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I appreciate it, I don’t feel bad at all, my interest rate is no where near that rate. Very happy with my RL and my deal. Had no intention in buying a new one. Thanks again...
Welcome to the forums! Some people just can't wrap their minds around compounding interest, year 1 depreciation, and total paid on a loan vs final vehicle value w/ new vs used. It is almost never true that buying a new vehicle "saves" you money. That new car is "used" the moment you start sign for it. It's like throwing several thousand dollars out the window right when you drive off the lot, but different people value different things I guess. It is a wonder why the majority of self-made millionaires didn't buy new cars...it's one of the worst financial "investments" anyone can ever make on a depreciating asset. Luckily the Ridgeline is one of the better models out there w/ depreciation rate, but year 1 is still rather steep. Again, welcome!
 

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Don't feel too bad, running the numbers your interest rate would have to be up close to 6% on yours for you to pay the same amount over a 5 year loan (assumed 36.5k on the 2019 vs. 33k on your 2018, 5k down on each) to "break even" w/ a new 2019 right now at 0.9% anyways... So you assuming you have solid credit you are still saving several thousand dollars for pretty much a brand new truck that will be worth nearly the same amount as a 2019 in 5 years.
This analysis is incorrect. You are only comparing the upfront purchase price and interest rate. You are not factoring in the miles that have already been used up by the previous owner on the 2018 model. This is the critical factor that the 'buy used' proponents rarely account for.

The new 2019 truck would have 0 miles (or close to it), and 100% of its usable life left.
The 2018 truck already has 11,000 miles, so just 93% life left (assuming you get rid of the truck at 150K miles).

You have to account for this mileage difference to get a true apples-to-apples comparison.
Once you factor in the mileage, the difference between the 2018 and 2019 is only $823.

Your real saving by purchasing the used model is only $823, so if your interest rate is anything over 2% (using Nightshade's terms), then the 2018 used model is a WORSE value.

This is a great example illustrating what I said previously.
In this case, the new 2019 model would have been a better value overall. Plus, you would have enjoyed all of the perks that come along with having a brand new vehicle.
 

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This analysis is incorrect. You are only comparing the upfront purchase price and interest rate. You are not factoring in the miles that have already been used up by the previous owner on the 2018 model. This is the critical factor that the 'buy used' proponents rarely account for.

The new 2019 truck would have 0 miles (or close to it), and 100% of its usable life left.
The 2018 truck already has 11,000 miles, so just 93% life left (assuming you get rid of the truck at 150K miles).

You have to account for this mileage difference to get a true apples-to-apples comparison.
Once you factor in the mileage, the difference between the 2018 and 2019 is only $823.

Your real saving by purchasing the used model is only $823, so if your interest rate is anything over 2% (using Nightshade's terms), then the 2018 used model is a WORSE value.

This is a great example illustrating what I said previously.
In this case, the new 2019 model would have been a better value overall. Plus, you would have enjoyed all of the perks that come along with having a brand new vehicle.
Agree to disagree on how math and vehicle valuation works. 5 years from now a 2018 is not going to be worth 3-4k dollars less than a 2019 w/ 11k fewer miles on. He got a solid deal. The % vehicle life thing you do makes no sense at all. It's $ cost per mile driven that matters. Year 1 w/ depreciation costs 3-5x more per mile driven than on all subsequent years of ownership. So by buying a car at year 1-2, your cost paid per mile you drive saves you money b/c the depreciation rate levels off a lot. Not to mention interest compounds on a much lower cost of vehicle. I don't care about made up % life left in the car. I care about how far my hard earned dollars take me b/c it is my money and a depreciating asset like a new vehicle is not something I want to throw money at. Now if everyone that buys a car actually kept it for 15 years until the tires fell off, then yeah, buying new would be minimal, but that is nowhere near how people buy and keep cars in the USA. Most people trade cars rather often...and get hosed by buying new repeatedly.

You aren't "wrong" for buying new, each can do what they want w/ their own money. Just don't try to explain to me that buying new saves money.

