- Jul 12, 2006
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Even if you are driving X car into the ground, why wouldn't you avoid the new car's first 2 years depreciation hit if you could? Even as an AT forums baller, that's still money saved in your pocket.
I don't find Edmunds TCO numbers very accurate at all, but they are indexed to 15k annual miles (double what I drive). Ignoring actual miles that you drive, if we just accept the Edmunds numbers as linked by JCH13, you're losing $9k or 29% of the initial cash price over the first two years.
(At varying rates of depreciation,) This is pretty much true for all new cars. SUVs/light trucks are in high consumer demand and don't depreciate as rapidly as "passenger cars." A few cars like the Honda Accord also depreciate slowly compared to average, in which case I would consider buying brand new.
Frankly I'm a bit surprised Edmunds projects you lose only 54% over 5 years. You'll lose that much over 39 months in many German luxury sedans. What's ironic is those who say well that's why you lease a German luxury car, to avoid depreciation.![]()
Oh, I definitely would. That's why a patiently wait for one of those 1.5-2 year old "used" vehicles that shows up with sub-30k miles on it. problem is...these local dealerships have prices all over the place right now. Some are showing SE-Autobahn Trim, new 2018 or 2019, at similar prices to used vehicles at the same age. I don't know what to think about that. (for example--the mileage comparison between those wouldn't matter for me, because I would never match the mileage limit on that warranty, with the same amount of years left. ....the warranty would effectively be the same for me on a 2 year car with 30k miles and a 2 year car with 100 miles.
