BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BIMMERPOST Universal Forums General Automotive (non-BMW) Talk + Photos/Videos The average car loan length is 69 months

Post Reply
 
Thread Tools Search this Thread
      10-06-2019, 12:33 PM   #67
allinon72
Major
allinon72's Avatar
United_States
1259
Rep
1,252
Posts

Drives: 15' M3, 12' Raptor, 17' X1
Join Date: May 2017
Location: Indianapolis, IN

iTrader: (0)

Quote:
Originally Posted by Efthreeoh View Post
I completely disagree with this argument. First off net worth has nothing to do with the ability to afford buying a car, regardless if it is new or used. Affordability come from useable income one can afford to outlay for his transportation needs. If it were true that it doesn't make financial sense to buy a new car, then almost anyone would be in financial ruin. The financial impact of purchasing a car (if not bought as a toy), comes down simply to how much per-mile the car costs the owner to drive, which is calculated using a formula for total cost of ownership, or Total Lifecycle Cost (basically purchase price, fuel, maintenance, and repair). The longer the car is owned the cost of initial purchase is amortized over a longer prior of time and mileage. Buying used just means the car has theoretically, an overall shorter life span for the person who bought it new. It's nowhere near 50 years.
You thought me saying 50 years was serious and not at all facetious? I mean, really?
Appreciate 0
      10-06-2019, 12:35 PM   #68
allinon72
Major
allinon72's Avatar
United_States
1259
Rep
1,252
Posts

Drives: 15' M3, 12' Raptor, 17' X1
Join Date: May 2017
Location: Indianapolis, IN

iTrader: (0)

Quote:
Originally Posted by AlpineWhite_SJ View Post
You need to do the math and figure out if the depreciation outweighs the extra finance cost and maintenance on a used car. Loan rates are typically higher on a used car so there’s a higher finance cost over the life of the loan and potentially higher repair and maintenance on something like a lease return with 30k miles. I drive my cars relatively little (sub 10k) per year so the warranty coverage and lower maintenance costs combined with special dealer finance rates can mean an overall lower cost of ownership in the typical timeframe most hold onto a vehicle.
I challenge you to find me an example of the same car, one brand new and one with under 5,000 miles, that have drastically different costs of ownership such that it makes sense to buy the new car, considering the slightly higher rate on the "used" car.
Appreciate 0
      10-06-2019, 01:16 PM   #69
Rmtt
Major
Rmtt's Avatar
United_States
1728
Rep
1,449
Posts

Drives: 2011 BMW 128i, 2008 LS3 C6
Join Date: Jan 2019
Location: South Carolina

iTrader: (3)

Quote:
Originally Posted by premier3is View Post
Also the financial 'guru' on this thread is hilarious. I'm sure half of the recommended things on here aren't even being followed by the ones recommending it lol.
If you are talking about Run Silent .....I would bet without hesitation that he does in fact " practice what he preaches".

As for the thread in general, I could care less what someone does with their money. They can have the car of their dreams, or they could end up getting it repossessed. Only they know how responsible they are with money....and what their personal finances look like.
__________________
2011 128i: M-Sport Suspension, 3:73 Rear Diff, 3SI Intake, AA Headers, MILVS, MagnaFlow Catback, AFE Scoops, Turner Silicone Hose, Charcoal Delete, StageFP Tune, APEX ARC8 Wheels.

2008 Z51 C6 LS3 w/ LG SuperPros, Ported Fast 102 Intake, RPM Level 2 Transmission, "Small Cam" Vararam SnakeCharmer CAI - 461whp / 467wtq
Appreciate 3
      10-06-2019, 02:57 PM   #70
Efthreeoh
Lieutenant General
United_States
5610
Rep
13,495
Posts

Drives: E90 & Z4 Coupe
Join Date: May 2012
Location: MARLAND

iTrader: (0)

