so I have 137k miles now. if I wait another year, and sell with 172k miles, what are pros/cons
03-04-2004, 07:17 AM
#4
Depreciation really levels off after the first few years and after 100K miles.
If you like the car and it has no maintenance/repair issues, then I would keep driving it. Look at this way, if you put 40,000 miles on a new A6, it probably costs you at least $8,000 in depreciation. On your car, those miles cost you maybe $1,000. That still leaves lots of room for repairs.
No brainer to me.
If I put a lot of miles on a car (I don't) I would consistently buy 3 year old, high-quality, European used, possibly with a warranty. You'll end up getting back much more of your investment at the back end.
No brainer to me.
If I put a lot of miles on a car (I don't) I would consistently buy 3 year old, high-quality, European used, possibly with a warranty. You'll end up getting back much more of your investment at the back end.
03-04-2004, 07:19 AM
#5
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Not an exact science but try kbb.com
I've used this method in the past.
Look at the price they say your car is worth.
Then go back a year and add the miles that you will put on in a year and see what the price diff will be.
Variences, 97 was a different model(I think), so you won't be able to do this exactly with your car but you can take a 99 and get a price for it with the miles you have on your car now, then go back to your model add the yearly miles to the miles you put on the 99 model and see the price difference. That's approximately what you can expect to lose in that year/miles added.
In addition you have new tierod ends, you have another 50k before you have to do that again! Why sell?
Look at the price they say your car is worth.
Then go back a year and add the miles that you will put on in a year and see what the price diff will be.
Variences, 97 was a different model(I think), so you won't be able to do this exactly with your car but you can take a 99 and get a price for it with the miles you have on your car now, then go back to your model add the yearly miles to the miles you put on the 99 model and see the price difference. That's approximately what you can expect to lose in that year/miles added.
In addition you have new tierod ends, you have another 50k before you have to do that again! Why sell?
03-04-2004, 07:24 AM
#7
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Well, if you continue not to wash it, I'd say another $3k probably.
At this point, no banks will lend on the car, so they buyer has to have cash or some form of it (home equity line, etc) but you're in the same boat now.
If you know the car, it's been well cared for, and you're not worried about a major mechanical meltdown, you may as well continue to wait. Whatever car you replace it with is depreciating about as quickly with fewer miles in the interim, so the opportunity cost shouldn't be anything, whereas with the miles you drive, buying a newer car that many miles would cost you even more depreciation.
If I were you I'd probably keep it and sell it next fall to someone looking for a winter 'beater' - not that your car is a beater - but the market will be better then. A lot of people with MB's and BMW's will snap your car up as a cheap and nice winter transport solution.
Not so this time of year. So hold onto it for another 8 months and get it cleaned up to perfection over the interim. If it looks and runs nice, the prospective buyer will snap it up, relying on the 'highway miles = easy use' theory.
If it looks rough, though, you're gonna lose another couple thousand.
What will you replace it with?
If you know the car, it's been well cared for, and you're not worried about a major mechanical meltdown, you may as well continue to wait. Whatever car you replace it with is depreciating about as quickly with fewer miles in the interim, so the opportunity cost shouldn't be anything, whereas with the miles you drive, buying a newer car that many miles would cost you even more depreciation.
If I were you I'd probably keep it and sell it next fall to someone looking for a winter 'beater' - not that your car is a beater - but the market will be better then. A lot of people with MB's and BMW's will snap your car up as a cheap and nice winter transport solution.
Not so this time of year. So hold onto it for another 8 months and get it cleaned up to perfection over the interim. If it looks and runs nice, the prospective buyer will snap it up, relying on the 'highway miles = easy use' theory.
If it looks rough, though, you're gonna lose another couple thousand.
What will you replace it with?
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03-04-2004, 07:25 AM
#8
Agree. Drive it until the repairs exceed the value of the car. At that point, junk it.
I'm sure it will be the most economical option. A new car will cost you, just in lease payment, over a year as much as your car is worth in total today. or close enough. Then there is the incresed cost of insurance of a new car. If you buy a newer used car you don't know what you will get.
03-04-2004, 07:28 AM
#9
This is pretty much, what I do.
I buy a three year old car from dealer auctions ( there are a lot of three year olds from the lease) and keep it for next few years. In this case I get best per mile value.