In some popular models, like the Toyota RAV4, a three-year-old used version may only be $5,000 cheaper than a brand-new one. When factoring in lower interest rates, the monthly payment on the new car can actually be lower.
New cars can lose 20–30% of their value in the first two to three years. If you plan to sell within five years, buying a 3–5 year-old used car—which has already absorbed this hit—might be better. should you buy a new car
A new federal deduction allows you to deduct up to $10,000 in interest on loans for new vehicles assembled in the U.S. for tax years 2025–2028. When to Consider Other Options In some popular models, like the Toyota RAV4,
To stay financially healthy, put at least 20% down , finance for no more than 4 years , and keep total monthly costs under 10% of your gross income. If you plan to sell within five years,