Cars: Keep or Renew?

[AndyP]

I'd like to hear peoples thoughts on whether you should buy a new car every few years to avoid depreciation, etc OR just keep driving the older car into the ground or until you actually need another car.

I hadn't really thought about it until the missus brought it up yesterday. The Mazda6 is now 3.5 years old, so I'm going to look into what the smarter option could be.

What have you done and what do you think?

[mikezone13]

Renew every 2-3 years. Take out a CHP (commercial hire purchase agreement) with a 40%-50% residual, do some research and buy a car with a historically high resale value (Honda Accord Euro, Mazda 3 or 6, BMW 3 series, Mini Cooper, Subaru Liberty etc.).

Then every 2-3 years trade your vehicle in and if done correctly your trade-in will cover all of the residual owing plus an extra amount to either upgrade to a higher model (with similar monthly payments) or to lower the residual/monthly payment on a new model of the same type vehicle.

It's advisable if you go this way to stay within the same brand (if not the same dealer) as the trade-in values you get will typically be much better.

If you have the time you can always privately sell your 'old' vehicle to maximise the amount you receive after 2-3 years when looking for the new vehicle.

[Fishman Dan]

We drove our '94 model Corolla just about into the ground with numerous trips to Casino. It's now done over 210k km's and in the hands of my sister in law, and still perfectly viable.

It's hard to think it's 13 years old. We have the same intention for the X-Trail, touch wood.

[BrisVegas]

I think if you decide to go the renew option, you should do it inside 3 years while the car is still under warranty and more attractive to sell or trade. Especially if you're relying on one car for a family.

We're currently running our 95 Nova into the ground. With 300,000kms on the clock it's worthless to sell or trade, so we just keep patching it up with parts and do regular oild changes etc... It's our backup car now, so it's not the end of the world if it breaks down.

Our current "good" car, the focus, will become our old car when it's off-lease and we'll get something new again. The Nova should have passed from the earth by then. I plan to keep the Focus as my runabout and we'll just run it into the ground like weve done with the Nova.

We'll probably continue to do 3-year leases so we always have a good new car that's reliable and under warranty while we can afford to.

[AndyP]

Maybe it's only something that works for leases and CHPs, because from what I can see you would be losing money buying new every few years.

Buying a 2 year old car, after having a five year old car, seems to make more sense.
http://www.abc.net.au/brisbane/stories/s1939815.htm

[PeteyD]

You will still lose money as the cars depreciate, you can't avoid that. All depends on what your budget can afford and what you want to do. I prefer to pay cash for older cars and run them into the ground, but each to their own.

[BrisVegas]

well, there you go. better keep the old Mazda then.

[Jarro]

Cars are like clubs,never get too attached to them

[Moe Norman]

all depends on whether you are leasing our buying outright

[mikezone13]

Different car finance options (outright purchase/lease/CHP etc and new/second hand) suit different financial situations.

Each to their own, however as a financial guide I ahve been told many times that from an affordability perspectvie you should take your gross salary and divide it by 2 and that is typically the price you can 'afford' to pay on a vehicle using finance options.

[oz]

I love / hate cars. I enjoy little mroe than the thought of driving off the lot in a new car, but I know how much $$ I have lost in the past through big $$ depreciation.

I have a 7 year old V6 Frontera now that I want to move on (don't need 4WD anymore, and could do without the big fuel bills), but I am lost about what to go with. I will probably sell it privately, and look to re-negotiate a deal with work for vehicle conditions.

[goughy]

Different car finance options (outright purchase/lease/CHP etc and new/second hand) suit different financial situations.

Each to their own, however as a financial guide I ahve been told many times that from an affordability perspectvie you should take your gross salary and divide it by 2 and that is typically the price you can 'afford' to pay on a vehicle using finance options.

When you say this, do you mean one salary or both partners salaries? When our car goes to the grave we'll be looking at leases etc, wack some advertising on the car and claim it as a tax deduction. But based on what you said, if we looked at one income it'd be hyundi accent here we come

[Grunt]

When you say this, do you mean one salary or both partners salaries? When our car goes to the grave we'll be looking at leases etc, wack some advertising on the car and claim it as a tax deduction. But based on what you said, if we looked at one income it'd be hyundi accent here we come

You get that good a car Goughy, If it were the case for me I would be getting a 2 yo one.

[BrisVegas]

huh, that's odd. based on mike's logic I could afford an M-sport BMW.

[BrisVegas]

oh wait... you mean outright purchase! not the lease payment.

[mikezone13]

When you say this, do you mean one salary or both partners salaries? When our car goes to the grave we'll be looking at leases etc, wack some advertising on the car and claim it as a tax deduction. But based on what you said, if we looked at one income it'd be hyundi accent here we come

Both incomes if a couple, single income if a single It's really just a "what can I afford question"

oh wait... you mean outright purchase! not the lease payment.

Indeed... well spotted

[goughy]

Both incomes if a couple, single income if a single It's really just a "what can I afford question"

Phew. That sonatta is looking more and more likely!!!

[990B Luva]

Personally, i think it isnt a matter of upgrading every 3 or 5 years, but when the cost of owning a particular car gets too expensive. a perfect example would be me and my XR6, currently, it costs me about $90-100 a week in fuel, plus the loan payment, rego and insurance. all up, my car costs me $200 a week, before factoring in maintenance costs, but with me being a typical young male, i really dont give a f#$k...

[AndyP]

For me, it was without a doubt keep and re-assess in a couple of years. Getting a new car would just cost too much.

[terryand]

Seriously thinking of getting this




Its a demo, but my Dad says it had done only 66km when he saw it yesterday.It a Ford Ranger XL that has been tricked up close to XLT spec and with a set of 20" mags and rubber on it.

Would prefer to get the XLT, but if the price is right( which I assume it will be being a demo and the fact that my Dad has dealt with the guy for the last 300 odd years) and there aren't too many things missing from this one that the XLT has I might be tempted.

Terry.

[goughy]

Those wheels just don't look right on a 4x4. Especially in your parts. Everytime I see a 4x4 in town with those I kind of think, 'what's the point'. Wot's the room in the back like?

[terryand]

In the back of the cab or the tray.

I know what you mean about the wheels but if the price is right I can live with them. I might grab the wheels that came off it for our treks into the wilderness, if there still around and again if the price is right.

Terry.

[goughy]

back of the cab. They can be a bit tight sometimes can't they? I haven't even heard of the ford ranger yet? must be pretty new. And it was just treking around that I was thinking of with those wheels.

[Fishman Dan]

Impressive truck there T-Rex.

I'm with Goughy though - those wheels don't really fit the bill. There's a ton more clearance there, why not get some big truck-off cross country tyres on it?

[BrisVegas]

I think, if anything, a Ranger with 20's in a mining town is quite acceptible, maybe even a touch modest. What it needs is a hydraulic suspension setup so you can drop it on it's guts when you're toodling around town, but still jack it up for when you want to hit the dirt.

Those wheels look pretty good. As I got home last night, a Hummer followed me into Brookwater (looked like a Mack truck in my rearview mirrors). When I caught a glimpse of it side on it had the tiniest little chrome mags I've seen on a truck that big. I doubt they'd have been 17's. Bigger is definitely better! A guy I know runs 20's on his Focus.

goughy - Ranger's have been around for yonks in the states.