Should You Buy a New Car or a Used Car?
If you’re looking to buy a car, you need to make the decision as to whether you want to buy a used car or a new car. While there are benefits to both, everyone has different needs and sometimes buying a used car makes more sense than buying a new car and vice versa. In this article, we’re going to break down the pros and cons of both to try and make your car-buying decision easier.
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The first point that needs to be made is that due to different car financing options such as zero percent financing and zero down, it may be possible for you to get behind the wheel of a new car. Car dealers have come up with a variety of ways of helping costumers afford new vehicles. Zero percent financing and zero money down options are two of the most popular options that customers use. While no money down sounds like a good option, it ultimately leaves you paying higher monthly payments and borrowing more, likely increasing the interest rate.
When you buy a new car you know that the odds of anything major going wrong with the car for at least a few years is quite small. Plus if you opt for a great car dealer, you know that if there are any problems that they will be addressed quickly. The problem with buying a new vehicle is you don't know the long term performance of the vehicle. If you're looking at buying a particular used vehicle, it's easy to research that vehicle's long term performance. Also, while dealers may have many incentives in place to encourage you to buy new over used, they don't mention how quickly a new car depreciates in comparison to a used vehicle.
There are also many many benefits of buying a used car. Buying a used car does stand as a way to save considerably. Even buying a used car that is only a few months old is an easy way to save a great deal of cash, while at the same time seeing much of the benefits of a new car. Below we're going to break down the pros and cons of both buying a new car and buying a used car.
Pros of Buying Used
- Used cars allow you to save a lot of money.
- The warranty may transfer to the second owner
- More options for your budget
- You may be able to drive the car model that you want even if you couldn't afford a new version
- It's already been through its most significant period of depreciation
Cons of Buying Used
- A used car may need more repairs
- Depending on various factors, a used car may be out of warranty
- You may be unaware of the car's history and whether or not it is reliable.
- Often the same financing terms aren't available on used cars
Pros of Buying New
- No maintenance worries with a new car warranty
- The car will be in great mechanical shape
- Major problems will be addressed by the dealer and manufacturer
- The selection at a dealership may be limited.
Cons of Buying New
- New cars are more expensive
- Your car will decrease in value when you drive it off the lot
- New cars depreciate much faster
If you’re considering buying a used car, be sure to check out our rates page to see what our lenders are offering. Once you have an idea of your interest rates, check out our car loan calculator and estimate what your monthly payments will be! Get pre-approved for a vehicle today by completing our application!