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Best car for value investors?


stahleyp

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A value investor is probably someone who is at least aware of the concept of risk and reward based on probabilities and downside protection. As such, considering the probability of a car accident which is non-negligible and possible outcomes, I'd say the main criteria would be safety and so one should go for a car which has the best safety rankings.

 

and that would be a Tesla,

 

https://www.teslamotors.com/blog/model-s-achieves-euro-ncap-5star-safety-rating

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Seventy4Eyes    1,324

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Posted 25 Aug 2015 ·

Chevy's been moving in this position for a while.  The newer Colorado is almost as big looking as the Silverado (without actually being as big, and with a bunch of empty space under the hood).  El Camino's basically a small pickup with a back seat, but now all pickups have a back seat so... uh, yeah.

 

 

 

I'm looking for a black 209-2013 Chevy Colorado LT 4x4 with V6 or I5 engine, extended cab (NOT crew cab) with under 90,000 miles for around $18k.  They exist, but I have to drive to either Kalamazoo, MI, Dayton, OH, or St Louis, MO.  Great.  Stupid very-specific desires.

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Ludivigo    885

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Posted 25 Aug 2015 (edited) ·

All of those "new" El Caminos are photoshops.  IF GM ever releases a car/ute it will look similar to the one they already sell in Australia - Holden Commodore Ute

 

2014-Holden-VF-Commodore-SV6-Ute-Fantale

 

 

 

Edited 25 Aug 2015 by Ludivigo

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Herc    1,743

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Posted 30 Aug 2015 ·

 

 

 

 

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wil-san    2,661

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Posted 30 Aug 2015 ·

  On August 25, 2015 at 0:37 PM, Seventy4Eyes said:

Chevy's been moving in this position for a while.  The newer Colorado is almost as big looking as the Silverado (without actually being as big, and with a bunch of empty space under the hood).  El Camino's basically a small pickup with a back seat, but now all pickups have a back seat so... uh, yeah.

 

 

 

I'm looking for a black 209-2013 Chevy Colorado LT 4x4 with V6 or I5 engine, extended cab (NOT crew cab) with under 90,000 miles for around $18k.  They exist, but I have to drive to either Kalamazoo, MI, Dayton, OH, or St Louis, MO.  Great.  Stupid very-specific desires.

 

Have you considered a Toyota truck? They're hella reliable.

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Seventy4Eyes    1,324

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Posted 30 Aug 2015 ·

I have.  I think Chevy/GMC has leveled the playing field as far as quality is concerned.  Tacoma's are still a a bit more expensive due to brand loyalty and name recognition.  We actually went shopping for a new truck yesterday, but my wife ended up with a new car instead of me.  :mellow:

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ShakestheClown    1,512

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Posted 31 Aug 2015 ·

  On August 30, 2015 at 2:55 PM, Seventy4Eyes said:

, but my wife ended up with a new car instead of me.  :mellow:

 

 

:lol:

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Seventy4Eyes    1,324

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Posted 31 Aug 2015 (edited) ·

Yes, its all very funny..

 

I actually went back to the dealer today to drop off paperwork for my wife, and ended up with an unbelievable (I think?) deal on a brand spanking new Tacoma.  Last day of the month is no joke with new car salesmen when they haven't hit their quota... they couldn't have made any money on this deal.

 

I don't think I've ever had a car to call my own that wasn't at least 7 years old, until now.  :lookaround:

 

Edited 31 Aug 2015 by Seventy4Eyes

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Carl Zanzibar    3,732

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Posted 31 Aug 2015 ·

Hell yeah, man!  Tacomas are stylin'!  That is my dreamer right now.  It's going to be a while, but when I get it, the adventure-mobile it will become!  Enjoy yours!

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Space Cat    4,396

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Posted 31 Aug 2015 ·

  On August 25, 2015 at 11:20 AM, Turbo Kincaid said:

  On August 23, 2015 at 0:59 PM, wil-san said:

The El Camino was fucking lame back in the day too. You're coming off as desperate, Chevy.

 

More of a Ranchero man?

 

1-36769.JPG

 

giphy.gif

 

 

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wil-san    2,661

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Posted 1 Sep 2015 ·

Rancheros are dope, but I prefer the Canyonero.

 

 

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Damon    12,721

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Posted 1 Sep 2015 ·

Bought a new Honda CRV for my wife this weekend. After some research and trying out a bunch of crossovers it was her favorite.

 

I traded in my Camero Z28 and snowmobiles which I got a good deal for.

 

 

 

Wait a minute, I traded in all my toys, for my wifes new car, on my birthday? Instead of going to Dicks? How did she pull off that jedi mind trick?

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Turbo Kincaid    3,111

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Posted 1 Sep 2015 ·

My mom just got a new CRV and it's great. She came down a couple of weeks ago and I took it to work a couple of days for observational purposes.

