When deciding to finance a car, you'll want to consider the vehicle's rate of depreciation. In the United States, a new vehicle usually depreciates from 30 to 50 percent in the first three years. The higher the purchase price, the more you'll continue to pay for licensing, registration, insurance, taxes, and interest. You may decide that letting someone else absorb the costs of depreciation by selecting a 2- or 3-year-old car, versus buying a brand new one, is a good idea for you.