Why the Majority of Trinbagonians Shouldn't Buy A New Car

[Redman]

If you factor in inflation the OP math is misleading.

If you borrow at 12
And inflation is at 10%, then your real rate is 2%.
It's possible that inflation is eroding the purchasing power of your loan faster than the interest rate is increasing the nominal value of your total debt.

All things being equal we are entitled to spend we money how we choose.
Money is a tool.

[wagonrunner]

A lot of people purchase new to not have to deal with the dramas associated with mechanics on the outside and misdiagnosis of problems. ...

New cars are immune to such?

[SmokeyGTi]

I hear yuh eh aaron but when new car dealers stop bussing price on people then trini's would stop the foreign used thing.

if it wasn't for the foreign used car industry we would probably be forced to buy cars with wind up windows for the price of fully loaded one.

[Trini Hookah]

what else will trinis spend their savings on btw?
a new house in any "decent" area is upwards of 500k

Define decent, because youre lucky to get a shack for that in a decent area.

[pluggie]

what else will trinis spend their savings on btw?
a new house in any "decent" area is upwards of 500k

Define decent, because youre lucky to get a shack for that in a decent area.

500K TTD could barely get you some decent land these days... When I say decent I mean one lot in a 'decent' area ...

If people wants to buy new cars let them, its their money they worked for it and they can spend it how they prefer...personally I wont buy a new car, I'd look for one a few weeks / months old then buy it cash from the owner for atleast 20% less than he paid for it 4000 kms ago

[Seeker]

At the end of the day ppl will do what makes them feel good/comfortable with/want when it comes to cars. Other than a house no other major purchase instills such an emotional connection especially in a country where a car is still a luxury .... in contrast to the US where it is a disposable item.

I have an aversion to buying a new car for the exact reasons stated by the OP ... I've never owned a new vehicle in the 17 years I have been working while those who are my junior have gone on to purchase their 2nd or 3rd new vehicle. However, I'm more comfortable with making the sacrifice for a used vehicle while completing renovations on my 3rd property .... much rather own properties than roll in a new vehicle every 3-4 years. Once my vehicle is reliable that's all I'm concerned with .... will be looking forward to acquiring my 4th property soon....then who knows ... 5th, 6th...

In any case .... nothing in the showrooms can rival the mighty EK4

Nice example here.......meh B15 now entering 7 years and still working strong as the day I bought it.

Property is the way to go these days.

Many of my peers driving brand new rides but I am one of those that have no interest in wasting money on an object that depreciates over time.

Maybe there should a Property Thread on tuner?

[Aaron 2NR]

A lot of people purchase new to not have to deal with the dramas associated with mechanics on the outside and misdiagnosis of problems. ...

New cars are immune to such?

Nowhere did I say that but with a new vehicle you at least have warranty and get a complimentary vehicle to use when they keep your car for more than 2 days....now we all heard stories if firm mechanics etc even I have had experiences with it BUT it happen on the outside as well.....
Again people make a decision based on what they can afford financially...some go overboard paying more thab 40% on their salary on a vehicle which I dont agree with...
Take for example, my hilux cost avg $900 to service at the dealer I bought it...a colleague pay $1600 at tttl and another paid $2000 at an institution on cipero st....

[Captain Awesome]

OP, biggest advantage of buying new is NO STRESS. Everything working and if not is under warranty so you have a problem free car for at least two years. five stress free years if you maintain it properly.
and that new car smell is hnnnnnghhh so udfr

Common excuse.............
When you buy a new car you are paying a high premium to have a warranty / or a feeling of reliability, with all that money you pay the bank and the car dealerships you could comprehensively maintain a gently used car, more than you would ever need.

Instead use that money that would be wasted buying a new car and budget it toward car maintenance and toward your next cash purchase of a car. With a thorough car search and proper counsel before making a used car purchase you'll have an excellent chance of finding an affordable roadworthy vehicle. Though this may not be what you want to hear; deferring instant gratification has tremendous benefits. Don't be impulsive with your financial decisions or follow the advice of the loan officer they don't have your interest at heart

Buddy, I could shake your hand. My sentiments exactly!!

[zoom rader]

If ppl have the money to buy a new car and dont want the hassle to deal with problems then so be it.
Buying a new car is not an investment unless its a rare car .
I would not even think to buy a new car in these rounds as it is not worth it to me. I had my car from new some 15 years ago and I do all my repairs myself from engine to body work. I dont ever trust trini tradesmen and firms. I dont even use my car as much unless if its raining , i prefer to use my motorbike as it faster to get to places than deal with traffic and cheaper on gas.
Trinis like bling , show offs and elite status mentality all of which are propagated by advertising and greedy businessmen that are cafefully created to get your money.
Nearly all these new car owners living hand to mouth, some dont even own a home. What is lacking is money management as fools and their money are always parted.

