Should You Buy A New Car May 2026

A new federal deduction allows you to deduct up to $10,000 in interest on loans for new vehicles assembled in the U.S. for tax years 2025–2028. When to Consider Other Options

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. should you buy a new car

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. A new federal deduction allows you to deduct

Federal tax credits for EVs were killed in late 2025, making new EVs significantly more expensive. Leasing an EV may be safer due to rapid technology changes and faster depreciation. When factoring in lower interest rates, the monthly

Shopping in late spring, summer, or at the end of the year can yield deeper discounts as dealerships push to hit sales quotas. Is buying a new car in 2026 a mistake? : r/personalfinance

Never negotiate based on monthly payments. Focus strictly on the total price including taxes and fees to avoid hidden dealership markups.