Quote:
Originally Posted by allinon72 View Post
You thought me saying 50 years was serious and not at all facetious? I mean, really?
Yeah, I did, but ridiculously overstating it at 50 years, trying to make a point about buying new vs. used was self-defeating. It is perfectly reasonable to buy a new car and keep it 10 to 15 years; and it is quite financially responsible.
__________________
A manual transmission can be set to "comfort", "sport", and "track" modes simply by the technique and speed at which you shift it; it doesn't need "modes", modes are for manumatics that try to behave like a real 3-pedal manual transmission. If you can money-shift it, it's a manual transmission.
Appreciate 0
      10-06-2019, 09:13 PM   #71
AlpineWhite_SJ
Private First Class
AlpineWhite_SJ's Avatar
United_States
148
Rep
167
Posts

Drives: 2018 F80
Join Date: Sep 2017
Location: Bay Area, CA

iTrader: (0)

Quote:
Originally Posted by allinon72 View Post
I challenge you to find me an example of the same car, one brand new and one with under 5,000 miles, that have drastically different costs of ownership such that it makes sense to buy the new car, considering the slightly higher rate on the "used" car.
M performance school cars usually get sold sub 5k miles
__________________
/// 2018 Alpine White on Black F80 M3 - 6MT ZCP ZEP /// 3d Design billet handbrake lever, pedals, CF side skirts & rear diffuser / Sterckenn gloss black lip / IND alpine white front reflectors ///
Appreciate 0
      10-07-2019, 08:50 PM   #72
PoorLurker
Custom User Title
PoorLurker's Avatar
No_Country
1078
Rep
580
Posts

Drives: a bicycle
Join Date: May 2015
Location: Orange County, CA

iTrader: (0)

They should help us idiots and give lower rates for longer terms. I used to need a 120 month loan to buy my dream car.

Now I think I would need like 240 months. Do you guys think sports cars could be written off as an RV for loan writing purposes?
Appreciate 0
      10-08-2019, 03:20 AM   #73
Humdizzle
Captain
675
Rep
782
Posts

Drives: 2010 ferrari 458
Join Date: Oct 2016
Location: Missouri

iTrader: (0)

I currently have my 458 for sale (169k)

This nutsack texts me for the last few days. Wants a ppi. I spend my entire lunch break sourcing an enclosed transport service while he talks to his bank. He drives an R8 so I assume he has some kinda money.

Lmao dude wants to try and finance the whole car and his bank said no.
Attached Images
 
__________________

2010 Ferrari 458
2015 SSII F80 6MT
2009 Honda Civic
Previous: E36 M3 | E46 M3 | R35 GTR | FR-S | F30 335i
Appreciate 1
Stage IV2535.50

      10-08-2019, 10:38 AM   #74
OnlyGerman
Private First Class
OnlyGerman's Avatar
34
Rep
137
Posts

Drives: 2014 X5 xLine 2012 535i M
Join Date: Jul 2019
Location: FL

iTrader: (0)

Quote:
Originally Posted by zx10guy View Post
And this gets back to my original reply in this thread. Why not buy new if you hold on to the car for a long while? It's ridiculous to paint with such a broad brush.

I've never traded in any car I've owned. I've only sold off one car to a car buying service because having that car around with at the time two cars already was not prudent. The car buying service offered me more than what I would have gotten if I traded it in. That car I happened to buy used and felt comfortable about it because I was able to talk to the original owner. That car I owned for 16 years before selling it. My daily beater at the time I owned for 8 years until it was done in by a deer. I would have continued to drive that thing till I ran it into the ground. My previous car I drove till it blew a head gasket at around 170,000 miles and owning it for 11 years. My two bikes I currently own are 15 and 10 years old respectively. My 135i is going on 6 years and I have no intention of doing anything with it. Again all these vehicles were purchased new with the exception of the one used car I sold to a car buying service.

