Hi everyone, check out one of my most popular videos: Retirees Spend 80% of Their Income in These 5 Areas | How Do You Compare? This video just cross 650,000 views! kzfaq.info/get/bejne/jdR4dpx80d21Xas.html

You missed a big deal for retired people -- newer cars have much better driver assist technology. Distance maintaining cruise control, back up cameras, collision avoidance, lane keeping, blind spot assist, etc. Sure, I can and do safely drive my old truck without any of these features, but it is surely helpful to have a co-pilot.

Your best plan in retirement is to have NO debt. Just buy whatever car you can afford to pay CASH for...the end!

Since I am a mechanic, I buy older cars and keep them forever doing all my own repairs and maintenance. A car costs me around $400 a year that way.

I'm a proud bottom feeder. I only buy used cars from private owners, and I prefer buying from wealthy older people because they typically maintained their cars and didn't abuse them. I hold them much longer than Jeoff would recommend, but I've been lucky with only one major repair bill in 20+ years.

Now that I'm retired, just the thought of car payments makes me cringe...

Never lease and always pay cash for at least a 1 year old vehicle and drive it until the wheels fall off, put them back on and keep driving it. It's been money in the bank for me for many decades. All my cars and trucks are considered new if they have under 200K miles on them/'showroom fresh'.

I bought my hot rod daily driver brand new in 2018 when I was still working. I had it paid off a year and a half later. I plan to keep it until it drops, or I do. I retired debt free at 59 and plan to stay that way. car payments are not an option. As for Leasing, Dave Ramsey calls it "Fleasing", and I agree. You'll always be upside down and in payments. When you are retired and on a fixed income, one of the last things you need is a car payment that never goes away.

Funny story, I recently pulled up to a well known restaurant in my 2010 Honda Accord and had it valeted. They looked at me funny!! That night we had a $250 meal and by the way I tipped the valet $25. Silent wealth is the way to go!!!

I live in Boca Grande area and unfortunately, I need to purchase a new car. I knew the market was out of control and I just couldn’t justify spending that much money because my portfolio has lost over $27000 this month. alone my profits are tanking and I'm don't see my retirement turning out well when I can't even grow my stagnant reserve.

I’ve worked and saved my entire life so I could enjoy my retirement. During my working life I drove vehicles for a long life span. I lease in retirement because I want a reliable vehicle with the best safety features. I’ve earned it!

I am currently driving a 2006 Pontiac Vibe with 146K miles. I bought it in 2007 and paid cash. It has a Toyota Corolla engine and has cost me very little in repairs over the years. I keep thinking I would like to buy a newer car- OK if it is 3-5 years old. But there is nothing wrong with the car, everything works, including the air conditioning. And cars cost so much now, that I keep putting off even looking for another car.

My spouse and I (retired with 600K in 401K, 100K in cash and $3675 in combined monthly SS) have no debt and we own our home. We “treat” ourselves every 3 years to a new car by leasing. We like to say it’s our only vice. I know that it is technically debt, however we can easily budget a payment of less than $400 a month and a small down payment for a new Honda CRV every 3 years. It works for us. Good video, BTW. Thanks!

Steve in Florida caught your video and enjoyed it thank you. Found video to also be educational and interesting.

Excellent video! I appreciate the great effort you made in calculating the differences between the strategies. I will definitely be looking for a great used car when the time comes 😊

Excellent discussion as usual. Funny situation in our case. We have a 2005 Toy Corolla as our only car, it is at 225000 miles. We are retired. We have plenty of money for a car purchase but I just can't bring myself to do it. The Toy is paid off runs, great (with exception of the oddball check engine lamp every now and then) is cheap to register and gets pretty decent mileage. I look at cars, ICE, EV, whatever... and they are just crazy crazy expensive. I just think about $40 grand sitting in the driveway doing nothing 95% of the time depreciating, registering, insurancing ...and I just say...NO. The most expensive major repair I have done was struts at $700.00 about 10K miles ago. Other failures too but not crazy expensive ones. I seriously wonder if I will ever replace it. As long as parts are available I can do major repairs for the cost of a one month payment on the Camry, maybe two months if something really bad comes up. The other thing you may be missing in your model is obsolescence. Makers are loading these new cars with screens and software and yada yada. How long did your tablet or smart phone last, when did you need to do a software update, how much hassle was that update, could your new car be bricked with a bad software update, how much is mfg going to charge for subscriptions for those software updates? The simple old 2005 Toy is running just fine 18 years after purchase, not a single software issue and all the old LED displays work just dandy, not going to happen with modern cars...period. It is enough to make you want to buy a bicycle. The worst thing about this is we look like paupers when we show up at our friend's house. I just park out of sight, stroll in and tell em a limo dropped us off.

