Should You Buy A New Car May 2026

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.

New cars typically have higher insurance premiums and higher property taxes in certain states. Smart Buying Tips for 2026 should you buy a new car

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