Good Point, we had our windstar fixed, while my wife was getting a ride provided by the dealer the driver was talking about the windstar buy back program. Call and ask!
Know when to walk away…
Know when to RUN.
Absolutely right. While it’s true that once you buy the car, it becomes a used car, depreciation is all imaginary. It’s an accounting device to recognize portions of a one-time expense over time. The flip side is deferred income, where you take in a one-time payment, post it to a suspense account, and recognize portions of it periodically until the original payment to you is exhausted, even though you have had the money and the use of it all that time. Dues payments are typically accounted for that way.
Take two identical new cars. Drive one 100,000 miles in a year. Keep the other one in a garage for a year. Which one is worth more? The answer is obvious yet they’ve depreciated the same amount.