There's also get a good deal on a used car, then sell it for a good price a year later. Repeat.

 

Where do you think that fits in the overall order? I guess if you can sell it for more that you paid for it, this would be a profit maker.

 

Too many variables.

A reliable, 2nd hand, economical car with strong residuals is what you really need to look for, preferably mid-life in its model period (too new and problems aren't ironed out, too old and it may become less well known/parts issues towards the end of its prime of life). Get it after the purchase shock and before it enters terminal decline and lots of expenses. You need to have one that has around 5 yrs more life in it. Older and it has no residuals left, newer and it is too expensive. I very much hope this is what I have bought in the form of a 2 yr old Ampera, but the reliability and residuals are not really known just yet in the 5 yr/150k time-frame due to few statistical samples in that age/mileage.

 

Too many variables.

A reliable, 2nd hand, economical car with strong residuals is what you really need to look for, preferably mid-life in its model period (too new and problems aren't ironed out, too old and it may become less well known/parts issues towards the end of its prime of life). Get it after the purchase shock and before it enters terminal decline and lots of expenses. You need to have one that has around 5 yrs more life in it. Older and it has no residuals left, newer and it is too expensive. I very mch hope this is what I have bought in the form of a 2 yr old Ampera, but the reliability and residuals are not really known just yet in the 5 yr/150k time-frame due to few statistical samples in that age/mileage.

Well, I bought new and negotiated like a Ferengi. It was hard to pass up a new $44K MSRP volt for $21k after all the incentives, rebates, and credits. I feel like I got a new car for a used car price. The problem is I cannot repeat it because our state government suspended their wonderful 10% rebate off the base MSRP deal with netted me an additional $3914 off my 2013 volt purchase, on top of the U.S. fed tax credit.

 

Just thought of another one. Work for a company that gives you a company car and reimburses you for electricity and fuel. That would be below the reduced or free car.

 

A friend buys the worst old clunkers, gets two or three more years out of them, then picks up another one. He just replaced an '86 Olds 88 with a '92 Olds 98. When he runs the numbers he's doing way better than I am with the Volt.

 

I agree with too many variables.

I did a cost benefit analysis a while back and found that typically buying a one year used car was the most economical route assuming a 10 year life of a car. I found that buying a new car was less expensive than getting one older than 3 years used (again based on a 10 year life). I did this analysis on a Chevrolet Malibu a few years back. And this is a car with high depreciation.

It will depend on several factors.
Cars have differing depreciation rates. On a car like a Honda accord a one year used might not be a good deal over new.

Are you paying cash or financing? If you can score 0% financing on a new car that's a big bonus. You can then take that cash and invest it to get a return. Used cars typically don't have good finance rates. And if you pay cash that's money that could have been invested elsewhere for better returns.

Of coarse you have maintenance costs that go up with time, new tires and possible repairs that are not covered under warranty. If your handy and can do many of the repairs yourself that's a bonus for getting an older car.

Insurance costs go up over time. Sure the value of the vehicle might have decreased but that is not the biggest driver in insurance rates. It's liability. And an older car carries a higher safety liability than a new one.

You might score a good deal on a one or two year used car but why then is this car on the market. Was it practically a lemon? Daily rental? How well treated is such a car?

On a car like the Volt maintenance should be very low presuming you get a good one. And might be worth it for a car that is a few years used.

There is also some intrinsic value in having a new car and knowing the full vehicle history.

 

Least expensive way to buy and own a vehicle? Simple, buy a Honda. I have owned several and they cost me nothing in repairs and depreciated very little. Most expensive? BMW. I have owned several and they cost me a fortune in repairs and depreciated like a rock.

Buy what you want and don't sweat the cost. I had a friend that used to obsess over the amount his car(s) were depreciating. I don't see the point. Everything depreciates and wears out.

I have heard that the cheapest way to own cars is to buy a 10 year old Japanese car, drive it a couple of years and trade it on another 10 year old Japanese car. I don't know about that, a 10 year old car doesn't appeal to me. I grew up in the day when most 10 year old cars were ready for the junk yard and I can't shake that perception.