I turned 65 just the other month and still drive an awesomely reliable 2004 Honda Pilot. I've been thinking that it's going to last forever and thought what to do to replace it. Just started to watch this presentation and thought it so timely that I wanted to comment before continuing on. I'm sure the info following is great. I hope. :)

Hmmm Ive leased my last 3 cars and happy to do it. As a single retiree I must have a dependable car and people that help me when I have issues. Comfort and peace of mind more important to me!!!! Thanks for the video

I just bought a new 2023 Rav 4 Hybrid for msrp + 400. Total cost 38,200. I paid cash. I plan to drive it for 300,000 miles. @ 10k miles per year, it should last for 30 years. I'm 71. My daughter, an actuary at a life insurance company tells me, it may last longer than me. I also have a second vehicle. It is a 2018 Tacoma TRD Off Road Long Bed truck with 23,000 miles on it. I bought it new and it is now worth the same as it was when new. I have a longevity problem, not a car depreciation problem.

I am not retired, but hopefully can retire in 9 years when I hit 60. My wife and I always set aside $500 a month on maintenance/repair/new car fund. And we have always buy Lexus. Always buy them in cash, maintain it well and drive it until it doesn’t make financial sense. It works for us for last 20+ years,

Excellent advice on this topic 👏👏

255,000 miles on our 2010 Honda Pilot so far...and it's still running just fine, thank you. Regular service/maintenance on 5,000 mile intervals has been our approach. Still driving it on long-distance trips (Alabama to Texas) to visit family, but doing so is starting to make me a little nervous.

Excellent video...good job

I've been retired what will be two years this December. In 2001 I bought a new F-150 and it served me well including after I bought a travel trailer in 2020. Fast forward to 2022 and realized that it wasn't up to the task safety and reliably wise and bought a new 2022 F-150 with cash. I kept the older truck as it was like an old friend. However, it became apparent that it was costing me time and money keeping it washed and insured so I recently sold it for a decent price. I then took that money and put it to some good use, making improvements to my home and acquiring a utility trailer. The point is, I kept my vehicle for 20+ years and bought new hoping to get another 20 years from this truck when I'll be "near the end of the road". It's really all about timing and need.

😊 Great video ~ 1 year old car right from a reputable GM dealer. I try to find a good loaner car from a dealer that was only used by that dealer for test drives or as a loaner 10,000 miles or less. Some people in retirement treat themselves to a newer vehicle every few years and why not they earned it.

Very nice info, wish I knew this info when I was younger! Can you do this analysis again, this time using a New Tesla Model 3 or Y versus a Used 3 or Y versus a lease? A lot of older people (myself included) are holding off any purchase of any car, for an EV as their next car purchase, and many factors are different for us making the switch - especially the following: 1 Cost of New vs Used, 2 Resale Values, 3 Major Repair mileage expectations on EVs, 4 Cost of non warranty repairs, 5 Length of Mfg Warranty, 6 Lease terms, and finally 7 the $7500 tax incentive (which turns into a $7500 sticker reduction in Jan 2024). As you can see, there are lots of interesting variables that can benefit from your analysis. Thanks.

I own a 2007 Toyota Tundra I bought from my former coworker, who happens to be a very big car head, with 43,100 miles on it. He has his own workshop & takes extremely great care of all of his vehicles. He takes them to car shows & contests. As of 08/2023 my Tundra has 68,258 miles on it. I drive it to my real estate properties & I get a write off for those miles every year. It's been a great vehicle & I'm treating it to a, sort of, face lift... New tires, new rims, detailing, buffing, protective shield coat all the way around & a new undercoating. I had it re-undercoated in 2016 & the tech told me it's the cleanest '07 he's ever seen. He said they're usually getting early Tundras needing metal replacing & not just a fresh undercoat. No repainting needed. I learned from a 1993 Toyota I used to own that had chunks of rusted metal fall off when I would slam the doors shut. Not again. I want to be able to drive it for another 20 years. Here's hoping