[Gem_in_i]

I bought new. Nobody forcing you how to spend your money. Don't hang your hat where you cant reach.

[Aaron 2NR]

OP based on your heading, if someone can afford to buy the new vehicle cash should he? Or your logic doesn't apply here....

[src1983]

I pass LO around 5:45 everyday and to be honest there's like 3 foreign used cars and the rest new brand....

I have never had any problems with the foreign used cars I purchased, only normal maintenance (oil, shocks etc)

Both are still on the road today with no problems.

It all comes down to care and maintenance.

[X2]

Using the logic of the OP... then we definitely should NOT ever buy a house, land or any sort of property that requires a loan due to the insanely high amount of money paid in interest over the years.



Note that RORO dealers mark up 100% or more on roro cars and don't typically offer the service or warranty that a local new dealer would... more money going into 1 pocket when you buy roro...whereas a new car dealer pays many more salaries for your dollar spent.... better for the economy. And here I am thinking people pay attention in economics class.

[fokhan_96]

I pass LO around 5:45 everyday and to be honest there's like 3 foreign used cars and the rest new brand....

I have never had any problems with the foreign used cars I purchased, only normal maintenance (oil, shocks etc)

Both are still on the road today with no problems.

It all comes down to care and maintenance.

Same here. My family has owned RoRo cars over the years and no problems with these cars other than normal maintenance. I don't know why people branding "RoRo cars" as a particular car. Obviously you can't compare a 6 year old AD wagon to a new local corolla or a BMW for that matter. If you look to buy the cheapest car available then what you expect. Compare a 6 year old local wingroad and a 6 year old RoRo wingroad. Which one would you buy, and which one cheaper. Never heard of the RoRo ones giving more trouble than the local ones. And if you have the money, you rather a brand new wingroad or a RoRo legacy spec B.

[KURMAman]

buying a used car is always a gamble and more than likely you always come out losing. Its either you buying someone else pride and joy or you buying someone else headache, 90% of the time its the latter. For someone who like to tinker and has a fair technical knowledge on cars also if your livelihood does not depend on having your own transport then I say go for it, save the extra dollars and buy it used. For a woman, first time owner, someone who doesnt have the time to run by mechanic and older people, save yourself the headache in the long run and buy new.

x1000.

cant tell you the amount of times i heard ppl saying "i go just do a fass fix up and sell dat oui.. dat eh go be my problem."

Saw the OP post up some 12% interest rates and ting... rel wrong info tho.
Banks offering 6 % interest right now... as the economy is trying to encourage ppl to invest, now is the best time to take a savings loan.
Buying foreign used is for last resort tho.. plus banks say ud have to front 50% up front to qualify for the loan...just because its foreign used.

I have seen ppl living E-W corridor travelling everyday whole day... no need for a car.. so they could buy a used car and deal with lil headaches..
As for ppl who depends on a trustworthy vehicle for everyday use, buy new. fullstop.

[ek4ever]

again ... RoRo is not the only alternative remember there are some good local used. My first car was a B14SS from Massey ... it was a manager vehicle that was changed out after 3 years. It was in excellent condition bought it for $70K and sold it for $40K 4 years later. No problems during those 4 years absolutely solid vehicle .... of course I'm a fanatic when it comes to maintenance. In contrast my dad bought an Almera for $120K and 4 years later was only getting $60k for it. He lost $60k in 4 years and I lost $30K over the same period.

When looking at local used cars I test drive the crap outta them (not abuse it), take it to an alignment shop to check chassis and have my own personal mechanic go over it. Not saying this is foolproof but hasn't failed me so far.

[Sky]

I'm noticing a trend where the people who buy new are speaking about 1 car, while the RORO people talking about a couple cars over the years.

[Chimera]

lol @ no problems with local new cars

There are a couple of people locally who have new Q5s with engine problems right now

My horror story about a brand new sportero from mitsubishi is posted somewhere here


in both avenues, there are lemons, both RORO and brand new

Brand new you supposedly have a 3 to 5 year warranty but the firms do anything they can to get out of this warranty, they even TRY to make you pay for repairs that are suppose to be warranty covered.


RORO i think the most they give you is 3 months warranty, mileage most likely rolled back but the cars usually have more features while the local new is mostly base model.


I guess a major factor is if you have the money to jump out and pay the whole RORO price at once or if you need to stretch out the payment over the course of 5 years

For those who invest their money and use their money to make more money, it would make sense to take a loan and pay for their car. Some of the exotics here as well as the bentleys and Porsches are all paid for with loan because the owners(businessmen) would use their money to multiply it over the course of time.