 

That's all fine and good, but I hate the plain look of Hondas (same goes with Toyotas). That said, I own a 1989 BMW 535i and can agree, if you bring the car to the BMW stealership for maintenance, it can get very expensive. I've also own a Chevy suburban, Toyota Supra, Cadillac CTS and all of them lasted well over 100k miles and still don't have any major issues. But they still need oil, tires, brake pads, and a coolant flush once in awhile. Drive it long enough, y ou need shocks and suspension work. You can't pay zero in maintenance and expect cars to last.

I think AMerican cars have gotten much more reliable these days, catching up to the Japanese, but don't get the credit they deserve.

 

The Chevy Volt Extended Range Electric Vehicle - Google: "Volt NCD"

"Thomas Thias inspired me to craft this. Here's a list of ways to operate a vehicle ranked roughly in order from most to least expensive. I'm sure I missed some, so please add more"

On January 28, 2012 I published The Chevy Volt Extended Range Electric Vehicle White Paper, called:

Volt NCD ( Net Cost to Drive ) Bout $37.25 a week! ........What? !

A google Search: "Volt NCD" returns this piece as 1st hit!

Really!

In this breakout I pose that with the cost of electric fuel being 75% more efficent then gasoling per mile driven, that, with nightly refueling a Chevy Volt EREV, even a 110V AC outlet, using home power, the average US commuter could effectively realise a Net Cost To Drive a Chevy Volt EREV of $37.50 a week.

WHAT!

How cheap is that?

At that time, in 2012, the National Chevrolet Volt Lease Promotion was $349.00 a month/ 12,000 miles a year and then about $2,650.00 up front.

Now, with the final sell down, at the national level, at least through July, 2015 is $299.00 a month, with supplys dropping fast, unknown is what is coming for the few MY 2015 remaining Chevy Volt EREV's.

Now, I have done a couple of broken link adjustments to this legacy White Paper posted below, but my premise still stands.

Over the last 4 1/2 years, as Ally Bank, US Bank and GM Financial Ran the Chevy Volt Lease Program's for GM, capturing by law the full Fed. $7,500.00, passing this, in full, to the lessee and reducing the Lessee's debt obligation by adding this credit as an enhancement to the normal residual value resulting, at times, during year's end model clearence lease specials as low as $269.00 a month.

Note, that as of 4 months ago, GM Financial has been adapted by GM as their official lender/lessor. The propriety services of Ally Bank and US Bank are no longer to be used by GM Dealers, North America, by corporate business plan.

As the MY 2015 Chevy Volt, #FirstGenVolt moves rapidly to, "Sold Out" status at the majority of the Chevrolet Dealer's, nationwide, in short order, as the MY 2016 #NextGenVolt waits in the wings, my premise that the Chevy Volt EREV, Net Cost To Drive, as posted below is the most compelling arguement in favor of #ElectricFueledVehicle's being cheaper, by far, then even 5 year old used cars, when leased, that I have ever published.

Thank's, llninja for pulling me off Twitter publishing, if just for a minute, to respond to your excellent post!

Link Goes To: NCD ( Net Cost to Drive ) Bout $37.25 a week! ........What? ! GM Volt Dot Com - 01.28.2012-


http://gm-volt.com/forum/showthread...showthread.php?11367-NCD-(-Net-Cost-to-Drive-)-Bout-37.25-a-week!-........What-!


Best-

Thomas J. Thias

Sundance Chevrolet Inc.

517-749-0532

Publisher:

https://twitter.com/AmazingChevVolt

 

I think we all agree, comparing the total cost of ownership of a volt to any ice vehicle is not even close if you can plug the car in daily.

On January 28, 2012 I Published The Chevy Volt Extended Range Electric Vehicle White Paper called:

Volt NCD ( Net Cost to Drive ) Bout $37.25 a week! ........What? !

A google Search: "Volt NCD" returns this piece as 1st hit!

Really!

In this breakout I pose that with the cost of electric fuel being 75% more efficent then gasoling per mile driven, that, with nightly refueling a Chevy Volt EREV, even a 110V AC outlet, using home power, the average US commuter could effectively realise a Net Cost To Drive a Chevy Volt EREV of $37.50 a week.

WHAT!

How cheap is that?

At that time, in 2012, the National Chevrolet Volt Lease Promotion was $349.00 a month/ 12,000 miles a year and then about $2,650.00 up front.

Now, with the final sell down, at the national level, at least through July, 2015 is $299.00 a month, with supplys dropping fast, unknown is what is coming for the few MY 2015 remaining Chevy Volt EREV's.

