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2017 2.5i Premium Lapis Blue
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Depreciation doesn't really become a factor until you get rid of a car. And in general the longer you keep a car, new or used, the less of a factor it becomes. Buying a new car and keep it for 10 years and depreciation gets spread out so far that it is insignificant compared to the years of use of the car. Someone buying a new car and then trading it in after a couple of years most often will take the biggest hit because there is the big depreciation loss plus getting basically wholesale value for the trade in. A case like that is where leasing can actually make some sense. Doing a private sale instead of trading can help a little because you will do better than trade in price most of the time. Personally I hate selling things and I don't like the hassle of trying to sell a car so I'm usually okay with the trade in hit.
 

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'10 3.6R Outback Limited, 2zr swapped Toyota Yaris track toy, '05 AWD Pontiac Vibe
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397 Posts
That depends on what you paid for it! If the dealer bent you over and had their way with you, it depreciated a lot once you drove off the lot! :D
It also depends on who you are selling it to. If you try and sell it back to the dealer you just bought it from a month later then you will lose your shirt.

If you try and sell it privately then you might get a bit more then you paid for it. But understand that no one in their right mind would pay a private seller more for an almost new "used car" instead of just buying from a dealer for less with more piece of mind.

The reality vs theoretical online values are a totally different thing. This also holds all too true when you compare selling amount vs actual sold amount, often they are very different.
 

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'10 3.6R Outback Limited, 2zr swapped Toyota Yaris track toy, '05 AWD Pontiac Vibe
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397 Posts
Depreciation doesn't really become a factor until you get rid of a car. And in general the longer you keep a car, new or used, the less of a factor it becomes. Buying a new car and keep it for 10 years and depreciation gets spread out so far that it is insignificant compared to the years of use of the car. Someone buying a new car and then trading it in after a couple of years most often will take the biggest hit because there is the big depreciation loss plus getting basically wholesale value for the trade in. A case like that is where leasing can actually make some sense. Doing a private sale instead of trading can help a little because you will do better than trade in price most of the time. Personally I hate selling things and I don't like the hassle of trying to sell a car so I'm usually okay with the trade in hit.
I do agree and is true that depreciation loss only really matters to those who sell their car often or when they are less than 10 years old.

But the catch is this - you could have bought the car when it was two years old (give or take) for much less than you would have paid new. Then still kept it for 10+ years and you end up paying much less overall then if you bought new.

Some people are adamant on buying new and I can respect that and in some cases it may make some sense. However, for 99% of the cars on the road buying new is never a better financial decision (unless you are running it through a business). This is even more so the case with modern cars as their 10 year repair rate is lower than it has ever been. This being a Subaru forum, the 10 year outlook isn't bearly as good as manufacturers like Toyota, butbthat is besides the point.

Like I said, there is nothing wrong with buying new but many people also have buyers remorse and are trying to convince themselves that it was a good decision after they got bent over by the salesperson. If you like buying new then enjoy it, but just be fine with that fact that there is a premium to it
 

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However, for 99% of the cars on the road buying new is never a better financial decision (unless you are running it through a business).
As with most of my choices these days it would be rare for me to make a choice of anything just based on whether or not it is the best financial option. Choosing to lease my Outback three years ago surely wasn't the best financial option based on the bottom line but it was a fantastic choice for me, and today I own that car with no loan payment. That was a one-time situation and likely I won't lease again, but doing so allowed me to do an extended "test drive" of a car I wasn't sure I would like while at the same time saving up enough money to pay cash for it and the end of the lease. Even though I second-guessed that choice along the way at times it turned out to be a great decision. And had it turned out that I didn't like the car I would have probably taken less of a beating turning it back in at lease end than trading it in on something else had I purchased it.
 

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2014 2.5i Limited - waiting on 2020 Onyx XT
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Recently ordered from factory at 15.2% below MSRP, after coupons and such, with 0.9% financing.

They could still try to bend me over on the trade, but I'm getting alternative offers as we speak, before the dealer makes its offer.
 

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2019 Subaru Outback
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311 Posts
If you try and sell it privately then you might get a bit more then you paid for it. But understand that no one in their right mind would pay a private seller more for an almost new "used car" instead of just buying from a dealer for less with more piece of mind.
I don't know about that. Between rebates and dealer discounts I got about 22% off MSRP on my truck. Someone who didn't know what trucks were actually offered at (or who just went to the dealer I didn't buy from) might have paid me more than what I paid. Sort of an academic exercise though because tax and license was about 12%.
 

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2007 Outback
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Anyone know which credit bureau Subaru finance uses in the USA? Looking to replace our original owner 2007 Outback with a 2020 Outback and since we froze our credit (had some identity theft concerns around 2012) I'd like to know what needs to thaw out in order to explore the 0.9% offers rather than drawing cash out of high yield savings making 1.70%
 
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