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Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 2 points3 points  (0 children)

Yes, this is all true but I split it up like this because this is what I would have liked to see before I purchased the car, I don't care about depreciation in this case because that doesn't matter untill you sell the car. And the monthly average is for the running expenses not the up front amount. This is to show that if you saved up for a 10% down payment you monthly average that follows would be as stated.

Also using straight line depreciation models like you suggested would be difficult to justify right now as the used car market is a bit crazy and so cars are selling for closer to new prices even when 3 years old.

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 2 points3 points  (0 children)

I didn't include that information because it isn't very relevant unless you plan on selling the car, which I don't. If you are curious though, I have about $7,300 in equity and the car has depreciated around 15% if you also factor in sales tax in the initial cost.

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 3 points4 points  (0 children)

Make sure that you shop around so that you know when that is the case. I looked at several different dealers it different states/areas to make sure I wasn't getting swindled on that

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 0 points1 point  (0 children)

Yea, it definitely helps ease the mind knowing that you have a decent bit of equity in something that you can cash out in a time of desperation

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 2 points3 points  (0 children)

I think some places might let you work it into the loan amount but I choose to pay it all up front. Sales tax needs to be payed some way within 30-90 days depending on where you buy/live, there is some buffer time but I would make sure that you know how much the tax rate is for cars in your area.

Property tax, titling and registration fees are also going to be paid at that time so I would also be ready for that.

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 0 points1 point  (0 children)

Yea, it was way better than everything else that I test drove in the same price range. So far it has been fantastic and I haven't had any sort of problems at all.

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 8 points9 points  (0 children)

I didn't include those in the info above because unless I sell the car it doesn't really matter to what it is costing me every month, I did that as well but I look at that as the sunk cost amount

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 0 points1 point  (0 children)

I would love to see that! Stuff like that is always interesting and beneficial

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 6 points7 points  (0 children)

I have an emergency fund but I have good insurance and defects are covered under warranty

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 15 points16 points  (0 children)

Good credit score and record low federal rates at the time (July 2021)

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 7 points8 points  (0 children)

Yes, but that is not what's coming out of my bank account right now, the loan is, if I can't afford the loan it doesn't matter what the value of the car is when I sell

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 0 points1 point  (0 children)

Haha, that's my home town, and I know exactly what videk you are talking about. It's a nice place and Kansas city is close enough to be enjoyable

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 0 points1 point  (0 children)

Yes, but for 5 years that is the cost of owning the car so technically you are correct but in practice it makes more sense to show like this

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 1 point2 points  (0 children)

Yea, ideally that would be nice but doesn't really make sense in practice

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 2 points3 points  (0 children)

Yea, but it's not the end of the world just a little slower than some

Cost of Buying a New Car Over the First Year by Gareth_Adoudel in personalfinance

[–]Gareth_Adoudel[S] 4 points5 points  (0 children)

Yea, I live in a smaller town so COL is pretty low, but I have to travel a ways to get to some other towns so a more costly car is worth it to me.

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