You’ve done your research and you’ve decided that your first car is going to be a Ford Focus. With a small sum of money in your saving account, you jump in the back of your dad’s car and head for the dealership in West Valley City, Utah. Once you get there, you’ve got a decision to make. What kind of Ford Focus are you going to buy, new or used?
On one hand, used cars are cheaper. But they have more mileage on them and probably won’t last as long as a new car. New cars, on the other hand, are subject to a drastic depreciation right as it rolls off the lot. To determine what is best for you, it’s important to understand this depreciation.
Depreciation in the Auto Industry
On average a vehicle loses 20 to 30 percent of its value right after it’s purchased. This means that if you buy a car for $20,000, the very next day it would only sell for $16,000. Why should that matter to you? This will really only affect you if you are planning on selling the vehicle someday down the line.
In five years, let’s say that you are ready to sell. If the car has depreciated another $4,000, you will likely sell the car for around $12,000. That is $8,000 less than what you paid for it. If you had instead bought the car used with low mileage for $16,000, when you sell it in five years for $12,000 you will only have lost $4,000 instead of $8,000.
Ultimately, Do What Is Best for You
Besides the money aspect there are pros and cons to buying new or used. Luckily, here at Henry Day Ford, we have both new and used cars for you to choose from. If you’re still on the fence, don’t hesitate to come down to the dealership and we’ll help you find the best Ford Focus that fits your situation.