Could I have maximized my money more by buying used? Sure. But I certainly didn't piss away money that you're implying by buying new.
That is because you kept your cars so it doesn't even matter.... I am talking about the people who buy NEW then sell in about 4 or less years and wonder why they only get less than half on trade.
Appreciate 0
      10-08-2019, 10:57 AM   #75
zx10guy
Colonel
2048
Rep
2,262
Posts

Drives: 2013 135i
Join Date: Feb 2014
Location: DC

iTrader: (0)

Quote:
Originally Posted by XLife14 View Post
Best method is the only finance half - if you don't have half upfront, don't buy. 48month is usually a good term. Never buy new unless you like to watch money burn...lol
Quote:
Originally Posted by XLife14 View Post
That is because you kept your cars so it doesn't even matter.... I am talking about the people who buy NEW then sell in about 4 or less years and wonder why they only get less than half on trade.
You didn't make that differentiation in your original post. As you can see, I bought new and haven't boxed myself into a financial corner. And there are others out there like me that don't change cars as we do underwear.

What about those that buy used but are constantly flipping those cars? Are you applying the same financial yard stick to those people?
__________________
Quote:
Originally Posted by Lups View Post
We might not be in an agreement on Trump, but I'll be the first penis chaser here to say I'll rather take it up in the ass than to argue with you on this.
Appreciate 1
arashir30.00

      10-08-2019, 11:05 AM   #76
pgviper
Captain
United_States
207
Rep
814
Posts

Drives: X5
Join Date: Apr 2012
Location: Brooklyn, NY

iTrader: (0)

Quote:
Originally Posted by AlpineWhite_SJ View Post
Will be interesting to see whether those getting those extended loans actually drive them until payoff or whether they’re selling at year 5 or less. I usually finance for up to 5 but tend to pay off around year 3. 5yr loan is more about limiting impact to monthly expenses/lower payment. Combine with a good finance rate and it’s a pretty good play. Drive them until 100k plus/8-10 yrs and then sell to private party since they usually aren’t worth much for trade in. Makes a new car sale so much easier not haggling over trade in value :
I would love to follow this pattern but how do you handle "out of warranty". Do you do the work yourself, have a 3rd part warranty or just take the expense when it comes around.
Appreciate 0
      10-08-2019, 11:20 AM   #77
Soterios
BXR
414
Rep
519
Posts

Drives: 2012 135i
Join Date: Jun 2018
Location: Missouri

iTrader: (0)

Quote:
Originally Posted by pgviper View Post
I would love to follow this pattern but how do you handle "out of warranty". Do you do the work yourself, have a 3rd part warranty or just take the expense when it comes around.
Honestly the answer is buy a car that won't have that many 'out of warranty' expenses. I'm two new Hondas deep for daily drivers. My last one went 6 years and 75,000 miles and never cost me a dime outside of fluids and rubbers. I expect the same out of my current. The wife's Subaru has been the same save the known recall with the piston rings.

Or lease and not worry about it.

Or buy that extended warranty if you plan to keep it that long and fear the upkeep costs.
__________________
2012 135i M Sport Alpine White
Appreciate 0
      10-08-2019, 11:41 AM   #78
MPBK
Everyday I'm shuffling
United_States
363
Rep
1,031
Posts

Drives: '12 SG 135i DCT; '18 MG M2 DCT
Join Date: Sep 2011
Location: USA

iTrader: (0)

He who dies with the most debt wins.

These fuckers are pulling the trigger way too early.

Too early son.
Appreciate 0
      10-08-2019, 12:25 PM   #79
vreihen16
Second Lieutenant
United_States
711
Rep
274
Posts

Drives: 2015 BMW i3 BEV
Join Date: Jun 2019
Location: Orange County, NY

iTrader: (0)

