While in high school, I purchased my own 1989 Baby Blue Bronco 2. Yes, it wasn’t even a semi-cool real Ford Bronco, but the little baby brother second edition. That car and I had a love-hate relationship. I loved having a car and it was ultra cheap, but I hated that I was always replacing some part. The greatest part about this vehicle was that I owned it.
Then I entered college and drove about 15 miles to and from work daily. I was making more money and decided it was time for something NEW. After a lot of deliberation, I ended up buying my father’s Ford Ranger that was only about a year old and still had about $12,000 to still be paid for. I gladly accepted the monthly payments of $250 and had a (fairly) brand new truck.
When all was said and done, it took me 4 years to pay off a truck that only cost me $12,000. That was and is ridiculous. There is no reason I shouldn’t have had that truck paid off in just over a year. But more than that, I NEVER NEEDED A NEW VEHICLE.
Sure, a new vehicle is usually more reliable, is much sleeker, and much more comfortable. However, I definitely could have used that $250/month more than I needed a nicer vehicle. My comfort financially would have outweighed the ideological comfort of a new vehicle. I brought home about $1300/month while going to college. That had to pay for my truck, gas, insurance, school, food, and rent. That $250 or roughly 10% of my salary would have helped more than I can detail. And it was all because of my fear of being uncomfortable.
Today, I don’t have a car, but my girlfriend shares hers with me. I never want to own a vehicle ever again. Not even a used one. I know that may change quickly at any point, but I have thoroughly enjoyed the freedom of not paying for gas, insurance, and most importantly a car payment.
I am here to YELL at you and tell you to NEVER buy a new car. ALWAYS buy used. This financial tip should be stressed to those younger folks who want to be cool and hip. Trust me, it doesn’t matter and if that is how you want to “Get Chicks” than you are just making up for other shortfalls.
Top Reasons to Never Buy a New Car:
- Cost. You lose something like 15-20% just driving it off the lot.
- Expenses. New = higher insurance. Gas. Fix ups.
- Your feet. Why not walk to the bus and take public transit? Or just walk to your destination.
- Bike. I have foudn a new love for biking. It is a lot of fun and suggest everyone take it up for the small trips to the store.
Have a good one…
David Damron
LifeExcursion
Schucks...This one is super unique. No similar posts.
I’m totally with you on never buying a new car. There is no point. None. Used cars work and they save you a ton of money. On the point of never buying any car however, I’ve lived some places where you just need to have a car or access to one. If you don’t life gets overly complicated. If you live in a city with awesome public transportation that won’t be the case, but sometimes you just have to have a car.
.-= Mary Thompson´s last blog ..Life Lists and The Completed List =-.
We just had this discussion yesterday. Ladyfriend has a 1999 econobox she purchased new, that now has only a few hundred miles til it hits 200k miles. At the beginning of the month, she had to spend about a grand on repairs.
The car is driven every day, and we have taken it on multi-state trips often. It was a well-made car, parts are still readily available, and though this month’s repair bill was higher than usual, even if she spent $1000 a year on it every year instead of every 2-4 years like has been normal, she is way ahead of the game financially.
Automakers want you to buy or lease a new car every few years. “Built-in Obsolescence” is a term they actually use. Marketing and our entire consumerist economy encourages having new toys all the time. But the simple fact is that having a new car to us is entirely irrelevant. She doesn’t care if people think less of her because she doesn’t have the latest and greatest status vehicle, and spending an extra $2500 a year to have a new toy (plus the insurance hike for the more valuable car) is just not worth it to us.
She could “afford” pretty much any new car out right now, but why bother replacing something that only rarely gives her issues, gets great mileage and isn’t high on the most-stolen lists.
I’ve had new and used vehicles over the years, but I don’t foresee ever needing to buy a new car again. It just doesn’t make sense for us.
.-= James NomadRip´s last blog ..Lemonade Movie Cut Your Story? Be in the Book! =-.
I’d never buy a new car either.
