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My biggest thing is that I like to pay my cars off and then just buy another one. I lost 10's of thousands of dollars as a young man trading in motorcycles and cars and losing bucket loads of money until I realized that this is exactly what the dealerships and banks want you to do. It always gives me a chuckle when I see the statement, "We accept trades." hahahahahahahah............ of course you do. That's where you make a lot of your revenue. You basically give the customer $10K-$15K less than they could sell the car for on the open market for their trade in, and after the deal is done, you put it out on the lot for $10K-$15K more...... I get it. You need to make $$$$$. Nothing wrong with that.Now, don't get me wrong, in all likelihood the next car purchase I make will require me to trade in one of my toys (I'm starting to run out of garage space) if it's over $100K. But I definitely don't purchase vehicles anymore with a view to trading them in at some point. I drive my Vette all year round up here with studded snow tires on without a care in the world. In fact, I'd prefer to break something on the car now while it's under warranty........the clock is ticking........... I may never sell it/trade it in. But, if I do, it will be paid for, and I will have got my full use out of it. If I were to trade it in right now, after a year of ownership, I'd lose my shirt. The loses due to interest (which is always loaded up to the first year of the loan), and depreciation, are massive. During the first year of the loan, the majority of the payment is paying off the cost of borrowing the money. Very little of the payment actually goes to the principle of the loan. Now if you trade it in and take out another loan you're going to start the whole cycle again of paying mostly interest to the bank, while you're upside down (i.e. the car isn't worth as much as you owe due to depreciation.) It's a very dangerous game to play. I noted recently that Chuck from "Corvettes 918" just shut down his YouTube channel and gave back/sold his wife's C7 Grand Sport and his recently purchased C7 ZR1......insane!!!! I suspect he may have got in too far over his head...... In any event, I hate to think about the 10s of thousands of dollars he lost when he liquidated those two recently purchased cars!!!!!!!! I couldn't live with that.....
My biggest thing is that I like to pay my cars off and then just buy another one. I lost 10's of thousands of dollars as a young man trading in motorcycles and cars and losing bucket loads of money until I realized that this is exactly what the dealerships and banks want you to do. It always gives me a chuckle when I see the statement, "We accept trades." hahahahahahahah............ of course you do. That's where you make a lot of your revenue. You basically give the customer $10K-$15K less than they could sell the car for on the open market for their trade in, and after the deal is done, you put it out on the lot for $10K-$15K more...... I get it. You need to make $$$$$. Nothing wrong with that.
Now, don't get me wrong, in all likelihood the next car purchase I make will require me to trade in one of my toys (I'm starting to run out of garage space) if it's over $100K. But I definitely don't purchase vehicles anymore with a view to trading them in at some point. I drive my Vette all year round up here with studded snow tires on without a care in the world. In fact, I'd prefer to break something on the car now while it's under warranty........the clock is ticking........... I may never sell it/trade it in. But, if I do, it will be paid for, and I will have got my full use out of it. If I were to trade it in right now, after a year of ownership, I'd lose my shirt. The loses due to interest (which is always loaded up to the first year of the loan), and depreciation, are massive. During the first year of the loan, the majority of the payment is paying off the cost of borrowing the money. Very little of the payment actually goes to the principle of the loan. Now if you trade it in and take out another loan you're going to start the whole cycle again of paying mostly interest to the bank, while you're upside down (i.e. the car isn't worth as much as you owe due to depreciation.) It's a very dangerous game to play. I noted recently that Chuck from "Corvettes 918" just shut down his YouTube channel and gave back/sold his wife's C7 Grand Sport and his recently purchased C7 ZR1......insane!!!! I suspect he may have got in too far over his head...... In any event, I hate to think about the 10s of thousands of dollars he lost when he liquidated those two recently purchased cars!!!!!!!! I couldn't live with that.....