Buying a New Car Could Be Cheaper Than Buying Used

[CarnivalGal]

I just bought a new car. I looked into a late model used one, but they were really only a few thousand dollars less. Our interest rate is 0%. That's not and option for used cars. The insurance on my brand new car was substantially less than the 10 year old car I was driving because the new one has a bunch of safety features the old one didn't. We also negotiated an extended warranty, so it's covered bumper to bumper for 100K miles. It made more sense for us to buy new.

[Rocko20]

Originally Posted by Elliott_CA

Nope... a new Range Rover is $80k. A 2015 Range Rover can be had in the $45k range used -- that's $35k in depreciation. If you keep the used Rover for 5 years the repair bills are not going to add up to $35k, no way. You come out way ahead buying used.

That depreciation is only realized if the new Range Rover owner decides to sell the car before the rate of depreciation levels out to a relative flat/steady level.

Ultimately when the 2nd owner buys that used Range Rover (or other luxury foreign car) without warranty, they will be stuck with those expensive repair bills that will be showing up more frequently. Especially considering the price will have a nasty markup on the lot because its a foreign luxury brand SUV with solid demand.

It's not breaking news to understand the money pits of many used (especially foreign luxury) cars. If they weren't money pits, no one would ever buy a new car.