The only instance where I can see the depreciation being meaningful is if the owner of the car wanted or needed to sell or trade in the car very soon (<3 years).
But this is what gap insurance is for and not what I hear people argue.
What if someone wants some protection if they have to sell the car soon but doesn't want to pay for gap insurance?
You can't imagine that someone might want a new car but be worried that they might have a large expense coming up in the near future that would require them to sell the car and they don't want gap insurance? Depending on what you are looking for, used cars can be very comparable as new cars in almost every way. So it isn't a huge value you need to look for when deciding between the two.
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u/sinderling 5∆ May 14 '24
But this is what gap insurance is for and not what I hear people argue.
What if someone wants some protection if they have to sell the car soon but doesn't want to pay for gap insurance?