Vehicle ownership carries phantom costs beyond the purchase price, and many underestimate true costs while overestimating how much they need to own a new car. Ride-hailing services are becoming faster, more efficient, and potentially more affordable when considering opportunity costs versus ownership. A recent case involved a person relocating to New York City offering a nearly new Honda Accord, where sellers should expect roughly 85% of purchase price due to depreciation. Dealer offers like Carvana's may return about 84% and trade some value for time savings and convenience. Private sales can yield higher proceeds but require more effort and time. Insurance mistakes cause ongoing overpayment for many Americans.
In a number of my prior pieces, I highlighted the real costs of vehicle ownership and how many may be at risk of underestimating the true costs (think the phantom costs that go well beyond the purchase price of a new car) and overestimating how much they really need to own that flashy new ride. Indeed, ride-hailing is getting faster, more efficient, and perhaps soon it'll also be more affordable, especially when you consider the full extent of the opportunity costs between owning and hailing.
In any case, I ran into a specific case involving an individual on Reddit who landed a new job based in New York City and is willing to let go of their Honda Accord (a fairly pricey sedan), which they bought just last year. Indeed, choosing not to drive in NYC, I think, is always a wise decision. However, even a new car is going to carry a considerable amount of depreciation. As such, anyone looking to sell their new car must accept the fact that they'll probably get 85% of what they paid.
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