Quote:
Originally Posted by redpoint5
Sure, it can be more costly... if you buy a used Bentley instead of a new Toyota Corolla.
The number 1 cost by far for most owners is depreciation, and you reduce depreciation by reducing the amount you initially spend on the vehicle (buy used).
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That depends a lot on the country. I know in Mexico it seems like cars keep their initial value for years. The last time I tried pricing cars I found a brand new, at the dealer, Mazda 2 was the cheapest car I could find that was within 5 years old in Ciudad Juárez, the fourth largest city in the country. Which is surprising, since being a boarder town you'd think that there's be a lot of cheaper imports from the USA. A new cat makes even more sense in a place like that since in five years or so you can sell it for some 80-90% of what it cost you originally.
The reason there are countries like that is the lack of people who buy brand new cars. Fewer new cars makes a lower supply of used cars. And if there's a demand for used cars then the prices go up.
That's kind of what's happening here in the States right now. The chip shortage and perhaps other factors has caused a decrease in new car availability and therefore new car sales. The result has been a decrease in used car availability, which has caused a 15% increase in used car prices, which is probably only going to increase for the time being.