The problem with used cars is, you do not know how the previous owner drove the car, whether or not he or she was gentle with it or drove it really hard and you also do not know how well it was maintained, such as changing the oil on time and how much wear the engine could have due to long oil changing periods, etc. it is a real gamble buying a used car, so many people are lazy with car maintenance.
All true- and I agree. However- you can 100% quantify that you will eat a large amount of depreciation buying any new car. It is very realistic that if you buy a new car today for $50,000 USD that the value in 2-3 years of which you could sell that for would be anywhere from 25k to maybe 32 or 33k. So it is absolutely guaranteed that you will lose a large amount of equity on a new car purchase. While there may be some risk in buying used cars due to the seller having more information on the car- I would still argue that the majority of people would be better off buying a quality used car from a financial perspective.
I must be thinking of the metro. Wasn’t the metro the little 3 cylinder? That’s the only one I’ve seen in the wild….the metro and maybe a few prizms I think…
on the other hand, life is too short. I have a car payment, it's about 700. yes, that is an expensive car payment, but I like my car, and I wouldn't like going back to a car with far less features.
It’s all just relative. In my opinion- I would never finance a car- because it is a depreciating asset. It doesn’t make sense to finance a depreciating asset and have an onerous monthly payment on a vehicle that is losing value every day. I also think there are so many good options on used cars or slightly used cars (cars that are only maybe 2-5 years old) that you can get for much less than buying new or buying from a dealer. That is just my opinion of course- if you really value having a certain type of car and it is very important to you then obviously that is an individual choice. But it is not a good financial decision and that is very black and white. Anyone that buys a new car will lose a significant amount of equity in the vehicle because all cars depreciate- and the newer ones depreciate more. I do agree with you that life is short and you should do the things you want to do- however I would say there are far too many people who have similar monthly car payments to you- and they are not car people- they just want basic transportation yet somehow they ended up with a car payment that is close to $1000 a month….which can be crippling for many consumers without a really great income.
@@JoshPiper I think financing is smart if you have a low APR. I bought a Tesla Model Y at 0.99% APR, it makes no sense to pay in cash at such a low APR, I think anywhere under 3% APR, it's worth financing.
Yeah- if you can play the government game long enough the benefits can be very good. You probably could make more money in the private sector- but government job security is much higher and the benefits are usually much better than most non-government jobs.
You can't just get a government job at least in most of the places I've lived--you need to know/be related to someone. Those are patronage jobs especially in Illinois. The jobs are only even publicly posted because they are legally required to and usually the job description is so detailed that they have already selected their candidate.
Yep- just like with most jobs - it’s truly more about who you know than what you know. Unless you have some highly technical skill that is in high demand- most decisions will tilt towards giving the job to someone who is already known or referred by a current employee.
If you're a white man and need to make decent money forget it because they discriminate like mad and promote DEI. If you've paid off your house it might be an idea to get a government job because of the benefits later down the line but honestly you're better off grinding in the private sector when you're young.
Yeah that’s a good analysis. I think just in general it can be difficult to get a decent job if you don’t have human connections. All things being equal- if someone at a company has a friend or refers someone they are much more likely to give that job to that person over you. I myself have applied to hundreds if not thousands of jobs in the past- and it is rare to hear anything back- however when you have a connection that goes a long way. It’s preferential treatment- but that’s just how the world works…..for many jobs it’s not what you know but rather who you know. I mean even if you check all the boxes and have a college degree and everything looks good on paper- that really isn’t enough anymore….employers or the HR department would rather give the job to someone on the inside or someone who has a recommendation from a current employee.
While I do agree with your argument, people also like to buy the shinny new latest thing. Most people like to keep up with the Jonses (or however you spell that) so they will always prefer the bigger car with all the upgrades than the basic car.
Historically I think you are right. But keeping up with the Jones’s is only relevant if you actually have a family and a house. The Jones’s are a family likely who own a house and have a few kids. There is no point to keep up with the Jones’s if you are single or if you aren’t a homeowner. It does make sense that people will have to spend more on a newer, larger modern car if they have a family….but if you are single or even if you have a significant other and maybe only 1 kid….you probably don’t need the big 50k plus SUV. Back when families were commonly 3-5 kids or even more- the parents really needed a big car for utility….but nowadays it doesn’t make a whole lot of sense….especially because the costs have gotten out of control.
@@JoshPiper I agree with that, but given the choice people will destroy themselves financially just to drive the ultimate thing and companies know this. The amount of people with negative equity is pretty high because of this.
