The Incredible Shrinking Incomes of Young Americans

[Tamas]

I see car buying as risky either way.

A new one is a fortune and a horrible investment in many ways but you know what you are buying and you have a guarantee on it.

A used one is cheaper but a big risk in terms of hidden faults and unkown level of wear and tear - a ticking time bomb for unforeseen expenditure

[Malthus]

Massive luxury to buy a new car?

Uh, yes? You can get the same functionality by buying a used car, for a fraction of the price.

[Malthus]

I got a ridiculously cheap car. I'm not suggesting everyone can go that low.
But if you can't afford a £30,000 car you can't afford a £30,000 car. I don't know anyone who has ever gotten a loan to get a car. Most people I know saved and bought something in their price range (usually second hand).

In NA, car loans (and car leases) are much more common, I think.

However, I never used either. I always bought used cars, for cash (until my last car - when I was able to buy a new car, for cash.  ).

It always struck me as a massive luxury to buy a new car, and most unwise if money was tight. However, it is a type of unwisdom, for whatever reason, dear to many of us in NA.

That depends. My new car is 350$/month and comes with a warranty. It is much easier to budget that way than hope my old car doesn't break anything this month because I do not have 2000$ to fix it.

I guess I was lucky then. I never had to face huge car repair bills, though I owned only used cars for twenty years.

[garbon]

Massive luxury to buy a new car?

Uh, yes? You can get the same functionality by buying a used car, for a fraction of the price.

I think a new car is less likely to break down (unless, of course, one buys a lemon).

Also is the definition of luxury any time you buy an item when you could have bought a cheaper version?

[Richard Hakluyt]

Mono downgrades Malthus from AA+ to B- .

[Caliga]

a ticking time bomb

It's a car, not a 747.

[Barrister]

I got a ridiculously cheap car. I'm not suggesting everyone can go that low.
But if you can't afford a £30,000 car you can't afford a £30,000 car. I don't know anyone who has ever gotten a loan to get a car. Most people I know saved and bought something in their price range (usually second hand).

In NA, car loans (and car leases) are much more common, I think.

However, I never used either. I always bought used cars, for cash (until my last car - when I was able to buy a new car, for cash.  ).

It always struck me as a massive luxury to buy a new car, and most unwise if money was tight. However, it is a type of unwisdom, for whatever reason, dear to many of us in NA.

That depends. My new car is 350$/month and comes with a warranty. It is much easier to budget that way than hope my old car doesn't break anything this month because I do not have 2000$ to fix it.

I guess I was lucky then. I never had to face huge car repair bills, though I owned only used cars for twenty years.

My first car was a used BMW.  Had to go to the mechanic every couple months, and had to sell it about a year later at a huge loss because I couldn't afford the repairs.

I then had a used Taurus which was good until written off 6 months later in an accident (I was rear ended).

After that I went through four new vehicles and was generally pretty pleased with that route, as long as you kept them for a long period.

We just purchased a used Honda van - my first used vehicle since '96.  We'll see how it goes.

[Grey Fox]

I got a ridiculously cheap car. I'm not suggesting everyone can go that low.
But if you can't afford a £30,000 car you can't afford a £30,000 car. I don't know anyone who has ever gotten a loan to get a car. Most people I know saved and bought something in their price range (usually second hand).

In NA, car loans (and car leases) are much more common, I think.

However, I never used either. I always bought used cars, for cash (until my last car - when I was able to buy a new car, for cash.  ).

It always struck me as a massive luxury to buy a new car, and most unwise if money was tight. However, it is a type of unwisdom, for whatever reason, dear to many of us in NA.

That depends. My new car is 350$/month and comes with a warranty. It is much easier to budget that way than hope my old car doesn't break anything this month because I do not have 2000$ to fix it.

I guess I was lucky then. I never had to face huge car repair bills, though I owned only used cars for twenty years.

Yes and also you have to factor that I am also going to take out a loan on the used car just for less time.

[Richard Hakluyt]

We are on only our second car at the Hakluyt household, bought new on both occasions and used for years and years.

[Malthus]

Massive luxury to buy a new car?

Uh, yes? You can get the same functionality by buying a used car, for a fraction of the price.

I think a new car is less likely to break down (unless, of course, one buys a lemon).

Also is the definition of luxury any time you buy an item when you could have bought a cheaper version?

Wasn't my experience. Of course, I wasn't buying bottom-end beaters, either. I usually bought them with some warranty time left. 

In my opinion, buying a new car is a "luxury", because you can get more or less the exact same thing for a fraction of the price, with a bit of looking around - and the price difference isn't small: it can be thousands of dollars, just in depreciation when it is driven off the lot. If you have that money, go for it; if you don't, it strikes me as very silly to go into debt for it.

[Malthus]

Mono downgrades Malthus from AA+ to B- .

I can live with that. 

[Eddie Teach]

I have never bought a new car, but I would if I made Malthus-type money. Or even Mono-type money.

[Caliga]

I bought one once but probably wouldn't do it again.  The instant depreciation aspect of doing it just bothers me too much.

[Syt]

I bought one once but probably wouldn't do it again.  The instant depreciation aspect of doing it just bothers me too much.

We used to say, "the most expensive drive you'll ever make with your new car is the one off the dealership's lot."

[Malthus]

I bought one once but probably wouldn't do it again.  The instant depreciation aspect of doing it just bothers me too much.

I agree with the sentiment, but I'd probably buy new again - simply because I don't have the time or patience I once had, to thoroughly investigate individual cars.

I do, however, think it is very deeply engrained in people that they need a new car, that buying used is likely to end in disaster (or is a sign of low status). Then they wonder why they are in debt.