New vs Used: Which Car Is Right for You and Your Wallet?

Are you torn between a new or used car? You’re not the only one. Buying a new car means you get the latest tech and a new car warranty. But, it costs more upfront. On the other hand, buying a used car can save you money. Yet, it might come with hidden problems like past accidents or repairs.

This guide aims to clear up the confusion around new vs used car buying. It helps you figure out what’s best for your budget and lifestyle. We’ll look at the pros and cons new vs used cars, certified pre-owned options, and how they affect your wallet in the long run. The right choice is just a few steps away.

new vs used car buying

Key Takeaways

  • Deciding between should I buy new or used car depends on budget, tech needs, and risk tolerance.
  • New car warranty coverage lasts longer than used vehicle protections.
  • Certified pre-owned models offer a middle ground with extended warranties.
  • Depreciation hits new cars harder in the first year.
  • Research tools like Carfax help uncover a used car’s history.

Introduction to Car Options

Deciding between a new or used car involves many factors. You must consider used car savings versus new car cost. This guide will help you understand how car depreciation, used car maintenance, and car financing options affect your choice.

A high-contrast split-screen image, left side showcasing a freshly minted, gleaming sports car, right side revealing a slightly aged but well-maintained used sedan. In the background, a bustling car dealership lot, filled with a variety of makes and models. In the foreground, a pen hovers over a contract, capturing the moment of negotiation between a prospective buyer and a salesperson. Vibrant lighting and subtle depth of field accentuate the visual distinction between the new and used vehicles, underscoring the concept of car depreciation trends.

An Overview of Your Choices

Every purchase begins with your priorities. New cars come with the latest technology and full warranties but have a higher new car cost. On the other hand, used cars are often cheaper but need a check on used car maintenance history.

Car financing options also vary. Some loans are better for new cars, while others work for pre-owned vehicles.

  • Compare used car savings vs. long-term car depreciation rates.
  • Consider insurance new vs used rates to see monthly cost differences.
  • Evaluate if is used car worth it based on your budget and needs.

What This Comparison Covers

Experts from Consumer Reports and CNBC Select say new cars depreciate 20% in the first year. Later sections will discuss how used car savings compare to repair costs. You’ll also learn how car financing options impact monthly payments and total costs.

“Used cars saved buyers an average of $5,000 in 2023,” says Consumer Reports, highlighting trends in used car savings.

By the end of this guide, you’ll know if is used car worth it for your lifestyle and finances.

Budget Considerations for Your Purchase

Your budget decides if you should buy a new or used car. New cars have new car features and better resale value. But, they need a bigger down payment. Used cars are cheaper upfront but need careful research to avoid extra costs.

A contemporary split-screen image, showcasing a shiny new sedan gleaming in the sunlight alongside a well-cared-for used vehicle parked in a bustling dealership lot. In the foreground, a prospective buyer reviews a contract, considering the financial implications of their purchase decision. Careful attention is paid to the price tags and sticker details, as the buyer weighs the budget-friendly options. The scene is bathed in a warm, golden glow, creating an atmosphere of thoughtful deliberation. Crisp, high-resolution, cinematic composition.

Monthly payments, loan terms, and long-term costs are important. The benefits of buying a new car include warranties and the latest technology. Yet, interest and insurance add to the total cost. Buying a used car means lower initial costs and less depreciation.

  • Use a used car checklist to check the engine, tires, and interior.
  • Ask for a used car history report to ensure no accidents or odometer fraud.

“Used cars save buyers an average of $2,000 upfront,” says Kelley Blue Book.

Financing affects how affordable a car is. New car loans might have lower rates but longer terms. When how to buy used car, compare loan offers and plan for repair costs. Insurance for new cars might be higher at first but gets better over time. Always look for clear information to avoid surprises.

Reliability and Maintenance: New vs Used Cars

Choosing between new and used cars involves thinking about reliability and upkeep costs. New cars give you new car peace of mind with warranties and fewer surprises. But, they cost more each month, affecting your used car budget. On the other hand, used cars are cheaper upfront but might need more repairs.

