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The one caveat here is that most new vehicles can easily be had for 20% of MSRP without much negotiating, which drastically reduces the 1st year depreciation.
True.
My numbers are for avg people. You can try and tell people all day that if you look you can buy for 20% off of msrp but they won't believe you.
This is the main reason why I bought new last time. The car I was looking at was in good demand....at that time. So the used 2 to 3 years that I normally would by at were selling at a slight premium. I found a dealer willing to go from the 34.5K msrp down to less than 28K out the door. Just right at 20% off MSRP. So the difference between new and used was only about 3 grand or so. Thats worth it imo to go with new.
My last car was a rare Subaru(Spec B) that I managed to drive for a year and a half and then sold it for $1500 more than I bought it for. Now that's a good deal.
So your argument is that somewhere, someone is making money by making and selling things? The hell you say!! How dare they!!
Lol, very funny. I'm saying if THEY can buy depreciating assets and make a profit renting them out, YOU can buy depreciating assets for your own use and save that profit for yourself.
Depends on the car. Some of the euro makes have an expensive service called for at 40k miles. But even then that is high and must assume dealership costs rather than independent shop.
Why does the cost of maintenance jump up at year 3?
I am looking at cars.com at 5 year cost of ownership. It shows: Maintenance
year 1 - $82
Year 2 - $296 Year 3 - $2017
Year 4 - $646
Year 5 - $321
I thought 3 year was an ideal mark to buy used car but based on this it looks like its better to buy 4 year old car than 3
That amount seems high, but since it exists use it as negotiating leverage on your next purchase, instant 2k price drop. Then either do the maintenance yourself or go to an indy who charges half that.
I looked at several brands to see if it was some cars that had this high maintenance fee at year 3. I looked at Toyota Camry, Toyota RAV4, Honda CR-V, Chevy Malibu, Subaru Impreza. All these cars have $2000+ maintenance at year 3.
Something interesting I learned today. Those who own new vehicles, did you get this maintenance done at year 3 and if so what were they? I never owned a brand new car so I don't know
The first time we put $2K into our Subaru Outback in one year was in year 8 of ownership, and that was the scheduled 90-100K timing belt stuff (newer models have a timing chain so lower going forward), some work on the value covers to get rid of an engine knock and the usual oil changes. Oh yeah, and tires, so about $2750 that year. Could be the reason for the spike.
Depending on how durable the tires the car came with are, year 3 might the the replacement cycle for that, which is going to bump those numbers up. We're on set #3 of tires for the Adventure Wagon now.
I looked at several brands to see if it was some cars that had this high maintenance fee at year 3. I looked at Toyota Camry, Toyota RAV4, Honda CR-V, Chevy Malibu, Subaru Impreza. All these cars have $2000+ maintenance at year 3.
Something interesting I learned today. Those who own new vehicles, did you get this maintenance done at year 3 and if so what were they? I never owned a brand new car so I don't know
Speaking for my current truck, other than routine stuff like oil, tires, etc, the first significant cost was about 100,000 miles. Now that I'm at 180,000 looking at another expense but not unexpected. I'll be fixing that and giving the truck to my son now that he's driving and get me a new one.
Take the Jeep Wranger for instance. There is no benefit to buying a used one. A 2-4 year old model costs practically the same as a brand new one. A couple years ago, I was shopping for a Subaru Outback to add to the ole family stable. Used ones actually cost MORE than brand new ones.
Same goes for most pickup trucks, the used prices are just so high for what the trucks are, it's a better value to go new especially with all the cash on the hood.
There's more to it than overhead cost too. I don't trust newer used cars, lease returns and such. The people that drive them treat them as basically disposable, why should they care? The get a new one every year or two.
I tend to buy my cars new and drive them 10+ years. Depreciation isn't an issue for me.
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