Cars & Motorbikes Do you consider your car to be an investment?

Discussion in 'Living Room' started by kimba88, 29th Dec, 2015.

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Do you consider your car to be an investment and upgrade it every few years?

  1. Yes, i upgrade every few years to avoid mechanical hassles and its easier to sell

    4 vote(s)
    8.5%
  2. No, i'm happy to keep my car and pay for whatever mechanical issues that come about

    43 vote(s)
    91.5%
  1. Jkat

    Jkat Well-Known Member

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    I have a 2005 Ford -- the reason I chose this car is because it is reliable and when it does need servicing or parts it is cheap. If I were to buy a new car I would consider a different type. I have bought mine second hand for about $4-5k in 2010 or 2011 (can't remember). I have had to spend a little bit on it for the annual servicing/check and a few repairs but am still well below what I would have spent had I bought a brand new car or even a nicer car.

    EDIT: My car has over 300,000 km and still works absolutely fine. It was an ex-taxi

    To me, a car is just something that gets me from point A to point B and considering the drop in value/depreciation I don't see the point/value in buying something 'luxury'.

    Just my 2c
     
  2. Barny

    Barny Well-Known Member

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    Can I give another real example from car sales. Kia cerato.
    Say you keep these cars for 5 years.

    2005 model cost 3-4K with around 150000km. Then you have additional service costs as the higher km mean timing belts etc need to be done more frequently. Add about 1800 for these additional service requirements. I don't have a partner to do it for free, my wife wouldn't know where to start. Also it takes hours of labour to do so I'd make better money working than trying to perform myself and stuffing it up.

    So if nothing ever goes wrong in 5 years, your car will cost about 4K which includes on road costs. Plus 1800 for additional services total cost 6800/5 years equals 1360 per year.
    ( I have never now known car to not need any fixing during ownership, especially 5 years)

    2010 model Kia cerato. Cost 8k around 80000km range. Plus on roads bout 9k all up. Then a couple services 1200 for the additional belts. Sell price 3k. So total 7200/5 years equals 1440 per year.

    2015 model 16,000 drive away with little or no km.
    Free 7 year warranty and capped servicing. Still need to pay for services but since it's low km, no need for the higher service costs.
    You can sell it at year 5 with 1 to 2 years warranty remaining for $8000.
    So total cost over 5 years is 8000/5 years equals 1600 per year.

    If you buy one without a warranty and a gearbox blows, or engine issues then add thousands to the price. A gearbox can cost 2-3k without warranty, up to 6k if a new one is needed.
    An engine fail will cost much more.

    Hopefully this helps.
     
    Last edited: 29th Dec, 2015
  3. inertia

    inertia Well-Known Member

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    Do you include insurance and registration in your costings?

    Cheers,
    Inertia
     
  4. Barny

    Barny Well-Known Member

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    No, not included. As every car regardless of age needs insurance and registration. Rego is the same cost. Insurance will vary a little
     
  5. inertia

    inertia Well-Known Member

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    I didn't bother voting as it is a skewed question. Cars are not an investment (unless like @Tillie it is basically an antique and I doubt you would be using it as a daily driver).

    I used to want a brand new flashy car, until I did the maths on how much it cost. I was all set to buy a car on a novated lease, but it was going to cost me $1k out of pocket per month PLUS required me to drive more - I didn't want either of those things, so I paid $6.5k cash for a 10yo, 100k on the dial mazda 626, and it was awesome.

    Current car is a Toyota Kluger, terrible on fuel, but we don't drive much so its not a big issue. Was purchased when we found out we had twins on the way. 2004 model, purchased mid 2010 for about $25k (I think half the price of new) with 79k on the clock. We add about 7500km a year (usually including a road trip to Brisvegas or Melbourg, or as per this year the snow fields). Current value is $7k-$9k.

    I will look at replacing it in the next 12-24 months, and I will probably go for something around 2-4 years old. given my own low kms per year, I could probably go for a vehicle with higher relative kms, so pay less, but lose less value with my usage...

    Cheers,
    Inertia
     
  6. Phantom

    Phantom Well-Known Member

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    A relative of mine had a Holden Torana A9X hatchback. It was the last one ever made. He bought it new in 1977/78 for about 10k. He used it as an everyday car then retired it after he got a company car a few years later. Fast forward more than 30 years and a car collector tracked him down and made him an offer he couldn't refuse. Apparently he already had the first one ever made and he wanted to add the last one ever made to his collection. In this case I'd call that car an investment. Your everyday common car isn't.
     
