- Sep 18, 2010
Or you can buy brand New with 0% interest. Put that money you saved in a separate account and make money with it while you pay for the depreciating asset.Nonsense. It always makes sense to let some other sucker pay the new car premium. You'll save AT LEAST 20%, usually a lot more. Not to mention your excise tax and insurance will be lower too. Plus, if you save up and pay most or all with cash you won't pay any interest either.
"Our data shows that cars can lose more than 10 percent of their value during the first month after you drive off the lot. The amount your car is worth will just keep falling, too. According to current depreciation rates, the value of a new vehicle can drop by more than 20 percent after the first 12 months of ownership."
20 percent the first year, and that's conservative.
And you will not save at least 20%. That is bs. You cant generalize like that because it depends on brand and model.
Some brands and models, if you go for the entry package and the truck people dont want, sure, you can save that or more. On a Tacoma? No way. Kinda like Jeep Wranglers. The difference between used with 30K miles and new is like $2K (if you are lucky).