Automobiles are basically a bad investment.  They begin to lose their value the minute you purchase them and the depreciation rate can continue to decline at a rapid rate (25- 35% in the first year alone).  Many cars will lose 65% of their value by the time they are 5 years old.  But there are some things that you can do to minimize the rate at which your new Toyota depreciates and subsequently keep your financial loss lower as well.

When you consider the expense of gasoline, insurance, maintenance and repairs, it is easy to see that purchasing an automobile is a huge financial liability.  New cars usually cost more for insurance, and although repairs should be kept at a minimum due to having a factory warranty, if you do need to buy parts, they may cost more for a car as well.

By purchasing a Toyota, you have already taken the first and most important step in decreasing the rate at which your car depreciates.

Purchasing a pre-owned Toyota, one that is two years old is actually a better investment than buying a new vehicle because the prior owner has taken the biggest percentage of financial hit due to depreciation. A vehicle that is 2 years old should also have quite a few months left on the factory warranty.  Another option is to purchase a certified Toyota, which is a pre-owned vehicle that has been checked out by a certified technician for mechanical soundness and has an extended warranty beyond the factory issued warranty.   

Used vehicles usually maintain a stabilized rate of depreciation (7% – 12% per year) which means that they are a much better value than new cars with much higher rates of depreciation.

The financial savings converts to a first year savings of approximately $6,000 to $8,000 if you purchase a pre-owned $22,500 automobile, or if you purchase a  $40,000 used vehicle you will see a savings of around  $10,000 to $15,000 considering that the car has an average mileage of around 12,000 miles per year.  If you consider the purchase of a used vehicle that has more mileage than average, you could see a total savings of up to 50% of the original value of the car when it is 2 years old.

To get an estimated depreciation rate on used Toyota cars that you are considering purchasing from Spirit Toyota in St. Louis, go to; http://www.money-zine.com/Calculators/Auto-Loan-Calculators/Car-Depreciation-Calculator/