I usually have my cars for a good period of time,that is if they are not always popping up with problems.ive had a blazer for 11 years til the engine froze up but i got my use out of that one for sure.i have my toyota 4runner 2007 now of course 7 years old but this is the best made auto i have ever owned.i have done nothing but plain maintenance on it and thats it.the thing runs like a bear and i for one take very good care of my cars.i don't neglect anything with them and that is why they last me so long.i don't like payments so i make sure the upkeep is solid on my part and then ill have less worries.lots of people don't like to buy new cars but id rather buy new than take somebody else's problems.
i often get asked by friends of mine say,hey when are you selling that to me,and i respond,never cause i know you won't take care of it like i do,..hahaha.....but really,if you take care of your auto it can last you a long time.
i often get asked by friends of mine say,hey when are you selling that to me,and i respond,never cause i know you won't take care of it like i do,..hahaha.....but really,if you take care of your auto it can last you a long time.
if you are buying cars and financing them with loans, trading them every 2-3 years can cost you money because you are just paying interest mainly. then when you trade, you owe more on the loan compared to the value of your car. if you put a lot down, that won't happen, but you are out that money. if you want a new car every 2-3 yrs and can stay under the mileage requirements, leasing is a much better option. your payments are lower, you are always under warranty, and you never take the chance of being in negative equity, which happens to many people who buy and trade quickly.
I'll have more time tomorrow to try and run the numbers. Only thing im not sure is how to estimate maint and repairs after year 5. I've always driven mine until the wheels fall off. The other persons point was that auto rates are so low that you're only paying maybe $500 in interest every year. Since they initially had equity on the trade in it serves as a down payment which reduces the monthly payment.
I own a fairly large development/construction company. In the past I would have the company buy my automobile and would deprecated it. About 7 years ago I hired an accountant on staff. He instructed me to buy personally and have the company lease it back. I have always paid my cars off in 3 years, so the equity is not a problem. The first time I went this route I got around 25k on the trade. Usually buy a truck, so the purchase price is around 50k so I am essentially borrow 20-30k. Max the payments over 6 years. Payments run between 300-400 per month. I lease the auto back for 800-10000 per month, so I basically double + my payment. Been through a couple audits and never has this been an issue, so I assume it's legit. I did a JV with a guy that owns a couple dealerships on some retail developments. He gives me a great deal, but always told me to trade before the standard 36k mile warranty stuff expires, which they can sale as almost new with manufactor warranty. This may not be a sound way to do automobile transactions but it seems to work well for my situation. Like everything else it's probably all relative.
