I was looking for a cheap car and noticed that I can buy a 2006 Toyota Prius with more than 200k miles off from Craigslist for $3500 or the same Prius with a little less than 100k from a dealership for $10000. Most people I talked about the subject said that it is better to buy off a dealership than from Craigslist, although they didn't know the details other than saying that a 200k miles car will certainly give more maintenance than a 100k miles car and that the dealership will give warranty. I drew a table to calculate the possible expenses:
Assuming that the car will be driven for 4 years and 50k miles and both will be insured for state minimum:
200k miles Prius off Craigslist
- Price of purchase: ($3500)
- Registration in California: ($367)
- Expected maintenance: ($6000)
- Price of resale: $3000
- TCO: $6867
100k miles Prius off dealership
- Price of purchase: ($10000)
- Registration in California: ($890)
- Expected maintenance: ($3000)
- Price of resale: $6000
- TCO: $7890
Thus the cheap Prius seems to be still a good deal. Am I mistaken somewhere on the reasoning?