Which is better: a new or used vehicle?
The decision to buy a new vehicle instead of a used one requires that you consider the following:
Purchase price. A new vehicle will clearly cost you more than a used vehicle of the same make and model. The extent to which the new or used car will drop in value is based on the depreciation rate chosen - average, high or low.
Depreciation. Some vehicles depreciate faster than others do. The slower the depreciation rate of the vehicle, the higher its resale value.
Operating costs. A used vehicle is likely to require more maintenance and repair than a new one. Also, fuel consumption may be less efficient.
Years of ownership. The longer you own the vehicle, the lower the average annual cost, as acquisition costs are spread out over more years.
Financing cost. Interest rates for new vehicle loans are generally lower than for used vehicle loans.
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