It all boils down to this, YOU GOTTA PAY TO PLAY!

 

I love numbers and analyzing them as much as the next nerdy engineer. :-)

But, I am also an enthusiast, and I know you cannot use numbers to make your decision on a car like this.

Drive them and then decided what "moves" you more and buy (it).

The numbers you have are really close and should not sway such an emotional, intangible decision.

 

YeeeeeeHaw .......Isn't that Dragon just an awesome ride? . I drove it during the Dragonball Run when I lived in Knoxville in 2001. Does your New Formula Red have any kind of a metallic glisten to it, or is it solid red? The reason I ask is that I drove a '05 Rio Yellow tonight and I am waiting for a Red one to come in. The Rio Yellow definitely had a metallic in it....or maybe that was the pearl effect? Kevin

 

Gotta have toys, when you own one everyone is in your rear veiw mirror so it really doesn't matter what year.

 

In my opinion, its hard to figure all this stuff out. Honda could bring out a new design for the S, and the old S resale values may drop alot.

You might have to put ALOT of miles on the car in 2 years, so the value will drop quite a abit for any year model.

But maybe I missed your point? It is a Honda, though, the car will resale well, but you are going to take the biggest hit if you buy the car brand new and sell it in 2 years.

Personally I would go for the used 02, and if all is well, take a small loss in 2 years from now.

 

I really appreciate all of the comments about this topic, but I wanted to clarify a few things.

It didn't actually make an assumption that depreciation is constant. Instead, I initially thought that it would be highest in the first year, and if you pay retail price for a new s2000 then that will be the case. But, using the numbers that I took from KBB.com, if you pay $30,000 for a new car I found that the first year depreciation is cut almost in half. That being said, if you compare the new depreciation to that in the following years, it will appear constant, but it actually varies within about $500.

Secondly, I totally understand that the decision to buy this car shouldn't be financial, but rather emotional. However, the decision to buy has already been made for a my2005 or my2004, and I wanted to see what the cheapest way to do it would be.

Third, I know that some people buy this car with the intention of keeping it forever. I have done that with a number of cars, including another honda, and don't have any desire to do it again. So, the point of this analysis was trying to prove that I could own a $30,000+ car, and have a new one every two years, for less than $300 per month. This is awesome in my opinion, and I think you will have trouble finding that you with any other car, even cheaper ones.

Finally, I am trying to figure out when the best time to buy is. For the used market and new. Is it during the winter (I live in Philly) or at the end/beginning of a model year?

Thanks again, more comments!

 

Very well said. It's nice to see some intelligent posting on S2Ki. So many people have such horrible habits when posting on the internet/writing emails, and it is refreshing to see that some actually take their time when writing.

Now with that said, I have to agree with Scott Evil's last comment. It's great to see that even though he has been a banker for 10 years, and he analyzes demographics and world issues, he admits that when it came down to purchasing his S it was an emotional decision. A car like this cannot be over analyzed. Honestly, there is no rational reason for me to own this car and drvie it on a daily basis. There are certainly vehicles that are more economical, have more usable room, and are just down right more convenient at times. Some things in life shouldn't be so heavily analyzed. Can you afford this car regardless of MY?? Do you want to own it? Then purchase it. This is slightly off topic but listen up: a friend of mine is very ill and I know he would give any thing just to have a normal life again(he's 22 BTW). He would give anything just to be able to hop out of bed and go for a ride in his S with the top down; nothing but the wind in his face and the warm sun on his neck. It may sound cliche, but tomorrow's not promised today so what does it matter if this will depreciate significantly? Enjoy it while you can.

 

Here's one thing I think you forgot. Sales tax. This is part of the cost of the car. Now if you get the car at a great price then you'll offset the tax in most areas at best.

 

didn't read all replies, but is there a leasing option?