RE: Rocketing secondhand car prices spell good news...

RE: Rocketing secondhand car prices spell good news...

Author
Discussion

ashenfie

713 posts

47 months

Friday 2nd July 2021
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So a while ago my 320d was worth 9995. On we buy any car dot com and today it seams to be 11750.

HardtopManual

2,433 posts

167 months

Monday 2nd August 2021
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"If it appreciates, buy it. If it depreciates, lease it."

I understand the benefits of the first. You get to keep the upside.

I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.

Pretty much every object in your house depreciates, but nobody rents a TV anymore.

Teddy Lop

8,301 posts

68 months

Monday 2nd August 2021
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HardtopManual said:
"If it appreciates, buy it. If it depreciates, lease it."

I understand the benefits of the first. You get to keep the upside.

I don't understand why the latter is oft-quoted as a hard and fast rule when it comes to cars. You're going to pay for depreciation either way, but if you don't buy, you're also effectively paying interest - and the rate is often much higher than the return on any low-risk investment that could be made with the capital.

Pretty much every object in your house depreciates, but nobody rents a TV anymore.
I think people just use it, and are used with it, to justify new shiney thing.

Don't give a toss if you buy/lease/rent whatevs, form some I'm sure the appeal of having the latest new shiney thing every few years for a fixed monthly sum is a service they're happy to have, but the idea you can swerve the true cost of it by simply not taking personal ownership is absurd.

WonkeyDonkey

2,341 posts

104 months

Monday 2nd August 2021
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That quote only really works it you plan to only own things for the short term.

Only need a car for 12/18 months? Just lease it. Plan to own a car for 5+ years? Buy it.


anonymous-user

55 months

Monday 2nd August 2021
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Lord.Vader said:
Selling my Vantage this week, offered nearly 20% more than last year, only an old 2008 one.

13 years old this year and hasn’t had a clutch yet.

Are those people who say their car has increased x in y years taking into account tax, insurance, servicing, etc?

Insurance £700, Tax £580, servicing £500, before turning a wheel!
Thats more reasonable for a vantage v8 than when i looked into buying my first in December last year, I was told, hopefully wrongly to triple that service figure.

Ari

19,347 posts

216 months

Monday 2nd August 2021
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"If it appreciates, buy it. If it depreciates, lease it."

One of the silliest quotes ever. Why add extra costs of finance to a depreciating asset? Whereas it makes perfect sense to finance an appreciating one.

As Abraham Lincoln famously once said Don't believe everything you read on the Internet

av185

18,514 posts

128 months

Monday 2nd August 2021
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Makes even more sense in most cases not to finance but to pay cash for an appreciating asset especially an appreciating car.