We love crunching the numbers! We love used vehicles, but are also aware of when it isn't the better deal. For my husband's work truck that had certain work requirements, buying a brand new Toyota played out better financially for his work compensation. We own that outright so we will sell it when he leaves his job. For our family vehicle, buying about 10 year old vehicle with 100K already on it seems to bring our vehicle ownership cost down to $100/mo or less over the course of the average 7 years we drive it. We are very likely to downsize to 1 vehicle in retirement and look for a gently used option. They are also a lower cost to insure. I think our current vehicle might not last all the way until retirement so we will replace it considering the information you share.

Brilliant, through review.

My current vehicle is a 2009 Dodge Charger. I purchased it new. It is currently over 14 years old and has just under 90,000 miles. I've always worked very close to my home (15 minute drive) and have been working from home the past few years so I haven't added a lot of miles. I'll probably be thinking of getting a vehicle at some point before retirement, so thanks for the info Geoff. 👍

Thanks Geoff!

The normal “rules” for car buying currently remain warped due to the lockdowns. In our market we regularly see 1-2 year old cars with prices the same or very close to a brand new car! This particularly applies to the bulletproof models frugal long term buyers seek - Hondas and Toyotas. So always compare the price you’re about to pay for a used car to the brand new price.

Maintenance is key when you purchase used, I like used because of the utility value and the ease of paying it off, having said that I've had great success in the market, The rule of thumb for me is if the maintenance cost is approaching the cost of a new car payment annually, then it is time to let it go. I like to drive them until the wheels fall off. 2013 GMC Acadia bought at 60k mi and presently at 170k mi. I ain't mad!!

Our retirement vehicle decision revolved around a) what style was best for the lifestyle we expected, and b) would we be comfortable with a single vehicle? Style - I had driven a Lincoln Navigator and my wife a Lexus sedan during our career years. We settled on a Lexus crossover (in our case RX 450hL); we envisioned road trips and, from time to time, hauling grandkids from place to place. The longer version of the Lexus RX, with a very tight 3rd row seat at least enabled us to transport more than two grandkids at the same time. Likewise, with that 3rd row folded down, permitted us ample space for road trip luggage. Finally, Lexus has a superlative track record of quality. Single Vehicle - we gave this a "go" for six months initially, having "figured" that there were few instances we'd be going two different places at the same time so why bother with the care & maintenance (let alone the cost) of a 2nd vehicle. This decision proved prescient for us - we're now going on our 4th year with a single vehicle and can count on one hand the instances where we've been going two different places at the same time. In those instances, we've either used an Uber, or caught a ride from a friend going to the same event one of us was attending while the other used the car. Finally, regarding the question in this video - we bought. Our Lexus RX450hL was purchased new, cost us around $60K (for which we paid cash), it has 83K miles of responsible use and has a trade-in value of $31K.

Thank you for sharing your wealth of knowledge

The reason to buy new (vs. used) is to get the factory bumper-to-bumper warranty. My 2011 Acura MDX still looks great, so I did very well.

Great information. Thanks

Did I miss something.... Schmidt never stated what was the "Best" way to purchase a car in retirement.... ? He just summarized the 3 options. A Conclusion/Opinion would have been nice.

Nice and thorough breakdown of the scenarios. Only two things - one is adding a consideration on how many driving years are left. Second, carfax is borderline useless. Major repairs done by car sellers are likely to not be reported.

I have a 2014 Honda Crosstour I bought preowned certified from a dealer. It now has 101K miles and runs really great! Love Hondas. I never purchase new and have had great success

I always bought used, luxury cars while raising a family. 2 to 4 yrs old with low miles, Buicks and Lincolns, some paid cash, no payments. Lately I have bought new cars, Chevy's, a 2018 Camaro and traded it in for a 2019 Impala. My Impala has 15,000 miles & I plan on keeping it, since V6 sedans went away. New cars with turbos won't last as long, major work on turbos at 75,000 or so.T4 Cars you'll be lucky to get 150,000 miles. My Impala will last 300,000 miles, similar to last V6 Camry (that you can't get anymore, they killed the Avalon)

It's funny that when I shop for a vehicle that is 2-3 years old, dealers are asking for prices that are at or above the original sticker. In the past, it might have been cheaper to buy a slightly used car but that isn't the case today.