Yes you are right. People fail to properly understand depreciation and they end up eating thousands if not tens of thousands of dollars on their new vehicles they buy at a dealership. But many people don’t even really consider the total purchase price of the car- they are only concerned with the monthly payment lol. It’s just a very flawed way of thinking financially and obviously it leads to a lot of negative equity for these consumers. I seriously will never buy a new car because you absolutely will be forced to eat the depreciation. There are so many good used or very slightly used options out there in which you can buy the car from a private party and save potentially up to half of what the car would have cost new. That to me is the much better option- let the rich people buy new cars and then when they want to sell it or upgrade you can get more value by buying a car that has depreciated a lot.
I know how to drive a stick, but sticks are, or becoming impractical. Safer because it allows fewer distractions to take place. Still it's impractical. Especially in a luxury car. Also if people stop buying new cars...where are we going to get a used car?
People will still buy new cars. But you shouldn’t buy a new car unless you are wealthy. Let the wealthy person who can afford the new car take the brunt of the depreciation. That’s only my opinion of course.
I have a state job working in IT. Guaranteed a pension, healthcare for life, and a decent salary. You'll always make more working in the private sector vs. govt, unless you're a manager or director level and above, for the most part. But the long term benefits are great. It really depends on what your long term goals are and the type of security you'd like to have.
Would you keep a car that you leased and is now three years old with twelve thousand miles on it for sixteen thousand dollars ? I have twelve thousand dollars in it now.
Depends on what the car is and what the market value of the car is currently. I personally would have never leased a car so I’m probably not the best person to ask. If the current value of the car is less than 16k then I would probably not keep it. But it does have low miles and if you plan on keeping it for 7-10 years then it could be a good decision. If you keep the car for a long period of time it will lower the total cost of ownership. When people buy new cars every couple of years they lose a lot of money through depreciation….so it would be my advice to avoid doing that.
I thought of that idea too, and almost got a gov job around 2019. I'm glad I didn't though, because I still would have lost it over the 💉 Also, they don't pay anything anymore... offered me $55k (in a big city), about half what I was making at the time... It was a joke. And, they massively discriminate against white males.
I have a government job- if you get in young right out of college they are a good deal. Not as cushy as they used to be- can't retire after 20 years, etc and they will get rid of you if you are problematic.
The private sector is the voluntary and the cooperative sector. The government sector is the thieving/criminal sector. There will be a reckoning when the productive people run for the hills and stop accepting fraud-based paper from the criminal crew. Nothing in this life is truly free.
I have a 2010 Mazda 3 5-speed manual, with 190,000 miles, bought it for $2,000. Needed front tires and some suspension work and tune up but is newer and comfortable.
They shouldn't allow car notes & loans on vehicles. It's just like with the mortgage scam... it pushed prices up to totally unreasonable prices. But, it's all about to collapse and cars/houses will be dropping hard soon, when there's not a buyer in sight at any price. Price drops on houses are at all-time-highs, and cars are piling up at dealerships. Give it about another 3-6 months before looking for used cars and/or a house.
And the engineering of them hasn't even gotten that much better, mechanically speaking. Sure, all the technological gadgets are nice but not really necessary. The cars of old were just made better. Even Honda and Toyota went downhill since they started putting CVTs in their sedans.
And those 'gadgets' cost you more not just at time of purchase but also increased repair costs. I read that new cars have sensor units placed in the corners that enable those warning systems about other cars in your vicinity and they need replacing when the car gets in a wreck. So repair from body damage has escalated hugely in recent years.
I drive my 2004 Jeep I got for $800 no ac and a 2006 Mazda 6 for 1k had them both for atleast 5 years. Do lots of work myself. Hoping to get a 350z soon
the problem is today's manufacturers dont want to compete with Toyota and Honda's that are 10 - 15 years old. that are still more reliable with more affordable repairs. with higher standards when they still made them in japan and not malaysia and india, and the design of the cars were made to last and be repaired easily. 2024 - 2025 cant even make a 40k car that will go 100k without needing insane repairs worth half the price of the car. its the iphone syndrome expanded into cars...
