New Car Drawbacks

Cash Crunch
Cash Crunch. Buying a new car is a financial stretch for many consumers, and it's simply out of reach for some. Loan officers typically look for down payments of at least 20 percent before they'll approve a new-car loan. Most car dealers and some bank loans require a smaller down payment, but the less money you put down, the higher your monthly note.

Depriciation
Depreciation the vexation of Car Owners. You'll not only pay dearly to buy a new vehicle, you'll then helplessly stand by and watch its value steadily drop, like sand sliding into the bottom of an hour glass. Some models depreciate faster than others, depending on a variety of factors. The two most significant are supply and demand. When the used-car market is flooded with thousands of a particular model, its value will drop. Models constituting the bulk of rental-car fleets, which are often dumped on the market at discount prices, typically have a lower resale value than do other vehicles in their class.

On the other hand, if enough people are clamoring for a particular kind of vehicle, demand exceeds supply and pushes the value higher. All vehicles new or used depreciate, but the loss in money value is greater on newer vehicles.

| New Car Pros | | New Car Draw Backs | | Ownership Cost & Considerations |
| Used Car Pros | | Used Car Draw Backs | | Used Car Sources |
| The Final Decision |