I finally got all the paperwork for the purchase of my new car, which is actually my old company car which coincidentally came off-lease recently. I paid an even $8,000 after taxes and fees for a 2002 Pontiac Grand Prix. Kelley Blue Book and Edmunds both quoted approximately $8400 before taxes & fees for the private party value of the car, so I guess it was a decent deal. This car depreciated well over 50% of it’s price in 3 years! Poor GM. I did consider shopping around for a slightly cheaper used car with a more reliable brand, for example a Toyota Camry. But for the same price, I’d have to settle for a 2000 model with ~60,000 miles.
And to save money and spend only about $5,000, I’d be getting a late-90s car with almost 100,000 miles. In the end, I just didn’t want to deal with used car salesmen or looking through the classifieds. And I wouldn’t know the history, whereas my car has had regular maintenance and two new tires. It should have lots of life left in its V6, let’s hope so.
This leaves me with $8,000 less cash, and small dilemna. I haven’t been taking into account my cars, or any other personal property, in tracking my net worth. I also have another car, a ’95 Nissan. Some other money bloggers take their cars into account, along with any outstanding loans. Some only have cash & investments. To preserve continuity, I’m leaning towards keeping the blue-book value of my car minus $500 as part of my net worth, while continuing to leave out the Nissan.