Here's an example of a "common" feature in cars today that I personally think is ridiculous: sun/moon roofs. What a stupid "invention". Here, you have a regular car with a steel roof, solid, if car rolls over you have protection. So the geniuses cut out a big piece of metal right in the center and replace it with GLASS. Glass breaks. If a tree limb falls during a storm it can break the glass and the car gets flooded and you get your head smashed. Plus, I find out the rubber seal around the glass is NOT water proof. Water leaks in when the roof gets wet. It's supposed to leak. There is a gutter that runs around the glass edge that catches the water and it flows out of 4 holes at the corners and down 4 tubes that run down the sidesof the car and exits at the bottom of the car outside on the ground. BUT the holes can get clogged from debris, leaves, stuff like that and the water does not drain normally but runs into the cabin and ruins the interior. You have to "maintain" it to keep the drains clean - another chore. For what? To have the sun shine on you and give you skin cancer? And if you open the glass now you can get a nice breeze. Well you can just roll down the window and get a nice breeze too. Now sporty people who like sun roofs think I'm crazy or stupid, but IMO this is just another added "feature" that has nothing to do with getting from point A to B but is just another item to increase the cost of cars and the maintenance of cars and added repair costs when the motor breaks or jams. (And what if it jams open and it starts raining?) Unless you live in your car full time, your car does not have to be as "luxurious" or hospitable as your home. I know 'comfort' and 'luxury' are the two key marketing terms today. GOD FORBID people should be denied comfort in their lives.
Wow man- I appreciate your passion on this sunroof issue. My accord has a sunroof and I actually like using it- but now I kind of feel like a piece of shit for having a sunroof….lol 😂
@@JoshPiper Okay, I know I'm opinionated and didn't mean to offend anybody. I'm a "Luddite" and believe the world is devolving because of technology. I have noticed whenever something new is invented/created it keeps developing and evolving, but often goes to an illogical extreme, beyond what is needed. Here's another example: automatic windshield wipers that automatically turn on when it starts raining - it somehow senses when the windshield gets wet and starts the wipers. Engineers take a simple manual task like turning a knob/switch when it starts raining (I can tell when it starts raining BTW) and create a new complex system of parts to save the poor driver from the onerous task of turning that knob. This new system costs more to make/buy and when it breaks will cost a small fortune to fix. But some people like gadgets and probably think it's cool. Just keep the drain holes on your Honda sunroof clean. :)
Mitsubishi did make such a car and just discontinued it--the Mirage. It was even more basic than your Saturn and started at $16,700. Nobody bought that car as its more like a cheap golf cart and for that amount of money you can get a much nicer used car.
Yeah- it may not be possible to get new cars that are decent within that 10-15k range anymore. I really think the answer is being a smart consumer and buying used or slightly used cars from private individuals. This way you still get a quality car while letting someone else pay the major depreciation cost of buying the vehicle new. Plenty of solid used vehicles out there for under 10k, plenty of solid ones for under 5k too. Heck, my 98 Saturn was $900 total man. I’ve put 40,000 miles on this car with no problems. So there are certainly cars out there that offer a great value still.
funny. i was just traveling and had not been to Subway in years. yet noticed they limited the toppings. i got a half a sandwich and they only permitted like three veggies. couldn't even get lettuce AND tomatoes once i had added the bell peppers and cucumber.
Yeah it sucks man- I stopped going there. The sandwiches are mostly bread and they are total sticklers on giving you any amount of toppings. I got the cops called on me one time at a subway for getting into it with a subway employee. The lady was a power hungry manager that wanted to boss people around and insult them- she was ultimately fired.
@@JoshPiper back in the day, i really liked Quiznos. WAYYY better than Subway even at Subway's peak, where you got a decent value for a 5 buck footlong or even the 6 inch. Q's story is now widely known but even before they went downhill, I knew a guy in Jersey that bought a franchise with his buddies, and they said corporate sucked. seems everything goes to s...t. when it's all about quarterly profits. just stick with local delis or value plays in the neighborhood.
I think a lot of it has to do with the US economy as well. Labor here is too costly- they can't build cheap vehicles (look at the Ford Maverick, it's made in Mexico). At least that is the line the domestic companies throw out.
I think the realistic solution is to just be a conscientious consumer and buy depreciated used vehicles. Let someone else take the hit of depreciation of buying a brand new car. As long as you buy a car that is a couple years old you will save a significant amount of money by avoiding incurring the majority of the depreciation expense. You can take it to the extreme as I have with my Saturn- essentially buying a car that has a value very close to $0- and still getting utility out of it. I spent $900 on the Saturn and it is a car. It takes me places and takes me back home. Other people spend 50k or 100k on a car. It takes them places and it takes them back home. You can argue their car is more comfortable or has nicer amenities or whatever- but when they go to sell their car in a few years they will lose 25k or 50k of real value- whereas my car has already been fully depreciated and I can only lose the initial $900 that I actually paid for the car.
@@JoshPiper I do agree with that. I've bought a couple new cars in the past, won't ever be doing so again. My current ride is a 17 Chevy Volt, that I bought used after the Volt line was discontinued. When a model is discontinued, depreciation can be huge because people are worried about parts availability. So good used car buying opportunities.