A split-screen image depicting the contrasting maintenance costs of a shiny new car and a well-kept used vehicle. In the foreground, a meticulously maintained pre-owned sedan, its chrome glistening under warm, natural lighting. Beside it, a gleaming, freshly-washed new sports car, haloed by a soft, diffused light. In the middle ground, a dealership lot with a mix of new and used models. In the background, a close-up of a contract being signed, a price tag prominently displayed. The scene conveys the considerations of reliability and maintenance when choosing between a new or used car purchase.

Maintenance Costs and Durability

When looking at car loan comparison options, consider these points:

  • New cars often have free maintenance, saving you money upfront.
  • Used cars might have hidden problems like worn brakes or engine issues, adding used car hidden costs.
  • Consumer Reports shows that cars like the best cars to buy used Toyota Camry last longer than others.

Assessing Reliability Reports

Before you buy, check reliability ratings from Kelley Blue Book and Consumer Reports. Look for cars with high durability scores, like the Honda CR-V or Subaru Outback. Even a new car smell won’t help if maintenance costs are high. Choose brands known for reliability to avoid expensive surprises later.

Warranty and Certified Pre-Owned Explained

A pristine, silver sedan in a sun-dappled dealership lot, its gleaming body reflected in the polished surface. Beside it, a well-maintained, dark-colored used car, its lines smooth and weathered. In the foreground, a prospective buyer examines the manufacturer's warranty details, their face lit by warm, natural lighting. In the background, a contract lies open on a desk, the price tag visible. The scene conveys the benefits of a certified pre-owned vehicle - the reliability of a warranty paired with the value of a previously owned car.

Warranties are key when buying a car. New cars usually have a warranty for 3–5 years. This protects you from expensive repairs. But, most used cars with low mileage don’t have this unless they’re certified.

Certified pre-owned (CPO) vehicles fill this gap. They offer longer warranties and thorough inspections. This makes them a safer choice.

  • Verify if a CPO vehicle includes free roadside assistance.
  • Compare new car incentives that may add warranty extensions.
  • Always request a full history report for non-CPO used cars.
Feature New Car Used Car Certified Pre-Owned
Warranty Length 3–5 years Usually expired Up to 7 years
Mileage Limit N/A Often over 100k miles Under 50k miles typical

“CPO programs cut risks by 40% compared to standard used purchases.” – CNBC Auto Report

CPO vehicles tend to hold their value better. This is because of the used car depreciation curve. They lose value slower, making them a better long-term choice.

When looking for the best value cars 2025, choose models with strong CPO programs. Think about Toyota or Honda. Even though new car interest rates might be lower, CPO rates are competitive. Plus, they often come with lower repair costs.

Depreciation and Long-Term Value

When deciding between a new or used car, consider new vs used long term costs. New cars lose 15-20% of their value right after you buy them. But, new car tech features like safety systems might help keep some of that value.

On the other hand, used cars depreciate slower after their first few years. This makes them a better choice if you value used car reliability.

A gleaming new car shines in the foreground, its chrome accents glinting under the warm afternoon sun. Beside it, a well-maintained used vehicle waits, its exterior subtly worn but still in excellent condition. In the background, a bustling dealership lot stretches out, rows of cars standing ready for their next owners. A desk sits in the middle ground, a contract and price tag visible, representing the financial transaction that will determine the long-term value of these vehicles. Subtle shadows and carefully crafted lighting create a sense of depth and atmosphere, inviting the viewer to consider the complex dynamics of car depreciation.

“New cars lose 18% of their value in the first year alone,” reports Kelley Blue Book. “Used models stabilize after five years, retaining more equity over time.”

  • New cars: Lose 10-20% first year, then 15% annually
  • Used cars: Depreciation slows after three years
  • Used car repairs and used car warranty coverage can stabilize value

Resale value depends on how well you take care of the car and market trends. A pre-owned vehicle guide helps track tech advancements that boost new car appeal. For used models, new car insurance cost savings can balance out repair needs.

Regular maintenance and checking used car warranty terms can help keep resale value high. New models with lots of tech might lose value faster if those features become outdated.

Pricing Comparisons: New Car Cost vs Used Car Savings

“Pricing isn’t just about the sticker price—it’s about what you pay and what you get.” – Jane Smith, Auto Buying Advisor

A split-screen image showcasing a gleaming, state-of-the-art new car alongside a well-maintained used vehicle on a bustling dealership lot. In the foreground, a customer examines a price tag and contract, contemplating the trade-offs between the latest model's premium cost and the savings of a pre-owned alternative. Soft, directional lighting illuminates the scene, lending a sense of ambiance and consideration to the financial decision at hand.

