Is It Better to Buy a New or Used Car?
In 2018, there were over 5 million cars sold in the U.S. And that number could get even higher this year.
If you're one of those people who need a new car, you might be asking yourself this question: "Is it better to buy a new or used car?"
Unfortunately, there's no "one size fits all" answer to that question. That's why we've put together this guide to help you figure out what type of car is best for you.
So let's get started!
What to Know When Buying a New Car
There are pros and cons to buying both a brand new car and a used car. Here's what you need to know about buying new cars before you head to the dealership.
Buying a new car comes with a lot of benefits, one of which is the peace of mind that your new car will run how it should. Some of the other benefits include the following:
- It's Easy
It doesn't take a lot of work to buy a new car. You can walk into a dealership and find any type of car you want in almost any color.
There's no need to worry about whether it's in good condition or not, and you don't have to take it to a mechanic to get it checked out.
- You'll Get a Better Car
New cars have the latest safety features and technology upgrades. So when you buy a new car, there's no doubt that what you're getting is better than a used one.
- You'll Have Better Financing Options
Dealers want you to buy new cars, so they incentivize you by setting up some great financing options. When you buy a new car, you can get loans with lower interest rates, meaning you'll save thousands of dollars.
- Warranties Are Available
New cars have both manufacturer and dealer warranties attached to them. That means your car is protected against certain damages, should something go wrong.
As great as an easy shopping experience and updated safety features are, new cars come with their own set of disadvantages, too. Here are some of the most important you need to keep in mind.
- New Cars Lose Value... Fast
A new car costs a lot more than a used car, and it depreciates right away. In fact, your car will lose about 25% of its value after the first year. In fact, the moment you drive your new car off the lot, its value will plummet by 11%.
This might not seem like a big deal if you plan to keep the car for a long time, but it can make a big impact if you plan to trade in the car for a new one in a few years.
- It's More Expensive
Obviously, buying a new car is much more expensive than buying a used car. Although you'll have better financing options, you also have to be willing to spend a lot more money on a new car.
- You'll Have Higher Insurance Rates
Since a new car is worth more than a used car, you'll have to pay more to insure it. This is something that's easy to overlook when buying a new car, so it's important to think about your insurance before you buy a new car.
What to Know When Buying a Used Car
If you can't afford to buy a new car, there are still a lot of benefits to buying a used car. Depending on your circumstances, it might even be the better option.
Used cars take a little more effort to buy, but that effort can be worth it. Here are a few of the advantages of buying a used car.
- It'll Cost Less Money
Any used car has already been driven a few thousand miles, been worn down with use, and maybe even a little banged up. Because of this, you can by a used car for a much cheaper price than a new car. If you don't have a big budget, shopping for used cars is a good way to save some cash.
- Used Cars Loes Value Less Quickly
Instead of losing value right away like a new car, a used car loses value much slower. So you can buy a used car and trade it in a few years later at close to the same value you bought it at.
- You'll Have Lower Car Insurance Rates
Used cars aren't worth as much as new cars, so because of that, you will have lower insurance rates. This means you can save a bit of extra money if you choose to buy a used car.
Since another person has owned and driven any used car, there are a few downsides to buying a used car as well. If you're thinking about shopping for a new car, here's what you need to keep in mind.
- You Won't Get a Warranty
In most cases, you won't have the option to get any type of warranty when you buy a used car. That means if anything happens to the car, you have to cover the expenses out of your own pocket.
- You'll Have a Limited Selection
When you buy a used car, you won't have as much of a selection to choose from. You might have to settle for a model or color you don't love.
- You Have to Know What to Look For
You have to be careful when you buy a used car, especially if you buy it from a private seller. You have to know what to look for to ensure you drive away with a car that's in good condition.
And if you don't know what to look for, you might end up with a car that doesn't run as promised.
Is It Better to Buy a New or Used Car?
If you have a tight budget, it might be a good idea to buy a used car. But if you want a car with the most advanced safety features and technologies, you should buy a new car.
You also have to consider your preference. Do you want a new car? If you want a new car and you can afford it, you should buy a new car instead of a used one.
Getting Ready to Buy a New-to-You Car
So is it better to buy a new or used car?
It all comes down to your preference and your budget. Buying a used car is better for some people, but buying a new car is the right choice for others.
Are you ready to buy your new car?
Contact us today to explore our inventory and financing options!