Buying a car is one of the biggest purchases most people make, and it’s one of the most misunderstood. From shady dealership tactics to conflicting advice from friends and family, it’s easy to get caught up in myths that can cost you money. To cut through the noise, we turned to ChatGPT to investigate one of the most common beliefs in the car-buying world: “You should never buy a new car because it loses value the moment you drive it off the lot.”
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This is something heard again and again — often delivered with a knowing nod, as if buying new is a financial sin. But is it actually true? ChatGPT gave a surprisingly nuanced answer.
What ChatGPT Said
“Yes, it’s true that new cars typically depreciate the moment they leave the lot, often by 10-20% in the first year alone. However, that doesn’t automatically mean buying new is a bad decision,” ChatGPT explained.
The AI went on to clarify that while used cars can be a better deal upfront, they often come with hidden costs: shorter warranty periods, higher maintenance risks and sometimes higher interest rates on loans. New cars, on the other hand, come with the peace of mind of a full warranty, the latest safety features and lower financing rates, which can make the total cost of ownership more competitive over time.
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The Real Takeaway
According to ChatGPT, the decision isn’t as black-and-white as the myth makes it sound. It comes down to your priorities:
- If you’re focused strictly on minimizing depreciation, a gently used car that’s two to three years old may be your best bet.
- If you value reliability, long-term warranty protection, and access to new tech or fuel efficiency, a new car may be worth the premium.
So, should you never buy a new car? Not necessarily. The “instant depreciation” myth has some truth to it, but like many financial rules of thumb, it oversimplifies a complex decision. By thinking about your long-term goals, driving habits and budget, you can make the choice that’s right for you and not just the one that sounds right on paper.
Sometimes, the best financial advice isn’t a hard rule — it’s asking smarter questions. Even to AI.
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This article originally appeared on GOBankingRates.com: Is Commonly Told Myth About Buying a New Car True? ChatGPT Breaks It Down
