[ssharp]

Low interest rates on new cars are a smoke and mirrors game. If you weren't getting low interest rates, you'd be getting a better cash price. I bought a used car earlier this year and financed it at 3%. I'll pay around $1500 in interest. I save several times that in depreciation, and even new with 0% interest, the price still would have been close to that $1500 more.

Also, the decision isn't necessarily between brand new car and a 10k used car. If you're buying a two or three year-old car, it's probably over 10k.

[smackfu]

> If you weren't getting low interest rates, you'd be getting a better cash price.

Not necessarily. If dealers get a kickback on the financing, they can actually charge less for a financed car then a cash one.

[ssharp]

That can be true, but if you're not getting a subsidized interest rate, the difference in interest you'll pay on a new car vs. a used car isn't big at all. Not enough to make up for depreciation.

This is also a good tip -- if you go into buying a new or used car with financing lined up, you can tell the dealer that, but tell them you'll go with them if they can give you a similar rate because you might get a better price.

[sukilot]

Not if the interest rate is low.