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Conventional wisdom says buying a used car is a better deal than buying a new car. This is basically true because you lose as much as 20 percent of the value of the vehicle the moment you drive it off the lot. Depreciation is the major reason it is better to get a car that is two or three years old. A two-year-old Used Cars Toyota Baltimore, is still a very good car, but you don’t have the depreciation you would have had with the new car.
From a practical standpoint, and for a lot of people’s budgets, a used car makes a lot more sense. Even so, if you really want a new car, can afford it, and you don’t mind the depreciation, then it might be worth it for you. A lot depends on what you value. New cars also have the latest technology, and as fast as technology related to cars is happening, that could be significant. A third advantage to new is that you likely will not have repair costs for a long time, and maintenance will be minimal.
Most of the advantage of Used Cars Toyota Baltimore are related to finances. You have depreciation, but with a new car you also have a higher sales tax, higher property tax, and you will have to pay more for insurance. Some states don’t have sales tax at all on used items. It is also easier to buy a used car. If you do not have a trade-in, you will have to come up with a substantial amount of cash to buy a new car. Used cars can be gotten with a much lower down payment, and you can get by with a little lower credit score as well.
People usually trade cars every few years, and if that is the case, you will pay a lot more in depreciation if you are getting a new one every couple of years. However, if you drive a car for a couple of decades, the cost of depreciation might even out to some extent. If you plan to drive it until “the doors fall off,” a new car might be just as well, though you could save a lot by getting a depreciated used car.
With a used car you will have more maintenance expense and more repair bills. Even with that, you will still come out ahead considering depreciation on a new car. There is the unknown concerning a used car, but cars are being built better than ever. With Carfax and other information available, you should be able to get a high-quality car.
