, consider these two rules I live by. #1. Don't finance cars!! (pay a note to yourself until you can pay cash.) #2. If you and I can buy two similar cars, but I can pay 5 grand less up front, I will always pick the lower cost car. Take the 5 grand and invest it to appreciate, not depreciate. So now someone please tell me how you paying more for a car up front is a better deal than me paying less and investing the difference in something that grows. Even something with low growth like a savings account is better than a depreciating car. I don't care if it's American, Japanese, Korean, or Mexican made. It's your money, spend it how you want. But saying you're making the smart choice by buying Japanese due to resale value or reliability is not reality. It's one way of justifying your purchase decision. Reality is that all cars are VERY BAD investments. The more you invest in one, the less cash you have to put into a "good" investment. Tada. It's quite simple. Replies to this message: circlew (Nov 04, 2008 1:50 pm) captain2 (Nov 05, 2008 9:51 am) 62vetteefp (Nov 05, 2008 10:27 am) anythngbutgm (Nov 05, 2008 11:27 am) captain2 (Nov 05, 2008 12:05 pm) and 12 more...
#6498 of 7263 Re: Invest the difference... [parkman50] by circlew Nov 04, 2008 (1:50 pm)
Replying to: parkman50 (Nov 04, 2008 11:18 am) Agreed, and since all cars are bad INVESTMENTS, getting one that is second rate hurts all the more. I won't even start with the cost of gas comparison which leads to even more pain if you choose unwisely. 1. Bad Investment 2. Car is unreliable 3. Car costs more to run over time. Choose wisely, grasshopper. Regards, OW
#6499 of 7263 Re: I put my money on American [captain2] by sidious6688 Nov 05, 2008 (2:57 am)
Replying to: captain2 (Nov 04, 2008 7:28 am) I could not have said it better.
#6500 of 7263 Re: Invest the difference... [parkman50] by captain2 Nov 05, 2008 (9:51 am)
Replying to: parkman50 (Nov 04, 2008 11:18 am) investing price differences certainly more fiscally responsible despite the fact that 'investing' has proven to be a great way to loose money lately just like that depreciating automobile. Very, very few of us have any sort of capability to pay cash for a car - so therefore this is all a somewhat unrealistic contention. But as far as cheaper being better I think you need to look over CRs reliability ratings in this Dec issue - they rate 47 cars as being 'most reliable' (based on their surveys, of course) and 40 of them are 'Japanese' primarily Hondas and Toyotas. The only American iron that even makes the list are the FoMoCo Fusion triplets made in Mexico. You can choose not to believe any of this, and then go out and buy the cheapest piece of Americana you can find - betting, of course, that the thing will run long enough for you to recover some of that investment you talk about before you have to spend it on repairs This is what 'buying an American car' really means, even discounting the fact that fewer and fewer of them are made in this country anymore anyway.. Replies to this message: 62vetteefp (Nov 05, 2008 10:27 am) anythngbutgm (Nov 05, 2008 11:27 am) captain2 (Nov 05, 2008 12:05 pm) circlew (Nov 05, 2008 12:32 pm) and 10 more... 62vetteefp (Nov 06, 2008 4:21 am)
#6501 of 7263 Re: Invest the difference... [captain2] by 62vetteefp Nov 05, 2008 (10:27 am)
Replying to: captain2 (Nov 05, 2008 9:51 am) "This is what 'buying an American car' really means, even discounting the fact that fewer and fewer of them are made in this country anymore anyway.. " Do you really believe this? Most all big 3 are still built in the USA with a few in Canada and Mexico. Hardly any are imported anymore (Aveo at GM soon to be built here and G8 also to be built in Canada with next version). Replies to this message: anythngbutgm (Nov 05, 2008 11:27 am) captain2 (Nov 05, 2008 12:05 pm) circlew (Nov 05, 2008 12:32 pm) captain2 (Nov 05, 2008 2:22 pm) and 9 more... 62vetteefp (Nov 06, 2008 4:21 am)
#6502 of 7263 Investment? by lemko Nov 05, 2008 (10:42 am)
Well, my "investments" are doing pretty well. My 1988 Buick Park Avenue is 21 years-old and my 1989 Cadillac Brougham is 20 years-old. My 2007 Cadillac DTS Performance and her 2005 Buick LaCrosse are also doing well. Sheesh! A car is never an investment. It's just another thing you buy. Replies to this message: cooterbfd (Nov 05, 2008 1:53 pm) m1miata (Nov 07, 2008 10:57 am) andre1969 (Nov 07, 2008 11:19 am) lemko (Nov 07, 2008 1:28 pm) and 3 more...
#6503 of 7263 Re: Invest the difference... [62vetteefp] by anythngbutgm Nov 05, 2008 (11:27 am)
Replying to: 62vetteefp (Nov 05, 2008 10:27 am) Some people don't consider Canada or Mexico American. The money on a car built in either of these places doesn't help out the US economy any more than a vehicle built in Japan or Germany.