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Good long-term economical car ownership strategy?

Hi all, wondering what your thoughts are on what a good general strategy usually is in order to maintain the cost of transportation. (I know there are tons of possible individual factors depending on circumstances, but generally...).

I've always bought used cars (typically around 4-5 year old low-mileage vehicles), and run them into the ground (until it needs some major repair(s). Obviously this cuts down the trade-in value however, which seems like a bit of dilemma. The reason I originally picked a used Accord is the maintenance record.

I know some people claim leasing is more economical; it seems most people buy new and trade in often such that their vehicle is never more than a few years old, etc.

I haven't had a car payment in several years however, and that seems to have made a huge difference in my financial situation.

Anyway, are there any general long-term rules of thumb?

Thanks--

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Reply to
Jeff
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I think you already have this figured out. And it is not a dilemma that your junker has little if any trade in value - you milked it for what it was worth.

Reply to
Pico Rico

If you are talking about trade-in in literal terms, i.e. you bring it into the dealership where you're buying your new(er) car and have them "buy" the old car from you, then "trade-in value" and "economical strategy" are contradictory terms - you never know just how much the dealer wants to screw you on that particular day.

I think trade-in value should be looked at more as a part of convenience package - the dealership is helping you to get rid of the old car and you are paying at least a couple of thousands of dollars for it. Making money on both of your cars is the only reason the dealership is willing to touch your old car in the first place.

Due to the amount of driving I do, my own personal "strategy" (preference might be a better word for it) involves fuel consumption and that severely limits my choices. In fact, I'm pretty much limited to just picking the color of a second generation Toyota Prius and perhaps waiting to see if the price of the third gen Prius would come down a bit. Given my personal situation no other car comes close to the balance of cost of ownership / utility / features that Prius provides.

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Reply to
DA

When I was young, I had an even better strategy. I had no car. I rode the bus. If you really need car for a long trip or some special purpose, it is always possible to rent one for a brief period. Unfortunately, when you get older, and family living comes about, that strategy does not work very well.

Reply to
Don

I suppose that's true--that eliminates one complicating factor--thanks!

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Reply to
Jeff

Yeah, I'm sure that's true about the dealership. I guess I look at the convenience as cost-related considering the time/effort/risk involved in buying/selling on my own.

Also I wasn't considering gas mileage, although my Accord does a lot better than most. I'm going to look into the Prius.

Thank you very much for the ideas.

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Reply to
Jeff

-- Leasing is not economical for someone who is willing to drive his/ her cars into the ground and do homework on buying a car (new or used).

-- (I think you know this already, since you have an Accord and know it has a good maintenance and repair record.) Buy only cars rated highly for good repair records and high mileage by the consumer surveys in the April issue of Consumer Reports. The sample size per model is high enough for these surveys to have good statistical significance.

-- Since you are driving the car into the ground, buying new is going to cost about the same as buying used per year and mile of use.

-- Consider Craig's List or many of several free "used car sales" web sites for selling your used car. The dealer will pay less than a private party for trade-in, due to the dealer's need to profit.

-- One may buy used on Craig's List and also do better than a dealer, but I would argue this requires a little experience.

Reply to
Elle

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