Anonymous wrote: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.

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.

Anonymous wrote:

Anonymous wrote:Can I share a real scenario?

2019 version of a car is $35k. 19,000 miles on it. I can pay it in cash.

2020 version of the car is $39k after all the incentives and there's a 0% financing offer as well.


I've sort of been programmed to look at used cares, but if I financed new, that would let me keep more money invested and earning at a good rate. Thoughts?

My concern is a big chunk of the manufacture warranty is gone on the 2019 and why is a year old car being traded it - usually its for issues except if its a loaner. I would spend a bit more, negotiate harder and buy new. I prefer to pay cash.

We got a used car, less than one year and 8500 miles but it had two owners not one. We were nervous and took it to a mechanic but five years later not a single issue.

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.

Anonymous wrote:

Anonymous wrote:I buy CPO that is within warranty with no more than 20,000 miles on it. Has worked out for me and I have saved a lot of money with this approach. I did buy new one time and will never do again b/c you take too much of a hit up front and it's not worth it cost-wise in long run. I also have a beat-up Jeep that is paid off that I use for local trips and hauling oversized things, so my nice car always stays nice.

Irrelevant comment but thanks tho

How so?

Anonymous wrote:Can I share a real scenario?

2019 version of a car is $35k. 19,000 miles on it. I can pay it in cash.

2020 version of the car is $39k after all the incentives and there's a 0% financing offer as well.


I've sort of been programmed to look at used cares, but if I financed new, that would let me keep more money invested and earning at a good rate. Thoughts?

My concern is a big chunk of the manufacture warranty is gone on the 2019 and why is a year old car being traded it - usually its for issues except if its a loaner. I would spend a bit more, negotiate harder and buy new. I prefer to pay cash.

If I were you I would go for a used car first because it is cheaper, 2nd it will not depreciate as quickly as your new car and 3rd buying used car and customizing it without the fear of voiding the insurance but of course, you will be good at looking at used cars.

Can I share a real scenario?

2019 version of a car is $35k. 19,000 miles on it. I can pay it in cash.

2020 version of the car is $39k after all the incentives and there's a 0% financing offer as well.


I've sort of been programmed to look at used cares, but if I financed new, that would let me keep more money invested and earning at a good rate. Thoughts?

Anonymous wrote:I buy CPO that is within warranty with no more than 20,000 miles on it. Has worked out for me and I have saved a lot of money with this approach. I did buy new one time and will never do again b/c you take too much of a hit up front and it's not worth it cost-wise in long run. I also have a beat-up Jeep that is paid off that I use for local trips and hauling oversized things, so my nice car always stays nice.

Irrelevant comment but thanks tho

I buy CPO that is within warranty with no more than 20,000 miles on it. Has worked out for me and I have saved a lot of money with this approach. I did buy new one time and will never do again b/c you take too much of a hit up front and it's not worth it cost-wise in long run. I also have a beat-up Jeep that is paid off that I use for local trips and hauling oversized things, so my nice car always stays nice.

we traditionally buy used through an dealer auction a friend attends. the last time we were in the market a new car was cheaper than the auction car, certain models retain their value better and have limited used cars out there.

I’m not an expert. But I totally buy in to the logic of buying a low-mileage used car. But twice now, I have found that in order to get the features I want and keep it low mileage, the difference between new and lightly used is not enough $$ to make me buy used. This is with Hondas, fwiw.

Anonymous wrote:I've bought one new car and one used car. I will NEVER buy a new car again. Total waste of money.

Ok I politely appreciate your post but can you respectfully elaborate why?!

PLEASE

I've bought one new car and one used car. I will NEVER buy a new car again. Total waste of money.

Used cars are a crapshoot. Always have an independent mechanic check the vehicle before purchasing. Second, the better cars don't depreciate as quickly. If a new Accord is $27K and a two or three year old one is $21K, what am I really saving if the used one has less remaining life?

Classic question I know but I have been reading and hearing a lot more people to purchase second hand always and never NEW.

depreciation, interest rates, dealers' fees, dmv fees, etc etc etc

But, I still am not aroused about the fact of using something that it may have been abused or mistreated as opposed to a vehicle out of factory.

can experts please chime in?