Garage List
Quote:
Originally Posted by pgviper View Post
I would love to follow this pattern but how do you handle "out of warranty". Do you do the work yourself, have a 3rd part warranty or just take the expense when it comes around.
Speaking for myself, my rolodex (showing my age) is full of racing buddies who own repair shops. My breakdowns give them something to talk about, like how I drove 7 miles on the interstate with a broken tie rod and front wheel floating free, or how I made one of their mechanics crap his pants in less than 100 feet on a test drive when he didn't believe my diagnosis that the steering box in my pickup suffered a catastrophic failure and was un-drivable. No freebie repairs from any of them, but I know that the work is being performed competently and don't mind supporting local small businesses.....
__________________
2015 BMW i3 BEV, Giga World (Lodge interior), Tech/Driving Assist Packages, 18K miles
Appreciate 0
      10-08-2019, 12:41 PM   #80
48Laws
Banned
678
Rep
1,916
Posts

Drives: '15 F80, '18 991.2 GTS
Join Date: Nov 2010
Location: East Coast

iTrader: (0)

Quote:
Originally Posted by Humdizzle View Post
I currently have my 458 for sale (169k)

This nutsack texts me for the last few days. Wants a ppi. I spend my entire lunch break sourcing an enclosed transport service while he talks to his bank. He drives an R8 so I assume he has some kinda money.

Lmao dude wants to try and finance the whole car and his bank said no.
You call an interested buyer a “nutsack” yet you forfeited over $70k+ (Taxes etc) in purchasing that 458. I wonder if the SA at Ferrari called you a “nutsack” when you signed the title and laughed with his colleagues.
Appreciate 0
      10-08-2019, 12:45 PM   #81
HuskerFan85
Private
17
Rep
89
Posts

Drives: 4 wheels
Join Date: Jun 2013
Location: ATL

iTrader: (0)

Quote:
Originally Posted by Humdizzle View Post
I currently have my 458 for sale (169k)

This nutsack texts me for the last few days. Wants a ppi. I spend my entire lunch break sourcing an enclosed transport service while he talks to his bank. He drives an R8 so I assume he has some kinda money.

Lmao dude wants to try and finance the whole car and his bank said no.
from looking at his profile it seems like the guy just flips cars
Appreciate 1
Humdizzle675.00

      10-08-2019, 01:13 PM   #82
Humdizzle
Captain
675
Rep
782
Posts

Drives: 2010 ferrari 458
Join Date: Oct 2016
Location: Missouri

iTrader: (0)

Quote:
Originally Posted by 48Laws View Post
You call an interested buyer a “nutsack” yet you forfeited over $70k+ (Taxes etc) in purchasing that 458. I wonder if the SA at Ferrari called you a “nutsack” when you signed the title and laughed with his colleagues.
1) no way would I buy any new car. as someone said above its akin to just setting money on fire. I bought my 458 3 years ago after it had taken a brunt of its depreciation.

2) the amount of money I've lost in depreciation/service work is the same as someone who leased a new M3CS for 3 years.

3) My sales tax was under 10k. in Missouri you are only taxed on the difference. (sell car A for 60k, buy car B for 150k a few months later, you are only taxed on 90k)
__________________

2010 Ferrari 458
2015 SSII F80 6MT
2009 Honda Civic
Previous: E36 M3 | E46 M3 | R35 GTR | FR-S | F30 335i
Appreciate 0
      10-08-2019, 01:19 PM   #83
Efthreeoh
Lieutenant General
United_States
5610
Rep
13,495
Posts

Drives: E90 & Z4 Coupe
Join Date: May 2012
Location: MARLAND

iTrader: (0)

Quote:
Originally Posted by XLife14 View Post
Best method is the only finance half - if you don't have half upfront, don't buy. 48month is usually a good term. Never buy new unless you like to watch money burn...lol
LOL. Most people with good credit and a personal 401K at a bank can get 2% money from their bank on any given day, and that goes for a used cars as well. 2% is basically free financing.
Appreciate 0
      10-08-2019, 01:26 PM   #84
Humdizzle
Captain
675
Rep
782
Posts

Drives: 2010 ferrari 458
Join Date: Oct 2016
Location: Missouri

iTrader: (0)

