I have two options to buy a car: 1. 2004 Camry that costs 5.5k

Buying a new car is never a savvy position.. but 2004 @ 5.5k w/117k miles is a bad deal. Talk them down or look for like a 2015 Camry.

what condition is the 2004 camry? if it good...and you like to save money to buy another car in another year...

>>18707518
Option 1. Unless the car has obvious catastrophic damage to it. It is never a good idea to buy directly off a lot. Seek the help of an automotive savvy friend. Ask him the cost of repairs, and maintenance- if that number is less the 21.6k, buy the vehicle.

The only reason to buy a new car off the lot is to peacock your willingness to squander money.

>>18707518
>I have two options
Do you really? Only 2 in all of the car market? I'd try and find like a 2010-2012 with 70K miles or something like that. I'm no car expert, but something with a good combo of being relatively recent and decently low miles as it should be fairly good and cheap.

Neither is ideal, but option 1 is better. See if you can find a used car with fewer miles though, because that is probably about twice the price you should pay for a car like that.

Lets assume the used car is priced accurately.
It has been driven 117000 miles. It has depreciated (more or less, not same car, stop nitpicking) $ 21600 - $ 5500 = $ 16100
$ 16100 / 117000 miles = 0.137 $/mile
not too bad.
If you drive the old car say another 5 years, after which it is basically junk, you will manage 117000 miles / (2017 - 2004) = 9000 miles (/ year)
for 5 years, that is 45000 miles.
the $ 5500 / 45000 miles = 0.122 $ / miles

Basically it all boils down to how many years you plan to own the car, and how much of a risk (breakdown) you are willing to take.

The miles driven with the new car should be more expensive than the ones driven with the old. this seems not to be the case. Yes, it may still be serviceable in 5 years, but that number has some risk calculated into it. Some 2004 cars will break down this year..