[kdawg22]

Hey everyone this is off topic, but since passing I am looking into getting a new car. What are everyone’s thoughts on leasing vs. buying new vs. buying a slightly older pre-owned.

Thanks!

Trust the Process

FAR - 83 Wiley
BEC - 68 Wiley, 74 (Wiley & NINJA), 79 (Wiley, NINJA, & Becker SIMS)
AUD - 72 Wiley, 77 (Wiley & NINJA)
REG - 88 Wiley & NINJA

 

[Yolonge]

Almond
M123

Fact: In today's car market, car out of the dealer's lot do not lose value. Look above and see why I stated “It barely loses anything, and without actual usage car value does not drop”. I cannot believe how people in accounting forum can be so financially ignorant. Anyone who bought the new car or new car with very few mileage will agree that price paid will not be far off if it was to be purchased at the dealer.

Let's see top selling cars in the U.S.: Ford F-150, Toyota Camry, Honda Civic.

For price comparison, will use truecar to see how much people have paid for new car, and KBB to estimate the sale price for private party (lowest) using the zipcode in MD. Note that since this is “average paid”, many people bought it less than figure below, resulting in zero price change.

Ford F-150 Supercab
New: $36415 MSRP, $31,160 average paid
Used: $30,401 sale to private party @ 50 miles
Change: -$759, -2.43%

Toyota Camry Base LE
New: $24,240 MSRP, $19,627 average paid
Used: $18,243 sale to private party @ 50 miles
Change: -$1384, -7%

Honda Civic, Base LX
New: $20,415 MSRP, $17,914 average paid
Used: $17,308 sale to private party @ 50 miles
Change: -$606, -3.4%

Unless you are buying a high-end luxury car, your car does not drop in value once you leave the parking lot. Most mainstream cars have very low depreciation with strong used car market, also factoring with new car incentive & low interest rate, it makes buying a new car not a bad financial decision as long as you will keep the car for good amount of time.

FAR - 83 (1/7/16)
BEC - 87 (4/18/16)
AUD - 92 (7/2/16)
REG - 83 (12/5/16)
Ethics - 100%!

Licensed CPA in state of Maryland Feb 2017

Materials: Wiley book + Ninja MCQ

FAR - 83 (Jan 2016)
Study time: 6 weeks
BEC - 87 (April 2016)
Study time: 2 weeks
AUD - 92 (July 2016), (74 Feb 2016), (72 May 2016)
Study time: 4 (Feb) + 2 (May) + 3 (July) = 9 weeks total
REG - (70 April 2016)
Study time: 3 weeks

[M123]

That's a neat story but is your valuation based on (to bring it back to CPA – see what I did there 😉 ) :

a) Principal Market
b) Most Advantageous Market
c) Cash in hand offer

Unless it's cash in hand – it's all academic.

Try selling a vehicle new off the lot – if you can source such a buyer – they will have to buy you out of financing – you will pay daily interest plus likely any fees associated (such as prepayment penalties for more risky buyers) with the transaction to allow a market transaction to take place.

I've bought and sold many cars. You keep echoing the sentiment from my first post on the topic – “Used cars were a seller's market for a while and it didn't make sense to buy late model used in some cases – as a “door buster” deal on a new car would be better”

But if it makes you feel like you won by parsing words and coming up with hypothetical scenarios to supersede my real world experience – please do so.

Gold star. I would however not have you doing valuations for me in my organization without more practical experience.

PS – any lease deal – you generally have to pay the total of lease payments if you want to end the lease early – effectively prepaying interest so that's a prepayment penalty and a pox on the lease option.

AUD - 77
BEC - 81
FAR - 77
REG - 81

REG - 1. Becker only - fail (forgot to study depr - oops); 2. Becker only - Pass
FAR - 1. Becker only - fail; 2. added Ninja Notes and MCQ - Pass
AUD - 1. Becker videos; Ninja Notes, Audio, MCQ, Becker Notes - Pass
BEC - 1. Ninja Notes, Audio, MCQ, Becker Notes - Pass

[Yolonge]

I am sick of people spreading false information, about how car loses 10-15% immediately when it leaves the dealer's lot when normal cars do not lose any value.

10-15% is annual depreciation for most cars, with actual usage (say 12k), not at 1 mile. I bought my first car new, but I intend to use my next car slightly used, so I am not against used car at all. Number is number and you should not give out false information in public.

Almond – “Oh and some people swear by buying new and never buying pre-owned. It's somewhere between 10-15% immediate depreciation the moment a new car exits the lot.”

No unfortunately it does not depreciate when you leave a lot. It will depreciate, however, base on the age, mileage, and condition (unless you wreck your car in 1 mile, not applicable) of the vehicle.

M123 – “If someone asked you to pay them $20,000, drive 100 feet and then get $17,000 back, would you do it? That's what buying a new car is. Drive it off the lot = instant depreciation.”

It is not, and it will still be $20,000. Maybe $19,500, it will just take little time to sell. Are you counting time as money as well?

FAR - 83 (1/7/16)
BEC - 87 (4/18/16)
AUD - 92 (7/2/16)
REG - 83 (12/5/16)
Ethics - 100%!

Licensed CPA in state of Maryland Feb 2017

Materials: Wiley book + Ninja MCQ

FAR - 83 (Jan 2016)
Study time: 6 weeks
BEC - 87 (April 2016)
Study time: 2 weeks
AUD - 92 (July 2016), (74 Feb 2016), (72 May 2016)
Study time: 4 (Feb) + 2 (May) + 3 (July) = 9 weeks total
REG - (70 April 2016)
Study time: 3 weeks

[Richarddix]

Yes, you can market your auto to a junkyard. The quantity they will certainly pay you will certainly depend upon several variables, consisting of the problem of your automobile, its make and version, as well as the present cost of scrap metal.

If your automobile is in good condition and has some parts that can be salvaged, you may be able to obtain even more money for it than if it remains in bad problem and also has no salvageable parts. In addition, some junkyards may want buying your vehicle for its scrap metal worth, which is established by the weight of the auto and also the existing market rate of scrap steel.

To get an exact quote of exactly how much a junkyard will certainly pay you for your automobile, you can speak to numerous local junkyards and also provide them with details regarding your automobile, such as its make, model, year, as well as problem. They might additionally request for additional information about the car's engine, transmission, as well as any kind of salvageable parts. Based upon this information, they need to have the ability to supply you with a quote of just how much they agree to spend for your auto.
The particular files you need to sell your automobile to a

BBCode you used is not allowed.

wrecking yard [/url] might differ depending on the state or country where you live, but usually, you will require the following papers:

The title of the automobile: This is the lawful paper that shows ownership of the automobile. If you have a lien on the auto, you will certainly likewise require to give the lien release document.

Your vehicle driver's license or government-issued ID: You will need to give a valid type of identification that verifies you are the proprietor of the auto.

Receipt: Some states may call for a costs of sale to be completed as well as authorized by both the buyer and also the vendor. This paper describes the details of the sale, such as the purchase price and also the problem of the auto.

Registration: Depending on the state or nation, you may likewise need to supply an existing registration for the lorry.

Release of obligation: In some states, you might require to complete a launch of liability form to secure yourself from any type of future lawful or financial responsibility pertaining to the cars and truck.

Before marketing your automobile to a salvage yard, it's a good concept to get in touch with your regional Department of Motor Vehicles (DMV) to make sure you have all the essential papers as well as to learn if there are any extra requirements details to your area.

[Author]

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