 

I think she said on the drive down from Philly she got around 32mpg on some of the longer highway stretches without stopping. My typical commuting mpg in the Pathfinder is 18.5, on the bike it's about 42, and in Alyssa's Matrix it's just above 26. The CRV got 29.6 over three days and that's ridiculous. It's bigger inside than the Pathfinder and would probably give it a run with the eco button clicked off.

 

I'd never take it some of the fucked up unpaved places I've taken the Nissan, but how often does that happen? If I were buying a new vehicle right now it would be one of these.

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Zander    4,134

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Posted 1 Sep 2015 ·

Yeah, I'm really impressed with the CR-Vs that have been coming out the last few years, especially.

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Dustin    1,583

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Posted 26 January ·

Seems like there are a lot of CRV owners on here. All happy with them? I hope to get a new car at some point this year and am pretty split between a CRV, Rav4, and Forestor (I currently have a Forestor). Would ideally like something bigger, such as a Pilot or Highlander, but unless I get one from several years ago with a lot of mileage, it's probably too expensive.

 

Drove a Rav4 as a rental car for a week a few weeks ago and was pretty happy with it.

 

I hear good things about the Mazda CX-5, but it just seems like it's too small for what I'm looking for. I need storage space.

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Zander    4,134

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Posted 26 January ·

I'm on my 2nd crv and love it. Can't rec them enough.

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Seventy4Eyes    1,324

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Posted 26 January ·

We just got a '09 Rav4 a few months ago.  I don't know how common this is, but the AWD is activated automatically, when the vehicle senses the need for it.  You can lock it in under 20 mph, but over that its all controlled electronically.  Much different than my old '00 Forester that was AWD all the time.  That thing felt glued to the road. 

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Nigel    5,254

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Posted 26 January ·

I can't help you, myself, or anyone else choose a car.  I hate the process.  I'm currently in the middle of it.

 

Are you looking for storage space like for luggage & kid stuff?  Or do you mean you just need room for people?

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Dustin    1,583

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Posted 26 January (edited) ·

  On January 26, 2016 at 0:28 PM, Nigel said:

I can't help you, myself, or anyone else choose a car.  I hate the process.  I'm currently in the middle of it.

 

Are you looking for storage space like for luggage & kid stuff?  Or do you mean you just need room for people?

 

Storing kid stuff when doing road trips.

 

Edited 26 January by Dustin

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Don    443

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Posted 26 January ·

Our family car is a Mazda CX-5.  Really happy with the purchase of this car.  Very good gas mileage, super comfortable to drive, and has been very reliable so far. 

 

I agree with Dustin on the storage space, it is lacking at times.  But it's made us better about what we pack when we go on road trips. 

 

All in all, I would recommend.

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Dustin    1,583

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Posted 2 hours ago (edited) ·

So I'm thinking about buying a used 2014 Jeep Cherokee. Thoughts? I have a few concerns over the durability of Jeeps, but I otherwise love almost everything about the car (it could use a bit more cargo space in the back). Heated seats & steering wheel, remote start, Sirius/XM, nice infotainment system and technology, V6 engine, a 9-speed automatic transmission, and is priced well.

 

Thoughts? Any Jeep owners on here?

 

RAV4 is the other car I've been really considering, and like the cargo space, but has a 4-cylinder engine, and the interior feels like they use pretty low-budget materials (especially compared to the jeep's interior, which is real impressive). The '14 RAVs I've looked at/driven are also priced a few thousand $ higher than the Cherokee.

 

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Go buy a used Tesla Model S. They hold up value well, super safe, fun to drive and you get to see what will eventually put the other automakers out of business.  The money you save avoiding stocks like GM will be worth a lot depending on the size of your portfolio. Then you're saving money on future health problems your grand children will avoid by breathing cleaner air.  Thrn you'll save even more by avoiding stupid wars centered around energy supplies. Etc etc. So many savings!

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Hey guys,

 

I got a 2012 Hyundai Azera. It was  certified preowned (I know you pay extra for those but with my lack of car knowledge, I went for it). It was $18,600. That is a bit much but it had less than 12,000 miles on it. I'd prefer a smaller car with better gas mileage but I'm married with a baby on the way...and Columbus drivers are crazy. The finance guy suckered me into the extended service contract though. I've been waffling on this thing for the past few weeks (I can still cancel and get a full refund). It was about $1800 through All State. It's 10 years or 125,000 miles. you guys have any thoughts on the extended service contracts? I'm leaning towards cancelling it.

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I don't know much about it, but this seems like insurance, so they must be pricing it so you lose and they win on average.  That's fine for a risk you can't afford to take, but I'd imagine this isn't in that category for you.

 

haha yeah, that's what I was thinking. consumer reports said something like 65% of people who bought didn't use it. I'm assuming they probably didn't get a 10 year contract either. The insurance company makes a profit (on average), the dealership and so does the rep.

