Car buying, and the money involved

[Michael_S]

Because I spend so much time in a car, I want something nice and fun. I think that's reasonable, I think that's the way most people view car ownership.

The base price for the Genesis is around $33,000. I make good money, but even so with my after-taxes income I would need to work more than 6 months to pay for a Genesis.

A nice car is a nice car, but I don't want to spend more than 1% of the remainder of my adult life working just for it. That's not a dig at the Genesis, just a dig at cars in general.

How do you justify the expense to yourself? Or are you just rich?

 

[GenFan]

I get what you're saying but what can you buy, that fits your needs, that won't be low to mid $30's?

I spend a lot of time in my car too. I am a fairly big person (6'2", big shoulders, and weigh 220), I can't get comfortable in cars like the Infiniti G35. I usually drive a F-150 Crew Cab. I'm in the process of looking for a car. My wife's Avalon is great for me but she won't give it up. I really like it but I just can't buy two of the same vehicle. This is where the Genesis looks appealing to me. I really like the size and performance (from what we know). I would buy a '04 Lexus LS but I think it is kinda dumpy when you park it next to a newer one. I want to wait until the current LS is a little older so I can pick one up at a decent price. I just don't think I can wait.

For me it will either be the Genesis or Infiniti M35 (2006 or 2007).

 

[Sal Collaziano]

Cars are becoming too expensive in general. I'm not liking it at all.. I have a good career and earn good money as well - but I just can't see spending so much on some of these vehicles. It just doesn't make sense...

 

[Michael_S]

GenFan,
I'm talking about driving my current car until it rots out from underneath me, and then (presuming reliability is reasonably) buying a Genesis with 100,000 miles on it and running it until it falls apart too, and basically never buying new, period.

A used Buick Park Avenue is bland to look at and boring to drive. But you can get one for maybe $6000 or $8000 and it's probably as spacious as a new Avalon or the Genesis. It's nowhere near as nice, but you can do an awful lot with the $20,000 difference!

 

[GenFan]

Michael_S,

I wish I had your willpower and maturity. I'm 35 and just realized a few years ago that buying new cars every two or three years is very stupid. I wish I had some of that cash back. I make more money than I probably should and can afford decent cars, but I'm leaning towards your way of thinking with a slight exception: I still have the uncontrollable urge for cool stuff. I'm really looking at the 06 Infiniti M35. I just wish the mileage was a little better.

 

[GrandPrix08]

I am the kind of person who keeps(or tries to keep) the cars for a long time. My first car, 1992 Pontiac Sunbird LE I had until 1999(7 years, with 1 major accident though the car still ran, despite the impact with the bus, the engine still ran like new) until I got the 99 Grand am which still runs that I gave it to my dad for I wanted to get the current car of mine, that I dreamed out for so long, and for I didn't want to miss it since GM killed it, but, I wouldn't call people who buys a new car every 2 or 3 years stupid. I mean, if you have the money, why not?, go for it. I love the new car smell as most people do. Even though for my current 08 Grand Prix, I am going to keep it forever. If it dies on me, I am going to restore it and keep it going, since it was the car that I wanted for such a long time, and I never want a used car, and I won't let it go.

Also, I agree about the car prices. It's skyrocketting year after year. I remember the mid 80's where Hyundai's(by then, they were crap I know) could have had for a mere $5,000 starting price, and in the 90's cars like Neon and stuffs didn't cost more than $9,000 to start off, but nowadays, a decent cars, even the tiny Toyota Yaris, or Kia Rio, you HAVE to go OVER $12,000 with some equipments in it. Car prices have been rising steadily, much like the gas prices have, and come 2010 or so, I don't think we will see that many cars under $12,000 that are halfway decent. It's crazy.

But, as I said, if you have extra money to spend every year, why not? go for it.

 

[Michael_S]

GenFan,

I'm not mature yet. The three vehicles my wife and I have purchased since I graduated from college were all new. I'm only contemplating maturity for future purchases.

I really liked the vehicles we bought, but inevitably I got sick of the vehicle before we finished the payments. Then you have to ask yourself if there isn't a better way to spend $400 per month. Maybe a used car, a lawn service, and a maid service would be better. Or better yet, a used car and a house closer to where we work, so I wouldn't have wasted over 2000 hours commuting in the past 7 years.

 

[GenFan]

GrandPrix08,

I probably made a bad choice in words. I certainly didn't intend to say that people who buy new cars every 2-3 years are stupid. Hell, I fall into that category and I certainly don't make it a habit of referring to myself as stupid.

I should have wrote that buying a new car every 2-3 years probably isn't the best financial decision one can make. I too like the greatness of a new car. Over the past few years I have really enjoyed buying vehicles with <10,000 miles and paying significantly less than I would have had I bought it brand stinking new!

I do agree, if you can afford it and don't really care about paying the premium for being the first, go for it!

As far as my relationship with the Genesis, I will probably wait a little while and see if I can find a loaded pre-owned one. If dealers start seriously discounting them I may lose total control and take the plunge! For this to happen I will have to be able to drive out, TT&L and all, for about $36K. Oh, and it will have to be fully loaded!

Have a great weekend!

 

[charliemike]

I agree with you about buying new. The only reason I'm considering a Genesis is that lease deal. Otherwise, I'd be looking at a 2006-07 MY car.

BMW, Audi, Honda all quote residuals at 61% after 24 months on their leases. Then it drops to about 50% in the 3rd year.

39% depreciation in the first two years is just a huge hit to the wallet to take for someone that isn't going to keep the car for a long time. I've learned that lesson (finally). I don't need new. Just new to me.

 

[Sal Collaziano]

Speaking of not being the "first" one to own a vehicle - here's a new BMW ad - which tries to make it obvious that it's not always so bad when you're not "the first"...

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