If one MUST buy a new car for whatever reason, they are better off in the long term to get the thing, maintain/take good care of it, pay it off as quickly as possible, and drive it until the wheels literally fall off.
The people that buy new and trade in for another every 2 or 3 years are total idiots, IMO. They are just paying interest during the time of highest depreciation, and chances are it will be ‘under water’ when they go back for the trade in. No worries though. They are totally HAPPY to just tack that negative equity onto the new loan, making someone REALLY upside down before the ink even dries on the contract and the are keys handed over.
The whole business of buying cars is just INSANE!
Heh. When I was a young-skull-full-of-mush just out of college with my first decent-paying job, I had to have a new car every two years or so.
Then, in '84, I was front-ended in my brandy-new Bronco [oh, how I loved that truck]. It was totaled -- I survived and a switch clicked in my brain that made me realize they're all just a hunk of metal.
I still love vehicles, but haven't bought a new one since. Have had great cars and trucks -- can't complain about a one of them. And, boy, have I saved a ton of money.