One of the biggest arguments against buying a new car is the fact that it becomes a used car as soon as you sign on the dotted line at the dealership.
So, in essence, new car buyers pay for the right to be the first owner of a used car. That right comes at a cost, as a car generally depreciates at a rate of 15-20 percent per year for the first three years.
Buy a $35,000 car and, just a few seconds later, it’s worth significantly less than what you just paid. That’s not the case with every new model, but the vast majority experience a significant decrease in value.
What cars can you purchase to keep as much value as possible?
On average, your $35,000 new car will likely be worth about $22,000 after three years. Five years from the date of purchase it would be worth about $11,500. A few models from a few automakers buck that trend and maintain their value far longer than average.
Forbe’s said in a story,
Toyota and Porsche notably capture the top brand and luxury brand awards, delivering incredible resale value across their lineup of vehicles.
In fact, the Toyota Tacoma is expected to retain more than 58 percent of its original value after five years, making it the slowest-depreciating vehicle on the market. The 4Runner and Sienna aren’t far behind, nor are the Jeep Wrangler, Chevrolet Suburban, Chevrolet Silverado, Porsche 718 Cayman, and Porsche Macan.
If none of those cars are on your must-have list, you might be better off looking into a used vehicle that’s two or three years old. Opt for a certified used car and get an extended warranty and the peace-of-mind that comes with knowing your car went through a multi-point inspection and meets the high standards set forth by the automaker.
Plus, as with any used car, the majority of the depreciation has already been paid for so you can drive happy for years to come.
Do you prefer to buy your cars new or used?