Instead of this "Look carefully at how well the car holds its value,
especially if you're taking out a long loan" just pay cash and buy used
so the major depreciation hit has already happened.
First comment is spot on. If "saving money" and "car" are going
to be the subject, buying new is the last thing you should do. You can get
plenty of cars with lots of life left for 1/3rd the cost of a new buy. They
won't last as long, and there is some risk that can be mitigated with
knowledge and homework. But at that kind of discount, it's worth
investigating if money is important to you.Even if you're
terrible at it. Factor in "no loan" and the fact that you'll can
still come out ahead even if you blow it on a car due to the shear size of the
Very informative article! Another after purchase cost is insurance which varies
greatly depending on the make and year of the car, as well as the driver's
There is a case for buying new, and that is to get a deep discount at the time
of purchase and turn the car over before it isn't worth anything. An
advantage is that you always have factory warranty so never need to pay for
repairs. Also, tires never have to be purchased. And you have the peace of
mind knowing that the odds of your car breaking down on a hot summer day going
up Parley's Canyon or any other major problem are minimal. For my wife and
daughter, I don't need to worry about the "cheap, already depreciated
klunker" making it over the summit. I've actually bought a new car for
$15 dealer profit and also bought a new car (American at that) and drove it for
7 months, selling it for more than I paid for it. So it can be done, folks.
You just gotta know the business and be willing to walk away at the right time.