When buying a used car..how important is depreciation value?

[Syringer]

And is it better to get a car that depreciates more rapidly or slower? On the one hand, for the same initial price, you will get a "better" car..that is, one that was initially priced higher buying one that depreciates faster than one that doesn't depreciate as much. Therefore if you're financing it your initial and future payments will be lower.

However even when used it will still depreciate more rapidly than its more stable counterparts..so which would be the better move?

 

[jadinolf]

One factor to consider is how long you are going to keep it.

I bought my present car expecting it to be my last so depreciation was not a consideration.

 

[jagec]

Depends on how old you're going for. Since I buy 15-year-old used cars, it really doesn't matter much.

 

[Neurorelay]

If the car is a late model....be sure you are putting in a large downpayment, or when you go to trade in you will be uspide down and owe more then it is worth. That large down payment offsets the depreciation.

 

[aplefka]

Cars are for humans, silly spider.

 

[b0mbrman]

Originally posted by: Syringer
And is it better to get a car that depreciates more rapidly or slower? On the one hand, for the same initial price, you will get a "better" car..that is, one that was initially priced higher buying one that depreciates faster than one that doesn't depreciate as much. Therefore if you're financing it your initial and future payments will be lower.

However even when used it will still depreciate more rapidly than its more stable counterparts..so which would be the better move?

I would compare (utility - cost to maintain - cost to insure) vs. depreciation.

 

[ElFenix]

Originally posted by: Neurorelay
If the car is a late model....be sure you are putting in a large downpayment, or when you go to trade in you will be uspide down and owe more then it is worth. That large down payment offsets the depreciation.

what?

cars depreciate less in percentage terms the older they are. if you want to avoid being upside down you need to pay more the newer the car is.

 

[LordMorpheus]

Depends. You buy a relatively new car, you want low depreciations so you don't loose all your money.

You want a cheap-as-dirt car like me, the more depreciation the better, means I can afford a newer automobile . . . problem is I have to research a bit to make sure what I'm buying isn't going to fall apart on me.

 

[Neurorelay]

Originally posted by: ElFenix

Originally posted by: Neurorelay
If the car is a late model....be sure you are putting in a large downpayment, or when you go to trade in you will be uspide down and owe more then it is worth. That large down payment offsets the depreciation.

what?

cars depreciate less in percentage terms the older they are. if you want to avoid being upside down you need to pay more the newer the car is.

Hence the comment "late model"....5 years or newer.