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Maybe I'm too much of a car guy, but depreciation and resale value has not once entered into my decision process for buying a car.
I either think it's cool and want it for that or I need a box to take me where I need to go.
My cars aren't investments.
I care more about them lasting than retaining value.
Moxie is Iowa rusty, but she runs. That's enough reason to keep her.
When I need or want something, resale value is not a part of the equation.
ReplyDeleteI have scrapped more cars than I have sold. Out of the last four, one was totaled, one grenaded a transaxle, one was just plain worn out, and one was sold. I expect only one of our current fleet to have any resale value
ReplyDeleteI think I've traded one functioning vehicle during a car sale. Mostly it's 'take the hulk off my hands' rather than resale value.
ReplyDeleteThen again, I tend to drive the vehicles close to or past 'end of life' times. The last one, a GMC Safari, I think I got rid of it maybe a day or a week before it would have died big time on me.
The little red Coloado I have is also "Iowa rusty", but it also runs and I keep it mostly because of sentimental value. My dad gave it to me shortly before his passing. It doesn't have enough power for what I really need a truck for most of the time (pulling a car hauler trailer), but it is handy for other things and has been convenient to have another "beater" vehicle around, especially one that gets relatively good gas mileage.
ReplyDeleteI pretty much always figure I'm going to "lose" money on anything I drive because I drive everything hard and generally by the time I'm done with it, it's pretty much used up. I haven't sold many cars over the years, and the ones I have sold I owned for a long period of time, put a lot of miles on and put a fair amount of money into in maintenance, etc. But expecting you can drive a vehicle long term for free or even expect to re-sell for more than what you have in it is never really a realistic expectation. Cars are an asset that basically is going to depreciate.
-swj