Buying cars for value

Buying cars for value

by SouthernFriedInfidel | Published on October 22nd, 2008, 2:12 pm | Sports

Saw this article on staying away from "dying brands" of cars. It says that the folks who bought Oldsmobiles just before the brand was shut down led to a huge loss in owner value.

Well, that's a matter of opinion in this one case. Oldsmobile may be gone, but it's still supported and serviced by GM -- so owners should be able to keep their cars up, generally speaking, so long as GM cares about customer satisfaction. Which I admit is a big condition to worry about.

Now, if you're talking about buying a POS like the Yugo... that's a totally different matter.

But one further question I have is -- I don't get at all the idea of someone buying a car as "an investment." With extremely rare exceptions, all cars plummet in value after they are sold. The value (seems to me) comes only in the use you get from them and their longevity. I own a pair of 2001 Honda vehicles, and a Mitsubishi. I'm only interested in one goal: making them all last as long as I can, to keep from having to make car payments. Isn't that the very best way to keep a healthy cash flow??

That's been my strategy. Buy new and run it till it dies. I got 230,000 miles & 16 years out of my Toyota 195,000 (14 years) out of my Mazda, my Subaru is coming up to 175,000 after 8 years

The Toyota went out in a battle to the death with a moose (draw).

Even if you buy something unusual or special as an investment it takes a very long time before you see a return on your money - if ever.

I think it is all relative. If you went into the Oldsmobile Dealership in 2004, you probably could have gotten a really good discount, since they were trying to clear their inventory. At least that way you could have hedged against some of the depreciation. Of course, GM had anounced a few years earlier that Oldsmobile was ceasing operation.

I don't worry about depreciation too much. Both of my cars are paid for and I plan on running them until they can't go anymore. Or at least until I becomes more expensive to maintain them. 2000 Pontiac Grand Am (192,000), 2002 Nissan Maxima (76,000). Both were bought used and had the remainder of the Factory Warranty at the time of purchase. :wink:

Now, if you're talking about buying a POS like the Yugo... that's a totally different matter.

Hey, Yugo's have quite a following these days....

That said... They said the value of Hummers with gas prices have gone south too....

But Oldsmobile... they really shouldn't complain....

a) it was a lame car past it's time since the 70s...
b) everyone, and I do mean everyone knew the brand was coming to an end.
c) whats less in value now will be a collectors car in a few years.
d) I'm sick of everyone feeling a car has to hold "value"... it's not a house people... it's a car... they're disposable..

Now what will be interesting is if Chrysler does get bought by GM.... how are all the Dodge & Chevy guys and gals going to get along... that's an abomination to some people. Makes me wonder... do they keep the viper and the vette or ditch the viper?