Does it really make financial sense to buy used over new?

[MaximumMini]

Not always true. I paid $63,000 for my Corvette brand new and it’s definitely worth more than $44,000 right now after almost 8 years! It’s actually still worth somewhere around $55,000 so it’s only lost 12% of its original price. I’ll never sell it though.

There are a few exceptions to the rule and they generally fall in the "Specialty Vehicle" category.
C7's are in pretty high demand.

 

[Patman]

There are a few exceptions to the rule and they generally fall in the "Specialty Vehicle" category.
C7's are in pretty high demand.

True, however in the last few years I have noticed that a lot of different cars are holding their value much more than they’ve done in the past. The old rule of “it drops 30% in value as soon as it leaves the lot” is actually pretty rare these days. Maybe 5-10% but not much more than that.

 

[Kurtatron]

Not always true. I paid $63,000 for my Corvette brand new and it’s definitely worth more than $44,000 right now after almost 8 years! It’s actually still worth somewhere around $55,000 so it’s only lost 12% of its original price. I’ll never sell it though.

I think the 25% depreciation hit is no longer the norm. I think it only applies to luxury cars now. It’s more like 10% now. Main reason I don’t like getting a new car is crazy high insurance rates.

 

[The Critic]

I think the 25% depreciation hit is no longer the norm. I think it only applies to luxury cars now. It’s more like 10% now. Main reason I don’t like getting a new car is crazy high insurance rates.

That isn't always true. My 2011 Prius had a higher insurance rate than my 2020 Ram pick-up.

 

[MaximumMini]

True, however in the last few years I have noticed that a lot of different cars are holding their value much more than they’ve done in the past. The old rule of “it drops 30% in value as soon as it leaves the lot” is actually pretty rare these days. Maybe 5-10% but not much more than that.

I stand corrected. I think you're right. Older vehicles are in demand and people are holding on to them much longer.
I was thinking only of new vehicles.

 

[Exhaustgases]

Not always true. I paid $63,000 for my Corvette brand new and it’s definitely worth more than $44,000 right now after almost 8 years! It’s actually still worth somewhere around $55,000 so it’s only lost 12% of its original price. I’ll never sell it though.

And if you bought a brand new 1958 corrvette for the ? $3500. or so, or even got one the day you got the vette you have now, it could still be worth up to over $200K depending on the condition of course. Just wish I still had the one I got around 1969 or so.

 

[MCompact]

I wish that I'd held on to my E24 M6; I sold it in 1995.