It is nice when all the new model cars come out and there is always a new model that catches your eye. Why would anyone buy a brand new car? Yea it is nice to have something new to drive but as soon as you drive it off the lot you've just lost your retirment fund on the depreciation.Typically you lose $5,000.00 as soon as you drive off the lot.
I have come to this conclusion after buying several new cars myself and losing money on them. Now it is getting time to but my wife a better vehicle and it amazes me how much cheaper you can get a slightly experienced vehicle for. My wife told she would like a BMW, yea right!
Well as I was conversating with some friends and told them what she wanted and they were like " why not you can get one pretty cheap". So I started looking and they were right! I have found several 2002 BMW 325i sedans for between $11,000 to 14,000 averaging around 50,000 miles. These are very clean nice cars too! I looked up what it would have cost new and the same car was $27,000 brand new not including the intrest you have paid unless you pay cash. The car has lost over half its value in no time at all.
The worst car so far I have seen is the Ford Fusion. I have found some 2006 models for $11,000 with only 20,000 miles on them. A brand new Ford Fusion with the same options runs $22,000 MSRP. Yep, the car lost half its value in one year. I will never buy a brand new car again! Did you know that 80% of all millionares buy used cars that have already lost their depreciation. I say buy slightly experienced vehicles and put your extra $5,000 in an investment plan.