Anyone Buy cars and hold less than 5 years?
04-29-2015, 05:25 AM
#1
AudiWorld Member
Thread Starter
Anyone Buy cars and hold less than 5 years?
If you bought your car why would you sell it before 5 years? If that is the case shouldn't you just lease cars? What is rational? I ask because I bought my A3 and have a 5 year note, however I am thinking maybe I should have leased it. I wish I had leased so I could get a new car in 3 years...does it make sense to just sell my car in 3 years then?
04-29-2015, 07:24 AM
#2
I tend to keep vehicles for at least 5 years. I also buy.
My father-in-law, who is an accountant and thus should understand finances, buys exclusively but also sells within 3 years on average. I asked him previously about this and he said it didn't seem to make a difference in overall cost, and he liked having the option of driving as much as he wanted or keeping the car longer versus a lease.
I say if you're not happy then sell your car if you can't wait until the 5-year loan is paid off. Not having a loan is nice and something to consider though.
My father-in-law, who is an accountant and thus should understand finances, buys exclusively but also sells within 3 years on average. I asked him previously about this and he said it didn't seem to make a difference in overall cost, and he liked having the option of driving as much as he wanted or keeping the car longer versus a lease.
I say if you're not happy then sell your car if you can't wait until the 5-year loan is paid off. Not having a loan is nice and something to consider though.
04-29-2015, 07:40 AM
#3
AudiWorld Senior Member
My Dad had his '95 Impala for 20 years, sold it this year.
I'm hoping to have my A3 for a long time.
The idea of trading it in for new car ever 3-4 years with leasing is cool. But you overlook that you're throwing a whole lot of money/freedom away.
Money you won't ever get back, freedom that you won't be able to make any significant changes to the vehicle that would void the lease.
Oh and that yearly mile limit, who the heck would want to deal with that.
Sure they market leasing in commercials a lot nowadays but it's still a suckers move IMO.
I'm hoping to have my A3 for a long time.
The idea of trading it in for new car ever 3-4 years with leasing is cool. But you overlook that you're throwing a whole lot of money/freedom away.
Money you won't ever get back, freedom that you won't be able to make any significant changes to the vehicle that would void the lease.
Oh and that yearly mile limit, who the heck would want to deal with that.
Sure they market leasing in commercials a lot nowadays but it's still a suckers move IMO.
04-29-2015, 07:45 AM
#4
AudiWorld Member
Thread Starter
I had my 2004 A4 for 7 years. I drove it for free for 3 years. I guess not really free because I had to put at $1,000 annually into the car, but cheaper than a monthly payment. I just really want the S3.
04-29-2015, 08:11 AM
#5
We always buy with the expectation of holding the cars more than five years, but it's only rarely worked out that way. Going back to 2002, between my wife and I our ownership chain has looked like this (some of these numbers are from memory; I might have them a bit off, but the concept holds):
Wife: Saturn SL2 purchased new (her first post-college new car) in 2002; driven until 2007, at which point we sold it to CarMax. Difference between the original purchase price in 2002 and what we got in 2007 was about $10k; so the usage value was about $167 a month.
Wife: Acura RDX purchased new in 2007. We still have it, but will be selling it soon to get her a new car. Based on current trade-in value, the delta between original purchase and sale is going to be about $20k. Over 8 years of ownership, cost has been $209 a month.
Me: BMW 325ci purchased new in 2003. Traded in 2008. Delta between purchase price and trade-in value was $18k. Cost over 5 years was $300 a month.
Me: The BMW 335ci I purchased in 2008 to replace the 325 was a disaster, hanger queen of a car. I traded it in 2010 when I got fed up with the service visits. The delta between purchase price and trade-in value was $15k. Cost over two years was about $625 a month.
Me: The Audi TT I purchased in 2010 was with me until last week; I had it a month shy of five years, at which point I sold it. Delta between purchase and sale was almost exactly $20k. Cost to own $338 a month.
Joint: In 2012 we purchased a Mazda5 after our second child was born, as my TT lacked a back seat. Now that I have the A3 cab, we're planning to sell it. I expect that after having held it 3.5 years, the purchase vs. sale delta will be about $7k, or $166 a month.
Now: An Audi A3 Cab. I purchased it (got a stellar deal) and feel sufficiently confident about having it more than four years that I actually paid to extent the warranty to 7 / 70. But odds are in five years something else will catch my eye.
Other than the '08 335, I'd say it's always worked out well financially, as the cost per month has been less than what I'd be paying on a lease for a comparable vehicle -- sometimes hundreds less. It helps that I tend to flog dealers for the lowest possible deal below MSRP -- unless someone curses at me in the process, I've not pushed hard enough -- and I tend to find the highest bidder (dealer vs. CarMax vs. private party) when selling the used ones. This lowers acquisition cost and mitigates lost value.
