Is it worth upgrading your car every few years, or running it into the ground?

[adamc11]

So, i am considering camming my car, but will only have it for a few more years and not 100% sure whether i should do it or not. Plus, i figure it will be a lot harder to sell when the time comes with a lot of mods.

So i have done some calculations as to whether it's best to run your car into the ground, or keep updating every few years. Some of you probably know the answer, but lets just do this anyway. So i'll use my VY SS as an example.

I purchased it for $29,000 with 45,000kms in march of 08.
Each year i do approx 20,000kms. I generally sell my cars before 100,000kms so lets say i run it for 3 years until it hits 105,000kms. Now, in this 3 year period my car would have depreciated a fair bit and lets say it would be worth about $20,000.
So in the period of 3 years i have lost $9,000. (a rough guess given the value of VT/VY SS's on carsales)

Now if i continue to buy and sell cars, and say i buy each car with 45,000kms, and keep each car for 3 years, then i will have chewed threw $27,000 in a period of 9 years. See below:

BUY VY SS: $29,000 (2009)
SELL VY SS: $20,000 (2011)
BUY CAR3: $29,000 (2011)
SELL CAR3: $20,000 (2014)
BUY CAR4: $29,000 (2014)
SELL CAR4: $20,000 (2017)

TOTAL LOST = $27,000

Now if i don't choose to sell the car, at a depreciation rate of $9000 every 3 years, i may as well keep the car for 29,000/9,000 * 3 years, which is 9 years (2017). And in this 9 year period i would have done approx 225,000kms. Say at this time i choose to sell the car, it will be worth approx $10,000, it will be mechanically sound and have all the mods and TLC i put into it.

I guess the downside is you have an old car, but a VY in 9 years (2017) would be equivalent to an early VT currently, which really isn't too bad.

This calculation also doesn't include the thousands of dollars you put into each car you buy and lose when selling it (upwards of $3,000). So you would lose, in 9 years, at least $19,000. With the money saved, you may as well buy yourself something newer, and have 2 cars

So given everything i said is accurate, it really isn't worth buying and selling every few years unless you really want a new car. Now i might go all out with mods and in years to come it can be a project car (colour suits too!)

[Not_An_Abba_Fan]

You can't justify a car. Cars cost money no matter how you work the figures.

In 3 years time, your VY would be worth about 12-15k not 20. I nearly bought a VZ last week for 9k. Granted it was V6 Exec but still, it was an 06 model.

You buy a car to drive it, not to get your money back when you sell it.

I bought a VS Acclaim for 10k, sold it for 2 1/2 5 years later. Also paid 11750 for an XF that was 5 years old, had it for 7 years, sold it for 2k. Do you want a 12 month old 200 series Sahara? I can get you one for 70k, thats nearly 40k less than a new one. My advice is don't look at the financial aspect of owning a car. It will only depress you. I'd hate to think what my 42k Outlander is worth today 6 months after I bought it.

[VrWagz1]

I only ever buy cars that have more than 100k, atleast 7 years old and no more than $10k. Now a 7 year old car has already lost the bulk of its value, and if you get one that has around 100k on it, then its still a good car. I usually sell at around 200k then. I tend to lose around 5 grand every 3 years. So its only a bit over a grand every year i lose on a car, so i dont get too down about it.
Best investment in a car i ever made was a 200b datsun. I bought it for $500 and sold it later for $500, net loss $0. lol

[adamc11]

12-15k is a little low i think in 3 years.
But as stated, with cars you do lose big time. Might just keep this and make it a project car.. have some good fun with it

[CANYONERO]

you always lose money with cars. sucks, but thats life.

[CSP]

You plan on selling a VY SS in 2011 for $20,000??? LOL!!! That's the funniest thing I've read online all night!!!


CURRENT FIGURES:
Private Price Guide $16,400 - $18,500
Trade In Price Guide $12,300 - $14,400

[adamc11]

You plan on selling a VY SS in 2011 for $20,000??? LOL!!! That's the funniest thing I've read online all night!!!


CURRENT FIGURES:
Private Price Guide $16,400 - $18,500
Trade In Price Guide $12,300 - $14,400

Glad i could amuse you. Currently it has 55,000kms... it is definitely worth more than $18,500 now.

[CSP]

it is definitely worth more than $18,500 now.

Not in the current used car market buddy. Hell, even my Clubby that I bought for $65,000 drive away in January this year would be lucky to be worth much more than $50,000.

[Smithy_206]

Keep it mate, like every bloke is saying, you'll always lose money no matter what.

