I took a quick look at buying new vs. used and concluded buying new makes the most sense for the Prius. I was surprised. The Edmunds.com site has a Total Cost of Ownership area that shows depreciation, tax, and other data to help make the decision. .....................Year 1 Year 2 Year 3 Year 4 Year 5 2007 base $3,870 $2,552 $2,245 $1,990 $1,785 2007 Tour $4,036 $2,648 $2,330 $2,066 $1,853 You pay about $1,300/$1,400 more for a new model than one year old. To me, it is worth it for the extra year of warranty and to get exactly the color and options you want. I did the same analysis for a couple of other cars I am thinking about buying. The first year depreciation on them was very costly.
<div class='quotetop'>QUOTE(Busta Griggs @ Aug 11 2007, 09:42 AM) [snapback]493952[/snapback]</div> If you qualify, also factor in the 2007 federal tax credit available through September. Depreciation is a noncash expense. It is important only if you intend to sell the car before it dies. It is also very difficult to estimate and there are many ways to calculate the amount. One generally uses the method that produces the desired results. $25000 is paid for a Prius. It has a useful life of 10 years. Straight line depreciation is $2500 per year which is part of the total cost of ownership. In year 11 the expenses drop $2500 because there isn't any more depreciation and the car has a value of $0. What happens to the total cost of ownership when the value of the used car exceeds the original cost? IMO forget "total cost of ownership". Focus on the actual cash expenses. In the end, we both arrive at the same conclusion for the Prius. Perhaps one could say that other new cars are just overpriced.
<div class='quotetop'>QUOTE(JimN @ Aug 11 2007, 07:01 PM) [snapback]494098[/snapback]</div> It all depends on how much you pay for a used prius and how long you keep it. I bought an '04 and an '05 on ebay for much less than wholesale. The '05 I got for less than half new price when it was only two years old. I plan to put at least 250,000 on each before the wheels fall off. Of course you have to be careful and know what you're doing. It's not for the faint of heart.
When I was shopping I went to various sites and was looking at 2006 and 2007 with low mileage. After doing some lookin' the price difference was only 2 to 4k bucks for cars with under 15,000 miles. With only that much difference I went new. A few days later I saw a 2006 with 14k miles w/ pkg 6 listed for $35000, go figure.
<div class='quotetop'>QUOTE(JimN @ Aug 11 2007, 07:01 PM) [snapback]494098[/snapback]</div> That applies if you drive your car for it's entire useful life. Most people don't.
I came to the same conclusion. I looked at the used market for a while, but the prices were really comparable to new, if not more. I'm sure a used car has more negotiating room, but it's hard to beat a new car. I'm a firm believer in buying used, but for the Prius, it didn't make sense. I'm thrilled with it. For comparison, I got my new 2007 package 6 for $24,500. I was pleased.