I occasionally check the service records on used cars for sale at local dealers. Shocked to see how few cars are maintained. Not uncommon to see oil changers rarely done or transmissions never serviced. Do your due diligence. Some cars are smart to lease like BMWs due to the cost of servicing the vehicle. Don't lease a truck because of the high rate of depreciation. A Lexus has a low depreciation so a lease might be a way to get into a vehicle you wouldn't otherwise be able to drive. I'm a fan of buying a Lexus that just came off a lease because it has taken some depreciation and was serviced.

Very useful information - ty

ALL great advice. I don't mean to be argumentative but the accountant in me, says by picking auto's that do not depreciate as rapidly as others & maintaining them above average, makes a big difference. Toyota is certainly a good example. We have had Honda's & Ford pickup's (to tow the RV). We replace about every 4 years. Due to market conditions ( and being lucky 2 years ago) I sold my P/U for just $2k less that I paid for it 6 years prior. I ordered my truck prior to things going crazy It's now worth ~$5k more than I paid. We kept the Honda because it only has 32k miles after 7 years, but market value is ~$2k less than what I paid of it.. I maintain them myself and they both are in pristine shape. As prices have ratcheted up mine look pretty good not only to me, but buyers. I've been doing this since late 80's. Again, I realize you're talking about averages. Good Honda's & pickups that are in excellent condition with low miles sell for premiums. Mine have always sold for premiums. Dad always said, "if you can't pay cash for a car, you can't afford it". I heeded this advice until the last go around when I was making ~3x the ROI vs the borrowing rate. I use to tell my clients that leasing is just an expensive form of financing. Finance companies rarely will error in favor of the consumer. Meaning the residual value will be less than the mkt value. .

About 30 years ago, I got ahead of the game and paid cash for a used car... then put money aside each month for my next car, basically a monthly car payment. The difference is that I get interest on my money instead of paying loan interest. I keep our cars for about 7 or 8 years... the latest purchase was a year-old Lexus with under 3,000 miles for $34,000. Now saving for the next car and making interest on my car payments...

This is a controversial topic. We tend to keep our cars until the wheels fall off. Here in the rust belt that is more driven by years then mileage. Mostly we purchase new. One of the risks purchasing a few year old car is in that case the initial owner may have been lax doing preventative maintenance resulting in deferred maintenance problems later. Also, if you need to finance the purchase used car loans tend to have a higher interest rate. As you posted have a trusted mechanic check out the car to reduce risk.

Mr Schmidt, I purchased the most expensive car in retirement then I ever paid before and got 0% too boot!

Interesting facts you present. Your knowledge and presentation is always well versed and informative. I did something different as my situation is different perhaps. Saved very much( money) prior to retiring. Bought new and no regrets. I wanted a V6 NA not a 4 banger with a turbo. We will see where this dynamic world we live in makes my choice a good choice. Thanks again Geoff and keep up the great work. I am now officially old in less than a month,62 yrs. My word where did that time go?

Good info. I'm sure you meant Camry XSE ( not HSE, Toyota don't make an HSE)

Have purchased used cars most of my life. A good used car that has been maintained also allows you to buy a “more” car. My last three cars were 3-6 year old Lexus’. I would never pay what they want for a new one when I can get the depreciation discount on a used one. The last two I bought were certified pre-owned used cars. Lexus has the best CPO program. Besides the extended warranty I got 2 years free maintenance. I know you pay a premium for CPO but I believe the Lexus program is the way to go.

I've been leasing for past 20 or so years. Every 3 years, I get a new car. Now that I'm retired a couple of years (forced retirement at 62 due to COVID pandemic), my current leased vehicle may become my purchased vehicle. I leased a 2022 Hyundai Kona in October 2021. After almost two years, it just turned 7K miles. It's like brand new (kept in my garage). At the end of the lease, I will either turn it in and lease another (depending on the current leasing market), or look at buying it and getting a used car loan, comparing those loans to a lease rate. Once I own the vehicle, I can then have the power to either sell it on my own, or trade it in for another new vehicle a couple of years later (EV by then?). If car prices and leasing isn't a good option in October 2024, when my current lease is up, I will seek alternatives and alternative brands as well. Everyone I know is leasing, except my Tesla owner friends.

