New car vs. used car.
In plain English
A new car gives you the latest features, a full warranty, and no prior history, but it takes the steepest depreciation in the first few years, losing a large share of its value soon after you drive it off the lot. A used car has already absorbed that early drop, so someone else paid for the fastest decline, and it costs less to buy and often less to insure. The trade is uncertainty: a used car may need repairs sooner and its history matters. The standard framing is paying more for newness and a clean slate versus paying less by letting the first owner eat the early depreciation.
01Why it matters
The first years of depreciation are the most expensive part of owning a car, and people typically weigh the lower price and slower value loss of used against the warranty and predictability of new, so comparing the depreciation curves is the heart of the decision.
02The math, step by step
A 35,000 dollar new car might be worth around 21,000 to 24,000 dollars after three years, meaning the first owner absorbed roughly 11,000 to 14,000 dollars in depreciation. Buy that same model used at three years old and you skip that drop, paying far less, though you also inherit whatever wear and history came with it.
Illustrative example. The amounts here are hypothetical, chosen to show how the math works, not real quoted rates or figures.
03What this is NOT
This is not advice for your situation. Used is not always cheaper once repairs and higher loan rates are counted, and new is not always a waste. The comparison depends on the specific car, its reliability, financing terms, and how long you plan to keep it.
04Receipts
Every figure on this page is sourced to a primary document. Tap to open the original.