Plus, 9 years down the track, kept mechanically sound with some performance mods, some hothead youth lookin for a first car will snap it up for any slightly ridiculous price, but 10k? Dunno, some richkid without a brain possibly

[jas98]

Not in the current used car market buddy. Hell, even my Clubby that I bought for $65,000 drive away in January this year would be lucky to be worth much more than $50,000.

talking about clubbys..some dude around here picked up a 06 model club sport with 35000 on the clock for $8000 i was like WTF!!! but was genuine from auction. nothing wrong with it, nothing owing on it no engine problems or been in any big prangs.

i mean i picked up a VS series 2 with 77 000 on the clock in bloddy great nick nothing wrong for $2200 the theres a guy round teh corner that has one and wants 8500 for it...has 116 000 on clock but still he is dreaming lol

you lose big time on cars but as said thats life...i mean i sold me vn today sold it for 700 the parts on it was worth more then 1000 lol haha you have to spend money to make money

thats cars for ya!

[adamc11]

Not in the current used car market buddy. Hell, even my Clubby that I bought for $65,000 drive away in January this year would be lucky to be worth much more than $50,000.

New cars depreciate the moment you buy them. Take a look here: HOLDEN COMMODORE - Private Used HOLDEN COMMODORE Cars - carsales.com.au
Every one of those SS's are over 20k. Most of them have more kms than mine.

[jas98]

Keep it mate, like every bloke is saying, you'll always lose money no matter what.

Dunno, some richkid without a brain possibly

seems to be allot of them around in this day and age

[Smithy_206]

i mean i picked up a VS series 2 with 77 000 on the clock in bloddy great nick nothing wrong for $2200

Where'd you snap that up from? Auction, private?...

[jas98]

New cars depreciate the moment you buy them. Take a look here: HOLDEN COMMODORE - Private Used HOLDEN COMMODORE Cars - carsales.com.au
Every one of those SS's are over 20k. Most of them have more kms than mine.

yeh but thats now...not in 3 or so years time

you have to realize that every year the cars do decrease in price weather there A1 condition or not.....to me a car tahst done 200 000 is like its running in.....just cause its don more then 100 000 dont mean you need a new one. Aslong as its serviced and looked after it should last years.....some new cars today dont last a few weeks lol

[jas98]

Where'd you snap that up from? Auction, private?...

car dealer....i know the guy (good friend) he paid 2000 for it and said i could have it for 2200...he got 200 out of it and i got a bloddy good car :P

he said he could have sold it for around 4000 easy but yeh lol

[adamc11]

yeh but thats now...not in 3 or so years time

CSP was saying otherwise. But yes in 3 years time it will have depreciated a fair bit.

you have to realize that every year the cars do decrease in price weather there A1 condition or not.....to me a car tahst done 200 000 is like its running in.....just cause its don more then 100 000 dont mean you need a new one. Aslong as its serviced and looked after it should last years.....some new cars today dont last a few weeks lol

I guess V8's are okay for 200,000kms plus, but i would definitely stay away from 4 cylinders with that many kms.

[jas98]

CSP was saying otherwise. But yes in 3 years time it will have depreciated a fair bit.



I guess V8's are okay for 200,000kms plus, but i would definitely stay away from 4 cylinders with that many kms.

lol yeh i would too. 4 cylinders don't seem to last long

[Smithy_206]

he said he could have sold it for around 4000 easy but yeh lol

Easily mate... That's a well good buy for 2,2 and a bloody good friend aswell

[commsirac]

Changing cars over every couple of years is definitely going to cost you money. If you look after your cars they can theoretically last for ever, but there comes a point where one might grow weary of not having all the features of the current models, that's entirely up to the user.

[adamc11]

Well i never really thought about keeping my cars. Used to tell my dad off for keeping his **** box 1991 mazda that now has 300,000kms, but i guess it's the smartest thing to do. Hopefully my car doesn't look outdated too quickly, 2003 and green n all lol.

[minux]

Dude, I got offered 17k trade in on my Senator, how the hell do you think you will get 20k in 2011 for an SS? 10k would be more optimistic.

[TVR-190]

i know a guy who just buys crapbox cars for like 500 bucks a piece, runs them into the ground, then moves on.

Normally gets a year or two out of them

[adamc11]

Dude, I got offered 17k trade in on my Senator, how the hell do you think you will get 20k in 2011 for an SS? 10k would be more optimistic.

17k... thats pretty ridiculous. How many kms on your car?

[stocky]

12-15k is a little low i think in 3 years.
But as stated, with cars you do lose big time. Might just keep this and make it a project car.. have some good fun with it

ive seen quite a few VY SS for about 14-15k right now. in 3 years, all of them will be worth that at most

[adamc11]

Guys one many kms is one likely to get out of an LS1 without major engine or other problems... 400,000kms?