If I were regularly selling at the three year mark, were driving lots of miles, or if I beat the crap out of my cars (which I don't -- I baby them and they always rate "excellent" as trades), the economics might look different. But for us, holding a car 4.5 to 5 years has been a better option than leasing, and it's let us keep the really good ones longer than three years when we want.
Wife: Saturn SL2 purchased new (her first post-college new car) in 2002; driven until 2007, at which point we sold it to CarMax. Difference between the original purchase price in 2002 and what we got in 2007 was about $10k; so the usage value was about $167 a month.
Wife: Acura RDX purchased new in 2007. We still have it, but will be selling it soon to get her a new car. Based on current trade-in value, the delta between original purchase and sale is going to be about $20k. Over 8 years of ownership, cost has been $209 a month.
Me: BMW 325ci purchased new in 2003. Traded in 2008. Delta between purchase price and trade-in value was $18k. Cost over 5 years was $300 a month.
Me: The BMW 335ci I purchased in 2008 to replace the 325 was a disaster, hanger queen of a car. I traded it in 2010 when I got fed up with the service visits. The delta between purchase price and trade-in value was $15k. Cost over two years was about $625 a month.
Me: The Audi TT I purchased in 2010 was with me until last week; I had it a month shy of five years, at which point I sold it. Delta between purchase and sale was almost exactly $20k. Cost to own $338 a month.
Joint: In 2012 we purchased a Mazda5 after our second child was born, as my TT lacked a back seat. Now that I have the A3 cab, we're planning to sell it. I expect that after having held it 3.5 years, the purchase vs. sale delta will be about $7k, or $166 a month.
Now: An Audi A3 Cab. I purchased it (got a stellar deal) and feel sufficiently confident about having it more than four years that I actually paid to extent the warranty to 7 / 70. But odds are in five years something else will catch my eye.
Other than the '08 335, I'd say it's always worked out well financially, as the cost per month has been less than what I'd be paying on a lease for a comparable vehicle -- sometimes hundreds less. It helps that I tend to flog dealers for the lowest possible deal below MSRP -- unless someone curses at me in the process, I've not pushed hard enough -- and I tend to find the highest bidder (dealer vs. CarMax vs. private party) when selling the used ones. This lowers acquisition cost and mitigates lost value.
If I were regularly selling at the three year mark, were driving lots of miles, or if I beat the crap out of my cars (which I don't -- I baby them and they always rate "excellent" as trades), the economics might look different. But for us, holding a car 4.5 to 5 years has been a better option than leasing, and it's let us keep the really good ones longer than three years when we want.
04-29-2015, 08:38 AM
#6
AudiWorld Member
Thread Starter
We always buy with the expectation of holding the cars more than five years, but it's only rarely worked out that way. Going back to 2002, between my wife and I our ownership chain has looked like this (some of these numbers are from memory; I might have them a bit off, but the concept holds):
Wife: Saturn SL2 purchased new (her first post-college new car) in 2002; driven until 2007, at which point we sold it to CarMax. Difference between the original purchase price in 2002 and what we got in 2007 was about $10k; so the usage value was about $167 a month.
Wife: Acura RDX purchased new in 2007. We still have it, but will be selling it soon to get her a new car. Based on current trade-in value, the delta between original purchase and sale is going to be about $20k. Over 8 years of ownership, cost has been $209 a month.
Me: BMW 325ci purchased new in 2003. Traded in 2008. Delta between purchase price and trade-in value was $18k. Cost over 5 years was $300 a month.
Me: The BMW 335ci I purchased in 2008 to replace the 325 was a disaster, hanger queen of a car. I traded it in 2010 when I got fed up with the service visits. The delta between purchase price and trade-in value was $15k. Cost over two years was about $625 a month.
Me: The Audi TT I purchased in 2010 was with me until last week; I had it a month shy of five years, at which point I sold it. Delta between purchase and sale was almost exactly $20k. Cost to own $338 a month.
Joint: In 2012 we purchased a Mazda5 after our second child was born, as my TT lacked a back seat. Now that I have the A3 cab, we're planning to sell it. I expect that after having held it 3.5 years, the purchase vs. sale delta will be about $7k, or $166 a month.
Now: An Audi A3 Cab. I purchased it (got a stellar deal) and feel sufficiently confident about having it more than four years that I actually paid to extent the warranty to 7 / 70. But odds are in five years something else will catch my eye.
Other than the '08 335, I'd say it's always worked out well financially, as the cost per month has been less than what I'd be paying on a lease for a comparable vehicle -- sometimes hundreds less. It helps that I tend to flog dealers for the lowest possible deal below MSRP -- unless someone curses at me in the process, I've not pushed hard enough -- and I tend to find the highest bidder (dealer vs. CarMax vs. private party) when selling the used ones. This lowers acquisition cost and mitigates lost value.
