EPISODE 27 ~ SAVE MORE: Used Cars: Shop For Used Cars At New Car Price

I want to encourage you to buy only used cars from now on.   Never new!

I know, I know, you don’t want to buy somebody else’s problem.  But cars these days are built to last a long time and I’m not suggesting you buy a car from the 80’s1  Instead, I’m gonna show you how to buy a used car at the exact moment that it’s lost the most value but is still a great vehicle.

I”m sure You know that cars go down in value, but did you know that a car’s steepest depreciation occurs between ages zero and three –an average of 45%?  That means buying used is not a bummer. It’s a benefit. It opens up a whole new range of vehicles to you.

For instance, which would you rather drive, a Lexus or a Taurus? Gosh, I’m going to go out on a limb and guess that the vast majority of you said a Lexus.  A brand new Lexus ES3350 costs about $47-thousand dollars.  Ouch.

But guess what? You can drive a Lexus for the same price as a Taurus. (It’s just that it will be slightly used.)  I did a price comparison between a new Taurus and a used Lexus:

2017 Ford Taurus SEL sedan brand new:



2014 Lexus ES350 sedan with 38,046 miles:


Amazing. You can get a three year old Lexus with low mileage —37-thousand miles— for the same price as a brand new Taurus. That’s the story of vehicle depreciation. Dramatic, isn’t it?  The key is to get a used car that’s 2-4 years old.  That’s the sweet spot for scoring a deal based on the biggest period of depreciation.  Of course, if you REALLY want to save money, you’ll buy a used Taurus!  SO let’s do that math real quick.

Once again, I based this on a low mileage, 3-year old vehicle.  And 9-thousand in savings?  Fantastic!  My work here is done.

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