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braisler · 03-16-2007, 10:32 AM

Buying a new car, any new car, is for suckers. Sorry, but you are taking a 25-40% hit on depreciation as soon as you drive it off the lot. Then you will not look so wise with your savings earning 5.1% and your 3.9% loan.

3.9% loan of $20000 on a car that is only worth $14000 is a bad deal. Find a car that is a year old or less from a private party (NOT A DEALER) and buy theirs at $14000 outright. Or less! Use the power of having the cash to make the deal happen. If a private party is asking $15000 for their used car, likely most of their potential buyers have to talk with a bank about financing, etc. etc. etc. If you come up with $13000 (or whatever you think the car is really worth) in cash, they may be inclined to take it.

All that aside, you can find some real nice cars under $20000 on the used market. I bought a 2003 BMW 525i touring wagon last year for $19500. Original owner still had the sticker - she paid $55800!!! Moral of the story - let someone else suffer the depreciation.

03-16-2007, 10:32 AM	#6 (permalink)
braisler Addict Location: Midway, KY	Buying a new car, any new car, is for suckers. Sorry, but you are taking a 25-40% hit on depreciation as soon as you drive it off the lot. Then you will not look so wise with your savings earning 5.1% and your 3.9% loan. 3.9% loan of $20000 on a car that is only worth $14000 is a bad deal. Find a car that is a year old or less from a private party (NOT A DEALER) and buy theirs at $14000 outright. Or less! Use the power of having the cash to make the deal happen. If a private party is asking $15000 for their used car, likely most of their potential buyers have to talk with a bank about financing, etc. etc. etc. If you come up with $13000 (or whatever you think the car is really worth) in cash, they may be inclined to take it. All that aside, you can find some real nice cars under $20000 on the used market. I bought a 2003 BMW 525i touring wagon last year for $19500. Original owner still had the sticker - she paid $55800!!! Moral of the story - let someone else suffer the depreciation. __________________ --- You do not really understand something unless you can explain it to your grandmother. - Albert Einstein --- Last edited by braisler; 03-16-2007 at 10:33 AM.. Reason: <grammar> ;)