1. Buying New: The Gold Standard (at a Premium)
In 2025, new car prices hit a historic milestone, with the average cost surpassing $50,000. In 2026, those prices have remained elevated, though higher inventory levels mean you actually have room to negotiate again.
The Perks
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The Latest Tech: With 2026 models, you’re getting the pinnacle of safety suites and AI-integrated infotainment.
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Better Financing: While used car loan rates hover around 11%, new car loans are often closer to 6.5%, and many manufacturers are offering 0–3% promotional APRs to move stock.
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Peace of Mind: You get the full manufacturer’s warranty and the certainty that the car hasn't been mistreated.
The Pitfalls
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Immediate Depreciation: A new car still loses about 20% of its value the moment you drive it off the lot.
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Higher Insurance: Newer tech and higher replacement costs mean your monthly premiums will be significantly higher than a used counterpart.
2. Buying "Slightly Used": The 2026 Sweet Spot
This year is being called the "Year of the Used Car" by industry experts. Why? Because the supply of 3-year-old vehicles (off-lease from 2023) has finally rebounded, flooding the market with high-quality options.
The Perks
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Depreciation is Your Friend: Let the first owner take the $10,000+ hit. You can often find a 2024 or 2025 model that looks and drives like new for 30% less.
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CPO Programs: Certified Pre-Owned (CPO) vehicles give you a middle ground, offering a manufacturer-backed warranty and a rigorous inspection.
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More Car for the Money: In the used market, your $35,000 might get you a luxury Lexus or a top-trim SUV, whereas it would only buy a base-model sedan brand new.
I for one believe in slightly used. Can essentially drive a care for three years and pay a fraction per month of what a new car costs.
Thoughts?
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