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From the point of view of these calculations it doesn't matter that the principle included loan servicing or sales commissions or what have you. The cash flow
by kasey_junk 9y ago
From the point of view of these calculations it doesn't matter that the principle included loan servicing or sales commissions or what have you.
The cash flow calculations vs the cash on hand - risk costs are where the math happens but it is perfectly possible to walk away with the decision to buy new to work out better on certain models of car.
- Consultant32452 9y agoWhat model of car?
- kasey_junk 9y agoI saw this with inexpensive manual Japanese imports the last time I shopped ~4 years ago. In particular lowend civics & Subaru imprezas were holding their value such & the dealer incentives & financing made the calculation essentially even. I have friends that said the same thing about certain diesel sedans (pre mpg scandal) but never calculated it myself.
- brianwawok 9y agoIn my case above it was for the wife, so it was a Honda CRV. Small Japanese SUVs had a very very high value retention for the first 4-5 years. Something like maybe the sticker price new is 25k, but what you really pay is closer to 21k new. A 3 year old would be going for 17-18k. After the maths above, it ended up costing more per year to buy used.