Originally Posted by Despoil0405

Thanks for the insight everyone. The $22,000 trade-in is a firm offer from the dealership. I'm considering getting a 2012 Ford Fusion with under 36K miles and then purchasing the extended bumper to bumper warranty through Ford. If not a Fusion then I'd be looking at other cars in the same class.

In my experience when you buy used you have significantly less room for negotiation on the price (at least at the dealerships near me). They have them priced aggressively to sell and will only budge a few hundred dollars. I'm trying to avoid buying new because of the substantial drop in value soon as you drive it off the lot.

I agree that a $3,000 is a significant cost but as others pointed out the value is going to steadily decline the longer I own the vehicle considering how many miles I put on it every week. In the next six months I'll need to have the tires replaced which is an expense of $700. Gas savings would be roughly $800 a year and insurance premiums/property taxes would go down as well.

I suppose my main dilemma is whether to purchase new or used. You have a lot more room on new vehicles when compared to used vehicles with regards to price but at the same time they take a significant hit in value. I know I'm looking at roughly three years of ownership to break even.