Buying a New vs. Used Vehicle

Is buying a new or used car more your speed?  While you know a new car is in mint condition, a used car is easier on your bank account. Jumpstart your “new vs. used” decision - and get behind the wheel quicker - by weighing the pros and cons of both options.

Buying a New Vehicle

Pros:
  • You shouldn’t need to take it in for repairs anytime soon (fingers crossed), and if you do, it’s probably got a warranty.
  • You can get the exact make, model, safety features, and technologies you want. Hello, automatic emergency braking!
  • A price that’s pretty much established, even if you still decide to haggle for a better deal.
  • That new car smell!

Cons:
  • A higher price tag. Often, by A LOT.
  • Your new wheels lose value the minute you drive off the lot. (The biggest depreciation occurs in the first two or three years, according to Nerd Wallet.)
  • Your insurance may cost more since the replacement value of a new car is higher.

Buying a Used Vehicle

Pros:
  • A lower price tag. Sometimes, MUCH lower.
  • You can afford a nicer car for the money than if you were buying it new.
  • Used cars lose less value the first few years you own them, so you might be able to sell the car for almost the same amount you paid.
  • Used-car loans are usually shorter than those for new cars, which means you’ll probably pay off your vehicle sooner.

Cons:
  • It can be time-consuming to locate the car you want, figure out how much it’s worth, and settle on a price with the seller.
  • You’ll probably have to compromise on some aspect of the car, whether it be its color, features or mileage.
  • You may not know much about the vehicle’s history, maintenance, and reliability. A “certified” used car or extended warranty is something to consider. Have a trusted mechanic check the vehicle before you buy it!
Whether you buy a new or used car, you want to drive away with a good deal. Let us steer you in the right direction with our Keys to Buying a New Vehicle.