Quote:
Originally Posted by Efthreeoh View Post
LOL. Most people with good credit and a personal 401K at a bank can get 2% money from their bank on any given day, and that goes for a used cars as well. 2% is basically free financing.
just depends on the person I guess. Putting the whole car on a loan with a low rate isn't bad, and will reduce your exposure. But at the same time, for me at least, it tricks me into thinking I have money because I see a large bank account. When in reality that money isn't mine and owed to the bank.
__________________

2010 Ferrari 458
2015 SSII F80 6MT
2009 Honda Civic
Previous: E36 M3 | E46 M3 | R35 GTR | FR-S | F30 335i
Appreciate 0
      10-08-2019, 03:59 PM   #85
48Laws
Banned
678
Rep
1,916
Posts

Drives: '15 F80, '18 991.2 GTS
Join Date: Nov 2010
Location: East Coast

iTrader: (0)

Quote:
Originally Posted by Humdizzle View Post
1) no way would I buy any new car. as someone said above its akin to just setting money on fire. I bought my 458 3 years ago after it had taken a brunt of its depreciation.

2) the amount of money I've lost in depreciation/service work is the same as someone who leased a new M3CS for 3 years.

3) My sales tax was under 10k. in Missouri you are only taxed on the difference. (sell car A for 60k, buy car B for 150k a few months later, you are only taxed on 90k)
So, your perspective buyer would still lose less than you.
Appreciate 0
      10-10-2019, 12:29 PM   #86
aerostar
Major
531
Rep
1,107
Posts

Drives: 2018 F80
Join Date: Apr 2015
Location: NJ

iTrader: (0)

Quote:
Originally Posted by Humdizzle View Post
just depends on the person I guess. Putting the whole car on a loan with a low rate isn't bad, and will reduce your exposure. But at the same time, for me at least, it tricks me into thinking I have money because I see a large bank account. When in reality that money isn't mine and owed to the bank.
I never try to lie to myself.

I always consider my savings + investments and then subtract my outstanding debt.

Of course I am always aiming to be positive (besides my mortgage).

Anyway, I got 72 months at 0.9% so I couldn't say no. Why would I? It's free money, basically. If anything they'll lose some cash b/c of inflation.
Appreciate 4
      10-11-2019, 10:35 AM   #87
natahoa
Retired soccer mom
natahoa's Avatar
United_States
215
Rep
925
Posts

Drives: x5 40i 2019
Join Date: May 2019
Location: Rural Eastern MD (Eastern Shore/Delmarva)

iTrader: (0)

Garage List
I bought my car in June and took a 5-year loan only because my investments are doing so well. It wasn’t smart to pull all that earning potential out of savings, and I haven’t had a car loan since the late 1970s.

I looked at the actual dollar cost of every option, including the balloon loan and lease. The five-year note was the least-cost option with the best trade-in value after four or five years. If the stock market tanks, I always have the option to pay it off.

We have kids in their 20s, and when they got out of college we helped them buy cars. We ended up going with new cars, five-year notes, because the interest rates were so low and the warranty offers a smattering of protection.

But they didn’t buy fancy cars. Both ended up with base model Honda CRVs. Those little buggers hold their value like crazy. So when they are able to trade up for a nicer car - without our help- they will have something to work with.

My daughter just moved to Germany and sold her five-Year-old CRV for $14k. She paid $21k for it. We were amazed. Now, that was a cheap car to drive for five years!
Appreciate 0
      10-11-2019, 11:30 AM   #88
MPBK
Everyday I'm shuffling
United_States
363
Rep
1,031
Posts

Drives: '12 SG 135i DCT; '18 MG M2 DCT
Join Date: Sep 2011
Location: USA

iTrader: (0)

Quote:
Originally Posted by natahoa View Post

My daughter just moved to Germany and sold her five-Year-old CRV for $14k. She paid $21k for it. We were amazed. Now, that was a cheap car to drive for five years!
Yeah, but how much did she pay the bank in interest over those 5 years?
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 07:19 AM.




xbimmers
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2019, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST