Should I Buy a New Or Used Car?

Quick to depreciate. New cars depreciate more quickly than their used counterparts. A vehicle loses the most value in the first few years of ownership—and a huge chunk of that in its first few seconds off the lot. By some estimates, the instant loss can be 10% of the car’s value. 1 That’s because when you purchase a new car from a dealer, you’re paying the retail price. As soon as you’re off the lot, the car is only worth its lower, wholesale price. This is the amount that the dealer would be willing to pay if you turned around and tried to sell it back.