Agree to disagree...
 

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It's $ cost per mile driven that matters.
I use the % life to make it easier for people to understand that they need to factor in the miles on used vehicles.
But you can use the same numbers to calculate the cost per mile...
NEW - $36,500 / 150,000 miles = $0.24 / mile
USED - $33,000 / 139,000 miles = $0.24 / mile (remember the used already has 11K miles on it).

As you can see, the cost is the same, but when you factor in financing, the NEW model ends up being CHEAPER, just as I said earlier.

Now if you are the kind of person who changes vehicles every few years, then you should not be purchasing a new vehicle OR a 1 year old vehicle. You should be leasing.
 

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It's $ cost per mile driven that matters.
I thought you might take issue with my numbers, since they assume you keep the car for 150K miles.

So here is the cost per mile if you only keep the vehicle until 75K miles...
NEW - $36,500 / 75,000 miles = $0.49 / mile
USED - $33,000 / 64,000 miles = $0.52 / mile

So the new vehicle is CHEAPER per mile than the used, and this doesn't even account for the lower financing rates when buying new.
 

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Ugh, whatever man. Enjoy your truck. Literally says in my post it's negligible if you plan to run the wheels off your vehicle. You would also do the math for both w/ 75k miles since you'd drive them each that far. I'm sure the stealership loves your logic. If you want a new vehicle, then buy new. But don't go around trying to tell people it costs more to buy a solid 1-3 year old vehicle w/ low mileage on it.

Table is based on the 33k 2018 w/ 11k miles on it. Took my credit union best used rate vs honda best 0.9 on a new 2019. Used RTL-E in very good condition gray color for all kbb stuff. Also made a table for a 2019 last summer w/ normal financing and pricing. Tried to keep #'s fair/ good deal pricing. Can't argue w/ the hard #'s.

A 1 year older Ridgeline RTL-E w/ 11k more miles on it would need to be worth $2122 less vs the 1 year new vehicle purchased new at 0.9% in order for the deal to be equal in terms of dollars paid and trade value at 60 months. It is even higher when comparing to the new vehicle purchased w/ normal financing rates $4918. It is near impossible the Ridgeline will drop more than these #'s going from year 5-6 of ownership on a used 2018. He got a good deal. Maintenance differences in that time period is also a wash. Both vehicles are well made and not that old 60 months from now. Beyond routine maintenance, likely no issues for either one. Again, if one does run their vehicle until their wheels fall off, the difference is negligible.

401472
Used vs New.PNG
 

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Cars are not investments to me. I bought a new 2020 RTL-E. I could have bought a new 2019 RTL for $7000 less. Was that a wise financial decision? Hell no.

You can run the numbers all you want. It is all about perceived value and how you want to spend your money. If a used one equipped like mine fell into my lap and could save me several thousands of dollars I probably would have bought it. The deal Nightshade got sounds like one I'd have been tempted by if I'd seen it. Such a thing didn't exist when I was ready to buy a vehicle, and I didn't want to spend my life waiting for the perfect, best deal. If I thought that way I would be fretting about the ridiculously low prices some people on here are claiming to be paying. If they're getting a new truck for $3000 below dealer cost, good for them. The ink is dry on my paperwork and I am an owner now. No sense fretting about it.

The last few cars I bought, I paid more to get a new one. My wife's Outback, for example, was only a few thousand more than used ones were going for. It was worth it to me to get the new one. When I was looking at 1/2 ton pickups five years ago, any late model with low miles was not discounted nearly enough to be a good value to ME. For some reason, I seem to buy vehicles that have very good resale value, which is a bummer, because then I can't find deals on used ones.? If I were in the market for a Korean luxury sedan, I'd feel pretty foolish buying a new one considering what late model used are going for. Honda's hold their value fairly well, so if you see a used one that seems like a good value to you, then jump on it. If I were on a tighter budget, I'd buy a new '19 Sport for south of $30K and feel pretty good about it.
 