  7. Daniel007

    Daniel007 Well-Known Member

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    Wow, i'll ask my dad if he knows the car, he's quite into the torana scene himself (got 3 currently, unfortunately not an a9x).

    Only 100 A9X hatchbacks made, probably upwards of 200k if sold at the peak of the market a few years ago.
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Another torrie here - slr5000. As you say the market is not quite what it was a few years ago when Aussie muscle cars were going for insane prices.
    Our newest car is 2008 our oldest car is a 48 Chevy pickup.
     
    Daniel007 likes this.
  9. wogitalia

    wogitalia Well-Known Member

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    Cars are a liability... there is really no other way to look at them (unless you use them for Uber/courier or work of some kind!).

    That said, if you understand that and want a new car then why not, the newer models have a lot of nice features that make life better (Bluetooth, seat cooling/heaters, reverse cameras, usb, GPS and the like), if you spend a lot of time in your car then it's worth spending some money to make that experience more enjoyable. It's really like any other expenditure, buy what you can afford. If you don't need or want it, then don't do it.
     
  10. bob shovel

    bob shovel Well-Known Member

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    Go team torrie!
    [​IMG]
    I had an lx with some hoon gear 202 lowered, 350 holley, exhaust. The servos were especially fond of it :D
     
  11. Phantom

    Phantom Well-Known Member

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    Your estimate was actually spot on. He got 200k for it. He was happy because he it wasn't even in great condition. It needed some body work and minor repairs. But it was the last of its kind and the collector was desperate for it.
    The 200k was spent on landscaping the guy's PPOR. :D
     
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  12. Travelbug

    Travelbug Well-Known Member

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    I think it was $25,000 (which was a lot of money). It was a Toyota Camry. We bought it at 18 months old. In 12 years I put a new alternator in it. One battery and a set of tyres. We sold it for $3,000 (probably could have got a little more but I'd already bought the new one). Don't know the mileage, not huge. 2 trips to Queensland a year and 100km a week to work etc.
    We got services the first few years then hubby did it (change oil etc). Just kept going.
     
  13. T.C.

    T.C. Well-Known Member

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    My car is an investment into my families lifestyle. It's a v8 diesel landcruiser wagon. So it can take my family to all sorts of out of the way places. It can tow our skiboat. Tow our camper trailer. Tow 4 dirtbikes around. It goes great on gravel roads. Has good ground clearance so can do rough stuff. It's a bad investment decision financially, but who cares about that anyway, you can't do this stuff with your family after you're dead can you?

    My other car is a v8 diesel landcruiser ute. Anyway, it's a work vehicle. For work.

    I was at a farmers field day a few weeks ago. Out of 30 vehicles, 28 were Toyotas. Either landcruisers, hylux's or prados. I'd reckon that would be typical for around these parts.

    See ya's.
     
  14. T.C.

    T.C. Well-Known Member

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    Just to clarify,

    "Do you consider your car to be an investment and upgrade it every few years?"

    I find the question a bit confusing? I certainly don't see a car as an investment financially. But since I like to keep it up to date and change over about every 5 years, I voted YES.

    There's probably 2 very different questions that are asked here.

    See ya's.
     
  15. Blacky

    Blacky Well-Known Member

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    Is it an investment? definately not.
    Is it a neccesary cost (overhead if you will) - yes.

    You just need to find the most economically benifical way to incure the cost.

    For some it will be a new(ish) car every few years.
    Others it will be buy new(ish) car and run it till it dies.
    Some will buy a heap of junk and keep it alive for as long as possible.

    I dont own a car as I travel too often. Ill mostly use taxis - or if I am in one location for long enough i will rent a car.
    If a car costs $2,000 to keep on the road a year. Plus $100/week in fuel and $5/day in parking it is a daily cost of $25 over the year.
    Can you change your transport method and spend $25or less each day? If so - is the savings worth more or less than the inconvience caused by not having a car?

    Well - there is your answer.

    Blacky
     
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  16. Barny

    Barny Well-Known Member

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    That's an excellent low cost car over the years.
     
  17. willair

    willair Well-Known Member Premium Member

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    Bit hard to vote in this one,is a car a investment i would say yes,but not from a money angle,only safety that within itself is priceless,and that's one item you see at the motor auctions in the right-offs ,rear impact head on not many walk away from the only one that seem to cop the impact are some german cars ,i only drive second hand cars that every time i go too the petrol station and fill up petrol they double in value..
     
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  18. Scott No Mates

    Scott No Mates Well-Known Member

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    It's a tool of the trade. If it's a ute, it goes without saying. Something less versatile well....
     
