<prompt> Human: Whether its in rpersonalfinance or random discussions, most everyone seems to go back to the old line of a new car losing half its value when you drive it off the lot. But if thats the case, then why are so many used cars nearly identical in price to what you can get new? Especially when it comes to trucks or SUVs, it seems like the two to three year old models are only a few grand less at most. How do you know when its worth it to spend xxx more to just go new?  <response>: That advice has been going around for decades. It used to be that used cars depreciated very quickly. That is no longer the case, especially since the used car buyback program by the federal government to improve emissions and get clunkers off the road in the mid 00s.Now a new car does depreciate, but so does a used car. The clear advantage of buying used is still there for the vast majority, but used car prices are quite high also. Its difficult to find a car in great shape and decent mileage for less than 5k nowadays. 