Resale Value - Does It Matter?
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Date: 2020-02-01
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Comments and reviews: 9
David
Your calculations about leasing when one keeps the car three years don't work for people who pay cash. I can put 50k in car, pay 0 a month for three years, allowing me to invest 800 a month (the coast of leasing the same car, then sell the car for X. X - the interest made on that 800 a month that ended up being 29k determines the actual cost per month. And I now have the residual value, plus 29k plus interest to buy yet another car after three years. The car cost me virtually nothing. Rich people never use credit. A rich man told me that.
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Your calculations about leasing when one keeps the car three years don't work for people who pay cash. I can put 50k in car, pay 0 a month for three years, allowing me to invest 800 a month (the coast of leasing the same car, then sell the car for X. X - the interest made on that 800 a month that ended up being 29k determines the actual cost per month. And I now have the residual value, plus 29k plus interest to buy yet another car after three years. The car cost me virtually nothing. Rich people never use credit. A rich man told me that.
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Juan
I don't really care for resale. It's nice to have, but I usually buy a new car, pay it off in five years, hold onto it for 3 more years, and then I decide either keep it as a commuter while adding a second car or trade it in for the down payment on the new a new one. But like Alex says, I keep it for a long time where the value basically vaporizes. I do take care of it, but not so much to retain its value but rather because I want it to stay reliable and quite honestly I enjoy keeping it running and looking like new.
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I don't really care for resale. It's nice to have, but I usually buy a new car, pay it off in five years, hold onto it for 3 more years, and then I decide either keep it as a commuter while adding a second car or trade it in for the down payment on the new a new one. But like Alex says, I keep it for a long time where the value basically vaporizes. I do take care of it, but not so much to retain its value but rather because I want it to stay reliable and quite honestly I enjoy keeping it running and looking like new.
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Ivan
You never turn in a lease, you sell a lease to a dealer (Carmac, Carvanna, etc. If you have positive equity and end up with a check for the difference you divide the check by the number of payments you made will be your actual cost per month of the lease. Of course you NEVER put money down on a lease BUT paying down MSD's generally always saves you money. Hybrids, be careful, get the VIN and get an insurance quote. If the gas model is 1200 a year but the Hybrid is nearly 2K a year their goes your gas savings.
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You never turn in a lease, you sell a lease to a dealer (Carmac, Carvanna, etc. If you have positive equity and end up with a check for the difference you divide the check by the number of payments you made will be your actual cost per month of the lease. Of course you NEVER put money down on a lease BUT paying down MSD's generally always saves you money. Hybrids, be careful, get the VIN and get an insurance quote. If the gas model is 1200 a year but the Hybrid is nearly 2K a year their goes your gas savings.
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garry
I was amazed at how many of my friends were buying all of these expensive (and unreliable) luxury cars. Then most of them admitted that they (or their company) were leasing them. THat explained why they were driving around in expensive junk, when I knew they wouldn't have otherwise spent their money foolishly. Ive been buying a Honda/Toyota and been keep them for 9-10 years (about 100k mi) and have been happy with this arrangement. I suppose if I could write off the lease payments id do the same.
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I was amazed at how many of my friends were buying all of these expensive (and unreliable) luxury cars. Then most of them admitted that they (or their company) were leasing them. THat explained why they were driving around in expensive junk, when I knew they wouldn't have otherwise spent their money foolishly. Ive been buying a Honda/Toyota and been keep them for 9-10 years (about 100k mi) and have been happy with this arrangement. I suppose if I could write off the lease payments id do the same.
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teetee
Of course resell value matters. I treat it with the same priority as the long term reliability as the two main factors for car purchase decision. My first car was a 4000 Accord, drove it for 13yrs before donating it to NPR. My second car is a minivan for 6000 and my. Planning to drive until it's repair cost exceeds it's worth. Both cars have had their depreciation done so I save money that others paid for it. I always get the vehicle with low resell value with cash to save money.
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Of course resell value matters. I treat it with the same priority as the long term reliability as the two main factors for car purchase decision. My first car was a 4000 Accord, drove it for 13yrs before donating it to NPR. My second car is a minivan for 6000 and my. Planning to drive until it's repair cost exceeds it's worth. Both cars have had their depreciation done so I save money that others paid for it. I always get the vehicle with low resell value with cash to save money.
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Simon
I have a 2015 Ram 1500 and it's been great so far. I'm planning on keeping it, but I do wonder how long modern vehicles will last. I had a 96 Chrysler mini van that I got used, and by 2006 some parts were unavailable because it was 10 years old. At least with the Ram they've sold a bunch, so that should be less of an issue. When I bought my truck, resale wasn't on my radar as I intend to keep it. Comfort, capacity etc was what I looked at. And price of coarse.
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I have a 2015 Ram 1500 and it's been great so far. I'm planning on keeping it, but I do wonder how long modern vehicles will last. I had a 96 Chrysler mini van that I got used, and by 2006 some parts were unavailable because it was 10 years old. At least with the Ram they've sold a bunch, so that should be less of an issue. When I bought my truck, resale wasn't on my radar as I intend to keep it. Comfort, capacity etc was what I looked at. And price of coarse.
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GordonGEICO
I don't really care about resale value - at least not enough to change my mind on an otherwise perfect car. I tend to buy new every 2-4 years, so I wind up getting burned by early depreciation pretty hard. I'd rather have the car I want, with the features I want, than to have bought something else that may (or may not) have, at best, marginally better resale a few years from now. If a car does have good resale, I consider it a bonus.
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I don't really care about resale value - at least not enough to change my mind on an otherwise perfect car. I tend to buy new every 2-4 years, so I wind up getting burned by early depreciation pretty hard. I'd rather have the car I want, with the features I want, than to have bought something else that may (or may not) have, at best, marginally better resale a few years from now. If a car does have good resale, I consider it a bonus.
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Wenyang
The most economic way to own a car is of course buying one and keeping it for 15 years. Then the most important factor is long term reliability and repair costs. Generally cars with higher resale value tends to be more reliable in long term, that's simply the main reason driving up the demand on used market. So here comes the resale value, it is basically a buyers' vote on least longer term ownership cost.
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The most economic way to own a car is of course buying one and keeping it for 15 years. Then the most important factor is long term reliability and repair costs. Generally cars with higher resale value tends to be more reliable in long term, that's simply the main reason driving up the demand on used market. So here comes the resale value, it is basically a buyers' vote on least longer term ownership cost.
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Steve
Good stuff, AlexMy concerns include safety and reliability. thats my baseline. Then I consider features I want or need in a car. Weve kept our cars well over a decade and were fortunate they happened to have high resale values in large part because we didnt even put 100k miles on the cars. Now that safety technology is rapidly changing for the better, well probably keep our cars fewer years than in the past.
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Good stuff, AlexMy concerns include safety and reliability. thats my baseline. Then I consider features I want or need in a car. Weve kept our cars well over a decade and were fortunate they happened to have high resale values in large part because we didnt even put 100k miles on the cars. Now that safety technology is rapidly changing for the better, well probably keep our cars fewer years than in the past.
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