Quote:
Originally Posted by hulkrogan
If we're cherry picking examples, then I'm going to pull out a car I know of that was bought in '08.
2004 Audi S4. Sold for just over $80,000 when the first guy bought it.
Resold in '08 (3.5 years old)
-40,000km
-bought from a dealer so CPO (2 more years of factory warranty bringing it up to 3.5 years of warranty for me, this obviously raises the sticker price).
-$41,000
Buying new the finance rate was actually worse than used, so we'll throw that out the window and go straight depreciation.
Buying a new one, 3.5 years later you've had $40,000 in depreciation.
Buying a used one, 3.5 years later that car was worth ~$23,000 still. Just finished the warranty.
That is a freaking huge difference.
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My point was that it's not always a slam dunk better way to go. Buying a 2 year old car off a lot, you lose a couple thousand too driving off the lot. All things considered, the two options are not far from being a wash in most cases I would bet.
You can get the car you want with a lower payment buying used and maybe help your cash flow, but in terms of the impact on your bottom line, it is probably close to the same 5 years down the road.
I get a little annoyed at the pretentious some show towards "anyone stupid enough to buy a new car". We all know cars are bad investments. I'd argue cars are not an investment any more than a stereo or tv are. Those don't hold their values worth crap either, but just because I bought my last tv off Craigslist, doesn't mean I call everyone who buys a new tv a dumbass.