Now, I have done a couple of broken link adjustments to this legacy White Paper posted below, but my premise still stands.

Over the last 4 1/2 years, as Ally Bank, US Bank and GM Financial Ran the Chevy Volt Lease Program's for GM, capturing by law the full Fed. $7,500.00, passing this, in full, to the lessee and reducing the Lessee's debt obligation by adding this credit as an enhancement to the normal residual value resulting, at times, during year's end model clearence lease specials as low as $269.00 a month.

Note, that as of 4 months ago, GM Financial has been adapted by GM as their official lender/lessor. The propriety services of Ally Bank and US Bank are no longer to be used by GM Dealers, North America, by corporate business plan.

As the MY 2015 Chevy Volt, #FirstGenVolt moves rapidly to, "Sold Out" status at the majority of the Chevrolet Dealer's, nationwide, in short order, as the MY 2016 #NextGenVolt waits in the wings, my premise that the Chevy Volt EREV, Net Cost To Drive, as posted below is the most compelling arguement in favor of #ElectricFueledVehicle's being cheaper, by far, then even 5 year old used cars, when leased, that I have ever published.

Thank's, llninja for pulling me off Twitter publishing, if just for a minute, to respond to your excellent post!

Link Goes To: NCD ( Net Cost to Drive ) Bout $37.25 a week! ........What? ! GM Volt Dot Com - 01.28.2012-


http://gm-volt.com/forum/showthread...showthread.php?11367-NCD-(-Net-Cost-to-Drive-)-Bout-37.25-a-week!-........What-!


Best-

Thomas J. Thias

Sundance Chevrolet Inc.

517-749-0532

Publisher:

https://twitter.com/AmazingChevVolt

 

+20

Oh, by the way, may I share with you, LLninja, my OnStar data?

-My MY 2012 #FirstGenVolt #AmazingChevvolt- Lease Up 03.12.2015:

Link Goes To Now Dormant Volt Stats Dot Net Data Screen, (Check out 10,000 Miles On One Tank Of Gas! Miles Driven VS Gas Burned)-

http://www.voltstats.net/Stats/Details/1068

-

My MY 2015 #FirstGenVolt #AmazingChevvolt2- Leased, 03.04.2015:

Link Goes To My Active Volt Stats Dot Net Data Screen:


http://www.voltstats.net/Stats/Details/6230

Reprise-

"Take Your Gas And Shove It,
Ain't Buying Much No More,
Racing Round In A Chevy Volt,
Got The Pedal To The Floor,

Driving By Them Filling Stations,
Gonna Go Home Tonight,
Unplug A lamp,
Plug In My car,
Things gonna Be Allright!"

With apologies to the late Jonny Paycheck and the legendary David Allen Coe!


Best-

Thomas j. Thias

Sundance Chevrolet Inc.

517-749-0532

Publisher:

https://twitter.com/amazingchevvolt

 

The leasing myth is not so cut and dry .
I leased my 2012 for $12,000 for 36 months . It would have cost me more than $22,000 if I would have bought it .


My theory on cheapest route for most people:

1. Buy a 10-15 year old car ,cross your fingers and hope it lasts a few years or more .

2. Buy a 3-5 year old car that has depreciated heavily like Buick , Ford , Chevy , Kia . Avoid Honda , Toyota .

3. Buy a new car every 7-14 years

4. Buy a new highly sought brand like Honda every few years .

 

If you are buying and trading in a new car every 3 years, then leasing might be about the same. Alas, with the volt, few people anticipated the great 2014 price drop which was awesome for people who purchased or leased after the drop, terrible for people who purchased before hoping for decent trade-in value just a few years down the road. So in this rare instance, people who leased instead of bought came out ahead. In either case whether you are leasing new or buying new and trading in well before the car has hit its prime, you are the ones paying the biggest chunk of the car's depreciation in those first 3 years.

Then there's the problem of people who even purchased after the great price drop, if they trade in after 3 years the new gen2 volt will be much more sought after than gen1, thus another hit. I'm in sinobre's buy every 7-14 years camp though I stretch it sometimes as well as hold onto the depreciated car as it's still working transportation even though we have a newer car. I've owned my BMW for 21 years and suburban for 17 years, both purchased used. I've gone for many years without a car payment, and the extra cash flowing into a bank account is really nice.

