Buying a new car is a terrible financial move. You are paying interest on something that depreciates.
Buy a used car.
Unless you buy the used car outright, you are also paying interest but on an already depreciated item that is depreciating further.
It will not depreciate beyond the salvage value. Therefore, if you buy one close to salvage, you are losing less.
You did make a valid pint, though.
This is true.
I incorrectly assumed that if a discussion about purchasing a vehicle was taking place, the purchaser would go significantly above salvage value.
Both good points, but two things I would offer:
If the car is close to salvage, you begin to run into the issues of maintenance and upkeep on an older vehicle which could very well defeat the cost savings you hope to achieve.
Unless I am horribly mistaken, the fastest depreciation occurs early on with most new cars.
I like the idea of used cars, but not something that is almost to the point of being worthless. I guess I am only willing to go so far on cost savings…[/quote]
upkeep is a good point.
with a new car you at least know where it has been. I’d gladly spend a few thousand more and be confident that my vehicle has been well kept. Buying used can wind up costing more than new if you factor in maintenance, years of usability et cetera.
not that buying used is all bad. it may be a good idea to buy a warranty on a used car if one is offered however.
has the OP considered a motorcycle? they are excellent on gas mileage and way cooler than a honda to boot.