Was: Investing in 200RQW; Now: Resale Value
Barry Lampke
BLampke at veic.org
Wed Sep 6 08:22:20 EDT 2000
Thanks all for the insight into investing in cars, especially Audis. This is my third and I do love them. Here's one factor I failed to mention:
I have had 54 cars (I'm turning 40) and tend to turn cars over (selling, not rolling) a fair amount. I vascilate between having a winter and summer car (now the 200TQW and Jag XJ6 with Chevy conversion) and having one more expensive vehicle (typically SUV or pickup), the key being 4wd. The Audis have excelled as my winter car. I also have relatively little "new" funds to reinvest in my diease so the "pot" of money declines unless I actually make money on a car (ha!).
The other factor is the impending arrival of our third child, meaning less money and time for car repair and purchase.
Due to my frequent buying and selling, resale value becomes another factor in investing in a car. As Doyt points out, investing in hardware instead of interest is a compelling argument for keeping one car and making it right. However, if I plan on keeping a car less than two years, am I better off making a payment on a newer used car with less miles (for example, an early 90's A4 with 50,000 miles)? Once payments, interest, repairs, and insurance AND RESALE VALUE are calculated, I may be in the same, better, or worse shape than investing in my 1990 200TQW w/175K.
What's others' experience?
BTW, if I wasn't married, I would probably have a relatively new car with a huge payment... I love cars so that would be a priority, but my wife (perhaps widely) keeps me in line.
Barry (always looking for something new - cars, not women...)
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