How Many New Cars Do People Actually Buy?

[skadizzle]

Depends on what is out. I’m 21 and this is my 4th new vehicle. Never been upside down or had negative equity at all. Get a car I like, have it for a while, test out the market if there is a new vehicle that I like more and go from there. Can’t find the perfect one if I don’t test em all out!

What it is awhile for you? You're only 21 and this is your 4th car. One..two years?

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[Bret Maverick]

Where in FL are you? My dad has been looking for a Ranger unless its already promised to the neighbor.

I'm in the panhandle, Fort Walton Beach. My neighbor says he wants it for sure, but you never know.

 

[Davis]

So do people actually go upside down on loans, roll them into a new vehicle, have monthly payments of $500 or more or is everyone else like me and saving up to pay for the car without having to pay interest? Or take advantage of the 0% financing?

What I don't understand is when people go out and buy a new $70k F-150 or Superduty and roll their current vehicle into the loan and it turns into a mortgage. I work with a guy that has a $1500/month payment due to always "upgrading".

 

[skadizzle]

I'm in the panhandle, Fort Walton Beach. My neighbor says he wants it for sure, but you never know.

Okay. If he ends up not taking it, you have another buyer already

 

[Bret Maverick]

Okay. If he ends up not taking it, you have another buyer already

Will let you know if he doesn't buy it. My build date is week of 12/13 so I would expect delivery by late Dec. to mid Jan. or thereabouts.

 

[FirstFord]

I've bought 5 used, and
7 new in my 41 years of car ownership.

Keep them 10 years or more (except for the Jetta TDI that I unloaded in a year due to two exploded fuel pumps). Generally pay cash or big down payment and pay off balance in a year or less.

Motorcycles I've bought two used and one new. Though one used bike had only 2200 miles on it.

Generally I agree that buying used is buying someone else's problems. And keeping a car for a long time makes the early depreciation moot. For those who feel a need for frequent vehicle changes, I'd agree that buying low mileage off-lease cars would be the way to go.

 

[NewBernWolf]

I see posts of people trading in 2020 and 2021 models for their Maverick. Or planning to sell them. And yes, I know the used market had absurd prices but that seems to have settled a little so maybe that's not as big an incentive now? Anyhow, how often do you buy a brand new car?

I ask because I haven't bought brand new in 27 years. Always slightly used to let someone else take the major depreciation hit. (I know that has temporarily changed over the last almost 2 years.) But the Maverick is so cool, so versatile and priced so cheaply, I had to order one. (It's great when kids graduate college , get employed and get off the payroll.)

So do people actually go upside down on loans, roll them into a new vehicle, have monthly payments of $500 or more or is everyone else like me and saving up to pay for the car without having to pay interest? Or take advantage of the 0% financing?

Long, rambling question(s). Hope that makes sense.

Most of the cars I've bought over the last 40 years have been new. I've never actually 'traded' in a vehicle on which I've still owed money, and I've never had a $500 monthly car payment, but I don't judge people who do that.

Nearly all of us with disposable income have something we spend money on that someone else finds ridiculous.

For me, where cars are concerned, I pay off my vehicle in 3 to 4 years, drive it for a couple more years while continuing to move that car payment amount into an interest bearing account, then sell or trade in my 6 to 7 year old vehicle, and buy something else. It's my money and my joy so I can do what I want with it. Hopefully, so can you.

 

[TSAINTS1115]

This is my first new vehicle since my '06 Mustang. Being that my daily commute was 120 miles rt I always found myself a work car. Sometimes they were a few years old used car, some were $1000 beaters that were still mechanically sound that I would drive to their grave and throw away. Newness never bothered my as I have my hot rods to play with and the newest one of those is 52 years old.

 

[BlueXL_73]

I'm trading in a 2020 Corolla, but there is no way I would even consider doing that if this wasn't a completely unique vehicle that is PRECISELY what I have wanted for years, AND the only time in history that a car is worth more than I owe on it.

 

[AUsomTiger]

The Maverick will be my fifth new car of 2021 or possibly 1st/2nd of 2022 depending on arrival dates.

2021 C8 - sold
2021 Challenger - Son's car
2021 Mach 1 - sold
2021 Mach 1 - replacement
2022 Maverick

This has been an odd year for me. It was 2015 the last time I bought a new car.

 

[sjJohnny]

My "second" in 43 years.

My "second' in 53 years (not counting a couple of cars the ex bought). Before buying my '00 Tacoma, my record was never owning a car newer that 1970, nor paying more than 1K. I now have an order in for both the Maverick and a Bronco and think I might try to keep them both, at least for awhile. And the Tacoma too (for neighbors and friends to use).

 

[tebowed]

i buy a new car, on average, every 11 months, and have every year since 2003


dont even ask about my motorcycle habit.

This is basically me, I think I've purchased probably 9-12 new cars, never had negative equity, dealers hate working with me.

This new market with crazy car values is interesting though, going to leave my current car with +11k thanks to Carvana.

