Cars in MA (Boston: renting, appliances, buyer)

[GeoffD]

Originally Posted by matrix5k

No idea, I don't know this person. Many people made a lot flipping cars from 2020-22.

So you somehow think that the supply chain disruption with COVID-19 is going to last forever? It's fools gold to think a car bought in 2023 and driven a normal 12k to 20k miles per year is an "investment". Cars depreciate.



You also are failing to consider the other costs. If you sell a car rather than trade it, you pay full sales tax on the next one. That's 6.25% right off the top. It's a new car so you're paying full excise tax on it. Another ~ 2%. Titling cost. Dealership fees. If you owned the car for less than a year, you have to pay short term capital gains on it and the 5% Massachusetts income tax. If you're buying $80k cars, you're in a high tax bracket. If you're not paying those taxes, that's tax evasion.



The guy at the bar boasting about his financial wizardry isn't going to mention any of that.

[BostonMike7]

Originally Posted by newenglandgal123

so he basically got back the sales tax he paid (if he doesn't live in NH) plus maybe a couple thousand more......then he goes to buy a different car that costs more now than it did two years ago and poof the money is gone?

He didn't buy anything. That was a 3rd weekend car for him. Essentially he got to drive a $100K sports car for two summers for the cost of fuel and insurance. Technically he lost money when you factor in taxes plus a couple oil changes and other maintenance items. He did not buy another car after selling it as he wanted to hold off until the market cooled. He already had a (paid-off) SUV as a daily driver.

Like i said, it was just good timing and not planned. He still had to float payments on that for 2 years before finding out he could sell it for a premium when demand was sky high. Those cars aren't holding value like they did 1-2 years ago now. If someone tried the same they would likely lose more money.

Originally Posted by GeoffD

So you somehow think that the supply chain disruption with COVID-19 is going to last forever? It's fools gold to think a car bought in 2023 and driven a normal 12k to 20k miles per year is an "investment". Cars depreciate.

I don't think anyone is arguing that. I think the situation was an outlier and not something to be expected at all moving forward.

[NewfieMama]

I just bought a used vehicle last month, which I hate. We had an old 2006 Jeep that we were driving into the ground and we were hoping to get another 6 - 12 months out of it, but the engine literally cracked and we couldn't repair it.

After many weekends of test driving vehicles of all sizes, we settled on a BMW X5. New would have been over $60K, but we got one that was 5 years old with 40K miles for under $30K. We paid cash and I am glad the ordeal is over. It was stressful and it really feels like there are no good deals out there.

This is our second vehicle/my husband's car. I drive a 3-row SUV (typical suburbia vehicle) that we bought used in April 2021 right before the prices really went crazy. It is a newer vehicle, had fewer miles, and was a much better deal. Also paid cash and no trade in because it was replacing our sedan that we had driven into the ground. I hope we don't have to buy another car for 10 years.

Even though I have never had a car payment, I was very seriously considering a lease. I hate owning a vehicle. I'm actually typing this from the waiting room of the GMC dealership because our thermostat is throwing an error and I'm sure it will be a $2K repair. Just 2 months ago we had to have the touchscreen replaced and that was $1,600. It's all a headache.

[lrfox]

I sort of hit the lottery this past year. My previous car was totaled by a hit/run driver (they caught him - cameras everywhere) in late November. It was a 2018 sports sedan with about 55k miles, but it was a generation old, the manufacturers warranty was about up, and I really didn't want to be paying for repairs on the thing so I had actually started looking around but was disheartened by the prices out there. But thanks to the accident, I received about $15k more than what I paid for the car in 2020 ($10k over plus $5k for "new car replacement"). My insurance company also let me keep the rental through Christmas. I then went without a car through January (we mostly drive on weekends anyway), and bought a 2 year old CPO Volvo in February.

The beauty of it is that between November and February, the used car market came back down to earth a bit. My Volvo cost about $10k less in February than a similar car was listed for in November. I got a newer car for comfortably less than what my insurance payout was. It's a great car.

[newenglandgal123]

Originally Posted by matrix5k

He drove a car for 2 years and left with a nice profit. You sound jealous. Can't get resale value like that with an Audi.

I'm not in the business of trying to flip used cars for a couple grand profit lol I'll keep my paid off Audi and enjoy driving it.