 

If I truly wanted to minimize my automotive cost for the least effort I would definitely buy a 10 year old Camcord, Civrolla or Prius. But, if you are willing to devote time and energy to that objective and are a really good haggler one of my former co-workers bought various used cars ranging from pickup trucks so Mercedes S class, drove them for 1 - 3 months and then sold them for slightly more than he paid for them (basically enough to cover the sales tax). He claimed it cost him < $500 / year with this approach. Of course that excludes the value of his time.

 

If I truly wanted to minimize my automotive cost for the least effort I would definitely buy a 10 year old Accord, corolla or Prius. But, if you are willing to devote time and energy to that objective and are a really good haggler one of my former co-workers bought various used cars ranging from pickup trucks so Mercedes S class, drove them for 1 - 3 months and then sold them for slightly more than he paid for them (basically enough to cover the sales tax). He claimed it cost him < $500 / year with this approach. Of course that excludes the value of his time.

I fixed it for you. I'm guessing autocomplete mangled your car names. Alas, I can't stand the thought of driving a car that evokes "meh" the way hondas and Toyotas do. I used to own a Toyota Supra and was saddened when toyota stopped making flagship supercars (though that Lexus LFA looks to be awesome)

 

Come to think of it, a couple options are missing:

For very infrequent driving you have traditional rentals.
For infrequent driving, especially for urbanites, you have Uber and car sharing services.
Someday in the future we'll have self-driving Uber taxis, which should be quite inexpensive compared to taxis with a driver.

 

Good additions to the list.

 

Leasing is not such a cut and dry proposition. It depends why you are leasing, the deal you got on your lease, how it compares to a purchase, what you do with the monthly differential, and how long you keep your cars for. For example if you are saving $200 per month on a lease vs. purchase and you invest the monthly difference you can come out ahead.

 

Thomas Thias inspired me to craft this. Here's a list of ways to operate a vehicle ranked roughly in order from most to least expensive. I'm sure I missed some, so please add more

- Buy a new car, drive it off a cliff every few years, repeat
- Lease a car, repeat
- Buy a new car, trade it in every few years
- Buy a new car, drive it into the ground, repeat every decade or so
- Buy a new car waiting for the deal of the decade and negotiating like a Ferengi, drive it into the ground
- Buy a used car
- Win a new car in a raffle (value of the car hits you in taxes)
- Buy a really used beater
- Steal a car, but eventually you have to deal with bail money and jail time<<<THIS IS THE MOST EXPENSIVE
- Receive a heavily discounted or free car from a friend or relative

Of course, things like the GM card rebate, topoffs, other incentives, loan payments vs. paying cash, high maintenance costs, etc. might cause some of these to jump around a bit in the order when looking at overall costs.

Let the discussion begin.

Plus...You forfeit many of your societal rights and opportunities

http://www.pbs.org/newshour/bb/even-misdemeanor-violations-can-lasting-consequences-job-prospects/

 

I do cost analyses at my work, there are other items that must be accounted for, such as intangibles like satisfaction costs.
In the end in really boils down to this. We all just get one life to live. You can't go around dissecting everything to get the last remaining dollar and cent out of something (unless it's a game to you). I say just use common sense in making purchases, and enjoy what you have.

My engineering econ professor use to say, enjoyment of money is knowing you can buy it, not necessarily making the actual purchase (or something along those lines ).

 

Just make sure that while enjoying life, you aren't blowing it all on cars that depreciate greatly in value at the expense of being forced onto the Alpo diet upon retirement.

I've always purchased slightly nicer vehicles and kept them longer than buying inexpensive cars that need to be replaced more often (used Toyota Supra instead of a new starter vehicle out of college, used BMW instead of a new Lumina for the first family car, Cadillac CTS instead of a Malibu, Volt instead of a Cruze). Driving nice cars 10+ years certainly saves over trading in over and over again. Every time I see a Challenger, Mustang, or Camaro on the road, I do wonder if most of their annual income is tied up into that car.

 

I like to have a new car every few years. For people like me it is usually cheaper to lease than buy.

Our lease payment is 263/mo including tax(leather, nav, Bose, $800down) Deduct about $50/mo in savings for electricity cost vs gas cost and we are at $213/mo. We will never be out of warranty, never need to pay for tires, the one oil change it will need is free. On top of all that it is a neat and fun car.

That being said i wish I could be happy driving a car into the ground.