General Discussion

Everyone knows this. Cars lose $5000 as soon as you drive it off the lot. All of them. 24% of the people trading in cars were upside down with the average amount owed being $6500.

https://www.usatoday.com/story/money/personalfinance/2024/10/16/upside-down-car-loans-americans-owe-record-amount/75686795007/

If you could buy a new car and trade it in three years later for the same price you paid, why wouldn't a buyer just buy a new one?

People trade in vehicles for all kinds of reasons; tens of thousands every day. Decided an EV wasn't for them, wanted something newer, bigger, smaller etc, etc. Got a promotion and wanted a fancier car, needed a pickup truck. People get bored and want something different. Not to mention the popularity of leasing which puts you in a new vehicle every few years anyway.

I'm the opposite as I keep cars 12 years and 225k miles. Develop an emotional attachment and familiarity with them. Haven't traded one in in over 30 years.