Thanks for comments! First let me say there may sometimes be exceptions to our advice and some are based on personal opinions (and in this case, our contributor Robert).

I’d agree that there could be many times when financing a new car could be the best route. For example when I purchased our last new vehicle which actually happened to be new, they offered a couple thousand discount for financing through them. I made sure there was no prepayment penalty. I then took my savings for financing through Ford credit but then paid off the loan in a matter of a couple months.

In regards to “running into someone else’s trouble.” I’d advise to always get the vehicle first checked out by a qualified mechanic. Were not talking about buying a 15 year old clunker. But looking for a vehicle that is just a couple years old with low miles can possible save you a lot of money.

“and scores of studies have shown that retaining ownership for 5 or 10 years is the best way to wring the most value out of a auto purchase.”

I would agree to that as well.

It is true however that most new cars DO depreciate in value substantially the moment you drive it off the lot. Some vehicles much more than others. “Most” vehicles are not considered investments. I’m not against splurging on a nice expensive vehicle but most people have to make a lot of sound financial decisions in order to get to that point (which may include cutting down on expenses elsewhere and making good investment decisions).

Thanks again for your comments. It brings in some good points to the discussion.

The financing of a new car is a red herring in your argument. I financed my last new car at 1.9%. Moreover, I paid it off in 10 months, not the 48 or 60 months that the suckers go for. My bill for financiing: $122.

Moreover, the whole notion of buying “used” is overworked. So your car is significantly depreciated the moment you buy it? Doesn’t it follow I should buy my clothes at a second-hand store? And my furniture from the Goodwill? And buy food brands I do not prefer merely because I have a coupon?

That’s a lifestyle that’s not for me.