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Hi All,

First time poster here.

My son is looking to purchase a 2015 CRV EX AWD and a longterm reputable dealer has offered a 2015 CRV EX AWD with free lifetime oil changes for $24750 plus taxes title and tags...taxes, title, and tags add about $2K so the out the door price is $26750

Seems like a fairly good deal...guess the vibration issue is having a toll on sales/prices...

your thoughts?

Thanks
 

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Agree - plus - why would anyone buy new - the minute you drive it off the lot you lose considerable dollars$$$
 

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Agree - plus - why would anyone buy new - the minute you drive it off the lot you lose considerable dollars$$$
You do, yes, but CR-V's in particular are notably good at keeping their value (KBB recently considering the 2015's future resale value being best-in-class despite the vibration issue). Also you get the manufacturer's warranty, better financing rates (sometimes even subsidized by the manufacturer towards the end of a model year; this can be worth four figures over five years depending on what rate you could get elsewhere so don't underestimate it), complete knowledge of the vehicle's service history, generally better fuel economy than older vehicles, generally better features at the same nominal trim level, zero wear, low maintenance costs in the early years, plus of course that new car smell.

On the downside, as you say, there's a big depreciation hit in year 1 (which could mean the need for gap insurance depending on how much you put down); they cost more of course and you have to pay for the cost of the capital you sink into it, and you take the risk that new bugs have been introduced (see: the vibration issue thread).

Which of these sets of factors outweighs the other obviously depends on the individual, but clearly the pros for new win out for plenty of reasonable people.
 

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Disagree with your logic - why would you spend all that money on a new car - a depreciating asset - unless you are looking at a lease which you can potentially write off. I bought a used "V" with all the service records and history for a fraction of the cost. You can also buy an extended warranty on a used car for minimal cost which I did - yes "V's hold their value but bottom line it's a car and it depreciates - I'd rather put my money into assets that appreciate.
 

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Sure a new car depreciates, but so do used cars, and both mostly through adding miles i.e. because you're getting use out of it. At a faster rate in a new car than a used one, sure, but from the Edwards link I gave you can see that the oneoff high depreciation hit in year 1 is made up for by lower maintenance costs in years 1-3. For a car older than 5 years, the rows are going to be pretty much the same except for depreciation which will be a few hundred bucks rather than $1400, so only about 20% cheaper TCO (and that's not mentioning what should be a relatively modest but non-negligible higher spending on fuel and extended warranty).

Regarding the cost of money, when you can get a Honda-typical for not-newly-introduced-vehicles 0.9% manufacturer-subsidized credit line that's sub-inflation (it's lower right now but it's not going to be over the course of 3-5 years) so they're giving you money in real terms.

My principal point though is that reasonable people can consider a (temporary) 25% higher annualized TCO worth the various benefits I listed.
 
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