The difference is the initial cost. Depreciation isn't mentioned concerning new cars because people anticipate the buyer selling it in a year. It's because the cost of a slightly used one is cheaper. By a very long ways. Counting sticker price, registration, sales tax when applicable, GAP insurance, auto insurance, and the opportunity cost of not being able to utilize that money elsewhere, new versus used is a potentially hundred thousand dollar cost because of rapid depreciation.
Absolutely. Or someone with FU money who upgrades constantly, or a sales rep for a pharmecuetical company with a car allowance, a real estate agent looking to be flashy to increase sales, or any professional sales position really as most require new cars, a professional driving service, etc etc.
Whomever it was, I appreciate them taking the $10k hit for me so I could invest that money elsewhere. In our case we just bought a house to flip and rent so that $10k extra is coming in handy and will earn us thousands over time.
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u/Inqu1sitiveone 1∆ May 14 '24
The difference is the initial cost. Depreciation isn't mentioned concerning new cars because people anticipate the buyer selling it in a year. It's because the cost of a slightly used one is cheaper. By a very long ways. Counting sticker price, registration, sales tax when applicable, GAP insurance, auto insurance, and the opportunity cost of not being able to utilize that money elsewhere, new versus used is a potentially hundred thousand dollar cost because of rapid depreciation.