Cost of Ownership Comparison 2020 to 2018

[Rj Smith]

Has anyone compared their reality vs what Edmunds suggests? Immediate flags are:

2018 @ https://www.edmunds.com/ford/expedition/2018/cost-to-own/
2020 @ https://www.edmunds.com/ford/expedition/2020/cost-to-own/


1. Can't modify anything so the values are generic
2. Price is off,
3. Finance costs are off. For new, can't account for dealer incentives or 0% APR
4. No way to account for intangibles of # of trips to the mechanic warrantied or not

BL: Anyone find value or truth to their experience on these?

Commentary:
Torn between buying a 18 CPO 202 A ($43k after tax) or a 2020 201A w/pano ($55k after tax).... I think i'm trying to convince myself that the new car payment ($733 * 60 months, 0%) is a better value over the long haul than the used car ($634 * 60 months, 4%) payment.

More depreciation with the new car, but more used financing interest total payment ($3,612).

Cash flow neutral but... Could invest that $100 a month and earn 8%

Beyond the $$, I need to assess personal value of the 201 vs 202 packages (I don't think much).

EDIT I spreadsheet this and I came up with at the 5yr mark, the 2018 costs $10k less than the 2020 with less debt to income (minor credit difference), better options package, but will probably have more mechanic visits some of which could be lengthy. This confirms what others have said often, buy a gently used.

I just wish I could put a value on the worries of the 2018 model year (42K miles) vs the ones they figured out in 2020.

 

[byathread]

This is just me, but, a 12K price difference for a brand new vehicle that you are not paying interest on a loan for that also comes with the factory 3/36 warranty is no brainer in my view for this circumstance. You don't mention anything about how long you keep vehicles? Typically, that factors in a little too for some folks.

These are all subjective points...

The one objective one is all vehicles depreciate and are an expense for the owner.

I prefer brand new vehicles that I drive for at least a decade or longer, myself, but avoid owning first model year refresh like that 2018... That being said, some manufacturers have bulletproof reliability and some don't. I think Ford is a mixed bag depending on specific vehicle and some 2018s have been trouble free for their owners. At least if new, you have that warranty to work any kinks out. Good luck with your decision!

 

[Rj Smith]

Edmunds factors in the cost of the extended warranty in both vehicles so that is accounted for. I'm not sure you can get a Ford ESP on an 18 as the ford website says cars must be w/in the 3yr's/36k to be eligible. If true, then the extended warranty would have to be through a third party which I think is worrisome.

We keep cars for 7 yrs, the forecast only goes 5. In other news, wife is placing high value on the BLIS function so maybe my hands are tied...

 

[byathread]

BLIS is nice for this beast, I guess. A bell/whistle, etc. that will babysit what we all should really be doing anyway. [emoji102] Does the new one have the 360 camera? It is a really nice feature for tight maneuvering, pulling out into blind intersections, etc. Just used it the other day with the snow mounds around here... Gives you eyes out front down the road where you otherwise wouldn't have them/be crossing your fingers pulling out. [emoji106]

 

[ManUpOrShutUp]

Edmunds factors in the cost of the extended warranty in both vehicles so that is accounted for. I'm not sure you can get a Ford ESP on an 18 as the ford website says cars must be w/in the 3yr's/36k to be eligible. If true, then the extended warranty would have to be through a third party which I think is worrisome.

We keep cars for 7 yrs, the forecast only goes 5. In other news, wife is placing high value on the BLIS function so maybe my hands are tied...

Ford's CPO limit is 75K and 6 years. Anything newer with less than 75K miles is eligible to be certified.

You can't truly calculate cost-of-ownership until you have owned the vehicle for a bit. Expect that an Expedition is going to have a very high cost of ownership vs a smaller vehicle (more gas, more maintenance, more parts to fail [2 cats vs 1, etc.], etc.) and raise that cost higher for higher trim levels with more luxury features that are even further prone to failure. In short, if cost-of-ownership is paramount, an Expedition isn't a great choice and a late model Expedition is even worse.

 

[NowThatsDamp]

If you can't buy a car outright, you probably shouldn't be buying the car. Car loans are almost never a good idea, especially 60 month loans, with or without interest. Taking on debt should always be avoided at all costs, just basic financial rule of thumb.

 

[Rj Smith]

If you can't buy a car outright, you probably shouldn't be buying the car. Car loans are almost never a good idea, especially 60 month loans, with or without interest. Taking on debt should always be avoided at all costs, just basic financial rule of thumb.

This the Dave Ramsey approach and good for those that don't do well with finances. If you are disciplined where and how you use debt, you can significantly reach improved outcomes. For those that need to correct bad credit behaviors, I'd agree with you.

 

[Rj Smith]

BLIS is nice for this beast, I guess. A bell/whistle, etc. that will babysit what we all should really be doing anyway. [emoji102] Does the new one have the 360 camera? It is a really nice feature for tight maneuvering, pulling out into blind intersections, etc. Just used it the other day with the snow mounds around here... Gives you eyes out front down the road where you otherwise wouldn't have them/be crossing your fingers pulling out. [emoji106]

360 would be nice but its a 302A package and above option

 

[Trainmaster]

I agree with the principal that no debt is good debt, unless you are buying an appreciating asset. If you don't have the cash, you shouldn't be buying the car. I drove old cars, sent five kids to private college, amassed great real estate holdings and retired at 49.

But I understand it's more important for some people to have nice stuff. It's a choice. I never owned a nice truck in my life. Only if I had the cash, would I buy the 2018 because it would cost me $12,000 less than the 2021.

but... Could invest that $100 a month and earn 8%

And if I could earn 8% on any investment, I'd spend $2500 on a 2000 Ford and put the other $45,000 into that investment. That would put another $400/month in my pocket.

And I wouldn't be bothered a bit by people making fun of my old Ford. I'd keep it real nice and I'd pick up their bar tab.

 

[ManUpOrShutUp]

This the Dave Ramsey approach and good for those that don't do well with finances. If you are disciplined where and how you use debt, you can significantly reach improved outcomes. For those that need to correct bad credit behaviors, I'd agree with you.

The principle there is that you are using debt to get ahead (e.g. a small business loan, buying inventory on credit and then selling at a profit, etc.). Heck, you could even apply it to a vehicle if we are talking about a vehicle that is generating more income than costs. In this case though, we're just talking about a personal vehicle with rapidly depreciating value. That doesn't qualify as "good debt" under any umbrella. That said, I don't GAF as it's your money.