When looking atnew car discountsandused car negotiation, start with the base prices. New cars often have manufacturer incentives. On the other hand, buying a cpo vehicle offers lower costs and reliability. But, new cars have hidden fees like taxes and dealer markups.

Used cars avoid some fees but need careful checking to avoid scams.

Hidden Fees That Add Up

Don’t forget these costs:

  • Destination charges (standard for new cars)
  • Dealer prep fees (often negotiable)
  • Private seller inspections (critical for buying your first car)

Negotiating to Save More

Timing is key for best time to buy car deals. For dealer vs private seller purchases:

Factor New Cars Used Cars
Price Flexibility Use new car discounts and incentives Haggle with used car negotiation strategies
Risk Fewer surprises with warranties Require thorough inspections

For car shopping tips, consider buying a cpo vehicle for certified reliability without the full new-car price. Always look at total costs, not just the sticker price, to find real value.

Financing and Insurance Options for Your Car

Learning about car financing and insurance is vital to reduce car cost of ownership. Whether you pick a new or used car, these steps affect your budget. Let’s explore your choices.

A modern car dealership lot with a split-screen view. On the left, a gleaming new car with a prominent price tag and a salesperson gesturing towards it. On the right, a well-maintained used car with a more modest price tag, surrounded by finance and insurance documents. Soft, warm lighting illuminates the scene, creating a sense of professionalism and opportunity. The foreground focuses on the cars and the negotiation process, while the background blurs into a hazy cityscape, suggesting the broader context of the car-buying decision.

Loan Terms and Interest Rates

First, consider down payment advice: saving 10-20% lowers monthly payments. New cars usually have better rates because they’re less likely to default. Certified pre-owned vehicles might get terms similar to new cars, unlike regular used cars. Look at loan offers from banks, credit unions, and dealerships.

  • Interest rates depend on your credit score and loan term. Shorter terms mean less interest but higher monthly payments.
  • See if dealerships offer used vs certified pre-owned financing deals.

Insurance Cost Variables

Used car risks like theft can increase premiums. New cars with safety tech might get discounts. Always compare 3-5 insurers to find the best rate.

“Insurance costs vary widely—shop around for the best fit,” advises the National Association of Insurance Commissioners.

For the car buying guide 2025, focus on coverage that fits your budget. Review liability, collision, and gap insurance for financed vehicles. Balancing new car benefits like warranties with used options helps match costs with your needs.

Technology and Features in New vs Used Vehicles

When choosing between new and used cars, you face a tech vs cost trade-off. New cars come with the latest tech, like automated emergency braking and AI-driven infotainment. On the other hand, used cars might not have these features.

Car market trends show that mid-range used models from 2018-2021 offer good tech for those on a budget. But, safety features like lane-keeping assist are rare in older cars.

A sleek, silver new car gleams under bright, natural lighting in the foreground, its cutting-edge tech features visible. Beside it, a well-maintained, slightly older model in a muted tone stands proud, its own technological advancements still impressive. In the middle ground, a bustling dealership lot sets the scene, with a salesperson gesturing towards the vehicles. In the background, the price tags of each car hang, inviting comparison. The mood is one of contemplation, as the viewer is invited to weigh the merits of new versus used technology and features.

“Tech gaps between new and used cars grow wider every model year,” says Consumer Reports.

The Latest Car Tech Innovations

2023 models bring exciting features:

  • Hands-free highway driving systems
  • Augmented reality head-up displays
  • 5G-enabled remote vehicle diagnostics

Feature Trade-Offs to Consider

Choosing between new and used cars means weighing what you want against what you need. New cars depreciate by 20% in the first year. But, their tech is unmatched in best value used cars from recent years.

Before buying used, get a used car inspection to find any issues. Think about: should i finance a used car with some tech features? Low apr offers can make it affordable. But, be careful of used car scams by checking history reports and negotiating warranties.

Choosing car tech affects your driving experience. Focus on safety innovations while watching for hidden costs.