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We bought a new Kia Sorrento and the extended warranty was for 7 years and I think it was about $1000.

$1800 seems a bit steep, especially considering you payed $18000 for a used.

 

was that 7 years on top of the manufacture's warranty?

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I'd lean against getting the warranty.  You are paying 10% of the cost of the vehicle for something you will most likely not use.  10% of the item's worth is a lot to pay for warranty insurance IMHO.  I bought a new home last september and bought a home owners warranty (which already paid for itself as my furnace went and was replaced), but I certainly wouldn't pay 10% of my house's cost for a home owners warranty for 10 years, it was much much less costly than that.  And as I said already, on a late model Hyundai you are unlikely to use it at all.  Of course if you end up needing it, you will be glad that you bought it or upset that you didn't.

 

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I'd lean against getting the warranty.  You are paying 10% of the cost of the vehicle for something you will most likely not use.  10% of the item's worth is a lot to pay for warranty insurance IMHO.  I bought a new home last september and bought a home owners warranty (which already paid for itself as my furnace went and was replaced), but I certainly wouldn't pay 10% of my house's cost for a home owners warranty for 10 years, it was much much less costly than that.  And as I said already, on a late model Hyundai you are unlikely to use it at all.  Of course if you end up needing it, you will be glad that you bought it or upset that you didn't.

 

Correct, I don't think the warranty is a good value either.

 

We were offered a warranty on a Sequoia we purchased.  We paid $24k for the Sequoia and the warranty was $3,800.  My wife wanted it for the 'security' aspect, but I thought about it and declined.  Having $3,800 worth of repairs is a LOT, I could purchase an engine from a junk yard and have it installed for less than that.  It was a three year warranty.  So far only issue we've had is a high side pressure sensor went, $400 replaced.

 

The aftermarket warranties don't cover as much as you think.  I had one years ago, had a cracked exhaust manifold.  Was quoted at $2k to fix it (a crap estimate) and the warranty only covered a portion of it.  I complained like crazy and the dealer where I purchased it just repaired it on their own at no charge.

 

Here's how most of these warranties work.  They cover a portion of something, but the dealer loses money doing the repair.  The reimbursement cost is low.  So what the dealer does is fish around and finds something else that needs to be fixed that they can make a margin on.  You take it in for a rough idle and suddenly you need a new alternator.  Had someone try this on my wife recently.  Went in for a discounted oil change (that they messed up, put in conventional when we paid for synthetic..had to redo it) and suddenly our radiator is supposedly going bad along with a litany of other things.  I popped the hood and verified in about 2 min that this dealer was full of crap, all of it a lie.

 

My recommendation is this.  Do all of the requirement maintenance on the car, whatever the manual says do it.  If it says change the fuel filter at 60k miles and you're thinking "it's running fine, why do I need to change it?" ignore yourself and listen to the manufacturer.  There is a lot of maintenance up front that people love to ignore, but it comes back and bites them later.  All of those easy things early on extend the life of the engine.  Take care of it and it'll last.  Do things like change the plugs every 15-20k miles, religiously change the fluids (including all differentials/transfer case fluids if 4x4, most people neglect this).  Engines properly maintained, or even improperly maintained and then brought up to date can last a LONG time, often much longer than the body of the vehicle lasts.  If the body and frame are ok then you're in good shape.

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We bought a new Kia Sorrento and the extended warranty was for 7 years and I think it was about $1000.

$1800 seems a bit steep, especially considering you payed $18000 for a used.

 

was that 7 years on top of the manufacture's warranty?

 

No, the manufacturer's warranty is 5 years. And I mistyped the cost, it was $1300.

They also wrap extras, if you want to call them that, into the warranty upsell. They spray a lifetime guaranteed rust proof on. So long as you have it inspected at Kia each year, it's covered.

They also put the clear stone guard film on the front end.

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rk,

 

did you have any trouble using the home warranty? I bought a foreclosure in August and it has a lot of older appliances in it. I figured the $500 a year may be well worth it.

 

More trouble than I would have liked, but the service technician was adamant that it was dangerous to fix it and it needed to be replaced.  They initially wanted to spend about $2000 fixing it rather than $4000 replacing it.  It was over 25 years old, in very poor condition, and the previous homeowner hadn't used it in five years (he heated entirely with wood pellets), which is the reason we purchased the home warranty to begin with.  They will always want to fix something that can be fixed rather than replace it, but even fixing it would have been a lot more than we paid for the warranty.  We went with American Home Shield.

 

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yeah, I was supposed to have the home warranty when we bought the home but the bank just gave us the cash instead. A few months after we bought the house, the water heater screwed up. That cost about $1900 to replace. :(

 

when they replace things, do they buy you a similar new item? Let's say the refrigerator breaks down, is it based on the same size/manufacturer?

