Quote:
Originally Posted by Weitz
Is it? If you find the vehicle that fits what you want take a look at the 2 year old models (likely a rental or lease return) and compare to the brand new. Your interest rate is going to be much higher on that 2 year old car, the savings you get are not going to be as much if you factor in the additional costs to borrow, and then the potential of an abused vehicle also needs to be factored it.
Now every situation is different but you have to look at everything.
|
Remove interest rates entirely from the equation by paying with cash and you're saving right there. Buy used in a private sale and you're not paying for staff, dealership overhead or GST. Two years old has already taken a pounding on depreciation. Have a mechanical inspection done and check the VIN for accidents and you'll have peace of mind, not to mention a two-year old car is still going to have factory warranty.
There is no circumstance where a new car from a dealership is a better financial decision than a used private sale. Plus, you get a way better car than what you can afford new.