However, I’m glad some people do to give me such a great selection and to depreciate the value just enough to make it fit my budget.
.-= Jonathan Frei — OrdinaryTime´s last blog ..Issues with unfinished business =-.
I’d never buy a new car either.
However, I’m glad some people do to give me such a great selection and to depreciate the value just enough to make it fit my budget.
I would only buy a new car in the case it was something like an Aston DB9 or something like that. My car is crap, I’ve had it about 5 years and I do own it, although I think it took me about 3 years to pay off.
Honestly I would prefer a lifestyle where a car isn’t needed, it’s another reason SE Asia is so appealing, a simple 125 scooter is all you need.
.-= Dan´s last blog ..6 Things Backpackers Don’t Admit =-.
Depreciation on a new car is riduculous, take Daves advice . I have also been through this same dilemma. When we had our first child, we did the ” gotta go get myself an SUV cause that what everyone else does” without thinking is it really necessary? Learnt the hard way, the SUV was unsuitable and believe it or not, the bells and whistles included in the car meant that cabin space was sacrificed causing space issues for our growing family. Buy what you need.
.-= Greg – LiveItWithLess´s last blog ..Moleskines – Back to basics =-.
In Japan, there are high vehicle taxes for older and less fuel efficient vehicles, so here it is generally cheaper to buy new.
I agree that it is far better to not have any vehicle if possible. I used to love cycling everywhere. Commuting used to be exercise. It is easy to get lazy if you have a car.
If I ever buy a car again, it will definitely be new. I have had my share of lemons over the years. I hate dealing with cars always breaking down. However, I am going to avoid buying a car again for as long as I can.
.-= John Bardos – JetSetCitizen´s last blog ..Interview with Internet Marketing Veteran, Samantha Milner =-.
I just got myself a used car. Although I’ll probably be downgrading soon to get rid of payments, if the used car checks out (no mechanical problems) I’m all for used.
.-= Ken Kurosawa´s last blog ..Discovering Your Motivations | Motivation Series Part 2 =-.
I think that cycling and walking is the way to go as much as possible. You won’t need to put aside so much specialised time to exercise if you are doing these. Cheers!
.-= Gordie Rogers´s last blog ..How To Put Your WordPress Blog On Autopilot And Spend Most Of Your Time At The Beach. =-.
Dave,
I had a brand new civic right out of college and my parents wouldn’t let me buy used. There’s not a day that goes by that I don’t think want a money sink it was. At this point, my ongoing joke is that I will drive this car until the wheels fall off. Sure, I’d love to drive a luxury car, but I would never buy a brand new one, and I’d make sure I had the money to buy it and not finance it.
.-= Srinivas Rao´s last blog ..Guest Post: Do You Want It? Prove It. =-.
I just bought a ’92 Honda Accord for $1,500. If it even lasts me a year, that’d be just a tad over $100 per month in payments — if I made payments, which I don’t. I think the trick is to buy smart — buy a reliable brand and before purchasing have it checked out by a trusty mechanic. Even if I have to bring it in to a shop, the Honda likely won’t cost me more than new-car payments.
I do try to bike, walk and take public transportation when possible. I can do this since I live in a city. The invention of the suburbs discouraged that type of transportation, and I think that’s led to obesity and global warming. The folks who trade in their perfectly fine cars for new ones every few years have a disposal mind-set.
.-= Jennifer Moline, PsPrint´s last blog ..When Ethics and Work Collide =-.
Hey Dave,
Agreed. I’ve always bought used. The best option is to live in a city where you don’t need a car.
(Or share one as you do.) Selling my car was one of the best feelings I’ve ever had.
Karol
.-= Karol Gajda´s last blog ..On Achieving Goals (or “Just Fucking Write”) =-.
Terrible advice in this article. No mention of the dangers and downsides of buying things used.
Car Used
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Oliver
Nice thoughts there. Nevertheless many may disregard your main idea. Buying a new car is not that bad. It’s just a matter of considering a car is not an investment but a tool. If you want to make some profit from your investment consider real state.