Buying a car isn't usually an investment decision, but to lose $40K in less than 2 years whether it's a Toyota, a Holden, a Ford or anything really just doesn't make sense to me. In the end, it's still just a Toyota, a Holden, a Ford which has likely been superceded by the next latest and greatest model. Cars can be very personal selections for many people because some believe it portrays the image that they would like etc, etc...that can be when they pay too much. For these reasons, I try to buy a car at just over 12 months of age. The Prodigy I recently purchased was >$16K below it's initial sale price, and it had 11 months rego left. That's a fair saving on a car that has been partially run in for me. It was bought because it suited my needs, and not my emotions. It will continue to depreciate of course, but I've avoided that first big hit. Of course there are people out there that have much more money than I have and they can afford to lose $ on cars. Then there's leasing.