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Your Thoughts Regarding The New 54.5 MPG Mandate

158 messages,  Last post on Nov 05, 2012 at 2:02 PM

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What is this discussion about? Legislation

Messages Page 8 of 17

#65 of 158 Re: Mpg [nippononly] by selrationality

Sep 09, 2012 (1:13 am)

Replying to: nippononly (Sep 08, 2012 11:59 pm)
They certainly don't want that...
 
Every now and again I do wonder where auto OEMs would be without the "keeping up with the Joneses" mentality that makes so many people trade in their cars for new models after 3 years.
 
My father tried to justify it to me a couple of years back by arguing that 3 years after purchase was when you got the best price for your old car. I don't know whether that's true or not, but it did prompt me to sit down and do a fully costed spreadsheet model of car ownership including insurance, depreciation, deteriorating fuel efficiency, rising servicing costs etc over a 10-year lifetime.
 
My conclusion was that despite rising maintenance costs, by far the cheapest thing to do is to buy a car and run it into the ground. I can understand somebody wanting to exchange old for new because of advances in safety or functionality (the desire to be able to plug in a portable music player or smartphone comes to mind) but from a cost of ownership perspective, buying a new car every few years is massively expensive. If you want to save money, keep your car!
 
As you say, not what car companies want.
 
SelectiveRationality

#66 of 158 Nice Guide by luckyou18

Sep 09, 2012 (4:24 am)

Thanks for posting

#67 of 158 Re: Mpg [selrationality] by andre1969

Sep 09, 2012 (5:46 am)

Replying to: selrationality (Sep 09, 2012 1:13 am)
My father tried to justify it to me a couple of years back by arguing that 3 years after purchase was when you got the best price for your old car.
 
I think there might be a few things that happen at the three year mark that might, somewhat, back that up. Usually a car takes the biggest depreciation hit in the first year or two. So, at year three, that usually starts to level off, although it doesn't stop. And, nowadays, I think the three year mark might finally be at the point where you have some positive equity in the car, if you're financing it for five years.
 
But yeah, I'm convinced that driving it till it drops, and then replacing it with a newer, 1-2 year old car, is probably the best way to go. Maybe less so with some of the top-tier imports that don't depreciate as much.

#68 of 158 Re: Mpg [andre1969] by fezo

Sep 09, 2012 (8:30 am)

Replying to: andre1969 (Sep 09, 2012 5:46 am)
But yeah, I'm convinced that driving it till it drops, and then replacing it with a newer, 1-2 year old car, is probably the best way to go.
 
Exactly correct. My brother and I were having this conversation the other day. We're both convinced we'll never buy a new car again.

#69 of 158 Re: Mpg [fezo] by fintail

Sep 09, 2012 (8:54 am)

Replying to: fezo (Sep 09, 2012 8:30 am)
I've never bought one and probably never will, unless I come into serious money, or find some insanely subsidized lease special on a car I want.
 
My sister on the other hand, who just had to buy a new higher mpg car, wouldn't even think of buying used. I told her to look around when she recently bought a Sonic, she was less than receptive.

#70 of 158 Re: Mpg [fintail] by andre1969

Sep 09, 2012 (9:02 am)

Replying to: fintail (Sep 09, 2012 8:54 am)
I've never bought one and probably never will, unless I come into serious money, or find some insanely subsidized lease special on a car I want.
 
The only brand-new car I ever bought was my 2000 Intrepid, and part of the appeal there was the low 0.9% financing for 5 years. At the time, most used car rates were around 6.75-7%, or more.
 
However, even there I probably would've been better off used. I remember going back to the dealer a few months later, for something-or-other, and seeing some used '99 Intrepids with maybe 25-30,000 miles on them, priced around $13-14K. In contrast, mine had an MSRP of $20,390 plus $560 freight. I ended up getting it for about $19K, but by the time you threw on the freight, tax, tags, an extended warranty that I never needed except for the peace of mind, and the total was up to $22,389 out the door.

#71 of 158 Re: Mpg [selrationality] by lemko

Sep 09, 2012 (9:32 am)

Replying to: selrationality (Sep 09, 2012 1:13 am)
Heck, if I really wanted to, I could've keep my 1968 Buick Special Deluxe wagon until it either succumbed to rust or metal fatigue. Those two events are fatal to any car. There's also a good chance an accident would've taken it out the longer I kept it.

#72 of 158 Re: Mpg [andre1969] by lemko

Sep 09, 2012 (9:35 am)

Replying to: andre1969 (Sep 09, 2012 5:46 am)
I won't trade a car until it is paid off. I took the loan out on my 2007 Cadillac DTS for five years but paid it off in three. So far, the DTS looks like it's going to be with me for the long haul. Heck, it might even be around as long as the Brougham.

#73 of 158 Re: Mpg [fezo] by stickguy

Sep 09, 2012 (9:35 am)

Replying to: fezo (Sep 09, 2012 8:30 am)
tell my wife.
 
it helps to buy used when what you want has been around But, when the "one" is a newly released model, you don't have much of a choice!
 
my wife also just does not like or feel comfortable buying a used car for herself. Which is fine. We do ten to keep her (aka the family) car for a long time. the van is going on 8 years, and I expect to keep the RDX longer than that.
 
But, if you shop carefully and buy something that does not have stellar initial resale, you can do well with gently used.
 
Now, keeping until it is run into the ground? That is a different story. Some people have a much lower tolerance for cars breaking down on them, or dealing with repairs and down time. So there has to be a cut off point when a car goes from everyday, to spare.
 
we tend to take my wife's car on most trips, and they are often in the boonies at night. No chance I am doing that in something I am nursing along, waiting for the next shoe to drop!
 
different story if it is my care that is pretty much local short hops.
 
so for the primary and travel wheels, something around 10 years/100-120K is likely to be as far as she will be comfortable with.
 
at that point though, keeping it for 2nd car duty is entirely possible.

#74 of 158 Re: Mpg [lemko] by stickguy

Sep 09, 2012 (9:36 am)

Replying to: lemko (Sep 09, 2012 9:35 am)
let me guess. the 2007 has maybe 30K on it? 40 tops?

Messages Page 8 of 17

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