Reply to Buying a used car in 2024 is stupid

Forum Index » Cars and Transportation

Reply to "Buying a used car in 2024 is stupid"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous]Oh, this is interesting. This is a completely new mentality than the one that was pounded into our heads our entire lives. We have always been told not to buy new cars.[/quote]

Here's a good thought exercise.

A family in Maryland needs a new minivan, they have $10K for a downpayment. They want a nicer trimline, because they've been suffering with a crappy old SUV for the last 7 years.

In 2019, they could get a $40K minivan at 1% interest for 60 months. Their monthly payment (including all taxes and fees) would be $512.81

In 2024? They need a minivan and have to keep the monthly payment under $525. The interest rates are now 8% for 60 months, even with their $10K downpayment. The max they can afford to spend is $35K to keep their payment affordable under $525K. But the new minivans with a nicer trimline are still over $40K.

What to do? Either (1) get the bare bones trimline (and likely sit on a waitlist for that since car makers are prioritizing pricer trimlines for manufacturing) or (2) let's look for a used van, with under 40K miles. Going with option (2) puts you squarely in the $34K-38K price range depending on the mileage. And that's what you can afford.

If you had another $10K in cash, you could get a brand new $45K car and afford the financing. But you can't and you're stuck paying elevated prices for a used minivan with 40K miles.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics