New or Used: …Or Neither?

One thing you mentioned is that if it was your car you'd use it more and I don't see that factored into the equation. The other thing I don't see factored into that equation is insurance on that rental car, the LDW can be steep and if you don't have your own insurance or a credit card that will cover it that can add substantially to the overall cost of renting. So yes a smart buy will probably cost you much less and if done right could even leave your wallet a little thicker when all is said and done. The key is a smart buy and if your looking at estate sale stay away from the Hondas and Toyotas particularly the low mile units, they are likely to be bid up to full retail. If you are looking at estate sales look for a Buick, Taurus, Panther, or the ultimate would be a 96 or earlier Mark VIII. Those aren't as likely to be bid up to full retail and will go for trade-in or less. A big key to break even or make a profit is not to spend any money on the car that doesn't increase it's value. In general that means only doing cosmetics as that's what the average buyer focuses on. So that means no rubber band powered cars that are due or overdue for that $$$ expense like that Honda. I can't tell you how much money I've made over the years from people who bought a car because it "looked good" had that special color, or flashy wheels and then brought it to me to "inspect" after it was too late. Spend money on a full detail before you spend it on a tune up if the car isn't running poorly. Speaking of cosmetics color is very very important, stay away from anything in the brown faimly, oranges, or yellows. If it is small or remotely sporty red, red, red. If it is one of the cars I suggested black, silver, blue or pearl white is a good choice. Green's work good on SUVs but have traditionally made cars hard to move. As mentioned above chrome wheels (even wrapped with bargain basement, half bald, or mismatched tires wrapped around them) are also a big plus for moving it quickly when it is time to sell.

Thanks to Steve, Sajeev, B&B for the feedback. As noted the car went for more than I was willing to pay: 4,100 including BP and tax. I will likely rent from ERAC, any dealer around here that will rent wants, understandably, full insurance. Renting and insuring over w/CC is much cheaper than the 100/month for comprehensive plus the 150 break fee after 2 months of use. @Syke: -I've bought/owned when I haven't done the full calculation - it was expensive but damn I loved that Saab, most of the time. - This one would be pure financial calc given the nature of it (buy, use, +flip) vs. rent - Car was for long distance trips, bike/anything else is n/a. Was not for commuting. - - - i.e multiple trips to neighbouring cities/regions of 600 km to 2000 km round trips @jimbowski Good question - I'm sure if you emailed Steve directly he'd respond. @Sinistermisterman Good advice. In this case w/the safety cert, dealer records, and the inspection I had as much/if not more confidence than if purchasing a used car from dealer/private party. @ Scoutdude Good advice on resales. CC insures the rentals. $35/day out the door is mean total cost from ERAC. I thought about building in the "more use" but that was a fudgy variable that couldn't be costed properly. i.e. Another $200 for 5 days of rentals would be prohibitive re: taking off to the cottage for a week but I'd totally jump in a car I had and go, fuel/wear costs be damned.