Why should the price of the car matter?
This a quick poll for everyone here who:
* Owns a luxury (expensive over $40K sticker price) car that they purchased new or used with original warranty
* Warranty is expiring soon or just expired
I generally think it's pretty sh*tty the car mfg's generally see 5 or 6 year loans but offer 3 year warranties. Frankly the idea of still paying on a vehicle loan and repairs disgusts me, even if they aren't entirely likely. Of course longer warranties lead to higher car prices.. so there's a tradeoff there.
444hp/413tq - bone stock, all motor, Volkswagen.
I think for premium cars it's best to lease new ( and then buy it out if residual is good and you're happy with the car) and buy used
I bought a Jag for peanuts couple years ago and it's perfect.
Even if you have to spend $$ here and there, it's worth it.
This thread needs pictures!
The flaw here is this is TCL. For about 80% of all luxury car owners the question is moot, because they lease. Most of the people that own luxury cars on TCL bought off-lease vehicles with little or no warranty, knowing they'd either DIY or use an independent.
I'm in both camps, though. I bought my BMW M Coupe new and it's currently out of warranty, and I bought my Porsche Boxster used. The plan for both is the same - I'll DIY the maintenance and small repairs, use a trusted indie shop for the bigger stuff if necessary.
A hundred dollars on your hair, fifty on your nails, fifty on make-up, two hundred dollars for an outfit. You ladies spend four hundred dollars to bring home a thug that ain't worth ten cents!
Bought my E39 used, with about a year of warranty left. The plan was, and still is, do the small stuff myself, and send it to my friends who are BMW master techs and work on the side for beer money.
Parts at cost, and paying someone 1/3 shop rate for the time they actually work on the car (not book time, as any good tech can come in under book on a lot of jobs), means E39 ownership hasn't been bad.
Not my personal experience since I have never bought a car new, but this is what my grandfather does.
-Buy Audi (always an Audi, though he was cross shopping a Maserati Quattroporte and an A8 this past year, ended up getting the A8)
-Drive it until warranty is up
-Give it to one of his sons (whoever was next in line)
-Buy a new Audi
He did not want to deal with the service; instead he would pawn it off on my father or one of my uncles
My dad has been buying premium cars since the 70's.
- Tends to buy new
- If the price is right on the warranty, he seems to buy it
- Services them at the dealer, always. He's tried indy shops and has done the math to show he never came out ahead... I guess they would charge less per hour, but take longer to do most jobs. He usually buys Volvo, so the parts always were pretty reasonable (even thru dealer).
- He goes with the 'still cheaper to maintain then buy a whole new car' philosophy... The whole point of a luxury car is that in the long run its similar in cost to buying two decent 'throw away' cars:
This is his reasoning.
15 years ownership
Car A: $60k price, $10-20k in parts, maintenance, labour etc over lifetime, serviced at dealer. Sell for $2000-4000.
Total cost: $65-78k
Car B: $30k price, $3-5k in parts (possible more if in the 4-7.5 year range you get a bad design car and many things go wrong), maintenance, labour over 7.5 years, serviced at dealer. Trade for $5000 maybe a bit more
Car C $35k price (factoring in inflation), $3-5k in parts, maintenance, labour over 7.5 years, serviced at dealer. trade for $5000.
Total cost $61-70k+.
He prefers the smooth ride, quietness, better safety, features etc of the luxury car. Basically a luxury car will always feel like a luxury car, even when its old and outdated. A normal sedan will just feel old and crappy quickly.
Ooh, I know what I am doing with mine. My warranty is over and I am keeping the car for the long run and I'll be doing a combination of self maintenance for the more common things and taking it to indy shop for the more complicated items.
The reason why I started this poll is because I wanted to see what the general car enthusiasts would do in this situation. I wanted to see how many of you will see this from a purely financial stand point vs how many of you will look at this from an enthusiast point of view, so to speak.
I understand them just fine, but I also think it's sh*tty.
When your _AVERAGE_ loan is 60 months I think it's obvious longer warranties would be preferred by most. Who wants to be paying on their car and repairs? Not anyone I know.
Obviously 3 year loans for folks who usually take out 5 year conventional is probably a bit of a stretch, nearly doubling your monthly payment.
Last edited by Grey Mouser; 05-01-2012 at 09:03 PM.
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 $16k right now, and then the warranty on those is already gone in a lot of cases (not accounting for buying extended)
Last edited by Grey Mouser; 05-01-2012 at 09:29 PM.
Keep car - service anywhere (including dealer).
Out of warranty for a year now. Friday, I'll have a shop replace the front struts. 900$ 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.
2007 E90 AW 323i Step | Lowered 1.25"/1" | BMW Performance Exhaust | PBX | Debadged | Scangauge II | Style 162 18" & 161 17" wheels & rear 15mm spacers
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.