[OAC_Sparky]

NikiterZTS,Feb 10 2010, 12:54 PM Wrote:i have a feeling that I will never buy a brand new car.....
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Buying a new car isn't for people that like to flip their cars a lot.

Personally I buy a car and keep it at least 5 years. That's about where:

1) The warranty runs out
2) it's been paid for a year and
3) the cost of owning it is marginal
4) and it's still worth something.

Example:
'05 Focus ST
5 years old, stock worth $7G
Paid $23G (not counting trade in)
23-7= 16G
Cost of ownership (purchase not upkeep) 16G/5=$3200/year or $61/week for a new car.
140,000km know the warranty history, what's been replaced, how it was driven.

Of course, I have 3 cars, two '05s and an '08 so it's what works for me. See, I paid off the Focus in 4 years and the car payment I was making is accumulating in the bank, by the time I'm ready to buy again the new car will be half paid for.

Depreciation only affects people that need to buy a new car and trade it in every 2-3 years.