economy
January 29, 2026
New car prices are near $50,000, but buying used isn’t always cheaper—here's why
A lower sticker price doesn’t always mean lower costs, since used cars typically come with higher interest rates and repair expenses.
TL;DR
- New cars typically lose 30% of their value in the first two years.
- The price gap between new and used cars has widened.
- Upfront savings on used cars don't account for total cost of ownership.
- Financing costs for used cars are typically higher than for new cars.
- Used cars generally face higher maintenance and repair expenses as they age.
- Loan terms (length and APR) significantly impact total interest paid.
- The decision between new and used depends on how long the car is kept and desired cost certainty.
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