This is a separate instance from paying for your vehicle in year 3 and 4 and having repairs possibly gouge at your pocket book. Obviously some cars run trouble free, some don't.
So, Mr. Moneybags, what's life like taking out 36 month (or less) loans on a new car, since you're so adamant that's what the world should be doing?
P.S Taking a 16,000 dollar car without accounting for interest or taxes is still $444.44 a month for 36 months. Would you care to point out any NEW cars below this price point you can buy on a loan for 36 months that don't exceed $350 and don't suck AND haul a family of 4 comfortably? (My personal max at the moment).
Hell you can't even buy a lot of 'decent' used cars for less than $16k right now, and then the warranty on those is already gone in a lot of cases (not accounting for buying extended)
Last edited by Grey Mouser; 05-01-2012 at 10:29 PM.
Keep car - service anywhere (including dealer).
Out of warranty for a year now. Friday, I'll have a shop replace the front struts. 900$ job. Very bad roads here.
I budgeted 5400$ over 3 years for out of warranty repaired , not including what would not be covered under warranty (tires...).
I assumed 7 years total.... might be 8-9 if I lower my annual mileage.
Not mine, but in the family
had a 100k extended warranty through mercedes, and it was a nightmare and a half to get them to warranty some work, but eventually they did
I would not go with a 3rd party extended warranty, I did the math, and chances are if you have a huge bill on a 4/5 year old car, thats worth less than 20 grand, you are going to trade it in.
It all depends on how you maintain the car. If when you purchase it you want to keep it for good, you treat the car different, anyone know what im talking about?
Unless is a huge electrical mess, independent shop is your best bet, I dont know how bmw works, but many mercedes parts need a trip to the dealer once they have been installed.
If you're looking at it strictly from a monthly payment standpoint, you have lease options that are far below that, for something like an Accord or Jetta (buddy leased a 2012 Jetta GLI with $0 down and $350 for 36 months, 15k miles per year).
There are plenty of used cars that can carry 4 in comfort and safety. Perhaps there are no NEW cars that meet your exact criteria of price point and carrying 4, limited to a purchase and not a lease, but there are plenty of other options such as used private party, CPO, or lease as already mentioned.
And for reference, you can buy a Kia Forte around $15K+taxes, or a Rio and Soul for $13.5K each, and all come with a 10yr/100k miles warranty. They are not going to have the same rear seat room as a Town Car, but they are certainly acceptable for kids or average height adults.
Another example is the Jetta, which has a 60k miles powertrain warranty, and will certainly seat 4 adults in comfort, and retails from just under $17K. This is obviously a bit higher than your price point, but you can buy a slightly used one for $16K or less, plus taxes.
I don't have bags of money, and I never claimed to either. I simply stated that overextending to buy something rests solely on the consumer, and the auto manufacturer. I can tell you that life is quite good living within my means, and I'm hoping that yours is as well.
We live within our means for sure, even more so now that the wife only works part time. It's just frustrating to even think about car repairs at year 3+ when a loan is still being paid on. Maybe it's just a personal peeve of mine.
The average length of a loan is 60 months because people are buying cars that are too expensive. If you could buy a $2,000,000 home with a 100 year mortgage, would you do it? How long is a warranty on a home anyway?
If you don't want a car that is not under warranty, buy one you can pay off within the warranty period.
Other budget cuts coming (cable comes to mind)... we re-fi'd the home last year and dropped our rate a good bit and our payment.
Eh different strokes for different folks.
My wifes Protege 5 is coming up on 10 years old.. not too many failures thankfully. Oil pan gasket, radiator, one window reg. It's due for new tie rod ends and sway link ends due to rotted boots, but the last two years have mostly been gas and oil changes. It's showing it's age these days but still pretty fun to drive.
I drive under 12k a year personally, my wife drives much more.. 20K+ most years.
We make a comfortable living, a little less so with a 2.5 year old in day care now but expenses add up quick. Cutting some of our 'luxuries' are not far off.. as I said earlier we traded our TDI JSW in for a real stripped down CX-7 to save us $100/mo plus any out of warranty repair since we were already at 40k in 2 years on it.
As for the gas differential... our JSW TDI never got impressive numbers, it was a common 'complaint' I gave with each 10k service. Always 'everything checked out' and my wife (primary driver) is by no means a lead foot.