It’s not fair or right, but new cars depreciate faster than used vehicles.
To put it simply, if you buy a brand new car without a down payment, or if your monthly loan payment isn’t high enough to compensate for depreciation, you could end up owing more than the vehicle is worth.
What are the advantages and disadvantages of buying a new car?
Disadvantages of Buying New. The price of a new car is typically much more expensive than if you bought the vehicle used. Be prepared to pay much more in sales tax. New vehicles are said to lose up to 20 percent of their value as soon as you drive off the lot.
Photo in the article by “Pixabay”