Why some change cars early

[gilly2497]

from a totally different perspective ... some people have well paid jobs and no kids and think why not upgrade your car every 2 or 3 years.
Nothing else to spend the money on and after a few years you just feel like something different to drive or a new car comes on the market and you decide it is better than what you have.

[aussiblue]

Diminishing returns - financial analysis will often indicate it's better to invest the money in the new car than in repairing and old one particularly if you are paying someone else to do the repairs and maintenance rather than doing it yourself.

[car10002]

Would the main reasons why most people get another car when the warning signs are there not when it actually dies is because

1. You don’t want to be in a hurry to buy the first car you see because your old ones not running anymore.

2. People don’t want the inconvenience of constantly dealing with repairs when they just need their daily to get to here there and can’t go that time. (there’s nothing wrong with a old car long as you’re happy to sort things as they pop up)

3. People are probably too busy to deal with repairs every other month and need to go places and need a good car to go out area as eventually they’re only good enough for a runabout unless you’re happy to keep it going by making lots repairs.

4. People want to be able to make definite plans

Any car will need repairs sometimes though,

The ef was constantly needing stuff and while was happy to deal with it, it just meant definite plans couldn’t be made and wasn’t sure about traveling to adelaide from yorke peninsula until last minute and even then was a possibility that plans could change and could only go occasionally, and there was no hope of it getting to murray bridge,

Then had to get rid of the ed in the yard of the persons and the engine blew up in the ef so now got a ba ghia as a daily and its great and now planning to get a ed as a weekend car and slap a v8 in it and have a nice fun car, would that story be why a lot of people don’t keep their daily going till engine or gearbox blows up.

[Pilko FNQ]

Depends partly also as to how many kays you are racking up, how you drive and preventative mtce. I have a 2001 TD 100 series with 270000km on it however it is still near immaculate. I also can't afford to breakdown due to where I live however I am 100% confident in this vehicle. It has never broken down and shows no signs it will. I also know the guy who has done every service and piece of maintenance on it in the last 15 years I have owned it.....me. My wife's Camry is a very low km 2007. Again serviced and looked after never broken down and looks like new. As a young guy I wasted plenty of money on cars however doing the opposite for the last 20 has let me get ahead financially in other areas and when I bought my XR8 I had the cash to pay for it. 3 years old now it is low km, well looked after not abused and never had an issue.

[mick taylor]

I would change to a new car before the 100.000km came up due to the dealers did not want a car over 100.000km and you lost to much value, so had to change over before 2 years was up.

Who want's to drive old crap if you do a lot of driving, but you can have a old car that you love to keep.

[Falcon SXR8]

Makes me laugh the amount of money people lose trading to the new shiny car then they whinge about how tough it is to make ends meat. Both parents working full time to pay for there lifestyle not realising life is passing them by

[car10002]

Some will keep fixing car until the engine or gearbox goes then get another car while many look for one when warnings there, would the story about the ef be main reason why many don’t wait till it totally dies.

The ef did a great job in last 6 years and if it wasn’t the daily or only car then could leave it then come back to it if you needed the money for something else that week

[Ben73]

Originally Posted by car10002

The ef was constantly needing stuff and while was happy to deal with it, it just meant definite plans couldn’t be made and wasn’t sure about traveling to adelaide from yorke peninsula until last minute and even then was a possibility that plans could change and could only go occasionally, and there was no hope of it getting to murray bridge,

I couldn't live like that.

I want to be able to at any given time of the day jump into my car and drive it for several hours without the concern it will breakdown. I'd also like to plan that in 3 months time I will drive interstate and my car should have no issues form between now and then.

I have had cars that have had issues and it's no fun driving around wondering if this will be the trip it will breaks down.

[Oldbugger]

I had lease vehicles for 23 years at Ford which were changed over every 6 months on average. I could lease any vehicle except FPV. Retired in 2007 and purchased XR5 which was traded for FG series 1 GT in 2010 which in turn was traded for FG series 2 GT in 2013. I have no plans on trading the GT.

