Originally Posted by Ames
If you own a good car and it is in demand used it seems to work. I have a friend that owns a $50,000 Tahoe. He trades every 2 years for $12,000. So basically he gets to drive a brand new $50,000 SUV always under warranty for $6k per year. He
He is actually "paying" more than 6k a year. His payments may not reflect it, but inflation and depreciation are eating away his equity in the vehicle, unless he is fronting the cash at trade in time.
Also, a $50K vehicle a few years back was more vehicle for the money, due to inflation. In other words, he is either buying a vehicle worth more than 50K or he is downgrading.