  19. kimba88

    kimba88 Well-Known Member

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    Wow, thanks for everybody's response!

    Just to clear things up, that i probably should have mentioned in my original post..

    - I have a 2011 Hyundai i30 2.0L Auto purchased as USED with 4000km and with remaining warranty
    * I'd only upgrade to either another hyundai i30 2015 1.8L (smaller engine.. better on fuel?) with 5yrs warranty, Kia rio or cerato (made by Hyundai anyway) 7 yrs warranty.. i am also considering a mazda cx3

    - Although my car is currently mechanically sound, its the upcoming costs like the timing belt (was quoted $1200) i don't look forward to. The 2015 hyundai i30 apparently has a timing chain - less hassles than a timing belt.
    * My friend owns a 2010 hyundai i30 and ever since her warranty ran out, weird things have been happening to the car e.g. the back passenger side door locked itself and could not be unlocked. The mechanic spent hours trying to unlock it after taking the door apart.

    - Previous history of my car:
    * Not long after purchasing my car, i realised my car had a problem with it's gearbox. It kept having high revs and the whole car would shake when changing gears. This problem was fixed under warranty - luckily.. as the parts for this were over 1k.
    * My radio also needed replacing as it would go completely black and unreadable in the heat. Also replaced under warranty.
    * My brake light switch was replaced under a recall

    - Current history of my car
    * I've just needed to replace my headlight again after only 6 months or so of use - i'm unsure if that's just the headlight or if the car is now going to start blowing them more frequently.
    *My car is currently parked on the road in direct sunlight when going to work.. this has disintegrated the rubber seal around my windows lightly. No leaks happening.. but i can see the rubber is forming small cracks in it.

    In saying all this, with the previous/current history of my car, i have no hesitations in purchasing another hyundai. Hyundai have been very good with their warranty claims.

    I understand an "every day use car" is not an investment as such, but it is a depreciating asset. Hence, when i purchased my car for $16,800 in 2011, i was still ahead for a year and a bit before it depreciated to the point i could no longer sell it for profit. This is the type of deal i would be looking for again (wish i had more luck finding properties like this). I am not really considering a brand new car, because i know how much you lose as soon as you drive the car out of the dealership. I am also not looking to spend much.. i would be hoping for no more than 5k extra out of pocket (once selling off my car). With that 5k i also get peace of mind with 5+yrs warranty though.

    I'm not necessarily trying to convince myself into buying a new car, but i was trying to see if anybody else thought the same. I know there are cars for investment purposes (collectors, etc), but this is purely for every day use only. As far as i know, i haven't actually lost too much in depreciation anyway over the past 4 and a bit years. Although i have looked after her.. servicing her twice a year :)
     
  20. Mombius Hibachi

    Mombius Hibachi Well-Known Member

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    I don't own a car (haven't had one for 20 years), but I look at a car in the same way I look at everything else.

    If you enjoy it and it gives you pleasure, then it's a good investment. That investment doesn't need to be a car, it can be anything. Travel, a portfolio of IP's, a giant house, record/book collection, heck - even a stamp collection if that's your thing. Whatever, right? Enjoying what makes you happy RIGHT NOW is an investment, dudes.

    This is why I can't stand the whole 'mindset' industry. It's snake oil sales BS dedicated to keeping people on a treadmill they can never hop off of. There is always something bigger and shiner to aim for. You can't ever be happy with what you have, because you're supposed to always be pushing for something more. F__k that noise. The only thing the mindset industry is dedicated to is making more money for the mindset industry. Jim Rohn said 'You are the average of the five people closest to you'. Yeah? Well, if I'm the average of the five people I'm closest to, then I'm damn happy because those five people are goddamn marvelous human beings and NONE of them are 'successful' in the mindset ideal. In conclusion: Jim Rohn can kiss my a__e.

    I prefer to view life as "What do I need to do to increase my income such that I can enjoy *insert whatever you like doing here* right now, rather than having to wait until... whatever 'goal' has been achieved?" No guarantee you're going to do whatever it is that makes you happy at that point (assuming you're still alive), even if you have the monies to do it, because the thought process that got you there isn't going to magically disappear, innit.

    I chased goals back in the day and when I achieved those goals, all I did was raise the stakes even further, because it was never enough. Lead to a life of misery, because I never felt like I was ever good enough. Nowadays, I just cruise, doing my thing and enjoying life. As long as I'm moving forward, I'm happy.

    Tightarses tend to be tight for life.
     
    Last edited: 29th Dec, 2015