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Cars are not investments to me. I bought a new 2020 RTL-E. I could have bought a new 2019 RTL for $7000 less. Was that a wise financial decision? Hell no.

You can run the numbers all you want. It is all about perceived value and how you want to spend your money. If a used one equipped like mine fell into my lap and could save me several thousands of dollars I probably would have bought it. The deal Nightshade got sounds like one I'd have been tempted by if I'd seen it. Such a thing didn't exist when I was ready to buy a vehicle, and I didn't want to spend my life waiting for the perfect, best deal. If I thought that way I would be fretting about the ridiculously low prices some people on here are claiming to be paying. If they're getting a new truck for $3000 below dealer cost, good for them. The ink is dry on my paperwork and I am an owner now. No sense fretting about it.

The last few cars I bought, I paid more to get a new one. My wife's Outback, for example, was only a few thousand more than used ones were going for. It was worth it to me to get the new one. When I was looking at 1/2 ton pickups five years ago, any late model with low miles was not discounted nearly enough to be a good value to ME. For some reason, I seem to buy vehicles that have very good resale value, which is a bummer, because then I can't find deals on used ones.? If I were in the market for a Korean luxury sedan, I'd feel pretty foolish buying a new one considering what late model used are going for. Honda's hold their value fairly well, so if you see a used one that seems like a good value to you, then jump on it. If I were on a tighter budget, I'd buy a new '19 Sport for south of $30K and feel pretty good about it.
Thank you, exactly. I am not saying you can't buy new, to each their own. I am just blown away that someone actually thinks it doesn't cost more to do so. Hope you love your truck, the Ridgeline is a super cool vehicle :).
 

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You would also do the math for both w/ 75k miles since you'd drive them each that far. But don't go around trying to tell people it costs more to buy a solid 1-3 year old vehicle w/ low mileage on it.
Earlier you said that "It's $ cost per mile driven that matters."
But nowhere in that enormous spreadsheet, with tons of assumptions and made up numbers, is the cost/mile.

And you keep making the same key mistake...claiming people will keep a used vehicle for the same number of years, and drive it for the same number of miles, as a new vehicle....
  • In your case, you bought a 2 year old vehicle with 24K miles. Let's say you drive it for 6 years and 100K miles.
  • That means your truck will be 8 years old and have 124K miles when you get rid of it.
  • But under your logic, had you bought NEW, you would sell it after only 6 years old and 100K miles
Do you see how that doesn't really make sense?
Why would you ditch the new truck that early, if you were OK keeping a used model that is 2 years older and 24K more miles?

I'm sure the stealership loves your logic.
Actually, you have this backwards.
Dealerships love used car buyers, because there is MORE profit margin in an average used vehicle sale than there is for new vehicles. My buddy has been in car sales for decades, and actively avoids the new car lot. He typically only makes $200 on most new car sales (because profit margins are so small and consumers have the info needed to buy at/near cost). But can make thousands on a single used car sale.

And dealerships actually hate my logic...
I only visit a car dealership once every 10-14 years. I know the invoice/holdback/incentives of the new car, and what other people are paying. I buy at a significant discount from MSRP. I pay cash. I don't take any of the expensive add-ons (warranty, maintenance packages, financing, GAP, ect). I never go back for service.
 

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Earlier you said that "It's $ cost per mile driven that matters."
But nowhere in that enormous spreadsheet, with tons of assumptions and made up numbers, is the cost/mile.

And you keep making the same key mistake...claiming people will keep a used vehicle for the same number of years, and drive it for the same number of miles, as a new vehicle....
  • In your case, you bought a 2 year old vehicle with 24K miles. Let's say you drive it for 6 years and 100K miles.
  • That means your truck will be 8 years old and have 124K miles when you get rid of it.
  • But under your logic, had you bought NEW, you would sell it after only 6 years old and 100K miles
Do you see how that doesn't really make sense?
Why would you ditch the new truck that early, if you were OK keeping a used model that is 2 years older and 24K more miles?


