New Car or Used Car?

When shopping for a car or truck, there are two big decisions to make: new car or used car and buy or lease. Let’s review the pros and cons of purchasing a new car vs. a used car, and we have written about buying vs. leasing in prior articles.

New Vehicle

Pros: The best thing about a new vehicle is that it is new! Less worries, no dings, a warranty, and more options to choose from. It is also easier to comparison shop between dealers because you are able to compare prices for the exact same vehicle. Lastly, interest rates are usually lower for a new vehicle.

Cons: The biggest drawback to purchasing a new car is the price and depreciation. A new vehicle is much more expensive, plus it quickly loses its value. You would be surprised to learn how much or little a dealer is willing to pay for your once new car after a few years. Remember, the dealer has to make a profit too.

Used Vehicle

Pros: The greatest benefit of purchasing a used car is the price. Prices vary dramatically and each model holds its value differently, which is why you can purchase a lot of car for your money. This can be especially true with some full size luxury cars. It’s also possible that there may have been several recalls that were already taken care, which could save you time. Also, more cars are being offered as certified pre-owned, which means that you will take on less risk with a used car.

Cons: It can be scary purchasing a used car because you can never be certain how the car was taken care of by the previous owner or if there are mechanical issues. The way to minimize the risk of  buying a used car are several: purchase from a reputable dealer, do not purchase a car that has high mileage or is too old, purchase a certified pre-owned car, and have your mechanic inspect the car before buying.  Another downside to an older car is that it also has higher maintenance and repair costs.

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