A car is the second-largest purchase most people make and the only one guaranteed to lose value. Timing the purchase right can save thousands.
Some calculations matter for a single decision; this one matters for years. A car is the second-largest purchase most people make and the only one guaranteed to lose value. Timing the purchase right can save thousands.
Sales targets reset. Dealers more willing to cut margin to hit numbers.
Outgoing year on the lot when next year arrives = aggressive discounting.
A 2-year-old car has dropped 30–40% in price but holds 80% of its useful life. The math almost always favours buying used.
Monthly payment over 15% of take-home, total car cost (with insurance, fuel, maintenance) over 25%, or loan term over 60 months.
Is leasing ever smart? If you change cars every 2–3 years and need the latest tech. Otherwise, owning is cheaper long-term.
Should I trade in or sell privately? Private usually nets 10–20% more, but takes time. Trade-in is convenience at a real cost.
Bookmark the calculator linked above — you will need it more often than you think.