Re: my strategy on cars ...
Mine is to get royaly screwed up the ass.
[rotflmao]
Re: my strategy on cars ...
Melonie do you really think buying an extended warranty is worth it if you have enough money put away(invested, but easy to get to) to pay for any repair expenses that may come up. I would think that on a dependable 2-3 year old car it would be unlikely to get $1500 back in a three year term. I admit I am not sure what those warranties cover, but my guess is only major repairs.
Re: my strategy on cars ...
An extended warranty puts more money in the salesman's pocket. Nobpdy hardly ever needs a car repaired in 3 years or even 5 if it's new, or a couple years old! And i never take my car back to the dealer for work. (price is 40% higher, and i can still get mercedes parts.) Instead i find a certified Mercedes mechanic. I have had minor problems, and my car now is pushing 5 years old. Lots of miles now, 125,000 but i get my service check done faithfully every year. And the warranties do only cover major repairs, i fell into that trap along tme ago.
I think extended plans for car ownership is a rip. Very very few ever need to use them.
Re: my strategy on cars ...
I disagree, The first blazer that got me into the mess of uptrading was a real bomb, always something wrong with it, but I bought that one used, with no warentee available unless I purchased the additional one. It saved my ass and THOUSANDS of dollars. What I didn't like was always having to prove to the dealership who sold me the car and the warentee that they DID have to fix it, but I always came out the winner, they just didn't like having to put their money where their mouth was.
Re: my strategy on cars ...
Extended service plans (ESP) or extended warranties and the like are really not a good buy. My dad and uncle own a full service garage and it is amazing how many repairs they do that get turned down for ESP coverage. (What is totally amazing is how many repairs they get approved by the original manufacturer under so called hidden warranty.)
You can get really good results from following the manufacturers service schedule to the letter. That means if they say change the oil every 5000 miles, then do it every 5000 miles. Honda says change the timing belts every 60,000 miles. Do it at 60,000 not a mile over. Trust me, those timing belts are not good for much more. This service is usually not covered by an ESP.
Before you buy a car, have it looked at by an independent mechanic. Look over the service records and make sure the previous owner(s) has complied with all the factory maintenance. Some states, Indiana being one, extend lemon law protection to used cars. Most don't.
Re: my strategy on cars ...
I would agree that if you're in a situation where you have access to a reputable local auto repair shop and if you don't do much road work, that purchasing an after-market warrantee may not be the best deal. However, my own experience with Wynns warrantee and my 98 Eclipse was that the warrantee saved me quite a bit of money ($700 wheel bearings for $100, $500 tie-rods/linkages for $100, $350 radiator for $100, $250 alternator for $100). I may not have recovered all of the money I spent on the Wynns warrantee, but I got at least 3/4 ths of it back meaning that the Wynns warrantee actually wound up costing me maybe $400 out of pocket. The Wynns warrantee covers virtually everything which is not expected to wear out from natural causes, i.e. it doesn't cover belts, hoses, tires, lights, glass, body etc. but does cover most everything else.
But I buy the after-market warrantee for totally different reasons actually. #1 is to allow me to invest my money in high return investments which are not easy to liquidate on a moment's notice (like Euros in Switzerland, Gold bars, Chinese company stocks). If I had to keep an extra $2-3-4,000 handy to pay for a blown up engine or transmission, the best return I could expect on that money would be a money market or bank savings account at maybe 2-3%, versus 10%-30%+ returns by putting that money in these other investments. Over the course of three years I'm way ahead buying the after-market warrantee and freeing up this money for the high return investments. For you mathematicians out there, $3,000 *1.025^3 = $231 in money market interest over three years, versus $3,000 * 1.15^3 = $1562 in investment income over the same 3 years, meaning that NOT buying the Wynns warrantee would have cost me $1331 in lost investment income. If I decided to invest anyhow and was forced to sell at the wrong moment in time to cover a big auto repair bill, though, it could wind up costing me 10%-30% in investment losses (if for example the price of gold, euro exchange rate, or stock market had slumped temporarily when the breakdown occurred), having to pay 30% ordinary income tax rates vs. 15% capital gains tax rates on the investment income by selling it before the 1 year capital gains period was up, etc.
