When is RIGHT TIME to Trade-In a Car????????

[dr150]

I have a 6 year $30k car with 105k miles on it and can get ~$7-$8k for it at a dealer.

It still runs and looks great and I'm happy.


Should I wait until it reaches 200k (since it already worth a measly $7.5k), or should I take what I can get now and cut my losses on depreciation?

What make most long term financial sense?


In general, when do you guys trade your car in?

 

[iwantanewcomputer]

im calling peta on you. that horse has been beaten to death and beyond

 

[Vic]

IMO it's about 5 years and roughly 70k miles. At that point, the car should be paid off, you've gotten a lot of use out of it, and it should still be worth roughly 40%-50% of what you paid for it new (there's a good used car market in this segment).
Depreciation hits hard after 100k miles.

 

[zephyrprime]

In terms of raw economic sense, it of course makes sense to drive a car until it's ongoing repair costs outpace getting another car. But most people get a new car before then just because they want a nice new car.

 

[CTrain]

Jeeezz, thats $22k for 6 yrs of usage.
Whas it worth it ??

What car cost $30K and sell for only $8K with just 105K miles ??

 

[Brainonska511]

Originally posted by: CTrain
Jeeezz, thats $22k for 6 yrs of usage.
Whas it worth it ??

What car cost $30K and sell for only $8K with just 105K miles ??

That's at the dealer. You can probably get more in the private market.

 

[xanis]

I guess around the 70K mark. Enough miles that you got some use out of it, but low enough that you can still sell it and make a decent chunk of change off of it.

 

[XZeroII]

It's probably not going to depreciate much more than it already has. Only you will know...

 

[FoBoT]

Run It Until The Wheels Fall Off

 

[jagec]

Originally posted by: FoBoT
Buy it with >100k, and then Run It Until The Wheels Fall Off

fixed.

 

[b0mbrman]

Originally posted by: dr150
I have a 6 year $30k car with 105k miles on it and can get ~$7-$8k for it at a dealer.

It still runs and looks great and I'm happy.


Should I wait until it reaches 200k (since it already worth a measly $7.5k), or should I take what I can get now and cut my losses on depreciation?

What make most long term financial sense?


In general, when do you guys trade your car in?

When the net annual utility you get from that new (to you) car outweighs the net annual cost of the new car.

 

[spidey07]

Originally posted by: Vic
IMO it's about 5 years and roughly 70k miles. At that point, the car should be paid off, you've gotten a lot of use out of it, and it should still be worth roughly 40%-50% of what you paid for it new (there's a good used car market in this segment).
Depreciation hits hard after 100k miles.

I'd agree. If you work the numbers, depending on the car there is a good time to sell.

My prelude, bought for 25, sold for 13, 5 years later. 12 grand out over 5 years? Not bad.

 

[lokiju]

What car?

 

[ElFenix]

after 6 or 7 years repair bills start going higher... need new clutches, new seals, brake overhaul, blah blah, plus newer cars are generally safer with gen 2 airbags, side airbags, steel door beams, etc.

 

[flyfish]

You always loose when you "trade-in" a car.

 

[Dr. Detroit]

I'm approaching 7yrs on my car:

MSRP $23,200
Paid $20,000
Mileage 75K

Worth $5K

$15K depreciation over 7yrs = $2,140 per year.

I am getting concerned over the repairs as I have deferred maintenance issues like brakes, tune up, fluid flushes but it should be reliable for another 2-3 yrs, I hope. My cost of ownership for those next 2-3 yrs become less than $1K a year as my car has nearly depreciated to nothing and at 10yrs it will problably be worth $3-4K with 100K miles on it.

Even if I add in $1000 in repairs per year I am better off keeping the car.

As long as I'm somewhat satisfied I wil prolly keep the car as registration, insurance, and sales tax on a new ride are sunk costs you never get back.

 

[b0mbrman]

Originally posted by: flyfish
You always loose when you "trade-in" a car.

Loose what? The lugnuts?

I think people do it because not using up the time to put in an ad, meet buyers, and file the paperwork isn't worth the difference between the two prices.

