Best Buy Used Car

Q.Anyone have thoughts on when's the best time to buy a used car? I was thinking of getting a 92 Camry shortly after the 94s come out. I figured the price will drop significantly around that time because of the new model year and people trading in their 92s. Any comments?

A.The price will not necessarily drop "significantly". It depends on demand. You are right, however, that when the new models come out, the old ones become a year older, and there is a corresponding drop in value. If you want to save money by buying used, however, you should look at cars that suffer greater depreciation. I don't know specifics about Camrys, but I think they don't drop in value as quickly as some others. This is not a quality or longevity issue, it is a mass market perception issue. There are probably some better buys in used cars, and I don't mean Dodge Aries. Which models to consider are partly a matter of taste and personal needs, and getting the best buy in a used car requires some research on your part. But if you want a Camry, go for it. But don't look too soon after the 94s come out. Wait until you start seeing them on the road. That would suggest a larger number of trade-ins, thus greater supply, and assuming fixed demand (which is presumptuous, I know), moderating prices. The conventional wisdom says that most of depreciation takes place in the first 2 years. After that it depreciates much slower. Remember, when you buy a new car, you pay the dealer markup, not what the true value of the car is. Anyway, wait until the '94's come out, and then buy the '92.

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