Buying Used Vs New Cars

I think in a year or two it’ll be time to upgrade my ’99 Accord V6 coupe. I was just looking at new 5-series BMW prices and the cheapest 5 series for the 2006 models is about $43,095 plus tax. OUCH!

Hmmm….whats the pricing on used?? Apparently 50% off! Here’s a 2001 model for only $16,995!. So its 2000 miles away. But for a $26,000 saving, I can afford to fly out there first class and drive it back!

And while I’m there, I can use the $26k as downpayments for 2 more houses in Indiana!!! Last year I bought 2 houses there for around $85k each from the bank as REOS. The insurance replacement value came back as $135k each. That doesn’t mean they’ll sell for that much, but atleast I didn’t overpay for them!

I got a 30 year fixed on one and a 10 yr fixed on the other. Total downpayment was around $20k-$25k between the two. And they cashflow a little bit too.

I’d rather buy 2 more houses than buy a new or used car.

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