buying a new or used car

[bluffe]

My wife want us to get a newer car (I don’t care much). Financing seems like such a waste, so I tell her we need to pay cash for it. I set the limit to about $15,000, although I would like to pay less (15k is 25% of my bankroll, ouch).

1) How much can you save by getting a used car with low milage, instead of a brand new car? I’ve looked at some used cars, like a 05 Toyota Corolla, and they seem to be almost as much as the new ones. I though even cheap cars lost a high percentage of their value after leaving the dealership for the first time.

2) Can you get a reliable car with reliable A/C (we live in Sothern CA) for under $10k?

3) Do you have any advice for how to get a good deal when buying a newer, used car?

Thanks for your help!

[n.s.]

As for 1, make sure to comparably equip the new car the same as the old one. A 2005 Corolla with a lot of nicer options (sunroof, power windows, power doorlocks, cd player, etc...) might cost the same as a brand new '06 with absolutely nothing...

[Ricky_Bobby]

Japanese cars don't depreciate as fast as domestic cars. If you buy a Ford or GM you could save a bunch, but then you'd have a Ford or GM. I used to work in banking and did auto loans so I had NADA. Amazing what some cars depreciate. 2003 Cadillac 10,000 miles MSRP 47,000 in 2005 booked for around 25,000. You could probably get a 2004 Ford Taurus for 10,000.