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Reply to "Tell me how much I can afford to pay for a new car"
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[quote=Anonymous]I'm the one that posted above about saving 2,300 a year. I thought on the subject more and that's only the "savings" for the first 3 years of the car's life. Now if you want to figure out the savings over the life of the car, lets assume the car lasts 10 years. On the used car purchased for $12,000 you'd drive the car years 4-10 for a total of 7 years at a price of $1,714/year. If you buy the car for $20,000 and drive it year's 1-10 you obviously drive the car for 10 years at a price of $2,000/year. So you would be saving roughly $300/year by buying used. I'm not sure I'd classify that as a "waste of money". Now if you're able to get the car for the rip-off price that the dealership gets for the trade in then sure but normal consumers aren't going to get a good deal at a dealership. Ever.[/quote]
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