[newenglandgal123]

Originally Posted by NewfieMama

I just bought a used vehicle last month, which I hate. We had an old 2006 Jeep that we were driving into the ground and we were hoping to get another 6 - 12 months out of it, but the engine literally cracked and we couldn't repair it.

After many weekends of test driving vehicles of all sizes, we settled on a BMW X5. New would have been over $60K, but we got one that was 5 years old with 40K miles for under $30K. We paid cash and I am glad the ordeal is over. It was stressful and it really feels like there are no good deals out there.

This is our second vehicle/my husband's car. I drive a 3-row SUV (typical suburbia vehicle) that we bought used in April 2021 right before the prices really went crazy. It is a newer vehicle, had fewer miles, and was a much better deal. Also paid cash and no trade in because it was replacing our sedan that we had driven into the ground. I hope we don't have to buy another car for 10 years.

Even though I have never had a car payment, I was very seriously considering a lease. I hate owning a vehicle. I'm actually typing this from the waiting room of the GMC dealership because our thermostat is throwing an error and I'm sure it will be a $2K repair. Just 2 months ago we had to have the touchscreen replaced and that was $1,600. It's all a headache.

What do you hate about the X5 and why did you buy it after you test drove it? Did an unexpected problem surface after purchase? I know those can sometimes have electrical gremlins like Audis, but they are enjoyable to drive and have fairly good safety ratings.

[massnative71]

Originally Posted by newenglandgal123

I'm not in the business of trying to flip used cars for a couple grand profit lol I'll keep my paid off Audi and enjoy driving it.

That's the thing. I could have turned a profit selling my 2020 up through last year, but to replace it with the same equivalent would have been just "that much more". And like the above poster said, I would have owed all those additional taxes and fees. I bought the vehicle that suits what I want and need, which three years later has not changed.

[BostonMike7]

Originally Posted by lrfox

The beauty of it is that between November and February, the used car market came back down to earth a bit. .

That's what i've noticed too locally. early/mid 2022, the vehicles I were interested in were holding value and selling for near MSRP in 1-2 year old condition with 20-30K miles. At that price point, it made no sense to buy used when a few thousand more would get you a full warranty period and 0 miles. I didn't buy though.

Now they used car prices are dropping off and vehicles are sitting. I've walked out on a couple cars (because they weren't what I wanted for color or options) and have dealers calling me trying to get me back in to deal. Some of these cars i discovered have been sitting there for months. I still have not bought anything, and might not until end of summer/fall.

Inventory is terrible for what is out there. i am picky, so it makes it hard to just go out and find a car i like same day. Needs to be a specific trim level, with specific options and specific colors. I tend to keep my vehicles for around 10 years, so in order for me to make it that long it needs to be something I like and fun (for me) to drive. I drove my last vehicle into the ground up to about 200K miles and was stuck renting a car and rushing to make a good deal on a car that didn't quite check off all the boxes, but was acceptable.

My current car has 150K miles on it and climbing. The car runs great and while i'd like to make it to 200K, id rather bail out before I'm forced to buy something rushed in today's market. Fortunately, my ongoing vehicle repair/maintance costs are low because i can DIY vast majority of things.

I've actually NEVER purchased a brand new car. It's always been 1-2 years old.

[NewfieMama]

Originally Posted by newenglandgal123

What do you hate about the X5 and why did you buy it after you test drove it? Did an unexpected problem surface after purchase? I know those can sometimes have electrical gremlins like Audis, but they are enjoyable to drive and have fairly good safety ratings.

The X5 has been fine. So far. It's our other vehicle--a newer GMC--that has been a headache for the past few months. It just feels like at some point an issue is always popping up, especially as the vehicles get closer to the end of their life.

ETA: When I said "I just bought a used vehicle last month, which I hate" I didn't mean I hate the car. I meant I hate the process of buying a car. Sorry, should have clarified

[massnative71]

Bought my first brand new vehicle for $10K back in 2002 (probably a few thousand off MSRP). Totaled by a drunk driver in 2005, insurance gave me over $9K. Not bad for back then lol. Ended up buying a brand new '06 (same make and model) for around $13K, drove it almost 15 years/300K till it was worth nearly nothing (but still got $500 in trade). That's under $1K/year in depreciation costs. Or when you're talking both vehicles combined, say $14K for 18 years. I'm all for buy brand new and "hold" (till the wheels fall off).