[Fed]

The cheapest car you'll ever have is the one you pay cash for, keep it for a long time & repair it as things go wrong.

[Junkyard-Dog]

I'm not going to lie. If I had the wealth to become a full-on consumerist, I would. Buying the latest and greatest whenever you want would be a good time.

Capitalism is a pretty good system for those on the higher-tiers. Not so much for anyone else.

Horses for courses. For multi-millionaires, a brand new Benz or BMW is chump change.

[mick taylor]

Originally Posted by Ben73

I couldn't live like that.

I want to be able to at any given time of the day jump into my car and drive it for several hours without the concern it will breakdown. I'd also like to plan that in 3 months time I will drive interstate and my car should have no issues form between now and then.

I have had cars that have had issues and it's no fun driving around wondering if this will be the trip it will breaks down.

Well I am like if I get the call and I am on the road from Brissy to Darwin and in about an hour I am ready to go, I won't even pop the bonnet, but just go. but I know if it will need anything to be looked out for because I service the car well.

I knew people who plan 3 weeks in advance to go just from south Brissy to north Brissy. but I would come up from the Gold Coast see a mate in south bris and he is doing nothing, so I would go to the north bris and they are doing nothing worth doing, so then I would just shoot up to Bundaberg for a good night out and skip back for work on Monday and doing such was nothing to me at all that was taking it easy, work was f ing hard slog all day flat out going for it, I had a gut full by Friday and was looking for something I wanted to do.

[mick taylor]

Originally Posted by Falcon SXR8

Makes me laugh the amount of money people lose trading to the new shiny car then they whinge about how tough it is to make ends meat. Both parents working full time to pay for there lifestyle not realising life is passing them by

If I could not pay with my own cash I would not buy a new one and if I did not get discount then no way would I do the deal and I would try to sell the old one privately, but sometimes trade was real good but I got caught out once with a XG Falcon ute, the market had dropped at the time and most people had no idea just how much better the XG was over the XF, so a 1992 XF ute was selling for about the same as a 1993 XG ute.
So as soon as the XG came out I ordered one, as I hated the Holden VP Rubbish but I ordered the VS ute before they came out and when I traded that VS in I could not believe that deal I got when I bought the next New VS and the same with the VY was just magic.

[car10002]

what are other reasons

what are all your reasons

[Ben73]

Originally Posted by mick taylor

If I could not pay with my own cash I would not buy a new one

I don't mind finance, especially with modern rates being quite low. But if someone has $500 spare at the end of the week and they go and finance a car for $495 a week, then that's just asking for trouble. Live within your means. Paying interest on something that loses value is not the best financial thing to do, but you only live once. If you choose a new car that fits your income it's not bad having a new car with all modern features.

I know someone who got a 30k car on a 18% interest rate. That's crazy and I wouldn't support that.

[car10002]

Would inconvenience of not being able to go here there or work on projects because car costs money and you can’t leave it then come back to it if it’s a daily if you need the money for something else that week be why most get another car when warnings there not when it dies or more likely is it because you don’t want to be in a hurry to buy the next car.

One other example is a sso at a school had a vy holden and the alternator went they got that fixed then got another car

And also a aunt had a magna and the gearbox blew and they got that fixed then sold it, you often wonder wether they were thinking of another car and then they had that happen and wanted to get it going as cheap as they can or wether they found out more work was needed after they had that done or wether they got it fixed to buy some more time to work out what they want to do and then got lucky and found another car straight away

[mick taylor]

Originally Posted by Ben73

I don't mind finance, especially with modern rates being quite low. But if someone has $500 spare at the end of the week and they go and finance a car for $495 a week, then that's just asking for trouble. Live within your means. Paying interest on something that loses value is not the best financial thing to do, but you only live once. If you choose a new car that fits your income it's not bad having a new car with all modern features.

I know someone who got a 30k car on a 18% interest rate. That's crazy and I wouldn't support that.

I was in a trade were you had work or you had nothing or at times it was not worth working because such could cost you too much to go to work, when you truly worked it all out as to what I got that was truly my money to spend for myself.

It all comes down to what is it that you want to do or have to do.