Good video, but you left some other thoughts on the table that should be considered. Here are three that crossed my mind: 1. How long will you be realistically driving. My mother is 87 and still driving - about 2,500 mi a yr. So, for discussion sake, lets call it 90. If you are 65 and drive an average of 7,500 mi a year, then you will drive about 187,000 mi. If the average during that time is 5,000/yr then you will drive 125,000. The point of this is to determine how many vehicles will you "use up" in this time. In the 1st example (187,000), you may need 2-3 vehicles if you are buying used. In the second, you may need 1-2. 2. The importance of reliability. The older you get the more it will matter, same goes for your vehicle. IF you have "lots" of money, then you can afford to keep buying what you want. If money has to be budgeted and accounted for, you will find the list of manufactures may narrow to about two, Lexus and Toyota. This could change if you keep more than one vehicle but I suspect the older you get, say over 75, you may only have one vehicle and you will want it to be very reliable. It should be worth noting, electric vehicles may prove to be your best bet in retirement years if you do not travel long distances. I have seen many Tesla's with over 200,000mi and they are still going strong. Except for tires, they are largely trouble free. 3. Will you keep more than one vehicle. For me, we have 2 houses, so we have 6 vehicles; all used. I am able to do all the maintenance and repair work, but I suspect as I age more, 65 now, I will do less and we will have fewer vehicles. By keeping older vehicles and driving each less, I can afford to keep a fleet. As an example, I have a truck at each house. One is a 97 F150 with 105,000 mi and the other is a 02 F150 with 98,000 mi. I'd love a new truck, but it doesn't make sense to buy one or two new trucks when I drive maybe 3-5,000 mi a year between the trucks. We also keep an economy car at each location for local travel and one car for going between the houses. One is a van for the family visits. When we consolidate to one house, we will likely go down to 2 possibly 3 vehicles. It is likely when we're in our 80's, we may go down to 1 EV.

You talk about major repairs, but not routine items. I bought a 3 year old 2017 Murano with 54Klometers (I live in Canada)roughly 20K below new. Now has 86000KM So far I have replaced the brakes, transmission fluid and in the spring new tires. I see them a equivalent to making a car payment. It is a high end Platinum edition and I have all the latest upgrades. My cost, car has lost 5K in value, maintenance so far $2500 so for 32000Km just under 20000 miles 0.37 cents per mile. And I have no debt to boot. I believe buying used 2-3 years old is good value. Cheers good review thanks, other factors are cost of financing or loss of income on purchase. In all owning a car is very expensive....

Depends on what kind of car !

Semi retired. When I worked at my corporate job it was 142 miles per day Monday through Friday. Satirday and Sunday. Much more. Semi retired. Easily 500 miles a week spread over three vehicles. Unless on vacation, RV tows the Civic. Paid cash for all when originally purchased. I drive a LOT.

Thank you

My Toyota Corolla Matrix was 8 years old when I bought it it's 16 years old now and I expect it to last another 5-10 years. It's comfortable, very fuel efficient and has needed almost nothing in terms of maintenance beyond oil and tires and 7 year batteries. I figure it costs me about $400 a year in depreciation (and decreasing) costs very little to insure (no collision/comp of course). It's good basic transportation. It has 150K miles and it will do easily another 50K and cost me only fuel insurance and a little maintenance. Even so I'm thinking that when it's done I probably need to just Lyft everywhere.

Like all of your videos, this was educational. Personally I like 3 year old CPO Japanese sedans.

Buying used in2023 is crazy. Many dealers are asking for more then it was new. Leasing is never wise. Save until you can buy new or cpo . Or just drive old cars..

Thanks for sharing God bless

Interesting presentation. A couple things to note. Leasing has one big gotcha: you cannot terminate it early and are responsible for the sum of payments per the lease agreement. This could have a negative financial impact if your spouse dies during the lease period and your income drops as a result. You’re still stuck with the lease and cannot break it; a financial millstone it becomes. This happened to a family member and they were stuck with the lease payments as well as a drop in Social Security income. It’s not really a good deal as it seems.

Thanks Geoff - love your videos! Q: You didn't address operating costs, so is there a significant difference in the overall financial pictures between gas and EVs? Thanks!!

