Does new Camry make financial sense?

Amazon catowayne
May 27 32 Comments

2019 Camry is 2 years into new gen so the reliability should be solid and low maintenance.

MSRP is 24k so should be able to swing 22k?
0% interest finance for 60 months means about $400/mth.

Need a car only sometimes.

Would I be throwing away money for slight safety/reliability improvements compared to other used cars?

Model 3 is 40k now with 4.25% finance so that option doesn’t seem economical.

I believe financing is better than cash as I’m ok with market volatility and 7% expected returns over loan interest rate. So 22k 0% financed equal to 16k cash.

TC 180k

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TOP 32 Comments
  • Buy one used, 30-40k miles and 2-4 years old.
    May 27 3
    • Amazon catowayne
      OP
      Problems I see are the cash amount equal or worse than 22k at 0% 60 months and a tad more maintenance and gas fillup time.
      May 27
    • It’s a Toyota. The differences in maintenance are negligible.

      You want to avoid paying off the depreciation of the liability as much as possible. And if you’re looking at keeping it for 7+ years for a $10-15k car, the interest is also going to be somewhat negligible.
      May 27
    • New / Mgmt
      amznDuke

      New Mgmt

      PRE
      Cisco
      amznDukemore
      Get a loan for ^^ this cAr
      May 27
  • New
    $TSLA

    New

    PRE
    Tesla Motors
    $TSLAmore
    If you need only sometimes, consider doing Uber. Stack that cash to index funds and thank me later.
    Don't buy unless it's required.
    May 27 5
    • Amazon catowayne
      OP
      Yea I definitely won’t use $200 / mth on Uber (expected difference in resale value). I feel like it’s less convenient and wastes time waiting for pickup/drop off inconsistencies
      May 27
    • New
      $TSLA

      New

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      Tesla Motors
      $TSLAmore
      You're not looking at insurance and depreciation and so the maintenance. Also having a flexibility might put you in ways that can call for more spending.
      May 27
    • Palo Alto Networks !💥
      A Camry is cheap to maintain and insure. Maybe $30/mo on pay per mile insurance doing 10k/yr. It should retain half of it's value after ten years.
      May 27
    • New
      $TSLA

      New

      PRE
      Tesla Motors
      $TSLAmore
      I don't want to bring out my quant skills but do yourself the math and if it works in your favor it's good. I'm not going to complain. No a Camry won't retain 50% value. I'm sure EV would have killed all gasoline by then.
      Ten years from now US would possibly be on different kind of vehicle ownership model. You can't extrapolate based on past performance.
      May 27
    • Oracle lHEA77
      An often overlooked benefit of using Uber instead of owning a car is that you never have to look for parking. Depending on where you go, that can be a huge time saver.
      May 27
  • Goldman Sachs fake engineer
    I really don't understand why so many people buy brand new economy cars. The only benefit of brand new is warranty (CPO offers the same benefit), customizability (what exciting options or colors are there for a Camry?), and new car smell/knowing everything is perfectly clean and not abused. Oh and I guess convenience, since you just order the new car at the dealership instead of having to look for used ones all over the place. Is that really worth several k when there's used Camry/Accord/Civic/Corollas everywhere and they're practically all the same?

    Those first few years of ownership are insane in terms of depreciation. Get something a year old if you really want the newer generation Cmary's superior power/efficiency.
    May 27 9
    • Facebook tTFN31
      No, everyone knows this and so these cars don’t depreciate the any more in the first year than in the 5th year. You’re not looking at much savings until 100k miles. Might as well get the customizations you want
      May 27
    • Goldman Sachs fake engineer
      It's still money... I see a 2018 Camry for 18k w 17k miles on it right now, why is having a brand new cookie cutter cheap car worth 4k over that car? I guarantee you that car is not going to be under 13k the next year, or 9k in 2 years. Depreciation does slow down.