If I were regularly selling at the three year mark, were driving lots of miles, or if I beat the crap out of my cars (which I don't -- I baby them and they always rate "excellent" as trades), the economics might look different. But for us, holding a car 4.5 to 5 years has been a better option than leasing, and it's let us keep the really good ones longer than three years when we want.
Wife: Saturn SL2 purchased new (her first post-college new car) in 2002; driven until 2007, at which point we sold it to CarMax. Difference between the original purchase price in 2002 and what we got in 2007 was about $10k; so the usage value was about $167 a month.
Wife: Acura RDX purchased new in 2007. We still have it, but will be selling it soon to get her a new car. Based on current trade-in value, the delta between original purchase and sale is going to be about $20k. Over 8 years of ownership, cost has been $209 a month.
Me: BMW 325ci purchased new in 2003. Traded in 2008. Delta between purchase price and trade-in value was $18k. Cost over 5 years was $300 a month.
Me: The BMW 335ci I purchased in 2008 to replace the 325 was a disaster, hanger queen of a car. I traded it in 2010 when I got fed up with the service visits. The delta between purchase price and trade-in value was $15k. Cost over two years was about $625 a month.
Me: The Audi TT I purchased in 2010 was with me until last week; I had it a month shy of five years, at which point I sold it. Delta between purchase and sale was almost exactly $20k. Cost to own $338 a month.
Joint: In 2012 we purchased a Mazda5 after our second child was born, as my TT lacked a back seat. Now that I have the A3 cab, we're planning to sell it. I expect that after having held it 3.5 years, the purchase vs. sale delta will be about $7k, or $166 a month.
Now: An Audi A3 Cab. I purchased it (got a stellar deal) and feel sufficiently confident about having it more than four years that I actually paid to extent the warranty to 7 / 70. But odds are in five years something else will catch my eye.
Other than the '08 335, I'd say it's always worked out well financially, as the cost per month has been less than what I'd be paying on a lease for a comparable vehicle -- sometimes hundreds less. It helps that I tend to flog dealers for the lowest possible deal below MSRP -- unless someone curses at me in the process, I've not pushed hard enough -- and I tend to find the highest bidder (dealer vs. CarMax vs. private party) when selling the used ones. This lowers acquisition cost and mitigates lost value.
If I were regularly selling at the three year mark, were driving lots of miles, or if I beat the crap out of my cars (which I don't -- I baby them and they always rate "excellent" as trades), the economics might look different. But for us, holding a car 4.5 to 5 years has been a better option than leasing, and it's let us keep the really good ones longer than three years when we want.
Thanks!
04-29-2015, 10:58 PM
#7
I've seriously never thought about adding up my total monetary spend of my previous cars the way you pointed out VA_TTer!
Using that logic, my last car, I spent $43.75 a month! Wow!
As for my A3, the dealer was pushing so hard to get me into a lease and a lease for me is just not worth it mainly because of the mileage constrains. I've had my car since November and I've already driven 10K miles. Leasing would put me in a crazy amount of overage miles.
I will most likely be keeping this car for more than 5 years so hoping the my overall payments are less than 250 a month!
Using that logic, my last car, I spent $43.75 a month! Wow!
As for my A3, the dealer was pushing so hard to get me into a lease and a lease for me is just not worth it mainly because of the mileage constrains. I've had my car since November and I've already driven 10K miles. Leasing would put me in a crazy amount of overage miles.
I will most likely be keeping this car for more than 5 years so hoping the my overall payments are less than 250 a month!
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04-30-2015, 02:44 AM
#8
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Most people lease due to payments. They can afford more car by leasing.
The advantages of owning is you can drive any amount of milage and you can sell or trade the car in when you want.
The scenarios by musantemike are interesting, I have never paid attention. I also have never kept a car more than three years. I'm hoping to keep my current S3 for 6 years at least but by owning it, I can change my mind at any time if Audi comes out with something amazing I really want.
The advantages of owning is you can drive any amount of milage and you can sell or trade the car in when you want.
The scenarios by musantemike are interesting, I have never paid attention. I also have never kept a car more than three years. I'm hoping to keep my current S3 for 6 years at least but by owning it, I can change my mind at any time if Audi comes out with something amazing I really want.
04-30-2015, 05:11 AM
#9
Very good point. I plan on keeping my S3 for 5+ years but let's see how the next RS4 turns out!
04-30-2015, 05:45 AM
#10
AudiWorld Senior Member
Bought my S3 with the intention of keeping it for more than 5 years. Had my last car for 8 and the individual who bought it said it was in a class beyond excellent. I try to take care of things. And I love my S3. Big smile on my face every time I sit in it. Also, I've invested some additional monies in the car recently with a clear bra and paint protectant for almost $1800. And next week I'm getting an APR ECU tune for $700. HAVE to keep the car longer just to get a return on those additional costs. A3/S3 line is awesome and it's a new design for the US. Take care of your car and you will enjoy it for many, many years. I think buying is better than leasing.