Gitos post proves my point. (Even though it's an extreme example)There is a transaction cost to buying a car that is separate and apart from depreciation.
It's higher with a succession of used cars Mostly, it is the cost of selling wholesale and buying retail, but it includes the risk of a miscalculation or bad luck every time there is a transaction. It includes the cost of tire-kicking. It includes the transaction taxes. Those are real, if hidden costs. They are always higher for the used car buyer than for the new car buyer willing to take care of and hold on to his car.
I'm not saying that this always outweighs buying used—-not by a long shot. But it should be taken into account.
It's higher with a succession of used cars Mostly, it is the cost of selling wholesale and buying retail, but it includes the risk of a miscalculation or bad luck every time there is a transaction. It includes the cost of tire-kicking. It includes the transaction taxes. Those are real, if hidden costs. They are always higher for the used car buyer than for the new car buyer willing to take care of and hold on to his car.
I'm not saying that this always outweighs buying used—-not by a long shot. But it should be taken into account.