The Incredible Shrinking Incomes of Young Americans

[Syt]

In Germany we used to have "Jahreswagen," Zanza can say if they still exist.

Employees of manufacturers would get rebates on new cars of their employers but couldn't sell them for a year (they'd have the option of a new car every year). Some of them just put it in a garage or accrued only minimal mileage and sold it after a year with a mark up, but still cheaper than a new one.

[The Larch]

When I went to buy my current car (a second hand Golf, but I'd say it's more a "first hand and a half" car, as it belonged to the fleet of replacement cars of an insurance company for barely a year) at the dealership I had every intention of paying cash for it (it was an effort but with some loaned money from my parents I could do it). They bent over backwards (doubled the warranty, which for an used car is important IMO) to get me to agree to finance half of it through their loan company, which I finally did.

[crazy canuck]

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 it depends.  Since I started working as a lawyer I have always bought new vehicles.  I have bought a grand total of two for my own use over that period of time and I am still on my second vehicle.  Both vehicles were purchased with interest free loans.  With the benefit of free financing, a full warranty period and the full life of the vehicle available to me I think I am actually in a better position than the person who buys a used vehicle.  I get many more years of dependable use without the risk that I will incur expensive repairs soon after purchasing.

But in general I don't think people keep their new cars as long as I do.  The people who are leasing or purchasing new vehicles more often are definitely paying a significant premium for what is essentially luxury and prestige.

[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 it depends.  Since I started working as a lawyer I have always bought new vehicles.  I have bought a grand total of two for my own use over that period of time and I am still on my second vehicle.  Both vehicles were purchased with interest free loans.  With the benefit of free financing, a full warranty period and the full life of the vehicle available to me I think I am actually in a better position than the person who buys a used vehicle.  I get many more years of dependable use without the risk that I will incur expensive repairs soon after purchasing.

But in general I don't think people keep their new cars as long as I do.  The people who are leasing or purchasing new vehicles more often are definitely paying a significant premium for what is essentially luxury and prestige.

Highlighted for emphasis. 

Sure, buying new cars *can* be a part of a financially-sensible strategy - if you have the money already (or the credit rating) to get good terms, *and* intend to own the car for years and years. Hell, I use that strategy myself, right now. My last car was a new car.

Once again, I will point out that it is possible to purchase a used car within its manufacturer's warranty period [though you definitely want to avoid shady aftermarket warranty offers that offer coverage apparently based on the Rules of "Fizzbin" from Star Trek  ]. I dunno how to rate the value of free financing against the value of the instant depreciation, but since I always paid upfront in cash financing wasn't a big deal for me.

[Valmy]

And this is why I am in favor of the multi-generational set up. You need a good team to get by these days and stay out of poverty.

[crazy canuck]

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 it depends.  Since I started working as a lawyer I have always bought new vehicles.  I have bought a grand total of two for my own use over that period of time and I am still on my second vehicle.  Both vehicles were purchased with interest free loans.  With the benefit of free financing, a full warranty period and the full life of the vehicle available to me I think I am actually in a better position than the person who buys a used vehicle.  I get many more years of dependable use without the risk that I will incur expensive repairs soon after purchasing.

But in general I don't think people keep their new cars as long as I do.  The people who are leasing or purchasing new vehicles more often are definitely paying a significant premium for what is essentially luxury and prestige.

Highlighted for emphasis. 

Sure, buying new cars *can* be a part of a financially-sensible strategy - if you have the money already (or the credit rating) to get good terms, *and* intend to own the car for years and years. Hell, I use that strategy myself, right now. My last car was a new car.

Ok, so you are agreeing with me that when I said "it depends" I was correct.  Thank you.

By the way, it is not only lawyers who can buy a new car, interest free, and drive it for the life of the vehicle. 

[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 it depends.  Since I started working as a lawyer I have always bought new vehicles.  I have bought a grand total of two for my own use over that period of time and I am still on my second vehicle.  Both vehicles were purchased with interest free loans.  With the benefit of free financing, a full warranty period and the full life of the vehicle available to me I think I am actually in a better position than the person who buys a used vehicle.  I get many more years of dependable use without the risk that I will incur expensive repairs soon after purchasing.

But in general I don't think people keep their new cars as long as I do.  The people who are leasing or purchasing new vehicles more often are definitely paying a significant premium for what is essentially luxury and prestige.

Highlighted for emphasis. 

Sure, buying new cars *can* be a part of a financially-sensible strategy - if you have the money already (or the credit rating) to get good terms, *and* intend to own the car for years and years. Hell, I use that strategy myself, right now. My last car was a new car.

Ok, so you are agreeing with me that when I said "it depends" I was correct.  Thank you.

By the way, it is not only lawyers who can buy a new car, interest free, and drive it for the life of the vehicle. 

Uh, yes? 

[crazy canuck]

Excellent. 

[Valmy]

You sure put Malthus in his place.

[DGuller]

Massive luxury to buy a new car?

Malthus is a tad too conservative with money.

[crazy canuck]

You sure put Malthus in his place.

Is that what I was doing Valmy?  Do you consider this a competition? 

[mongers]

Just had a quick tot-up and I think I've spent a net USD 2,000 on cars. 

[Eddie Teach]

Malthus is a tad too conservative with money.

[Barrister]

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 it depends.  Since I started working as a lawyer I have always bought new vehicles.  I have bought a grand total of two for my own use over that period of time and I am still on my second vehicle.  Both vehicles were purchased with interest free loans.  With the benefit of free financing, a full warranty period and the full life of the vehicle available to me I think I am actually in a better position than the person who buys a used vehicle.  I get many more years of dependable use without the risk that I will incur expensive repairs soon after purchasing.

But in general I don't think people keep their new cars as long as I do.  The people who are leasing or purchasing new vehicles more often are definitely paying a significant premium for what is essentially luxury and prestige.

Highlighted for emphasis. 

Sure, buying new cars *can* be a part of a financially-sensible strategy - if you have the money already (or the credit rating) to get good terms, *and* intend to own the car for years and years. Hell, I use that strategy myself, right now. My last car was a new car.

Once again, I will point out that it is possible to purchase a used car within its manufacturer's warranty period [though you definitely want to avoid shady aftermarket warranty offers that offer coverage apparently based on the Rules of "Fizzbin" from Star Trek  ]. I dunno how to rate the value of free financing against the value of the instant depreciation, but since I always paid upfront in cash financing wasn't a big deal for me.

Fizzbin?!?

If you're going to use a nerd reference, at least get it close to right.  The Star Trek race was the Ferengi, which would have been good enough, but for full marks it is the Rules of Acquisition.

[Tamas]

The one used car we had in my family served us faithfully for many years. After we spent the buting price on repairs shortly after purchase. Still was a decent deal though, to be fair