Finding a good deal on a car is not so difficult for the patient buyer, but buying the car is only half the process. The next questions is how long should you keep the car? If you buy a car for $10,000 which you can logically sell for $12,000, then there is no depreciation until the selling price drops below 10,000 at which point it depreciates just like normal. Therefore, to completely eliminate the cost of owning the car, sell the car before this point. You will have effectively erased depreciation on the car. As a bonus, you may also be able to reduce maintenance costs because you can selectively choose cars which you know will not need predictable maintenance in the coming year (i.e. new tires, brakes, belts, etc.)

I personally buy and sell luxury cars annually. Luxury cars because prices fluctuate in a wider range; and annually because that is typically about the time it takes for a car to depreciate to my buying price. The best time of the year for me to sell a car is near the end of summer when annual prices are high; and buy 2 months later, when the market is flooded with new cars and used car prices are at their annual low. Drive this car for 10 months and resale at the end of summer. Keep a simple vehicle around to drive during that time you are looking for your next car.

This strategy is not for everyone; it reduces only about half the cost of owning a car and can take a lot of patience. If you enjoy owning different cars and trying new things, this strategy may be right for you.

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