      What is there to even customize with a Camry?
      May 27
    • Amazon catowayne
      OP
      Can you get decent apr financing on the 2018? Under 3%? If not, aren’t you paying more because of the opportunity cost and no benefits.
      May 27
    • Goldman Sachs fake engineer
      That's possible, 3% APR is not low enough compared to Treasuries IMO but sometimes manufacturers subsidize it down more. In those cases you calculate the equivalent sticker price discount and compare.
      May 27
    • JOANY / Mgmt e^(iπ)+1=0
      The difference in year 1 depreciation vs year N depreciation on Toyotas is almost entirely the difference in the list price and the average price paid (minus the average year of depreciation).

      That is to say, Toyotas don't depreciate significantly more the first year than they do any other year. The reason you see a big depreciation after year 1 is the way it's calculated -- which is to use the average list price at dealers -- which is difference from the average price people pay.
      May 27
    • Goldman Sachs fake engineer
      I used 22k invoice for a new Camry vs about 18k for a 17k mile car. OP said they don't drive that much so pretty soon under their ownership the car will be back down to a more typical mileage for its age.

      The fact is that depreciation decreases as the car gets older, so does the buying price (lower capital outlay). A slightly used car is always cheaper.
      May 27
    • Depends on the brand, but after around 3-4 years you’re looking at about 40-50% paid off in depreciation.

      Then if you get one still with factory warranty and extended warranty (factory or 3rd party), I see no financial sense in ever buying new either...

      We buy used homes all the time, sometime as CPO (refurbishments). Why not our cars too?

      It’s only when you get to the point where your time and money are at the place where the differences are negligible or worse should you consider buying new.

      We haven’t talked about leasing either, but this is just the discussion between new and used.
      May 27
    • And there are some major corner cases, like buying a used German Italian car. That’s another ballgame altogether.
      May 27
    • Goldman Sachs fake engineer
      German or Italian cars are still cheaper when used, because they depreciate faster to account for higher maintenance cost.

      New car is always worth more, costs more...Pretty obvious. Unless your time is so valuable the small chance of an older car needing an extra repair is too much hassle.
      May 27
  • Google Trump2024
    Definitely do M3. Best decision I ever made.
    May 27 2
    • New
      $TSLA

      New

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      Tesla Motors
      $TSLAmore
      What do you like about it apart from the software part?
      May 27
    • New
      $TSLA

      New

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      Tesla Motors
      $TSLAmore
      Great. All I need is your last line. We're doing our job.
      May 27
  • SWC / Data
    spiked

    SWC Data

    PRE
    Virtusa
    BIO
    Looking for new opportunities in data. Maybe move to North Carolina.
    spikedmore
    Buy used
    May 27 0
  • Palo Alto Networks !💥
    Sounds fine if you just want a vehicle to go from a to b and don't want to worry about anything going wrong. Model 3 likely won't be as reliable.
    May 27 0
  • New eNBa60
    If you’re cross shopping a Tesla or any other car make sure you look at TCO. For example, a Mazda 6 is expected to cost $12,700 to maintain over 10 years while a Camry costs $5200. The Honda Accord will be $6600. Source: Yourmechanic.com
    May 27 2
    • Amazon catowayne
      OP
      Super helpful! Thanks for sourcing.
      May 27
    • Facebook aPrQ76
      What’s model 3’s TCO?
      Jun 2
  • New luvr
    Try looking for phev , like clarity. You will get battery part of Tesla plus gas. Seems like you don't care much about asthetics and brand value. You used model3 and Camry together.
    May 27 1
    • Amazon catowayne
      OP
      Thanks for the suggestion. Clarity is an extra 9k with 3.5% apr. About 350->570 a month. Fuel savings won’t be worth that much increase. I used model 3 together as I expect EV to need even less maintenance cost, 120 eMPG fuel savings and expect gas prices to increase in the future. Also I like the roof 😎
      May 27
  • Gas car don’t ever buy brand if you don’t care it’s used
    May 27 0
  • Facebook tTFN31
    3K CIVIC
    May 27 0

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