#2 and of far more importance to me is the woman alone on the road scenario. If you use your car for road trips to clubs hundreds of miles from home, you never know when something serious may break down. If I have the after-market warrantee I just make a call to Wynns, they steer me to a local repair shop, and the shop people know that all they are going to get out of me is the $100 deductible no matter what's actually broken. If I were to be towed into a strange repair shop in a strange city without a warrantee, I might just as well pull down my jeans and say "fuck me"! To paraphrase the TV commercial ... "cost of not being fucked up the ass by an out of town auto repair shop who knows they'll never see me again ... PRICELESS".
I agree completely with Sofia that the best way to save money on car repairs is to establish a long-term relationship with a local garage, and then to follow the manufacturer's recommended maintenance schedule RELIGIOUSLY. Camshaft timing belts cost $200 to replace every 50k miles, but if you break one on a high performance engine and the valves hit the pistons you can kiss your engine goodbye (as well as about $3-4,000). Grease, oil, hoses, belts, seals etc. are all very inexpensive to replace at recommended intervals compared to paying for the damage that can result if you "press your luck".
Re: my strategy on cars ...
how about certified used cars? I just bought a 2000 Lexus last week. It had 30,000 miles on it. It came with a warranty for three additional years or 100,000 total miles...and that's bumper to bumper, not just powertrain. I financed it at 1.9% (promo rate with dealership), so I didn't see any point to putting money down.
If you need service, they will bring you a loaner car and take yours. if you are out of town, they will put you up in a hotel and repair your car for you! The maintenance costs aren't that much more than I was paying for my VW, so I really like this company!
But you have to buy a "certified" one from a Lexus dealership, not just any ol' used Lexus.
Re: my strategy on cars ...
Emily, the "certified" pre-owned car deal is big with the luxury names in the business - Lexus, Audi, BMW, Infiniti, Porsche and many others ... and carries a fantastic warrantee. Also, since these 'exotic' brands usually require that you take them to the dealer instead of just any old garage, you're much better off with the extended manufacturer's warrantee they offer than an after-market warrantee which the dealers and warrantee company would constantly dispute. But the kicker is ... what the TRUE cost of that extended manufacturer's warrantee was. The answer to that is the difference between the price you paid for your "certified" pre-owned car versus what you would have paid buying the same car outright on the used market instead of from a Lexus dealer as a "certified". You can answer that question to some degree by finding out what an equivalent 2000 Lexus to yours is being advertised for by Lexus dealers at (typically $27K for a "certified" 2000 ES300) versus direct sale prices from non-Lexus dealers at (typically $20K for the same 2000 ES 300).
I would never be without some sort of warrantee on these exotic cars either, both because the cost of parts and labor at exotic car dealerships is astronomical and, in many cases, parts are extremely hard for non-dealer garages to obtain. Again this may not be a huge issue if you don't do "road trips" and if there is a "certified mechanic" in your area that you can form a long term relationship with.
While I love 'exotic' cars, I personally stay clear of them because of the high insurance costs, the high repair parts costs, and the distance between dealerships in many parts of the US (the nearest 'exotic' car dealerships to my home are 60 miles away, and the distance between "exotic' car dealerships and some interstate highways can be 100 miles plus). Of course these factors aren't an issue if you live near a big city and if you don't do many "road trips".
The other issue with 'exotic' cars is that the "depreciation curve" is longer than that of normal cars. For example, a 1997 ES 300 only sells for about $10,000 today, meaning that in three years your 2000 Lexus is likely to sell for about the same price, or $10,000 less than you paid for it. Compare this to the $11,500 I plan on spending soon on a used 2001 Mitsubishi Eclipse. A 1997 Eclipse still sells for about $7,500 today, meaning that in three years my 2001 Eclipse will probably only sell for $4,000 less than I paid for it should I choose to sell it. True, it's nowhere near as nice of a vehicle (drool, drool!), but you're actually spending 2 and 1/2 times as much to own your Lexus from year three to year six as I will to own my Eclipse from year three to year six.
Now, if the vehicles were bought new and sold at three years old it would be an entirely different story. An new Eclipse would depreciate from $22,000 down to about $11,500, while a new Lexus would only depreciate from $33,000 down to about $20,000, meaning the actual difference in cost in owning a new Lexus for 3 years versus owning a new Mitsubishi for the same 3 years is only about $2,500, compared to a $6,000 difference between year three and year six!