Suppose you had a job where you made $100 an hour and you had kids and a wife at home who you enjoyed spending time with...If it takes you 24 man hours total to sell the car at a price that's $1000 more than what a dealer would give for it, then wouldn't it make sense to trade it in?

 

[ElFenix]

Originally posted by: b0mbrman
Suppose you had a job where you made $100 an hour and you had kids and a wife at home who you enjoyed spending time with...If it takes you 24 man hours total to sell the car at a price that's $1000 more than what a dealer would give for it, then wouldn't it make sense to trade it in?

ok, so for those of us who don't make $200,000 a year...

 

[jagec]

Originally posted by: ElFenix
after 6 or 7 years repair bills start going higher... need new clutches, new seals, brake overhaul, blah blah, plus newer cars are generally safer with gen 2 airbags, side airbags, steel door beams, etc.

New clutch - every 150,000 or more if you drive right. Depends on the car, of course.
New seals - anywhere from "never" to "when it leaks", generally once in the lifetime of the car.
Brake overhaul - The only thing that's been done to the cars that I've owned is changing the pads. This is two '89s, two '84s, and a '90.

Really, if you buy quality cars, you ought to get >200,000 out of them without major repairs.

Can't argue the safety standpoint, though.

Originally posted by: b0mbrman
I think people do it because not using up the time to put in an ad, meet buyers, and file the paperwork isn't worth the difference between the two prices.

Suppose you had a job where you made $100 an hour and you had kids and a wife at home who you enjoyed spending time with...If it takes you 24 man hours total to sell the car at a price that's $1000 more than what a dealer would give for it, then wouldn't it make sense to trade it in?

And then there's the rest of us, who probably make between $20-30 an hour, and take 3-4 man-hours total to sell a car. Even less if you do some of it from your work computer

 

[funboy6942]

You shudda taken that 30K and bought a 60-70's gm sports car for parts are a dime a dozzen, most parts including engines thanks to no smog contolls or computers can be repaire by yourself, and if kept tight will never depreciate but appreciate.

Right car to get is one with low maintance costs to repair. Find out how much worst case senario like engine and trans would be to replace and just keep the car and if you want to keep it lower never, ever buy new always used with a few miles and an extended service contract for possable repairs till you hit 100K.

Its always best to not trade in your car all the time or if you can never. My car I dive is right there on the perfect edge. Old (88) but in near perfect condition in and out, its GM so parts are silly cheap (like $15 for a water pump and less then a hour to change myself) and if the worst should happen the engine rebuilt is about $500 and I can do it myself with a pully and a tree in my back yard. Trans is same price. Onlything computerised on my car is the awful throttle boddy injection that once goes will be replaced with a 4barrel carb and intank.

But its all about being prepaired when you buy and car and not go off buying something with the mindset that I asked ATOT what I should drive and my friends would get hella jealous seeing me it it, but rather study alot of cars, see what mostly goes wrong with them, understand its a long time finacial comitment and can I afford this not only now but when stuff start to break.

 

[radioouman]

150,000 miles is the time to get rid of a car, regardless of year unless 150,000 was attained through many years of well below mileage per year.

 

[vi edit]

Originally posted by: Vic
IMO it's about 5 years and roughly 70k miles. At that point, the car should be paid off, you've gotten a lot of use out of it, and it should still be worth roughly 40%-50% of what you paid for it new (there's a good used car market in this segment).
Depreciation hits hard after 100k miles.

Agreed. Right around that point resale just plumets on all but very select and in demand vehicles.

 

[Scarpozzi]

I bought my car 1 year old with 20k miles on it for 50% of its sticker price.....I say drive that car as long as you can. Rich people are rich for a reason....they don't waste money on stupid stuff like new cars all the time.

 

[SilverTrine]

To keep a car for really high miles you need a garage. Its amazing the damage heat, humidity, and dampness does to a car.

 

[jagec]

Originally posted by: radioouman
150,000 miles is the time to get rid of a car, regardless of year unless 150,000 was attained through many years of well below mileage per year.

Actually, cars don't wear out through use, they wear out through lack of use. Taking a car for a quick trip to the grocery store, and then parking it for two weeks, is the worst thing you can do to a vehicle.

A properly cared for car, or one with mostly freeway miles, should last well beyond 150k. But it really depends on the model.