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Comment by perryh2 | Hacker News Reader

I love browsing cars for sale online that are 2-3 years old with <30K miles. They're the best value and like you said the price is just 2/3 of the cost new at the time. People need to realize that a car (even Ferraris) loses anywhere between 35-50% within 3-4 years. Good used cars dealerships with online presence move a TON of inventory everyday. Carsense.com uses the online checkout system from drivemotors.com (I used to work here) and the prices they display on their websites are wild. You can literally buy a car from them without haggling.

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I've heard this (loss of 35-50% within 3-4 years) and it's not really true. (Or at least, depends on the vehicle.)

A 2017 Honda Accord goes for $20k new. A 2014 of the same model with 45k miles goes for $16k (KBB). A 2011 of the same model with 90k miles goes for $10k (KBB).

Basically, the first 3 years and 45k miles it depreciates $4000. The second 3 years and 45k it loses $6000 more in value.

Arguably it's cheaper to buy new and sell after 3 years than to buy 3 years old and sell after 3 years.

The years 7-9 are when the car stops losing value so quickly. Worth $6700 in year 9 and 135k miles. The last 3 years and 45k miles only depreciate $3300.

It's one thing for new cars that are 20K, but for example, my last car was a Japanese built 2003 Toyota Avalon XLS loaded, 47K new plus taxes, purchased certified in N. Hollywood for 17.5K out-the-door in 2008 with a warranty. Only oil changes and a couple batteries, and I still keep it around after 189K miles! It's not worth much for resale now, but it still drives likes new... go used, take care of it, spend money on more exciting things!

The Honda Accord actually holds value pretty well. It's also pretty cheap as a brand new car, so as you can imagine, it won't depreciate as much as other cars. My figures hold true for most other cars though.

That whole class of cars depreciate like that. Mazda3, Corolla, etc.

Basically, luxury goods depreciate a lot. Luxury cars depreciate a lot.

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