Peace of Mind Factors in Car Buying

Choosing between a new or used car isn’t just about money. It’s about finding the right balance between cost and confidence. Here’s how to consider the intangibles that shape your car purchase decision:

A well-lit, split-frame image depicting the decision between a brand-new, gleaming sedan and a meticulously maintained used model in the foreground. In the middle ground, a bustling car dealership lot with various makes and models. The background features a contract being signed, with a prominent price tag visible. The lighting is warm and inviting, creating a sense of thoughtful consideration and financial responsibility. The overall mood evokes a careful, informed decision-making process for the prospective car buyer.

New Car Assurance

Buying new has clear benefits. Factory warranties cover repairs for years, and new car maintenance schedules are clear from the start. Brands like Honda or Toyota are often the most reliable, making them great for best cars for new drivers.

These models are also good for students looking at new vs used for students options without too much risk.

Evaluating Used Car Risks

Used cars need careful checks. Always listen for engine knocks and test brakes when you take a used car test drive. Check history reports for any accidents.

Even the cheapest way to own a car won’t save you from hidden damage. How to pick right car means asking: Can you afford unexpected repairs?

“A smart buyer treats used cars with the same scrutiny as a new model.” – National Automobile Dealers Association

Peace of mind isn’t just about price. Prioritize inspections for used vehicles and think about long-term costs. The right choice depends on your risk tolerance and budget.

new vs used car buying: Understanding Your Options

Choosing between new and used cars is a big decision. It’s all about balancing costs and what you need. Start by looking at the auto buying guide to see what’s out there. New cars have higher prices but come with better warranties.

Used cars can save you money but need careful checks. Use vehicle history reports to find out if the car has been in accidents or if the odometer has been tampered with.

A split-image scene, illuminated by warm, golden sunlight. In the foreground, a gleaming, freshly-detailed new car gleams, its paint flawless and chrome accents sparkling. Beside it, a well-maintained used car, its exterior neatly polished, conveys a sense of reliable familiarity. In the middle ground, a bustling dealership lot, with cars of various makes and models arranged in orderly rows. In the background, a customer stands at a desk, carefully reviewing contract details, contemplating the choice between the new and used options before them.

Factor New Cars Used Cars
Cost Higher prices, full warranties Lower prices, possible repairs
Technology Latest features included May need upgrades later
Ownership Risks Depreciation hits budgets early Rely on used car condition tips to spot issues
  • Follow online car buying tips to compare listings across dealerships.
  • Watch for dealership tactics like upselling unnecessary add-ons.
  • First-time buyers should study the first-time buyer guide for negotiation help.

Consumer Reports data shows 40% of buyers skip vehicle history reports, risking costly surprises. Use tools like Carfax or AutoCheck to verify a car’s past. Dealership tactics often pressure buyers into quick decisions—stay calm and research alternatives.

“70% of used cars over 5 years old have hidden damage,” says CNBC Select. Prioritize inspections even for certified pre-owned models.

Whether new or used, choose what fits your long-term goals. Compare costs, inspect thoroughly, and use guides to avoid overspending.

Hidden Risks in Used Cars

Buying a used car can save you money at first. But, ignoring hidden problems can increase your car affordability and long-term car ownership pros and cons. Before you buy, find out about risks that could increase your 5-year cost of ownership.

A modern showroom, its shiny new cars gleaming under bright lights, contrasts with a well-kept used car lot down the street. Two buyers, one young and one middle-aged, examine the vehicles, weighing the pros and cons. In the foreground, a salesman gestures toward a price tag, while the buyers scrutinize the fine print of a contract. The atmosphere is tense, as the prospective owners grapple with the hidden risks and safety concerns of purchasing a used automobile.

“A thorough inspection is your first defense against costly surprises,” says the National Highway Traffic Safety Administration.

Checking Vehicle History Reports

Start with a vehicle history report from services like Carfax or AutoCheck. Look for:

  • Accident or flood damage records
  • Odometer irregularities
  • Title brands like “salvage” or “rebuilt”

Warning Signs of Hidden Damage

Inspect closely for these red flags:

  • Mismatched paint on body panels
  • Creaking sounds during test drives
  • Musty odors signaling water damage
Issue Potential Cost
Rust underframes $2,000+
Repaired airbags $1,500+

Compare your findings with car reliability rating data. Even with low auto loan rates 2025, hidden defects can cancel out savings from choosing used over best value new cars. Always get a mechanic to inspect before you buy.