With leasing, you can also opt to buy the car at the final value on the lease instead of turning it in, and then sell it. Companies like Car Max will even directly pay off the lease for you and give you the difference in value. We've done this in the past, and recouped a good amount of money, because we put low mileage on our cars and have opted for vehicles that hold their value very well (example Lexus) and negotiated for a good vehicle price first and foremost, and only after that, discussed how we planned to pay for it, cash, finance, or lease. We've varied the financial choices we made each time, based on current interest rates, market conditions, when did the model most recently get updated, etc. Sometimes lease, sometimes finance, sometimes cash. But yes, we always calculate the total cost of ownership over the planned amount of time we intend to keep the car.

My wife and I have always bought new. But with two conditions. First, we only buy from the most reliable brands. Second, we keep the cars for 10-15 years. We take pretty good care of them, and have always gotten decent money on the trade in as well. My wife is a bit better than I am, she has always paid cash. I typically do a five year loan, but on average, pay it off in three. We are both close to retirement, and the two cars we have now might just be the last cars we ever own.

Leasing is for businesses or people with money to burn. If you want to save money, buy a Lexus or Toyota, new or used and keep it for 250,000 miles

Geoff. Loved the intro video of the woman in a 1965/66 Ford Mustang :)

Geoff, Terrific Video !.... I've found the Best way to buy a car is select an "off" Japanese Brand ( Mitsubhsi, Nissan,etc.) thats about 10 years old for cash ! You are right, low milage and well maintaned. One can ususally buy these cars from $2.5K to $ 5K. Here's one more trick...most insurance Liability polices cover "collision" for up to $3.5K ( about the value of the car) for an accident involving an uninsured motorist ! I hope this helps... Thank you..

Years seems to be more important than miles in the case of an EV, but we'll see. Mine is almost 5 years old and I've lost about 6% of range but I've seen charts showing big drops start in 8th year. Something to consider if buying a used EV.

My car has 483,000 miles and it’s paid off. Cheaper than any other option. 1999 Camry Solara.

Excellent video, Sir. Thank you for posting. I am a car guy. (I like them, but not involved in buying or selling them). I encourage my friends to buy certified pre-owned, or buy a one owner car. Money wise, make a choice of a car that is durable and reliable. (Probably not a Fiat.) Toyotas are great, but if I bought one, I would choose the hybrid Camry, or buy a late model Prius. if you choose correctly, the car will maintain its value longer than you think. When I retired in 2020, I sold my 2006 model and upgraded to a 2017. My interest rate was 3%. The car value now as a 7 year old car is $28k which is less than the $48k when new, but remember, I bought it as a certified pre-owned. 4 years ago. The dealer is constantly trying to buy it back to resell. If you buy a car in retirement, the car might outlast you.

I'm '68. The last vehicle I financed was a new '79 Z-28 with a three year note that I paid off early. I am/was a blue collar worker with no college degree.

Since I can only do minor repairs, my cars are costing my huge money for repairs now that they're high mileage. I'm 65 and cant do repairs like I once could. I like the idea of leasing, since I don't drive more than 10,000 miles per year and maintenance is under warranty for a leased car. I also like the 2 year lease period.

Leases absolutely *do* frequently have “down payments” - often as high as $3-4,000! Just as with other car loans, it is a way to advertise lower monthly payments. Leases rarely make financial sense unless you know the manufacturer is *heavily* subventing (subsidizing) the lease. Leasing is just another way of borrowing (going into debt). You’re paying interest just like a car loan. The reason the payments are lower is simply that you don’t get to keep the car at the end - you’re paying to use up the first 24/36/48 months of the car. Leases are nefarious because they tend to encourage you to pick a more expensive car. (The lower payments.)

Remember that you can save money on car insurance if you drive for pleasure rather than commuting to work, and more if you drive less than 7000 or 8000 miles a year. Be sure to tell your insurance agent to adjust your rate. You can also save money by taking a voluntary defensive driving course, available online or in person, and for GEICO, you can save even more at every renewal by holding one share of Berkshire Hathaway stock.

How much do you drive? How much can you pay annually for wheels?

Great video Jeff. One comment: Consider Certified Pre-Owned (CPO) used cars. These vehicles have been inspected according to manufacturer's guidelines to allow the manufacturers to offer extended warranties on all the major systems (engine, transmission, chassis, etc.) These cars usually have new brakes and tires which provides near-new vehicle performance and warranty at 2-3 year old car prices. I have had good experiences with two CPO cars and will definitely do another when the time comes.

