One of the biggest reasons for you to buy a used car is that they experience significantly less depreciation. When you purchase a new car, that new car can lose as much as 20% of its value as soon as you drive it off of the lot. Many cars will then lose 10% of its value within the first year. That’s a total of 30% of a new car’s value in just one year.
A major factor in determining how much your car insurance will cost is how much your car is worth. With a new car, the value is higher, which means that your insurance will likely be higher than with a used car with less value.
Most states base their registration fees off the transaction price, which means that you will pay more fees for a new car.
If you’re ok with buying used, you will get a much nicer car. If you want a luxury car, you may not be able to afford a brand new model. However, that luxury car that is two or three years old is much more affordable.