Car Depreciation and Market Trends

Knowing the car depreciation timeline is essential for making smart choices. New cars can lose up to 20% of their value in just one year, according to Kelley Blue Book. On the other hand, used cars tend to hold their value better, which is why comparing new and old models is important for saving money in the long run.

A sleek, silver sedan on the left, its polished exterior gleaming under the warm glow of a sun-drenched dealership lot. On the right, a well-maintained used car, its weathered paint and slightly dented fender a testament to its journey. In the foreground, a contract being signed, the price tags of the two vehicles displayed prominently. The scene captures the contrast between the allure of a brand-new car and the pragmatic appeal of a pre-owned option, illustrating the depreciation timeline that shapes the automotive market.

When looking at what to look for in used car deals, it’s important to understand the car market overview. Data from Consumer Reports shows that SUVs and electric cars tend to keep their value longer. To avoid buying a lemon, use NADA guides and a detailed vehicle inspection checklist.

  • Depreciation Patterns: New cars lose 15-30% in year one
  • Used Cars: Depreciation slows after five years
  • Market Signals: High demand boosts certain models’ resale
Year New Car Depreciation Used Car Depreciation
1 18% 8%
3 35% 15%
5 50% 25%

Cost-effective buying means knowing when to buy. Keep an eye on car market overview reports to find when prices drop. Also, use a detailed vehicle inspection checklist to avoid unexpected costs.

For a used car lemon check, use tools like Carfax. Compare new vs old model comparison to find the best deal. Choose models with stable resale value to avoid losing money in the long run.

Navigating the Certified Pre-Owned (CPO) Middle Ground

When looking to buy a car in 2025, CPO vehicles are a smart choice. They offer a mix of affordability and quality. This makes them a great option for those on a budget.

CPO programs have strict standards for vehicles before they are sold. This ensures they meet high quality levels. It’s a key piece of advice for many car buyers.

A bright and spacious dealership lot, where a gleaming, well-maintained Certified Pre-Owned (CPO) vehicle stands in the foreground. The car's metallic finish glistens under the warm, natural lighting, conveying a sense of quality and care. In the background, a brand-new car occupies the middle ground, highlighting the "middle ground" between new and used vehicles. The scene is complemented by a customer inspecting the CPO car, examining its features with a discerning eye, as they consider the benefits of this CPO option. The overall atmosphere exudes a sense of trust, professionalism, and a balanced choice between new and used.

“CPO vehicles undergo rigorous inspections and extended warranties, reducing risks compared to standard used cars,” says the National Automobile Dealers Association.

Benefits of Certified Programs

  • Rigorous inspections: Each CPO vehicle passes multi-point checks to ensure mechanical and cosmetic condition.
  • Extended warranties: Most CPO programs add coverage beyond the original warranty, reducing repair costs.
  • Financing tips 2025: Many CPO loans offer lower interest rates than used-car financing, simplifying leasing vs buying choices.

How CPO Vehicles Compare

CPO models are 10-30% cheaper than new cars but keep more value. For example, a 3-year-old SUV might cost half the price of new but have 70% of its original warranty. This makes CPO a strong option for those weighing buying cpo vs used vehicles.

When deciding, look for CPO programs from trusted brands like Toyota Certified or CarMax. They offer clear history reports. This approach helps you save money while avoiding high new-car prices.

Comparing Insurance Costs and Interest Rates

Choosing between a new or used car is more than just looking at prices. Insurance costs and loan rates are key to your new car long-term cost or savings. Understanding these factors can help you make a practical car decision that saves money.

A modern, polished car dealership lot, with a split-screen view showcasing a shiny new sedan on the left and a well-maintained used model on the right. In the foreground, a customer examines the price tags, considering the monthly costs and interest rates for each vehicle. Warm, natural lighting illuminates the scene, creating a sense of deliberation and thoughtfulness. The background features a neatly organized display of various makes and models, hinting at the wide selection available. The overall atmosphere conveys the careful decision-making process involved in choosing the right car, balancing both financial factors and personal preferences.

Insurance Factors for New Cars

New cars usually have higher insurance costs because they are more expensive to replace. Liability coverage stays the same, but collision and comprehsensive premiums go up with the car’s value. For example, a luxury sedan might cost 20% more to insure than a similar used model.

To cut costs, think about raising deductibles or combining policies.

