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Buy new car at 12% of gross income



I’m looking at buying a new car for my family. Our old one is having issues, I’m not handy, and I want new safety features to keep them as safe as possible.

The car is kind of expensive but to contextualize it, it costs about 12% of my gross income to buy it in cash (which we can do). So that would be something like a $12K car for someone making $100K. It’s a Toyota. Plan to keep it 10+ years like our last car.

The cheap part of me thinks I should get a used car and let someone else take the depreciation hit. But the depreciation isn’t that great on Toyotas. So maybe a used one would cost something like 8% of my gross income for a car with 60K miles.

Should I buy new or used?

submitted by /u/seattlesplunder
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