Is it pointless to finance a new car?

I've heard when you buy a brand new car it depreciates the second you drive it off the lot... but if it has a good warranty it wouldn't be something to worry about if something went wrong with it right? Whats your take on this? Would it be better to finance a used vehicle?

Is it pointless to finance a new car?
New cars are not necessarily the "best" deal. Most do depreciate rapidly, some as much as 40-50% in the first 12-18 months. Remember, you'll always "trade" years and miles for money...so if you can buy a car someone else has already "driven" the depreciation out of you'll be better off financially. Keep in mind that you will have maintenance and repairs on whatever you buy, new or used, so that may be the determining factor in your decision. Try and calculate the "total driving cost"--what it will actually cost you per month to buy, insure, fill up, and maintain the vehicle and make your decision based on that. Like I told my children (and I'm a car dealer), never fall in love with rubber, oil, and metal.
Reply:I would personally lease a vehicle if that doesnt bug you too much, that way you will never have to worry about it depreciating in value and you always get a new car every couple of years. As long as you can stay within 12-15k miles per year and dont do your own mechanical work or modifications its a good choice. Also if you own your own business you can write it off as an expense. Also you will never have to worry about not having a warranty because in a lease you will always have one!
Reply:finaincing a used vehicle is almost worse...





the price is lower, but you don't get the good warranty you get with a new one...





depends on how handy you are, and what you're willing to pay up front...





sometimes new cars get better interest rates on loans than used ones...
Reply:The finance experts say to buy a few year old honda or toyota and drive it until the wheels fall off. So that would mean do not finance a new car, go for used. BUT, these same people will never buy a used car, they lease new BMW and Benz. Do what you want, forget about what you should do.
Reply:it will depreiate
Reply:Most cars lose about 40-50% of their value within 3 yrs. So if you want to get yourself a nice 40-50% discount on the price of your car, get a model that is around 3 yrs old.


Certified Pre-Owned (CPO) are usually a good choice, however, dealers tend to pump up their price tags because they offer extended warranty. Warranty is typically design to last only long enough until your car has lost 50% of its value. Typically 3-5yrs. Most people who finance will probably run out of warranty before they finish paying for their car. So it isn't that much different from buying a used car.


So it all comes down to preference. Do you want the latest model or are you ok driving something a bit older? How long do you plan to keep the car? Can you afford to pay for your car outright? If you like having your being under warranty all the time, maybe consider leasing? There are many options here. Find out what fits your lifestyle best.
Reply:They do depreciate quite fast the first year but you can write that off! If it is a warranty and security that you want then you could buy a certified pre-owned car from a dealer and get the same peace of mind. Some people just love that new car smell- you have to decide if you are one of them!
Reply:All cars depreciate. New cars depreciate fast in the first year or two.





So a smart buyer would look for a car that is 2 years old with low miles and save a few thousand dollars off the same car if it were brand new.





There are a lot of very good low mileage used cars (most coming off lease) out there on the market, many with remaining factory warranties or extended warranties from the manufacturer.