Reply to Looking for a car after being carless for 20 years

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]2017 Corolla sold for about $15,500 when new. So you are looking at a depreciation of only $2500 for 4 years. This shows just how idiotic it is to buy a used Toyota.  If you regard the useful life of a Corolla to be 20 years, then a $15,500 price would mean $775 per year of depreciation assuming that the car is equally as desirable in its first year as its 20th year. Four years at $775 is $3100 of depreciation. Clearly, then, it's a much better deal to buy the car at $15,000, drive it for 4 years, and sell it for $13000 and experience only $625 pear  year depreciation, while driving a new car![/quote]

Prior poster here. You make a good point and I generally agree that right now buying new is often the right call, especially for a car like a Corolla that depreciates so slowly (compared to, say, an Audi that will depreciate tremendously the first year of ownership).

2021 Corolla has a starting MSRP $19,925. Here's one listed for $18,352 (before tax, title, destination and doc fees; not counting any $ you are able to negotiate off)... https://www.cargurus.com/Cars/new/searchresults.action?sourceContext=homePageNewCarTab_false_0&selectedEntity=d295&zip=20009#listing=281368988

All that said, $13k vs. $18k is enough of a difference to matter for some. [/quote]

The LE actually has a starting price that's higher, at 20,375 plus destination, making it $21,519. The standard discount for a Toyota LE has always been about 15%, which is why you see it being offered for $18352 without haggling. However, if you look further down on the page you posted, a "great price", which means you can negotiate this price, is $16,313. The difference between $13k and $16,313 is only $3313, or about $825 per year. If you bought the car new for $16313 and drove it to the ground for 20 years until it is worthless, the depreciation would be $815 per year. So you are only paying $10 more per year to drive a new car for 4 years and pass it off to someone who is going to pay nearly the same amount of depreciation to drive a used car. Meanwhile you enjoy the newest technology, newest safety features, newest styling, seats that have never been farted on, and warranty![/quote]

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