Good morning,
I am trying to do an analysis of a new versus used auto for my growing family. If possible, please come into this with an open mind. I understand that is almost always makes sense to buy used - I, however, still want to run through the financial analysis to make sure that that is correct for my specific needs. Some background - new auto would be partially financed. Used would be paid with cash. All other information should be explanatory. Please see .PDF for breakdown.
Your numbers are little off because they are missing taxes and depreciation.
Cost of depreciation on Rav4 (first year): $4,121
Taxes on a new car/$25k vs $10k: ???
Let's say tax on the Rav4 is $2k even and $1k even on the older cars.
We are now at $35k for the Rav4, first year.
$700 in financing sounds like a lot, what is your interest rate? IMO only 0% or 0.9% make sense... is this 36 months financed, 48, 60?