 

[huunvubu]

My philosophy is "Cradle to Grave" as in buy new and keep for a very very long time. I don't want to buy used as who knows how abused/maintained it was by the previous owner(s). By doing this "Cradle to Grave" depreciation really doesn't matter to me as we keep our vehicles twelve or more years. Also buying new gets you the latest safety and technology upgrades. Having a warranty for 3 years is also a plus.

My new vehicles purchased since 1987:

1987 Mazda 626: Had it for 11 years and traded it in for a new
1998 Ford Ranger XLT SuperCab: which I had for 16 years 2 months which I traded in for a new
2015 Honda Fit Ex: Had it for 7 years 1 month and sold for $16,523 for down payment on my new
2022 Ford Maverick XLT Hybrid which will only cost $9545.21 OTD because of the above sale

Wife's new (and one used) vehicles purchased/obtained since 1994

1994 Ford Taurus: Had it for 9 years and sold it privately then obtaining

2000 Cadillac Catera obtained her mom's Cadillac Catera upon her passing as a way of remembering her mom on a daily basis. Only 5,000 mileage and well maintained. Kept for 5 years 11 months and traded in for new

2009 Honda CR-V Ex: Currently still own with 12 years 11 months as of now

So our average length of ownership of the five new vehicles is 11 years 3 months.

Selling the Fit prematurely skewed the average slightly downward and it was sold early because of the Hybrid Maverick that combines the best of the Fit's MPG ratings and the Ford Ranger usability. The Maverick Hybrid is really the best of both worlds for me.

I have kept records of total costs for all our vehicles.

The costs tracked are: Fees, Gas, Insurance, Maintenance, Purchase, Repairs, Wash
In other words absolutely all expenses of vehicle ownership. The purchase cost also includes interest charged if a loan was taken out. In our case only the 1994 Ford Taurus had a loan all others were paid fully at time of purchase.

The following shows the monthly cost (over the lifetime) for each of the above mentioned vehicles:

$255: 1987 Mazda 626: 11 years
$187: 1998 Ford Ranger XLT SuperCab: 16 years 2 months
$164: 2015 Honda Fit Ex: 7 years 1 month
$368: 1994 Ford Taurus: 9 years
$356: 2000 Cadillac Catera: 5 years 11 months
$288: 2009 Honda CR-V Ex: 12 years 11 months and counting

Interesting details from the list: Of the two previous Ford vehicles the Taurus is the most expensive at $368 monthly because of the many many repairs needed whereas the Ford Ranger at $187 monthly reflects the fantastic reliability it had. The reason I let it go was the poor MPG with the V6 4.0L engine thus the Fit purchase which now becomes the Hybrid Maverick.

The best monthly cost is the Honda Fit because of the very good MPG numbers and the $16,523 I got from selling it to Carvanna. The MSRP when purchased was $19,025.

 

[notfast]

Always slightly used to let someone else take the major depreciation hit.

Same here. My favorite used cars to buy are lease returns. One private owner (no rental/fleet use), usually still have lots of powertrain and a little bumper to bumper warranty left, and they are usually dealer-maintained and not modified.

I used to be a "keep it 'til the wheels fall off" person, but not anymore. I generally buy a vehicle that's 2-3 years old and keep it for 3-6 years. Basically, I sell it before it either begins having major mechanical issues and/or it's worth so little that it lands in CarMax's Under $10,000 lot.

I'm a former mechanic. For me, repairing mechanical issues isn't the problem. The inconvenience of random breakdowns is what I get annoyed with. Sure, replacing a starter isn't too expensive for me to do myself, but hopping in the truck while on a trip where I have to be somewhere and getting a no-crank-no-start is not fun.

But the Maverick is so cool, so versatile and priced so cheaply, I had to order one.

I try not to buy cars until the mid-cycle refresh, especially a Ford (and I'm a Ford person!) I was going to break that and order a vehicle (first time I'd do so) if a hybrid AWD was available at launch.

So do people actually go upside down on loans, roll them into a new vehicle, have monthly payments of $500 or more

Funny you mention that. A coworker of mine bought a BMW M5 in the $60k range. He hopes to sell it two years from now for $40k-ish. I was like, so you're cool spending $10,000/yr on depreciation just to own that car? That's like a whole Maverick or Corolla just flying away. To which he said yes.

or is everyone else like me and saving up to pay for the car without having to pay interest? Or take advantage of the 0% financing?

For the two brand new cars I bought, I got 0-2% interest for 36 months. I could've paid cash up front, but to heck with it...if interest is less than inflation (or zero in this case) and I can pay the car off at a rate that keeps me in the black (AKA, owing less than the vehicle is worth) keeping that cash liquid and borrowing someone else's money for cheap or free is a better idea than tying it up into a vehicle.

 

[carbonmav05]

What it is awhile for you? You're only 21 and this is your 4th car. One..two years?

Haha I guess so. Depends on what’s coming out and if anything peaks my interest more than what I currently drive.

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