So, you’ve heard about new car depreciation and you’re afraid to buy a new car, are you? Then you’ve come to the right place. This article will help you make a decision on whether a new car or a used car is right for you.

Buying a new car is a good choice if you plan on driving it until the wheels fall off. However, you have to realize that after a few years, your car will not be so new anymore. After ten years, it won’t be considered new at all. Driving your new car until it won’t run anymore makes the most sense financially. There are people that must always have the latest and greatest, though. For these people, buying a new car is probably not a good option. A new car will lose a lot of value within the first few years of ownership. After a few years, when you want to sell your not-so-new car, its value could be half of what it was. If you’re the type of person that goes through cars rather quickly, leasing is probably a better choice.

To most people, buying a used car is undesirable. For others, used cars are all they’ll buy. The best reason for buying a used car is the value. When you buy a used car, the previous owner has already taken the biggest depreciation hit. There are many other positives too. On a used car, there is typically no sales tax, financing costs are lower, registration and license fees are lower, and insurance costs are lower. On the downside, used cars will most likely require more maintenance and probably be less safe than new cars.

Buying a new car or a used car really comes down to personal preference. If a new car is a must, be prepared to spend more initially. If you’re buying a used car, realize that your car will need repairs sooner than a new car and some of those repairs could be costly.