But for the regular 8-4 worker who money sit down in the bank just depreciating, you might as well buy a RORO and pay for it upfront.

Taking a loan for something that depreciates in value just doesn't make sense UNLESS you are using your personal cash for investments and getting returns on it.

[DJ Q]

Buying a new car is not an investment unless its a rare car .

Wrong on two counts:
1) Rare cares don't appreciate in value in Trinidad. They're usually associated with headaches as parts are usually very difficult to get.
2) Buying ANY car (new or used) is not an investment unless it brings back money into your pocket, for example, taxis, transport.

[Sky]

^^ The term "investment" isn't used only for monetary returns eh.

[DJ Q]

^^ The term "investment" isn't used only for monetary returns eh.

Isn't that what the thread is about?

[Sky]

That's what the OP would like it to be about

[pete]

Is the lack of foreign used pickups the reason why pickups do not fall in value nearly as fast as cars?

[Rallyfignis]

The reason you can't get ahead is because you give all your money to the bank and make poor financial decisions.

You're doing it wrong.
The best businessmen would tell you to lean on the bank - use their money, not yours.

This is the business mindset.
Not for personal use.

I was referring to what was quoted (hence the reason for quoting it).
He spoke about "getting ahead" - I highlighted one such way to do so...

[toyota2nr]

I pass LO around 5:45 everyday and to be honest there's like 3 foreign used cars and the rest new brand....

I have never had any problems with the foreign used cars I purchased, only normal maintenance (oil, shocks etc)

Both are still on the road today with no problems.

It all comes down to care and maintenance.

Great post OP!

One thing we gotta remember is that new car dealers making new vehicle purchasing more attractive. More women buying pickups than ever before. It's possible there could be some sort of collusion or arrangement between new car dealers and banks as the interest and downpayment on the used car is much higher. All this is meant to discourage the customer from buying RORO as the bank can lock them into a loan for a longer term.
Have my RORO NZE 7 years now with no major problems. Considering a new vehicle but not really looking forward to a loan so I may hold off for a while. As mentioned before property is the way to go now.
Wasn't there a thread on new car owners experiences with their vehicles and the dealerships?

[Preludeman1]

The reason you can't get ahead is because you give all your money to the bank and make poor financial decisions.

You're doing it wrong.
The best businessmen would tell you to lean on the bank - use their money, not yours.

U've been hearing smart people talk, and ur trying to copy them... U have no idea in what context that statement is made, that statement is applied when speakin of investments... In assets, not liabilities. A car,in most cases is a liability, its lessens in value and it requires money to operate. So u will end up paying the bank interest, the operating cost, and u loose ur initial investment in depreciation. There is no good business decision there buddy, esp when there are roro cars that come in doing 20k km, and most dealers don't mind if u get a full inspection prior to purchase.



The op in this thread is one of the few Trinidadians who have a good understanding of instant gratification, he has a great understanding of how to maximize the current and near future value of his money.
So kudos to u pal!

[Sky]

That NZE have atleast 5 more years in it though. Why bother getting another car at all?

[Rallyfignis]

The reason you can't get ahead is because you give all your money to the bank and make poor financial decisions.

You're doing it wrong.
The best businessmen would tell you to lean on the bank - use their money, not yours.

U've been hearing smart people talk, and ur trying to copy them... U have no idea in what context that statement is made, that statement is applied when speakin of investments... In assets, not liabilities. A car,in most cases is a liability, its lessens in value and it requires money to operate. So u will end up paying the bank interest, the operating cost, and u loose ur initial investment in depreciation. There is no good business decision there buddy, esp when there are roro cars that come in doing 20k km, and most dealers don't mind if u get a full inspection prior to purchase.



The op in this thread is one of the few Trinidadians who have a good understanding of instant gratification, he has a great understanding of how to maximize the current and near future value of his money.
So kudos to u pal!

Y'all doe read or what?
The man was talking about getting ahead, so was I.
Forget context, cuz if your way of getting ahead is buying cars (esp used ones) well props to you Sheron...

[toyota2nr]

That NZE have atleast 5 more years in it though. Why bother getting another car at all?

The NZE was four years old when I bought it. So just over eleven years old and still going. But I was thinking of the new Corolla whenever Toyota Trinidad releases it or the Hilux. Still way overpriced though.

[Trinbagoviews]

Remember folks, you won't get this alternative perspective in the mainstream media as the media is beholden to the advertising dollars of its clients -namely the banks and the new care dealers which spend millions on advertising.