How to decide when buying a car that drives amazingly, fits kids and their friends comfortably in 3 seats, is safe, reliable and and flexible to use on long car trips?
I bought a 2014 BMW and now am thinking of buying a new or pre-owned BMW or completely different brand.
Some pluses and minuses:
Electric self driving car has a plus of automation (just sit in the driver’s seat) — wow!! — but a downside for longer car trips (i.e. San Francisco to L.A.) as not that much inside car space and considerably less flexibility re time to “re-fuel”. Acquaintances who have e-cars say that they leave their e-car home and take their larger fossil fuel cars on long car trips.
What about the total cost of a car? The interest rates on car loans has skyrocketed.
Per phone call today 6/10/23, the sales department of BMW in Monterey CA says that new car interest rates run around 5-6 1/2 % and that pre-owned cars interest rates run between 7-8%. Of course credit and the 40 plus sources BMW has for obtaining a loan affect the actual rate one will pay. That’s the cost of going through a dealership.
BMW of Monterey says that the current 230 i and 240 i series both have more power compared to a 2014 BMW 328 purchased 10 years ago.
There is a big difference in overall style between the current 2024 BMW versus the 2020 series. The 2024 costs between $41-48K with the 2020 BMW 230 i older style costing between $28 – 30,000. Check out differences in older and newer style.
Turn in value for a car: A 2014 328 model with (low 60,000 mileage) is worth about 10-12,000 on turn in.
My view: If you really like a car and plan to keep it 7-10 years– as long as the average marriage lasts in America — then the depreciation in value over first couple years is less important than the overall value it has in being truly fun to drive, safe, reliable and that the car does what you want it to do. Get the car of your dreams.
So, drive enough various cars until you find that “dream car” — and only then, look for where and from whom to purchase it. Ask for help.
Remember that story in the Bible about a man who worked 7 years for the wife of his dreams, getting hitched instead to her sister (by design of the father-in-law because per tribal custom the older sister must marry first) and then working another 7 years to marry the wife of his dreams. Which he did. So, take your time and make sure both sides to the contract can and will keep their bargain.
Maybe buy from a dealer and maybe some other way.
Question: How can you get the car you really want at the lowest possible interest rate and also get great value as the car has depreciated because it is one year old?
In the Great Scheme of Things: There’s someone out there who bought the car of his or her dreams but due to various reasons needs to re-structure debt and sell that one year old car which has a low interest rate. Best of both worlds — get the right car ant the right interest rate.
But then again time may be of the essence How much time do you have to devote?
Here’s a poem about a black hen who has to make decisions: ” Higgily piggily my black hen; She does not know how to lay eggs in the relative when. She only knows how to lay eggs in the positive now. Higgily, piggily my black hen. ”
Someone I respect says “Life is like a chess game. You can move all sorts of ways. Before you decide your next move, be sure to ask the Man Above (God) which way to go — and then listen. ” Not bad advise.