Motivation for Buying a vehicle
 

Had a good discussion with some gear head Friends of mine regarding why people buy what they buy. Is it for status? A specific purpose? out of necessity? What say you?

Yes. It's different for different people.

All of the above, depending on what's going on at the time. There are as many motives as there are colors. Almost infinite.

I have a 4 wheel drive pick-up........cuz i need one.
I have a 4 wheel drive car......cuz i need one.
I have a 911..........just cuz.

I have an El Camino to haul stuff.

I have a 911 to haul ass.

Yup, I bought my RX-8 with the options it has because it was the car car to have for the class I wanted to run in.
Bought the truck to tow car.

I get the question. The thing is society has burned into the majority of car buyers brains that they need new cars every few years to "keep the peace of mind" and to "keep up with the Jones" So for many buying a car is out of need, WHICH KIND OF CAR is more about status and how they want to be perceived. People buy cars for many reasons, but usually the wealthiest of customers lease. Financially speaking a lease is far more cost effective than taking the hit for 100% of the depreciation.

I am a CPA and a former car salesman and sales manager (yes that jerk who sat in the back office scribbling on scrap paper how much you can buy the car for) and this is what I have learned about this: After owning numerous new cars over the past 10 years and decent used cars before that and after number crunching and forecasting, new cars are the biggest waste of money. I have a $32K minivan...MINVAN for $32K!!!! C'mon.

So I told my wife she can continue to have new cars if she wants. Me? I'm going back to an old philoshpy I used when buying all my cars. I'm not spending more than $10-12k on my next car. The last 4 cars I have bought were all over $30K and they really are not that impressive to drive or look at. There are way too many cool cars out there, Like a 2000-2003 Audi A8/S8 or an older AMG Benz or M5. I'm done spending tens of thousands upon thousands for a car.

So as an enthusiast for about $12K for a car like an Audi S6 or S6, probably somewhere around $3k in maint. for 3 to 4 years plus the $4k I spent on my 944 I can have two really great cars in the garage all for under $20k.

i'm done. i have a few "wants" in cars..but at this point, my motivation for buying is: i hate walking.

i am gonna drive what i have until they implode.

I don't understand spending the money for a new car. I have not had a car payment in this millennium. I can keep my older cars running just fine way cheaper, with zero depreciation.

Glen,

Wasn't your wife's Infiniti purchased new?

E

I am 48 and to date have purchased (leased actually) 2 new cars. I will never ever buy a new car again. Used cars I buy are typically 2 years old with no more than 30K miles. I picked up my Audi TT with 30K miles for $17K a few years ago. My neighbors think I'm nuts for buying used cars. YMMV.

There isn't a new car made that I would want to buy. I will keep driving my old stuff until it is no longer drivable. And even then, I will look for a used vehicle. New cars have become to complicated. I appreciated the simplicity of older vehicles. New vehicles just have more and more "systems" to malfunction.

Also, I haven't had a car payment since 1997. I like it that way.

HA! Looks like I'm not the only who feels that way, glad to hear it. My family thinks I'm crazy, they all buy new cars. My dad used to get a new car once a year back int he 80's, thats nuts.

Yep.

She had never in her life owned a new car. She really wanted a NEW car for a change. She had nice used cars, but there was always some stupid thing the PO had done to the car. She wanted a car with perfect paint, interior wheels so that meant a new car. She just turned 12,000 miles on it and it looks like new.

She was willing to pay the cost of a new car, and she did.

I buy cars to keep up my image.




My white trash image, that is.

I have not bought a new car since 1979. I won't waste my good money on bad. 1 or 2 year old cars are just fine.

So, how do you like your Mustang?

I go through this exercise about oh, every 3 years. The tricky zone comes for those of us who want something newer, with warranty in a higher end car. MBZ, BMW, etc.

If you go into a dealership and spot a beauty of let's say an X5, with 20,000 miles and a nice bumper to bumper for a few years but don't want to write a check for $30, 40, 50k you are stuck. The financing for the used car inevitably winds up significantly more expensive then just leasing a new car. Plus by the time the car is paid up, it is no longer covered and is now a pre-used car that has been doubly used by the 2nd buyer. You tend to be upside down till the very end, when it is worth nothing...and is now bleeding you dry on maintenance.

I agree that a $10-15K used higher end car is at the bottom of of the cycle, but comes with significant maintenance risks particularly with these marquis. I was just talking to a BMW salesman the other day and all of his clients (even very high net worth) are taking the new car finance deals. The rates are very low and you are not tying your cash up with a rapidly depreciating asset....

Just my thought as I go through the process yet again...
Adam

My Fox body 'stang is sweeet! Thanks for asking.

$3k for maintenance / repairs for three or four years of driving a high end car would be asking for lottery winner type luck ,IMO.