The problem with all of this is that It forces a very abstract mathematical model onto the supposed 'value' of a vehicle at various points of time. This assumes that a resale market exists that alone determines or confirms value. That is exacerbated by manufacturers flooding a vehicle with ridiculous consumer electronics that add little if anything to the actual value. But that particular mathematical model only serves the best interests of the automotive industry, not a general buyer that has made a correct choice of vehicle for this needs. The point of a vehicle is not to just resell it after buying it, and not to wring as much use out of it with the least possible maintenance or improvements. Unless of course you're a commercial operation strictly using it to make money, or unless your business is buying or selling vehicles or financing those that do. The value of a vehicle is the percentage of functionality it still has at some time of concern compared to a new vehicle. And unless a structural member is seriously compromised, that percentage is not far off of 100%. For example if the frame rusts out or the engine only runs unpredictably, or the cabin floods in the rain or the heater doesn't work, that is a huge loss in functionality. OTOH repairable body damage or upholstery wear or a loss of an irrelevant electronic gizmo is not, regardless how repugnant that might appear to a potential market buyer. A new vehicle is a collection of parts that have to replaced, improved and adjusted over the life of the vehicle. You should (or must, in this age of lack of tradesmen) be able and willing to proactively do this work yourself, rather than just rely upon design and materials of something at the moment it rolls out the factory door. And not rely on professional mechanics unless something is so extensive that it needs heavy equipment and special, expensive tools or knowledge to perform, such as an engine or transmission rebuild. As such, the most expensive time to own a vehicle are not the first few years, but rather the end of life or points where extreme use/service or lack of maintenance occurred. As such, buying new and keeping the vehicle in a state that it can be repairable by yourself is crucial. As it acquiring something for the long haul. Tangentially, that is the reason EVs are such a bad deal, as once the battery malfunctions it's a 100% functional loss that is extremely expensive or impossible to remedy. Actual loss of true value is typically sudden and is governed by those parts that finally exhaust their useful life. Such as engine blocks, frames, or overall integrity of bodywork. At that point in time, I would agree my 20 year old, high mileage truck would have the same value that the resale market dictates it had. Until then however, the true value is much closer to the replacement value of a new vehicle.

I think that's pretty close depreciation on the Camry. I purchase them often for our company cars...USED.

Negotiate acceptable Out-The-Door price and pay with cash...no payment on interest. Invest the interest saving. No paying loan origination fees, 2-16% APR interest.

My main vehicle is my bicycle, despite owning a van and a SUV. On the bicycle I actually get to talk to bystanders.

What about the driving fun factor.

There are two kinds of debt, debt that you have to have and debt that you choose to have. I just bought a used vehicle and chose to finance it because I can make the payments out of cash flow and keep my income below the tax threshold. I do have the cash to pay it off if I choose to do so but even at 7 percent interest I can do better. I also put 35 percent down which keeps everything manageable. I am also completely debt-free otherwise.

The reason I've rarely bought used was fear of lemons. I've had friends with horror stories....

We always had 2 cars and came into retirement with 2. The last 3 I drove were Mercedes and I added 15 to 20K cash to each purchase to make financing believable. Soon we dropped the Mercedes and the owned Acura to lease an SUV with no money down at low interest. On rare occasions when we have a conflict we Uber or rent for the short term. Leasing I find best. We may not want a car or no longer drive at some point. No repair bills. Once kept a car for 12:years and ran up 2500 in repairs and it was unreliable which is a huge concern now….lease!

Great discussion. I have never considered a lease before, but l am looking at an EV that doesn't qualify for the Federal tax credit. Many of the manufacturers who don't qualify can get around this through a lease loophole. The lease price is dropped by the $7500 and passed on to the consumer with a lower lease price. What are your thoughts on that option... Sort of like discounting that first year if depreciation off the base price.

Taxes, licensing, and insurance can be a lot higher in the early years.

When I retired I sold new Chevrolets and vehicles from the pre-owned lot... We buy pre-owned and a warranty. Makes great sense. Also, Please tell me what "Bricabile Fluid" is, that you said was used in Transmissions.? Can't find anything on it. Thanks and God bless Ps: Leasing is Horrible.! You get charged for dang near every scratchs, dents and new tires if needed. READ THE FINE PRINT. Just my $.02 cents.

