[Year's_End]

Originally Posted by quagmire

but for me when I get rid of my car, it will have so many miles on it the resale will be crap anyway......

same here, unfortunately.

owned the e92 since oct 9th, 2008. i'm cresting 35k miles...fuck.

[G5Ti]

OP: have you ever owned a VW? Depending on how long you plan on keeping the car, a used VW can eat your wallet like a new one never would. That's one reason I went for a new BMW (that, and the 1-er is new to the US).

I agree that used cars are the way to go; in fact, my 128 is the only new car (out of 4) I've purchased. I probably wouldn't do it again, but I do find the peace of mind of warranty coverage rather satisfying. New car warranties are much like insurance - paying for something you may never need. But as my last two used VWs consumed literally $20k between the two over a 9-year ownership period (and they were meticulously maintained and not tracked - just crap cars for reliability), I think my anecdotal experience would be nearly 100% contrary to yours. :-) Perspective can be crucial.

[Seminole]

http://www.cnbc.com/id/29801169

DETROIT - For cash-strapped consumers shopping for a car, used would seem like the place to start. Not necessarily. A new one might actually be cheaper.

Consider this: The average cost of a used 2008 Honda Accord EX sedan, certified by the dealership, was $21,544 earlier this month, according to Edmunds.com, a car-buying Web site. A new 2009 model cost $80 less.

It's simple supply and demand. With new car sales at a 27-year low and desperate dealers piling on rebates and incentives, prices are plummeting. At the same time, demand is up for used cars and their values are rising.

"The intuitive logic has been that a used car buy is a better buy," said Edmunds CEO Jeremy Anwyl. "But consumers need to check reality. It's very contradictory."

Used cars still generally cost less than new ones, but a mix of drastic price cuts, rebates and financing incentives is narrowing the gap.

Automakers are subsidizing zero-percent or low-interest loans on new cars, while the average rate on a three-year used car loan is about 7.5 percent, according to Bankrate.com. Factor in the lower cost of financing and the total cost of the new car can be less.

For example, a $30,000 car with an annual percentage rate of 2.9 percent would cost $662.70 a month over four years. By comparison, a used car with an APR of 7 percent would cost $718.38, a total of $2,673 more over the same period.

Automakers like Ford Motor Co. are banking on the phenomenon to drive consumers back to new car showrooms.

"There is an equilibrium level which we believe we are getting back to between the value of used vehicles and the transactional price of new," said Ken Czubay, Ford's sales and marketing vice president, when the company announced its February sales fell 48 percent from a year earlier. "This also portends, we believe, a favorable future for the new business."

Even with the best of terms, however, the monthly payments for a new car are out of some people's reach. That's why leasing became so popular. But many auto finance companies have stopped offering that option because it became unprofitable, and where it is available it may still be out of reach to many consumers.

That's the case with Tom Kostora and his wife, Melanie. They've leased trucks for more than 10 years, but were shopping for a used car this month after turning in their fifth Ford F-150 pickup.

"I want lower payments with my mortgage and tuition for my son's private preschool," the Ford plant worker said while browsing at Law Auto Sales in Wayne, Mich. "My job could be gone."

Zero-percent financing also can be hard to get without excellent credit, and it's unclear whether the Treasury Department's cash infusions to GMAC and Chrysler Financial have loosened lending. So despite great new car deals, consumer might be relegated to buying used.

"Banks may not finance a $30,000 car, but they may finance something less, say a $10,000 to $15,000 vehicle," said Zach Anderson, used car manager at Bob Maxey Ford in Detroit. "People are looking to buy less. They have the fear they won't get financing for a new car if they don't have perfect credit."

The make and model of the car also makes a big difference. Used cars from model lines that don't retain as much of their value — like big SUVs from U.S. brands — may be more appealing to people seeking cheap wheels than value-gripping choices like late-model fuel-sippers from Asian brands.

[Plan B]

OP - is your price comparison for a new S2000 at $34,950.00 MSRP? Do people even pay MSRP these days?

I'm not sure about the S2000, but most dealers are giving huge incentives for new cars on the lot now. Coupled with the fact that most people do not buy cars with cash, the price and financing incentives on a new car will typically outweight a used one even if the nominal price difference appear to be significant. - if some guy decides to amortize the loan for 48 months +, the difference in monthly payment is inconsequential.

I've always paid for me cars with cash, but the consumer debt market in past years has not been giving me any bargining power...

[imported_mega]

Originally Posted by Seminole

http://www.cnbc.com/id/29801169

god they suck at news reporting

it's very clear on the bailout money that the banks got had an effect, Chrysler immediately lowered the score required to get zero percent financing

those reporters could have called and found that info pretty easy

I bought a new 2008 Wrangler 4 door for my wife last month, cheaper than we could buy one used, and with 0 % interest.