| The bleak economic picture has many people who | | | | Taxes are another additional cost associated with |
| need to buy a car in a quandary as to whether it is | | | | buying a new car versus a used car. Typically taxes |
| better to buy a new car with the many deals and | | | | are a lot lower on a used car than a new car. |
| 0% financing available or a good used car. | | | | Insurance costs can be much higher on new cars. |
| There are great deals to be made out there on new | | | | Some states require consumers to buy full coverage |
| cars. Car companies are offering 0% financing and | | | | for new cars and only require liability coverage for |
| large discounts on cars. Those people with good | | | | used vehicles which is much cheaper. |
| credit ratings and job security who prefer to buy | | | | New car prices are affected by the state of the |
| new cars and need a new car should be looking in | | | | economy much more than used car prices. Typically, |
| 2009. It is still important to shop around to make | | | | automobile companies have several layers of |
| sure you are getting the best deal. There are | | | | incentives for dealers and during a weak economy |
| excellent warranties on cars today so it is important | | | | they can offer more vehicles at lower pricing to |
| to feel comfortable with the service department of | | | | dealers combined with attractive financing packages. |
| the dealer you purchase from. You will most likely be | | | | Used car dealers, on the other hand, still purchase |
| taking your car there for years to be serviced. | | | | cars predominantly at auctions and put the same |
| There are additional costs associated with buying a | | | | profit margin on vehicles during bad times or good. |
| new car versus a used car. Depreciation is a | | | | The decision to purchase a new or used vehicle in |
| significant expense to the new car buyer. Cars can | | | | the current recession requires considering many |
| depreciate anywhere from 20% to 40% in the first | | | | variables. The most important variable is what makes |
| year after purchase. They typically depreciate 15% | | | | the most sense for the consumer based on their |
| the 2nd year, 13% the 3rd year and 12% in the 4th | | | | financial situation. If there is any doubt about job |
| year. People are keeping their new cars on average | | | | security or if the consumer already has high levels of |
| about 5 years today unlike 20 years ago when they | | | | consumer debt purchasing a cheaper used car and |
| would trade every year or every other year. If you | | | | paying with as much cash as possible may be the |
| go to trade your car in the 5th year it has | | | | smartest choice .to make. |
| depreciated approximately 70%. | | | | |