Terim arrived in Milan on Monday, and, as he has proven in the past, was not backward in speaking on the controversial topics.
When asked if he thought the current squad was okay, Terim stated: "No, a lot of players will leave because they simply do not have the quality to stay at a big club.
"I will be bringing others in to the club as replacements.
"[Cosmin] Contra, [Cristian] Zenoni and Massimo Donati were all bought last year, and Javi Moreno was signed by Ariedo Braida.
"If Inzaghi does not arrive it is not a problem because I do not think he is fundamental to the side."
Rui Costa has become one of the hottest properties in the league, and Terim knows the player well from his time at Fiorentina.
The Turkish coach insisted that the player would happily join him at Milan, but that his Florentine club are understandably reticent to let him go.
"I can convince Rui Costa, but I cannot convince Fiorentina," added Terim.
The talk about Turkish players arriving with the former Galatasaray coach was also down-played.
"The newspapers in Turkey seem positive that players will arrive, but I can tell you that nobody will come.
"The difference between the Terim that arrived at Fiorentina and the one that arrives at Milan is that one year ago I had little experience. I knew Italian football only by what I had seen on television. Now I know it by heart."
Terim's appointment appeared to be settled after a 4-0 victory over the Rossoneri when he was in charge at Fiorentina, but the coach insists that it was style rather than a single game that decided his fate.
"I don't think it was that game. A coach is decided because of his work, because of his philosophy.
"I was hired because last season Fiorentina played the best football.
"My game plan is to press for ninety minutes, with little space between the lines and creating a lot of chances.
"I am not worried about the fitness of my players just that they will fit into my strategy quickly as the season starts.
"I want to win both at home and away and this is what I will strive to do."
