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[quote=Anonymous][quote=Anonymous]As a rule a new car will depreciate 15-20% each year. I would get a higher-end used car that's one or two years old--just coming off of a lease, certified and still under a warranty.[/quote]

It really depends on the car. Also, it's foolish to compare a used car price against a new car's MSRP since there is typically a hefty discount of 10-15% when sold. In my experience, even for MB and BMW, the depreciation is closer to 10% a year, and no where near 20%. The residual on a BMW or MB is not less than 50% after a 3 year lease. For example, the residual for a 2020 C300 after a 3-year lease is about 58% of MSRP, factoring in a 10% negotiated "dealer contribution" at time of sale, you are looking at a residual of about 64% based on the negotiated price. This works out to 12% depreciation per year if we don't compound. I'm not saying that 12% a year depreciation is a good deal, in fact I don't and would generally recommend cars that have about 5% depreciation per year, but just wanted to point out that the math of 15-20% depreciation per year is incorrect. [/quote]

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