Vehicles depreciate to quickly to buy brand new.....you got what you got because you traded it in.....believe me you did not come out positively financial no mater how you look at it. Plus you payments are $850-$1000mth. Like Eagle said i would wait a couple of years a buy used. I bought my last Tahoe LT3 with 70,000 well documented miles for $23,000 wic i just chalk up as money saved, but if someone did not take that initial hit in the wallet I would not be able to buy used so I thank you.
In contrasting a used (2-3 year old) Yukon vs. a new 2009 Yukon with 0%/72 month financing:
Used is a great buy if you pay cash, but if you're financing, I think the 0% wins out. Current rates for a used vehicle is about 5.5% -6.5% with good credit. Once you add taxes/registration, etc. you're probably in the neighborhood of $27,000. I wouldn't go without an extended warranty if a vehicle had 70,000 miles on it. Add an additional $2500 for an extended warranty and you're sittin' close to $30,000. Your monthly payment is about $570 per month with 60 month financing (zero down) on a 2-3 year old vehicle with 70,000 miles on it (no way I'd go past 60 months for an older vehicle).
A $45,000 brand new 2009 Yukon/Tahoe at 0% interest for 72 months with a supplier discount of $4000 and 8% sales tax (plus ancillary fees such as registration) puts you at roughly $630 per month (we'll call it $42,000 "financed").
Cash flow is virtually the same ($570 vs. $630), but you're starting out with a few hundred miles on the 2009 at best, and a few years of GM/Chevy fixing the known issues with the 2007 models, plus a 3 yr/36,000 mile factory warranty.
Additionally, with 0% financing your payments go DIRECTLY towards principle, not interest. $630 x 12 = $7560. Multiply that by two and you're at $15,120 after year two (total payments). The loan balance on your vehicle after year two is $27,000 (36% principle reduction). If your vehicle has depreciated less than or equal to 36% in 2 years (must factor wear and tear/mileage for actual value), then you're sittin' pretty good. Remember...the guy that waits two years pretty much buys the vehicle you're paying at 0% for the same amount at that point in time ($27,000), but HE'S paying 5.5-6.5% interest per year!
You can either pay for an older vehicle where the depreciation is absorbed by the previous buyer and pay interest (if financed) with an extended warranty or purchase a new 2009 at 0% financing and make payments directly to principle that is somewhat commensurate with depreciation. In my opinion, 0% financing is the way to go. Hard to pass up free money. I'll take the extra 1 year of payments since I'm buying a vehicle that is 2-3 years "newer", and more than likely will have less problems (total interest paid is about $5000...an additional year's payment @ 0% is $7500).