Damn! Now that you've got me thinking about this whole depreciation curve thing, and drooling besides, that new Audi TT Quattro that I've been fantasizing about has an even more favorable three year depreciation curve ... But I'd have to sell my Gold bars to buy a car that expensive and the price of Gold hasn't hit $400 an ounce yet! Besides, the insurance costs would be brutal and some asshole would probably steal it besides ! I guess I'm just too much of a cheapskate and too practical to ever let myself own a really nice new car.
Re: my strategy on cars ...
I know someone who has the convertable AudiTT quatro, IT IS NICE!!!!!!!!!!!!
Rides like a dream, he loves driving it! Super cool car!
Re: my strategy on cars ...
I have test driven a new Audi TT Quattro (the model with the monster engine) and I fell more deeply in love with it than I ever did with a guy LOL! It would be the perfect car for me up here in snowdrift country, it would eat up the interstates, and be just as great and sexy looking in the big city. But it's just too damn self-indulgent for this simple country girl to justify spending $40,000 on ANY car, unless I planned to drive it 1000 miles a year or less, only on sunny days, mothball it except in the summer, and sell it to a collector 25 years from now for $100,000+.
Re: my strategy on cars ...
gosh all of you girls seem right on top of things :)... im still looking to buy a bmw,lexus or another mecedes but its hard to find a dealrship that is any count :-/...... i looked on kbb.com but im all out of ideas can someone please wake me up from this confusion. ???i live in charlotte,NC so if you have any ideas im open to them :-/
Re: my strategy on cars ...
www.mbusa.com will pull up the starmark benz's in your area, lots of c and e classes. www.carmax.com has a lot of acura and bmw.
Re: my strategy on cars ...
Mel....I don't know if you can compare two Lexuses (Lexii). At least from what the dealer told me (which, I understand should be taken with a grain of salt) is that when lexuses go up to the auction block after the leases are up, Lexus gets first dibs on them. They will take the ones that they believe will pass the certification and auction off the rest. Granted, there are probably some good cars out there that would have passed certification but are sold through other methods, but how would you know which they are?
I did see my car on ebay motors for about $3000 less that what I paid for mine, but I figure for the additional warranty and the finance promo (1.9%), it was worth it. I also like the way my dealership handles servicing the car.....and they sent me flowers! :)
But I see what you're saying about the rate of depreciation. I just couldn't escape the drool factor of the Lexus. But Mel....you are always seeing the big picture in terms of dollars and that's cool.
Just out of curiousity....what's the most you ever paid for a watch?
Re: my strategy on cars ...
Quote:
But I see what you're saying about the rate of depreciation. I just couldn't escape the drool factor of the Lexus. But Mel....you are always seeing the big picture in terms of dollars and that's cool.
Just out of curiousity....what's the most you ever paid for a watch?
Well, I'm definitely not immune to the drool factor either (the Lexus convertible hardtop makes me weak in the knees!), but I can't help having to do the financial analysis that goes along with the drooling. Every time I add up all of the direct and indirect costs involved, it comes back being way too much money for me to justify - particularly if it actually means my having to dance an extra night every single week for the privelege of driving a supersexy brand new car versus a semisexy dependable 3 year old car.
As far as watches go, I usually buy $12.95 WalMart specials to wear to clubs, although I do have one $250 German watch for those occasions when I need to look like a respectable successful businesswoman.
http://www.meloniecharm.com/images/photos/melbiz.jpg
Re: my strategy on cars ...
Brooklyn, the VW dealer in Winston-Salem, Force I think, seems pretty good and he sells Audis too. But, in buying a car, I just use the internet and get firm quotes. After I have the firm quote I want, I'll go look at a car on the lot on a Sunday to make sure I'm not getting a real pig. Then I'll email my acceptance, subject to a pre-purchase survey by an independent mechanic if it's for a used car. I use a guy in Raleigh, Quail Corners Texaco. Once I have an agreement with the dealer, then and only then do I go in and just to hand over the check and pick up the keys. Unless there is something seriously wrong, and it can only be dealt with by the dealer, I never go back. Dealer service is notoriously poor and over priced. There's a good Benz shop in Raleigh. If you want his number, I'll try to find it.