How Used Cars May Affect Interest

Used cars might have higher loan interest rates because they lose value quickly. But, using your trade-in value car as a down payment can lower loan amounts. Look into used car warranty plans to lower lender risk, which could get you better rates.

  • Best CPO cars 2025 often have lower interest rates due to certified warranty backing.
  • Used car value growth trends can improve loan terms if the vehicle holds strong equity.

When comparing, track auto value retention for both types. Newer models with advanced safety tech might get discounts. Certified pre-owned (CPO) deals balance new car long-term cost with used car value growth chances. Always compare lenders and insurers to find the best deal for your budget.

Practical Car Buying Tips for Every Budget

Learning how to buy a car is key. Start by doing auto buying research to compare prices and features. Online tools can help you check used car service history and used vs new reliability ratings. These steps can save you time and money.

Negotiation Strategies

  1. Shop around: Visit multiple dealers to compare new car purchase process quotes.
  2. Know your limit: Set a max price based on your budget and stick to it.
  3. Use data: Bring printouts of competitor prices to strengthen offers.

Essential Inspection Checklists

Before finalizing a deal, inspect:

  • Body condition: Look for rust, mismatched paint, or dents.
  • Mileage vs age: High mileage on older models may signal wear and tear.
  • Fluid levels and leaks under the hood.
  • Test drive performance: Listen for odd noises during acceleration/braking.

A split-screen image showcasing a sleek, metallic-blue new car on the left and a well-maintained, silver used car on the right. In the foreground, a customer in a suit reviews a contract while a salesperson in a crisp collared shirt gestures emphatically. In the mid-ground, a gleaming dealership lot filled with rows of vehicles under a bright, sun-dappled sky. In the background, price tags hover above the cars, inviting comparison. Warm, cinematic lighting and a sense of decisive yet thoughtful deliberation permeate the scene.

“Always request a vehicle history report. It reveals accidents or title issues that affect risk vs reward used cars decisions.” – Consumer Reports Guide

Use these tips to balance car ownership savings with confidence. Always ask for a vehicle history report. Never skip test drives. A well-researched choice today avoids costly surprises tomorrow.

Conclusion

Choosing between a new or used car depends on your budget and what you need. The first car financial guide highlights how used cars in 2025 can save money without sacrificing quality. New cars come with the latest tech but lose value quickly.

Certified pre-owned cars offer a mix of new features at lower prices. Dealers use tricks, so knowing how to negotiate can help you save. It’s important to weigh the costs of maintenance, tech, and long-term savings.

Whether you choose new tech or a certified used model, do your research. Consider both the upfront costs and future expenses. Use reports and inspections to avoid surprises. Your choice should match your lifestyle and budget, ensuring a wise investment.

FAQ

Should I buy a new or used car?

Choosing between a new or used car depends on your budget and what you want. New cars have the latest tech and warranty. Used cars are cheaper and might keep their value better.

What are the pros and cons of buying a new versus used car?

New cars have warranties and the latest features. But, they lose value fast and cost more to insure. Used cars are cheaper and keep their value longer. They might need more repairs and lack new tech.

How does car depreciation affect my buying decision?

New cars lose a lot of value right away. But, well-kept used cars depreciate slower. Knowing this helps you choose wisely for resale value and costs over time.

What are the insurance cost differences between new and used cars?

New cars have higher insurance because they’re more expensive to replace. Used cars have lower insurance costs. This makes them cheaper to own overall.

How can I finance a used car effectively?

Look for low APR deals and compare lenders. Understand your credit score for the best financing. Balance loan costs with your budget for the best deal.

What should I check when buying a used car?

Check the vehicle history report and look for damage signs. Test drive it. Also, get a mechanic’s inspection for hidden issues.

What advantages do certified pre-owned (CPO) vehicles offer?

CPO vehicles are checked thoroughly and often have warranties. They’re a safer choice than standard used cars, with more value.

How do monthly payments compare between new and used cars?

New cars have higher monthly payments due to their cost. Used cars have lower prices and financing, making them more affordable for budgets.

What are some hidden costs of buying a used car?

Hidden costs include immediate repairs and higher maintenance. Also, upgrades for safety standards might be needed. Always consider the total cost of ownership.

What technology features should I expect in new versus used cars?

New cars have advanced tech like driver-assistance systems. Used cars might lack these. Think about what features you need before deciding.

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