It depends on what and how you buy. For example, Volkswagons don't depreciate very quickly if kept in good repair and one can always buy a 2-3 year old car with much of the depreciation hit already gone. If you're a regular commuter and drive, say, 200 mi/wk a grand cherokee will run you about 40/wk in gas; a Jetta diesel about 20. That's about 1000 less p.a. Keep it 5 yrs and i'd say you're ahead, all things being equal.