Depreciation
Without rehashing the complex debate of used vs new, I want to examine only one issue: Depreciation. You can also assume I am paying for the car with cash - no financing.
I am assuming my intended purchase, a Honda Civic Si, will set me back $30K. I am further assuming that it will last about 10 years. Therefore, my effective cost per year, examining only the depreciation to 0, $30k/10 = $3K/year;.
A similar 3 year old used car, will cost 67% of its new purchase value. Again, looking at 10 year life with only 7 remaining, its cost per year is (0.67)X$30K/7 = $2857/year.
http://www.intellichoice.com/1-12-2015- ... rices.html
$3000 - $2857 = $143.
Don't try and tell me the car won't have zero value after 10 years. Of course it won't, but remember both used and new car is now 10 years old. They both have the same value, all things being equal.
Conclusion: By buying new I am costing myself an extra $143/year. I am paying an extra $143/year for the luxury of a brand new car. Why on earth would I want to risk the unknown issues that could come with that used car??? Thats $12/month for a little longer warrantee . $12/month for the security of beginning with a clean, unused car.
Sorry, I don't understand the used car argument unless you're short of cash and can't afford the new car with cash.
I am assuming my intended purchase, a Honda Civic Si, will set me back $30K. I am further assuming that it will last about 10 years. Therefore, my effective cost per year, examining only the depreciation to 0, $30k/10 = $3K/year;.
A similar 3 year old used car, will cost 67% of its new purchase value. Again, looking at 10 year life with only 7 remaining, its cost per year is (0.67)X$30K/7 = $2857/year.
http://www.intellichoice.com/1-12-2015- ... rices.html
$3000 - $2857 = $143.
Don't try and tell me the car won't have zero value after 10 years. Of course it won't, but remember both used and new car is now 10 years old. They both have the same value, all things being equal.
Conclusion: By buying new I am costing myself an extra $143/year. I am paying an extra $143/year for the luxury of a brand new car. Why on earth would I want to risk the unknown issues that could come with that used car??? Thats $12/month for a little longer warrantee . $12/month for the security of beginning with a clean, unused car.
Sorry, I don't understand the used car argument unless you're short of cash and can't afford the new car with cash.