Personal vehicles, such as cars and trucks, tend to depreciate very quickly, which means that they decrease in value. They depreciate faster in their first year of life, losing around 10 percent in the first year of ownership, according to Forbes. Insurance rates are also usually higher for new cars, which makes them more expensive in the long run. Purchasing a new car on credit can also increase costs as owners must pay interest on the original purchase price.
Drivers can save lots of money by purchasing used trucks. Because cars depreciate faster when they are newer, buying a car that is a few years old is usually much cheaper than purchasing a new one. Drivers should also pay upfront for their vehicles as credit involves interest, which adds to the cost.
There are a few exceptions to the deprecation rule. Models that are in short supply and high demand can occasionally sell for more than the original cost, according to Time magazine. Also, some new car and truck models are more fuel efficient than models that are a few years old, which can save drivers lots of gas money in time. Manynew models can also have lower maintenance costs, according to Car and Driver magazine.Learn more about Buying & Selling