HTH
Z
Re: my strategy on cars ...
We have our share of the Audi TT Quattro's running around here. And the Lexus coups. Good looking cars. Worth the price, i don't see it. I still and always will like a hot Porsche. (1989 turbo all tricked out around here is bad, a doctor restores them.) But i have never found a better car than my mercedes. I did not buy from the dealer, and never would. I did before buying the car, make sure we had a shop with a mechanic who is a specialist in the 'more' exotic' cars. He wont work on chevy, ford etc. Alot of people can work on them themselves, or we have lots of shops that do Chevy and Ford. But thats him.
Problem is we fall in love alot of times with a "paint job" i think, and then we can get a lemon. I had a BMW, sat on it until i found the mercedes. Kept looking until my mechanic said runs smooth, looks like no problem period. Solid frame. I was happy with that. 1 month later my AC went out. I freaked! Thank god i needed freon!
These Damn cars are built tough, and i know alot of people may not think a Volvo is pretty, i do. And they are strong runners too. How many have you seen rusted, very few. Solid body! Frames have the longest life of all the cars made for NOT rusting.
We all have our preferences, and CarMax was mentioned here again. They are good for Honda, toyota etc. And they are the top selling cars still!
Also Mel. Don't worry about that Audi getting stolen, they look for "generic type cars that blend in" again Honda and Toyota mainly silver or greyish type colours.
Pamela :)
Re: my strategy on cars ...
See? Chicks can talk about cars too! :D
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thanks Zofia :)....i know the place in raliegh because that is where i leased my last benz and i love that dealer ship ;D ...its called leith mercedes and benz ... i think thats probably where i will go back to buy my car... because the other dealerships make things so nerve racking. :obut thanks for your help and everybody else to .it is so good to have a second opinion to finalize your own. :-*
Re: my strategy on cars ...
Maybe this is just my daddy speaking but I think german cars are THE most reliable. VW's are very good but I've had my BMW for over a year and it's NEVER broken down. Audi's are cool but they are so insanely expensive to repair since all the parts are on top or built into one another. BMW's can be a little bit expensive to fix too... if you get it done at the dealership. DON'T EVER DO THAT!!! Another tip I learned from daddy :) privately-owned repair shops who speicalize (ie: in german cars) are more likely to actually CARE about your relationship with your car and not rape you up the bottom ;)
Re: my strategy on cars ...
my VW Cabrio hasn't broken down in the year+ I've had it, but it's a 2002 :)
I have a good feeling about buying both German and Japanese (as mentioned before, I have a Lexus RX300 as well.) I always see old VWs around. My first car (in '93) was a 1968 VW. My Dad drove his BMW to death -- about 200,000 miles.
But all this seems to be true for Toyota and Honda. I had a '99 Mitsu Eclipse and I had issues with it. I took it in for waranty repair 3 times in the 3 years I had it, so I don't believe in all Japanese companies the same way.
I will never buy a domestic brand. I'm so unpatriotic... :(
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I have great faith in one non-profit company which for decades has road tested cars and has collected reliability/repair data from people who own cars of particular years and models. They offer a report which shows the average reliability of all sorts of cars made throughout the world. They're at or you can also pick up the magazine version at a newsstand. There's a free web page at
which covers some of the cars discussed here.
One of the bizarre things I see in the full report is that some brands of cars have excellent reliability on some models, but crappy repair histories on other models. Similarly, the same model made in one year may be much more/less reliable than the same model made by the same company a year earlier or a year later. IMHO this is definitely worth investing a few bucks in to research any used vehicles you're getting serious about.
Re: my strategy on cars ...
thanks for all the helpfull advice on cars ;) this stuff is very helpful for me right now because i still havent purchased a car so all the great advice helps... [idea]
Re: my strategy on cars ...
I got a car today girls and im very happy ;D...i got a 2000 lexus es300 for 20,000 used with good miles and a extended warranty :).....again thanks for everyones help ;)
Re: my strategy on cars ...
sounds like you found a good deal, Brooklyn!
I wonder what opinions some of you might have on a "new" vehicle which is beginning to appear on the used car market - the Subaru WRX ? It's not as "sexy" in appearance as some others, but it does have 200hp, full time 4 wheel drive, an excellent reputation, and a price in the range I'm willing to pay.