1 used, paid cash, 3 years written off when lent to someone else.
2 used, paid cash, 2.5 years written off in a collision (other drivers fault)
3 used, paid cash, 10.5 years parted out at 465000 km
4 used, partially financed, 3 years, repair costs escalated, really wasn't a smart purchase in the first place.
5 New, financed, 2.5 years so far
1 used, paid cash, 3 years, written off in collision(other drivers fault).
2 used, paid cash with mostly insurance money, 6+ years, sold for new car after repair costs escalated and she wanted more trunk space for work reasons, the only car we didn't really need to replace.
3 New, financed, 1.5 years so far
None of the written off cars were planned to be replaced.
My truck is upside down, but not by much now. Used trucks hold a lot of value up here and realistically I will be out of that hole before the warranty is up.
We plan on paying down both car loans significantly in the next year.
Both vehicles are also base models that met our needs/wants at modest prices. I have basically a fleet spec truck with carpet.
Neither has planned replacement timeline.
Last edited by D_B_Jetta; 07-24-2019 at 10:41 AM.
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I bought our Corolla for about $500 under invoice, financed it for 72 at 0% and rolled in $2k of negative equity from a car we wanted to dump. I haven't paid any extra on it and what we owe after 2 1/2 years is within a couple hundred bucks of the KBB "Good" trade-in value.
Improving the signal-to-noise ratio
Lol at everybody racing in to brag about their low interest rate loans
Nobody ever bought a car at its lowest price of the year with subsidized financing. Especially not anything reasonably desirable. You paid for the right to say you have that low rate, whether it was the only option at the time or not.
I’d concentrate on cost/mile, annual cost of ownership, 5 year cost of ownership, etc
And if it won’t kill you, buy what you like. It’s expensive taking a bath on a trade/sale because you bought a deal more than a car, and decided later that you hated it.
i split hold back on our ford explorer, had thousands in rebates, and still got 0% for 72 months. everyone assumes that if you chose low interest rate you forego all rebates. while that is sometimes common, thats not always the case and to assume we all dont know how to negotiate is ignorant.
cost/mile is a terrible metric because id be out buying used chevy volts vs a 911 turbo.
Unless you are buying a car that a manufacturer can't get rid of, 0% is a lot harder to find than it was 4, 6, 8 years ago. Best we could get on our slightly used RAV4 was 3.9% and we both have 800+ credit. When we bought our Prius in 2010 we got 0% with lower credit scores.
Cost/mile is not a terrible metric because you are using it in reference to your budget and comparing it to similar purchase options. Not two completely different cars like your irrelevant example.
End of model year = cheaper. Discontinued model = cheaper. Buying a new model soon after it's out = more expensive. At least on the surface. That doesn't always play out in total cost of ownership by the time you lose subsidized financing and your "new" car has already depreciated two model years. Still, it's not remotely useful to focus on the fact that your new car will get cheaper if you wait. That's a "well duh" moment. You have to focus on whether you're getting a good deal at the time you buy it.
Some people have flexibility to kick the can and wait for the end of model year clearout, and they're not seeking a rare color, transmission, or trim, so they can roll the dice a bit. That doesn't apply to people wanting a 6MT SS in red before they're gone, or people who had their car totaled and need something this month.
1. BRZ was $3,000 off and 0% interest
2. Miata was $4,000 off and 0% interest.
3. Golf R was right before the 2018 MYs were scheduled to hit the lots (7 speed DSG and digital dash) so we negotiated $2,500 off and 0.9% on a 36 month lease.
4. 2020 G90s are scheduled to drop this autumn, so we negotiated $3,000 off a CPO and the banks came in fairly aggressive at 3.9%.
As Mike pointed out, maybe we could've gotten more if we waited, but the deal was already excellent compared to the new model years coming in and the timing worked out for us.
In our area they have 0% for 5 years on the C-HR, Camry, Camry Hybrid, Highlander and Sienna and for 6 years on the Tundra. They have 1.9% on the Tacoma and 2.9% on the new Corolla. A couple models even have financing plus cash back.
I have looked at lightly used cars a few times and the better incentives on new ones bring the two prices close enough that I always end up going new.
Improving the signal-to-noise ratio
I want to say I was looking at the start of model year 2016 in late 2015, before we leased the Edge.
When I was shopping, a new Camry or RAV4 was 3.9% from Toyota and the same 3.9-4.9 from every credit union I contacted. So 3.9% on used was as good as it was going to get (plus saving $10k+ over a new one)
i never said i bought the least expensive car of the year, but i can assure you i was well in the bottom of the range of deals given out. you realize someone has to be the least expensive deal, or the deal they give away at damn near even to hit a volume kickback from a mfg, get an allocation, etc.
ask some of the gm's and sales guys that post here and they'll let you know they've let cars go at cost, etc. to get that.
and yes cost per mile is a horrendous even when comparing similar items because all thats doing is calculating for mpg, he who gets the most wins.
The whole package of what it costs you to own and operate the vehicle is what's important to evaluate, not "I got a 0% loan so I am the smartest financial decision-maker in the world".
you may use those metrics to figure out cost per mile. doesnt mean everyone does.
pretty sure fuel, maintenance and insurance aren't part of an auto loan which in case you didnt notice is what this thread was pertaining to.
Buying the wrong car and/or the wrong price at 0% interest can still be a crap decision. Buying the right car at the right price at 3% can be a great decision.
Does that make sense to you, or is the interest rate the only thing worth considering, so everyone should keep telling us the terms of their subsidized loans? It's not a big deal, I just think if you are going to talk about the financial aspects of car ownership, people should think about the whole picture. Depreciation can cost a lot, and high depreciation usually goes hand and hand with old models, undesirable models, and highly discounted/subsidized loan models. Not to mention you may have to drive around in an inferior product every day.