One of the most common questions we see car buyers grapple with; is whether to buy a new car or a used car. Like anything, there are advantages and disadvantages to both options. Check out our comparisons below to help you determine which is best for you:
- Choice: When you buy new, you get to customize exactly the way you want, and often have more options than a used car. Color, interior, entertainment, and navigation systems are all customizable. If you don’t see what you want on the showroom floor, there’s a good chance that the dealership can special order a car to your qualifications.
- Better Finance Rates: A used car may cost less initially, but the interest rate will most likely be higher. Low-interest financing and cash rebates are often used to entice buyers into new cars, and are generally not offered for pre-owned vehicles.
- Better Warranty: While you can always buy warranties for a pre-owned vehicle, the best warranty you can get, for the best price, will be the one that comes from a manufacturer with a new vehicle.
- Safety: Vehicle safety laws are constantly changing, and auto makers are always producing new vehicles to meet that change. Newer vehicles will meet those more stringent safety standards, simply because they were made more recently.
- Higher Fuel Efficiency: Much like safety standards, car manufacturers are constantly adapting their product to be more fuel efficient with lower emissions. Additionally, new cars tend to have more hybrid options.
- Price: Look, the bottom line? A used car is always going to be cheaper than a new one. The money that you save might make it possible to spend money on some customizations like sound or navigation systems.
- Insurance Rates: Generally, it will cost less to insure a used car. Keep in mind that this will be a monthly expense, so this may a significant factor in making your decision.
- Depreciation: Depending on the make and the model of the car, it can loose up to 45% of it’s value within the first three years. So, while you may be getting the latest of everything with a new car, you will loose a greater amount of money as it depreciates.
- Environmental: It’s not a guarantee that a pre-owned vehicle will be less environmentally friendly, and if you’re into recycling, buying a used car ensures that no resources will be used to produce a new car.
- Variety: If you’re open to buying used, you have a pretty much endless inventory to choose from. You are not limited to vehicles that have been released in the past year, and if you are willing to spend some time looking, the sky is the limit as to what you can get!
So what’s the final say? Well, ultimately it all comes down to what you want. There are plenty of reasons to go with new, and plenty of reasons to go with used. The bottom line is that you should go with what fits your situation best. Do your research, go for test drives, and have a clear idea of what you want. Whether buying new or used, the end goal is that you’re happy with your car!