One brother has a stupid girlfriend with no money, he said get your self a good cheap car, no she would not have that and got some loan 38% I think it is get rid of her I said, he said she will take him for half, see no wonder she does not give a toss, plenty of low life slags like that around nowadays living for the day sponging off what ever they can and don't have a cent to there name, but will tell you that you must be Politically Correct and not allowed to think for yourself.

[ebv8]

also there are those people who parents tell their kids what to get and when:

first shocker, 27y/o male lives at home (still sucking the teet) has $50k in the bank wants to buy a $16k 2012 toyota aurion TRD but his parents said no way you must buy new, so he bought a wrx for $42k using up most of his house deposit... i think mum wants him to stay at home like his older brother who was not aloud to leave and he is 29

second shocker, young single mum not working living at home and drives a 5y/o mazda 3, mum and dad said you need a newew safer car for the baby so bought a new Merc on finance

[car10002]

One other example is a sso at a school had a vy holden and the alternator went they got that fixed then got another car

And also a aunt in her 70s had a magna and the gearbox blew and they got that fixed then sold it, you often wonder wether they were thinking of another car and then they had that happen and wanted to get it going as cheap as they can or wether they found out more work was needed after they had that done or wether they got it fixed to buy some more time to work out what they want to do and then got lucky and found another car straight away.

What you’s think is likely reason those people did what they did

[stock1991]

It's personal preference. Everyone is different, people like the latest or later model they can afford for different reasons, some people want mechanical peace of mind with a newer car, other people see a new car as an upgrade. Sort of change is as good as holiday, new car is exciting.

[Junkyard-Dog]

A lot of young people get themselves into serious debt by getting car loans/personal loans and forking out on a new/near-new car for their first car purchase.

In general, many people get themselves into debt because they feel they have to constantly upgrade/update to keep up with the neighbours. I often wonder when I'm stopped in traffic, how many of the cars around me were purchased on finance and whether it was an ego purchase or not.

It's pretty easy to get finance these days. It's amazing to see how much my bank is willing to loan me on an unsecured personal loan. No wonder people dig themselves into financial holes...

I don't know, maybe I'm weird and going a bit off-topic here.

[Big_Daz]

I think as long as you don't overextend yourself and borrow way more than you can easily afford then financing a car is a no brainer...

My redline is on finance through the dealer.. The Interest rate is half what my bank was offering so why would I take my cash out of my investments where I am making money?? But junkyard-dog your right with regards to how much they where willing to lend out. I was drooling over a GTSR (non W-1) they had their as I've always wanted a HSV. I knew I couldn't afford the $120k odd on the road but the finance guy, who saw me drooling and had my Financials, said he could get me approved for that car... I was amazed that he would even suggest that to me (though I guess they are their to make commission after all). I thought, no wonder people who don't earn a lot of $$ get into massive holes buying new cars they realistically cant afford or stretches their pay packet...

[FTE217]

It sure is personal preference as quoted but then there is common sense.
All depends on your situation and your beliefs regards monetary value.
When a young fella I leased my first brand new car - I didn't over extend myself but by the end of lease and considering to buy it out after adding up my running costs, payments coupled by depreciation I never did it again.
Unless your term is long I can't see the point burning money for sake of driving around in a loss.
Since having gone into my own business years ago I saw where people error their first 5yrs of business.
Put everything on hock - unless your good at not over spending I can understand it but in many case's people are not good accountants and not living by their means.
I've lived with buying near new low k cars for my business for years.
Buy them outright for yes we've managed our money accordingly and built up the liquid as well paying our bills on time and investing in the business.
Oh its a tax right off I keep hearing, if your a large company I can understand but a small business or worse personal imo its high rent to pay - running costs - depreciation and you end up paying so much more than the car was worth brand new that is worth half 4yrs down the track.
You get some tax return but its still coming out of your pocket on a depreciating item in the first place.
After all those years in 2016 I asked my accountant (and broker) for a break down on 3-4yr lease on the Sprint just the 2nd car I've bought new, a keeper for me, by the time I did the sums end of lease and buy out the thing would have costed me over triple figures easily excl running costs !
I ended up just doing a DD to the dealer way out in front !
Its not a win win you guys can have leasing like a hole in the head unless your making $250k p/a and living by your means then you can afford p issing some liquid away imo.