Actually, you have this backwards.
Dealerships love used car buyers, because there is MORE profit margin in an average used vehicle sale than there is for new vehicles. My buddy has been in car sales for decades, and actively avoids the new car lot. He typically only makes $200 on most new car sales (because profit margins are so small and consumers have the info needed to buy at/near cost). But can make thousands on a single used car sale.

And dealerships actually hate my logic...
I only visit a car dealership once every 10-14 years. I know the invoice/holdback/incentives of the new car, and what other people are paying. I buy at a significant discount from MSRP. I pay cash. I don't take any of the expensive add-ons (warranty, maintenance packages, financing, GAP, ect). I never go back for service.
I just can't with you anymore man, not a single number was made up and it is all very fair and accurate. I am not making any faulty assumptions (unlike you who repeatedly keeps assuming everything about how other people purchase their vehicle when you literally know nothing about their vehicle purchase and driving habits). You can do the math yourself on cost per mile from the info I provided. It isn't that complicated and that is petty. If you keep a vehicle for a very long time, then the benefit of buying used vs new is marginal, I don't disagree with you there. If you plan to keep your vehicle for years and years then buying new makes sense. That is literally in like 3 of my prior posts. Dear lord learn to read. However, blindly telling people it is cheaper to buy new vs used when the avg person keeps a new car only 6 years anyways is asinine and borderline unethical.

My post stands on its own merit. And yes, if I keep my truck only 6 years and it has 124k miles on it when I sell it, I will still save thousands vs buying new and selling that new truck at 6 years w/ 100k on it. Vehicles today are made very well. A 1 year old Ridgeline w/ 11k extra miles on it will last just as long as 98% of people's new purchases on this forum b/c most people sell their vehicles way, way before the life of a vehicle is ever used up. People trade up based on the age of a vehicle and its dated technology for the next shiny thing. A 2018 or 2017 vs a 2019 6-8 years from now are just as old in terms of tech and engine compared to new vehicles, b/c they are same model years. You might be the exception to the average behavior of most car buyers, but that doesn't make your advice of "new saves money" any less inaccurate when applying it to others. And yes, dealerships love it when people constantly trade up every 5-8 years (not you, but the average American buyer) b/c they buy a new vehicle that immediately depreciates while also unerpaying on a used vehicle they can then resell at a big profit. The profit on the used car though comes from the previous owner not selling the car on their own, it doesn't come from the buying party (assuming they know the fair value and negotiate the price). Have a great life, maybe read some financial books.
 

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But don't go around trying to tell people it costs more to buy a solid 1-3 year old vehicle w/ low mileage on it. I am just blown away that someone actually thinks it doesn't cost more to do so.
It is an absolute fact that a 1-3 year old vehicle can cost you MORE over the long term than new!
It is simple math. You just need to run the numbers based on how long you keep your vehicles.

Across all the cars I've owned (new and used), I keep them until they reach 150K-175K miles.
I get rid of them at that point, due to the higher maintenance and unexpected repairs.
  • So I could have bought a 2019 NEW for $37K and drive it for 175K miles
  • Or buy your 2017 USED truck for $33K and drive it for 151K miles (since yours already had 24K miles)
Do the math, and you will see that used costs MORE than new, based on MY ownership style.

How many miles do you intend to drive your current Ridgeline?
Let us know and we can do the math for YOUR ownership style and see what the numbers look like.
 

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I just can't with you anymore man, not a single number was made up and it is all very fair and accurate.
You didn't make up the 5 year depreciation curves for the vehicles?
You even admit that the number were not "totally" accurate.
Then it looks like you added an arbitrary $1000 to the trade-in value of the used model.

However, blindly telling people it is cheaper to buy new vs used when the avg person keeps a new car only 6 years anyways is asinine and borderline unethical.
When did I ever blindly suggest that buying new was always cheaper?
I suggest you run the numbers based on how many miles you drive, and calculate it for yourself.

