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Wondering if you ran the numbers on leasing a vehicle for 24 months as others have assumed from your post was your original intention? Two years is not a very long time to drive a cool car!
The other option is to buy a new car outright and then sell it yourself after a period of about 2 years since that might be the best time for the resale value and help with registration fees, etc.
Otherwise, your budget price is probably way too low and you will be disappointed and in the red after your first new exciting ride.
Haha - and doesn't time fly even faster, the older you get? Two years in your 50's is like a year in your 20's.
Btw - the two year ownership period may indeed be much cheaper given taxes/fees are only paid once every two years and depreciation is typically less in year two.
I’m guessing my max of ~$8500/year could be trimmed closer to $5,000/year with a 2 year ownership period. For example a $40k car being resold for $30k two years later.
Btw - the two year ownership period may indeed be much cheaper given taxes/fees are only paid once every two years and depreciation is typically less in year two.
I’m guessing my max of ~$8500/year could be trimmed closer to $5,000/year with a 2 year ownership period. For example a $40k car being resold for $30k two years later.
Nope. Not gonna happen on any marks you plan. Unless you go cheap cars. We are not considering cheap cars, are we? To be honest, 40 K ain't gonna get you anything fancy either.
Why wouldn’t you just lease in a 36-39 month window and call it a day? I have an Infiniti sedan I leased with no money in the deal in the low 400s a month for 39 months 10k miles a year?
Why wouldn’t you just lease in a 36-39 month window and call it a day? I have an Infiniti sedan I leased with no money in the deal in the low 400s a month for 39 months 10k miles a year?
Flipping every year or two is a disaster
To me 36-39 months is a long time to be stuck with something I could get bored with. And many cars aren’t available with a lease.
Talking about buying a car cash for say $40k. Drive it say 1 year or so and resale it for $35k...maybe even $33-$34k. My net loss is $5-7k per year and I get to drive a different car every year.
Another possibility I thought of is the Tacoma...maybe something cool like a Tacoma or 4Runner Pro? Those seem to hold value extremely well.
You are delusional. In the first place, sales tax on a new $40k vehicle is going to be damn close to $5k right there. Secondly, after one year, the typical $40k car is worth about $25k-$30k tops. The only way you can drive a new car every year losing only $5k in depreciation is driving econoboxes with msrps in the $10k-$15k range. Your best bet is looking at 1 year lease options, but you are going to be looking at way over $5k for anything nice.
As a side note, with absurd priorities like this, your early retirement might not last too long.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by eddiehaskell
Potential first victim?
2019 Ford Raptor....looks like new ones can be had for $6k off sticker...around $60k.
As a point of reference for resale value - it appears 2014 Raptors with under 60k miles go for about $45k. That’s a 6 year old model!
So would it be fair to assume that in November of 2021 a 2019 Raptor (only 2 years old) with ~20k miles will be worth around $50k? I tend to think so give or take a few grand.
So:
2019 Raptor ~$62,000 out the door price with tax (3% in NC)
Drive for 2 years
Sell Raptor for $50,000
Total out of pocket = $12,000/2 = $6,000 per year.
Even if we assume the Raptor is worth $45,000 in 2 years...that’s still a max out of pocket price of $17,000.
Now let’s figure any old nice boring mom car like a Highlander would probably cost someone $10,000 in depreciation over 2 years....
Well for an enthusiast would it be worth $7,000 more to drive a Raptor for 2 years?
That’s $300/month extra! About what many spend at Starbucks per month. You only live once....why miss out on the golden era of cars? They are better than ever now.
Just curious if you have the credit and dti to pull this off. I tried to get a 70k loan to buy a Ferrari that I was putting a large down payment on with lots of skin in the game and was turned down.
I just went out and paid cash for it.
It seems the sales tax each year would kill your idea as well as insurance. I didn’t see where you factored insurance cost in. Pretty sure a raptor will be much higher than a Prius. If you held the car over a year you’d pay vehicle property tax of 3% that year.
Last edited by aslowdodge; 11-14-2019 at 11:14 PM..
Just curious if you have the credit and dti to pull this off. I tried to get a 70k loan to buy a Ferrari that I was putting a large down payment on with lots of skin in the game and was turned down.
I just went out and paid cash for it.
It seems the sales tax each year would kill your idea as well as insurance. I didn’t see where you factored insurance cost in. Pretty sure a raptor will be much higher than a Prius. If you held the car over a year you’d pay vehicle property tax of 3% that year.
Buying a new vehicle is one of, if not the worst depreciating assets a person can buy. And he wants to do it every year.
The first year is the worst loss by far. Why not trade when the warranty runs out on each vehicle? While still insanely expensive transportation, that makes a ton more sense than buying new every year.
Buying a new car is one of, if not the worst depreciating assets a person can buy. And he wants to do it every year.
Not all new cars depreciate that rapidly, he's looking at the kind that don't. And home electronics are worse for depreciation...
But he wants to do it as a hobby. What's your ROI on your hobby? What's the ROI on a vacation or a nice meal out? Not everything is about ROI. if he chooses wisely, with specialty cars that have high demand, he can keep depreciation to a minimum and have low overall costs.
And not every state has property tax you have to pay on a car.
Btw - the two year ownership period may indeed be much cheaper given taxes/fees are only paid once every two years and depreciation is typically less in year two.
I’m guessing my max of ~$8500/year could be trimmed closer to $5,000/year with a 2 year ownership period. For example a $40k car being resold for $30k two years later.
Just lease, way less hassle.
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To be honest, 40 K ain't gonna get you anything fancy either.
