Quote:
Originally Posted by nfotiu
I challenge someone to prove that buying 2 to 3 years used cars really is a wise financial move. Every time I've looked into it, it is a wash at best.
Ie, I bought a tdi wagon new recently in the US. Brand new one was 25000 with a .9% five year loan, and they include 3 year warranty and maintenance. Best deal on a 3 year old I could find was 20,000, no warranty, and I figure 4% for a 5 year loan.
Using a depreciation calculator for a car like that, I get that the 3 year old one would be worth 11,169 in 5 years, while the new one would be worth 12,863.
Total interest and depreciation for the brand new car would be 12,713 vs 10,911 for the used car. A savings of $1800 over 5 years. My guess is you'd come out behind after factoring in paying for 5 years of maintenance vs 2 years for the new car. Not to mention that having a car that is 3 years newer is worth at least a little intangible value to the owner.
|
I bought a 2005 Ford Escape XLT back in 2008. It had 75,000 kms on the odometer and I paid $14,000 for it. Brand new it was worth $26,000 and change. That's a saving of $12,000 plus I got the balance of the warranty.