If you’re in the market for buying a vehicle, you’re likely wrestling with many options.
Should you buy new or used?
It’s not a decision to be taken lightly. There are definitely benefits to both.
Much of your decision will depend on how much money you have to spend as well as your level of automotive savvy.
Let’s take a look at the benefits of buying a used car versus buying a new one so you can make an informed decision.
Why Purchase a New Car?
It’s important to state right at the onset that buying a new car will usually cost you quite a bit more than buying a used one.
There are benefits to spending that extra money, though.
It Is Easier and Takes Less Time
Every component of a new car will be factory-fresh. You won’t have to take the time to research its history or get a pre-purchase inspection.
You also won’t have to wait for a title to come from a used car owner’s lender. Most dealerships will complete the necessary paperwork for you.
In addition, if you’re looking for a specific make and model in the color you want, it will be much easier to attain this by buying a new car. Even if your specific choice isn’t on the lot, the dealer can either swap with another dealer or can order it from the factory.
You Get Full Warranty Coverage
Most new cars come with bumper-to-bumper coverage for the first three years or 36,000 miles.
This warranty covers everything but the powertrain. A powertrain warranty has coverage that can extend as long as 10 years or 100,000 miles.
You don’t have to pay extra for a new car warranty, as it’s included in the car’s price.
Interest Rates for Financing Are Lower
When lenders decide whether to loan money and how much interest to charge, they look closely at risk. With a new car, the value of the collateral (in this case, the car) is known. And based on history, new car buyers are more likely to pay off their loans.
All of that equals lower risk for lenders. That’s why they usually charge new car buyers lower interest rates on their loans.
New Cars Have the Latest Features
Every year, the technology available on cars increases by a huge measure.
Safety features such as automatic emergency braking, adaptive cruise control, and lane-keeping assist are now standard on many new vehicles. And since safety testing has also evolved, automakers are forced to keep improving safety features.
Meanwhile, new car buyers also expect their vehicles keep pace with their ever-growing needs for infotainment and connectivity. For example, a built-in navigation system was once good enough. But now it needs to be connected to outside services that give real-time traffic and road conditions.
Finally, automakers continue to manufacture vehicles with increased fuel-efficiency. Advanced automatic transmissions allow cars to burn less fuel without compromising safety.
The Advantages of Buying a Used Car
If sticker shock is deterring you from buying a new car, you’re not alone. You may want to explore the option of purchasing a used vehicle.
Fortunately, there are many benefits to buying a used car that go beyond the lower price.
Exploring a Car’s History Is Easier Than Ever
In the past, buying a used car was a much riskier affair.
There was little way of knowing the car’s title history, its record of maintenance, the number of owners it had, or any other information about collision and repairs. You simply had to hope the seller was being truthful.
Today, you can easily get a vehicle’s history through services such as Carfax or Autocheck.
While a pre-purchase inspection from an independent mechanic is still your absolute best line of defense, getting a car’s history report could be enough to take it out of the running before you waste time and money.
They Are Typically More Affordable
Not only do you save money when you buy the vehicle, but you’ll also save money on auto insurance. The premium for a new car is considerably higher and can be out of reach for many people.
Then there’s the financing aspect.
While the interest rate for financing a used car may be higher, the total amount of interest paid over the course of the loan will be less. Rather than having to take six years to pay off a loan, you may have your vehicle paid off in as little as two years.
The Value Will Not Take a Nose Dive
It’s common knowledge that the moment you drive a new car off the lot, its value drops. Most of the depreciation of its value happens in the first few years of ownership.
Later in the car’s life, it depreciates much less. So by purchasing a used car, the original owner absorbs the depreciation hit while you get a lower-priced car that will depreciate far less.
You Can Choose a Nicer Car
If you’ve always pictured yourself driving a Volvo versus a Volkswagen, or a Benz rather than a Buick, you may be able to do so by purchasing a used vehicle.
Since a luxury vehicle’s value depreciates in the same way as an economy vehicle’s, the price tag is much more manageable for those on a budget.
Of course, the mileage and condition of a vehicle will determine its price. But if you’re willing to drive a luxury vehicle that isn’t in pristine condition or has higher mileage, you could drive the used car of your dreams.
Awareness of Potential Problems
The weird kinks and issues a specific make and model has won’t show up until the car has been on the road a few years.
When buying a used car, you’re able to explore car rankings and reviews as well as owners’ forums to determine what sort of issues you may encounter.
Of course, there will always be those prone to complaining on owners’ forums. But if you notice a trend in your chosen vehicle – such as difficulty using certain features or early electrical failures – then you know what you’re in for and can decide whether it’s a smart purchase.
Weigh Your Options
You’re certain to land on the right decision when it comes to buying a used car versus a new one.
And if you decide to buy used and have some automotive know-how, be sure to check out our full line of automotive supplies and accessories. We can help you make that used car as good as new.
