If you paid $25,000 for a new car it is only worth $18,750 the day you drive the car over the curb. You lost $6,250 of your value immediately. After 2 years that vehicle may be worth only $14,500. Not a good investment!
If you lease that same car for 3 years the payment might be low at $250 per/month after you put down $1,995 as most ads say. However, after 36 months you have paid $10,995. What do you have after paying 10,995? Nothing.
If you purchased the same car, but only 3 years old you might pay $13,200 which would include an extended warranty up to 100,000 miles. After another 2 years that pre-owned will still be worth $9500.
The better value is pre-owned.
A message from Peter Barry