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Old 08-05-2016, 03:06 PM   #41
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Use to be new cars seemed to drop $5 thousand a year in depreciation. Just had our X5 BMW at dealer and it looks like in 4 years it has lost more like $8,000 to $10,000 pa. So the hit on new cars is getting bigger and bigger!
Then the US market must be very different then. Out here depreciation is at an all-time low. The new-car dip has all but vanished. Lease rates are dropping too.

Although it is less true for the premium segment (Like the X5) vs. compact cars, the trend still holds.

Two caveats though, also here: 1) Don't buy consumer price, wait for the great deals and 2) if you buy young second-handed: don't pay for guarantees you already have. The manufacturer typically has guarantees as well, up to seven years on KIAs for example on the engine, so it makes no sense to pay for added guarantees on that same engine.

I saved 800 euros on my car by skipping on a 'guarantee' pack since it covered what already was covered. Pure profit for the dealer.
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Old 08-05-2016, 03:10 PM   #42
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Realistically, there is no real difference between a brand new car and one 3 years old...especially if the model line hasn't been updated.
There is : warranties. You can extend them though.
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Old 08-05-2016, 03:35 PM   #43
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There is : warranties. You can extend them though.
Buying new to get a warranty may give peace of mine, but it comes at a high price.
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Old 08-05-2016, 03:54 PM   #44
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Buying new to get a warranty may give peace of mine, but it comes at a high price.
You can't get a peace of mine, no matter how much you want it...
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Old 08-05-2016, 04:34 PM   #45
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You can't get a peace of mine, no matter how much you want it...

But I guarantee I can give "a piece of mine"... :-)


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Old 08-05-2016, 05:36 PM   #46
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Use to be new cars seemed to drop $5 thousand a year in depreciation. Just had our X5 BMW at dealer and it looks like in 4 years it has lost more like $8,000 to $10,000 pa. So the hit on new cars is getting bigger and bigger!


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While the depr. to you maybe $5K per year the next buyer does get $5K off the purchase of the used car. I think you will find that you will be paying close to the price of a new car. Dealers make more money off of used cars than new cars. For me the price difference between a 2 year car with 30,000 miles and a new car is not worth buying the used car. But then I keep them a long time, much longer than 3 years.
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Old 08-05-2016, 05:36 PM   #47
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Buying new to get a warranty may give peace of mine, but it comes at a high price.
Or buy a Lexus or Toyota and skip the extended warranty
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Old 08-05-2016, 06:17 PM   #48
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While the depr. to you maybe $5K per year the next buyer does get $5K off the purchase of the used car. I think you will find that you will be paying close to the price of a new car. Dealers make more money off of used cars than new cars. For me the price difference between a 2 year car with 30,000 miles and a new car is not worth buying the used car. But then I keep them a long time, much longer than 3 years.

High end autos the differential between new and 3 year old certified is huge. Can easily be 40 % and even 50%, which works out to tens of thousands of dollars.


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Old 08-07-2016, 08:03 PM   #49
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I look at any kind of dealer financing (leasing or buying with payments) as one more chance for them to extract more money from me. All the lease lingo mentioned above is not only foreign to me, but also confusing. I suppose it really isn't once you know what it all means. My point is that I prefer simple to complicated. For this reason, I have become a fan of buying used with no payments (cash only.)

I really do understand OPs desire for a nice new car for which he is not making a "life-time" commitment. I understand the view point that "Hey, I've scrimped and saved and now it's time for the pay-off of getting what I want." Having said this, I still think a 2 or 3 year old "nice" used car could be traded for another 2 or 3 year old nice used car if the first one doesn't work out. BUT - we all have our own way of looking at things. If we can afford it, who is to say what is good, better or best. As always, YMMV.
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Old 09-15-2016, 10:39 AM   #50
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For any that are curious I ended up paying $5k cash for a used car.
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