How to Choose Between Purchasing a New or Used Car

How to Choose Between Purchasing a New or Used Car

About 17.5 million light vehicles are sold in a year. Are you looking to join the ranks of people wanting to buy a new or used car?

When it comes right down to it, what kind of car should you buy? Should you buy new or used? It's not a simple question. All car buyers have to face it at the beginning of the car buying process.

And the truth is, both a new or used car has its pros and cons. It all comes down to your budget, desires, and relationship with risk.

Let's take a look at the pros and cons of buying new or used. This guide can help you make a more informed decision.

New or Used Car

Here is a quick guide to buying a used or new car and the benefits of both. That way you know which choice is the best one for your lifestyle.

The Benefits of A New Car

Lots of new products have a new product smell that some people find wonderful. Obviously, if you buy a used car then you won't have the pleasure of inhaling that new car smell.

But there are other perks as well. You have access to the latest tech, such as Android Auto and Apple Carplay. Many new cars also have connectivity for Bluetooth phones, allowing you to drive and talk without having to buy an entire Bluetooth interface.

Other perks are driver assistance technology, advanced safety features. Both are a lot better than they used to be. Other new safety tech includes adaptive cruise control, autonomous emergency braking, blind spot monitoring, and lane departure warning. These are all included in even the cheaper models such as the 2017 Toyota Corolla and 2017 Kia Forte.

Fuel efficiency is another part of cars that has gotten better over the years. So there is a high chance that a new SUV today would outperform an older model's efficiency.

There will be no dings or dents on your car either, as it'll never have been in an accident and there is a lesser chance of your car being recalled. Also, there won't be mistakes from the previous owners such as parking by braille or neglecting the oil change.

The warranty of a new car coming straight from the factory covers at least 3-5 years or 36,000 miles. That gives you a solid cost of ownership over the starting years of owning the car, without risking a large repair bill.

More Choices

Buying a new car is easier as well. There so many choices at a car dealership, odds are strong you'll find your ideal car in the lot. If you don't find the car you're looking for, a dealer can probably track down the color, model, and trim you're looking for.

Manufacturers offer lease deals and special financing incentives on new cars that used cars don't usually have. Zero percent financing could bring the total amount of money you'll pay for the new car down to the price tag of a used car. And if you're looking for a loan from a bank or credit union, you'll usually be offered the lower interest rate when buying a new car.

Negatives Of A New Car

If you decide to buy a new car, you're going to pay a lot more than you would if it were used. And the price of the car is just the tip of the iceberg. Because its value is greater, the sales tax will be higher and so will the check you'll need for your insurance company.

It's not uncommon for 20% of the value of the new car to go bye-bye after you drive the car off the lot. So make sure you put 20% down or you'll probably owe more to your lender than the car is worth.

Benefits Of A Used Car

If you decide to buy a used car, the original buyer will eat the value loss that happens in the beginning years of owning a car. This will allow you to save upwards of thousands of dollars.

For example, you could use your Nissan-sized budget and buy a used Infiniti instead. You also could use your Ford Focus budget and buy a used Ford Fusion for the exact same cost and durable options and discounts would be included as well. Leather seats and navigation won't increase the price in the same way it would a new car.

And since the car value will be lower, you'll save on insurance premiums and sales tax. You'll also save on the total interest payments if you're refinancing because the loan amount will be lower even if you have a higher interest rate.

When checking out the rank and researching the car you're looking to buy, you'll know about the possible issues and avoid them. After a model has been on the market for a couple years, they'll be good information to compare and contrast different models.

Negatives of A Used Car

Oftentimes when you buy used you're getting another owner's problems. This depends on how the car was taken care of, but there could be significant concerns. A couple extra steps are necessary when buying a used car, such as checking the history.

You can get an accurate history online, which will point out any title issues or big accidents. Then you should invest in a repurpose inspection from a mechanic to see if there are any operating issues and any fire, flood or crash damage. This will cost money but could save you more money in the long run from a big repair payment down the road.

If the car is 3-5 years old, an active warranty is probably out of the question. Though you could purchase an extended warranty yourself and prepare yourself if major repairs are required.

Also when you buy a used car, there won't be as many features or colors to choose from and you will have to make do with whatever the dealership has available.

Buying used doesn't guarantee a lower price either. Some car owners don't get the benefits of the previous owner's depreciation as certain car models hold on to their value more than others.

Now You're Ready

Whether you decide to buy a new or used car, more information is better than less. And with the right information, you can get a car that's perfect for your budget and lifestyle.

If you're ready to get started, check our Carfinder search bar to find out exactly what your dream car looks like. It might not be as difficult as you think to find the new or used car of your dreams!

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