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yeah, I was supposed to have the home warranty when we bought the home but the bank just gave us the cash instead. A few months after we bought the house, the water heater screwed up. That cost about $1900 to replace. :(

 

when they replace things, do they buy you a similar new item? Let's say the refrigerator breaks down, is it based on the same size/manufacturer?

 

It is up to them, they will replace it with a "similar model".  So if you had a Sub Zero you would get a new Sub Zero, if you had the cheapest fridge money can buy, that is what you will get.  There are options though, the service tech we used had a bit of experience dealing with them, he said that he's seen customers want a top of the line super efficient heating unit and American Home Shield wanted to replace what was there with a similar builders grade unit, the customers were able to get the upgraded unit by paying the difference in cost between the two.  If you had a cheap refrigerator (say a replacement with a similar model would be $1100) and you wanted a $9000 Sub Zero you could tell them to send you the $1100 and you could buy whatever you wanted.

 

EDIT:  But remember if the fridge is at all fixable that is what they will want to do.  They would rather spend $600 to repair an old ugly dented rusty fridge than pay $1100 to buy a new one.  As long as it will last a year they win, they know you won't likely have the warranty forever.  It really has to be unfixable, really close to the price of a new one to fix, or some kind of a safety hazard for them to agree to a new unit.

 

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Hey guys,

 

My 2003 Malibu is no longer working.  I'm fairly tall so I'm looking for a mid size rather than a compact.  What cars tend to be reliable,  lower cost and good gas mileage? I'll probably drive it for 10+ years.  From what I've read Honda has declined in quality from the old days.

 

I know this is not the gist of your question but in German cities "car sharing" is the obvious choice for value investors. ;) BMW and Mercedes have very good car pools here.

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Hey guys,

 

My 2003 Malibu is no longer working.  I'm fairly tall so I'm looking for a mid size rather than a compact.  What cars tend to be reliable,  lower cost and good gas mileage? I'll probably drive it for 10+ years.  From what I've read Honda has declined in quality from the old days.

 

Nope not true for the Honda's. As a matter of fact with the new Honda Accords. They have luxury features that were in BMW or Mercedes at a cheaper price point and work really well. The one thing is you have to go to the service center to get your car updated with the latest software. It is free though.

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Hey guys,

 

My 2003 Malibu is no longer working.  I'm fairly tall so I'm looking for a mid size rather than a compact.  What cars tend to be reliable,  lower cost and good gas mileage? I'll probably drive it for 10+ years.  From what I've read Honda has declined in quality from the old days.

 

Nope not true for the Honda's. As a matter of fact with the new Honda Accords. They have luxury features that were in BMW or Mercedes at a cheaper price point and work really well. The one thing is you have to go to the service center to get your car updated with the latest software. It is free though.

 

If you live in the Southwest or barely drive and keep it garaged you'll be fine. Sure the interior is nicer but I'd say the mechanical systems have gone down in quality. Look at the mechanical build of a 1995 Accord vs a 2015 Accord. Honda cut costs to have the nicer interior. It looks nice and rides nice but I doubt it'll still be running in 20 years. My mom has anew Accord, I can feel the quality difference between it an my 98 Accord.

 

Sure you can flash the software but how does that help with bad clear coat or cheap gaskets?

 

Not a downer on Honda either, I like their stuff. But the quality decline is real

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I want to add to my last thought. It seems (anecdotally) that the lower end sedans are where corners are being cut by all companies. Probably because these are hardest to make margins on. So companies give out nice to haves like leather seats and Bluetooth sound systems that work with iPhones then gut the engine compartment.

 

Higher end models seem fine. Pilot, Ridgeline etc. Probably because there is a bigger margin.

 

I've driven newer Dodges and Chrystlers recently, they were either junk (the minivan) or underwhelming. Interestingly newer GM vehicles seem very solid, more than I would have expected. The Ford SUV I drove last year was playing the same tricks as Honda, nice interior and underpowered engine.

 

If I had to have a sedan I'd probably go Camry, Hyundai, or possibly a GM.

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Guest bksimon

I know this is not the gist of your question but in German cities "car sharing" is the obvious choice for value investors. ;) BMW and Mercedes have very good car pools here.

 

You have it exactly right ni-co. With car-sharing, we don't need as many cars or parking spaces to serve a given population, opening up more room for pedestrians, bikes and buses.

 

I use Car2Go in a large US city and am very happy with it (there are 360 cars in my area). I pay by the minute and do not have to deal with parking, tickets, fees or car insurance (or a depreciating asset). Car2Go is owned by Daimler.

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What do you guys think about Volvo? My wife is thinking about the Volvo XC60 due to its safety features. Not sure if that's just marketing hype though. I'd like for her to have something that is low maintenance and good reliability (since...when it messes up, I'll have to take care of it).

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