My partner of 30 years does not drive. If I were to lease the expensive car of my dreams would my partner or estate be responsible for payments till the end of the lease if I should die before? I'm 73 and want to make things easy for my survivors after I'm gone. I have heard that the lease agreement is void once the signer is dead and the car is just returned no fuss no mess. My partner isn't equipped to deal with anything regarding selling an owned automobile. Thanks.

This is a good video, informative. As a person who has leased and not likely to do it again, I just wanted to comment on the part about no down payment. When I leased they tried to dictate an amount of "upfront money" and then required a another amount due at signing. This was in 2020, between the two amounts they were trying to get me to give them around 6000.00 and still. have a 465.00 lease payment. This is not how it went down, I did my homework before going into the dealership.

If you do decide to buy used like myself, I prefer buying a certified used vehicle. Get a added 1 year/12k miles added to the original factory warranty. Peace of mind is what i prefer when I'm or my spouse is on the road. It really sucks when the car breaks down and you are hundreds of mile from home.

I’m retired and I only need to go the 1 mile food shopping once a week and I don’t go to work. I only drive 1,500 miles a year. At my pace it will take me 10 years to drive 15,000 miles.

I am 83 , have been retired for 23 years and currently have a 2015 Lexus RX350 which just turned 93000 miles and is in excellent condition. We only need one car now and although Lexuses are highly reliable, especially the RX350, I am thinking about trading it for a newer model car and buying or leasing a Hybrid vehicle. I have never leased a car preferring to own my vehicles. Now, however, i am wondering if i would be smarter to lease a car even though the interest rate environment has turned so nasty. I have always paid cash for my cars and would do so again if i bought a new or newer car. I am thinking about buying or leasing a 2023 Lexus NX300h as the perfect car for our needs. Given these facts would you recommend i buy or consider leasing for what may be our last car. Thanks.

Used is a better buy usually, because the car depreciates as it's driven off the lot. As long as it's still reliable.

I keep my cars for around 10 years. I just purchased two cars, both new and paid for in full. The Tesla has the $7,500 only if new and my wife's Bronco cost was about $5k under MSRP because I ordered a year and a half ago. We plan to retire in 5 years and one of our goals is to live in a country that doesn't require owning a car, like Spain or Ecuador.

I have a 2003 Honda Accord with 233,000 miles. It has been a very reliable car but I'm going to buy new because I don't want to push my luck.

Should I sell my car myself before buying new? This question comes up quite often when I bring it up with others about to visit the dealership.

I've been carefully considering our vehicle strategy going forward. Since 2006 I bought a new 2006 GMC pickup which I still drive and it's got 45,000 miles on it and I got my wife 2 new Subaru Foresters a 2006 and a 2015 since we live in the land of ice and snow and she was driving 18,000 miles/year up until 2016. Now we're driving about 6,000 miles per year and I've been considering buying used going forward as it would be a better fit for how we're driving now but honestly from your example you don't really save enough for it to make sense to not buy new. If instead you were to buy the base model 2024 Camry for $26.420 with cash and nab the $750 cash back then drive it for 15 years and sell it for $10,000 which is just an educated guess for what it would be worth with 90,000 miles in 2039 (currently a 15 year old Camry with 90,000 miles is $7,000) you'd see the advantage of buying a new car that would provide years of largely trouble free driving for about $1,000/year in depreciation. Even in my early 50's it could very well be the last vehicle we'd ever have to buy. I'm currently keeping an eye out for a smokin' deal on a 2020 high roof, long wheel base, AWD Ford Transit van with around 50,000 miles to replace my truck and to turn into a camper van for traveling and as a second vehicle for the next decade or so and I think we'll keep our 2015 Subaru Forester a while longer since it only has 65,000 miles on it. The vehicle situation is worth watching as over the next 6 months or so as I think we're going to see some serious downward pressure on used vehicle pricing as well as deflation on new vehicles and increased cash back incentives. We've got unusual circumstances where I may be the only driver in a few years so knows, I may just step up to a mid-sized Toyota SUV and a 5' x 8' utility trailer to replace my truck and get rid of the Forester. I'd go with a Subaru Ascent but they have a small engine with a turbo which is no good for those of us that don't like expensive repairs and additional problems. Cheers!

It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.

Do you mean XSE?