Also, you cite the fact that the average person keeps a NEW CAR for only 6 years.
But you fail to acknowledge that the average ownership period for a USED CAR would be less than that.

And yes, if I keep my truck only 6 years and it has 124k miles on it when I sell it, I will still save thousands vs buying new and selling that new truck at 6 years w/ 100k on it.
Answer me this one question...
If you are content keeping your current USED vehicle until it hits 8 years and 124K miles, then why wouldn't you be content doing the same for the NEW vehicle? Why would you get rid of the new vehicle 2 years earlier and 24K fewer miles?
This is the critical point that you keep skipping over.
 

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Post tries to answer your q's:

Because my used car is NEW to me and is sparkling clean. It also was not 33k lol, go back and read, I'm not going to do it for you. If after 6 years I wanted a new one I would do it regardless b/c both vehicles are exactly the same and would have been new to me from day 1. My 2017 drives exactly the same and offers the same tech as a 2019. Both would lose their appeal just as quickly. That situation is true of the vast majority of buyers. People keep their vehicles for 6 years on average in general, not only based on used or new at time of purchase. So you need to account for years and miles driven being equal between the vehicles when you compare...because it's rare someone drives to 150+k miles on their car until it breaks down. You also are not addressing total loan cost at all in your posts, it's a joke that you think base cost prior to tax, down payment, interest rate, and loan duration don't matter.

Depreciation rate is based on an article literally quoted earlier in this thread...holy crap are you serious? Also, Google it and get your learning on, it's just as easy for you to search it as me. Multiple articles state it is in the top 10 slowest depreciating vehicles and it lands at 38.1-40% predicted at 5 years. Do your own research instead of pointing fingers.

You repeatedly keep telling me and another forum member we are spending more money buying used and that used costs more. That's you repeatedly saying new is always cheaper when you know literally nothing about our driving habits and vehicle needs. If I misunderstood you, I apologize, but that is how I interpret your posts b/c you have said nothing to the contrary thus far. I have mentioned exceptions to the used saves money rule, but you ignore all of them, even when they agree with you. I mean, come on...you actually think everyone keeps their vehicles for 15+ years? Have you looked at the used car lots, like seriously man, come on. 7 years from now I will probably have a minivan for my family and I am 100% certain my vehicle saved me north of 8k b/c I don't plan on keeping it for 15 years and I only drive about 8-9k per year. So by the time I go to sell, my 2017 will be low miles for how old it is. So I paid way less for it and it will have a great resale value. That ok w/ you or do I need to justify that also? I am a very intelligent person and it is incredibly insulting that you think you know my situation, the economy in my area of the US, my vehicle needs, my driving habits, etc. It is also extremely condesending that you assume you know more about my vehicle purchase and how I drive it than I do. Each person can spend their money how they want to and each values things differently. I know for my situation (which matches most buyers), buying a used vehicle that is brand NEW to me, saved me thousands of dollars. Not to mention the 100-150 per month I'm paying less on my truck loan vs new if I'd purchased in July of last year is all going into my 401k, which over the next 35 years will grow into tens of thousands based on historical trends, even with this recession. Heck even letting it sit in a high yield account for the 15yrs you'd keep your vehicle nets up to 1-2k in interest. So yeah, there is an opportunity cost in buying the more expensive vehicles in this regard too.

The 1000 year 5 to year 6 on the other member's 2018 isn't arbitrary. It seemed reasonable to me given 2 to 3 and 3 to 4 were around 1500 based on kbb and edmunds. You can throw in 2000 if you like and that buy still saves money if someone trades at 6, 8, or even 10 years. Again, like I have already said, the longer you keep your vehicle, the cost savings are more marginal.

I am glad you keep your vehicles for so long, you get the most bang for your buck on your vehicle, which is a depreciating asset and a tool people use. But, one tool doesn't work for most people for 15+ years b/c people's lives and situations change. Buying used will save the majority of car buyers money based on the typical buyer's behavior. That is fact.

I am done responding to someone that ignores 50% of what people write and responds w/ blinders on. Bye and enjoy your truck.

