My old Suburban

[Shoot Summ]

As opposed to financing a $55k vehicle with interest on top?

As opposed to buying something less expensive, he only presented buying new when there are many other options.

I don't buy the idea of setting the $55K as the high water mark to compare the expense to, lot's of other options, there was no saving of $40K, there was justification to spend $10K plus, and the costing on that wasn't correct so it's $20K now.

 

[soonerwings]

As opposed to buying something less expensive, he only presented buying new when there are many other options.

I don't buy the idea of setting the $55K as the high water mark to compare the expense to, lot's of other options, there was no saving of $40K, there was justification to spend $20K.

The guy posted two options that HE was willing to consider. It's not my place to be his mom and make him consider every conceivable other option. He's a big boy. Of the two options that HE listed, he picked the better one IMO.

 

[CHenry]

The guy posted two options that HE was willing to consider. It's not my place to be his mom and make him consider every conceivable other option. He's a big boy. Of the two options that HE listed, he picked the better one IMO.

I agree AND he doesnt owe a banker $50k I assume hes into this rig for cash? A lot to be said for paying cash.

 

[1min2midnight]

Didn't really save $40K, he's spending close to $20K for transportation. There are a lot of options for transportation, I've seen some nice used cars for $10K that would deliver a lot of service. So actually he's spent $20k on a vehicle that is 19 years old, that he hopes will deliver 7-8 years of service. SPENT $20K, not saved...

My Son is driving a 1999 F150 we bought on here for $3500 in 2009, still going strong, probably has put $1.5K into it in parts and service.

Beyond that the $20K could have been conservatively invested and could return close to $10K over the same 8 year period. So was it a good idea? Only the OP can determine that, was it a financially sound idea? Not really IMO.

There are a good deal of options in the 10k range but if you wanted a 4x4 in the 10k range they were all high millage and could have easily had a transmission and or a transfer case go out. At least I know that is unlikely and under warranty if they do. As I said if I had it to do over I might not. It did get more expensive than I wanted. I

 

[Shoot Summ]

The guy posted two options that HE was willing to consider. It's not my place to be his mom and make him consider every conceivable other option. He's a big boy. Of the two options that HE listed, he picked the better one IMO.

It's funny you say that, because financially he might not have.

He could conservatively invest that $20K for 8 years, and make $10K, or more(or less)...

There are some great deals on borrowing money right now, a 5 year note, .9% for that $55K would cost him $4200. TT+T is higher, fuel costs are lower, extra repair costs are probably lower, and the residual value is higher. Insurance costs would differ, although you wouldn't want to drop $20+K into a vehicle and have it stolen so you couldn't go liability only. So at the very worst it's a wash, and could actually be worse for the old 'Burb if he borrowed money to do everything.

 

[soonerwings]

It's funny you say that, because financially he might not have.

He could conservatively invest that $20K for 8 years, and make $10K, or more(or less)...

There are some great deals on borrowing money right now, a 5 year note, .9% for that $55K would cost him $4200. TT+T is higher, fuel costs are lower, extra repair costs are probably lower, and the residual value is higher. Insurance costs would differ, although you wouldn't want to drop $20+K into a vehicle and have it stolen so you couldn't go liability only. So at the very worst it's a wash, and could actually be worse for the old 'Burb if he borrowed money to do everything.

He'd still pay $60k over the next 5 years for transportation. What if he took the extra $40k from not buying new and invested it?

 

[CHenry]

I was told once that if you bought all the parts to build what would cost your $20k at a car lot, you would spend about $80k to build it. That was years ago so those numbers are more like $40k and $120k probably. Point is, when you start throwing parts at an old vehicle you can reach a point of diminishing returns quite fast.
I dont think you hit that point but its easy to do.

 

[RidgeHunter]

******* for not finding a 67-72 for that money. Then you'd have a truck worth more than what you put into it that would keep increasing in value.

 

[RidgeHunter]

But really tho, it's whatever. My 2007 Tacoma is likely the last vehicle I'll buy brand new. I'm pushing 230k on in now, luckily with no major repairs, but if/when shat starts breaking - it will get fixed (upgraded if possible) regardless of cost. I like it. It works. Reliable. Huge offroad aftermarket support. I'll probably keep it forever unless I finally decide to replace it with an 80 series cruiser (which are becoming quite valuable themselves). Old Tacos and LCs hold their value pretty well tho. Better than 90s suburbans.

Drive what you like. I think it's still better than how most people spend their transportation budget.

 

[doctorjj]

As opposed to financing a $55k vehicle with interest on top?

Daily driven cars are ALWAYS a loser. It just depends on how much you want to lose.