Jul 19 2008
New Car versus Used Car, a Comparison
Owning a brand new car is exciting. But financially speaking, it is better to buy a used car. As soon as you drive a new car off the lot, it loses much of its value. That’s because your car is no longer “new”. New cars lose about 40% of their value to less than 3 years, then depreciation starts to slow. Why not buy a used car and allow someone else to take the depreciation hit? The previous owner has absorbed the largest portion of the depreciation cycle. At that time the cost of owning and operating the car will be reduced. The money you save on depreciation will certainly go a long way.