P.S. I have done the math on my loan details vs if I bought new last July (there is no universe I need your help with math, good grief) and it comes out as a wash at exactly the same amount per mile w/ a 2019 to 175k and my 2017 w/ me driving 175k minus 23,411 (odo when I bought it). And if I add even $1000 for all of the add-ons to a base 2019 RTL-E mine came w/ when I got it, at 175k, mine is then cheaper by $1400 dollars. So yeah, since I am not keeping it that long, and will sell it well b/f then (likely closer to 85-100k), accounting for depreciation and the difference b/n a 2019 w/ 60-84k on it vs my 2017 w/ 85-100k on it not at all being close to the difference in total loan value paid...I win, every day of the week. So regardless of if I drive it to 175k or sell it early, I save money. What's the best about it, I save money whether you believe me or not, which is just fine by me. Peace out and go listen to some money podcasts.

 

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This is definitely not true as a rule of thumb, and certainly not for the Ridgeline the OP is asking about.
I see many people making this same mistake...calculating depreciation based on the new vehicle MSRP.
This is completely meaningless, because no one should ever pay MSRP on a mainstream vehicle.

The OP is deciding between a new or 1 year old Ridgeline.
You can buy a brand new 2019 Ridgeline for a discount of ~$8,000 off MSRP, plus 0.9% financing.
Edmunds shows first-year depreciation to be...$8,000 from MSRP.

New cars can absolutely be a better value over the long-term than used cars.
This is especially true we're talking about popular Japanese brands.
So what you are telling me is I could have bought a new 2019 rtl-e msrp around 42k +/- for 34k +/-. Hell I’m all in. Where can I find this unicorn truck?
 

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So what you are telling me is I could have bought a new 2019 rtl-e msrp around 42k +/- for 34k +/-. Hell I’m all in. Where can I find this unicorn truck?
I would just give up at this point on him. Price paid on a loan minutes a vehicle value come time to sell isn't hard for most to understand. We can be happy with our savings going towards other things ?.
 

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Bummer about the truck, funny but you get attached. Anyway for my 2 cents, go with a used truck under 20,000 miles. I have owned Audi's to Corolla's and almost all have needed dealer work. Now I look at used trucks and have it checked by a trusted mechanic before I buy. Worth the extra $175.00. Best of luck with whatever you get.
 

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So what you are telling me is I could have bought a new 2019 rtl-e msrp around 42k +/- for 34k +/-. Hell I’m all in. Where can I find this unicorn truck?
The RTL-E and BE had somewhat lower discounts.

But yes, you could have purchased a 2019 RTL for an $8,000 discount.
I bought one for a $7500 discount, and saw others get even more.
 

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P.S. I have done the math on my loan details vs if I bought new last July and it comes out as a wash at exactly the same amount per mile w/ a 2019 to 175k and my 2017 w/ me driving 175k minus 23,411 (odo when I bought it).
So based on your calculations, the price per mile is the SAME for the new and used model.
In that case, you should clearly pick the brand new vehicle with no miles.
Why drive a second hand 2-year-old vehicle with 24K miles if you could have a new one the same cost, right?

And if I add even $1000 for all of the add-ons to a base 2019 RTL-E mine came w/ when I got it, at 175k, mine is then cheaper by $1400 dollars.

Why are you even factoring in these goofy add-ons?
Had you purchased a different used vehicle without these things, would you have added them yourself?
Running boards for a truck with 7" of ground clearance? Hood visor from the 90's? Aftermarket Viper car alarm from the 90's?
 

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Bummer about the truck, funny but you get attached. Anyway for my 2 cents, go with a used truck under 20,000 miles. I have owned Audi's to Corolla's and almost all have needed dealer work. Now I look at used trucks and have it checked by a trusted mechanic before I buy. Worth the extra $175.00. Best of luck with whatever you get.
Agreed, let us know what you get OP, and regardless we hope to welcome you to the Ridgeline family. It's a super cool vehicle!
 
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