[Fed]

Fully tax deductible lease, great, go and find a leasing company that charges the highest interest rates to get a bigger deduction.
The ATO doesn't give you any money they just don't tax the payments.

[XB GS 351 Coupe]

Originally Posted by Junkyard-Dog

A lot of young people get themselves into serious debt by getting car loans/personal loans and forking out on a new/near-new car for their first car purchase.

In general, many people get themselves into debt because they feel they have to constantly upgrade/update to keep up with the neighbours. I often wonder when I'm stopped in traffic, how many of the cars around me were purchased on finance and whether it was an ego purchase or not.

It's pretty easy to get finance these days. It's amazing to see how much my bank is willing to loan me on an unsecured personal loan. No wonder people dig themselves into financial holes...

I don't know, maybe I'm weird and going a bit off-topic here.

Agree with this 100%, getting a loan on a depreciating asset is just a double whammy.

Buy a car for 50K, get a loan and pay 150K to pay the car off, by the time you have paid it off it's worth 5K, so now you are 145K in the hole, the only one that made any money is the car dealer and the banks.

Then you can start all over and do it again

[RANGEREST]

Originally Posted by Fed

Fully tax deductible lease, great, go and find a leasing company that charges the highest interest rates to get a bigger deduction.
The ATO doesn't give you any money they just don't tax the payments.

God I hope you're not self employed....
Or an accountant

[Junkyard-Dog]

Originally Posted by XB GS 351 Coupe

Agree with this 100%, getting a loan on a depreciating asset is just a double whammy.

Buy a car for 50K, get a loan and pay 150K to pay the car off, by the time you have paid it off it's worth 5K, so now you are 145K in the hole, the only one that made any money is the car dealer and the banks.

Then you can start all over and do it again

A guy I used to be friends with bought a VE Calais V6 on a personal loan, he paid about 30k for the car (too much) and by the time he's paid the loan off he will be 50k in on a car that might be worth 5k at the end of the loan period. He got pretty mad when I did the sums tbh.

[.:4:.]

Originally Posted by Junkyard-Dog

A guy I used to be friends with bought a VE Calais V6 on a personal loan, he paid about 30k for the car (too much) and by the time he's paid the loan off he will be 50k in on a car that might be worth 5k at the end of the loan period. He got pretty mad when I did the sums tbh.

Yeah, but it's why you shop around for finance. It's the cost of money really. When I bought my car it was 2 years old and I paid 20k for it. I paid out the loan early and it still cost me 27k in total. But, it was the car I wanted and I had an intended use that my old car couldn't fulfill. I've never had finance on the boat I have, so a tow car is kind of necessary. Granted I've had the car for 8 years and it's been a solid unit, I bought with the intention to keep it until it's not financially viable and so far its racked up a few kays but never had any issues that have been unrelated to maintenance or expensive.

[Ben73]

Originally Posted by XB GS 351 Coupe

Buy a car for 50K, get a loan and pay 150K to pay the car off, by the time you have paid it off it's worth 5K, so now you are 145K in the hole, the only one that made any money is the car dealer and the banks.

Jesus, remind me to never visit your financial institution.
25% interest rate over 12 years? Well I'm sure there is someone somewhere would agree to that.

How much do you plan on paying in interest repayments on your house? $2.5 million in interest for a $250,000 loan?

Originally Posted by Junkyard-Dog

30k for the car (too much) and by the time he's paid the loan off he will be 50k in on a car t

I need to get into the business of financing. How do people manage to get such horrible loans.
I would hope these examples are the exception, not the rule. I have never had anyone admit to me about getting such a bad deal.

[Junkyard-Dog]

I don't know, I've never taken a loan out for a car. I prefer to invest and acquire assets that will earn me money.

Having said that, getting finance from the used car yard you're buying the car from doesn't seem like the best idea to me. That was the case with my example.